PNN FEBRUARY 2021 by Pipeline News North

PIPELINE NEWS NORTH

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

February 2021

VOL. 13 • ISSUE 02 • DIST: 18,000

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South Peace Oilmen’s Association celebrates 30 years The South Peace Oilmen’s Association celebrated 30 years on Jan. 28, the non-profit formed in 1991 to provide a social network for men in the oil and gas industry. The organization began with only 25 members, championing many causes and projects over the years. President Paul Gevatkoff says the group was founded with the intention of helping others, and that still rings true today. “We made a commitment that we were going to donate our money to the local area, and focus on kids as much as we could, sports, families in need,” said Gevatkoff. “We always put it back into the community, mostly for people that needed some help.” Hundreds of thousands of dollars have been raised by association, through events such as Lobster Fest, held every year until COVID hit. “The 30 years have gone by real quick. I look back and it doesn’t seem that long ago,” said Gevatkoff. The first charitable act of the society was to donate 400 work hours to get Bear Mountain Ski

South Peace Oilmen Paul Gevatkoff, Murray Pratt, Dale Suderman, and Jim Inkster stand with pride at the Dawson Bridge. SUMMeR Hill up and running, with From there, fundrais- Mile 0 Post. has been there since the a lift being installed. ing moved into getting Former president inception, still is,” said “We spend all summer a new timing clock for Murray Pratt says Gevat- Pratt. “The basis of the working on the ski hill to the hockey arena, a new koff is still the heart of oilmens’ was that when get the lift back in shape, water slide for the Cen- the organization. people needed help, they so they could operate tennial Swimming Pool, “Paul should get a pat needed it right away. next season,” said Gevat- bursaries for local stu- on the back for every- We were able to provide koff. “That was that was dents, and the annual thing that he does, he’s that.” the start of the club.” Christmas Tree at the community minded and Tom Summer

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2 The Pipeline News North, FEBRUARY 18, 2021

BC’s dormant well program a win-win, says Dawson Creek mayor A second intake is underway for the Province’s Dormant Sites Reclamation Program. Another $50 million being put towards supporting BC’s oil and gas industry, with the aiming of reducing environmental impacts. Applications are open for service companies to do contract work on site nominated in 2020, focusing clean-up efforts on community needs. In total, $120 million is being put forward by the federal government for three different well reclamation programs. Dawson Creek Mayor Dale Bumstead joined Bruce Ralston, BC’s Minister of Energy, Mines and Low Carbon Innovation, and Jonathan Wilkinson, Federal Minister of Environment and Climate Change for a Thursday three-way discussion on the program. Bumstead says the funding is an important partnership between federal, provincial, and municipal governments, and comes at a time when many Canadians are financially struggling due to the COVID-19 pandemic. “When you try to initiate these programs, you’re always looking to find that win-win. To find that opportunity that provides value,” said Bumstead.

Northeast BC started 70 years ago, and so there’s an accumulation of infrastructure that’s been built over many decades. So for us, to start the inroads of having an impact on the environment, it’s been very beneficial,” Bumstead said. Ralston says the program is a success. “Given the downturn as the result of COVID, it’s provided work for landowners that has to be done,” said Ralston. “But there has to be some funding to support that. It’s also been a real boon to the other sector, the field service sector.”

Companies can receive up to $100,000 or 50% of total costs, whichever is less, per eligible work activity. 79 service companies undertook reclamation work on 1,880 dormant wells in the province, creating over 1,200 jobs when the first intake completed in September 2020. An online nomination portal was available to Indigenous communities, landowners and local governments to help prioritize dormant oil or natural gas sites. Wilkinson says the programs are critical to safeguarding the environment. “Through this program, we

He added that the environment is the top win of the program, followed by local economic benefits, improved relations with First Nations partners, and returning land to agriculture use. “The evolution of industry in

FORT ST JOHN

PETROLEUM ASSOCIATION FSJPA/

fsjpa.wildapricot.org

Become a Member

The Fort St. John Petroleum Association is actively seeking new members. The purposes of the society Fort St John Petroleum Association are: • To create a nonprofit fraternal organization for educational, benevolent and social purposes. • To create a medium through which the society members may express themselves in Social activities, Educational pursuits and Athletic endeavors. • To contribute to the community in supporting worthwhile projects as decided upon from time to time by the society. • To provide entertainment that is enjoyable, instructive and beneficial to its members and families. • To encourage a spirit of good fellowship among the society members.

Contact us: Unless otherwise specified all regular meetings are held upstairs at the Fort St. John Curling Rink at 6:00 pm on the second Thursday of the month. Fort St. John Curling Rink 9504 96 St, Fort St John, BC Mailing Address:

Fort St. John Petroleum Association Box 6122, Fort St. John BC V1J 4H6

are preventing the leakage of methane emissions that are harmful to human health and the environment, supporting landowners by helping to restore their lands, and protecting and creating good jobs right here in British Columbia,” said Wilkinson. Five dormant wells were reclaimed in species at risk habitat critical to the woodland caribou in Northeast BC.” Another 669 dormant wells are slated for work near the Snake-Sahtahneh Range. tsummer@ahnfsj.ca

The Pipeline News North, FEBRUARY 18, 2021

Macro signs new TMX contract In December, Macro reported that the Macro Spiecapag Trans Mountain Joint Venture, its 50/50 joint venture with Spiecapag Canada Corp., received a notice of termination from Trans Mountain Pipeline L.P. to “terminate for cause” the construction contract for Spread 5B due to ongoing challenges between the joint venture and Trans Mountain. Meanwhile, Trans Mountain says it has begun the restart process for construction following a voluntary review of safety and workplace practices. The company voluntarily stood down work after two serious workplace incidents in late 2020. A staged remobilization of the company’s 7,000-strong workforce began last week. The restart process will begin with the safety re-training and re-orientation of all supervisors and workers before construction resumes.

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Macro Enterprises says its wholly-owned subsidiary, Macro Projects Inc., has entered into a general construction contract for interim work with Trans Mountain Pipeline L.P. The Spread 5B segments awarded to MPI involve a combination of clearing, grading, and pipeline construction along the Coquihalla-Hope corridor in British Columbia. The contract provides for MPI to continue with certain construction activities in Spread 5B on an interim basis to complete a portion of the scope of work specified under a previous contract. Macro said it expects the contract will continue until a replacement general construction contractor is chosen and a new replacement contract is entered into, expected within the next three months. The contract has an initial estimated value that exceeds $50 million.

4 The Pipeline News North, FEBRUARY 18, 2021

PNN MISSION STATEMENT Pipeline News North provides current, interesting, and relevant news and information about the oil and gas industry in Northeast B.C. and Northwest Alberta. Have an interesting story to share or a news lead? Email us at editor@ahnfsj.ca.

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

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Disposal well near Hudson’s Hope decommissioned A disposal well located near Hudson’s Hope has been decommissioned by its owner, Canada Energy Partners (CEP) Inc., says the BC Oil and Gas Commission. As the well has been both abandoned in the sub-surface and surface, it can no longer be used for disposal. The well, formerly operated for deep disposal of produced water, is located about 3.3 kilometres north of BC Hydro’s Peace Canyon Dam and was originally drilled in 2006 to a depth of 1,610 metres. A disposal well is a well into which waste fluids can be injected for safe geologic storage, approved by the OGC and subject to testing, monitoring and reporting conditions. The well was used for disposal between 2008 and 2010 and again between January and March 16, 2017.

In 2017 the commission issued an order to suspend disposal activities pending a review of technical information. Following the review, the commission attached operating conditions to the order that CEP needed to meet before the well could resume operations. Some conditions were not met and during September 2020 CEP decommissioned the well. With surface abandonment (cut and cap) the disposal approval order under section 75 of the Oil and Gas Activities Act was considered spent and has been cancelled. The commission will ensure any equipment remaining on the site is safely suspended until it is removed as part of the final restoration per regulatory requirements.

www.pipelinenewsnorth.ca

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

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The Pipeline News North, FEBRUARY 18, 2021 5

Positive signs of increased investment welcome news In its first update to the 2021 Canadian Oilfield Services Activity Forecast, released today, the Petroleum Services Association of Canada (PSAC) has revised the number of wells drilled (rig released) across Canada for 2021 to 3,350 wells. This is an increase of 750 wells which would be a considered a modest amount based on historical activity, but is 29 percent over PSAC’s original 2021 Forecast released in October 2020. The updated forecast is based on a stronger commodity price outlook for the 2021 forecast with PSAC now expecting average crude oil prices 19 percent stronger at US$50.00/barrel (WTI), natural gas prices of $2.60 CDN/ mcf (AECO) and the Canadian dollar slightly stronger averaging $0.79USD. PSAC Interim President & CEO Elizabeth Aquin commented, “The strengthened commodity price outlook to-

day versus what was expected back in October is welcome news for our members who provide the service, supply and manufacturing for energy development. As expected global economic recovery gradually restores demand, it is helping to improve cash flows and balance sheets for our members’ oil and gas customers. Recent announcements by Canadian oil and gas companies of their 2021 investment levels show an additional $3.36 billion to $27.3 billion. Although these levels are still lower than the $35.2 billion invested in 2019 and modest compared to the $81 billion spent in 2014, it is an encouraging sign for the oilfield services (OFS) sector that PSAC represents. The downturn and pandemic have taken a heavy toll on the sector. This boost to investment in new activity is welcome news that the exploration and production (E&P) companies still see potential and opportunity in Canada.”

Survey finds no evidence of leaks The BC Oil and Gas Commission recently completed an aerial survey of 98 decommissioned gas wells between Hudson’s Hope and the Alberta border. Three wellsites had shown initial indications of methane, though subsequent site inspections found no evidence the wells were leaking. As part of the commission’s mandate to ensure the integrity of decommissioned wells, it has conducted aerial surveys for the past four years using a laser-based methane detector mounted on the underside of a helicopter. This survey method allows easy access to sites in difficult and inaccessible terrain, is fast, cost effective, and can detect very low concentrations of methane. The longterm goal of this program is to obtain a representative sampling of decommissioned wells throughout all areas of northeast B.C. Multiple passes over the decommissioned wellsites were made over two days in September 2020. The wells were randomly selected and included wells with a variety of abandonment plug types and wells with previous history of surface casing vent flows. Three wells were identified through the aerial survey as potentially having

emissions and commission inspection staff have completed on-the-ground inspections of those sites. No evidence of leaking wells was discovered. An additional round of inspections will be conducted in 2021 to confirm those findings. The aerial surveys in 2017 and 2018 were focused in the vicinity of Fort St. John and found about one per cent of decommissioned wells were emitting methane. The 2019 survey, completed east of Fort Nelson, found a higher frequency of emissions, at about three per cent. Results from this year’s investigation will inform inspection programs and help drive improvements to well decommissioning practices. The commission intends to continue the aerial inspection program annually, focusing on different areas throughout northeastern British Columbia. As a result of an agreement with the federal government on equivalency, amendments were made to the Drilling and Production Regulation (DPR) under the Oil and Gas Activities Act. These amendments specify leak detection and repair (LDAR) and other requirements which came into force on Jan. 1, 2020.

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6 The Pipeline News North, FEBRUARY 18, 2021

CAODC, MP Zimmer respond to Keystone decision Dillon Giancola Reporter/Photographer American President Joe Biden’s decision to revoke the Keystone XL pipeline’s presidential permit on January 20 has been a very unpopular one, both among the Canadian Association of Oilwell Drilling Contractors (CAODC) and the industry at large, and MP Bob Zimmer. CAODC CEO Mark Scholz was critical of the decision at the time, and asked for the federal government to respond. “Oil and gas is by far Canada’s largest export and most important job creator. With the stroke of a pen, President Biden eliminated thousands of jobs at a time when they are so desperately needed. The Association respectfully calls on the federal government to respond with the same urgency and commitment as it did when other Canadian strategic interests were impacted. We need the same ‘Team Canada’ that fought for workers in our manufacturing sector to fight for the hard-working women and men in our energy sector,” Scholz said in a press release. In the time since the original decision to revoke the permit was made, Scholz remains displeased with the response he’s seen from the federal government. “I’m sure there are discussions happening behind the scenes we may not be aware of, in terms of diplomatic channels used to discuss the issue, but I don’t think what we’ve seen publicly is sufficient enough to highlight the critical blow that the rejection of the Keystone XL pipeline has the potential to create in Canada,” Scholz said, adding that the pipeline is “extremely important to our country and our energy sector.” Zimmer said U.S. cancellation of Keystone is an example of a breakdown in relationships between countries. As for Canada, if an early federal election is called, Zimmer said energy independence, self-sufficiency, and a national energy corridor will be important matters for Canadians to consider. “We get it out in the west, we get it in the north, about how much energy matters to Canada, and us, especially when it

gets 10 degrees below zero. It’s a different understanding when we get closer to the middle of the country, and Ontario and Quebec,” Zimmer said. “We’ve learned this over the past couple of years, even our friends in Ontario and Quebec they would prefer to buy and fill up their vehicles with Canadian petroleum than from some other country, or places like Saudi Arabia that don’t have our human rights records nor our environmental standards.” Scholz said the environmental standards that Canada has set and the quality of labour rights here are some of the reasons this was a poor decision for the President to make. “The reality is that if the Biden administration were to truly live out what it preaches, when it comes to climate change, it’s critical that energy be produced in Canada. We are the best of the best when it comes to climate technologies to reduce emissions, and we do it in the most environmentally friendly way and with the best labour and human rights anywhere in the world. I’m a bit baffled by the decision,” Scholz said. In the short term, Scholz said the impact was felt in “thousands of workers from Canada and the United States receiving their pink slips at once due to the discontinuation of work, at a time when jobs are of critical of importance.” Scholz said it’s important for Canada to have exposure to the U.S. market if it is to satisfy the growing demands for petroleum products around the world. “This is of strategic importance of Canada, a net exporter of energy. We need as many ways as possible to have sufficient access to both international and American markets, or it will create investment concerns in Canadian energy resources,” he said. Zimmer said more work can be done in informing Canadians of the importance of crossCanada and international pipelines as well. “We already get most of our imports of energy from the United States and places across the Atlantic. We’ve seen shipments now start to occur

Healthy communities fund taking applications

Mark Nielsen Local Journalism Initiative The provincial government has earmarked $25 million over five years to help communities next to the Coastal GasLink pipeline and LNG Canada project improve access to such services such as child care and mental health. The Northern Healthy Communities Fund is open to 22 local governments and 27 First Nations along the route, along with non-profit organizations that provide services to those communities, the Ministry of Municipal Affairs said. Grants are available through two streams - one to increase capacity of services and one to fund capital projects. Those who apply through the capacity building stream can secure as much as $100,000 or 90 per cent of an eligible project budget. Projects that qualify for this funding include expanding hours for child care centres and hiring more employees for mental health services and supporting small business recruitment, retention and resiliency. The stream for capital projects provides up to $300,000 to a maximum of 80 per cent of the eligible project budget. Examples of projects that qualify include renovating a child care facility or a building that provides mental health services or renovating a multi-unit housing building or upgrades to an Indigenous cultural space. “We know that growth can require additional services to meet community needs and, through this new fund, we are working with local governments and First Nations to ensure people have the supports they need, such as child care, social housing, health and mental health support services and help for small business recruitment,” municipal affairs minister Josie Osborne said in a statement. Northern Development Trust is administering the program and the funds will be disbursed quarterly through a series of intakes over five years. The initial intake is open until Feb. 26. Applications received after the first intake date ends will be considered for future rounds of funding. Currently under construction, the $6.6-billion Coastal GasLink pipeline is to stretch 670 kilometres from the B.C. Peace to Kitimat where it is to supply natural gas for the $40-billion LNG Canada liquified natural gas export terminal, also under construction. Together, the two projects are to create up to 10,000 jobs during construction. The LNG Canada terminal is to generate 350 to 450 jobs upon completion, with the initial startup scheduled for mid-decade.

The Pipeline News North, FEBRUARY 18, 2021

Pipeline construction has Chetwynd busy Nelson Bennett nbennett@biv.com Chetwynd has one of those problems that, for a resource industry town vulnerable to the vagaries of commodity cycles, is kind of nice to have, but frustrating nonetheless. That’s largely due to two major pipeline construction projects underway in northeastern B.C. – the Coastal GasLink project and the Enbridge Sprucewood pipeline loop project. “It’s double occupancy now in our hotels,” Chetwynd Coun. Laura Weisgerber said today at a networking session with Coastal GasLink at the ongoing three-day, virtual BC Natural Resources forum. “We’re struggling right now because we have two new doctors coming to Chetwynd. We can’t find a place for them to live. It’s brutal. It’s a good problem to have, I guess.” Part of the problem is that Coastal GasLink does not have a work camp for the one section of pipe being built in that area, explained Kiel Giddens, public affairs manager for TC Energy Corp. (TSX:TRP), which is building the $6.6 billion pipeline. “Chetwynd is a particularly special case in that regard,” Giddens said. “We had some challenges with the lodge location that we did have initially planned.” He said the lodge had to be taken out of the plan due to some “environmental challenges” with the

proposed location. During the first wave of the COVID-19 pandemic, Northern B.C. was relatively unscathed, both in terms of the COVID-19 case count and the impact of lockdowns and restrictions on work and travel. Resource industries and big construction projects were deemed essential, and thousands of workers were employed for much of 2020 on projects like the Coastal GasLink project, the associated LNG Canada project in Kitimat and Site C dam new Fort St. John. But after COVID-19 cases began to creep up in the Northern Health region during the virus’s second wave, the public health office ordered large construction projects to reduce their workforces at the end of December. The Coastal GasLink project, one section of which has been plagued by protests by a group within the Wet’suwet’en First Nation, has suffered some additional setbacks due to the latest public health restrictions. Prior to a seasonal slowdown, the project employed roughly 4,000 people in 2020. The project managed to hit some major milestones in 2020. It is now about onethird complete. A seasonal slowdown in work was already underway when, in December, the public health office ordered large projects like Coastal GasLink to scale back their workforces. Currently, Coastal GasLink has 623 workers working on the project. The plan had been to have about 2.500 working on

the project by now. Provided the restrictions aren’t extended further, and subject to approval from the public health office, the company plans to start adding another 600 employees, with the ramp-up starting February 1, Giddens said. The one section that has not had as much progress is the segment that cuts through Wet’suwet’en territory – section seven. That section has been plagued by roadblocks set up by supporters of the hereditary chiefs who oppose the project. (Elected Wet’suwet’en chiefs and band councils support the project.) “Section seven is an area where we’re still at the earlier stages of clearing,” Giddens said. He said the company’s plan is to have pipeline construction underway in that section by this summer. The limits on workforce remobilization has meant that some work that has to be done within seasonal fish and wildlife windows will have to be delayed by one season. “Some of that will have to be into next year’s construction schedule,” Giddens said. “But there are ways we can adjust to actually complete the project in time for our 2023 inservice date. There’s still a fair bit of time between now and then to make up for that.” To date, the project has awarded $870 million in contract work to local and indigenous contractors.

8 The Pipeline News North, FEBRUARY 18, 2021

B.C. expected to eclipse Alberta as top natgas producer Nelson Bennett nbennett@biv.com The year just passed was one of the worst in decades for Canada’s oil and gas sector. The Petroleum Services Association of Canada reckons the 3,100 oil and gas wells that were estimated to have been drilled in Canada in 2020 was the lowest since 1972, thanks to the pandemic and low oil prices. It’s estimated employment in the oil and gas services sector fell 26% in 2020 (a decrease of about 20,000 jobs). But at least one company, Tourmaline Oil Corp., which is one of the biggest operators in B.C. Montney region, managed to keep busy in 2020. In B.C., the number of new natural gas wells drilled in 2020 was just slightly higher than in 2019, according to the BC Oil and Gas Commission. “We had no layoffs, and we were employing a lot of service sector employees back in the basin, as we call it, in the smaller towns like Dawson Creek and Fort St. John and Hinton and Edson,” Tourmaline CEO Mike Rose said Thursday in a session on the upstream oil and gas sector at the BC Natural Resources Forum. Enbridge Inc. was also busy in 2020 working on its Sprucewood pipeline loop project. Tourmaline Oil has three main operations – two in Alberta and one in B.C. in the Montney formation, which straddles the B.C.-Alberta border. Tourmaline has invested more than $2 billion in B.C. since 2013, and a total of $8 billion over the past 25 years. It currently has 276 wells and five processing plants in northeastern B.C.

bulk liquids terminal in Prince Rupert as well that would store and export propane, and other liquids. And, of course, all that “dry” gas that is the byproduct of natural gas liquids production in B.C. will also soon have a new market in Asia, in the form of liquefied natural gas. The $40 billion investment being made by LNG Canada is the largest private investment ever made in Canada to date. Because of the sheer size of the Montney play, and its ability to produce or supply such a diverse range of products (natural gas for domestic use, LNG and propane for export, and condensate for the oil sands) it is expected to continue to draw billions in investment in the coming years, even as investment falls in other oil and gas producing regions. A recent Canadian Energy Regulator (CER) forecast suggests that Canadian natural gas producers will continue to have good prospects, even in an increasingly carbon constrained world. In fact, the shift away from coal and oil is expected to increase the global demand for natural gas, since it is the lowercarbon energy source of choice for the firm power needed to backstop intermittent wind and solar power. The fundamentals for B.C. appear to be particularly compelling. Not only is the Montney region prolific, the natural gas and LNG produced in B.C. has a comparatively low carbon intensity, which may give it a premium. The CER used two scenarios in its modelling, including one in which Canada and other countries increased efforts to decarbonize and shift away from oil.

“Over the next five years, current plans are to invest $2.5 billion in the province of British Columbia,” Rose said. What makes the Montney region so attractive for oil and gas producers – apart from its sheer size -- is that it is rich in liquids, like condensate (used to dilute Alberta bitumen), propane and butane.

“Under both scenarios, B.C. continues to have strong natural gas production growth and will, in fact, become the largest natural gas producer in Canada by 2040,” said Gitane De Silva, the CER’s chief executive officer. Alberta is currently the largest natural gas producer in Canada. “Our projections see B.C. natural gas production being driven by liquids production, as well as LNG export assumptions,” De Silva said.

The abundance of those liquids has driven Alberta companies to invest billions in B.C. over the past decade. It is also driving investment on the West Coast. AltaGas Ltd. built a propane export terminal in Prince Rupert, and Royal Vopak is expected to soon make a final investment decision on a new

“So we see natural gas as extremely important to Canada’s economic energy recovery, and it will only increase in importance over the next 30 years.” Timothy Egan, president of the Canadian Gas Association, said his association has forwarded a list 70 natural gas related projects, worth a total of $12 bil-

lion, to the federal government that are “shovel-ready projects that could help trigger fast economic returns.” They include infrastructure projects (pipelines, gas processing, etc.), transportation, LNG projects, green retrofits, and renewable gas proposals. “Roughly half of them – or $ 6 billion worth – are in B.C.,” Egan said. Canadian producers say natural gas and LNG from B.C. should command a green premium, since it has a lower carbon intensity. For one thing, regulations in B.C. limit the use of flaring and venting, and it is implementing regulations to further reduce methane emissions from production by 45%. The B.C. government has been investing in new transmission lines to deliver power to northeastern B.C., which has allowed natural gas plants and pipelines that would otherwise burn natural gas to convert to clean hydro power. And companies like Shell Canada have taken an approach to building pipelines and drilling wells that also avoids emissions. “We pre-build our pipelines,” said Kim Code, vice president of upstream operations for Shell Canada. ”That reduces the flaring that would otherwise have happened.” Shell Canada also uses recycled water for its fracking operations, which is delivered from – and returned to – holding ponds via water pipelines, which reduces the use of trucks. “Because we also pre-build our water pipelines, that also means that, whereas … if we didn’t have pipelines built, we would have trucks on the road,” Code said. Pacific Canbriam Energy also uses recycled water for its fracking operations. “Our entire field is pipeline

connected, taking all the water trucks off the road,” said Donna Phillips, executive vice president of corporate development for Pacific Canbriam. “In addition to the water trucks, we have eliminated trucking of natural gas liquids through the construction of a natural gas liquids pipeline.” In 2020, 100% of the water used in Pacific Canbriam’s fracking operations was recycled, Phillips said. Between 2013 and 2018, Tourmaline has reduced the CO2 intensity of its operations by 46%, Rose said, and has plans for further reductions in both CO2 and methane from its operations over the next five years. “Our goal is a 25% further reduction over those next five years,” he said. One area the company is now focusing on is converting all of its drill rigs and completion operations from diesel to natural gas, which will achieve further reductions, both in emissions and costs. “It generates a meaningful CO2 reduction, as well as associated compounds that are created when you burn diesel, but also reduces our costs, after we pay out our capital investments,” Rose said. “So shareholders get a double win. They get a net cleaner methane molecule and they get a more profitable company.” He added that if the whole sector converted from diesel to natural gas, the emissions reductions would be “enormous.” Ultimately, he thinks B.C.’s natural gas sector has a bright future. “Any worldwide demand projection that you look at, even those with the most aggressive renewables build out -- natural gas is the largest component of the energy stack for several decades to come,” Rose said.

The Pipeline News North, FEBRUARY 18, 2021

Birchcliff targets Pouce Coupe Tom Summer Local Journalism Initiative tsummer@ahnfsj.ca Birchcliff Energy has announced its 2021 capital program, updating their five year plan. The company plans to spend $93 to $192 million in the Pouce Coupe area, with plans to drill 19 new wells this year, while bringing 25 production wells online. Two drilling rigs are currently active there. Birchcliff’s current production is a mix of roughly 76% natural gas and 24% liquids.

A gas plant is already in place at Pouce Coupe. Field compression will be installed south-west of Pouce Coupe, improving performance for existing wells. Jeff Tonken, President and Chief Executive Officer says the goal is to target roughly 80,000 barrels of oil a day in production, in order to reduce the company’s debts and free up $360 million in funds in 2021. “Our priorities over the next five years are to maximize free funds flow generation and strengthen our balance sheet,” said Tonken. “We believe this strategy will pro-

vide us with the most optionality to maximize long-term shareholder returns and take advantage of future opportunities.” The company hopes to generate $960 million over the next five years in free funds flow, with a focus on infrastructure investment. Over the border in Gordondale, Birchcliff plans to drill eight wells in 2021, which will provide sour gas to AltaGas’s processing facility. Only one active rig is currently drilling there, with $38 to $41 million being spent in infrastructure upgrades.

Land sales to resume Matt Preprost editor@ahnfsj.ca B.C. will resume its monthly sale of Crown petroleum and natural gas rights starting in the spring. Sales were suspended in March at the start of the pandemic, and are scheduled to resume in April, according to the Ministry of Energy, Mines and Low Carbon Innovation. Dispositions for the right to explore and develop Crown petro-

leum and natural gas resources in B.C. Columbia will be held on the following dates: April 14, May 12, June 16, July 14, Aug. 11, Sept. 8, Oct. 6, Nov. 10, Dec. 8. Alberta resumed its land sales in November after a seven-month hiatus, while Saskatchewan and Manitoba continued to hold auctions throughout the year. B.C. held just two land sales in 2020, bringing in $46,000 in January, and $10,000 in February.

Construction at the LNG Canada terminal in Kitimat, Jan. 29, 2021. SUMMeR

Gas plants seek summer students Tom Summer Local Journalism Initiative tsummer@ahnfsj.ca AltaGas says it is looking to hire four power engineering students this summer to help with their Townsend and North Pine facilities. The students will job shadow with senior level operators at the facilities, gaining hands on experience in the oil and gas industry. Company officials say they’re excited to offer these opportunities. “We are committed to hiring locally as

part of our long-term operations plan, and we encourage power engineering students from the communities to apply for the positions,” spokesperson Lori Maclean said in a statement. Successful hires can expect to have a month of on-the-job training, including safety training. The positions are shift work, with campbased roles at Townsend. At North Pine, transportation to the facility is provided from Fort St. John. The Townsend facility is a sweet natural gas processing plant, while North Pine processes natural gas liquids. Natural gas from

Townsend is sent to North Pine for further processing, producing propane, butane, and condensate. Propane is send by rail car to Prince Rupert, to an export terminal which offers direct access to the international market AltaGas says student hires are an investment, as hiring and training operators can take up to five years. “It’s a win-win. In the past, students from the summer program have been hired on as full-time employees, and we hope this success can continue,” said Maclean. Interested students can check out the careers page on the company’s website.

10 The Pipeline News North, FEBRUARY 18, 2021

Info on the CAPP-EPAC scholarship endowment fund Canadian Association of Petroleum Producers (CAPP) and The Explorers and Producers Association of Canada (EPAC) are both pleased to make available scholarship funding to students attending qualifying Alberta post – secondary institutions in qualifying fields of study. History of the CAPP-EPAC Scholarship Fund Endowment In 1994 a court ordered settlement regarding pipeline tolls in the Province of Alberta between Nova Gas Trunk Lines Limited (NGTL) and Alberta oil and gas production companies created a $4.0 million endowment fund. Alberta’s oil and gas producers agreed this endowment should be used to fund scholarships for students enrolled in fields of study related to the oil and gas industry in Alberta post-secondary institutions. The endowment was entrusted to the Calgary Foundation in 1995 to administer the funds and distribute the annual income earned on the endowment as scholarship funding to eight post-secondary institutions in Alberta. In 1999 a second sum of $1.25 million was paid to Alberta oil and gas producers as a result of a merger between NGTL and TransCanada Pipelines. This capital fund was invested and administered by CAPP on behalf of CAPP and The Explorers and Producers Association of Canada (at that time SEPAC) for the purpose of funding scholarships at three additional Alberta postsecondary institutions plus an annual donation to STARS (air ambulance service). Subsequently, STARS was removed from the annual funding and two more post-secondary institutions were added. In 2011 the first NGTL endowment fund

was transferred back from the Calgary Foundation and combined with the second endowment to create the CAPP-EPAC Scholarship Fund. The investments in the CAPP-EPAC Scholarship Fund are managed on behalf of the two Associations by a firm of investment professionals retained by CAPP. Since 1995 approximately 2,000 scholarships have been awarded to Alberta students approaching $7.0 million in total distributions. The endowments have been

invested prudently and the Scholarship Fund capital has grown to more than $ 7.0 million notwithstanding the scholarships awarded since inception. Alberta oil and gas producers can be proud that this legacy has assisted so many young Albertans to secure a brighter future for themselves, and the Province of Alberta. Please contact your institution of choice directly for information on how to apply.

BC Oil and Gas Research and Innovation Society (BC OGRIS) The BC Oil and Gas Research and Innovation Society (BC OGRIS) is a stand-alone organization which focuses on addressing knowledge gaps to inform environmental, operational and health and safety policy and industry practices related to oil and gas exploration and development in BC. Research priorities are defined from knowledge gaps identified in conjunction with our Members, Board of Directors and stakeholders. Research findings from BC OGRIS funded projects are shared with organizations in the oil and gas industry as well as regulators and government agencies, indigenous peoples and other stakeholders. BC OGRIS is a BC based not-for-profit society with membership from the Oil and Gas Commission (Commission), Canadian Association of Petroleum Producers (CAPP), and The Explorers and Producers Association of Canada (EPAC). Vision To continuously improve the understanding and management of the impacts of oil and gas activities in BC. Mission The BC Oil and Gas Research and Innovation Society (BC OGRIS) supports practical studies and initiatives that develop credible and relevant information to address knowledge gaps to inform environmental, operational and health and safety practices related to oil and gas exploration and development in BC. Mandate BC OGRIS facilitates the delivery of valuable information to its stakeholders through:

1. Receiving investments—for use in the collection of science based information to respond to public interest matters and best practices for industry. 2. Funding research and initiatives—focused on the high priority environmental, technical and social aspects of BC’s oil and gas sector. Research or initiatives can be carried out solely by BC OGRIS and/or in conjunction with consortiums comprising several organizations that support and coordinate projects covering multiple years. Strategic partnerships with research organizations will be used to provide the capacity to respond to the requirements and expectations of its members—including attracting good research, leveraging our investments and avoiding duplication of research activity. 3. Providing governance and quality assurance—to ensure accountability for delivery and applicability of findings or undertakings and the dissemination of relevant findings to industry, regulators, government agencies, Indigenous peoples and stakeholders.

The Pipeline News North, FEBRUARY 18, 2021

Society of Petroleum Engineers names 2020 Canadian award winners SPE awards recognize members for their technical contributions, professional excellence, career achievement and service to colleagues. This year the Canada Region would like to recognize several well-deserving members who have contributed exceptional service and leadership within SPE, as well as making significant professional contributions within their technical disciplines. Completions Optimization and Technology - Yanguang Yuan, BitCan G&E Inc Drilling Engineering - Ian Frigaard, University of British Colombia Management and Information - Laurier Schramm, Saskatchewan Research Council Production and Operations William Aitken, Baker Hughes Canada Projects, Facilities and Construction - Greg Owen, GLJ Petroleum Consultants Ltd

Reservoir Description and Dynamics - Brian Weatherill, RPS Energy Sustainability and Stewardship in the Oil and Gas Industry Award - Steven Bryant, University of Clagary Distinguished Achievement Award for Petroleum Engineering Faculty - Hua Zhou Li, University of Alberta Regional Public Service - Victoria Bartlett, Suncor Energy Inc. Young Member Outstanding Service - Kim Nguyen, Cona Resources Ltd. Young Member Outstanding Service - Kent Qin, Huskey Energy Inc, Regional Service - Caralyn Bennett, GLJ Petroleum Consultants Ltd Regional Service - Patrick Miller, PETRONAS Canada Regional Service - Attila Szabo, Sproule Regional Service - Ali Esmail, Ovintiv Canada

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