At issue: Should drilling be allowed in local parks? /23 FEBRUARY / MARCH 2016
PIPELINENEWSNORTH.CA
PIPELINE NEWS NORTH VOL. 8 ISSUE 2 DIST: 16,000
SERVING THE OIL & GAS INDUSTRY IN NORTHERN B.C. AND ALBERTA
FREE!
British Columbia was the busiest oil and gas jurisdiction in Canada in January despite seeing a two-year low in land sales for the month. And while the province awaits final investment decisions from LNG frontrunners Shell and Petronas, a local chamber of commerce says opening market access to the east is key in the meantime. Looking forward, columnist Tim Maryon says demand for oil and gas isn’t going away anytime soon.
R001697746
2
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
PETROLEUM ASSOCIATION COME OUT AND SUPPORT THE 13 Annual FSJ Oilmens 4-on-4 Hockey Tournament
April 6th - 9th
SAVE THE DATES: FORT ST JOHN:
54th Annual Fort St. John Petroleum Association Oilmens Golf Tournament June 2016 The next Fort St. John petroleum Association meeting is on March 3, 2016 @ the FSJ Curling CLub. See you there! Check out our website for upcoming events
www.fsjpetroleumassociation.com
FEBRUARY 12, 2016
Your Peace Region
PIPELINE NEWS NORTH •
3
Dealer
HARD WORKING | COST EFFECTIVE | RELIABLE
We offer a wide selection of NEW AND USED Gensets NEW Perkins GPR-60KW
LAND ENVIRONMENTAL ARCHAEOLOGY UAV/REMOTE SENSING GIS SINCE 1980 www.roynorthern.com
USED Perkins GPR-60KW
WE KEEP INDUSTRY RUNNING!! 11115 - 100 Avenue Grande Prairie, AB T8V 3J9 Phone: 780-532-5900 Fax: 780-532-5904
Terrace Fairview Fort St John Calgary Phone: 1.888.835.6682
1.888.532.5900 | WWW.GPRINDUSTRIES.COM
r0011168377
PNN
NUMBERS
The following figures were taken from the stories in this issue of Pipeline News North.
28: Total number of rigs drilling in B.C. in January. Story on Page 6. $212,000: Drilling rights brought in at the January land sale. Story on Page 8. $12.5 billion: Total reduction of operating costs and capital investment across Shell. Story on Page 11.
34,000: Square feet of office space Petronas now occupies after increasing its footprint in downtown Vancouver. Story on Page 12. $296.4 million: Estimated total cost of the Dawson Creek and Chetwynd Transmission Line, now complete and energized for area drillers. Story on Page 14. 450: Number of workers the Towerbirch project would bring to Dawson Creek. Story on Page 15.
$109,000: Estimated cost of a facility the FSJ Petroleum Association is looking to build in Peace Island Park. Story on Page 22. 2,500: Acres of a parcel that overlaps Blackfoot Park and could be included in a land sale for drilling. Story on Page 23. 29: Number of wells Painted Pony plans to drill in 2016. Story on Page 30.
4
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
Drilling down, but B.C. 6 busiest in Canada
January land sale sees 8 a two-year low
pnn 11
Market access key to 2016, 10 Chamber says
22 Oilmen plan multi-purpose facility at Peace Island Park
New office could hint 12 at Petronas FID
18
Kitsault LNG receives 13 export approval Oil and gas operators 13 pass fall fire audit
DCAT line for drillers 14 energized
NEB hearing on North 17 Montney withdrawn
Look for PNN on FB: pipelinenewsnorth
23 PRRD says no to drilling in Blackfoot Park 25 West Moberly reaches agreement on Coastal GasLink 26 Prince Rupert Port strengthens ties with Northeast B.C. 27 Enbridge buys Murphy plants
Pipelines would brings 15 hundreds of workers to DC Spectra eyes pipeline 16 expansion near Chetwynd
18 Alberta’s royalty review could be boon for B.C. 20 Estimated cost of Towerbirch expansion drops to $439 million
LNG Canada FID pushed 11 to end of 2016
17 Woodside puts Liard wells into production
26
28 Oilfield using less water, but work camps using more 29 Hearing loss in oil and gas double than other industries 30 Townsend facility to be in commission by September Look for PNN on Twitter @PipelineNN
Published monthly by Glacier Ventures International Corp. Pipeline News North is politically independent and a member of the B.C. Press Council. The Pipeline News North retains sole copyright of advertising, news stories and photography produced by staff. Reproduction is prohibited without written consent of the editor.
FEBRUARY 12, 2016
PIPELINE NEWS NORTH •
opening remarks
#oilsands
5
Economic and population growth will fuel increased energy demands over next 20-plus years
W
orldwide demand for energy will climb by 25 per cent between 2014 and 2040, according to an analysis recently released by Exxon Mobil. Each year, the energy giant publishes an updated Energy Outlook—a broad look at historical and future demand and supply for energy of all types on our planet. This year’s outlook, issued midJanuary, reports that global energy demand rose by about one-third between 2000 and 2014. Demand is driven by population growth and economic growth as billions of people in developing nations pursue improved living standards—which demand more energy. This information is valuable for those of us living and working in western Canada. Here’s why: The increased demand for energy will be supplied by production growth from many sources. The public’s concern that fossil fuels contribute to global warming has meant dramatic growth in alternative forms of renewable energy such as wind and solar. But even with the further massive growth forecasted in alternative sources of energy, they won’t meet the expected—
with natural gas, even greater— and has shown growth in deit can produce mands. Exxon and export it efMobil predicts ficiently. that by 2040 oil Recent crude will remain the oil price declines world’s primary have led many fuel and that tim maryon companies to natural gas will cut back explogrow more than oil matters ration and proany other energy source. Other sources of energy duction investments in western just cannot grow quickly enough Canada for 2016. Though projects to meet forecasted demands. have been deferred, this hasn’t yet Western Canada is well supplied meant production declines.
On the contrary, as prices decline, producers feel pressure to maximize production to preserve cash flows. But short-term actions to maximize production will eventually run their course and supplies will decline. When demand growth along with supply declines result in higher crude and natural gas prices, major companies like Exxon Mobil will restart investment in their best projects to meet growing long-term energy demands. Here in the West, federal and provincial governments must provide a predictable and stable regulatory environment to encourage these investments. The Alberta government has already demonstrated it understands this by announcing only modest change in its recent royalty review. We hope the federal government will adopt the same businessfriendly approach to the approval of new projects. Growth opportunities abound. Let’s get on with pursuing them. Tim Maryon is vice-president of sales and business development at Peace Country Petroleum in Fort St. John.
EXXON MOBIL
Global demand for energy is predicted to rise by 25 percent between 2014 and 2040, according to Exxon Mobil’s 2016 Energy Outlook report. Demand growth will be see in the developing world, with China plateauing around 2030. Meanwhile, energy demand is predicted to fall by five per cent between 2014 and 2040 in developed nations, including Canada, the United States, Australia, Europe, Japan, and South Korea.
6
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
fb.com/pipelinenewsnorth
PNN MISSION STATEMENT Our mission at Pipeline News North is to provide the most current, interesting, and relevant news and information about the oil and gas industry in Northeast B.C. and Northwest Alberta. Have an interesting story to share or a news lead? Email us at editor@ahnfsj.ca.
William Julian Regional Manager 250-785-5631 wjulian@ pipelinenewsnorth.ca
Matt PREPROST Managing Editor 250-785-5631 C: 250-271-0724 editor@ ahnfsj.ca
Drilling down in January, but B.C. still busier than rest of Canada
Jonny Wakefield
Ryan Wallace ADVERTISING MANAGER 250-785-5631 c: 250-261-1143 rwallace@ ahnfsj.ca
ROB MONahan Sales ASSOCIATE 250-785-5631 c: 250-794-2683 rmonahan@ ahnfsj.ca
CONTACT US Phone (250) 785-5631 Fax (250) 785-3522
www.pipelinenewsnorth.ca billing: Lisa Smith - Accounting Manager 250-562-2441 ext 352 Fax:250-960-2762 accounting@ pipelinenewsnorth.ca
Staff Writer
Despite a plunge in the number of active drilling rigs, B.C. was the busiest oil and gas jurisdiction in Canada last month. While more rigs were drilling in Alberta overall (133 the week of Jan. 25, to B.C.'s 28), B.C. had consistently higher utilization rates in January, according to data from the Canadian Association of Oilwell Drilling Contractors (CAODC). In January, between 34 and 42 per cent of rigs in B.C. were active, compared to 16 to 26 per cent of Alberta rigs. Saskatchewan, meanwhile, saw rig utilization rates of between 21 and 35 per cent. The CAODC estimates one active rig translates to 135 jobs, making rig counts an important indicator of economic activity. While the Montney gas play continues to be active relative to other Canadian jurisdictions, drilling has dropped with a fall in oil and gas prices.
In January 2015, 52 rigs were busy in B.C.—a utilization rate of 72 per cent. Last month, roughly 30 rigs were active on any given week, topping out at a 42 per cent utilization rate. Drilling slowed over the rest of 2015 with spring breakup and the oil price decline. The number of wells drilled also fell. According to the B.C. Oil and Gas Commission, 18 wells were drilled last month, down from 71 drilled in January 2015. B.C. drillers poked eighty-two holes in March 2014—a two-year high. In November, the CAODC forecast a 58 per cent decline in the number of wells drilled in 2016, as well as a 57 per cent drop in employment across the oilpatch. According to the latest totals, 40 per cent of B.C. rigs were drilling as Feb. 8, beating out Saskatchewan (30 per cent), Manitoba (29 per cent) and Alberta (26 per cent). The CAODC totals listed above do not include smaller service rigs. reporter@dcdn.ca
FEBRUARY 12, 2016
PIPELINE NEWS NORTH •
r0011183193
7
8
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
Outlook
January oil and gas land sale a two-year low Jonny Wakefield Staff Writer
When it comes to oil and gas land sales, 2016 is off to a bad start. Drilling rights brought in $212,000 at the January land sale, the lowest total of the past two years. Six of eight licences sold at the Jan. 20 sale, totalling 2,614 hectares. The licenses are leased for three to five years, depending on location, and are a major part of the province's oil and gas income. They give the owner exclusive right to drill for oil and natural gas. April 2015 was nearly as low, bringing in $214,373. The totals are an indicator of future activity
in the oilpatch. With any downturn in oil and gas prices, exploration budgets tend to be the first thing to go. 2015 was one of the worst years for oil and gas land sales on record, bringing in just $18 million. The year before, meanwhile, saw $382 million in sales. Analysts say most upstream companies will focus on production at the properties they already have as they try to weather the tough economic times. The province offered over 4,000 hectares in January. Next month, only a quarter of that will be on the auction block. The province hopes to sell four parcels at the Feb. 24 sale, a total of 1,084 hectares. reporter@dcdn.ca
Horizontal Directional Drilling and Punch Boring American Augers DD110
Horizontal Punch Boring
American Augers DD6
Tridem Hydrovacs
- Wire-line & Mud Motor capabilities with 14 000 lbs torque
- A powerful rig with a smaller footprint
- A fluid-less alternative for environmentally sensitive crossings
- Day lighting hotlines & drilling fluid removal
Call or Email today for a free estimate 1-250-329-4324 or bud@fullborehdd.ca
FEBRUARY 12, 2016
0 0 0
PIPELINE NEWS NORTH •
%
*
$
Financing
*
Down
*
Payments until May 2016 Over 100 eligible units
*Select CASE and LBX machines. OAC
EXCAVATORS • FORESTRY
DEMOLITION • MATERIAL HANDLING
FORT ST. JOHN – 250-785-6105
R0011190979
CAMPBELL RIVER 250-287-8878 PENTICTON 250-492-3939
CRANBROOK 250-426-6205
KAMLOOPS 250-374-4406
PRINCE GEORGE 250-562-8171
QUESNEL 250-992-7256
TERRACE 250-635-2292
KELOWNA 250-769-2933
LANGLEY 604-607-0300
NANAIMO 250-758-5288
VERNON 250-545-4424
WILLIAMS LAKE 250-392-7101
WHITEHORSE, YT 867-668-2127
Visit our website for a complete list of used equipment for sale. www.inland-group.com
9
10
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
Outlook
Market access key to 2016: Chamber
Mike Carter Staff Writer
Kathleen Connolly believes Dawson Creek is well-situated to weather the current economic storm, but says the federal government need to do more to open market access to the east for natural gas.
Kathleen Connolly, the executive director of the Dawson Creek & District Chamber of Commerce, doesn't get too excited when pipeline companies such as TransCanada say their projects could bring hundreds of workers to the city. "Until there is a stamp of approval that says 'spend the dough,'" companies should be measured in their response and not "over spend or over plan," she said. Amongst all the bad news with an oil and gas industry that is coming to terms with low prices, Connolly remains positive in her outlook for the year ahead. "The whole oil and gas thing is really scary. There is no doubt," she said. "But we've always been a really diverse economy and that has sort of pulled us through the tough times." Connolly believes Dawson Creek is well-situated to weather the storm. What does get her excited then? For one, the prospect of moving stranded
Northeast B.C. natural gas to the east for quick sale. "Oil and gas companies are looking at pushing out to the east and the United States," she said. "They can ship much faster than we can." Even if a major pipeline and partnering export facility on the coast got a positive investment decision tomorrow, she said, "we're still three to four years out before we're actually shipping our gas." "For us, we need our government to help these guys get access to the east because the west is going to take some time," she said. "We need to be way more aggressive at getting that stuff in a pipe‌ I don't care where it goes." In past years, Canada was considered one of only a few "safe" areas for natural gas. That has changed, Connolly says. "The U.S. has really become a monster (in shale gas production) and Australia has just come online with a whole bunch more natural
R001697743
gas," she said. In the meantime, Dawson Creek and surrounding areas will rely heavily on the forestry and agricultural sectors while times are tough in the oilpatch, Connolly said. "There's been a (downturn) and that will probably continue. But, I think if businesses are wellpositioned and they are smart with their spending then they'll be okay. You just have to diversify and look for different markets." Connolly noted that despite the downturn in oil and gas, membership at the Chamber of Commerce has remained steady. Only two members have not renewed under circumstances she says may or may not be related to the economy. "People understand that it's going to be tough," she said. "You make smart investments. There's stuff you maybe can put off for a year. But I think in general, we're holding our own." dcreporter@dcdn.ca
FEBRUARY 12, 2016
PIPELINE NEWS NORTH •
LNG
11
Decision on LNG Canada pushed to end of the year, but project still on track, CEO says Jonny Wakefield Staff Writer
Shell says it is postponing a final investment decision on LNG Canada, its proposed liquefied natural gas terminal in Kitimat that would process gas from the South Peace. But the head of LNG Canada says the joint venture is "still very much on track." The company announced it would put off its decision after a 44 per cent drop in profit in the last quarter of 2015. Shell, leader of a joint venture that includes Korea Gas Corp., Mitsubishi Corp. and PetroChina, had earlier indicated an investment decision would come in late 2016. In an email, LNG Canada CEO Andy Calitz said "we are still very much on track for our Joint Venture Participants to make a final investment decision late this year." That seems to contradict the company's fourth-quarter 2015 results, released Feb. 4, which stated the company was "postponing final investment decisions on LNG Canada," canceling a sour gas project in Abu Dhabi and delaying a deep water project in Nigeria. The CEO's statement did not indicate when the LNG Canada decision would be made. However, "we have always stated that our Joint Venture Participants plan to make a final investment decision in 2016," Calitz wrote. "We are pleased, given the current oil and LNG prices, and turmoil in global energy markets, that the Joint Venture Participants in LNG Canada are still working towards a final investment decision for the proposed facility later this year." When asked about the postponement, Dawson Creek Mayor Dale Bumstead said the timeline presented by LNG Canada didn’t seem to be different from what he’d heard all along. “That was always my belief, that it was going to be later this year,” he said of the investment decision. “They didn’t say they’re not doing it. They
Coming Soon:
LNG Canada CEO Andy Calitz said they’re delaying it because they’ve got to refocus.” LNG Minister Rich Coleman said the quarterly report didn’t change his understanding of the project’s timeline either. “I talked to the CEO today, we were in a meeting together. Nothing really has changed,” he said. “There was some language in their annual report that some people decided to sort of question, but the fact of the matter is, they’ve told me for two months or more that they were looking towards the end of the year, last quarter, to make their final investment decision in 2016.” Dawson Creek Chamber of Commerce Director Kathleen Connolly, who visited the project last fall, said today’s news adds to the uncertainty around LNG Canada. “I think we’ve seen this coming for awhile,” she said. “If you looked at the combination of factors they’re facing, it would be a reasonable business decision to say we can’t do this right now. It’s been building to this for awhile.” The Shell-led project would process natural gas from Encana’s Cutbank Ridge Partnership for export to Asia. It would employ 7,500 people during peak construction. Shell says it has had to shift resources after heavy fourth-quarter losses. “Operating costs and capital investment (across Shell) have been reduced by a total of $12.5 billion as compared to 2014, and we expect further reductions in 2016,” Shell CEO Ben van Beurden said in a statement. reporter@dcdn.ca
Rotary Online Auction March 12-20, 2016 Bidding Starts March 12 To Donate items or Services: contact info@dcrotary.ca or 250-467-0024
www.dcrotary.ca
r0021172397
12
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
LNG Pacific NorthWest LNG, a consortium led by Petronas, confirmed that it has leased two floors of office space at the 35-storey Park Place tower at 666 Burrard Street. That gives the company a total of 34,000 square feet.
Petronas' new office could hint at investment decision Jonny Wakefield Staff Writer
Dawson Creek Mayor Dale Bumstead says he’s seeing signs that final investment decisions on two major liquefied natural gas projects could come soon. Bumstead said he’s heard positive rumblings about both LNG Canada and Pacific NorthWest LNG while on a trip to Vancouver. Among those: Petronas, the Malaysian oil and gas giant behind a planned multibilliondollar liquefied natural gas plant in Prince Rupert, is increasing its footprint in downtown Vancouver. Pacific NorthWest LNG, a consortium led by Petronas, confirmed that it has leased two floors of office space at the 35-storey Park Place tower at 666 Burrard Street. That gives the company a total of 34,000 square feet. The company’s upstream subsidiary, Progress Energy, is the most active drilling company in the North Peace, as it provides reserves for the project. Bumstead said a decision on the project’s federal environmental assessment certificate is expected soon.
“If that’s completed, then it’s just this whole issue for them on the West Coast, in terms of getting the agreements and support from some of the communities and First Nations,” he said. The two floors of Vancouver office space will accommodate up to 75 staff. About 40 employees currently working out of 1066 West Hastings will move into Park Place when renovations are complete. The company’s expansion in Vancouver may go some way to allaying fears that Petronas and its partners might pull the plug on the PNW LNG project, which has a total estimated capital cost of between $40 billion and $50 billion. The LNG plant in Prince Rupert alone has a capital cost of approximately US$11 billion. Fears were raised recently that Petronas might defer the project, after the Wall Street Journal obtained an internal memo that indicates Petronas is planning to cut capital spending by US$11 billion in response to falling revenue from low oil prices. But Petronas has several multibillion-dollar projects on the drawing board, and some industry insiders speculate the company might simply spread the cuts across a number of projects, rather than shelve an entire project.
As for LNG Canada, a Shell-led project proposed in Kitimat, Bumstead said signs point to a 2016 investment decision. “They got their export licence, their permit from the Oil and Gas Commission,” he said. “The more you see the building of capacity and processing in our region, it just seems to me they’re starting to get more and more profile about what they’re doing.” “Shell have been very quiet about it over the years, they’ve always said 2016 (for a final investment decision),” he added. That project would source gas from the South Peace, meaning it would have a larger direct impact on Dawson Creek compared to the Petronas project. Bumstead was in Vancouver for an event honouring the winners of a “40 under 40” ranking, which included Hawkair CEO Jay Dilley, whose airline took over service to Dawson Creek in 2014. In February, he will travel to Calgary to meet with oil and gas companies about municipal issues. —with files from Business in Vancouver reporter@dcdn.ca
FEBRUARY 12, 2016
PIPELINE NEWS NORTH •
13
Kitsault LNG the latest to receive export approval from NEB The National Energy Board has approved an LNG export licence for Kitsault Energy Ltd. The point of export will be at the outlet of the loading arm of the natural gas liquefaction terminal to be located near Kitsault, British Columbia. The company first applied in late 2013. "We have determined that the quantity of natural gas proposed to be exported by Kitsault Energy is surplus to Canadian needs," the board wrote in its Jan. 21 decision. "The Board is satisfied that the gas resource base in Canada, and the overall North American
gas resource base, is large and can accommodate reasonably foreseeable Canadian demand, including the LNG exports proposed by the applicant, and a plausible potential increase in demand." Proponent Krish Suthanthiran bought the empty town of Kitsault in 2005. At the time, he didn’t think of it as an LNG export facility. It has been abandoned since 1983, but Suthanthiran said in an earlier interview that the existing infrastructure and location of the site gives it an edge over the others. The project would feed off gas from the South
Peace. Suthanthiran was looking to bring Spectra or TransCanada on board to build a pipeline to his terminal. “Our goal is to bring a pipeline from Fort Nelson or Dawson Creek or Chetwynd so we can pick up the gas from Alberta . . . and B.C. to the coast,” he said in January 2015. —AHN, with files from Daily Oil Bulletin
Oil and gas operators pass fire audit Jonny Wakefield
Staff Writer
Oil and gas operators aren't likely to spark a wildfire, if a random audit carried out near Fort St. John is any indication. Venturion Oil Limited, ARC Resources and Tervita operations in the Lower Beatton passed the audit, which was done by the provincial Forest Practices Board last fall. The three were the only oil and gas companies active in the area at the time. The audit looked at land clearing operations, portable wood chipping practices and right-ofway maintenance. The audit covered 500,000 hectares bounded by the Blueberry, Halfway and Peace Rivers. "We were pleased to find these operators met most legal requirements related to preventing wildfires," board chair Tim Ryan said in a news release. "We did note some improvement is required in assessing fire hazards, but since the hazards were all addressed on the ground, it was not considered significant. "Following our audit, all three companies committed to document hazard assessments in the future." The Forest Practices Board is an independent body that monitors forest and range practices on public lands. reporter@dcdn.ca
The audit looked at land clearing operations, portable wood chipping practices and right-of-way maintenance.
14
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
OPERATIONS
DCAT line for drillers energized Jonny Wakefield
Staff Writer
Crews string a line on BC Hydro’s DCAT project. The line was energized in December.
mike carter Photo
Electricity is now flowing through the Dawson Creek and Chetwynd Area Transmission line (DCAT), marking the official end of the project. Lesley Wood, BC Hydro’s stakeholder engagement lead on the project, informed the Peace River Regional District the project had been energized in a letter. “It’s been two years in construction, and we’ve appreciated the support of the regional district during this project,” Wood wrote. “We have now notified property owners that the line is energized and given them a heads up that there is some additional work that needs to be done in some locations around the foundations (of the power poles).” The line, estimated at $296.4 million, was built to plug gas drillers in the South Peace into the BC Hydro grid, with an eye to reducing emissions. In 2014, Wood said the area was “experiencing some of the most dramatic single-industry load growth we’ve seen in the last 50 years,” largely driven by natural gas development. The line plugs into the GM Shrum generating station, and includes more than 200 poles, averaging 41 metres in height. The line is the subject of a lawsuit brought by a rancher who claims he was not adequately compensated for a loss in property values. reporter@dcdn.ca
FEBRUARY 12, 2016
PIPELINE NEWS NORTH •
15
Pipeline projects would bring hundreds of workers to Dawson Creek Jonny Wakefield Staff Writer
A pair of pipelines would bring hundreds of workers to Dawson Creek in 2016 and 2017 if approved, TransCanada Corp. representatives told city council Jan.18. The Towerbirch Expansion and Bear Canyon pipelines would transport B.C. gas to transmission networks in Alberta, with an eye to U.S., Eastern Canadian and oilsands customers. TransCanada is seeking National Energy Board approval for both pipelines. Despite the downturn in oil and gas prices, there's a need to move gas that has already been drilled, TransCanada’s Cole Thomson told council. "There's quite a lot of work in the province (B.C.) to do, and we're happy with that," he said. "Given current market conditions, you see a lot of other sectors slowing down. Right now, we're just trying to catch up because there has been such exponential growth in the production side. Pipelines really have been the bottleneck in market access." The pipelines would feed into the NOVA Gas Transmission line, a 25,000-kilometre network originally built in the 1950s. The larger of the two projects, the Towerbirch expansion, includes a 36-inch pipeline beginning in Saddle Hills county, running west to Groundbirch. That
line parallels an existing route, and would be built mostly on Crown and freehold land. A smaller pipeline would run north to Tower Lake. The project includes four metering stations. The smaller project is an expansion of the Bear Canyon section of the Northwest Mainline, across the Alberta border. The Towerbirch project would see around 450 workers housed in Dawson Creek in the second and third quarters of 2017. The Bear Canyon extension would have a workforce of 250-300 people, who would be in Dawson Creek in late 2016, early 2017. Mayor Dale Bumstead said the projects will be a boost for local hotels and restaurants at a time when many in the industry are building temporary worker camps outside city boundaries. “We're really pleased about that, because it's a great opportunity for our business community,” he said. "(TransCanada) don't need a big camp to provide (for) that short term six-month to a year project." TransCanada has five pipelines in various stages of the regulatory process in B.C. They include the Prince Rupert Gas Transmission line and the Coastal GasLink Pipeline, which would carry gas to liquefied natural gas projects in Prince Rupert and Kitimat, respectively. reporter@dcdn.ca
Cole Thomson, TransCanada community relations
R001697732
16
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
OPERATIONS
spectra handout
Spectra Energy is proposing a third looping project along its Fort St. John mainline southwest of Chetwynd. The pipeline, which is in the very early stages of planning, would run for 27-kilometres along the Pine River valley in the Stone Creek area.
Mike Carter Staff Writer
Spectra eyes pipeline expansion south of Chetwynd
Spectra Energy is sizing up a possible pipeline expansion project south of Chetwynd. The proposed Wyndwood Pipeline expansion project is a 27-kilometre, 36-inch diameter loop segment adjacent to the Fort St. John mainline that would be built in the Stone Creek area southwest of the district along the Pine River Valley. The company has yet to submit an application to the National Energy Board for the project. In council documents from the District of Chetwynd, Spectra projects the project could begin in the third quarter of 2016 if approved. However, Spectra spokesperson Jesse Semko said Jan. 19 that timeline was "not true or accurate at this point." "We're talking to landowners, First Nations, local governments and having those initial conversations," Semko added. "It'd be too early for a cost estimate and we don't have a construction timeline or in-service date at this point... This is all very preliminary and subject to change." Semko said those details should be hammered out in the next
six months. Planning for the project has been underway since at least last summer, when the company put out an “open season” call to the market to see if there was any interest from customers for the pipeline expansion, Semko said. He was not able to name the customers Spectra spoke with during these talks. The pipeline has a planned capacity of 50 million cubic feet per day. The project may also include upgrades to two existing compressor stations along the Fort St. John mainline. Semko said that is “something that is still being examined.” Looping segments allow pipelines to add extra capacity, without increasing the pressure on the mainline. Two other looping segments were proposed by Spectra in September, one in the Jackfish Lake area near Chetwynd that would start at the Pine River and run for 24-kilometres ending northeast of the town, and another south of Taylor. dcreporter@dcdn.ca
FEBRUARY 12, 2016
PIPELINE NEWS NORTH •
17
NEB hearing on North Montney pipeline withdrawn Mike Carter
Staff Writer
Landowners concerned with the location of a compressor station related to the North Montney mainline on their Groundbirch property have withdrawn their request for the National Energy Board to hold a detailed hearing. J. Darryl Carter, lawyer for William Brooke and
Danielle Cobbaert, wrote in a Jan. 11 letter to the NEB that the two landowners "have come to an agreement with TransCanada and are therefore withdrawing... (their) request for a detailed route hearing." Details of the agreement were not included in the letter. Brooke and Cobbaert had said that the development could affect the current and future use of
their lands. They opposed the construction timeline, and method with which the pipeline would connect to the compressor station. TransCanada lawyers had tried to have the concerns dismissed by the NEB in July. The national energy regulator denied that motion. dcreporter@dcdn.ca
Woodside puts Liard wells into production Woodside Petroleum Corporation is reporting that the Kitimat LNG Joint Venture brought its first Liard Basin well into production during the fourth quarter of 2015. The corporation also reports that the second development scale appraisal well was completed during the quarter and will be brought into production in early 2016.
"Production from these wells will help confirm the performance of the Liard Basin," Woodside wrote in its fourth quarter report Jan. 20. "The project continues to progress through the concept select phase.” Kitimat LNG is a proposed LNG export facility at Bish Cove, near the Port of Kitimat. Woodside and Chevron Canada each have a 50 per cent
stake in the project. The National Energy Board has approved an export licence for the project. The B.C. Environmental Assessment Office reports the project was "substantially started" as of September 2015. —AHN, with files from Daily Oil Bulletin
R001697755
18
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
Outlook
Alberta's royalty review could be a boon for B.C.'s oilpatch
Mike Carter & Jonny Wakefield Staff Writers
Tweaks to Alberta's royalty regime could give B.C. a leg up when it comes to oil and gas investment, an industry group says. The Canadian Association of Oilwell Drilling Contractors (CAODC) is warning the Alberta government that its royalty review, released Jan. 29, does not do enough to address the "competitiveness gap" between the province and its oil-endowed neighbours. "(The review panel was) very transparent and open in terms of where Alberta stood in comparison to other jurisdictions," CAODC president Mark Scholz said. "And B.C. and Saskatchewan were in some areas more competitive than Alberta from a royalty perspective." "Today's report does not make significant changes to the overall royalty take by the province, however, it falls short of our recommendation to reduce rates in order to (incentivize) drilling activity to offset provincial taxes," Scholz was quoted as saying in a release. "Furthermore, the recommendations do not address Alberta's competitiveness gap with other Canadian oil and gas jurisdictions such as Saskatchewan and B.C."
The panel did find that “overall, Alberta’s royalties are comparable with other jurisdictions,” but that “there are issues with the royalty structures for crude oil, liquids and natural gas that need to be addressed.” While the CAODC says the panel’s findings give the industry the stability it needs at a time when commodity prices are at historic lows, it finds the government’s incentives to reduce costs through a proposed Drilling and Completion Cost Allowance “ironic” since the NDP government has “effectively increased industry’s costs through... corporate taxes (and) carbon levies.” Overall, the report recommends few sweeping changes, and does not suggest any increase in oilsands royalties. The opposition Wildrose party called the review a “waste of time,” saying it needlessly created a cloud of uncertainty over the industry. While B.C. being at a competitive advantage for oil and gas drilling contracts could be a good thing for the local industry, an influx of Alberta service companies has put a strain on many Peace Region businesses struggling to stay competitive. Art Jarvis, of Energy Services BC, says that to stay in the game, some service companies in the B.C.
Canadian Association of Oilwell Drilling Contractors President Mark Scholz Peace are lowering fees for service to major oil and gas producers “in some cases to a point where they are just creating cash flow for the company—which is not going to save (them),” he said. “The first time they get hit with a big expense, they don’t have a budget for it. There are a lot of local companies that are suffering and having to tighten their belt.” ‘Race to the Bottom’ Some, like B.C. Green Party MLA Andrew Weaver questioned why anyone would want to have a royalty scheme similar to B.C’s, which he termed a “giveaway,” even if it
did offer a competitive advantage. “If you look at royalty revenues for the province of British Columbia, they have plummeted dramatically and it’s a public resource.” Weaver said engaging in a “race to the bottom” to lower royalty rates to attract business is not how a government ought to manage natural resources. “We can play the race for the bottom in natural gas (but) the reality is we’re going to lose out on that.” dcreporter@dcdn.ca reporter@dcdn.ca
FEBRUARY 12, 2016
PIPELINE NEWS NORTH •
19
FEBRUARY TRAINING SCHEDULE •
EMR Bridging Course – February 8, 2016
•
Ground Disturbance – February 15, 2016
•
Confined Space – February 16, 2016
•
Staff Training – February 17, 2016
•
Staff Training – February 18, 2016
•
Fall Protection – February 19, 2016
•
CPR-C – February 22, 2016
•
Level 1 – February 23, 2016
•
H2S – February 24, 2016
•
Gas Detection – February 25, 2016
R0011161899
20
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
business
Estimated cost of Towerbirch expansion drops to $439M
TRANSCANADA
An overview of the Towerbirch expansion project.
Pipeline construction slated to start in March 2017, subject to approval Elsie Ross
Daily Oil Bulletin
NOVA Gas Transmission Ltd. has revised the estimated cost of its proposed Towerbirch pipeline expansion to $439 million, down from an earlier estimate of $470 million. In additional evidence filed with the National Energy Board, the company says the revised cost estimate includes the addition of two new meter stations at Dawson Creek East and Groundbirch East. The proposed Dawson Creek East receipt station will be located along the Groundbirch Mainline
Loop, approximately two kilometres north of Dawson Creek, while the proposed Groundbirch East receipt meter station will be on the site of the existing Groundbirch East meter station, approximately 36 kilometres west of Dawson Creek. Subject to regulatory approval, pipeline construction is scheduled to begin in March 2017 with a targeted in-service date of November 2017. NGTL also says that since filing its application in September 2015, it has executed contracts with five new customers for an additional 269 million cubic feet (mmcf )per
day of firm transportation receipt service on the Groundbirch Mainline. The project is now underpinned by contracts totalling 859 mmcf per day of firm transportation commitments, including 590 mmcf per day from the Cutbank Ridge Partnership. The Towerbirch expansion project consists of approximately 55 kilometres of 36-inch outside diameter pipe (Groundbirch Mainline Loop) that will parallel the Groundbirch Mainline while the Tower Lake section consists of approximately 32 kilometres of 30inch pipeline. Two proposed tie-ins are along the Tower Lake section. Â
The project, which is located on both private and Crown land, will be adjacent to existing or proposed linear disturbance for approximately 68.9 kilometres (78.8 per cent) of the route. The majority (81 per cent) of the 388.8 hectare-route is comprised of existing disturbance with 75 hectares (19 per cent) of the project crossing natural upland vegetation and wetlands. The route also crosses 24 watercourses. In its additional written evidence, the company also details its record of engagement with 27 Aboriginal groups.
FEBRUARY 12, 2016
PIPELINE NEWS NORTH •
21
R0011181077
22
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
parks
district of taylor photo
The Fort St. John Petroleum Association and the Peace Country River Rats jet boat club have been scheming for four years on a plan to bring a permanent, all-weather facility to Peace Island Park.
Oilmen plan multi-purpose facility at Peace Island Park Peace Country River Rats another major driver
Mike Carter Staff Writer
A plan years in the making for a permanent, all-weather facility at Peace Island Park is finally gaining some traction. The Fort St. John Petroleum Association and the Peace Country River Rats jet boat club have been scheming for four years on the project, according to Sean Thomas, president of the petroleum association. The multi-purpose facility originally came as an idea to save costs for the association's annual family camp weekend. The jet boat club came on board as another major driver behind the project, because the club also hosts events in the park, including their annual races and poker run. Once built, the facility would be available to the community as a whole to rent for weddings or private functions. "It's actually kind of exciting because it's the first time we've had some teeth and traction into it," Thomas said. According to Thomas, the project has hit a few bumps in recent years, with the building of a new boat launch in the park and the construction of a passing lane for the Taylor Hill. But now, thanks to a partnership with the University of Northern British Columbia, through a Masters course in project management being offered at Northern
Sean Thomas Lights College in Fort St. John, and through work done by WSP Canada, the project is taking shape. The class is providing all of the "leg work" for the project, Thomas said, while WSP is providing geotechnical work. At the end, the project management class will hand the association a "shovel ready" project. "All we'll have to do is (find) a contractor and away we go," Thomas said. Kevin Hrab, a student in the project management course, said his instructor asked the group to come forward with ideas for a "live project" they could work on as a class. "I had mentioned to the class that this
project is in need of some administrative support," Hrab said. "So, what we're trying to do is make sure all the leg work is done so that the (FSJ Petroleum Association) will (become) a steering committee. Our role is to bring structure to the project and help move it forward." Total costs are estimated at $109,000. The petroleum association has committed to kicking in $25,000, while the River Rats have said they'll give $30,000. Both groups are hoping to collect about $24,000 in donations and a request is in to the Northern Development Initiative Trust (NDIT) for the remaining $30,000. The District of Taylor, which owns Peace Island Park, has said it's in favour of the project, according to Thomas. The group sought support from the Peace River Regional District at its Jan. 28 meeting. Support from local governing bodies helps in the application for the NDIT grant. The building will likely save the petroleum association about $33,000 a year by eliminated the need to rent large tents and other structures to put on its family camp weekend. The association is working on a fundraising event that could take place near the end of May. dcreporter@dcdn.ca
FEBRUARY 12, 2016
PIPELINE NEWS NORTH •
23
PRRD says no to gas drilling in Blackfoot Park
Jonny Wakefield
Staff Writer
Peace River Regional District directors are saying no to oil and gas drilling in a popular regional park. Blackfoot Park could be opened for drilling if a 2,500-acre parcel is sold at the province's petroleum and natural gas disposition, the monthly sale of oil and gas drilling rights. The L-shaped parcel straddles the Peace River and includes Blackfoot Regional park, a popular camping destination. It was removed from an earlier land sale after protest from the regional district, but the Ministry of Natural Gas Development intends to sell the drilling rights at a later date. On Jan. 14, the PRRD asked that sale of the tenure be withdrawn. Area B Director Karen Goodings was "adamant that they should leave this little piece of property alone" in a discussion with the ministry. "We have spent, as a regional board, a lot of money developing that park. It is well-used
and well-loved by the people," she said at a regional board meeting Jan. 14. "There is absolutely, in my mind, no need for them to drill in the park." The parcel includes two sections of the provincial Peace River Corridor Park, and abuts the Clayhurst Ecological Reserve across the Alberta border, as well as a public water well. Drilling is banned in provincial parks, but deposits can be accessed through directional drilling, so long as the well is not on park property. However, local parks are considered private property when it comes to subsurface rights. “So oil and gas drilling is not allowed in provincial or national parks but it is allowed in local parks?” asked Fort St. John Mayor Lori Ackerman, suggesting the board tell the ministry they won’t allow drilling there. In August, regional district staff learned the 2,500-acre parcel was set to be auctioned off at the September land sale. The district told the ministry it was opposed to any sale that would allow drilling in the park. The district and the ministry spoke about the issue four times. The district sug-
gested making “no surface access” within the park a sale condition, but a report notes the ministry was “reluctant” to include that condition. The PRRD feared well sites in the area would have negative impacts on park users, boaters and bird watchers who use the park and surrounding area. Specifically, there were concerns about traffic increases on the unpaved roads on both sides of the river. “The current roads (particularly on the north side) are steep and narrow and insufficient for increased volumes of heavy traffic that would be generated by drilling and production in close proximity,” the report states. Also of concern: the fact the parcel spans the Peace River “and includes highly erodible hill sides.” “It’s time to tell the province enough. We need to have some space that we can call our own for our residents, without having the interference of oil and gas or anything else,” Goodings said. reporter@dcdn.ca
MULTI-TENANT INDUSTRIAL BUILDING 780 HIGHWAY 2, DAWSON CREEK, BC
Opportunity to lease small or large industrial bays Located in the heart of the Montney Shale Gas basin
PHASE 1 - ALMOST 50% LEASED! LEASE RATES AS LOW AS $12 PSF
Building Highlights: -
Phase 1 - almost 50% Leased Phase 2 - coming Spring 2016 Bays from 3,000 - 107,600 square feet Up to 100 acres outside storage/laydown Potential for rail access
- Offering prime highway frontage - Flexibility to demise Building and Yard to suit Tenants’ needs - Build to suit opportunities also available - Short or Long term leases considered
FOR MORE INFORMATION, PLEASE CONTACT:
24
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
Follow the Leader.
This is the game we like to call “Follow the Leader”. Ram 1500 is powerful enough to tow 9,200 lbs and delivers up to 29 miles per gallon highway which is Best-in-Class. With more people driving Ram Trucks more than ever before, we’ve built quite the following.
2015 starting at RAM $ 1500
21,695
See Dealer for complete details.
FORT CITY
www.fortcitychrysler.ca
250-787-5220 1-877-787-5220 8424 Alaska Road Fort St John
Guts. Glory. Ram.
Terra closes minor asset sale in B.C. Terra Energy Corp. has closed the sale of minor non-core, petroleum and natural gas (P&NG) assets in the Mica/Parkland area of B.C. for roughly $1 million. Net proceeds were used to reduce debt. The company’s credit facility has correspondingly been reduced by $1 million to a $14.7 million revolving loan, and a $500,000 remaining development line and is subject to annual and mid-term review. The facility is payable on demand with the next annual review scheduled for May 1, 2016. Black Spruce Merchant Capital has and continues to act as exclusive advisor to the company in connection with all sale transactions. Terra will continue to review and evaluate possible opportunities to further enhance shareholder value, including the sale of additional oil and gas properties, entering into strategic alliances, mergers, restructuring or recapitalization of the company. Black Spruce is currently in the process of marketing the company’s brownfield gas plant and related infrastructure opportunity located in the liquids-rich part of the Montney trend in northeast British Columbia. —Daily Oil Bulletin
FEBRUARY 12, 2016
PIPELINE NEWS NORTH •
25
first nations West Moberly reaches agreement on Coastal GasLink First Nation the latest to sign deal on 670-kilometre pipeline
Mike Carter
Staff Writer
TransCanada Corp. has reached a project agreement on the Coastal GasLink pipeline project with the West Moberly First Nations and the Nadleh Whut’en First Nation west of Prince George. These agreements outline benefits that will be paid to these communities during the pipeline's lifetime. “We have worked closely with the Coastal GasLink team to ensure our culture, the environment, safety and economic benefits are considered,” West Moberly Chief Roland Willson said in a statement.
No details about the deal were released. "I don't have... specific details because of confidentiality agreements that we sign with the First Nations involved," TransCanada spokesperson Shela Shapiro said. "Each agreement is different and based on long discussions and negotiations with each First Nation." The Coastal GasLink project is a proposed 670-kilometre natural gas pipeline that will stretch from the Groundbirch area, between Chetwynd and Dawson Creek, to the proposed LNG Canada liquefied natural gas (LNG) export facility near Kitimat.
The pipeline and corresponding export facility would bring natural gas from Northeast B.C. to the coast for export to Asian markets. The Blueberry River First Nation north of Fort St. John signed a similar agreement in December. The pipeline project has received support from the Fort St. John & District Chamber of Commerce, City of Dawson Creek and Dawson Creek & District Chamber of Commerce, the Chetwynd Chamber of Commerce and the District of Chetwynd, among others. dcreporter@ahnfsj.ca
We Rent, Sell & Lease...
R0011162706
ALL MAKES AND MODELS! • • • •
Flat decks Cube vans Pick-ups SUVs
• 4x4s • 7 & 15-passenger vans • Cargo vans
On-line inventory at www.drivingforce.ca Daily, weekly and monthly rates
Dealer #30221 Dealer #30221 Dealer #30221 Locations coast-to-coast-to-coast
Locations coast-to-coast-to-coast
6674 Airport Road, Fort St. John 9919 - Terminal Road, Fort St. John Toll Free:
1•888•464•2758
11507 - 100 Street, Grande Prairie Toll Free:
1•877•959•8574
26
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
business
Prince Rupert port strengthens ties with Northeast B.C. Bronwyn Scott Staff Writer
bronwyn scott Photo
Ken Veldman said the Prince Rupert Port Authority saw around 20-million tonnes of cargo move through port in 2015, about $5-billion worth of goods being sent overseas.
In a time of economic uncertainty, Ken Veldman of the Prince Rupert Port Authority had some words of encouragement for Fort St. John businesses Jan. 19. Veldman, director of public affairs for the port authority, gave a luncheon address to the Fort St. John and District Chamber of Commerce on the port’s operations and how they affect Northeast B.C. “The reality is that this region has really strong connections to Prince Rupert, although somewhat under the covers at times,” Veldman said in an interview. “I mean, you look at some of our strongest cargo segments, whether it be grain, or coal, or forest products, and we get a lot of that from this region.” Looking ahead, liquefied natural gas will be another major connection. “I think everybody knows that the Pacific NorthWest LNG project is starting to enter its final phases of a federal environmental assessment, so we’re quite confident in the environmental assessment process,” Veldman said. “Hopefully, it meets the standards... and receives an approval from the federal government, and once that’s in hand we fully expect that very, very large investment decision to go forward.” In addition to that anticipated surge in activity in the northeast, the service industry has grown exponentially over the last few years. “We’ve really seen the emergence of almost a new service industry in northern B.C., and obviously the port is located in Prince Rupert, but its impact is much further-reaching than that,” said Veldman. “Beyond the trade connection with
Prince Rupert Port Authority updates FSJ Chamber on business and future growth plans different industries that are shipping through that gateway, the employment from moving goods through northern B.C. is not just about terminals on the water, it’s about trains and trucks and logistics jobs.” The port authority completed an economic impact study last year, which showed there are roughly 3,000 direct jobs related to moving product to and from the port in northern B.C. While half the jobs are in Prince Rupert, the remaining 1,500 jobs are spread out over the north of the province. Veldman didn’t have a breakdown of how many of those jobs are in the northeast, but did say the port has seen record highs in terms of exporting materials, and that large quantities of those products are coming from the Peace Region. “We’ve seen really strong job growth over the last five years,” he said. “Our grain industry has never been stronger as it has in the last couple of years, they’ve been setting record highs... a lot of the grain is coming from here,” he said. It also comes from Alberta, Saskatchewan, and Manitoba. The port has grown significantly over the past five years, and Veldman expects that expansion to continue, which benefits other communities in Northern B.C. “This year (2015), we did about 20-million tonnes through Prince Rupert, on an export basis, that’s about $5-billion worth of Canadian goods that are being sent to overseas markets,” Veldman said. “We believe, and what we’re planning for is, that Prince Rupert will exceed 100 million tonnes as a port at some point over the next couple of decades.” Prince Rupert is the fifth largest port in Canada, by volume, and the third largest in Canada by container volume, according to Veldman. The port is 10 million tonnes away – “which is one terminal,” he said – from being the second largest port in Canada. “I think that shocks a lot of people to find that out. We’re a little community, we’ve got about 13,000 people, but it’s a community that’s dedicated to doing this, and we do it really well,” Veldman said. peacereporter@ahnfsj.ca
FEBRUARY 12, 2016
PIPELINE NEWS NORTH •
27
Enbridge buys Murphy Oil gas plants near Dawson Creek for $538 million Enbridge Inc. has announced the $538-million acquisition of the Tupper Main and Tupper West gas plants and associated pipelines in Northeast B.C., from the Canadian subsidiary of Murphy Oil Corporation. Located 35 kilometres southwest of Dawson Creek, the Tupper Main and Tupper West plants are adjacent to Enbridge's existing Sexsmith gathering system and close to the Alliance pipeline, the 3,700-kilometre line to supplies gas from Northeast B.C. and Alberta to Chicago and midwestern U.S. markets. "This acquisition fits extremely well with Enbridge's low risk value proposition and supports our key priority of extending and diversifying growth," C. Gregory Harper, president of gas pipelines and processing, said in a release. "These assets, which are currently in operation, are underpinned by long-term contracts that generate highly
predictable cash flows. They also enhance our natural gas footprint within the Montney, one of the most attractive gas plays in North America, and add gas processing services in proximity to our existing Sexsmith gathering system." The company is already part owner of several natural gas pipelines in Northeast B.C., an Enbridge spokesperson wrote in an email. Tupper Main came into service in late 2008 and has a licensed capacity of 110 million cubic feet (mmcf ) per day. Tupper West went into service in early 2011 and has a licensed capacity of 210 mmcf per day. The assets include approximately 53 kilometres of high pressure pipelines. The transaction still requires regulatory review and approval. —Daily Oil Bulletin, with AHN files
Pipeline News.fh10 1/6/16 12:27 PM Page 1
Emergency Thawing Pioneers in Flameless Heating Technology
Bring the heat.
APPLICATIONS: Emergency thawing Pipeline thermal expansion
Ideal for emergency thawing and a multitude of other extreme climate challenges.
Pipe, facility and tank heating Industrial chilling Industrial drying Head Office: 9502 - 87th Ave Morinville, AB T8R 1K6 (780) 939-3141
“As a result of this collaborative team effort, the project was completed with exceptional quality and was delivered on-time, within budget, and with no safety incidents.”
Fin fan thawing Fresh air circulation Concrete curing Ground thawing
A Division of Enterprise Group Inc.
Tank coatings Lloydminster Calgary Grande Prairie
artictherm.com
SAGD applications
1.855.350.HEAT (4328) RENTALS
•
PROJECTS
•
CLIMATE CONTROL r0021178394
Flameless Heat and proven blower Technology
28
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
operations
jonny wakefield photo
A potable water spout at Dawson Creek's water station. The city's water use trends were released in a report Jan. 18, which noted a 36 per cent drop off in oilfield use.
Oilfield using less water but worker camps are using more Jonny Wakefield
Staff Writer
Fracking operations drew less potable water from the city of Dawson Creek in 2015, but worker camps picked up some of the slack. Oilfield water fell dramatically amid a slowdown in drilling last year, down more than 36 per cent, according to a staff report delivered to city council Jan. 18. It was the most noticeable trend in the city's 2015 water consumption—numbers that contain other hints about the city's development and population. Overall, Dawson Creek recorded a modest decrease of 2.54 per cent in overall water consumption, from 1.67 million cubic metres in 2014 to 1.63 million last year. Filling part of that gap was residential water use outside city boundaries, a category that includes oilfield worker camps. “Regardless of the fact that drilling is
slower than it has been, there are more camps than there have been...and most of them (in the area) have opted to access potable water from (the city of ) Dawson Creek,” Chief Administrative Officer Jim Chute said. Overall, businesses used 2.85 per cent more water (780,000 cubic metres total), while residential use fell 1.49 per cent to 760,000 cubic metres. Oilfield use dropped from 147,668 to 94,182 cubic metres. Water consumption can be used to gauge how many people live in Dawson Creek, Chute said. “We have all sorts of metrics that show us we have more population than the 12,000 base the census tells us,” he said. “We use Canadian standards for water consumption per capita, and it brings us out much closer to 14,000 people.” That includes the hard-to-measure “shadow population” of transient work-
ers. “They’re living in a hotel or a suite, they’re working, usually oilfield related,” he said. “But when the census taker comes around, they identify their primary location as somewhere else.” The Jan. 18 report doesn’t take full account of the water the city sells to industry for fracking. A large portion comes from the city’s reclaimed water plant, which treats sewage water for industrial use. Encana Corp. was granted exclusive access to that water for a fracking operation set to run Jan. 22 to Feb. 29. The company will need up to 7,000 cubic metres a day, 4,000 of which may come from the city. The city sells that water for $2.50 a cubic metre. A standard Olympic size swimming pool contains 2,500 cubic metres of water. reporter@dcdn.ca
FEBRUARY 12, 2016
PIPELINE NEWS NORTH •
29
workplace
Hearing loss in oil and gas double other industries Jonny Wakefield Staff Writer
Not using hearing protection on a job site could lead to a loss of hearing later in life.
ion may ce Reg rs in Pea : Drille rt o p l re Specia ORTH.CA
NEWSN
ISSUE VOL. 7
,000
16 6 DIST:
n for clea
G THE SERVIN
power
RTH
S NO NE NEW
PIPELI
PIPELINE
C tap Site
JUNE /
Workers in the oil and gas sector are twice as likely to lose their hearing as workers in other noisy industries, a new report from WorkSafeBC shows. According to the worker safety regulator, one-third of employees in the province's upstream oil and gas industry, including drilling and pipeline workers, showed signs of hearing loss in a 2014 test. "This is a concern," Budd Phillips, a regional prevention manager based in Fort St. John, said in a release Jan. 25. "The hearing test results in oil and gas for noise-related hearing loss are more than double compared to other
industries with hazardous noise levels." He said the findings should serve as a wake up call for employers in the sector, and underscore the need for hearing loss prevention programs. The report also noted 27 per cent of young workers in the industry do not regularly use hearing protection. Overall, the data suggests hearing protection in the oil and gas industry "is in some cases insufficient and needs to be re-evaluated by employers." Among the improvements needed in the industry are annual hearing checks, as well as "vigilant monitoring" to determine where employees are most at risk of hearing loss.
Northern British Columbia and Alberta’s Oil and Gas Industry
15
JULY 20
Full Page 6 col x 180 ag (9.448” x 12.857”)
FREE!
BERTA . AND AL RN B.C NORTHE STRY IN S INDU OIL & GA
y A heav f reality dose o
Half Page horizontal 6 col x 90 ag (9.448” x 6.429”)
Half Page vertical 3 col x 180 ag (4.645” x 12.857”)
Banner 6 col x 42 ag (9.448” x 3”) – 1/2 Banner (---) 3 col x 42 ag (4.645” x 3”)
“Pipeliner” 2 col x 32 ag (3.045” x 2.28”)
debate peline ada’s pi g for Can it wron s have y check ic it it al cr re A supply 0 oil me gas en at $6 king ev d, n Why so ou fear frac not to nities ab uamish Opportu tells Sq k ee Cr n Dawso
s file lamer matt
Photo
Quarter Page vertical only 3 col x 90 ag (4.645” x 6.429”)
to fuel ntinue will co ergy. me. It able en untry. e to co rd m fo ti af e co long and ross th liable re for a ’s futu ss to re oil and gas ac e world ith acce ort and th dians w transp Canada iding Cana ient way to of rt prov a pa effic d most y, while remain gas will of the econom the safest an Oil and part ven to ld be gi a large ou sh n eratio Consid
PRINT & ONLINE EXPOSURE
reporter@dcdn.ca
46
R0016977
LOCATIONS THAT SUIT YOUR BUSINESS NEEDS
ADVERTISING RATES 2016 (colour included)
Back Page - $1500 Inside Back - $1000 Inside Front - $1000 Centre Spread - $1500 Full Page - $1000 Half Page - $600 Quarter Page - $350 Front Banner - $600 (limited number) Banner - $300 Half Banner - $200 Pipeliner $100 DISCOUNTS: 1 year - 15%, 6 months - 10%
• Distributed to the community in general through these fine publications, Alaska Highway News, Dawson Creek Daily and Fort Nelson News. • Distribution by mail and direct drop-off to Oil & Gas companies,and related businesses and organizations, in the following communities: BRITISH COLUMBIA – Arras, Baldonnel, Cecil Lake, Charlie Lake, CHETWYND, Clayhurst, DAWSON CREEK, Farmington, FORT NELSON, FORT ST. JOHN, Goodlow, Groundbirch, HUDSON HOPE, Moberley Lake, Pink Mountain, Pouce Coupe, Progress, Rolla, Rose Prairie, Sunset Prairie, Taylor, Tomslake, TUMBLER RIDGE, and Wonowon. ALBERTA – Baytree, Bear Canyon, BEAVERLODGE, Berwyn, Bezanson, Bonanza, CLAIRMONT, Eaglesham, FAIRVIEW, Falher, Girouxville, GRANDE PRAIRIE, Grimshaw, Grovedale, HIGH PRAIRIE, Hines Creek, Hythe, LaGlace, MANNING, McLennan, PEACE RIVER, Rycroft, SEXSMITH, Silver Valley, Spirit River, VALLEYVIEW, Wembley, and Worsley, Zama City.
30
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
construction
painted pony Photo
TOWNSEND NEARING COMPLETION: Construction of the AltaGas Townsend Facility near Wonowon is progressing ahead of schedule and is approximately 70 per cent complete, according to the latest update from Painted Pony Petroleum Ltd. As a result, AltaGas and Painted Pony say they expect to commission the facility earlier than the initially scheduled date of Sept. 1. Painted Pony says it is currently drilling three wells, and plans to drill a total of 29 in 2016.
2016 SCHEDULE PUBLICATION DATE
BOOKING DEADLINE
AD COPY DEADLINE
15 JAN 2016
13 JAN 2016
14 JAN 2016
12 FEB 2016
10 FEB 2016
11 FEB 2016
11 MAR 2016
9 MAR 2016
10 MAR 2016
15 APR 2016
13 APR 2016
14 APR 2016
13 MAY 2016
11 MAY 2016
12 MAY 2016
17 JUNE 2016
15 JUNE 2016
16 JUNE 2016
15 JULY 2016
13 JULY 2016
14 JULY 2016
19 AUG 2016
17 AUG 2016
18 AUG 2016
16 SEP 2016
14 SEP 2016
15 SEP 2016
14 OCT 2016
12 OCT 2016
13 OCT 2016
18 NOV 2016
16 NOV 2016
17 NOV 2016
16 DEC 2016
14 DEC 2016
14 DEC 2016
R0011177933
FEBRUARY 12, 2016
PIPELINE NEWS NORTH •
Luxury for less than rent
1325/month*
$
It’s a great time to buy see us today about incentives!
Show Home Hours
Thursday & Friday 4pm - 7pm Saturday & Sunday 2pm - 4pm #101, 11205 105th Ave, Fort St. John
Kevin Pearson | 250.787.6737 Mitch Collins | 250.262.9338 Eli Chi | 778.256.2888 * based on 5% down payment on purchase price of $284,900 with 25 year amortization at 2.99% interest
Visit our virtual tour at www.signaturepointe.ca
31
32
• PIPELINE NEWS NORTH
FEBRUARY 12, 2016
FIRST TIMERS & INVESTORS Home on huge lot
NEW LISTING 3 Bdrm, with basement!
Perfect Starter or Investment!
• Charming updated 2 bedroom bungalow • R4 zoned, fully fenced yard, with lane access. • Open layout, newer kitchen, flooring, windows • More info at www.century21.ca/101102767
282,500
$
• Updated 1564 sq ft home • 3 bdrms, 2 bth, full basement • Fully finished ,in a great neighbourhood • Fenced yard, with lane access • Call for more info at www.century21.ca/101118660
• Main level features 2 bdrms, 1 bth, updated kitchen • Lower level boast rec room, bathroom, bedroom + 2 dens with closets • Large .20 acre corner lot zoned RM2, ideal for future development • More information at www.century21.ca/101110027
$399,000
$299,800
BUILD YOUR DREAM HOME Put your Mobile Home Here!
Last Lot in Pacific Properties!
Build your Mansion Here
• • • • •
• 4 acres in Prestigious Pacific Properties • Build your dream home and shop • Percolation test completed, and lagoons approved • Great location on the edge of town, with valley views • More info at www.century21.ca/Property/101086649
• • • • •
5 bedroom Sunset Ridge Home
Fully Finished Home in Sunset Ridge
$679,800
$669,000
Fantastic 4.97 acre property, 10 minutes to Fort St. John Perfect place to sit a mobile home, or build your dream house Close to all recreational amenities Charlie Lake has to offer Easy commute to town www.century21.ca/101079794
$205,000
$279,900
1/4 section of land, only 5 minutes to town 60 acres of field & great views of the valley New road access to property and many building sites Lease revenue www.century21.ca/101039068
$749,000
CUSTOM SUNSET RIDGE Custom Home in Sunset Ridge
$579,000 • New 3 bdrm, 2 bth, 1465 sq. ft. home w/full unfinished basement • Master retreat with spa like ensuite • Transcending west facing deck, with access from living & master rooms • Custom finishes incl neo-classical ceilings, gas f/p, & feature rock wall • www.century21.ca/101078910
New Listing! Elite Home with 4 Car Garage!
· 5 bedrooms, 3 full baths, 2900+ fully finished home
• Hardwood floor, granite countertops, gas fireplace • Fully fenced, landscaped, corner lot in Sunset Ridge • Oversized double garage, huge family and games area in basement • More information at www.century21.ca/101103633
New, High End Condos
• Exception 4 bdrm, 4 bth, fully finished 2754 sq ft home in Sunset Ridge • High end finishing’s, above and beyond the competition • Soaring gas fireplace 2 story rock wall • Phenomenal 4 car garage with heat and water • More info at www.century21.ca/101120476
$829,000
· Beautiful 3 bdrm, 3 bth home
• Feature fireplace with mosaic, concrete counter, buffet and wine fridge • Master ensuite with multi-coloured undermount lighting • Fully finished basement plumbed for in-law suite • More info at http://www.century21.ca/101109552
Builders! Now is the time to BUY
• 969 sq ft to 1163 sq ft with 2bdrms plus • 2 parking stalls with power • Great location, across from man-made lake • Building features gym, games room and storage
From
$284,900
• Master Planned subdivision Sunset Ridge in NW For St. John • Community feature man-made lake,walking trails,throughout • Fine homes, deluxe condos, sidewalks and underground services From • Future development includes new school, urban centre with shops and more
$149,000
RETREAT TO THE COUNTRY 160 Acres with House and Shop!
1700+ Acre ranch with 2 houses
REDUCED Executive Home in Pacific Properties
• 1365 sq ft 3 bdrm updated home, with concrete basement • Impressive 1920 sq ft heated and insulated, wired shop with 16’ doors • Barn, round pen, 2 shelters for animals • Oil lease with $5850 revenue/yr. Only 15 mins to town • For more info http://www.century21.ca/101111679
• Outbuildings include 44x80 shop, 50x90 tarp building, 60x80 lean to • 60x68 barn, with concrete floors • Property is cross fenced and features natural spring. Gravel pit potential. • www.century21.ca/101091233
• 3754 sq ft fully finished home on 4 acres • High end finishings, 3 bdrms on main level with spa ensuite • Lower level set up w/second kitchen, 2 bdrms, den/media rm • Country setting close to town REDUCED • www.century21.ca/101108174 $799,000
$749,000
$2,950,000
NOW IS THE TIME TO BUY! CALL KEVIN TODAY TO ASK ABOUT 0% DOWN PAYMENT.