Pipeline News North: September 2015

Election Report: Federal leaders spar over Canada’s energy future SEPTEMBER / OCTOBER 2015

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As summer sets on northeastern B.C., Progress looks to reduce its traffic on Highway 97, while ATCO looks to connect Progress operations into the BC Hydro grid. Meanwhile, Fort St. John looks to a Manitoba city for a lesson in lasting labour recruitment and retention, while Spectra looks to add capacity to its pipeline network. Elsewhere, the BC EAO gives Kitimat LNG the thumbs up, and exploration begins to find a potential new site for Pacific NorthWest LNG. And, is the future of hydraulic fracturing water-free?

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Safety Tips for Back To School Getting to and on the school bus: 1. Arrive at the bus stop at least five minutes before the scheduled pick up time. Children should never run after the school bus to try to catch it. If you miss the bus, go back home or if you are at school, report to a teacher.

2. Stay on the sidewalk, well away from the roadway and stay back until the bus has come to a full stop and the door opens.

3. If your child needs to cross the street, teach them to look to the left, then to the right, and to the left once more before crossing the street.

4. Use the handrail when boarding or exiting the bus.

Riding on the school bus: 5. Take a seat as quickly as possible, put belongings under the seat and stay seated.

6. Never stick anything out of the window, including arms or heads.

7. Save food for snack time at school or until you get home.

8. Wait until the school bus comes to a complete stop before getting off.

After riding on the school bus: 9. When getting off the bus: take two large steps away from bus. If you must walk in front of the bus, walk ahead at least three metres (10 giant steps).

10. The driver must be able to see you and will give a signal when it is safe to cross. Cross in a single file.

11. If a child drops something near or under the school bus, they should never attempt to retrieve it without the driver’s permission.

Travel by Car Parents and guardians must respect their child’s school safety measures for dropping off and picking up their children

at school. Every effort must be made to avoid collision and injury by refraining to create hazardous situations of traffic congestion and unsafe driving practices within the school zone. Respect posted speed limits, and designated drop-off and pick-up areas.

Travel by Bicycle To ride a bicycle to and from school, children must be mature enough (minimum 9 – 12 years old), and must have enough experience. The rider should be able to scan ahead and check behind without swerving.

To ensure safe cycling, young cyclists must: Wear a properly-fitted helmet, and have clothes that are suited for cycling (e.g. their pants tucked in).

Have their bikes fitted properly and in good working order. The bike should have a regular maintenance check-up and should have a bell. It is also a good idea to have a safety flag.

Know and obey all traffic rules, signs and signals. They must signal turns and stops. Ride in a straight line in the same direction as traffic and stop at every stop sign.

Be predictable to other road users by riding with the traffic usually on the right hand side of the roadway.

Parents and guardians must review road safety rules with their children and the importance of not accepting rides or any invitations from strangers. It is best to walk with a buddy and keep focused on getting straight home.

To keep safe on roads, children pedestrians must: Find a safe and direct route to school with the help of their parents.

Hazards should be identified (train tracks, busy intersections, etc.) and a designated route with safety rules should be established.

Stay on sidewalks whenever possible. If there is no sidewalk, use the left side of the road facing traffic.

Cross streets only at crosswalks and learn to look to the left, the right and then left again before proceeding, even at intersections with pedestrian walk signs.

Wait until traffic comes to a stop before crossing. Make sure drivers see you before you cross.

Prevention is the key to safety. With education and awareness, all children should be able to get safely to school and home again. Take the time to share these valuable rules and tips with your children.

Never ride in the dark. If an older child must ride in the dark, make sure that reflective clothing and night-accessories (e.g. reflectors and lights) are used.

Walking to school Many children use roadways to make their way to and from school.

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Fort St. John, B.C.

250.785.7907 Toll Free: 1-888-830-9909

Dealer for WESTERN STAR • DOEPKER • TREMCAR • PACESETTER SALES • PARTS • SERVICE Contact: Contact: Wayne Doll • Sales Consultant Contact:Ryan DarcySaunders Hofstrand• •Sales SalesConsultant Consultant Cell: 250.261.9560 Cell:778.256.2117 250.264.7203 Cell: www.jamesws.com

PNN

NUMBERS

The following figures were taken from the stories in this issue of Pipeline News North.

2,700: Number of vehicle trips a year that could be taken off Highway 97.

Story on Page 6.

4.5: The magnitude of an earthquake that rumbled near Wonowon Aug. 17. Story on Page 12.

6,790: The number of vehicles that travel daily on Highway 97 through Chetwynd.

Story on Page 22.

5.5%: The unemployment rate for northeast B.C. in August. Story on Page 8.

$210 million: Cost of Plateau’s proposed northeast B.C. expansion project.

Story on Page 16.

240 million: Cubic feet of natural gas that will move through Spectra’s BC Mainline once upgrades are complete.

Story on Page 17.

57: The number of industrial projects in Fort St. John’s backyard.

Story on Page 9.

77,000: The estimated population of northeast B.C. in 2014. Story on Page 9.

140: Length in kilometres of proposed transmission line to connect Progress Energy to the Bennett Dam. Story on Page 20.

288,500: Number of Canadians directly employed in the country’s energy sector.

Story on Page 14.

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SEPTEMBER 11, 2015

Election 2015 5 Update

Taking workers 6 off the road

pnn 08

NEBC unemployment 8 drops back down

22 Highway improvements for Chetwynd

FSJ skilled immigrant 9 pilot project

20

Labour lessons 10 from Manitoba Earthquake rumbles 12 the North Peace Plateau moves ahead 16 on expansion project

Grande Prairie’s 18 population boom Kitimat LNG 19 making progress

Look for PNN on FB: pipelinenewsnorth

24 Steelhead LNG in pre-construction agreement 25 Waterless fracking?

26 Horizon North locks up contracts 26 Layoffs loom at Penn West, Conoco

Spectra adds capacity 17 to its system

21 INPEX begins exploration 21 Montney needs infrastructure

STEP-in into 8 new digs

20 ATCO looks to connect Progress to the grid

22

28 A new home for Pacific NorthWest?

29 First Nations at odds over LNG 31 Have you saved enough to retire?

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.

SEPTEMBER 11, 2015

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election 2015

#oilsands

Federal leaders spar over canada’s energy future Jonny Wakefield

Pipeline News North

Is the Canadian oil patch better off under Stephen Harper? With just under a month to go in the 2015 federal election, the Conservative leader is saying he’s still the best choice to lead the industry through dire times, while those vying for his job criticize his handling of both industry and the environment.

The NDP and Liberals claim they would be better managers when it comes to the oil and gas sector, while the Greens aren’t particularly concerned about the industry’s well-being.

According to Natural Resources Canada, the

energy sector directly employs 288,500 Canadians, while another 613,500 work in related fields.

All told, the industry employs around five per cent of the Canadian workforce, and federal policies have a big impact on whether projects are approved.

We looked at the party’s policies and what they said during last month’s Maclean’s debate to see how different governments could impact the energy sector. reporter@dcdn.ca

‘Our energy exports have increased’: Harper Maclean’s moderator Paul Wells put the Conservative leader in the hot seat on the energy file early in the first debate of the 2015 campaign.

“You want Canada to be an energy superpower, but major export projects to the United States and China have stalled on your watch,” the journalist told the prime minister.

“What have you achieved in energy exports that beats the record of your predecessors? What do you have to show on this file for a decade’s effort?”

“Well, in fact, our energy exports have increased,” Harper replied. “Not just our—until recently, obviously— not just our oil and gas exports to the United States, but we’ve also seen increasing uranium exports and coal exports and others to Asia.”

That claim is mostly born out by the numbers.

In all, crude and refined petroleum products, natural gas, coal, uranium and electricity exports totalled $128 billion in 2013, with 92 per cent of that bound for U.S. markets. Exports rose steadily under Harper until the oil price collapse, which saw oil fall behind auto parts as Canada’s top export for the first time since 2007.

In 2006, the country exported around 25 billion litres of refined petroleum products. By 2009, that number had risen to 29 billion litres, according to Natural Resources Canada’s Energy Markets fact book. Crude oil exports have also risen steadily, from under two million barrels a day to over 2.5 million in 2013.

Capital expenditures by both oil and gas and other energy companies grew between 2006 and 2008, taking a hit in 2009 after the global financial crisis and resuming their upward trend between 2010 and 2013.

The tale is different for natural gas. Exports have fallen from

highs in 2007, when Canada exported just shy of 10 billion cubic feet per day, as shale gas production in the U.S. increases.

In 2013, Canada exported 7.8 billion cubic feet per day. Dropping U.S. prices have spurred the B.C. government to open the doors to a liquefied natural gas export industry, which would, in theory, allow producers to sell to more lucrative Asian markets.

To help those projects along, the federal government under Harper introduced an accelerated capital cost allowance for liquefied natural gas projects this February.

The policy will allow proponents to “more quickly recover the cost of their capital investment” on “equipment that is part of a facility that liquefies natural gas…cooling equipment, compressors, pumps, storage tanks, and ancillary equipment, pipelines used exclusively to transport liquefied natural gas from the facility and related structures,” according to a release.

The plan will reduce federal corporate tax revenues by around $50 million over five years.

While the province signed a project development agreement with Petronas this summer, none of the 20 proponents seeking to build export projects on the west coast have made final investment decisions.

As for regulating the oil and gas sector’s greenhouse gas emissions, Harper said the United States and Mexico are dragging their feet.

“We need integrated North American regulations,” he said.

“I’ve made that proposal to our partners, both the United States and Mexico. They haven’t yet accepted that, but we are ready to go, and we’re continuing to try and engage.”

story continued on page 14

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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@ ahnfsj.ca

taking workers

JONNY WAKEFIELD Photo

off the road

Matt PREPROST Managing Editor 250-785-5631 C: 250-271-0724 editor@ ahnfsj.ca

Upgrades to Sikanni Chief airstrip would improve safety on one of B.C.’s deadliest highways Jonny Wakefield Ryan Wallace ADVERTISING MANAGER 250-785-5631 c: 250-261-1143 rwallace@ ahnfsj.ca

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

Pipeline News North

Fly-in shift workers on Progress Energy drilling operations near Pink Mountain could soon go from plane to camp without setting foot in Fort St. John.

The Petronas subsidiary is proposing upgrades to the Sikanni Chief airstrip—which services mostly bush planes—that would allow larger aircraft to take off and land.

Progress spokesperson Stacie Dley wrote in an email that the upgrades would allow the company “to fly our crews in and out of our operations in the area.”

Progress is currently one of the most active upstream oil and gas companies operating in

northeast B.C., as it ramps up to supply gas to the proposed Pacific NorthWest LNG plant on the west coast. In addition to airstrip upgrades, the company is considering an adjacent camp that could house 500 people. If the projects move forward, work would begin in 2017.

Crews on rotational schedules currently fly on charter planes into Fort St. John and “immediately board a van” for the drive up the highway to worker camps near Mile 148, Dley said. Flying in workers would take vehicles off one of the province’s deadliest highways.

“The airstrip is in close proximity to our operations, eliminating significant travel time for workers, as well as reducing traffic on the Alaska Highway,” Dley wrote.

Watch for the 2015-2016 edition of the

Oilfield Map

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Progress Energy plans to upgrade the Sikanni Chief airstrip near Mile 148 of the Alaska Highway.

Highway 97 between Fort St. John and Fort Nelson saw 30 fatal crashes between 2004 and 2013, making it the fourth deadliest road in the province.

For some, the potential for less traffic is good news.

Cathy Clarke, who lives on a farm at Mile 135 of the Alaska Highway, said she and her husband Brian would “welcome” fewer trucks on the road.

Highway 97 between Fort St. John and Fort Nelson saw 30 fatal crashes between 2004 and 2013, making it the fourth deadliest road in the province.

Dley said using the airport could eliminate 2,700 vehicle trips a year.

In an interview at home last fall, Brian Clarke recalled spending a half hour trying to turn onto the 135 Road, only to give up when faced with a steady stream of truck traffic.

He estimated that at the time nearly 2,500 to 3,500 people lived in worker camps in the area. The permanent

population of Pink Mountain is around 100.

But for some, fewer trucks on the road means slower business.

Fort St. John & District Chamber of Commerce president Tony Zabinsky said the ability to fly in to Pink Mountain could mean workers spend less money in Fort St. John.

“We’ve seen that before up in Fort Nelson, where the people were flown in directly to Fort Nelson, got on a bus and were shipped to the camps,” he said.

“None of that money got to stay in the community.”

Progress would continue to use the Fort St. John airport and “local hospitality services” for corporate travel, Dley said. reporter@dcdn.ca

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NEBC unemployment rate drops to 5.5% After five straight months of rising unemployment, region now holds the second lowest unemployment rate in B.C.

Mike Carter

Pipeline News North

The unemployment rate in Northeast B.C. dipped back down to 5.5 per cent for the month of August, according to the latest data from BC Stats released Friday.

This reverses a five-month trend of rising unemployment in the region, which has been going up steadily since March from 4.2 per cent in that month to 6.4 per cent in July.

Before that, the rate was so low that it could not be released due to what the agency called its “confidentiality threshold” — the point at which the number of unemployed is fewer that 1,500 people.

BC Stats doesn’t release information on unemployed persons when the rate is that low to prevent “direct or residual disclosure of identifiable data,” according to its website.

Unemployment in the Northeast was at its highest in April 2014, when the rate was 8.4 per cent.

The North Coast and Nechako region also saw a slight dip in the most recent Labour Force Survey, dropping from 8.2 per cent in July to 8.0 per cent in August.

For the second month in a row, the Kootenay region has the highest rate of unemployment in the province, posting a 9.1 per cent in July, rising to 9.4 per cent in August.

The Cariboo region also saw a slight decline from 7.9 per cent to 7.8 per cent.

At 5.5 percent, the Northeast holds the second lowest unemployment rate in the province, next to the Thompson-Okanagan region, which measured in at 5.1 per cent.

Overall, the province’s seasonally adjusted unemployment rate remained steady at 6.0 per cent, one full percentage point below the national unemployment rate of 7.0 per cent, which is up 0.2 per cent from July.

Saskatchewan still has the lowest unemployment rate in the nation at 4.7 per cent, seasonally adjusted.

Newfoundland had the highest rate at 11.5 per cent.

Canada added 12,000 jobs in August, a sign that the country's economy is beginning to pick up following a sluggish start to the year. dcreporter@dcdn.ca

A flag raising ceremony was held to celebrate the opening of a new STEP Energy Services location in Fort St. John Aug. 18. STEP CEO Regan Davis said the new building was a $5 million investment in the community, and will house STEP's 20 or so Fort St. John workers. (Left to right) STEP Nitrogen Manager Jason Lakusta, Chief Operating Officer Steve Glanville, and Davis help raise the flags.

STEP is a well completion and well servicing company, and has recently expanded into fracking services.

WILLIAM STODALKA Photo

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Immigration influx With more than 50 industrial projects in its backyard, Fort St. John turns its gaze overseas to see how skilled immigrants can soften the local labour crunch William Stodalka

Pipeline News North

A potential program to bring in skilled workers from outside of Canada aims to keep them in the area permanently, not temporarily, the City of Fort St. John says.

The city released preliminary details of its Immigration Pilot Project last week, as it braces for a massive influx of industrial development slated for the North Peace.

“It is a program to address a demonstrated need for specific skilled workers as our community prepares for historically high economic growth,” Mayor Lori Ackerman said in a release.

“This project is not the Temporary Foreign Worker Program.”

Under the proposed program, the city wants to attract permanent residents to the region with specific skills “as identified in consultation with business, industry, and the community.”

“There are specific skilled workers that are in high demand in our region and this project is proposed to assist in the recruitment and, just as importantly, retention of those workers and their families,” stated Moira Green, the city’s director of strategic services.

Details of the program are still few, as the city says it’s still in the research and drafting stage of the project, which would require city council approval.

It’s still unclear if this work will be done in conjunction with efforts to bring in workers from elsewhere or B.C. in Canada, who will pay for the project, and what types of incentives will be used for this program.

It’s also unclear if the consultation about these workers has been done, or will be done in the future.

It’s also unclear if this would be done for pri-

In August, Fort St. John Mayor Lori Ackerman announced the city was looking at developing a pilot project to bring in permanent, skilled immigrants to the city to help meet the region’s labour challenges. She spoke briefly about the program at an Aug. 18 grand opening of the new STEP Energy Services offices in the city. vate business or the public sector, or both, and if workers would be paid the prevailing rates.

The Alaska Highway News posed these questions, and others, to the city.

“The proposal for the project is just being researched now so none of those details have been

determined,” Julie Rogers, the city’s communications co-ordinator said.

The city met with the B.C Ministry of Jobs, Tourism, and Skills Training about the project in July. Last week, Mayor Lori Ackerman told various businesses about the initiative at the opening of STEP Energy Services new office Aug. 18, where multiple energy service companies were gathered to celebrate.

On social media, the city has stated the project would ensure that jobs are advertised and filled locally and from Canada first.

The program would fall under the Provincial Nominee Program to address what labour shortages remain, and focus on the “attraction, settlement, retention and integration of immigrant families to Fort St. John,” the city said in a release.

In its release, the city points to northeastern B.C.’s low immigration and unemployment rates as a need for the program.

The city is bracing for 57 major industrial projects - Site C and LNG projects among them – in the region that the city says will need more than 5,000 permanent resident workers and up to 18,000 provisional workers.

However, the city says the regional economic development office has tracked some $200 million in investments that have not moved forward because of a skilled worker shortage. This figure could not be immediately verified.

In 2014, the northeastern region had an estimated population of just over 72,000 people, according to B.C. Stats. In 2013-14, there were just 127 people from outside of Canada to come into the area. B.C.’s net international immigration for the year was 35,639.

The city also noted northeastern B.C.’s low unemployment rate. reporter@ahnfsj.ca

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SEPTEMBER 11, 2015

Lessons from Morden

MORDENMB.COM photo

As Fort St. John looks to bring in skilled immigrants, a small Manitoba city has plenty of experience to draw on William Stodalka

Pipeline News North

If you live in Fort St. John, you may not know much about the city of Morden.

Located nearly 2,000 kilometres away, and just over 100 kilometres south of Winnipeg, the Manitoban city is just over a third of the size of Fort St. John at 7,812 residents. Morden only became a city in 2012.

But one program by Morden municipal staff to bring in skilled immigrant workers to settle in the community permanently may offer lessons for Fort St. John, where city staff are drafting a pilot project of their own that could turn out to be very similar.

Morden is a manufacturing town. It makes things, and business does not seem to be slowing down, according to

Shelly Voth

one local businessman.

"If some part's having a boom, we don't get the boom, but we're chugging along nicely," said Marvin Dueck.

"If the rest of Canada has a bust, we don't have a bust."

Dueck’s company, Nexus Energy Products, is a geo-

thermal distributor and installation contractor. His and other industrial businesses in Morden have led to a demand for more residential and commercial properties, which contributed to double-digit percentage population growth between 2006 and 2011.

However, even if without all this growth, there was still a need for workers — and that's where Morden decided to step in.

In 2012, the city launched a pilot project to bring in skilled workers from outside Canada, according to Morden's current immigration co-ordinator, Shelly Voth.

Voth said the city’s unemployment was lower than the rest of the province, making it difficult to find workers.

“If the rest of Canada has a bust, we don’t have a bust. ”

SEPTEMBER 11, 2015

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The system’s worked good in Manitoba where they brought in people who have money, who have families, and bring in certifications to the town.

-ART JARVIS

”

Under Morden’s program, the city takes applications from people with skills the city needs in various industries, and interviews them via Skype. Applicants must take a voluntary tour of the city paid out of his or her own pocket, and local volunteers examine their resumes and background to determine if they would be a good fit for the community and local business.

During the visit, applicants research Morden and prepare for an interview with a provincial immigration officer. If the officer deems him or her a good fit for Morden, they will be given an invitation to apply for the Manitoba Provincial Nominee Program, which allows them to apply for permanent resident visas.

Morden aims to recruit 50 families a year through the program, and have so far recruited 70 families since the program began. Still, the city is cutting out many potential immigrants — only five per cent make it through the process, said Voth.

Dueck's geothermal business has benefitted from the program. He was able to interview workers before hiring them.

“Basically all that we did was we told the group there that we were looking for a specific type of individual,” he said. “When they

Moira Green had an application come through they sent it on to us.”

While Dueck admits some of these workers had to be re-trained to Canadian standards, he calls the program a success.

Morden appears to have accepted these new immigrants as well, and there was “minimal” blowback to the program from the community at large.

“You're always going to have those people who think you can fill the job locally, but that was the problem: There was nobody willing to work at these positions, or qualified,” Dueck said.

Back in Fort St. John, Art Jarvis, executive director of Energy Services B.C., is a member of a committee looking at a potential pilot project to bring in skilled workers to Fort St. John. The committee is taking a close look at

Morden as a model, Jarvis said.

“The system’s worked good in Manitoba where they brought in people who have money, who have families, and bring in certifications to the town,” he said.

“And a good percentage of their spouses also developed entrepreneurial skill and developed businesses in that community.”

Moira Green, Fort St. John's director of strategic services, said the program city staff are drafting for council to vote on will use the "same template" as the Morden program.

"They have done very well with their project," she said, citing their high retention of families.

Green also said part of the reason for this success is a community committee that determines what type of people are invited into the community.

However, what's good for Morden may not work for Fort St. John, according to Voth.

"We do get interest from other towns or cities to copy our program, but our program was based on the Manitoba provincial nominee program," said Voth.

"For a town or city outside to try and copy our program would be a bigger political issue." reporter@ahnfsj.ca

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‘i felt the whole truck shake’ Aug. 17 earthquake rumbles throughout the North Peace Jonny Wakefield

Pipeline News North

Kaila Walton was sitting in her truck on a work site north of Fort St. John when she felt the ground begin to shake.

“Imagine standing on a piece of plywood and somebody is standing on the other side, jumping on it,” said Walton, a field medic, describing the 4.5 magnitude quake that rocked parts of northeast B.C. on Aug. 17. “Everybody here felt it. I was sitting in my medic truck and I felt the whole thing shake. Some light towers were shaking.”

For a few seconds, the tremor shook Walton and the rest of her crew on a roadwork site at Mile 131 on the Alaska Highway.

The quake struck around 1:15 p.m. northwest of Wonowon. Earthquakes Canada seismologist Timi Mulder said it’s “unlikely” any property was damaged in the quake, but said the agency was still investigating. No injuries were reported.

The tremor was felt as far away as Charlie Lake, where resident Abraham Zamzun said he felt his home shake for nearly 30 seconds.

“I could feel my whole house move,” said Zamzun, who lives on Bluejay Road, near Mile 54 off Highway 29. He said it’s the first earthquake he’s experienced in the 15 years he’s lived there.

The quake was significant, Mulder said.

“People would feel like a truck drove into the building if you’re in about 100 kilometres (of the quake), maybe a bit more,” she said.

“If you’re a little further away, you might feel a little bit more swaying.”

The Oil and Gas Commission later said it’s “likely” the 4.5 magnitude earthquake north of Fort St. John was caused by hydraulic fracturing in the area Initially rated at 4.4 magnitude, OGC communications manager Alan Clay said the quake finally registered a 4.5. The company stopped fracking as soon as the quake occurred.

“It’s still under investigation, but it was likely induced by hydraulic fracturing,” Clay said.

That makes the shake among the strongest fracking-induced seismic events recorded in the Montney Shale, the 29,850-square-kilometre formation that stretches from the Alberta border to the Rocky Mountains.

Between August 2013 and November 2014, 231 seismic events in the Montney were tied to oil and gas activity, ranging between 1.0 to 4.4 in magnitude. Of those, eleven could be felt at the surface. The vast majority fell between 1.0 and 2.9, while only two fracking-induced events

greater than 3.5 magnitude have been recorded in the Upper Montney, according to a 2014 OGC report.

None of the tremors have resulted in injuries, property damage or well leaks, the report states.

In all, less than one per cent of the 7,500 fracking operations carried out in that time caused earthquakes.

Most “induced seismicity” events happen when fluid is injected into underground faults at high pressures to release gas.

Another 16 per cent of the 231 tremors came during wastewater disposal, when fluid from the fracking process is injected into unused wells.

B.C. requires oil companies to stop fracking after seismic events. The company will reduce pumping pressures in the future, Clay wrote in an email.

The epicenter of Monday’s quake was recorded northwest of Wonowon.

People from around the North Peace reported feeling the quake to Alaska Highway News.

A man living in a worker camp at Mile 131 of the Alaska Highway said he felt the quake and several aftershocks around 1 p.m. Residents of 102 Street in Fort St. John also reported feeling “the room kind of rocking, but it was very subtly.”

SEPTEMBER 11, 2015

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SEPTEMBER 11, 2015

election 2015

continued from page 6

‘Not only has he not helped our environment, be he’s actually slowed our economy’: Trudeau The Liberal leader has taken to saying that the choice between protecting the environment and growing the economy is a false one.

“Canada will always have an element of natural resources in our economy, but the job of the Prime Minister is to get those resources to market,” Justin Trudeau said during the Maclean’s debate. “And in the 21st century that means being smart and responsible about the environment. “(Harper) cannot get our exports to market because there is no public trust anymore,” he said. “People don’t trust this government to actually look out for the long-term interest.

He hasn’t convinced communities of the rightness of his…pipelines, of the proposals he supports.”

Trudeau says a Liberal government would “restore credibility” in federal environmental assessments, by “modernizing and rebuilding trust” in the National Energy Board, which some say has become too close to industry.

A reformed environmental assessment process would also “restore robust oversight…include an analysis of upstream impacts and greenhouse gas emissions” and reaffirm the federal government’s duty to consult First Nations people, according to

the Liberal platform.

Also in the platform: an ambitious infrastructure spending plan that might have ancillary benefits for industry. Trudeau says a Liberal government would run a series of deficits to fund $125 billion in infrastructure spending over 10 years. The program would be available only for public transit, social and green infrastructure. Some eligible projects include contaminated site cleanup, “climate resilient” infrastructure upgrades and “reinforcement of infrastructure to confront melting permafrost in our North.”

Another $200 million would go towards creating “sector-specific strategies” that “support innovation and clean technologies in forestry, fisheries, mining, energy and agricultural sectors.”

During the debate, Harper accused the Liberals of opposing “every single” oil and gas project on the docket, including “the government’s incentives to the liquefied natural gas (industry) that is supported not only by the Province of British Columbia and industry, but by Aboriginal communities and a broad cross-section of the British Columbia population.”

“We have done nothing of the sort,” Trudeau replied.

The energy sector directly employs 288,500 Canadians, while another 613,500 work in related fields.

All told, the industry employs around five per cent of the Canadian workforce, and federal policies have a big impact on whether projects are approved.

SEPTEMBER 11, 2015

PIPELINE NEWS NORTH •

election 2015 ‘Mr. Harper’s gotten the balance wrong’: Mulcair On the natural resources file, the NDP and the Liberals seem to be reading from parts of the same playbook.

At the debate, NDP leader Tom Mulcair accused Harper of “getting the balance wrong” on natural resources. Both the Liberals and the NDP have promised to overhaul environmental review processes they claim have lost credibility under the Conservatives.

What that would look like under an NDP government is not clear.

Mulcair cited “overarching sustainable development legislation” brought in during his tenure as Quebec environment minister.

That legislation included polluter pay provisions; how these would differ from sector-specific greenhouse gas regulations remains to be seen.

Like its Alberta counterpart, the NDP has been skeptical of crude oil exports, saying value-added activities like refining should happen at home. While refining in Canada would create jobs, some argue it would make the Canadian energy sector less competitive.

At the debate, Mulcair came down against the Northern Gateway pipeline, saying there is “no safe way to bring those large super tankers into that narrow channel.”

Kitimat, the proposed terminus of that pipeline, is also eyed as a potential export terminal for LNG from northeast B.C. Pressed by Green Party leader Elizabeth May, Mulcair was noncommittal on Keystone XL but did say he opposed “exporting” 40,000 refining jobs to the U.S. He was warmest towards the Energy East pipeline, saying it could be a “win-win-win,” but came back around to say it could not be properly reviewed following the Harper government’s “scrapping” of several pieces of environmental legislation.

Mulcair mentioned LNG once, with regards to an export terminal near Quebec City proposed during his time as provincial environment minister. Mulcair said he “didn’t even want to look at (the proposal)” because of “the danger of those tankers in the St. Lawrence” river.

‘The Green Party opposed every single one of the pipelines that are proposed’: May While the Liberals, NDP and Conservatives are in a statistical dead heat, few expect Elizabeth May and the Greens to rise far in the seat count.

However, in a minority parliament, Green MPs could wield outsize influence by choosing whether to support the legislation of the party in power.

And for energy companies, that’s not particularly welcome news.

At the debate, Green Party leader Elizabeth May said her party opposed “every single one of the pipelines that are proposed,” agreeing with NDP leader Tom Mulcair’s claim that exporting crude from the oil sands amounted to exporting refining jobs

that could go to Canadians. She also called for an end to federal tax incentives for fossil fuel companies. May also LNG dismissed the claim that LNG is a cleaner alternative to coal.

The LNG question has animated the must-watch riding of West VancouverSunshine Coast-Sea to Sky Country, where the Greens have recruited a highprofile candidate in former Whistler mayor Ken Melamed. Squamish and surrounding communities have seen fierce debate over the proposed Woodfibre LNG plant, with voters sweeping in LNG critics in the last municipal election.

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SEPTEMBER 11, 2015

investments Plateau changes course, will move NEBC expansion project to environmental review

$210M project located in the Pink Mountain and Taylor area

Mike Carter

Pipeline News North

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A company seeking to build a pipeline to carry condensate and natural gas liquids through the Pink Mountain area, to a processing terminal in Taylor will undergo an environmental review, B.C.’s Environmental Assessment Office (BC EAO) says.

The proponent, Plateau Pipe Line Ltd.—a subsidiary of Pembina Pipeline Corp.—had previously applied to the province for an exemption from assessment in March, claiming the project would not have significant adverse environmental, economic, social, heritage or health effects.

Jason Fydirchuk, a communications advisor for Pembina Pipeline Corp., said the company voluntarily withdrew its application to proceed without an environmental assessment on Aug. 26.

“We made this request to ensure that all First Nations and Public concerns are identified and fulsomely addressed,” Fydirchuk wrote in an email. “This will ensure that the project can move forward successfully.”

The pipeline is part of Plateau’s Northeast B.C. Expansion project. It consists of a 160-kilometre pipeline from the Highway 97/ Blair Creek area north of Wonowon to the Taylor terminal.

The company noted the need for a pipeline in the area to reduce the trucking of gas to the terminal in a Spring/Summer 2015 project update brochure.

Up to 100 trucks per day are currently required to transport gas, the company says.

The project schedule for the

NEBC Expansion remains unchanged, Fydirchuk said, with an in service date of late 2017.

In April, the Peace River Regional District suggested in a letter to the B.C. EAO that the project should require an environmental assessment, citing a lack of information in the project description.

The pipeline is, at some points, only 300 metres away from residential neighbourhoods.

“The pipeline is going through heavily populated areas,” Area C Director Brad Sperling said at an April 23 meeting.

“I think it has to go through the process.”

About 46 per cent of the pipeline’s right-of-way is within the Agricultural Land Reserve.

About 400 workers will be employed during the 12-month construction period. After construction is complete, about six people will be employed as permanent staff throughout the pipeline’s 25year lifespan.

Projected costs of the project run as high as $210 million, according to Pembina’s November 2014 announcement of the pipeline.

Construction crews working on the project will be housed primarily in existing camps in the Pink Mountain area, with travel and “interactions between camp-based workers and nearby communities expected to be minimal,” the project description states.

The 12.7-inch pipeline will require a 21-metre right-of-way along with six new “risers” and pump stations. Each new riser and pump station site would be about 4.8 acres in size. dcreporter@dcdn.ca

SEPTEMBER 11, 2015

PIPELINE NEWS NORTH •

investments

17

Spectra to add capacity to natural gas transmission system

Mike Carter

Pipeline News North

Spectra Energy is planning three small expansion projects along its BC mainline natural gas transmission route in the North and South Peace that the company says will accommodate customer demand.

A nine-kilometre 42-inch diameter loop is planned for an area of the route near Wonowon, with another, 29-kilometre loop slated near Chetwynd. The Sunset Creek compressor station, located between Chetwynd and Dawson Creek, would get a new compressor unit if the project goes ahead.

Spectra spokesperson Jesse Semko says the project is in the early stages of development, with consultation ongoing with area First Nations and local governments.

The company made a presentation to the District of Chetwynd at its council meeting Aug. 10.

Engineering studies and environmental assessments are also ongoing and will be completed along with a project application that will be submitted to the National Energy Board in the fall or

towards the end of the year.

“We’ve been doing environmental studies,” Semko said.

“Those began in the spring of 2015. There has been demand from customers for the gas and that’s why we’re looking at it.”

If completed, the project will increase transportation capacity for processed gas through Spectra’s BC Mainline by 240 million cubic feet per day.

The first loop, about 20 kilometres northwest of Wonowon, will begin at an existing station and run parallel to the mainline.

The second loop, about nine kilometres south of Dinosaur Lake, parallels the existing transmission line for about 15 kilometres, with the remainder proceeding through a proposed greenfield route. Spectra says no First Nations concerns have been identified with this route. If everything goes according to plan, the project will begin in 2016 with a targeted in-service date for the end of 2016.

R0011074743

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2015-01-13 4:18 PM

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SEPTEMBER 11, 2015

Grande Prairie population boom the envy of the Peace

The population of Dawson Creek has held steady since the construction of the Alaska Highway.

JONNY WAKEFIELD Photo

Municipal census pegs Grande Prairie population at 68,556, while Dawson Creek beats stubborn high set in 1966

Jonny Wakefield

Pipeline News North

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“We keep growing and growing and growing!” the city of Grande Prairie announced in an Aug. 13 news release. It’s a headline some long-time Dawson Creek residents will greet with a sigh.

Grande Prairie’s 2015 municipal census, delivered this month, pegs the town’s population at 68,556—a stunning 36 per cent increase over the city’s 2007 population.

Between 2011 and the municipal census, the city added 13,524 new residents— greater than the population of Dawson Creek.

While Dawson Creek is among the fastest-growing cities in B.C., Grande Prairie’s surge underlines the Mile Zero City’s perennial struggle to crack 15,000.

Depending what measure you use, Dawson Creek’s population peaked in 1966 at 12,392, when it was larger both Grande Prairie and Fort St. John (which were then 11,129 and 6,749, respectively.)

Prior to 1942, the town’s population sat at 600, before exploding to 10,000 “in a matter of weeks” with the start of work on the Alaska Highway, according to a history prepared by Tourism Dawson Creek.

It’s stayed there pretty much ever since.

Dawson Creek remained primarily a farming community while Grande Prairie went through an early oil boom. The first well near Grande Prairie was dug in October 1948, according to Alberta’s Heritage Community Foundation. Pacific West Buick No. 3, the first well near Fort St. John, was drilled in 1954. Oil and gas didn’t come to the South Peace until later.

Grande Prairie and Fort St. John continued to grow by leaps and bounds while Dawson Creek hovered at 10,000.

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SEPTEMBER 11, 2015

PIPELINE NEWS NORTH •

LNG

19

SUPPLIED Photo

Mike Carter

Pipeline News North

BC EAO gives thumbs up as work progresses on Kitimat LNG project

The British Columbia Environmental Assessment Office (BC EAO) has given the thumbs up to Chevron Corp. and Woodside Energy’s Kitimat LNG cooling and export facility project near Kitimat.

In a letter dated Sept. 8, Executive Director Peter Craven noted the project has been “substantially started.”

The project will consist of the development of natural gas resources in the Liard and Horn River Basins in Northeast B.C., transportation of that gas across northern B.C. via a third party pipeline and the Pacific Trail Pipeline to Kitimat on the west coast. A liquefaction facility at Bish Cove near Kitimat will cool the gas into a liquid for shipping to overseas markets.

Under the B.C. Environmental Assessment Act, a project must be “substantially started” at least three years, and not more than five years after an environmental certificate is issued.

By acknowledging that the project is progressing, Craven assures that the company will maintain its certificate.

The Chevron/Woodside project is separate from another Kitimat LNG terminal planned by LNG Canada, a consortium involving Shell, PetroChina, Korea Gas Corp. and Mitsubishi Corp.

A final investment decision has yet to be announced for either of the two projects.

According to Gillian Robinson, a spokesperson with Chevron - a leading partner in the project along with Australian-based Woodside Energy International, who bought Apache Corp.'s stake in the project for $2.7 billion last year - the Bish Cove site saw the completion and re-opening of the Bish Cove Service Road.

“Since 2011, work on the road has upgraded it to a two-lane roadway, including the replacement of six bridges,” Robinson wrote in an email to the Alaska Highway News.

The terminal site saw further engineering and design work, including site clearing, rock blasting and grading, geotechnical work, construction

of a temporary jetty, and building and maintaining a storm water management and treatment system.

“Full construction at the proposed LNG terminal site would begin once a final investment decision is made,” Robinson added.

Chevron pumped the brakes on the project in February, when it announced it would be slashing worldwide LNG spending to $8 billion this year, down from $10 billion in 2014. This meant the consortium would not be making an investment decision on the Kitimat project in 2015.

In a conference call, Chevron CEO John Watson said the Kitimat project was undergoing a front-end engineering and design phase.

When asked by the Alaska Highway News in February, B.C. based LNG consultant Zoher Meratla of CDS Research Ltd. said “it’s a complicated equation,” trying to figure out when the trigger could be pulled on a final investment decision for the project. dcreporter@dcdn.ca

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• PIPELINE NEWS NORTH

SEPTEMBER 11, 2015

ATCO looks to plug Progress Energy into grid, cut emissions Jonny Wakefield

Pipeline News North

Plugging Progress Energy’s drilling sites in Pink Mountain into the W.A.C. Bennett Dam would cut down on “decades of greenhouse gas emissions,” B.C.’s deputy energy minister says in a letter outlining plans for a new 140-kilometre transmission line in the North Peace.

Calgary-based ATCO Power is proposing to build the transmission line from the GM Shrum generating station at the Bennett dam to Progress Energy sites north of Fort St. John. Progress is a subsidiary of Malaysian energy giant Petronas, which proposes to build a $36 billion LNG shipping terminal on B.C.’s west coast.

It would handle about 100 megawatts of load demand from Progress Energy—roughly the amount of power generated by Dawson Creek’s Bear Mountain wind farm.

A 65-kilometre network of smaller distribution lines would connect eight Progress Energy sites in the area.

Off-grid drilling companies tend to use diesel or their own natural gas to power their operations. Moving those sites onto the electricity grid would prevent 400,000 tonnes of greenhouse gasses a year from entering the atmosphere, a ministry spokesperson wrote in an email—the equivalent of removing 80,000 vehicles from the road.

A similar project, BC Hydro’s Dawson CreekChetwynd Area Transmission Line, also aims to get drillers on the grid. Oil and gas activities in the Groundbirch area have fueled the “most dramatic single-industry driven regional load growth BC Hydro has ever seen,” project spokesperson Lesley Wood said in June.

The deputy minister’s office advised the city of Dawson Creek in a letter that the project is seeking exemptions from certain B.C. Utilities Commission regulatory permits. reporter@dcdn.ca

SEPTEMBER 11, 2015

PIPELINE NEWS NORTH •

21

Japan’s INPEX Corporation starts exploring northeast B.C. for shale gas

Patrick Blennerhassett Business in Vancouver

Japan’s largest oil and gas exploration and production company is currently testing various spots in northeast British Columbia for the purpose of shale gas exploration.

INPEX Corporation, along with Nexen Energy ULC—a subsidiary company of the state owned China National Offshore Oil Corporation (CNOOC)—entered into the joint study in March of this year, according to a press release, “to evaluate geological characteristics of the areas, by analyzing properties of rock samples extracted from shale reservoirs marked for development.”

The Japan Oil, Gas and Metals National Corporation—a government administrative institution—will provide financial support for the exploration project.

The Horn River Basin in northeast B.C. is a relatively new natural gas discovery, and the largest known shale gas field in Canada.

According to a recent report from the BC Oil and Gas Commission, the area presents “unconventional” opportunities for exploration.

“The advent of horizontal drilling combined with multi-stage hydraulic fracturing increased interest in unlocking the potential of shale gas.”

The report further outlines that production in the Horn River Basin has been steadily increasing, and as of 2012 represents 28% of the province’s remaining recoverable raw gas reserves. In 2013, the report stated that 291 horizontal and 78 vertical wells had been drilled across the basin targeting shale gas deposits.

Montney growth area needs infrastructure, report says in British Columbia to the Wapiti River in Alberta, providing an extended analysis of the initial Montney Growth Assessment released in January 2012. While the initial study was for the period up until 2020, the most recent study goes to 2035 to take into account the anticipated growth in production destined for LNG projects off the West Coast, he said.

However, as companies look to put the necessary infrastructure in place, there’s the risk of over-building capacity that could adversely affect capital investment, operating performance, and overall efficiency, according to Gwozd.

And while some operators might want to build their own processing plants only for themselves, they might want to consider upsizing them to accommodate gas from other producers to help offset the cost or to team up with others to build a larger plant which could be more cost efficient, he suggested.

–Daily Oil Bulletin

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A new study has identified the need for significant new infrastructure in key growth areas of the Montney play as natural gas production by 2030 is forecast to more than double to 8.8 billion cubic feet per day (about two-thirds sweet gas) by 2030 from 4.1 bcf per day in 2015.

“The infrastructure that is there (in the Montney) while mathematically it lines up with production is in the wrong area,” Bill Gwozd, senior vice-president of gas services for Solomon Natural Gas Services (formerly Ziff Energy Group) and one of the study authors, said in an interview. About one bcf per day of new processing plant capacity will be required, he said.

The report, Montney Growth Resource & Infrastructure Assessment, by Solomon and Gas Processing Management Inc. (GPMi) also anticipates that by 2030 more than 120,000 bbls per day of liquids will be recovered.

The study examines key growth areas of the Montney play from northwest of Fort St. John

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22

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SEPTEMBER 11, 2015

infrastructure

An aerial view of Chetwynd looking northeast. Highway 97 (centre) and Highway 29 (upper left) feature prominently in a Ministry of Transportation and Infrastructure study that identifies a potential 50 per cent increase in traffic for the corridor over the next 25 years.

MIKE CARTER Photo

Highway improvements proposed for Chetwynd

Mike Carter

Pipeline News North

Traffic in Chetwynd is predicted to spike by 50 per cent over the next 25 years as the district and region braces for an influx of industrial development.

The provincial Ministry of Transportation and Infrastructure (MOTI) recently completed a traffic study of Highways 97 and 29 through Chetwynd.

The report identifies a number of issues with the current state of the road system which need to be addressed with increased traffic volumes expected along the corridor due to anticipated activity from future LNG, oil and gas and other developments such as Site C over the next 25 years.

The study area encompassed a 17-kilometre stretch of Highway 97 from the Dokie School Road, also known as Disher’s Corner, through to the Hayward Subdivision Road. It also included 3.6 kilometres of Highway 29 from the Jackfish Lake Road to its juncture with Highway 97.

According to the study, Highway 97 carries an average of about 6,790 vehicles a day, with Highway 29 carrying about 3,730 vehicles daily.

Both highways already see heavy resource sector traffic, which accounts for between 10 to 20 per cent of total daily traffic through the district, according to the study.

The study predicts industrial development will push total traffic volumes to 10,180 vehicles daily along Highway 97, and 5,600 vehicles on Highway 29 by 2039.

In the short term, the study suggests additional

crosswalk signs for 46 Street in front of Chetwynd Secondary and Windrem Elementary schools, along with the removal of the current pedestrian signs and flashing beacon by the schools crossing Highway 97.

More generally, the MOTI will review possible improvements to signage and pavement markings that have faded, and advanced intersection warning signs coupled with the street names for consistency with MOTI guidelines.

The CN Rail crossing on Highway 97 will also be monitored to see if it requires a gated warning system.

A safety analysis identified 30 collisions on the corridor from January 2009 to December 2013. Two of the crashes were fatal, both on Highway 97. Ten out of the 30 collisions occurred at the intersection of Highways 97 and 29.

According to Chetwynd Chief Administrative Officer Doug Fleming, the town has pursued a corridor study over the last number of years.

“It was spurred on by Chetwynd,” Fleming said of the study.

“It was warranted by all projected developments in the area. The idea is to look at the road system so that when there is development pressure in the community, there is some pre-thinking applied to the connectivity to (the highways).”

The study was paid for and carried out by MOTI, at zero cost to the district. But it does provide the town with a roadmap for future improvements.

Although the majority of the projects will be carried out by MOTI, the district will have to foot the bill for others.

“Everything that’s in the plan will have to be approved by [MOTI], but some of the work they’ll expect the district to pay for,” Fleming said.

The most expensive improvement for the district will be a realignment of 53 Avenue Northeast, to eliminate a staggered intersection with Highway 97, at a cost of $1.56 million.

Long-term improvements include an extension of the North Access Road in front of the Chetwynd and District Recreation Centre, connecting into 45 Street behind Peace Country Rentals.

Other improvements that would be picked up by the district include realignments of the North Access Road via 49 Street and 50 Avenue, and other realignments to the South Access Road by Spirit Park, continuing in behind the 7-11.

“We’ll do that as growth dictates,” Fleming said, adding that “30 years ago, the road system was very similar to what it is today, but 30 years from now it could be completely different depending on what kind of projects happen in the region.

“The district has done bits and piece of work,” he said.

The District will now integrate the MOTI study into its Official Community Plan and traffic planning work.

“It’ll become a working document for the district,” Fleming said.

“If we’re ever doing improvements or there are developments along the highway frontages that could be impacted by the study, we’ll definitely take it into consideration. We may work with a developer to undertake some of the improvements they’ve proposed, the way they’ve proposed them.”

SEPTEMBER 11, 2015

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PIPELINE NEWS NORTH •

23

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• PIPELINE NEWS NORTH

SEPTEMBER 11, 2015

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Steelhead LNG in pre-construction agreement Steelhead LNG Corp. announced a pre-construction agreement with pipeline developer Williams to begin with the design and regulatory approvals for the Island Gas Connector, a proposed natural gas pipeline that will transport natural gas to Vancouver Island, where Steelhead LNG is exploring the development of two LNG facilities.

Williams is an American company that is also involved in the Pacific Connector Gas Pipeline L.P. project, a partnership between Williams and Jordan Cove LNG L.P., which is held by Calgary-based Veresen Inc. It will provide a link with existing pipeline systems that converge at Malin, Ore., and the west coast of Coos Bay, Ore. Steelhead announced an agreement with Malahat First Nation for the proposed development of Malahat LNG. Steelhead has since confirmed to the National Energy Board that one six-million-tonneper-annum (mtpa) licence will be allocated to Malahat LNG, while

the other four six-mtpa licences will be allocated to the company’s proposed project at Sarita Bay (DOB, Aug. 21, 2015).

This pipeline would transport natural gas 52.8 kilometres from Williams’ Northwest Pipeline’s interconnect with Spectra Energy Corp.’s B.C. Pipeline system at Sumas, Wash., to Cherry Point, Wash.

From there, it would travel 75.2 kilometres subsea, landing directly at the proposed Malahat LNG. While the first phase of the project would be constructed to supply the Malahat LNG facility, it would be designed to meet the potential capacity requirements of both proposed LNG facilities, thus offering potential shared infrastructure benefits. Delivering supply to the proposed LNG project at Sarita Bay would require an additional independent pipeline from the east coast of Vancouver Island to Sarita Bay, designed, owned and operated by a separate Canadian entity and subject to its own regulatory approval process.

— Daily Oil Bulletin

SEPTEMBER 11, 2015

PIPELINE NEWS NORTH •

technology

25

Millennium introduces waterless solution for hydraulic fracturing Millennium Stimulation Services announced today it is introducing a patented process of using energized natural gas (ENG) as a fluid solution for hydraulic fracturing, which will help to reduce greenhouse gas emissions.

This process allows a virtually complete replacement of water volumes while eliminating the need to vent gas or flare gas emissions into the atmosphere. E&P companies also stand to benefit from improved finding and development costs, the company said.

“Government environmental initiative and economic stability are key driving factors in the deployment of ENG as a fracturing solution,” Millennium said in a release.

Currently the industry uses either high vol-

umes of water or gases such as nitrogen or CO2 in the fracturing process. All of the current solutions present an array of problems that using ENG can either significantly reduce or completely eliminate, the company said.

“E&P companies using ENG receive an additional benefit through the improved well production and gas recovery.”

Millennium said the increase in well productivity is the reason producers prefer to pump gas as opposed to water. Current gases being deployed, however, require the producer to vent or flare gas into the atmosphere until it meets production specifications. ENG, on the other hand, meets those same specifications without the need to vent or flare. Producers can flow all produced gas straight into

the sales line, thus profiting on otherwise lost product. ENG can also improve both reservoir productivity levels and cumulative production, the company said.

“Regulations relating to both water and greenhouse gas emissions look to present the industry with more problems than solutions.

ENG looks to be a win-win for government bodies and industry producers alike. Sustaining industry development and production, while meeting regulatory terms, is the ideal solution that Millennium looks to provide using ENG. “We want to do a better job for our environment. We want to do a better job for our client.”

— Daily Oil Bulletin

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• PIPELINE NEWS NORTH

SEPTEMBER 11, 2015

in brief Horizon North

Penn West employees laid off; cuts planned at ConocoPhillips

announces

A round of layoffs at Penn West Petroleum has hit northeast B.C., and more cuts could be coming to local ConocoPhillips employees.

On Sept. 1, both companies announced the layoffs of hundreds of people.

A Penn West spokesman who did not want to be named said that “a very small number” of people in the company’s northeastern B.C. operations have been laid off. However, he declined to say how many people were laid off, or when, or if future layoffs were scheduled.

The company announced Tuesday it would reduce its total workforce by 35 per cent, representing over 400 full-time employees and contractors.

The reduction was set to take place Tuesday, with the remainder of the workforce reduction expected by the end of the year.

Most of the employees and contractors leaving were located in their Calgary head office, the company said in a release.

“We have made a number of exceptionally difficult decisions in order to remain competitive in the current commodity price environ-

contract awards

Horizon North Logistics Inc. says that it signed several new contracts with energy companies operating in Canada's Montney region.

Under the three-year contracts, Horizon North will provide full service solutions including accommodation rental, catering and associated camp management services with total expected revenue of $41.7 million.

Horizon will use 415 executive style beds and related infrastructure from its existing fleet.

"These contract awards provide additional certainty to our expected results for the back half of 2015," said Rod Graham, president and chief executive officer. "Despite recent commodity price volatility, certain customers are moving forward with their plans to supply gas to future west coast liquefied natural gas facilities."

–Daily Oil Bulletin

ns ociatio SEPTEMBER 2014 & um ass AUGUST petrole elson N rt o dF n a ce th Pea s: Sou Profile

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ment,” Penn West CEO Dave Roberts said.

“We view the cost reductions as sustainable and we will remain well positioned for the potential expansion of development activities and capital programs in the future.”

Last March, Penn West said that it was not losing money on its operations, and that it did not plan to lay off the 20 or so people who work in the region.

ConocoPhillips employees in Fort St. John may also start to feel the pinch of low oil prices. The company announced that it would lay off about 15 per cent of its Canadian workforce, including 400 employees and 100 contractors.

Rob Evans, a spokesman for Conoco Phillips, said the precise locations of the layoffs had yet to be fully determined, as the actual decisions of layoffs had yet to be made.

The majority of the layoffs are set to occur in the company’s main Calgary office.

Thirty people are employed in ConocoPhillips northeastern B.C. operations, Evans said.

–Pipeline News North

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• Distributed to the community in general through these fine publications, Alaska Highway News, Dawson Creek Daily and Fort Nelson News.

• Distribution by mail and direct drop-off to Oil & Gas companies,and related businesses and organizations, in the following communities: BRITISH COLUMBIA – Arras, Baldonnel, Cecil Lake, Charlie Lake, CHETWYND, Clayhurst, DAWSON CREEK, Farmington, FORT NELSON, FORT ST. JOHN, Goodlow, Groundbirch, HUDSON HOPE, Moberley Lake, Pink Mountain, Pouce Coupe, Progress, Rolla, Rose Prairie, Sunset Prairie, Taylor, Tomslake, TUMBLER RIDGE, and Wonowon.

ALBERTA – Baytree, Bear Canyon, BEAVERLODGE, Berwyn, Bezanson, Bonanza, CLAIRMONT, Eaglesham, FAIRVIEW, Falher, Girouxville, GRANDE PRAIRIE, Grimshaw, Grovedale, HIGH PRAIRIE, Hines Creek, Hythe, LaGlace, MANNING, McLennan, PEACE RIVER, Rycroft, SEXSMITH, Silver Valley, Spirit River, VALLEYVIEW, Wembley, and Worsley, Zama City.

SEPTEMBER 11, 2015

POPULATION from page 18 Unlike Grande Prairie, Dawson Creek does not carry out a municipal census, so it’s hard to know the current population.

City council last discussed population at a January meeting when considering upgrades to a water treatment plant. Engineers on the project used a rough estimate of population size and growth (around two per cent) to determine how much water the facility would handle.

“We’ve heard various (population) numbers, anywhere from 11,000 to 15,000 plus,” Coun.

Paul Gevatkoff said at the time.

Water is one of the issues constraining Dawson Creek’s population. Last year, council considered a proposal from an industry group to build a water pipeline to the Kiskatinaw River. While the idea was abandoned as infeasible, proponents of the pipeline estimated it could provide enough water to support a population of 32,000.

Water and utility use provide some clues to how many people live in a city.

A BC Stats estimate released in February pegged Dawson Creek’s 2014 population at 12,653, based on power hook-up and healthcare registration data. Despite this, Dawson Creek has never beat its 1966 population record on an ac-

tual census.

The agency estimated Dawson Creek’s rate of growth at three per cent, making it the tenthfastest growing city in the province. Fort St. John was second with a rate of 4.7 per cent, behind Lakeland County in the Okanagan.

How much the increase in population is due to transient workers is unclear.

“We have all this construction…at the same time, our school population is not growing,” Coun. Terry McFadyen said in February.

“That tells me we have a significant shadow population.”

It’s also unclear what the fall in oil prices will mean for the region’s permanent and transient populations.

If Dawson Creek does surpass 15,000 people, there would be opportunities and challenges.

Chamber of Commerce director Kathleen Connolly said many retail stores and restaurants will consider investing in a city with a population of 18,000.

“We’d need quite a bit of growth before those franchises start to look at us,” she said.

She said low Alberta taxes, coupled with the oil and gas sector’s head start in the region have allowed Grande Prairie to outpace Fort St. John and Dawson Creek.

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“It’s cheaper to do business in Alberta than B.C., so a lot of companies are cross-provincial,” she said.

“We get quotes (that it’s) as much as 33 per cent cheaper to do business in Alberta as it is in B.C. For (a company) to hop across the border… it makes perfect sense. Relatively, it’s a short commute.”

Fifteen-thousand people would mean a larger tax base, but also new costs to the municipality.

For example, cities over 15,000 must pay 90 per cent of their RCMP costs, instead of the 70 per cent footed by cities below the threshold. The federal government covers the remaining police costs.

During a council meeting in January, chief administrative officer Jim Chute expressed skepticism about the rosy growth predictions, alluding to a conversation with a man who settled in the area in the 1950s.

“He was told it was going to be 20,000 overnight. And it was (10,000) when he arrived and it’s pretty much ten now,” he said.

“If you look at our historical trends there’s no basis for the optimism.” reporter@dcdn.ca

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SEPTEMBER 11, 2015

lng

FILE Photo

could pacific northwest lng find a new home?

Petronas and the Lax Kw’alaams First Nation have agreed to explore ways to mitigate the impact of a new liquefied natural gas plant and marine terminal on a sensitive estuary at the mouth of the Skeena River.

In May, the Lax Kw’alaams – one of five key First Nations in the Prince Rupert area – unanimously rejected a $1.1 billion benefits agreement offer from the company for their support of the project.

The Lax Kw’alaams have concerns about a suspension bridge that would carry LNG from a liquefaction plant on Lelu Island to an offshore marine terminal adjacent to the ecologically sensitive Flora Bank. They fear pilings would affect water flows.

At a conference sponsored by AltaCorp Capital in Vancouver Aug. 25, Michael Culbert, president of Progress Energy (a wholly owned subsidiary of Petronas) and Pacific NorthWest LNG, said that a moderator had been brought in to help the two sides come together.

He said the company is now looking at modifications to the suspension bridge to address some of the concerns.

The same day that Culbert addressed industry players in Vancouver, the Lax Kw’alaams issued a press release that suggested the LNG site could

be relocated.

“A protocol has been established to do investigative drilling in aid of determining an alternative site, away from the Flora Bank, for the shipment of any LNG from Prince Rupert harbour,” the release stated.

But in his talk with investors and analysts Aug. 24, Culbert described the work more in terms of a design modification rather than a relocation.

He said modifications to the project could only go so far without triggering a whole new environmental review, which has already taken twice as long as it was expected to take.

The suspension bridge was one of the modifications the company made in order to address concerns over impacts on sensitive eelgrass habitat.

Asked what further modifications might mean for the final cost of the $36 billion project, Culbert said: “We have one of the most expensive alternatives in front of us, so tweaking it a little bit probably doesn’t have a big impact on the cost. That’s one of the reasons we’re doing the investigative work that will start up in the next couple of weeks, just looking at some bore holes to look at some different trajectories of the facility.”

–Business in Vancouver

SEPTEMBER 11, 2015

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LNG plan has Island First Nations at odds The Malahat First Nation’s plans for a liquefied natural gas plant at Bamberton are not sitting well with some neighbouring First Nations.

The Tsartlip First Nation, which sits across the water from Bamberton on Saanich Inlet and also has territory south of Bamberton near Goldstream Park, said it “strongly opposes the process chosen by Malahat First Nation and [its corporate partner] Steelhead LNG.” “We oppose the aggressive approach taken by Steelhead LNG and their board of directors by publicly announcing the project prior to any discussions with the Tsartlip community,” said Tsartlip Chief Don Tom. “We intend on making it clear that Tsartlip First Nation’s approval will be required for any LNG project to proceed.”

The Tsartlip noted the pursuit of the project has been done without respectful acknowledgment of its territory. ‘‘Tsartlip takes tremendous pride in protecting all aspects of our community and will not subject our people to the risks around pipelines and LNG terminals,” said Tom. ‘‘So far their process can be characterized as disrespectful and insulting.”

A meeting between Tsartlip and the Malahat Nation is set for Sept.

11 to discuss the project.

Steelhead, the company that proposed a floating liquefied natural gas plant at Bamberton, announced this week that it had found a partner, U.S. company Williams, to design and build a 128-kilometre natural gas pipeline to fuel the proposed plant.

The Malahat LNG plant would be able to produce six million tonnes of LNG annually and result in 200 long-term jobs on top of hundreds of jobs created during construction, Steelhead said.

Malahat First Nation CEO Lawrence Lewis said they have reached out to Tsartlip and other First Nations in the area and are happy to discuss the proposal.

“Our reaction [to Tsartlip’s statement] is the [Malahat] Nation

has an obligation first and foremost to its citizens,” Lewis said.

“We will continue to reach out and meet with our neighbouring First Nations. We have already met with Tsawout and Lyackson and will continue to reach out and connect with others.”

Lewis stressed the process is in its infancy.

“It’s too early to get this excited,” he said. “We are talking about a possible site and a possible project. Yes, we’ve given a lot of thought about how it might benefit the nation. We’ve done a lot of heavy work on the front end to make sure it’s even worthy of bringing forward.

“We are now at a point where we can have an honest and frank conversation about what a proposed site will even look like. This is the start of a very long process.

It’s only just the beginning.”

Both the Malahat and Steelhead have stressed the project is years away from becoming a reality and would require several levels of regulatory approval.

The pipeline alone would require the approval of the Federal Energy Regulatory Commission in the U.S. and the National Energy Board in Canada.

The early discontent among First Nations and some of the surrounding community spurred Adam Olsen into action. He has set up the Saanich Inlet Network.

Olsen, interim leader of the B.C. Green Party and a member of the Tsartlip First Nation, said the initiative will help people voice their concerns about the proposed LNG facility and get involved. ‘‘Over the past couple of weeks many people have contacted me expressing their concerns about this proposal. As a result, I decided to create a way to connect people and share information,” he said. “I hope this will be a platform for the communities around Saanich Inlet to develop a vision for the future.”

— Times Colonist

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CAREERS

Have you saved enough to retire?

Jim B lankenship

Tribune News Service

One reason retirement funding may mystify you: How do you know when you saved enough so you won’t run out of money during your golden years?

The answer begins with an understanding of your day-to-day expenses, and how those expenses may change in 30 or more years of retirement.

According to a recent survey from the Employee Benefits Research Institute, 84 percent of future retirees believe their savings will cover their post-career years –– yet fewer than one in three respondents calculated how much they will need. Only around 20 percent had more than $100,000 set aside. More than 10 percent had nothing at all saved for retirement.

A conventional savings rule says you withdraw no more than 3 percent to 5 percent each year from your retirement savings to make your money last –– a sustainable rate of withdrawal. Opinions vary about appropriate sustainable rates; the 4 percent rule comes under considerable scrutiny lately. Working with the above range will get you close.

This equates to $1 million in retirement funds for you to withdraw $30,000 to $50,000 each year.

Don’t despair: There are ways to increase your sustainable rate of withdrawal while still maintaining a relatively high degree of certainty that your money will last.

The first and possibly most critical factor is to plan and then monitor your plan closely, either on your own or with a financial pro. Your plan needs to include projections or modeling to show what your future income might be based on your sources of income, such as retirement savings, pensions, Social Security benefits and the like.

Developing a plan can give you more confidence in your ability to make savings last. Similarly, planning can also reveal if you saved too little and allow you time to adjust your efforts. Review and update your plan once a

year or so.

Second, adjusting your portfolio holdings can also boost your level of sustainable withdrawal. More risk in your holdings is actually good for your long-term holdings; a significant position in the stock market helps you achieve a higher level of returns – and, in your retirement, withdrawals – over time. Without some exposure to risk, your funds will fall behind the inflation of day-to-day expenses, not to mention hyperinflationary items like health care.

The third important factor regarding your savings’ sustainability: the pattern of income that you’ll need in retirement. Over three or more decades, your income needs will likely change. During your first several years, for instance, you’ll likely spend more than average as you travel or take on new hobbies. On the other hand, you may continue to save during this time of your life, perhaps with income from a part-time job.

Later in retirement, many people lower expenses as they become more sedentary, not traveling as much and having fewer extraneous expenses.

Declining health and energy in still-later years often increase health care costs.

It’s best to maintain a realistic view of your own life span, erring on the long-term side. It’s not unreasonable to project a retirement plan to your late 90s. With planning, that can be completely good news.

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