Pipeline News North: October 2015

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Special Report: The buzz word reshaping resource development OCTOBER / NOVEMBER 2015

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PIPELINE NEWS NORTH VOL. 7 ISSUE 10 DIST: 16,000

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Innovations, expansions and new builds: As British Columbia continues to move forward toward its LNG dreams, the North Peace is ripe with pipeline expansions while the South Peace becomes home to the largest gas plant in decades. Meanwhile, land sales see a rebound in October, regional trades training gets a boost, and the Fort St. John Petroleum Association gives a boost of its own to the community.

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OCTOBER 16, 2015

Get involved in this years 55th AnnuAl Fort St. John Petroleum ASSociAtion oilmen’S BonSPiel

november 11-14, 2015 limiteD to FirSt 48 rinKS ~ eliGiBilitY reQuirementS 5 events - Guaranteed 4 Games Stag Banquet with entertainment thursday @ curling rink music & Dance Friday evening @ curling rink entrY Fee $500 Per teAm – entrY DeADline noV. 4, 2015 For more inFormAtion contAct: curtiS SchAFer @ (250) 262-9453 or roSS SeXSmith @ (250) 262-7106

Next Fort St. John Petroleum Association meeting is on Nov. 5th. See you there!


OCTOBER 16, 2015

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MATT PREPROST photo

Oilmen pitch in: The Fort St. John Petroleum Association gave a big helping hand to the North Peace Gymnastics Association in September, donating $5,000 to help the club recover from a fire that tore through its gymnasium in July. The funds were raised at the Petroleum Association’s Family Camp Weekend in August, the largest oilmen’s event so far this year. Some 420 people attended, above the 360 mark the association was expecting. The gymnastics club was left without a home July 18 after a fire tore through its facility in Fort St. John, but has since found a temporary space at the Stonebridge Hotel. Above, Sean Thomas (left) and Curtis Whitford (centre) of the Petroleum Association presented Kerri Kitzul of the gymnastics club with a cheque at the club’s Fundraising Gala and Comedy Night at the Pomeroy Hotel Sept. 19. “We’re really happy to do it,” Whitford, who co-chaired the family camp weekend, told the crowd to applause. “Without a facility, it’s a huge hole in our community, so we’re really happy to donate this cheque.”

PNN

NUMBERS

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

20 years: Length of patents secured by Millennium Stimulation Services on its waterless fracking alternative, energized natural gas. Story on Page 5. $860 million: The cost of Veresen’s Sunrise gas plant near Dawson Creek. Story on Page 6. $3.2 million: British Columbia’s take in its Oct. 7 land sale, up from a paltry $548,187 in September. Story on Page 8.

20,000: Barrels per day of natural gas liquids that would be processed at AltaGas’s proposed facility near Fort St. John. Story on Page 10.

400: Estimated number of workers that will be needed to construct a 160-kilometre pipeline from Wonowon to Taylor. Story on Page 22.

$300,000: Donation from Encana to Northern Lights College in support of a new trades training centre. Photo on Page 14.

22: The number of spill response exercises put on each year by West Coast Spill Services. Story on Page 25.

12: Number of mobile treatment centres operated by RNN Sales and Services, which is being honoured at the Aboriginal Business Awards in Vancouver. Story on Page 21.

87: Length in kilometres of a proposed pipeline expansion by Nova Gas to bring natural gas from Saddle Hills to Groundbirch. Story on Page 29.


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OCTOBER 16, 2015

Waterless fracking could 5 soon be in NEBC

Sunrise gas plant largest in 6 decades Oil and gas sales 8 rebound

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22 Plateau open house set for Fort St. John

Mid-size LNG players have 12 big role in Western Canada

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Tight gas fracking sees mid- 13 level producers rival majors NLC seeks donors for 14 trades bursary

Oilmen’s bonspiel 16 coming up

Progress taps former MP to 18 work with local govt Look for PNN on FB: pipelinenewsnorth

20 Women in Energy networking 21 RNN names best Aboriginal business

AltaGas proposes 10 $100M facility

19 DC council, chamber back transcanada

24 Troyer brings home entrepreneur award 25 Crews get lesson in oil spill response 26 Cumulative impacts: the buzz that’s changing everything 28 Cities want spill cleanup help

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29 nova gas eyes Groundbirch expansion 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.


OCTOBER 16, 2015

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innovation

#oilsands

'Waterless' fracking company sets sights on Northeast B.C. Calgary-based Millennium has secured 20-year patents to use 'energized' natural gas in bid to eliminate water from fracking process

Jonny Wakefield

Pipeline News North

Talk to anyone with environmental concerns about hydraulic fracturing, and the conversation will likely come back to one point: water. Industry veteran Mike Heier knows this all too well. "It's nothing for people to use 100,000 barrels of water in a frack," said Heier, founder of Trinidad Drilling. His latest venture aims to change that. Heier is CEO and president of Millennium Stimulation Services, a company that hopes to be operating in Northeast B.C. in the near future. The company has developed a process using energized natural gas to replace or eliminate water from the fracking process. Twenty-year patents on the process were issued earlier this year. Replacing fluids in a frack with some kind of gas is not uncommon, and Millennium isn't the first company to lay claim to the "waterless" fracking mantle. Still, Heier hopes the process will reduce the practice's environmental impacts to a greater degree than the alternatives, while cutting costs associated with fracking using other gases.

supplied Photo

A worker inspects a Millennium Stimulation Services machine that uses 'energized' natural gas to replace or eliminate water from the fracking process.

Millennium's process uses energized natural gas, transported in its cooled, liquefied state. At a frack site, the liquefied natural gas is warmed into a vapor state "at frack pressures," Heier said. These fracks are known as "foam" or "energized" depending on the ratio of gas to liquid. "Gas only" fracks tend to use carbon dioxide or cryogenic nitrogen, which creates its own problems, Heier said, noting those chemicals

can't be sent down a sales line with marketable gas. Instead, the gases used for fracking must be vented or flared. "You're not only buying something you're sending it up a flare stack, you're also sending a lot of native reservoir product up the flare stack and not making any economic use of it," he said. "(It goes) straight to the atmosphere in the form of a greenhouse gas emission."

Heier said Millennium hopes to be operating in the Montney in the near future. These fracks wouldn't be "waterless" off the bat; rather, crews would "pull in alongside conventional frack (equipment)" to "displace how much fluid they put in." The company is still building frack pumpers and transports, but the biggest hurdle is the gas itself. Despite some existing and planned plants aimed at industry, LNG isn't available in large enough volumes in the northeast. While AltaGas is at work on a regional LNG project in the Peace, including a plant in Dawson Creek, Heier said his company plans to build its own network. "The volumes are very large and the infrastructure is non-existent," he said. "Our primary mandate is to build, own, and operate LNG plants. "We're talking to a number of clients in Dawson, Grande Prairie, other players in that area. The Montney (and) Duvernay (formations), play very heavily on the future of what we're doing on the Canadian side." reporter@dcdn.ca

The process uses energized natural gas, transported in its cooled, liquefied state. At a frack site, the gas is warmed into a vapor state at frack pressures. These fracks are known as ‘foam’ or ‘energized’ depending on the ratio of gas to liquid.


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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.

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$860M gas plant will be the largest in decades Jonny Wakefield

Pipeline News North

Western Canada's largest gas plant in 30 years will be built in the middle of an oil downturn. On Tuesday, Veresen Midstream announced plans to build its $860-million Sunrise gas plant near Dawson Creek. The plant will deliver 400 million cubic feet of gas per day to TransCanada's Nova Gas Transmission Line—a massive pipeline network that services Alberta and other North American customers. Veresen Chief Financial Officer Theresa Jang understands if the timing on the investment might seem a bit confusing. "It's something of a bright spot in what are otherwise pretty challenging conditions," she said of the Montney shale formation. "Although the broader (financial) environment is challenged, there are areas, particularly in the Montney, where producers are still undertaking a lot of activity." Encana's Cutbank Ridge Partnership, which includes Mitsubishi, will supply the gas from fields in the South Peace. Despite the collapse in natural gas


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Veresen's Sunrise gas plant will feed gas to Alberta pipeline prices, those companies remain active, Jang said. "The area Encana and the Cutbank Partnership are drilling out of is one of the most prolific regions to drill for natural gas on the continent," she said. "It's very, very economic for them to drill even where gas prices are today." While Veresen is involved in an LNG plant in Oregon, Jang said it's likely most of the gas would be used in North America, where prices are lower. "Odds are it will stay on the continent somewhere, but once it hits a major hub like AECO (a storage facility in southern Alberta) it's impossible to say where it would go." Jang did not have firm estimates for jobs numbers, but said the facility would have a major impact on the South Peace economy. Work has already begun on the project, with a completion date set for 2017. reporter@dcdn.ca

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land sales

file Photo

Oil and gas land sales rebound after lacklustre September Mike Carter & Jonny Wakefield Pipeline News North

Petroleum and natural gas land sales in the province rebounded slightly at its October auction, bringing in $3.2 million. More than 6,000 hectares were sold at the Oct. 7 sale at an average price of $540.51. It’s the biggest take from auction this year. Landsolutions GP Inc. picked up a 2,055-hectare parcel for $2.08 million, the lion’s share of the bonus revenue for the month. This month’s proceeds are up significantly from September’s total of $548,187, but still a far cry from an October 2014 total of $14.3-million. Following an oil price crash, the downward trend in total land sales to date continues, now sitting at $10.1 million, lurching toward a new 30-year low. The previous low came in 1982-83, when investors bought just $17 million in drilling rights. The next land sale auction is Nov. 4. LOSS OF APPETITE FOR EXPLORATION The province brought in $548,187 in its September oil and gas land auction, an improvement over recent months but anemic compared to the $25 million pulled in this time last year. The industry has lost much of its appetite for exploration following the oil price crash, according to University of Northern B.C. economist Dr. Paul Bowles. “The same thing is happening in Alberta and Saskatchewan. Sales are way down,” he said. “It’s based on exploration, and that’s the first thing that gets cut when there’s a downturn. “We haven’t seen these falls from $100 to $40 a barrel in such

a short space of time, and that’s created huge market uncertainty for oil and gas producers,” Bowles added. “Everybody’s cutting back, which translates into lower growth.” Lower prices are being blamed on weak global demand and a glut of supply from OPEC nations, which are maintaining production levels to protect market share. The province uses proceeds from resource exploration to fund social programs and infrastructure. From 2006 and 2015, the land sale accounted for between 29 and 68 per cent of the province’s total income from oil and gas. The province posted record totals of $3.8 billion in 2008-09, on the strength of a $2.4 billion land sale. At the time, “the world economy was growing fast, China was growing really fast, commodity prices were high, oil was $100 a barrel, natural gas prices were high in Asia...that fueled a lot of interest in exploration and land sales for future supply,” Bowles said. Activity slackened following the global financial crisis but stayed above the billion-dollar mark. New production in the U.S. has taken a bite out of North American natural gas prices—the driving force behind the province’s plan to export LNG to Asia, where prevailing prices are higher. As for where this year’s land sale puts the industry five years down the road, Bowles hesitated to make a prediction. “The land sales numbers really fluctuate because they’re based on what’s going to happen in the future (with oil prices),” he said. “No one’s really that interested in investing big money in exploration at a time of low prices and heavy uncertainty.” —with file from Daily Oil Bulletin dcreporter@dcdn.ca reporter@dcdn.ca


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infrastructure

AltaGas proposes $100M gas facility just outside Fort St. John

William Stodalka

Pipeline News North

A new $100-million gas facility could be built just outside Fort St. John’s eastern borders. Last Thursday, representatives from the Calgary-based company made a presentation at the Pomeroy Hotel in Fort St. John to outline plans for a natural gas liquids separation and handling facility. The move could bring in as many as 150 workers to the area during construction. It would process 20,000 barrels per day of natural gas liquids and include a product facility to separate the liquids, along with a storage facility, a rail loading terminal, and a truck terminal. The facility would process sweet gas. Liquids from the gas would be separated into propane, butane, and condensate, which have various household and industrial uses. The facility would be located along the Swanson Lumber Road across from the Canfor mill. Plant project manager Brock John said the location was chosen because of its close proximity to the Alaska Highway and the railway. “There’s a lack of liquids processing facilities in this area, and, with the increase in natural gas that is being produced, there’s an increase of supply of natural gas liquids that doesn’t have a home,” said John. AltaGas hopes to start construction in the second quarter of 2016, and have the plant ready in third quarter of 2017. The plant would have economic benefits for the area, including 20 to 25 permanent jobs after construction, John said. He also said it was “absolutely” his intention to hire a local firm to build the plant.

WILLIAM STODALKA photo

Attendees of an AltaGas meeting discuss a new proposed facility set to be built just outside of Fort St. John. However, some nearby landowners are concerned about the plant’s impact on the area. Christine Todd said she is concerned about safety, her health, and potential emergencies that could arise. “There’s so much (traffic) on that road already, we don’t need anything else,” she said. AltaGas estimates about 40 to 50 more trucks will drive along the Swanson Lumber Road daily once the plant is operational. John said the project is currently going through a risk assessment study. The project has not received regulatory approval yet from a mix of seven federal and provincial agencies. reporter@ahnfsj.ca

SUPPLIED photo

An artist’s rendering of a proposed $100-million AltaGas plant along the Swanson Lumber Road just outside Fort St. John.


OCTOBER 16, 2015

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Market snapshot: This chart depicts the share of production from western Canadian natural gas producers in 2006 and 2014, organized by total operated production. Sources: Divestco, NEB calculations

Mid-size players have big role in Western Canada Crew Energy, Painted Pony, Progress Energy, and Arc Resources keep natural gas production rolling

Mike Carter

Pipeline News North

Companies operating in the B.C. Peace Region are gobbling up more of the natural gas production share in Western Canada. Over the past decade, the number of natural gas producers operating in Western Canada has fallen by 30 per cent, according to the National Energy Board. But as that number drops, mid-size and “large mid-size” natural gas producers in the B.C. Peace are keeping the production train rolling. Data released by the NEB show a decline from 829 natural gas producers in 2006 to 619 in 2014. Despite this, there are more mid-sized and large mid-sized producers active in the Western Canadian gas market. “Following the 2006 peak in production, gas prices fell and many smaller producers had difficulty attracting investment,” the NEB said. “Hundreds of marginal and small-size producers exited the market, along with a dozen juniors. Three major producers also sold their natural gas assets and exited the Western Canadian market, leading to a decline in the share of production by majors.”

As a result, “mid-size and large mid-size producers increased their share of production by drilling tight gas prospects on land acquired from majors, smaller producers, and provincial governments.” Major producers still dominate the markets, however, the share of production held by majors declined from 58 per cent in 2006 to 46 per cent in 2014, Canada’s national energy regulator reported. Mid-size producers are defined as producers with annual production that falls into the 50 to 99 million cubic feet per day (MMfc/d). In the B.C. Peace, these producers include Calgary-based firms Crew Energy Inc. and Painted Pony Petroleum Ltd. Large mid-size producers, defined as companies with an annual production of 100 to 500 MMcf/d, increased their share from 24 per cent to 34 over the same time period. These include Progress Energy and Arc Resources, both based in Calgary. Encana, Shell Canada and Tourmaline are the only majors operating in the region. dcreporter@dcdn.ca


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Fracking of tight gas helps mid-level producers rival majors Mike Carter

Pipeline News North

A decade-long shift from conventional to tight gas production in Western Canada is being lead by large-mid-sized producers who are now rivalling the majors for market share, the National Energy Board (NEB) reports. Companies such as Progress Energy Canada Ltd. and Arc Resources Ltd. operating in and around Dawson Creek are examples of largemid-sized producers. Extraction of “tight gas,” which can only be accessed through large scale fracking operations, has increased along with the proliferation of horizontal drilling. Horizontal drilling’s popularity has risen alongside innovations in technology that have allowed producers to exploit the practice to outpace vertical drilling. Fracking of tight gas only accounted for 27 per cent of Western Canadian natural gas production in 2006, compared to the 42 per cent market share it held in 2014. During this increase, large-midsized producers increased their share of “operated” tight gas from 22 per cent to 44 per cent in 2014—now matching the market share held by the majors. The trend towards large-midsized producers has been helped along by the fact that, according to the NEB, following peak production in 2006, many of the majors focused on projects outside of Canada or sold their Canadian assets. “Tight gas drilling techniques are very capital intensive, requiring

large amounts of land and drilling capacity,” the NEB said in a release. “Majors possess the scale and scope to produce tight gas resources, but they operate internationally and must allocate capital between various international projects.” While the majors focus their attention internationally, large-midsized producers tend to have a regional focus, while also possessing the size and land to attract investment capital and access debt markets. “This has enabled them to lead all producer groups in Canadian tight gas production since 2006,” the report stated. “Marginal and small producers generally have insufficient drilling prospects to attract the investment capital needed for tight gas operations.” Junior and mid-sized producers, who possess larger but still relatively small land bases, attract some investment capital, and have been able to maintain relatively stable shares of tight gas production at four per cent and seven per cent respectively. Large-mid-sized producers are defined as those with annual production that falls into the 100 to 150-million cubic feet per day (MMcf/d) range. Majors are defined as companies that produce 500 MMcf/d of gas. Examples in the Peace are Encana, Shell Canada and Tourmaline. “Operated” production is wellhead gas production attributed to the company who is maintaining it (the operator). Although wells only have one operator, it can be owned by more than one company. Its production is shared amongst them. dcreporter@dcdn.ca

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education

submitted photo

new trades centre for college: Encana representatives joined NLC staff in Energy House for the presentation of a $300,000 cheque. The money will go towards a proposed new trades training centre. Left to right: Tyson Pylypiw (Encana Manager, Community Relations and Aboriginal Relations), Jeff Beale (Encana Senior Aboriginal Relations Advisor), Brian Lieverse (Encana Senior Community Relations Advisor), NLC President and CEO Dr. Bryn Kulmatycki, NLC Vice-President Finance and Corporate Services Anndra Graff, and NLC Board of Governors Chair John Kurjata.

NLC debuts new trades bursary College seeking donors to fund award Mike Carter

Pipeline News North

Northern Lights College in Dawson Creek is looking to honour one of its own—retired Dean of Trades and Apprenticeships Rene Tremblay. A new bursary, the Rene Tremblay Award, is now available for trades and apprenticeships students at the school. But the school needs donations to fund it. The school wants to give out the award on annual basis. The NLC Foundation is currently accepting donations for the award, and has promised to match any it receives.

“The years I spent at NLC were some of the most rewarding of my career,” Tremblay said in a statement. “I hope this award can help a number of students to get through their programs successfully.” Tremblay earned praise from Julie Bourdon, Progress Energy’s advisor to NLC. “We are happy to see Rene’s leadership and passion for the trades recognized by the creation of (this award),” she said. Students can apply for the award through the school’s financial aid officer at any NLC campus until January 25. dcreporter@dcdn.ca

FILE PHOTO

Trades students at Northern Lights College are getting a boost with a new trades bursary.


OCTOBER 16, 2015

WEAVER

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T H E A U C T I O N A D VA N TA G E

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PIPELINE NEWS NORTH •

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UNRESERVED AUCTIONS www.weaverauctions.com

2006 PETERBILT TRI-DRIVE 50 TON WRECKER TRUCK

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PRELIMINARY EQUIPMENT LIST TRUCKS: • 2014 Western Star 4900SA t/a truck, 48 in. sleeper, * AB CVIP 2005 WESTERN STAR TRI-DRIVE WATER TRUCK • 2006 Peterbilt 378 tri-drive truck, Century 9055 50 ton wrecker, 3 stage recovery boom, Cat C15 Acert eng, 48 in. sleeper, * AB CVIP 2005 Western Star 4900SB t/a truck, day cab, * AB CVIP 2004 Freightliner Classic t/a truck, Cat 3406 eng, * AB CVIP 2003 Western Star 4900SB t/a tilt deck truck, Series 60 Detroit, * AB CVIP 2006 Mack Granite t/a truck, 460 Mack, fifth wheel 2004 Mack Granite t/a truck, 460 Mack, fifth wheel 2006 Western Star 3086S, tri-drive tank truck, Detroit eng, * AB CVIP 2004 Western Star 3086S, tri-drive vacuum truck, Cat C15 eng, *AB CVIP 2005 Western Star 3086S, tri drive water truck, Detroit, 18 spd, * AB CVIP 2006 International 7000 series, 6x4 water truck, DT466 eng, * AB CVIP 1988 Ford 600 service truck, 4.5 ton short hook picker 1975 Ford s/a grain truck, red, gas, wood box, *AB Reg 2006 WESTERN STAR TRI-DRIVE TANK TRUCK 1999 Terragator 8104 Air Max 70 ft. floater truck, JD engine, auto TRAILERS: 2012 FellingXF-110 tri-axle equipment trailer, *AB CVIP 2013 BWS 40JD2X t/a jeep, AB CVIP • 2001 Hutchison tridem tank trailer 1990 Nahanni 14 ft. t/a gravel pup trailer • 2013 Look 7x14' t/a cargo trailer 2013 Rainbow 12' t/a equipment trailer • 2009 United 7x14' t/a cargo trailer 2004 6x12 ft. s/a utility trailer, 15 in. tires • S/A utility trailer, 14 in. tires PICKUPS: 2011 GMC e-cab 4wd • 2010 Ford F350 King Ranch c/c 4wd 2010 Ford F350 c/c flat deck, 4wd • 2006 Dodge Ram 3500 4wd c/c (3) 2008 Toyota Tundra 4wd • (2) 2007 Dodge 2500 4wd • 2007 GMC Sierra 2005 Dodge Ram 2500 4wd • 2002 Ford F550 flatdeck truck, 4wd 2006 Chev Avalanche 4wd SUV • 2004 GMC c/c 4wd • 2004 Dodge Ram 1500 4wd, quad cab • 2003 Ford F150 E-cab 4wd • 2003 Chev Silverado c/c CAT D6M LGP CRAWLER

CRAWLER, SKID STEERS and LOGGING: 1999 Cat D6M crawler LGP crawler, 6-way blade, winch, 8,477 hrs, pro-heat • Beales brush rake to fit D6D • JD 793 feller buncher, 20 in. roto saw • 2009 Bobcat S150 skid steer, 2,028 hrs • 1981 Bobcat 843 skid steer, 54 hp • 1985 Case 1845B skid steer, 45 hp, hand controls, bucket, pallet and bale forks • ATTACHMENTS: Bobcat hyd. angle blade • Lowe hyd. skid steer auger, 12 and 18 in. bits, unused • 84 in. log grapple, unused • (3) 94'' skid steer dozer blade/snow pusher • (3) 84'' skid steer angle snow blade • 72 in. pallet fork extensions • 82'' heavy duty 3pt rotary tiller • 2004 JD 62 in. mid-mount mower • 2004 JD 3pt. rototiller •

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OCTOBER 16, 2015

th

55 Annual

Oilmen’s Bonspiel $50,000 in prizes! SCHEDULE OF EVENTS Wednesday, November 11, 2015 6:00pm- Opening Ceremonies 4:00pm -Opening Draws 7:00pm - 10:00pm - Appetizers

Thursday, November 12, 2015 7:00am - 10:00am - Breakfast 8:00am - 5:00pm - Draws 6:00pm - Stag & Entertainment

Gentlemen get your tickets for Dinner from Providing Land Management, Environmental and Curtis Schafer 262-9453 Archaeology services in the Peace Region www.roynorthern.com

Independent Plumbing & Heating Supplies 10020-93 Ave, Fort St. John

250-785-6679

Sweep hard and hit the broom!!!

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Congratulations and welcome to all the participants to the Annual Oilmens Curling Bonspiel!

We would like to welcome all the curlers to this years Annual Oilmen’s Bonspiel! R0011123271

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OCTOBER 16, 2015

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oilmen’s

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First 32 teams entered recieve A NEW SET OF CURLING SHOES

SCHEDULE OF EVENTS Friday, November 13, 2015 7:00am - 10:00am - Breakfast 8:00am - Midnight - Draws Noon - 4:00pm - Appetizers 9:00pm - Dance to Live DJ Music @ Curling Rink ~Midnight Lunch~

Saturday, November 14, 2015 7:00am - 10:00am - Breakfast 9:00am - 2:00pm - Draws 3:00pm - Presentations at the Curling Rink

You work hard, so enjoy and play hard at this year’s Oilmen’s Curling Bonspiel!

Good luck to all curlers at the Oilmens Annual Bonspiel!

Good luck, enjoy the Oilmens Curling 12208 242 Rd. Bonspiel ! info@poorboytrucking.ca

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OCTOBER 16, 2015

Progress taps former MP as local liaison

As an independent consultant, Jay Hill will focus on local government relations Jonny Wakefield

Pipeline News North

Jay Hill, the Peace Region’s former MP and a one-time cabinet minister, has signed on with Progress Energy to help the drilling company improve its relationships with local governments. Hill confirmed he had been retained as an independent consultant with the company Sept. 1, saying he would be “continuing the work they’ve done in building relationships with local representatives” in the Peace Region. The government relations file is key for Progress, one of the few companies drilling in B.C. since the oil downturn. The company made headlines in recent months when it was revealed its fracking operations caused a 4.4 magnitude earthquake, while its policy requiring employees to live in worker camps has raised concerns from local businesses and elected officials. Hill retired from politics in 2010 after 17 years as the MP for Prince George-Peace River. He previously served as House Leader and was a key figure in the 2008 coalition dispute, while his involvement in a deal between Progress and Malaysian state oil company Petronas was found to have breached the Conflict of Interest Act in 2013. He said he had previously consulted for both Apache Canada and Spectra Energy. Hill, who now lives in Calgary, returned to

file Photo

The government relations file is key for Progress, one of the few companies drilling in B.C. since the oil downturn. the region in September to meet with officials in Fort St. John and Hudson’s Hope, MLA Pat Pimm and Peace River Regional District Board members. Progress’s camp policy, which requires employees and contractors to stay in company work camps, has been “the biggest concern” from local leaders, Hill said. Progress says the policy will improve public safety by keeping vehicles off the road, while others say confining employees to camps is bad for business. “It’s a difficult one, in the sense you have some members of the public who are quite concerned about dust, traffic, people (who) aren’t respectful and spread garbage on the roadside. So one element of the public is quite

happy (with the policy),” Hill said. “Then you get the other people, especially independent business people who have concerns on the opposite end—if you restrict people to camps, obviously they’re not going to be eating in restaurants, they’re not going to be shopping in town, they’re not going to be staying off-site in an RV park or a hotel or an apartment.” “So you get conflicting views from the general public, so that makes it a greater challenge for the company,” he added. He said he would be reporting back to the company in the coming weeks to discuss some of those concerns. reporter@dcdn.ca

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OCTOBER 16, 2015

PIPELINE NEWS NORTH •

partnerships

19

Dawson Creek council, chamber endorse TransCanada pipelines

Mike Carter

Pipeline News North

Two pipelines that will ship Northeast B.C. natural gas to two major liquefied natural gas export facilities on the West Coast received endorsements from the City of Dawson Creek and the Dawson Creek & District Chamber of Commerce in September. The Prince Rupert Gas Transmission pipeline and the Coastal GasLink pipeline — both TransCanada Corp. projects — will feed gas to Petronas’ proposed Pacific NorthWest LNG plant on Lelu Island and Shell Canada’s proposed LNG Canada plant near Kitimat, respectively. “We need to get our product out to markets,” Chamber of Commerce Executive Director Kathleen Connolly said. “Without pipelines, we can’t access those markets. It just needs to happen.” In a letter to Dean Party, president of the Prince Rupert Gas Transmission project, Mayor Dale Bumstead said he was pleased to offer the city’s endorsement for both projects, which was given at a Sept. 14 council meeting. “The Peace Region is in line for a large economic boost related to increased natural gas exploration, production and processing,” Bumstead wrote. “In Dawson Creek, the increased upstream activity means

‘We need to get our product out to markets. Without pipelines, we can’t access those markets. It just needs to happen.’

ongoing business for the energy service sector, transportation, retail and other services.” The LNG Canada project stands to have the largest impact in the South Peace, as both Shell Canada and Encana Corp. (who is a partner with Mitsubishi, a 15 per cent partner on the project) have primary lease rights in the region. Pacific NorthWest LNG will have a larger impact on the North Peace, where Petronas subsidiary Progress Energy is the largest holder of drilling rights in the Montney play. The Costal GasLink pipeline, which originates in Groundbirch and terminates in Kitimat, is facing resistance from members of the Unist’ot’en clan who are refusing workers access to Wet’suwet’en land south of Houston. dcreporter@dcdn.ca TransCanada PHOTO

Workers lay down pipe on a TransCanada project in Oregon. Two of the company's Peace Region pipelines received endorsements from the City of Dawson Creek and the Dawson Creek Chamber of Commerce. R001697743


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• PIPELINE NEWS NORTH

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Women in Energy event a success Bronwyn Scott

Pipeline News North

After a successful turnout at the first Women in Energy Week networking reception in Fort St. John, similar events in the region are likely on the horizon. About 35 people attended the local event at the Pomeroy Hotel on Monday evening to network, share a few snacks and learn about how the B.C. Women in Energy Network hopes to make a difference in Northeast B.C. “Like many industries, the energy industry is considered non-traditional for women, it’s generally male dominated,” said Ellen Bird, executive director of the B.C. Women in Energy Network. “Even though the gender gap is narrowing, a gender gap still exists. Women currently represent a fraction of the energy industry, and are even scarcer in engineering and other technical fields that are the lifeblood of this business.” As Northeast B.C. is considered the energy hub of the province, the B.C. Women in Energy Network is expanding its reach to support the success of women in the industry here. After an extensive study exploring the barriers that women in the energy sector face, its now looking to overcome those hurdles to support women’s participation in the field. Part of that effort is creating a network for women, a concept that was well received by those in attendance at Monday’s event. “It looks like a really good event and I hope that they do more of this kind of thing . . . I think it’s very empowering, I think it’s good,”

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Miranda Polgar, senior manager of retail solutions at the North Peace Savings and Credit Union, speaks with a group of ladies at the Women in Energy networking reception, which celebrates the first annual B.C. Women in Energy Week, at the Pomeroy Hotel in Fort St. John on Oct. 5. said Penny St. Pierre, in an interview. St. Pierre works locally as a navigator for New Relationship Trust, an independent non-profit organization based in Vancouver that’s dedicated to helping First Nations through capacity building. “I navigate my way out to the communities and I work with them under the format of education and training,” St. Pierre said. “Education and training leads to employment, so we want to come to these kind of events and find out what’s happening for jobs and in industry, because that’s the area that we live in.” Alysson Davison, who works with Spectra Energy, attended to meet others like her who have overcome some of the challenges of being a woman in the energy field. “Oil and gas has typically been male driven and male dominated. Now, we’re seeing more stronger characters, especially Northeast B.C., where we have a lot of women in good positions to make a difference, to have balance in the community, as well as come together in this kind of forum where we’re going to learn and share together,” Davison said.

Another attendee, Jennifer Beebe, an external relations advisor with Shell Canada, did some research before the event and is considering becoming part of the B.C. Women in Energy Network. “For me, it’s more just getting to know the people in the communities… there’s a lot of people in Calgary that do what I do, but not so many people in Fort St. John, so it’s really nice to just get out and meet everybody,” Beebe said. “Engineers, different positions will have different kind of professional groups that they belong to, and it would be really good to have something that we belong to as women. “It’s very cool that we all have that same connection,” she said. At the close of the network’s presentation, organizers encouraged those in attendance to ask their employers for sponsorship to help along the development of a supportive network for women in the energy industry. peacereporter@ahnfsj.ca


OCTOBER 16, 2015

PIPELINE NEWS NORTH •

21

business Dawson Creek firm named best Aboriginal business

Mike Carter

Pipeline News North

MIKE CARTER PHOTO

Doreen Shadow (left) and her partner Lyle Pringle pose with one the several trucks in their fleet Thursday afternoon in Pouce Coupe. The couple recently learned they had been awarded Best Business of the Year in the threeto-10 person enterprise category of the BC Aboriginal Business Awards. weeks while we were wondering if we were going to win.” Soon after setting up on the new property, a camera crew from Vancouver arrived to film a three-minute video about the business that will be shown at the awards ceremony. Kamloops-based All Nations Trust Company nominated Shadow and Pringle. This year marks the seventh anniversary of the BC Aboriginal Business

Awards. “Aboriginal entrepreneurship is key to British Columbia’s growth and prosperity,” Premier Christy Clark said in a statement. “(Our) aboriginal entrepreneurs continue to create opportunities throughout the province, and (this) is a great opportunity to celebrate their success.” Fifteen aboriginal businesses will be honoured in next month’s ceremony.

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A former Dawson Creek business will be honoured at the upcoming BC Aboriginal Business Awards in Vancouver. RNN Sales and Services, which recently relocated to Pouce Coupe, will collect the Business of the Year award in the three-to-10 person enterprise category at a gala dinner awards ceremony at the Hyatt Regency Vancouver Oct. 14. “It’s pretty awesome,” co-owner Doreen Shadow said over the phone from her new office Thursday morning. “We had to keep it under our hat. We found out at the end of August, but because they had to contact (the runners up), they didn’t want us to get too loud about it.” Co-owned by Shadow and her partner, Lyle Pringle, RNN Sales and Rentals operates a fleet of 12 mobile treatment centres that service oil and gas companies throughout the region. Shadow is a member of the Sturgeon Lake Cree Nation and is a registered nurse with more than 17 years of experience. She was born in Dawson Creek and raised in Fort St. John. The team at RNN consists of fully qualified emergency medical responders and technicians, paramedics, and nurses. RNN also owns a 540-acre shale pit east of Dawson Creek on the Spirit River Highway. Shadow says the new location in Pouce Coupe will help the business grow. “We were crammed into a city lot in Dawson Creek,” she said. “We were moving the last two

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The BC Aboriginal Business Awards are presented by the BC Achievement Foundation in partnership with the Ministry of Aboriginal Relations and Reconciliation, and are supported by New Relationship Trust, BC Hydro, Teck Resources, Canadian National Rail Co., Encana, Spectra Energy, and MNP. dcreporter@dcdn.ca


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infrastructure

Plateau Pipeline open house set for Fort St. John Mike Carter

Pipeline News North

A company seeking to build a 160-kilometre pipeline from Wonowon to Taylor will hold an open house in Fort St. John Oct. 21 in conjunction with the British Columbia Environmental Assessment Office (EAO). Plateau Pipeline Ltd.'s proposed Northeast B.C. Expansion project would add 75,000 barrels a day of condensate and natural gas liquids to the company's system. Plateau is a subsidiary of Calgary-based Pembina Pipeline Corp. The proposed pipeline must first obtain an environmental assessment certificate before it can proceed. Before Plateau can apply for a certificate, the EAO has to approve a list of specific areas of study in relation to the project, which can include aspects of the natural and human environment that have a social, cultural, historical, ecological, scientific, economic, or other importance. The EAO is asking for the public to attend the

open house to comment on an established list of areas that will be impacted by the project as it moves through an ongoing environmental assessment. A list of these study areas will be provided at the event. The pipeline will run from the Highway 97/ Blair Creek area north of Wonowon to an existing terminal in Taylor. The company has noted that the need for a pipeline in the area is based on its desire to reduce truck traffic on local highways. Up to 100 trucks per day are currently required to transport gas, Plateau says. Plateau requested earlier this year that the project be allowed to forego an environmental assessment, but later withdrew the request. "We (withdrew) this request to ensure that all First Nations and public concerns are identified and fulsomely addressed," Pembina spokesperson Jason Fydirchuk said in an email. In April, the Peace River Regional District (PRRD), in response to the company's original request for exemption, sent a letter to the EAO asking that the project undergo an assessment. "The project description does not contain

handout Photo

sufficient information on the pipeline route along private property," the PRRD said in a report tabled April 23. About 46 per cent of the pipeline's right-ofway is within the Agricultural Land Reserve. About 400 workers will be employed during the 12-month construction period of the proposed project. If it goes ahead, about six people will be employed full-time after construction throughout the pipeline's 25-year lifespan. Construction crews working on the proposed project would 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. If given environmental approval, the project has an expected in-service date of 2017. The open house will be held at the Pomeroy Hotel & Conference Centre's Marie Room, located at 11308 Alaska Road, from 4:30 p.m. to 8 p.m. dcreporter@dcdn.ca


OCTOBER 16, 2015

PIPELINE NEWS NORTH •

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• PIPELINE NEWS NORTH

OCTOBER 16, 2015

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Pipeline News North

A Fort St. John business has won a major accounting firm’s Entrepreneur of the Year award. Steve Troyer and his company, Troyer Ventures, won an award in the Business Services category for the Ernst and Young Entrepreneur of the Year Pacific 2015 Awards, meant to honour B.C. businesses. Troyer said it was an “honour” to win the award. “Building the business is not the work of one man,” he said. “It’s just a great recognition of all the workers and leaders and

the staff that we have, the suppliers, and the support for many years from service providers.” Troyer said his business, which hauls fluid for oil and gas producers in the region, won because of his company’s sustainability, growth, and profitability, among other factors. The company's customer list includes Shell, Encana, and CN Rail. Ernst and Young handed out awards to a variety of companies in 11 categories. Troyer beat out two other competitors in its category. reporter@ahnfsj.ca


OCTOBER 16, 2015

PIPELINE NEWS NORTH •

25

crews get a lesson in oil spill response

WILLIAM STODALKA PHOTO

William Stodalka

Pipeline News North R0011074743

About 100 oil and gas workers attended a training session along the Beatton River on Sept. 17 to learn what to do in the event of an oil spill. No oil was actually spilled into the river, and nothing was put into the water to simulate oil, but it still served as a lesson for the "greenhorns" — as instructor Doug Gibson described the attendees — as they worked through the measures to follow were an actual spill to take place. The session, put on by Western Canadian Spill Services, was one of about 22 spill response lessons the company puts on annually, according to Shannon Jarrell, WCSS's training and communications coordinator. Spill response is important, she said, as a spill could cost oil companies $1 million per kilometre of affected shoreline to clean up. "If you're dealing with a river situation, that could double right away," she said. In its most basic form, two long lines of boom equipment would form a V-shaped funnel to a single point at the river, called the recovery point. People on shore would hold rope to make sure these two boom lines stay in place in the water, using their own feet or another object as anchors. The river would filter through a skimmer to separate the oil from the water. The oil would then be pumped out to a waiting receptacle. Jarrell said it's important that local companies learn about these procedures. “Spills can cause so much environmental damage, and they can be very expensive,” she said. “The more awareness industry has to use the equipment, the better off they are.” reporter@ahnfsj.ca

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OCTOBER 16, 2015

research

cumulative impacts

The buzzword that’s changing resource development Jonny Wakefield

Pipeline News North

When the Blueberry River First Nation launched its lawsuit on resource development and treaty rights in March, it included a map of its traditional territory. The map is scattered with multi-coloured dots and lines representing pipelines, gas wells, disposal and water extraction sites and forestry cut blocks. Taken together, the dots form a blob that covers the entire northeast. An emerging field of research aims to determine the overall impacts of that blob on the people, animals and environment of the region as a whole. The field is known as cumulative impacts (or effects) research, and accounting for those impacts is drastically changing how resource projects are considered for approval. The field dates back to the 1980s, but ramped up resource development and a changing climate have brought the issue to the fore. "For whatever reason, it seems in the past five years the buzzword ... cumulative effects has taken hold," said Chris Buse, project lead with the University of Northern B.C.'s new Cumulative Impacts Research Consortium. Buse was in Dawson Creek in September for a presentation to the regional board on the research group, which launches this fall. The basic idea behind cumulative effects is that the overall impact of resource extraction is "greater than the sum of its parts," Buse said. Where current environmental assessments tend to focus on managing a project's risk to its immediate area, cumulative impacts assessments are much broader. " "To put it in layman's terms, we're interested in everything," Buse said. He gave the example of a gas well. "We go out and say great, we've got this 200 metre by 200 metre square on the earth, and that's the area that's going to be impacted by this particular gas well." While some environmental assessments stop there, cumulative impacts researchers go further. "Sure, this 200-metre area is going to be disturbed and we want to know the impact on that immediate area, but the air quality of the airshed it occupies is certainly a lot bigger than that 200-metre square," he said. "We've got a highway running to that well pad — is there going to be increased traffic on that?" From there, the well pad's impacts spiral outward.

JONNY WAKEFIELD PHOTO

Chris Buse, project lead with the University of Northern B.C.’s new Cumulative Impacts Research Consortium, speaks to the Peace River Regional District board. "The whole idea of cumulative effects is trying to broaden the impact of that one well," Buse said. "That well might be sitting in the backyard of a hundred other wells, so what does the environmental assessment process have to say about (the overall impacts of) those other wells?" That idea forms the crux of Blueberry River’s lawsuit, a sweeping legal challenge claiming that decades of government-permitted resource development have undermined treaty rights in its traditional territory. In a submission to the B.C. Supreme Court, the nation argues the province has "consistently made choices to undertake or allow land alienation, resource extraction and industrial activities in the traditional territories upon which the nation's culture, economy and treaty rights depend." A lawyer for the First Nation said the case is in its very early stages, and no trial date has been set. Cumulative impacts are already taken into account in some environmental assessments. "Our contention is (cumulative impacts assessments) are not done well," Buse said. "Part of the reason they aren't done well is because we don't have the tools and the data to do it well, that moves beyond just environmental impacts." In May, the B.C. Ministry of Forests Lands and

Natural Resource Operations rolled out its cumulative effects framework, a revamped document governing environmental assessments. "Given the increased amount and diversity of resource development activity in recent years, government has recognized and is acting on the need to look at resource development projects on a regional basis, as opposed to a sector-by-sector or project-by-project basis," the ministry wrote in a press release. The Peace River Regional District recently began considering similar impacts when reviewing applications for worker camps, asking applicants to submit a document known as a socioeconomic effects management plan. Buse acknowledges the criticism of cumulative impacts assessment — that projects will bog down in a sprawling regulatory process. But he doesn't see it that way, saying that fully accounting for a project's impacts will win over people skeptical about resource development. "If industry is really in the business of doing due diligence ... if they want some sense of social licence from people in the communities supported by these resources, from my viewpoint, it's industry doing what it's supposed to be doing," he said. reporter@dcdn.ca


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OCTOBER 16, 2015

PIPELINE NEWS NORTH •

infrastructure

29

Nova Gas eyes expansion north of Groundbirch Mike Carter

Pipeline News North

A pipeline expansion is being proposed near Groundbirch that will head in the direction of Tower Lake, one of a number of similar projects slated to begin over the next several years, the company behind the pipeline says. Nova Gas Transmission Ltd. (NGTL), a wholly-owned subsidiary of TransCanada Corp., has submitted an application to the National Energy Board (NEB) to add a northbound expansion line to its existing Groundbirch Mainline Loop, and other existing NGTL pipelines. The company submitted its application to the board on Sept. 2. Earlier, on May 29, it had sub-

mitted a project description, triggering NEB’s engagement and outreach activities. The 87-kilometre, 36-inch diameter pipeline will carry natural gas from the County of Saddle Hills in Alberta to the Groundbirch area. Aboriginal and stakeholder engagement began in the second quarter of 2014 along with environmental technical surveys and other field studies. Subject to regulatory approvals, TransCanada hopes to begin pipeline construction in the second quarter of 2017, with an anticipated completion and inservice date in late 2017. “We are advancing a large number of projects over the next several years to expand capacity

in response to growing natural gas production and increased market demand,” TransCanada spokesperson Davis Sheremata said. Open houses for the Towerbirch expansion were held in August in Bonanza and Groundbirch. The NEB has made $150,000 available through its participant funding program, which will be distributed to eligible individuals and groups to participate in the regulatory process hearing. Applications for funding will be accepted up until 60 days before the first day of the oral portion of the hearing. A date for the hearing has yet to be determined. dcreporter@dcdn.ca

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PIPELINE NEWS NORTH •

31

CAREERS

Cities want help in spill clean up efforts Jonny Wakefield

Pipeline News North

Delivering the online world

TM

B.C. local governments want Ottawa and Victoria to contribute more to toxic spill cleanup. Delegates at the Union of B.C. Municipalities (UBCM) convention endorsed a motion in early October, calling on senior governments to "expand the scope" of risk assessments for hazardous and noxious substances, asking the province and the feds to chip in funding for local spill planning and response. The motion also asks the federal government to create a "comprehensive emergency response plan and procedure" for cleaning up oil and other toxic spills. The motion was endorsed by a

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Visit canadapost.ca/careers and search ID: J0215-1855 Operator: KC Sign-off: Brian /JOB Angela Proofread:for KB full details Delivering the online world on this position. Des renseignements en français sur ce poste sont disponibles en ligne à postescanada.ca/carrieres.

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That’s the kind of outlook we are striving to achieve for our employees at Spectra Energy. We value diversity and inclusion, openness and teamwork. Ours is a high-performance culture where you’re encouraged to stretch your capabilities and exercise creativity in effecting change and shaping the future. Spectra Energy is one of North America’s premier pipeline and midstream companies. Our approach extends beyond our offices and facilities into our neighbourhoods, towns and cities—through community and economic development partnerships, we cultivate talent and grow leadership.

Emergency Preparedness & Security Coordinator A mission-critical role—Fort St. John, BC You will be a key player in our emergency preparedness and security strategy. Leveraging your knowledge of industry best practices, you will develop internal and external contacts to ensure our emergency response procedures are integrated with local and regional emergency measures. You will also deliver emergency response and security exercises to internal/external audiences. Your diploma or degree is supported by 5 years’ emergency preparedness and security experience in the oil & gas industry, as well as knowledge of applicable regulations and preferably GIS applications. You have the communication skills, analytical thinking and conceptual mindset that allow you to perform well in stressful situations. You have a driver’s licence and can expect frequent travel, after hours work and to be called on in emergencies.

For more information on this position, and to apply online by October 23, 2015, please visit: spectraenergy.com/careers. We thank you for your interest. Please note that only those shortlisted will be contacted.

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majority of delegates, making it one of the union's official lobbying items. There have been 3,786 toxic spills reported in B.C. in 2014. Of those spills, 552 occurred in the Peace Region. UBCM president Sav Dhaliwal told the Alaska Highway News earlier that spill response was a gap in many emergency preparedness plans. "Most of our communities are faced with some sort of transportation of oil or other goods that could be dangerous to both the environment and local people," he said. reporter@dcdn.ca


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10 Acres in Charlie Lake

• Fantastic 4.97 acre property, 10 minutes to Fort St. John • Perfect place to sit a modular home, or build your dream house • Close to all recreational amenities Charlie Lake has to offer • Easy commute to town • For more info www.century21.ca/Property/101079794

• 1350 sq. ft. + full basement built in 2009 • Alder cabinets, vaulted ceilings + hardwood floors • 3 bdrms, 2 full baths • Fenced for horses with riding area • More info at www.century21.ca/101087842

$205,000

Country Paradise on 1/4 Section

• 3000 sq. ft. home on 159 acres with views of Peace Valley • Custom landscaping including water paths, walking bridge, perennials and arbours • Fully fenced and x-fenced and feature 6 stall barn, and set up for cattle • Heated shop (200V), 60x32 storage shelter, and rustic log guest cottage • www.century21.ca/101057686

Build your Mansion here

• 1/4 section of land, only 5 minutes to town • 60 acres of field & great views of the valley • New road access to property and many building sites • Lease revenue • For more info www.century21.ca/Property/101039068

$829,900

$749,000

Charlie Lake Executive on 4.5 Acres

1700+ Acre ranch with 2 houses

• Beautiful 2009 built custom home in Country Meadows Estates • 5 bedrooms, 3 baths, fully finished basement • Situated on 4.5 Acres in area of fine homes • More info at www.century21.ca/101098779

$799,000

$629,000

SIGNATURE POINTE

• Fantastic homestead, with 2 houses & 1700+ acres • Outbuildings include 44x80 shop, 50x90 tarp building, 60x80 lean to • 60x68 barn, with concrete floors • Property features a spring, and is powered by solar energy and generators • www.century21.ca/101091233

$2,950,000

Quality for life

SHOW HOME HOURS

Thursday to Friday 4-7 PM, Saturday & Sunday 2-4 PM #101-11203 105 Ave, Fort St. John

For Immediate Showings Call 250-889-7099

Visit our virtual tour at www.signaturepointe.ca

New Condos Starting at $284,900

GST Included

R0011126472

This home features a bright and spacious interior and distinctive architectural detail, all situated in a perfect Fort St John location. Built by local craftsmen using locally-sourced materials, Signature Pointe is a truly unique offering. The building is surrounded by expansive green space with sociable picnic area, leisurely walkways with benches, a secure outside bike rack, drive-up access, ample visitor parking and community amenities, including exercise room, games room and meeting room. Several floor plans to choose from that feature a contemporary color scheme, radiant infloor heat, airy 9’ over-height ceilings, 2 parking stalls and storage locker.


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