pipeline news - august 2012
DESCRIPTION
Pipeline News - August 2012TRANSCRIPT
1 - on - 11 - on - 1with Ed Dancsokwith Ed Dancsok
Page A4Page A4
C&B Oil eldC&B Oil elda family businessa family business
Page B1Page B1
PIPELINE NEWSSaskatchewan’s Petroleum MonthlySaskatchewan’s Petroleum Monthly Canada Post Publication No. 40069240
August 2012 FREE Volume 5 Issue 3
Not in Short SupplyNot in Short SupplyFocusing on the oilfield supply shops
erhard poggemillererhard poggemillerthe man in kerrobertthe man in kerrobert
Page C3Page C3
The green nted man, Alex Tino, is applying a powder coa ng to the inside of a tubular pipe at the internal coa ng shop at Rev Energy Services in Kerrobert. Photo by Geo Lee
A2 PIPELINE NEWS August 2012
SECTION A4 1-on-1 with Ed Dancsok
7 Opinion
9 MRC Mid eld Making A Splash
15 TS&M Supply Expanding
19 Do All Acquires Hyduke
20 Stay Safe In The Heat
22 Wil-Tech Taking High Road To Service
34 Sask. Divided On CCS
INSIDE
SECTION C1 Apex Solu ons
3 Erhard Poggemiller - The Man In Kerrobert
6 Rev Energy Ramping Up Business
10 Two Irishmen Land Jobs With Sandpiper
12 Partners In Compliance
15 Kerrobert Town Pro le
25 Lloydminster's Colonial Days
26 Gibson's Simulator
SECTION B1 C&B - A Family Business
4 Workplace Safety Rollout
8 Rigcharge By Revamp
10 NOV Acquires CE Franklin
15 Diesel Fuel With Fry Oil
17 Shell's CCS Gets Green Light
19 FNRM Raising Capital
Stacey [email protected]
PIPELINE NEWSNEWSSaskatchewan’s Petroleum Monthly
Sept. 2012 FocusContact your Sales Rep
to be a part of the focus edition
SE Sask and SW Manitoba - for all of your advertising needs contact:Ph: 306.634.2654 Fax: 306.634.3934
Cindy BeaulieuSales Manager
Candace [email protected]
Deanna [email protected]
Kristen O’[email protected]
Teresa [email protected]
NW Sask - for all of your advertising needs contact:
Cell: 780.808.3007 Fax: 780.875.6682
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SW Sask - for all of your advertising
needs contact:Ph: 306.773.8260 Fax: 306.773.0504
STIMULATION/THERMAL(DISTRIBUTED AT LLOYDMINSTER
HEAVY OIL SHOW)
QUARTER ACTIVE
RIGS
FLEET UTILIZATION OPERATING
DAYS*
2012 - 1st*** 540 798 68% 48,109
2012 - 2nd 161 805 20% 14,344
2012 - 3rd 433 817 53% 38,576
2012 - 4th 456 829 55% 40,625
Average
2012
398 812 49% 141,654
Historical Utilization
2009 2010 2011
Drilling Util. Drilling Util. Drilling Util.
219 26% 326 41% 417 53%
Wells Drilled Wells Drilled Wells Drilled
Rig Release Completed Rig
Released
Completed Rig
Released
Completed
8,360 9,342 12,145 13,566 12,877 16,071
PIPELINE NEWS August 2012 A3
TOP NEWS By Geoff Lee
Pipeline News
Calgary – Th e Canadian Association of Drill-
ing Contractors is cautiously optimistic it will meet
its revised forecast activity numbers for the rest of
2012.
Tight equity markets, global economic uncer-
tainty and the price of oil are the three main wild
cards that could aff ect how drilling plays out for
CAODC member companies.
“For the third quarter, we do see a bit of soften-
ing because of the junior and small cap companies
– the equity markets are getting pretty tight and
cash fl ow is tightening up,” said Nancy Malone,
vice-president of operations.
“We haven’t seen a signifi cant amount of rigs
being dropped, so we are cautiously optimistic in
terms of the utilization numbers we are projecting
in Q3.
“Small companies don’t have a lot of production
to fall back on.
“Th e smaller companies do a signifi cant
amount of drilling. When you look at the number
of companies there are, and the number of rigs in
our fl eet, they are a large part of our customer base.”
Th e second quarter ended June 30 with a utili-
zation rate of 22 per cent, slightly above the fore-
casted 20 per cent for Canada.
Malone thinks the forecasted 53 per cent
utilization rate for the current third quarter is also
achievable.
“We are pretty early in Q3. Everyone is pretty
comfortable with what they’ve got booked out in
terms of their equipment,” she said.
“We haven’t seen any signifi cant signs of that
being any diff erent. It’s only July 12, so we have all
of July, August and September to go.”
Th e utilization rate in Alberta had already risen
to 29 per cent at the beginning of the week of July
10, while Saskatchewan’s utilization rate was 49 per
cent and climbing.
Malone cautioned that the price of oil, which
stood at $84 in mid-July, and the economic tur-
moil in Europe could make it tougher for the small
drilling contractors to meet their forecast drilling
targets for the year.
“Th at’s where the bank part becomes part of
the equation. Th ey are looking at the bigger picture
and being a little more cautious in terms of their
dollars,” said Malone.
On the bright side, drilling was ramping up
quickly in July with the return of hot and dry
weather, but will fall short of last year’s summer
frenzy.
“Last year, we actually had a tremendous Q3,”
said Malone.
“Th at was mostly due to last spring – there was
so much rain. Th ere was fl ooding everywhere in
Saskatchewan and in Alberta then there were fi res.
“It was sort of the biblical year last year. If it
wasn’t fl oods, it was fi res and that prevented a lot of
our rigs going to work in Q2, so a lot of that work
got made up in Q3.
“We won’t see it as signifi cantly as it was last
year – June this year was very rainy.”
CAODC is also sticking with its May 29
revised lower well count that was down to 11,834
from 12,672 due to the industry trend to drill in-
creasingly complex horizontal wells.
“We are cautiously optimistic. We dropped
that number slightly from our original forecast, but
I think that’s a reasonable target to be achieving,”
said Malone.
“As drilling contractors, we’re not necessarily as
fi xated on the well count number as we are on the
operating days.
“Because of the long reach and the long hori-
zontal wells that we drill, the operating days are
staying fairly stable.”
CAODC expects to realize its prediction to
accumulate 141,654 operating days by the end of
2012 despite a continued labour shortage.
“We would still like to recruit back some of the
experienced people we lost in the last downturn –
the derrick hands and the drillers that are working
in diff erent careers now,” said Malone.
“We had a good last year and through this past
winter we had some good activity.
“I think most of our contractors have staff ed up
and they are hoping by getting them back to work
in the summer and the fall, we will see some stabil-
ity in the workforce.
“Th ere is always a need for experienced people.
Our contractors continually try to recruit them
back into the patch.”
COADC cautiously optimistic with forecast
Drilling and Service ActivityOnline or on Your GPS
Check the latest status of any rig in western Canada, hunt down leads for service or supply sales and know what your competitors are up to with the Rig Locator.
Subscribe today at riglocator.ca or call 1.800.387.2446
RIGLOCATOR.CA
2012 Total Number of Wells Completed (Western Canada): 11,834
2011 Final Numbers
2011 Total Numbers of Wells Completed (Western Canada): 16,0712011 Total Numbers of Wells Rig Released (Western Canada): 12,877
QUARTER ACTIVE
RIGS
FLEET UTILIZATION OPERATING
DAYS*
2011 - 1st*** 534 788 68% 47,495
2011 - 2nd*** 190 791 24% 16,339
2011 - 3rd*** 454 798 57% 40,754
2011 - 4th*** 489 804 61% 40,530
Average 2011 417 795 53% 145,118
Historical Utilization
2008 2009 2010
Drilling Util. Wells Drilling Util. Wells Drilling Util. Wells
351 40% 16,844 219 26% 9,342 326 41% 13,566
A4 PIPELINE NEWS August 2012
BRIEFS
Briefs courtesy Nickle’s Daily Oil Bulletin
Petrobank boosts Kerrobert THAI volumes in Q2
Petrobank Energy and
Resources Ltd. reports sec-
ond quarter 2012 produc-
tion at its Kerrobert THAI
project was 236 bbls of oil
per day, up from fi rst-quar-
ter 2012 production of 193
bbls of oil per day.
Th ese production vol-
umes represent actual sale
volumes for each period re-
ported, said Petrobank.
Wet weather in June
negatively impacted produc-
tion by preventing move-
ment of service rigs needed
for workovers on several of
the company’s wells. How-
ever, during this period, it
was able to maintain steady
THAI oil production.
Petrobank expects that oil
production will continue to
rise as the company main-
tains its balanced approach
of building out the THAI
combustion front.
As previously reported,
Petrobank has identifi ed
multiple opportunities to use
some of the existing wells on
its Saskatchewan lands for
conventional cold heavy oil
production. Th e company
expects to initiate this pro-
duction on fi ve wells by early
August.
By Brian Zinchuk Pipeline News
Regina - In 2008, Saskatchewan blew all previous land sales records out of the water with $1.12 billion in Crown land sales. Th e vast majority of that, $915.7 million, was in southeast Saskatchewan, driven by the push to explore and develop the Bakken play. During the 2011 Saskatchewan Oil and Gas Show, Oilman of the Year Scott Saxberg, CEO of Crescent Point Energy Corp., revealed that Crescent Point was behind $700 million of that year’s land acquisition, buying both Crown and freehold leases.
In August 2011, Saskatchewan hit an active drill-ing rig record on 122 rigs. In the meantime, North Da-kota’s Bakken play has seen its oil production shoot past all other states except Texas.
Now, four years after those phenomenal land sales, the 2008 leases are nearing their expiries. In June, Pipeline
News asked the Ministry of Economy what the results have been, and what to expect. Ed Dancsok, assistant deputy minis-ter of petroleum and natural gas for the Saskatchewan Ministry of the Economy, spoke on behalf the ministry.
Pipeline News: How much of the Crown land that was leased in 2008 has been proven up? Most? All? Half?
Ed Dancsok: As a gen-
eral rule, roughly 80 per cent
of leased lands return to the
Crown after the primary term
has expired. Th at has been the
historical trend. However, high
levels of oil well drilling activity in 2011 and to date in 2012
suggest the amount of land allowed to lapse at the end of the
fi ve-year term may be somewhat less than has historically been
the case.
For example, a review of drilling activity on those leases
due to expire in 2014 shows that approximately 85 per cent of
the leases at this point do not have a producing well and will
be terminated unless they are drilled by March 31, 2014. With
record land sale activity in 2008, obviously it would take record
drilling to equal the 80 per cent historical average. However,
we’re already at 85 per cent with 21 months still to go, so there’s
a reasonable chance less land will be allowed to lapse than is
normally the case. Time will tell.
One mitigating factor to consider is the extent to which
lessees conduct development drilling on leases that already have
a producing well. Economics may dictate that lessees focus
more drilling activity on leases that have a producing well on
them rather than drilling higher risk leases. Ultimately, it’s the
company’s decision to make
– drill to continue leas-
es, or drill on lands
with proven re-
serves.
Page A5
There’s still a lot of land left to prove
As a general rule, As a general rule, roughly 80 per cent roughly 80 per cent
of leased lands return of leased lands return to the Crown after to the Crown after
the primary term has the primary term has expired.expired.
Ed Dancsok
PIPELINE NEWS August 2012 A5
BRIEFS
Briefs courtesy Nickle’s Daily Oil Bulletin
NEB to hold hearing for Maple Creek pipeline abandonment
Th e National Energy
Board (NEB) will hold a writ-
ten public hearing to consider
an application by Enerplus
Corporation to abandon the
2.53-kilometre long Maple
Creek pipeline.
Th e pipeline, which crosses
the Alberta-Saskatchewan bor-
der, was constructed in 2005
and is located approximately
48 kilometres east/southeast
of Medicine Hat and approxi-
mately three kilometres east/
northeast of Walsh, Alberta, on
the Saskatchewan border.
Th e 114.30-millimetre
outside-diameter pipeline car-
ries sweet gas from Alberta
wells to facilities in the Maple
Creek fi eld in Saskatchewan.
Th e wells associated with
this pipeline are provincially
licensed. In its application, En-
erplus has indicated that these
wells will be abandoned, and as
a result, continued operation of
the Maple Creek pipeline is no
longer required.
Among the issues the NEB
will consider are public consul-
tation, measures taken and pro-
posed to abandon the facilities,
and potential environmental
and socio-economic eff ects of
the abandonment.
Members of the public
can participate in the hearing
in one of two ways: by seeking
intervenor status or by fi ling a
letter of comment.
Any person wishing to
intervene in the hearing or
fi le a letter of comment must
fi le the required documents
with the NEB and serve a
copy on Enerplus by Aug.
29, 2012. Th e board will
then issue the list of parties
and list of issues.
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PN: Th e standard expiry on a lease is fi ve years. If I am not mistaken, they have to drill one well per section to prove up a lease in that fi ve years, correct?
ED: Th ere are two types of dispositions in the southeast –
leases and exploration licences.
Leases have a fi ve-year primary term after which time an
annual continuance review is conducted.
Exploration licences have a two-year term in the southern
portion of the province, and conversion to lease is based on the
level of drilling activity. If the exploration license is converted
to a lease, the lessee has fi ve years before continuance review,
meaning seven years in total for lands sold as exploration li-
cences.
Th ere are a number of typical reasons for continuance be-
yond the primary term. However, in very simplifi ed terms these
include the appropriate level of drilling activity and achieving
production.
PN: How much land could potentially come up again in 2013 that was part of that 2008 grab?
ED: Technically,
the correct answer here
is “none.”
Leases sold during
a given year are provid-
ed a term-start date of
the following April 1.
Th erefore, those leases
defi ned as sold dur-
ing 2008 would have a
term-start date of April
1, 2009 and would not
be reviewed until 2014.
Applying the 80 per
cent historical factor, an
estimated 395,000 hect-
ares may be returned
to the Crown in 2014.
However, it should be
noted the high level of
drilling activity may
mean something less
than the 80 per cent.
It should also be
noted that leases selected from exploration licences sold in 2008
will not be eligible to revert to the Crown until 2016.
PN: How does one fi nd out which land will be available to be bid upon, and when?
ED: Companies can refer to the Oil and Gas InfoMap on
the Energy & Resources website. Th is provides shapefi les for
disposed Crown mineral lands, or industry can consult third
party software that displays disposed Crown mineral lands.
More sophisticated software programs also provide available
mineral rights. Th e ministry website is updated daily. Th ird
party software vendors receive monthly updates on disposition
status.
PN: How common is it for land that has been leased to be al-lowed to lapse at the end of a lease because it has not been devel-oped?
ED: It is not uncommon. As noted earlier, historically
roughly 80 per cent of leased lands revert to the Crown. How-
ever, given the level of drilling activity so far in 2012, the fi gure
may be something less than 80 per cent this year.
PN: Does the ministry expect some sort of mad dash of drilling over this year to prove up land? Or have we already seen that?
ED: First, a bit of perspective.
Last year – 2011 – was Saskatchewan’s second best year on
record for oil well drilling. Th ere were 3,528 oil wells drilled last
year, second only to 1997 when there were 3,608.
To May 31, 2012 there have been 1,110 oil wells drilled in
the province. Th is is ahead of the pace in 2011 when there were
1,014 oil wells drilled to May 31.
Th ese fi gures would seem to support the hypothesis that
industry is focused more on drilling than acquiring additional
lands. If present trends continue, we would seem to be on track
for an outstanding drilling year where oil is concerned.
Th at said, it should be noted we’re only fi ve months into
the calendar year and a good deal can happen between now and
December 31.
Right now, it would appear the level of drilling in Saskatch-
ewan suggests some priority is being given to proving up land.
However, over the second half of 2012, industry may still elect
to focus more drilling
on lands with proven
reserves, which would
mean a higher prob-
ability of more lands
reverting back to the
province. Time will tell
if industry chooses to
emphasize drilling ex-
piries or development
wells.
PN: As of June 13, Saskatchewan has 75 active drilling rigs. Is that about on track for what the ministry ex-pects, given a somewhat wetter spring? Accord-ing to Riglocator.ca, that’s almost exactly on par with 2011 and 2010 for this time of year.
ED: Th e short an-
swer would be yes, that’s
roughly on track.
A more complete answer would note that as of June 27,
2012 there were 68 active drilling rigs in Saskatchewan and a
further 64 down for a total of 132. Our active percentage was 52
per cent, the highest fi gure in Western Canada and well above
the national average (35 per cent).
Th ere were 135 active service rigs in Saskatchewan to June
27 and a further 63 down for a total of 198. We had the high-
est percentage (68 per cent) of active service rigs in Western
Canada, which suggests there may be an increase in the number
of active drilling rigs in due course.
Th ese fi gures change on a daily basis due to weather (e.g.
heavy rainfall) and other factors. For example, the modest dip
from June 13 to June 27 would be due to rainfall in the active
drilling areas during those two weeks.
However, I think it’s fair to say they’re roughly on par with
what we saw in 2011 and 2010.
Applying the 80 per Applying the 80 per cent historical factor, cent historical factor, an estimated 395,000 an estimated 395,000
hectares may be hectares may be returned to the Crown returned to the Crown
in 2014.in 2014.
A6 PIPELINE NEWS August 2012
Publisher: Brant Kersey - Estevan
Ph: 1.306.634.2654
Fax: 1.306.634.3934
Editorial Contributions: SOUTHEAST
Brian Zinchuk - Estevan 1.306.461.5599
SOUTHWEST
Swift Current 1.306.461.5599
NORTHWEST
Geoff Lee - Lloydminster 1.780.875.5865
Associate Advertising Consultants:SOUTHEAST
• Estevan 1.306.634.2654
Cindy Beaulieu
Candace Wheeler
Kristen O’Handley
Deanna Tarnes
Teresa Hrywkiw
CENTRAL
Al Guthro 1.306.715.5078
SOUTHWEST
• Swift Current 1.306.773.8260
Stacey Powell
NORTHWEST
• Lloydminster Randi Mast 1.780.808.3007
MANITOBA
• Virden - Dianne Hanson 1.204.748.3931
• Estevan - Cindy Beaulieu 1.306.634.2654
CONTRIBUTORS
• Estevan - Nadine Elson
• Estevan - Jordan Baker
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NEWSPIPELINE
Mission Statement:Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people.
EDITORIAL
It’s great to have a Tim Hortons and a new rec-
reation facility in the town where you live, but what
really attracts and retains workers and residents to
small communities in Saskatchewan is a good health
care and school system.
Th at’s the case in the town of Kerrobert where
construction is underway on the new $23 million
Kerrobert & District Integrated Health Centre to
replace aging facilities the community has outgrown.
Th e new centre will provide 24/7 emergency
medical services and a full range of community-
based services from long-term care and occupational
therapy to physical therapy and mental health and
addictions treatment.
Having a state-of-the-art hospital is certainly
a big draw for the growing oil and gas industry
throughout the Kerrobert area.
Questions about health care and schools top the
list of relocation inquiries to the town offi ce.
Major companies such as Enbridge, Northern
Blizzard, Alliance Pipeline and Penn West can oper-
ate more securely with the knowledge emergency
medical services are close by to treat any work-related
injury or illness.
Th e new centre will also attract additional high
paid health-care workers following the short term
economic impact of having 200 construction workers
living in hotels, motels, camps and rental housing.
Th e biggest supporters of the new health-care
centre are the residents and businesses in the area that
have already raised more than $4 million of the $5
million portion of the cost to the town.
Th e fundraising eff ort is also a refl ection of new
community pride as Kerrobert rides the crest of a new
Health care, K-12 magnets for small towns
economic boom driven by the oil and gas sector.
Th e K-12 school combined with the new health-
care centre make it easier for the town to market itself to
residents and new businesses that value health care and
education for their families.
Without the new hospital and health clinics, resi-
dents and mobile oil workers would be forced to make
a 30 to 40 minute drive to Kindersley to the south or
Unity to the north on Highway 21.
Th e new centre will provide care for all ages includ-
ing 30 long-term care beds for Kerrobert seniors.
Excitement and optimism over the construction
start of the health-care centre is spilling over to the up-
coming grand opening of the new reverse osmosis water
treatment plant on Aug. 3.
Saskatchewan Economy Minister Bill Boyd, whose
riding includes Kerrobert, has been invited to the open-
ing. He will talk about what the new treatment plant
will mean to economic growth in Kerrobert.
Last year, Kerrobert celebrated its 100th anniversary
and the community is already quickly moving to estab-
lish a solid economic base for the next 100 years, led
by the oil and gas industry and infrastructure improve-
ments.
When the word gets out that Kerrobert has a new
health-care facility and some of the cleanest water in the
province, it won’t be long before the quintessential Tim
Hortons comes to town.
Improvements to the existing hockey arena, the
hub of winter recreation, are also in the works which
will help keep the town on an economic breakaway for
months to come.
It’s a game plan for other like-minded communities
to follow.
PIPELINE NEWS August 2012 A7
PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR ARE WELCOME.Email to: [email protected]
OPINION Lee Side of LloydBy Geoff Lee
Thoughts From My Fingers By Jordan Baker
Th ree notewor-
thy oil pipeline
spills in Alberta in
May and June aren’t doing the industry’s reputation
any good, let alone helping to sell the proposed En-
bridge Northern Gateway pipeline to British Colum-
bians.
On June 18, approximately 230,000 litres of oil
spilled from a pumping station on Enbridge’s Atha-
basca pipeline, 24 kilometres from Elk Point, Alta.
Crews are still working to clean a spill of nearly
800,000 litres of oil on May 19 from a Pace Oil &
Gas Ltd. well about 200 kilometres from the North-
west Territories border, and 160,000 to 480,000 litres
of oil that spilled on June 7 from a Plains Midstream
Canada pipeline that ruptured beneath the Red Deer
River.
Environmental groups seized the series of acci-
dents, which includes a massive spill from a Plains
pipe last year, to call for a review on pipeline safety in
Alberta.
New Alberta Energy Minister Ken Hughes was
quoted in the Calgary Herald as he claimed the rep-
utation of the province “is governed by how we re-
spond when incidents like this happen, how industry
responds, how responsible they are.”
He went on to state, “In that respect, Alberta has
a very good reputation and has very high standards.”
However, environmental groups and opponents
of the Northern Gateway pipeline argue it doesn’t
matter how well the province responds to spills be-
cause any spill proves no pipeline is safe, no matter
how many regulations are in place.
Enbridge blamed the Elk Point spill on the fail-
ure of a fl ange gasket in the pumping station, which
goes to show laws and safety regulations alone cannot
prevent a spill from a mechanical fault.
In 2010, the province averaged nearly two pipe-
line failures a day, spilling 9,350 litres.
Pipeline safety is a critical issue for Alberta as the
province continues its eff orts to convince people in
the U.S. and British Columbia that the TransCanada
Corporation Keystone XL and Northern Gateway
pipeline proposals can be built without causing envi-
ronmental damage.
Polls consistently show the majority of B.C. resi-
dents are opposed to the pipeline, in part because they
fear that leaks will damage the environment.
Alberta’s arguments about economic benefi ts for
Western Canada fall short in B.C., the province of the
Green Party and staunch advocates of the environ-
ment.
As a former 10-year resident in B.C. including
Kitimat, the end point of the Northern Gateway proj-
ect, and a former employee of the B.C. Forest Service
in Nelson, it’s clear to me that British Columbians
value their environment above economic develop-
ment.
High unemployment all over B.C. has never been
a reason to keep people from staying or migrating to
that province.
For many B.C. residents, pipelines and the envi-
ronment are mutually exclusive with little or no room
for compromise.
For more than 10 years, environmental groups in
B.C. fought to defeat the development of the remote
Jumbo Pass ski resort near Invermere on the basis it
was home to at least one grizzly bear.
Th ey lost that fi ght, but the point is that most
B.C. residents live hundreds of miles from the pro-
posed pipeline route.
As with Jumbo, they can’t see what’s in it for them,
other than the fear of oil spills that keep occurring in
the province next door that will benefi t the most.
Promising to build a safe oil pipeline through
hundreds of kilometers of mountainous terrain ben-
efi t is a very tough sell in a province with the slogan,
Beautiful British Columbia.
Alberta pipeline spills ill timed
Enbridge’s Northern Gateway pipeline proposal
is getting some interest following a report that heav-
ily criticized the company’s handling of their pipeline
leak that dumped three million litres of crude oil into
the Kalamazoo River in Michigan in July 2010.
Th e report by the U.S National Transportation
Safety Board comes out as the public and government
review process continues for the Northern Gateway
project. Federal NDP Leader Th omas Mulcair, who
has previously established himself as an opponent of
Western Canada’s oil industry, has now predicted the
end is nigh for the proposed pipeline.
Mulcair said he will read the federal review of the
Northern Gateway proposal but that it won’t change
his “fundamental” view that it’s a bad project, and
that’s where Mulcair crosses the line from reasonable
skepticism to covering up his ears, closing his eyes
and shouting, “I’m not listening!”
His job is to read that document with an open
mind. Maybe inside, all the problems have a solution
and the proposal is bulletproof. By saying more infor-
mation won’t change his mind he’s just being a blind
politician.
Even so, based on the contents of the safety
board’s report, along with Enbridge’s reaction to it,
it would be hard to believe the project could move
forward.
With Enbridge’s next CEO, Al Monaco, saying
they made “lots of enhancements” in “various areas of
our business,” he’s just talking like a politician, by say-
ing nothing and blowing smoke up the undersides of
the media and the public.
Th e reports into Enbridge’s pipeline fi asco in
Michigan found that not only was there a leak in the
pipe, but personnel took 17 hours to respond properly
to the alarms alerting them to crude being pumped
into the Kalamazoo River.
If Monaco only speaks vaguely of enhancements
in various areas, then public confi dence in these sys-
tems can’t be very high. When I hear someone speak
like that, it leads me to two conclusions: the fi rst being
that he doesn’t care what anybody thinks, Enbridge is
his business and he’ll run their pipelines however he
sees fi t, and second, there are no enhancements at all.
If he had concrete solutions to the failures of the
older system, things that would actually put the pub-
lic’s mind at ease, it would be a great PR move to let
everybody know about those. When the public is pro-
testing the installation of further pipelines, it’s kind of
in Enbridge’s best interest to give out all the informa-
tion that could sway support in their favour.
Enbridge is a big company with smart engineers.
Th ey have people who could fi gure out solutions to
the problems that arose from the previous spill. I don’t
question the ability of their engineers to fi x the prob-
lems, but meanwhile, there have been a number of
other leaks in Albertan pipelines this year. Leaks are
rare, but they happen. Enbridge needs to get into spe-
cifi cs about how they are minimizing the risk.
If projects like the Northern Gateway pipeline or
the Keystone XL pipeline are going to move forward,
what are the specifi c “enhancements” or contingency
plans that will prevent three million litres of crude oil
to spill into Canada’s ecosystems?
When people think back to BP’s Deepwater Ho-
rizon spill in 2010, they’re reminded that it wasn’t one
failure but multiple failures. Well, what kind of fail-
safes will be enacted on this Northern Gateway pipe-
line that will
stop a mul-
tiple-sys-
tem failure
from oc-
curring?
With the leak into the Kalamazoo River, it wasn’t
just one failure. It was multiple problems. Not only
did the pipe leak, but the incompetent crew also de-
cided the best course of action was to pump more oil
through it. Twice they decided the best thing to do
was to pump more oil.
If that’s how their employees are acting in a time
of crisis, perhaps there should be an enhancement
to Enbridge’s hiring practices. Th at’s one of the en-
hancements they could let us know about. Maybe it
wasn’t a hiring issue but a supervision issue. Tell the
public what the enhancement to supervision is.
Th e issue of informing the public is relevant be-
cause of how it is our environments that are aff ected
when these companies have system failures. Th ey have
to earn public trust if they wish for their projects to be
embraced by the entire country.
When Mulcair said he can’t see the Northern
Gateway going ahead, he’s probably only saying it
because the issue has been politicized and that’s the
stance the federal NDP have decided to take. But I
have to agree, because unless I see some of the “en-
hancements” I’ve been hearing so much about, and
know in what “various areas” of their business these
enhancements have been made, there’s absolutely no
way I could support the construction of a new pipe-
line that is just going to fall victim to the same errors
a previous one did.
Many people still to sway for Northern Gateway
A8 PIPELINE NEWS August 2012
Calgary —
PetroBakken Energy
Ltd. provided an update
on their second quarter
2012 drilling activity
and production, and the
company is on pace to
meet production and
capital guidance for the
year.
Th eir average pro-
duction in the second
quarter was 38,700
boepd, based on fi eld
estimates, comprised
of more than 14,800
boepd from the Bakken
business unit, more than
15,600 boepd from the
Cardium business unit,
and the remainder from
their Saskatchewan
Conventional and AB/
BC business units.
PetroBakken noted
in a press release that
the month of June
wasn’t an easy one for
crews as spring breakup
was a rocky time again
this year.
“Persistently wet weather in June caused extended road bans and limited service rig and truck access, which, combined with several plant and battery turn-arounds throughout the month, resulted in ad-ditional shut-in produc-tion of approximately 2,000 boepd,” said the statement released by PetroBakken on July 9.
“Second quarter production levels are after the 3,930 boepd of asset dispositions completed recently and re ect additional shut-in production of approximately 2,300 boepd due to spring breakup conditions.”
In June, PetroBak-
ken’s estimated average
production was 37,500
boepd, with an 84 per
cent liquids weighting.
In the second quar-
ter they drilled 15 (nine
net) wells and com-
pleted 24 (17 net) wells
as indicated below:
• 10 (six net) wells
were drilled and nine
(six net) wells were
completed in the Bak-
ken business unit,
• Four (two net)
wells were drilled and
13 (10 net) wells were
completed in the Car-
dium business unit, and
• One well was
drilled and two (one
net) wells were com-
pleted in their Sas-
katchewan Conven-
tional business unit.
Only six (three net)
wells were brought on
production in June,
leaving 23 (15 net)
wells in inventory that
will be brought on as
activity fully resumes
over the summer.
Th e release noted,
“Field conditions are
currently improving
and we have 13 drill-
ing rigs operating with
extensive well servicing
operations under way as
well.”
Facility invest-
ments continued in the
Cardium business unit
in the second quarter as
PetroBakken brought
a new battery online in
west Pembina, allowing
the company to tie-in
associated gas produc-
tion and provide central
oil processing.
“We remain active
with our normal course
issuer bid, purchas-
ing approximately 2.5
million shares in the
second quarter for a
total investment of
$30.8 million ($12.34/
share),” said the release.
“Year-to-date we have
purchased approximate-
ly 3.3 million shares for
a total of $45.2 million
($13.56/share).”
PetroBakken noted
that those numbers are
consistent with previous
years, and the second
half of the year will be
their period of highest
activity.
“Our capital pro-
gram has been slightly
delayed by approxi-
mately three weeks, and
we are well positioned
to catch up prior to the
end of the year.”
Th ey expect to have
15 drilling rigs oper-
ating for most of the
second half of 2012, in-
cluding seven rigs in the
Cardium, drilling 57
net wells; six rigs in the
Bakken, drilling 75 net
wells; one rig in south-
eastern Saskatchewan,
drilling 27 net wells;
and one rig drilling four
net wells in the emerg-
ing plays in Alberta.
“Our balance
sheet liquidity position
remains exceptionally
strong with approxi-
mately $1.1 billion of
available capacity under
our facility at June 30,”
noted the company.
“With approximately 75
per cent of our planned
wells for 2012 yet to be
drilled, we anticipate
continued production
growth during the sec-
ond half of the year and
reiterate our 2012 exit
rate production guid-
ance for 2012 of 52,000
to 56,000 boepd.”
PetroBakken weathers tough spring
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By Jordan Bakerfor Pipeline News Estevan — Building
a base for oilfi eld supply
sales isn’t the easiest
thing to do, even in an
area of the province
where the oil industry
shapes the day.
But MRC Midfi eld
set up shop in Este-
van and has since been
building a client list at
a steady pace. Blaine
Chrest, branch manager
of Estevan location, said
the operation has been
coming into its own in
the past few months,
getting a foot in the
door of the competitive
retail side of the oilfi eld.
“Whatever business
you get into, you always
want to see the business
grow,” said Chrest. “We
had our fi rst million-
dollar month in June.
It was a pretty big step
for our store, and our
corporate people were
pretty happy to see that.
I told them, ‘Now that
we have one, we want
our second one, and
hopefully by fall we
get into the $2-million
month.’ Th at’s my goal.”
He added that the
staff was very proud of
the milestone.
“Th ey took owner-
ship in it, and they were
proud of being involved
in it. It’s very nice to see.
We have a great staff
here. Th ey do take pride
in their work.”
Chrest commended
Mel Fitzpatrick, the
manager of the MRC
branch in Carlyle, who
got the store together in
Estevan and hired the
group that is in there
now. Chrest has been
managing the Estevan
store since April.
“It’s been a pretty
easy transformation in
here, and I’m trying
to build on what he
started,” Chrest said of
his fi rst quarter at the
store.
In order to build,
the new group still
needs to win some peo-
ple over, but Chrest said
they are still breaking in
and collecting contracts
from local companies.
Building relation-
ships with the oil
companies in the area is
the key to what they are
doing, as they are still in
the early stages of get-
ting known to the area’s
players.
“Th e biggest part
of it is to get them to
trust your staff ,” noted
Chrest. “You make a
mistake, it’s not good.
You need them to give
you a chance, to come in
and see what you’ve got.
From there you got to
work hard to make sure
you get them the right
stuff in a timely manner.
“Because the store is
fairly new in town, we’re
just trying to break in.
We’ve had a presence in
Weyburn and Carlyle
for a number of years
and this kind of helps
fi ll a gap between the
two.”
As Estevan is
geographically in the
centre of those towns,
the new store gives
MRC a more complete
presence in the oil-rich
southeast.
Page A10
MRC Mid eld sales rep Taybrey White completes an order with a customer in the ware-house.
MRC trying to make splash in the Energy City
A10 PIPELINE NEWS August 2012
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MRC Mid eld’s building in Estevan holds the pump shop, which employs two individu-als. Ma Kuentz manages the shop and is seen here char ng part numbers.
Page A9“Being in the largest city in the area for activity, they needed to have a
presence here,” Chrest said. “It’s been a slow rebuilding. We’re the small player
on the street so far.”
Th e street he referred to was Kensington Avenue, where they are set up
almost right across from CE Franklin and within eyesight of TS&M, the
Estevan-based behemoth. MRC Midfi eld has now had a presence in the En-
ergy City since October 2011.
Chrest noted that while they have their contract customers, they are still
trying to open up into the non-contract business. Th ey want to earn themselves
a spot as an alternative to other supply stores in the area.
“It’s easier now that it’s busy,” he said about establishing the company. “If
it was a slow time, we’d be (struggling). We’ve got some key people here. We’ve
got some key relationships that we’re trying to tap into.”
Chrest may be a new manager for MRC in Estevan, but he isn’t new to the
game. He’s worked sales for a number of years in the oilfi eld industry and has
also spent time in the business of renting equipment for the oilpatch. Because
of his time at other stores, including very close competitors, he intimately
knows how well other companies can service their customers.
“We know what we have to do to get to that level. We’ve got to off er that
kind of service.”
Chrest noted that it can be a tough business, and he’s seen instances where
there is a mistake made at a store and the customer takes his business across
the street. He added that isn’t something you hope for from your competition,
but if it does, it’s important to meet the customer’s
needs in order to keep them for the future.
“Since I’ve been here (in April), our inventory
has grown over $1 million in three months. Mainly
due to some key contracts, supplying rods, and
we’ve had to bring in more. Th at’s a good thing.”
He noted Estevan is one of MRC’s biggest
inventory stores. In comparison to other stores in
the southeast and Manitoba’s southwest, they have
the most inventory at their fi ngertips.
Th ree-quarters of it is sucker rods.
“Th at’s probably half our sales. We’ve had
some key contracts come into place with some big
customers. Th at’s what they want, so that’s what we
supply,” said Chrest.
He added that they had just done a study on
their sales and found they were about 50 per cent
contract sales and 50 per cent non-contract, which
surprised him a little.
“Th at’s unusual. I thought we’d be 70/30. We
want to look after those key customers but not for-
get that there are other people out there as well.”
To get some more business outside of contracts,
he said it just takes the sales team getting out and
“beating the bushes.” Chrest said he was hoping
to get out to make a few sales calls when he fi rst
started at MRC, but has found himself too busy
with the administrative side of his job so far.
He said they’d also like to get more involved in
the sale of pipes, valves and fi ttings as well as get-
ting into more building facilities supplies.
Page A11
Milestones are being reached
PIPELINE NEWS August 2012 A11
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Page A10“Th at’s a market we’ve got to break into. We get them with our contract
people, which is great, but we’ve got to reach out past the contract people and
break into that market.”
Th ey have four inside sales reps, a couple of workers in their pump shop
and a couple of administrative people. Chrest chuckled at how small their
staff is with nine people, as others have anywhere from 20 to close to 100
people within the organization.
He said their size isn’t an issue, as they are all able to handle the work-
loads, but Chrest added that by the fall, he’s hoping they need to look for
another body or two. And he isn’t concerned about fi nding anybody with the
labour shortage experienced not just in the southeast but also across Sas-
katchewan.
“Finding people is not as hard as everybody thinks. Companies don’t take
résumés and hire based on them. A lot of it is recruitment. Finding people, I
don’t think that will ever be a problem. Th ere’s enough people in the industry,
that are in diff erent parts of the industry, that are always looking for changes.”
He said he has already had people he knows approach him and tell him if
he’s ever looking to hire, to keep them in mind.
“Th e biggest thing is knowing people, talking to people,” he added.
As far as expanding goes, Chrest said there isn’t a lot of room in the
warehouse, but room can be made. Th ey are still in the process of weeding out
the products they don’t need to be selling, so over the next couple of months,
their inventory will be refi ned, and that may make room.
He also said they could probably use a bigger yard.
“But you have to work with what you got. Th ere’s alternative ways like
our warehouse set up with the palette racking. Yard wise, in this position here,
we have no room for expansion. We’re going to have to handle it diff erently.
If we get enough clientele coming in that needs more, we’re going to have
to look for something. If we get to that point, then good for us. Th at means
we’re growing. Th en we’ll search alternatives. Th e alternative may be to have
another yard stocking our rods and pipe.”
As far as space in the store is concerned, he said they are still able to
tighten things up and add another rack or two. Chrest would certainly em-
brace any diffi culties of growth.
“If we ever get to that point, I hope so, but that would be a good problem
to have.”
Th ere are avenues they can explore as other industries have yet to be
tapped. While the oilfi eld reigns supreme, there are other industries that the
MRC team can look to in order to grow.
“We’re pretty much oilfi eld right now. We’re trying to get into that other
part because there is SaskPower and the mines. Th ere’s a lot of others but we
haven’t gotten into that market yet. Th at’s what we’ve got to get into,” said
Chrest. “Th e mines, they use all kinds of stuff . Power, they’re always looking
for stuff . It’s a niche that we’re not (in) yet.”
He added that reaching into those markets
is still a little time away, as they are still working
on maintaining their contracts. It’s important to
him that they are able to give their customers the
service they deserve.
“We service our contract customers. You orga-
nize a relationship with somebody and you try and
get a little bit and a little bit. Eventually it leads to
more. It’s tough to get in sometimes if you don’t
know the guy. Let’s face it; every place here gives
good service, so that’s the hard part. Our competi-
tion down the street, I know how well they service
their customers.”
Right now, however, Chrest said he’s just
happy that they are the little guy, getting steadily
bigger.
“We’re growing,” he said. “Our staff is becom-
ing more familiar with what needs to be done to
make the customer happy. Th at’s our biggest goal.”
A12 PIPELINE NEWS August 2012
New Location New Location Opening SoonOpening Soon
• General Contractor• Project Manager
• Concrete
Phone: 421.2209
By Jordan Baker Carnduff — Every supply store needs a regular
customer base, and when C&N Oilfi eld moved
across Highway 18 to add C&N Supply to its
business, that’s exactly what they found.
What Carnduff had been lacking up until
then, C&N Oilfi eld was now going to supply. As
one of the most easterly towns in Saskatchewan’s
southeast, there was no outlet that supplied the
tools and goods many in the area’s oilfi eld sector
required. Th e gap was fi lled when the maintenance
business of 25 years decided to add the supply
store in October 2010.
Since that time, the store has boomed, and
C&N’s customer base has exploded.
Kris Carley, C&N Oilfi eld and Supply opera-
tions manager, said the store has complemented
their maintenance business, adding customers
from several walks of life. Oilfi eld workers, the
Town of Carnduff , golf courses and even farm-
ers are now able to come into the store to pick up
what they need. Without having to leave town to
head to Oxbow, or at times even Estevan, having
the site in Carnduff is a major convenience.
Page A13
C&N opened their supply store in the fall of 2010. Since then, the business has boomed as the secondary cog in the C&N Oil eld wheel.
Addition of store leads to productivity gains
PIPELINE NEWS August 2012 A13
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ESTEVANESTEVAN
Page A12“Th ere’s really never been anything in Carn-
duff ,” said Carley. “Twenty-fi ve years as a main-
tenance business, we’ve found ourselves driving
back to Estevan or Oxbow for parts, not only
for ourselves but for our customers too. If we’re
working on trucks or something on our own, we
couldn’t buy a two-inch ball valve. You couldn’t get
oilfi eld fi ttings.”
Carley said they were very quick to establish
themselves in the community. As the store was
added in part to help their maintenance crews,
they were originally one of the top companies
taking advantage of the store. Th at’s not the case
anymore.
“When we opened up we were probably one
of our best three or four customers. Now we’re
probably not even in the top 10 anymore, because
we’ve kind of developed our own customer base
outside of ourselves.”
Since the store has opened, they’ve managed
to bring in entirely new customers, some of whom
are competitors of their oilfi eld operations, while
others they never would have reached with just the
maintenance side of their business.
“Guys who used to be our competition are
now customers of ours on the store side. We still
have the customers who we work for as far as op-
erators. We get farmers in here for hoses, fi ttings.
Th e fi re department gets stuff , the golf course gets
stuff , customers that we never would have had
before.”
Where it has come the most in handy is for
C&N Oilfi eld itself. Carley said what the store has
done for production on their maintenance side
has been incredible. Not only do they have the
supplies they need right next to their shop, but
they also deliver supplies with their maintenance
crews as they are often heading out to a location
for work. Th ey can now get two things done in
one trip.
“Productivity for us (has improved greatly).
Our guys are working on a project in the shop,
they walk in the store and they grab everything
they need. Th e convenience of it and just in man-
hours alone, it’s just great,” he said.
Th ey are storing six pressure trucks in the
old shop right now. It was when they fi rst started
buying the pressure trucks that they fi nally decid-
ed a store on-site, or at the very least in Carnduff ,
was a necessity.
“Th e big thing was when we started getting
into the pressure truck side of it — we’ve got six
pressure trucks now that we’re batching with —
when we bought our fi rst truck there were valves
that would go on it, or a hydraulic hose or what-
ever that you needed.”
Th ey bought their second truck used and had
to do a lot of work on it after they did a complete
rebuild.
“It seemed like every second day we were
sending somebody to Oxbow to get fi ttings to
rebuild this pressure truck because there was
nothing in town. We tried to plan ahead, but you’d
be short a valve or something. Th en we’re wast-
ing time because I had to get in a truck and go to
Oxbow and come back.”
Page A14
A14 PIPELINE NEWS August 2012
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Page A13Carley added that
while they can now
multitask diff erent jobs,
customers can also solve
most of their problems
with one phone call.
“One thing that
we’re doing now that
wasn’t part of our busi-
ness plan, but it sure
became one right away,
the guys now can phone
us for the belts, or the
shivs or the nipples, and
they can get a crew in
one phone call. So a lot
of the stuff that we’re
selling is going out on
our trucks. I get lots of
guys that call say, ‘you
know, I’m just glad I can
make one phone call
and be done with it.’”
Th e store has turned
the Carnduff company
into a kind of one-stop
shop for oilfi eld supplies
and maintenance. Th ere
are 35 trucks running
with C&N Oilfi eld that
are heading to locations
all over the area for jobs,
so Carley said they can
throw a bag of fi ttings
on the truck with the
crew, and that kind of
counts as their delivery
service.
Carley said they
want the store to be
customer driven, even
though when they fi rst
opened their product
lines mostly revolved
around what their com-
pany needed for main-
tenance. While many
of their products are
day-to-day items that
people need, they have
done some larger sales.
“We came in blind
actually, because we had
no history of what’s
gonna sell, what isn’t.
So we just brought in
what we thought we
needed, and then we let
the customers drive it
for us. One of our big
philosophies when we
started was if you come
in the fi rst time and we
don’t have it, the next
time you come in I want
to make sure it’s on the
shelf.”
Within about two
months of the store’s
opening, they realized
the store couldn’t be
managed on a part-
time basis by someone
working out of C&N
Oilfi eld. Th ey decided
to hire a store manager
full time, and Colin
McInnes has been man-
ning the shop ever since.
At the same time as hir-
ing McInnes, they also
found they needed more
space in the store. Th eir
in-store merchandise
grew in those fi rst few
months as well. Where
before they carried a
couple of charts for re-
tail, they now have more
than a dozen on hand.
Th ey fi rst developed
their inventory based on
what they thought their
customers would need,
and as customers came
in and requested other
items, their inventory
has expanded.
“From three months
after we opened until
now, we’ve probably
tripled our inventory in
a year and a half, just
to keep up with the
demand and to make
sure we got the stuff on
the shelf.”
When they built
the store, they planned
enough room so they
had some space to grow
and develop. Th ey’ve
added two new racks
full of inventory since
opening. Th ey also have
storage above the store.
“If there ever does
become a space issue, we
still own our old build-
ing. We were building a
new shop so we put the
store in the new shop,
but we still got the old
shop across the highway
there. If we ever needed
to, we could always
move in there and give
ourselves some more
space.”
Th ey are cur-
rently looking to expand
further, with interest
in setting up shop for
C&N Oilfi eld in North
Dakota. Carley said
they are still looking to
acquire some land, but
noted they have a loca-
tion in mind as they eye
Stanley, a small town
between Williston and
Minot, for the expan-
sion.
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By Jordan Baker Estevan — Th e biggest oilfi eld supply company in Saskatchewan’s south-
east is updating its headquarters, as TS&M Supply’s Estevan head offi ce is
scheduled for a big facelift.
Th e company has been in business for almost 40 years, after beginning as a
small store run by three local Estevan businessmen. It has grown into perhaps
the biggest supply store in the province with about 80 employees in Estevan
alone.
Dan Pratt, regional manager for TS&M in Estevan, noted that the head
offi ce location is in the throes of getting even bigger. Th e end project will be
the construction of a new 42,000 square foot building on their current site.
Work has already started as an addition is under construction at the back
of the south building on Kensington Avenue. Pratt said once that is complete,
they will be able to move the people and operations out of the north building,
which will be taken down. A new building will then be constructed on the site
of the original structure.
Th e update of their head offi ce is an important thing for the store as they
are an Estevan-based company. TS&M is unique as a supply store headquar-
tered out of a small city in the heart of the Saskatchewan oil industry.
“Th e biggest thing that sets us aside from those other companies in that
regard,” said Pratt, “is that when your head offi ce is in Calgary, it’s more offi ce
related, where we still consider ourselves, kind of, fi eld guys at heart. (Th e fi eld)
is really where the work happens.”
Th e ability to work directly with oilpatch workers out of their head offi ce is
an important part of who TS&M is, added Pratt.
“Th at, I think, sets us aside because we’ve got our fi ngers on the pulse of
the oilpatch,” he said. “No matter what technology is available, it will always be
a hardworking-person’s industry. Any given morning, we’ve got crew guys com-
ing into our head offi ce to get a coff ee right outside (my offi ce). Staying close
to that is certainly something that TS&M is very passionate about.”
He added that it’s the construction crews as well, who he called the “heart
and soul of the oilpatch,” who frequent the store and offi ce. Above Pratt’s offi ce
door hangs a quote attributed to Mohandas Gandhi, refl ecting on the relation-
ship between the customer and the merchant. Page A16
A group of sta members gathered together in TS&M’s front o ce. From le : David Rooks, Arnold Marco e, Ryan Mi elholtz, Dallas Taillon, Blake Mar n, Dan Pra , and Brad Bengert.
Having a local head of ce offers unique view on oilpatch
A16 PIPELINE NEWS August 2012
3D3D MAINTENANCEMAINTENANCECell numbers: Cell numbers: 483-8024, 483-7024, 483-8148483-8024, 483-7024, 483-8148
Home number: 486-2143 • Fax: 486-4855Home number: 486-2143 • Fax: 486-4855Box 12 Frobisher, SK. S0C 0Y0Box 12 Frobisher, SK. S0C 0Y0
[email protected][email protected]
Page A15It reads, “A customer is the most important visitor on our premises. He
is not dependent on us. We are dependent on him. He is not an interrup-
tion of our work. He is the purpose of it. He is not an outsider of our busi-
ness. He is part of it. We are not doing him a favour by serving him. He is
doing us a favour by giving us the opportunity to do so.”
“I found that about four or fi ve years ago, and he certainly hits the nail
on the head that the only reason we’re in business is for our customers. I
don’t make any of my decisions based on anything but them.”
Th e connection between TS&M and their customers is a small-town
approach, where the focus is on helping the client at every turn.
“Th at’s something that we don’t want to lose sight of, no matter how
big the company gets, that one person, that one individual type of need,”
added Pratt. “We’re not looking at it as ‘you should shop here because we’re
the biggest, you should shop here because I want to help you. You tell me
what you need, and I can get it for you.’ Th at’s something that I repeat to
the staff on a regular basis. One person, one customer, that’s what built this
company.”
It’s what the customer wants and what the customer needs, that he said
TS&M is building in Estevan. The company is currently working on an addi on for their south building, and a er its comple on the north building will be torn down, replaced with a 42,000 square foot building.
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drives their business. With their operations very localized, it gives them the
opportunity to connect the customer and the corporation.
“Certainly on the inventory side of it, our competitors keep a large por-
tion of their inventory in Alberta, which, when the work is happening in
Saskatchewan, it doesn’t do the people of Saskatchewan a lot of good.”
Pratt noted they carry $21 million worth of inventory on-site at their
Estevan location. He said that’s far higher than a lot of places will carry in
Alberta, let alone Saskatchewan.
Because their head offi ce and warehouse share a location, he said,
“We’re more adaptable, and there’s less (of a) trickle down eff ect.”
Pratt said that when there is a question of stocking a new product
because a customer is considering carrying it, the communication doesn’t
have to jump from a salesperson to a manager, and then fi nally to someone
in Calgary or Edmonton.
He said a salesperson at TS&M can get a call about a client looking for
a new valve, and they can quickly go to management and get an answer on
whether or not they will begin stocking that product.
“We can make those decisions in real time. We can react quicker and
respond to those ever-changing needs.”
Page A17
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Page A16Pratt noted that
Estevan is a small cen-
tre for a company to
have a head office, but
said it means that they
know people.
“That’s something
I don’t think Estevan
gets enough credit
for. It is a gruff town.
We’re an oil town and
a mining town and
a farming town, but
when somebody gets
sick or somebody is
in need, we’re small
enough that every-
body knows everybody.
We’re proud to be a
part of that effort.”
TS&M is owned
by National Oilwell
Varco, which recently
purchased CE Frank-
lin, a competitor, and
one with a store that
sits just a couple of
doors down from
TS&M’s head office in
Estevan.
“We don’t have a
whole lot that I can
tell you at this point,”
he said, but added that
the purchase speaks to
the size of NOV.
Pratt said the
purchase has opened
the door for even more
opportunity, something
that excites him now.
He added that they’re
going to be having
some meetings about
how things are going
to move forward for
the two companies.
TS&M and CE
Franklin have compet-
ing stores in Estevan
and Shaunavon, while
other centres have just
one of them. Going
forward, Pratt doesn’t
know how those dy-
namics will continue.
“How that plays
out, I don’t know, but
certainly just from
looking at it right now,
we always like to have
a lot of areas covered,”
said Pratt. “I just think
that being able to ser-
vice more customers in
different areas without
having to start from
scratch, that’s certainly
something that would
excite me if we end up
going down that path.
“One of our big-
gest advantages is that
we still have that local
feel, that mom and
pop kind of mental-
ity. Being that we are a
National Oilwell Varco
company, who own
us, they allow us to
run our own company
within theirs. It ’s nice
to have a company of
that size back you up.”
There are 14
TS&M branches
across the country. In
Estevan, they have a
separate store exclu-
sively for pipes, valves
and fittings, as well as
the Estevan Fire and
Safety division, which
covers personal protec-
tive equipment and
other safety products.
They also have a fi-
breglass and multiplex
division.
“We like to consid-
er ourselves a one-stop
shop for people and
for customers, so they
can pick up everything
they need here.”
Pratt said a lot of
their size and growth
stems from being one
of the first companies
to provide these kinds
of services in the Este-
van area.
“That’s one of
things I’ve got to give
credit to the guys that
started this company,
for their vision,” he
said. “Those guys, at
that time, put their
own money out for
inventory, borrowed
money to start new
branches. I consider
my job to be about a
per cent as difficult as
it was for them.”
Pratt said he tries
to remind himself of
what their vision for
the company was and
to try to maintain
those same values.
Because he still
sees them in the com-
munity regularly, he
said it ’s a testament to
the kinds of men they
are, as they built the
company in a small
city in southeast Sas-
katchewan and contin-
ue to have ties to the
community long after
they’ve stepped away
from the business.
Pratt noted the
incredible amount of
money that it would
have taken to get into
the business, especially
because it ’s not some-
thing you can only go
half way in.
“Something like
sucker rods; you can’t
get part way into
sucker rods. We carry
$6 million worth of
sucker inventory,” he
said. “How do you
start that? How do you
cut that first purchase
order to decide to get
into that? It just blows
me away.”
TS&M Supply is the only supply store with a head o ce in the Energy City.
The aging building at the north side of TS&M’s complex on Kensington Avenue will be taken down so the new one be constructed on the original site.
A18 PIPELINE NEWS August 2012
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Washington — Enbridge was slapped with the
stiff est penalty ever imposed by the United States
pipeline regulator, following an oil spill that con-
taminated stretches of the Kalamazoo River in
Michigan.
Th e company received a $3.7 million fi ne
after the Transportation Department’s Pipeline
and Hazardous Materials Safety Administration
(PHMSA) said its probe uncovered about 25 regu-
lation violations related to the July 2010 leak on
Enbridge’s Line 6B near Marshall.
Enbridge has 30 days to respond to the order
and said they are reviewing the PHMSA’s fi nding.
“We will not comment specifi cally on the
contents of the (notice of probable violation) until
that analysis is complete,” the company said in a
statement.
Th e PHMSA said Enbridge attempted to bring
the pipeline back into service despite receiving
multiple leak alarms the night it ruptured, leading
to the release of more oil.
“We will hold pipeline operators accountable
if they do not follow proper safety procedures to
protect the environment and local communities,”
said transportation secretary Ray LaHood in a July
1 press release.
Enbridge’s 30-inch pipeline ultimately spilled
more than 20,000 barrels of heavy crude and con-
taminated 60 kilometres of the Kalamazoo River.
Th e accident shut down the pipeline for more than
two months and spawned a massive clean up the
company estimated will cost more than $700 mil-
lion.
It was this spill in 2010 that led to the Trans-
portation Department enhancing its oversight of
pipelines in 2011. Th e department is collecting
more data on pipelines and closed 102 enforcement
cases in 2011, its highest level for a single year.
Last December, Congress passed a pipeline-
safety bill that raised maximum fi nes and autho-
rized an increase in the number of pipeline inspec-
tors.
Enbridge ned for 2010 oil spill
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Estevan — Do All
Industries Ltd. paid a
big premium to acquire
Hyduke Energy Ser-
vices Inc. in June.
Th e Estevan-based,
oil and gas equipment
and services company
entered into an agree-
ment with Hyduke to
buy all the companies
shares for $1.37 per
share, a 109 per cent
premium over the clos-
ing price of Hyduke
shares for the 20 trading
days ending on June 20.
Th e stock price sat at
$0.66 the day before the
agreement was made for
Do All to purchase the
company for about $34
million.
Myron Yurko,
Hyduke board chair-
man, said, “Th is busi-
ness combination will
strengthen Hyduke's
ability to continue to
provide its custom-
ers with the life-cycle
management that they
are now accustomed to.
It will also provide dif-
ferent venues to provide
service from as well
as adding much more
square footage of manu-
facturing ability.
“Business will
continue as usual for all
customers and employ-
ees. Th e acquisition of
Hyduke's business by
Do All will give the
employees even more
opportunity to grow
within the organization.
I believe that this is
fair value for all share-
holders and provides a
liquidity event for the
shareholders at more
than twice the current
trading value of the
shares.”
Do All's president
Kordel Korf, said, “We
are dedicated to con-
tinuing to provide qual-
ity products and services
to both Hyduke's and
Do All's customers.
We plan to continue to
conduct business with
integrity and allow for
the positive merger of
these two successful
organizations. We are
excited about the im-
mediate growth of our
Canadian operations
through this acquisition,
and are looking forward
to the new possibili-
ties the Houston, Texas
manufacturing facility
has to off er.
“Th e expansion
of our organization
through this acquisition
will allow all employ-
ees the opportunity for
further development
and advancement within
the organization. We
are looking forward to
working with Hyduke's
highly-regarded team of
professionals.”
Th e arrangement
is still subject to the
approval of Hyduke’s
shareholders. A special
meeting of Hyduke
security holders was
scheduled for Aug. 8,
with closing expected
to be shortly thereafter. Under the arrange-
ment agreement, it is
a condition that all
Hyduke options shall be
exercised, surrendered or
terminated.
Hyduke is an
integrated oilfi eld
services company that
manufactures, repairs
and distributes oilfi eld
equipment and supplies
internationally. Hyduke
specializes in providing
customized, integrated
solutions to the drilling
and well service indus-
tries, including drilling
rig and service rig pack-
ages providing in-house
design, engineering and
drafting, major compo-
nent procurement and
overall project manage-
ment.
Do All Industries, with its head o ce in Estevan, recently purchased Hyduke for $34 million.
Do All to acquire Hyduke for $34 million
A20 PIPELINE NEWS August 2012
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By Jordan Baker In the winter it’s cold, and in the summer it’s hot. Th ere isn’t much escape
from the elements for oilfi eld workers.
Th e southeast Saskatchewan summer has been hot and dry and the prov-
ince’s oilfi eld workers have been dealing with some pretty extreme heat day in
and day out. Safety is an important part of being on any rig or maintenance
crew, and while there are enough hazards that workers know about, one that
may get overlooked is the heat.
Th e danger of the summer’s afternoon sun is very real. Health offi cials
release a number of reminders to those working outside to take precautions
against heat exposure.
“We forever stress (heat exposure) in our safety meetings,” said Carrie En-
glot, of Flyin E Medical, who does safety training with oil companies.
Her company’s ambulances now carry water in their trucks at all times.
“It’s not a necessity, but it’s a necessity for us to take it, because those guys
are going to run out water possibly out there. (One day) I guess they did run
out of water, and they had a (Flyin E medic) working, and I guess she ran out
of water in her unit from giving it to the guys.
“I’ve seen that water is a big issue, and I said, ‘you know guys, we should
take a fl at of water in every unit.’ You stress the dehydration thing; you stress
the heat stroke thing; you stress that if you’re feeling dizzy or if you’re feeling
lightheaded, come over and pour water on your head and let it go down your
neck. Cool your head down but not fast.” Page A21
Travis Leeks, le and Ma Ekkebus, of Lavoie Mobile Cleaning Ltd. cool each other o using their pressure washer hoses. The pressure was lowered be-fore they turned their lines on each other.
Heat a source oftrouble in the summer
PIPELINE NEWS August 2012 A21
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46 – 13th Street NE • Weyburn, SK • S4H 1K8Phone: 306-842-5490 • Fax: 306-848-0275
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Page A20Matt Ekkebus, who works at Lavoie Mobile Cleaning Ltd., said, “Th is
beat the heat thing doesn’t work for us. We probably have the hottest job in the
oilfi eld. You just get your work done as fast as you can and get out of there.”
As a pressure washer, wearing heavy overalls, there is little chance of evad-
ing the heat.
“You drink a ton of water,” he added. “It’s a good thing they have air condi-
tioning in the trucks or we’d be screwed.”
One other way for them to cool off is to tone down the pressure on their
hoses and give their workmates a little shower. Th at’s one form of escape that
not everybody has available to them.
Englot advised against drinking cold water because it can lead to cramping.
“Th at’s the fi rst instinct to go drink cold water,” she said. “You don’t want
to do that.”
She noted that it’s important to stay ahead of heat-related health problems,
especially for people working on rigs out in the country, as it will take some
time for medical assistance to arrive if someone is suff ering from heat stroke.
“When you have heat stroke, you feel terrible. You are dizzy, you are nau-
seous,” added Englot. “Sometimes you are so dehydrated, and you can’t cool
down. If you have a bath right away as soon as you feel it, that helps, but a lot
of people don’t realize what’s happening to them, so they continue (to work).”
Signs and symptoms to watch for include dizziness or fainting, headache,
nausea, rapid breathing or a rapid heartbeat and/or thirst. People with these
symptoms have to move out of the heat into shade and drink water.
If untreated, the problems can lead to hospitalization.
“Where if you pour a little water on your head, make your baseball cap wet,
whatever, that cools you down,” said Englot. “(In the winter) keep a toque on
your head because that keeps the heat in. Well in the summer, reverse it. Keep
your hair wet and that will cool your body down.”
Heat-related illnesses can be prevented by keeping the body cool and by
avoiding dehydration in hot environments. When outside, wear light-coloured,
lightweight, loose-fi tting clothing and a hat.
Take frequent breaks in the shade, and avoid consumption of coff ee, colas,
and alcohol, as they tend to dehydrate the body.
No escape fromelements foroil eld workers
A22 PIPELINE NEWS August 2012
Innovation Assured, Value DeliveredPrairie Petro-Chem, a Clariant Oil Services business, is a leader in the development and application of oil and gastreating compounds and industrial chemicals. Our expanded geographic position and talented and knowledgeableteam of experts are ready to help you improve your operations. Contact us today to learn more about our chemicaltechnologies and services.
Prairie Petro-Chem, A Clariant Oil Services Business: 738-6th Street, Estevan, SK S4A 1A4. Phone Orders: 306-634-5808. Fax Orders: 306-634-6150. Email Orders: [email protected]. General Inquiries: 306-634-7362. General Fax: 306-634-6694.Web: www.oil.clariant.com. Twitter: @ClariantOilSvcs What do you need?
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We support the people who keep our communities safe.
Our Safe Community program provides firefighters, police
departments and other first responders with funding for everything
from equipment to training. The program gives the men and
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and wellbeing of our communities, now and into the future.
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It’s part of the reason we were named one of the Global 100 Most
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WHERE ENERGY MEETS SAFETY
Hydraulics and the high road of service By Jordan Baker
Estevan — When the primary industry in the
area is oil, it can be vital to fi nd that niche that
helps you stand out in the fi eld.
Wil-Tech Industries Ltd. has found its own
way in the hydraulics side of the oilfi eld, selling and
servicing hydraulic and pneumatic equipment.
Th e business has been around for about 20
years, and while they started out as a local player,
said Jim Wilson, Wil-Tech president, they’ve now
become a regional player, handling jobs in southern
Saskatchewan as well as Manitoba and Alberta. It
was a few years ago that they diversifi ed into the
potash industry and that has helped keep everyone
busy during slower periods in the oilfi eld.
“One of the problems is when you get 20 tech-
nicians and the oilfi eld slows down, you better have
a place for those technicians and some things for
them to do,” said Wilson. “Th at’s one of the good
things about Estevan, is that there are mines, power
plants, and there is agriculture. We do do business
in those areas.”
Th ey continue to look for growth opportuni-
ties, and one way of doing that is expanding their
mobile services.
“We have three service trucks capable of going
out to the site and servicing the equipment on site,”
added Wilson. “We have mobile trucks, hose doc-
tors as we call them, and journeyman technicians
that go out and service the equipment.”
“One of the easier ways (to grow) we’ve fi gured
is mobile trucks,” added Dustin Wilson, Estevan
branch manager. “It’s easier than trying to cram ev-
eryone in the shop. If we can provide more mobile
service, it’s a way of expanding.”
Th e hose doctors are like a little shop on
wheels, added Dustin, who said the crews are
always busy on the road. Th ey recently received a
request to head to Th under Bay, Ont. Jim said it
didn’t make a whole lot of sense for them to go that
far, but distance isn’t really an issue they consider
when taking on jobs.
“If it’s within our scope, as long as it’s not too
far and getting into something we’re not comfort-
able with, it’s usually not the distance that gives us
a worry,” said Dustin. “It’s more getting out of our
scope of things that we do.”
He said they don’t want to get outside of the
company’s comfort zone, as remaining focused on
what services they do provide is important.
“Our expansion has been within our indus-
try and the fact that hydraulics are expanding in
the oilfi eld,” said Jim. “What used to be chains
and ropes are now hydraulic winches. What was a
manual catwalk is now a hydraulic catwalk.”
Dustin noted that their product lines haven’t
changed as much as they’ve expanded.
“It hasn’t so much changed from hose and
fi ttings, but the expansion of the hose and fi ttings
that we do supply has defi nitely gotten a lot bigger.”
As much of the service equipment in the
oilfi eld is hydraulic or pneumatic, they cater to the
oilfi eld service industry more than drilling compa-
nies.
“I’d call us the second layer of service,” said Jim.
“We service the service companies.”
Th ey have the Parker store at their location,
as the Parker Hannafi n Corporation is their main
supplier of parts and equipment. It has all the parts,
equipment and components in a store atmosphere
rather than a warehouse. Wil-Tech is set up that
way in both Estevan and Regina.
“It allows the customers to see what we dis-
tribute, as opposed to being back behind on shelves
that they can’t see,” added Jim.
Jim said they don’t deliver to the fi eld as much
as they service the fi eld.
“You don’t bring a drilling rig to us. We go to a
drilling rig,” added Jim. Page A23
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Jayme Mack works a hose into a crimper at Wil-Tech’s shop. Page A22Dustin said that in some ways, they are their
own best customer.
“For the most part we deliver the service and
the parts that come along with that,” said Dustin.
“Th e service department would be the supply store’s
biggest customer.”
“Right,” added Jim, “we sell a lot of parts to our
service department.”
He noted they don’t sell a lot of the conven-
tional things a store supplying the oilfi eld would
carry, like suckers rods.
“But we’re a very critical part of keeping the
oilfi eld running. You can’t drill a well with a drilling
rig that doesn’t work, and you can’t service a well
without working (equipment).”
Jim said they like quality over quantity, saying
that they call it the “high-road concept.”
“Th e high road is more diffi cult, but there is less
traffi c and a better view. Quality resells itself.”
While available labour is thin right now, Dustin
noted they have people coming in through their ap-
prenticeship program for heavy-duty mechanics.
“We put one through just a couple of months
ago, and we have about three or four going to
school,” he said.
A24 PIPELINE NEWS August 2012
By Jordan Baker Weyburn — Safety is an important part of any
work zone, and Edge Safety and Supply stays ahead
of the game, carrying some items like hydrogen
sulphide scrubbers that will soon be mandatory in
the fi eld.
Darryl Seitz, Edge Safety and Supply manager,
said that when selling safety supplies, one thing that
has to be monitored is a product’s shelf life. Some-
thing that is unique to much of the safety equip-
ment is the expiration dates. Many safety supplies
have expirations dates that approach much quicker
than that of a wrench.
“It’s a matter of rotating stock,” said Seitz.
He pointed to some gas tubes that handle
diff erent concentrations of gases, like hydrogen
sulphide, CO2 and benzene.
“Th ey do have an expiry date on the back of
them, so it’s kind of a (guess as to) how many you
order in,” said Seitz. “We threw out I think 10 or
12 diff erent ones here this spring, we went through
and they were expired.”
He noted there are other perishables in the
safety-product line, like some alcohol-based prod-
ucts in the fi rst-aid kits, eyewash solutions and the
fi re extinguishers.
“You’ve got to watch when you get it in and
look at the expiry date because shippers will ship
you whatever they can ship you.”
It’s also important for them to make customers
aware that something like their fi rst-aid kits, which
may sit in a trunk, unneeded for months or even
years, could expire. Th ey also don’t want to sell a
product like that which will expire shortly after the
sale.
He noted that for fi re extinguishers, there is
plenty of maintenance required over time.
“Th ere’s monthly maintenance, there’s annual
maintenance, there’s six- and 12-year maintenance,”
said Seitz, adding, “most people don’t realize that.”
Particularly when these products are being used
for personal use through off -the-street traffi c, he
said it’s important that the consumer is aware of
everything required for that piece of safety equip-
ment.
“Even for insurance, people may think ‘I put a
fi re extinguisher in my house, I’m good.’ Well if the
fi re marshal comes along and looks at this tag, if it
isn’t signed and dated, would they refuse you insur-
ance?” he asked. “Th ey’d have a cause to.”
Seitz said they do take on some liability for the
products they sell. For a number of items he noted,
“We have to be sure that if we send it out, it does
have the fi re-resistance (FR) rating on it.”
Th at can sometimes mean their products cost a
lot more than what a customer thinks they should
be paying. He has shown jackets to surveyors who
are surprised by the price tag. He noted not every-
body needs to have apparel that is FR certifi ed, so
there is more than one market they are trying to
cater to.
Because safety standards are highly regulated,
and ever changing, they need to be aware of all the
regulations to make sure the equipment they have
in stock is up to those standards.
He said that in Canada, the rule for a fi re-resis-
tant hoodie is that there must be a tear-away hood.
Page A25
Darryl Seitz sets up one of the DM gas monitors and prepares it for calibra on.
Safety store stays on edge of technology
PIPELINE NEWS August 2012 A25
Page A24
“We looked for two years to fi nd a supplier for
these hoodies,” said Seitz. “To fi nd a manufacturer
who was willing to make a tear-away hood, because
not all oil companies demand it, (was diffi cult to
fi nd). Now we’re trying to get into the niche mar-
ket, trying to fi nd a supplier that can supply it.”
What Edge is also selling are drums that scrub
out the hydrogen sulphide (H2S) gas at a well site
so that is doesn’t have to be fl ared off .
“Now they’re burning off the hydrogen sul-
phide. So now with this system, it’s neutralized so
there’s no more fi re, no more carbon dioxide,” he
said. “It’s going to be mandatory, or some system
like it, because they’re not going to allow them to
do fl aring anymore.”
Seitz said fl aring is only a last resort, adding
that, “You’re supposed to have control in your well.”
Th e H2S drums come in several diff erent sizes
and Edge also services them. Th e drums vary in
how long they can be used, typically depending on
the size of the drum and the concentration of H2S
gas that is coming out of the 400-barrel tank or
whatever else might be the source of the gas.
“It’s all based on the rate of gas and the con-
centration of H2S,” said Seitz. “Th e upstart price of
it seems like a lot, but once you buy the barrel, now
you’ve got it and all you have to do is replace the
product in it.”
Th e drums are good for a long time, said Seitz,
noting that they are coated with an epoxy, and is
long lasting as long it doesn’t get chipped down to
the base metal, “that’s the fi rst place (the chemical)
is going to eat into.”
He said whether to go with a large or small
drum depends on the size of the battery and how
much gas a crew is going through.
“Where these (smaller drums) are real popular
is where if you’ve got a well to drill close to a farm-
house. You can scrub the H2S out. Th ere’s no smell,
no odours, no landowner complaints.”
He noted other places will order in the drums,
but they stock them.
Fire extinguishers are another big part of the
Edge Safety business model. Not only do they sell
them in almost any size, but they also service them,
recharging the canisters when necessary.
“We recharge them, inspect them.”
Michael Lawrenz is Edge’s fi re extinguisher
technician and is certifi ed to handle everything that
is required for the units.
Edge also stocks service rig supplies in their
store so they don’t have to order everything in.
“Other companies will order it in, but we try to
keep all the popular stuff , the stuff that’s being used
in the fi eld,” said Seitz. “I’ve been here two years
now, and it’s constantly changing.”
He noted that they regularly have new custom-
ers who were originally working out of Alberta
where things are done a little diff erently. Th ey
want to stick with what they’ve been doing, so they
require some diff erent equipment. Every time that
happens, new products come through the store,
but it doesn’t mean the older products fall by the
wayside.
“Diff erent clientele moves in, like from Alberta,
and their equipment is set up diff erent. Rigs come
in and we stock (the store) as needed. Th e bigger
stuff , the high-end stuff , we can get it within a day
in from Alberta.”
Seitz said many of their clients come in at the
start of the week with their “wish lists.”
“Some of our bigger clients, they’ll actually on
a Monday, e-mail us fi ve rigs worth of requisitions,
they call it, or they’ll come Th ursday or Friday and
that will give us time to fi ll their order (for Mon-
day).”
Seitz is now certifi ed to handle DM gas moni-
tors at their store. Th ey monitor hydrogen sulphide,
oxygen defi ciency, lower-explosive limits and
carbon monoxide. Th e monitors come in diff erent
confi gurations and can have sensors for other gases
like methane, which is frequent in mines.
“We do recalibrations and repair,” said Seitz,
who went to Calgary for a course earlier this year.
Seitz said how the system works is that there
is a calibration gas that mixes the four gases, and is
run through the docking machine, which is hooked
up to his laptop.
“Every 180 days these monitors need to be
recalibrated, which means you have to put the gas
through and reset all the parameters in them,”
added Seitz.
It gets run through their machine and the com-
puter prints out all the test results.
Th ey also have a rental program that allows a
company to come in and rent them for a couple
of days instead of buying them. Th e monitors are
popular both on rigs and for facilities builders.
“ You’ve got to watch when you get it in and look at the expiry date because shippers
will ship you whatever they can ship you.”
- Darryl Seitz
A26 PIPELINE NEWS August 2012
Turnbull’s big moveThe new loca on for Turnbull Excava ng in Estevan is well under construc on, and the Estevan company is expected to be ready to move in to the site east of the Energy City o Highway 18 some me this fall.
Th e Saskatchewan Research Council continues
to be an economic driver for the province, providing
a 36-times return on every dollar invested into the
program.
Th e research council released its numbers for
the 2011-12 fi scal year at the end of June, noting
that their work meant $656 million in direct eco-
nomic benefi ts to the province. Th at makes the past
year accounts for the largest impact the SRC has
made since initiating their tracking method nine
years ago.
Th e press release said the SRC’s work contrib-
uted to the creation or maintenance of more than
1,800 jobs in Saskatchewan, valued at more than
$118 million.
“SRC has become a nation-wide leader in the
areas of research and technology,” said Bill Boyd,
the economy minister and minister responsible for
the SRC. “I am pleased to see SRC's work make
such a quantifi able impact on the Saskatchewan
economy.”
Later this summer, the SRC will submit its
corporate social responsibility (CSR) report to the
Global Reporting Initiative for the second year in a
row.
Th e press release said the SRC's 2011-12
activities included more than $53 million in proj-
ects aimed at creating positive environmental and/
or social impacts, and SRC's work contributed to at
least 22,343 tonnes of greenhouse gas emissions re-
duction or prevention and energy savings in excess
of 43 million kWh/year.
“SRC's mission is to deliver smart science
solutions with unparalleled service to clients and
colleagues that grow and strengthen our economy,”
SRC president and CEO Dr. Laurier Schramm
said. “Th ese substantial numbers are a testament to
the impactful organization SRC has become over
its 65-year history.”
Since 2003, SRC has measured $4.4 billion in
combined economic and job impacts in Saskatch-
ewan. In comparing the fi gures from 2003 to 2012,
the economic impact numbers have tripled.
SRC is a leading Canadian provider of applied
research, development and demonstration and tech-
nology commercialization. With 400 employees,
more than $79 million in annual revenue and 65
years of research, development and demonstration
experience, SRC provides services and products to
its 1,900 clients around the world.
Good on every dollar
PIPELINE NEWS August 2012 A27
738 5th Street (back door) Phone: 634-3522
24 Hour Service - 7 Days A Week!
• Two Way Radios• Alarm Monitoring
• Safety Checks
"We Dispatch for the Oil Patch"
805 Government Road SWeyburn, SK
306•842•0307
Centrifuges
Shale Shakers
Shaker Screens
Drilling Fluids
Rentals Ltd.
By Jordan BakerWeyburn — With
Apex Distribution
moved into more com-
fortable quarters, the
Weyburn branch can
now begin to give their
customers more com-
plete service.
Larry Paterson, the
Apex branch manager
out of Weyburn, said
they had been look-
ing for a change since
originally opening in
late 2009. When Apex
was fi rst brought into
the Weyburn area, there
were few options for
them to set up shop.
Paterson was one
of the original four
individuals who decided
to start the Weyburn
branch. He was previ-
ously with two diff erent
competitors for about
20 years before opening
the Apex location. He
started in 1984 with a
supply store in Lloyd-
minster.
Th e move to the
new location on Ebel
Road was a necessary
one, because of the
temporary space they
had been working out
of for the last two and a
half years.
“When we fi rst
opened it was basi-
cally temporary, but we
couldn’t fi nd anything
here because there
was just nothing large
enough to rent,” said
Paterson. “So we just
took what we could, and
we were renting a por-
tion of Regens Disposal.
Really there were no
offi ces in there, and we
were kind of right out in
the wide open.”
Th e situation was
far from ideal for the
team trying to make
sales calls.
“You opened up the
overhead door and the
dust and wind and snow
fl ew in there. It wasn’t
ideal at all, but some-
times you just deal with
what you get.”
He then got to-
gether with the regional
manager and they de-
cided it was a good time
to make a move. After a
little planning, Paterson
said it was just time to
expand and move into
something bigger.
Th at started in the
spring of 2011, with a
lot of the work being
done last summer after
they found a contrac-
tor that was prepared to
handle the job of build-
ing the new offi ce and
warehouse.
Th e move came just
two years after the store
fi rst landed in Weyburn,
and they were able to
move everything in to
the new space this past
January.
“It’s been great to
have our own offi ces
and an actual reception
area,” said Paterson.
“People can come to
the counter and actu-
ally take an order. We
can take an order from
them. It’s segregated
from the warehouse.
Th e warehouse is a sub-
stantial size and we have
two overhead doors that
we can load and unload
from, so it makes quite a
diff erence.”
Th e space they have
for both their offi ces
and the warehouse is an
incredible upgrade from
where they were before.
Th e warehouse is about
5,800 square feet. Even
with all that space, they
have been able to fi ll it.
Th ey will have to get
creative if they ever need
to stock more inventory.
“We can install
more shelving and pal-
ette racking,” Paterson
noted. “It takes a little
work to do that, but
it’s pretty full already.
We can tighten things
up and put some new
product in here, so we’re
pretty good for now.
“Technically we
could expand out the
back end, it’s just a
metal-clad building, and
I suppose we can add on
if we have to, but I don’t
know if that will ever
take place.”
He is defi nitely
happy with the size of
their yard too, noting
it’s the biggest one for a
supply store that he has
worked at.
“Th e trucks can
actually come in and
turn around in our yard,
and we have lots of
room for our pipe racks
outside. We have a C-
can in the back, which
we had over at the other
place because we didn’t
have enough warehouse
space. We had that
thing right full, and we
actually have it full of
product right now too,
so that helps out a little
bit.”
Th e extra space has
given them the room
they needed to expand
their product lines, and
it allows them to sell the
full range of products
that Apex branches usu-
ally carry.
Page A28
New location means better supply...
A28 PIPELINE NEWS August 2012
• Repairs done on all models including: Sonolog, Echometer, DX, etc.
• Major parts and supplies in stock at all times
• Fluid Levels• Dynamometers• Pressure Surveys• Foam Depressions• Equiment Sales, Rentals & Repairs
Scott .........861-1001Anita .........861-7305Keith .........861-2243Dave .........452-8401
Ryan .........458-7790Chantal .....861-9796Brett ..........891-6303Spare ........891-6966
Box 4 • Midale, SK S0C 1S0Phone: (306) 458-2367 Fax: (306) 458-2373
email: [email protected]
CALL TYLER FOR AVAILABILTY & PRICING
306.540.5674
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General Contracting & Project Management
• Shops • Offi ces • Warehouses • Custom Homes • Blueprints
• Management
35 Years in BusinessEbel Road Property Available
Weyburn Sask.
Apex Distribu on’s Weyburn loca on was originally run out of the back of Regens Dis-posal. The new loca on opened in January of this year.
Page A27“We have expanded
our inventory, our prod-
uct line as well,” Pater-
son said of what what
they can carry now.
“In both ways we’ve
expanded with more
inventory and a broader
range of products.”
Th ey don’t stock
just oilfi eld supplies, but
with the extra space,
they now stock items
like coff ee, sugar and
other drinks.
“We handle a full
line of tools now that
we didn’t have before
because of the space we
had.”
In their previous
location they dealt
mostly in pipes, valves
and fi ttings. Th at may
have led to the sales
coming in slowly off
the bat, as they were the
new retailer.
“Just being a new
supply store in town
it took awhile to get it
going. Some people are
pretty established with
the other companies
that they deal with,”
noted Paterson.
He said customers
have been impressed
with the new front of-
fi ce and added that the
staff encourages them
to go into the ware-
house and do their own
shopping.
“Quite a few have
enjoyed going up and
down the aisles looking
for the stuff that they
want. I think they’re
quite happy with the
larger warehouse where
we can stock more sup-
plies and bring in lots
more stuff that they
require.”
Aside from the
oilfi eld, they receive
customers from the
agricultural areas as
well as some construc-
tion crews and gravel
companies. Even with
that outside business,
however, it’s the oilfi eld
that continues to carry
Apex and other compa-
nies like them from day
to day and month to
month.
“An oil company
will come in and start a
new battery installation
so there’s multiple items
(they need), and it could
carry on for a month or
two months, where they
come in daily to pick up
what they need and go.
Th e rig companies, they
call it a wish list, they’ll
send that in and you
fi ll the order and have
it sitting ready on the
fl oor for them to pick it
up daily or weekly.”
With the oilpatch
as busy as it is, stores
being able to complete
all those order allow the
industry to keep mov-
ing at its present pace.
... and a lot more of it
PIPELINE NEWS August 2012 A29
Centrifuges • EZ Load Hydra Lift Systems • Polymer Tanks • Shale Bins
Alberta — Provin-
cial inspectors found
more than double the
number of high-risk
concerns in 2011-12
than they did in the
previous year among
oil and gas facilities in
Alberta.
As part of the an-
nual report by Alberta
Energy, the Energy
Resources and Con-
servation Board said it
recorded 438 high-risk
concerns during the
annual inspections,
compared with 239
the year before. Th ose
numbers rose despite
the ERCB conducting
513 fewer total inspec-
tions this past year. Th e
infractions included 155
from pipelines alone.
Pipeline safety has
been brought to the
forefront recently, fol-
lowing three crude oil
spills in a little more
than a month earlier
this spring. Environ-
mental and landowner
groups have called for a
review of the integrity
of the 392,000 kilome-
tres of pipelines in the
province.
For the year, inci-
dents of high-risk non-
compliance at facilities
that include well sites,
gas plants, oil batteries,
waste sites and pipelines
were recorded in 3.2
per cent of the ERCB’s
13,832 fi eld inspections
in 2011. Th at’s up from
1.7 per cent in 2010 and
2009, and 2.1 in 2008.
Th e regulator has set a
three per cent fail rate as
its target.
“In light of the fact
they’ve exceeded the
three per cent threshold
they set, that should be
some cause to look at
the system,” said Dan
Woynillowicz of the
environmental group
Pembina Institute.
Th e ERCB oversees
179,400 operating oil
and gas wells, 47,200
batteries and facilities,
54 oilsands plants and
12 coal plants in addi-
tion to pipelines.
Th e report noted a
provincial regulatory en-
hancement project will
be completed by sum-
mer 2013.
“One major focus of
this project is establish-
ing a single regulator,”
said Energy Minister
Ken Hughes, citing
safety as a primary area
of focus with the amal-
gamation of Alberta
Energy and ERCB.
Woynillowicz called
the review a chance to
ensure Alberta has an
approach to enforce-
ment and inspection
that inspires public
confi dence in the regu-
lator.
Safety questioned
Pumping of uidsA cluster of pumpjacks dip beneath the Earth’s surface for oil o Highway 18 near Oxbow.
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By Jordan Baker Frobisher — Th e oilfi eld, like a football team, works best when employees
aren’t sidelined by injuries.
Flyin E Medical is Carrie Englot’s brainchild, based out of her house
north of Frobisher. Th e company provides not only onsite medical assistance
for rig companies but also safety training. Th ey recently opened an offi ce in
Estevan for safety courses and have a location in Pierson, Man., as well.
Flyin E, which is now doing safety audits for companies, also carries
air trailers, shower trailers and a mobile testing unit that allows them to do
audiometric testing as well as drug and alcohol testing.
Page A31
Carrie Englot has been slowly growing Flyin E Medical since it rst started in early 2011. They not only provide medical service, but now also handle safety training.
High standards for oil eld safety
PIPELINE NEWS August 2012 A31
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Flyin E’s shower unit is used for acid jobs when there has been a chemical spill of some kind.
Page A30Th ey recently activated their mobile testing unit, which has been fol-
lowed by a positive response, said Englot, who noted they are now out several
times a week doing work with it. Th ey do fi t testing with an oxygen mask, as
well as a fi t-to-duty mobility testing as a pre-employment program. Th ey can
also do urine testing and drugs and alcohol testing to check an individual’s
system from the last 24 hours.
Th e safety training facility is in Estevan, but they will do training on-site
for companies as well.
“People come to us, but we’re mobile too,” said Englot. “With fi rst aid
and stuff , we’ll go out to them and train them out there.”
Englot noted that they do safety training for everybody, not just oil and
gas companies. She believes learning is best done in person with a hands-
on approach, so she has made sure they have lots of people who can provide
training.
“I’ve trained up quite a few girls to teach fi rst aid, so we can teach
WHMIS too. You always learn better from somebody than you do a com-
puter,” added Englot. “I know the modern technology is out there. I think
they’re even putting fi rst aid on computers. I don’t agree with that. Where
are you going to get your practical from? Where are you going to get your
skills from?
“With fi rst aid, there is a lot of hands-on learning and using the skills
that you’re taught. It’s not just reading about it and then here you go. We’re
actually teaching you. We have dummy dolls and they learn their skills on
those. We have a lot of mocks.”
She said they have also had mock training with the Estevan Fire Ser-
vice.
“You don’t learn just by reading and then never practising. Practise,
practise, practise makes perfect.”
Even her employees need to keep up to date and continue to practise
their skills. She noted she recently sent some away for classes on high-angle
rescue.
“Th at’s a good course,” said Englot with a smile, adding that they will
provide that training soon. “We haven’t got the high angle yet, but it is
coming. I’m actually in the works with working possibly with a guy from
Winnipeg who would come down and teach it through us.”
She said it’s important to make the situational training relevant to what
workers are going to be dealing with in the fi eld. Th at means having the
equipment to make sure people can train in realistic conditions.
“You need to make it what they’re going to be dealing with out in the
fi eld. For the high angle, you need a tower.”
But she added that the more training people get, the better and safer
each job site will be. Englot said for something as interactive as a high-
angle rescue, they would need to do that training at their offi ce. Th ey are
also looking at doing something with confi ned spaces and are building their
own confi ned-space unit.
Th ey have to make sure all of the equipment that they build is legal and
up to safety standards as well.
“We’re not going to put anybody into a dangerous situation,” said En-
glot.
With the high angle rescue training, she noted that people train on
scaff olding that starts low to the ground but gets higher as the course goes
on. When she did the training, they used a 185-pound dummy.
“He was hanging, and you’d go down and pick him up and put him on
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the snap ring, and it was exciting. I really enjoyed it.”
After taking the courses through the Flyin E crew, employees are then
certifi ed to perform rescues on jobsites.
Englot said if there is a specifi c kind of training an employer is looking
for, they would look into it and see if they can provide it.
“We just don’t supply our medical services, but we try to supply the
needs to the guys out there too,” said Englot. “I’m a fi rm believer that —
they only have medical in some things — I think the medical should be
in all parts like the drilling, the service, you know, because anything can
happen out there. You know the hospital situations in our countryside. Th e
EMS are busy, and you’re crucial time frame is if you’re bleeding out.
Page A32
A32 PIPELINE NEWS August 2012
Page A31“I had an amputation,” noted Jamie Cooper, an EMR with Flyin E, recall-
ing a particular incident in the fi eld. “Not to say he would have bled out, but if
I wasn’t there, he was scared, he didn’t know what was going on. He was going
into shock. To have some rig guy pal of yours going, ‘yeah, yeah, we’ll just take
you to the hospital,’ is way diff erent than having an educated medic there tak-
ing care of you and going with you to the hospital.”
She recalled seeing the man a few weeks after the incident and he recog-
nized her immediately.
“Th ere’s my medic,” she recalled him saying, calling her his lifesaver.
Englot said when there is an incident on a rig where they help someone,
their work isn’t soon forgotten.
“He called me his favorite, and that’s the only thing I’ve ever done for
him,” said Cooper.
Th ere is a lot of remote countryside, Englot noted, and that means it can
take time before medical assistance arrives.
The interior of one of Flyin E’s ambulances shows some of what is available with their units. Water, an important resource in the hot summer months, is now in all of their vehicles.
Life savers
PIPELINE NEWS August 2012 A33
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By Jordan Baker It shouldn’t come as much of a surprise, but it’s the residents of the south-
east who are the most likely in Saskatchewan to believe there are benefi ts in
carbon capture and storage (CCS) technology.
With the projects currently underway near Estevan, a $1.2 billion carbon
capture project at Boundary Dam Power Station and the Aquistore project, this
region of the province has received lots of exposure on how the carbon capture
process works.
Page A34
Boundary Dam Power Sta on near Estevan is currently undergoing a retro t of Unit 3 that will allow carbon capture for one stack at the coal- red power plant. The project is the rst commercial-sized project of its kind and is scheduled for comple on in 2014.
No surprise here
A34 PIPELINE NEWS August 2012
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Saskatchewan divided on cleansing ability of CCS
Page A33Th e International
Performance Assess-
ment Centre (IPAC)
for geologic storage of
Carbon Dioxide recent-
ly released the results of
their public opinion poll
on public awareness and
acceptance of carbon
capture and storage
in Saskatchewan. Th e
1,003 responses were
collected between May
30 and June 8 by In-
sightrix Research, Inc.
Th e results showed
a division among
Saskatchewan residents
with respect to their
beliefs and opinions
on climate change and
carbon capture and
storage. Th ere was also
no consensus on what
should be done to ad-
dress climate change,
nor was there agree-
ment on what the main
sources of greenhouse
gas emissions are.
Dr. Carmen Dyb-
wad is the chief execu-
tive offi cer of IPAC and
said there still seems to
be confusion about the
impact carbon dioxide
has on the environment.
“My big take-away
from this is that there
is an overwhelming
number people who be-
lieve in climate change.
Th at’s not an issue, but
what they’re getting a
whole bunch of mixed
messages about is what’s
causing it and that
causes a certain amount
of confusion,” said
Dybwad.
She explained that
it’s important for people
to know what they can
do on an individual
level, because the public
often gets overwhelmed
with the number of
actions to take and then
doesn’t take any mea-
sures.
“Th ere are so many
things that people are
faced with, there’s that
feeling of impotence:
‘All these things are
happening and I don’t
know what I can do
about it.’ Th at causes a
certain level of anxiety
and frustration,” she
added.
She said she has
the feeling people want
to do what they can on
an individual basis, but
don’t know what they
can do, feeling that, “I
want to do something,
but if I’m going to do it,
damn it, it better be an
eff ective thing.”
Dybwad noted that
polls for these opinions
started last year, when
the Eurobarometer
did an extensive survey
of public opinion in
the European Union.
IPAC’s fi rst poll mir-
rored their questions
so a comparison could
be made with not just
Canadian opinions, but
specifi cally Saskatch-
ewan ones.
Page A35
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Page A34“To be able to
match up what the at-
titudes were in Canada
versus Europe, because
we always tended to
think Europe was so
much more fashion
forward (is important).
If you’re going to be de-
signing programs to talk
to the public and to talk
about such an important
issue as climate change
and CCS, you better
understand the popula-
tions that you’re talking
to.”
Th is most recent
poll is an update to the
one done in Saskatch-
ewan last year. Dybwad
noted that one of the
biggest changes between
the two years is how
residents of southeast
Saskatchewan have
become more comfort-
able with CO2 storage
under the ground within
fi ve kilometres of their
home. Th e number
of worried residents
decreased from 44 per
cent to just 32 per cent.
“Th at’s a big drop,”
said Dybwad. “So in a
few things, we see some
substantial changes
from one year to the
other.”
Dybwad said the
surveys try to fi gure out
what people in Sas-
katchewan are hearing
and how that informa-
tion is infl uencing the
way they view their
world and how they
want to approach envi-
ronmental policy issues.
“In this world we’re
always looking for quick
fi xes,” said Dybwad,
“and I think part of the
frustration, and why
people are concerned
about the eff ectiveness
of CCS, is that they
want the one silver bul-
let that’s going to solve
everything. Th at just
ain’t going to happen.”
Dybwad noted the
global increase in tem-
peratures would be OK
if there is no increase
above 2 C, but added
that the way things
are going, the planet is
looking at a 6 C in-
crease.
“Th e total amount
of carbon emissions that
need to be reduced to
make sure we stay in a
two-degree world … is
20 per cent, so you’ve
got to do a whole bunch
of things,” she said.
“Th at might also be
where the public might
also be experiencing
some frustration. Th ey
like to think that there
is just one thing that
they need to do, but this
is going to take every-
body’s concerted eff ort.”
Dybwad added that
it won’t simply be about
deploying new tech-
nologies like CCS, but
also technology centred
around energy effi ciency.
“Th ere’s going to
have to be technology
and other things around
sustainable sources of
renewable energy,” said
Dybwad. “It ain’t a one-
size-fi ts-all. Th e prob-
lem is, we didn’t get to
this problem overnight,
and now we’re looking
for solutions that are
going to cure it over-
night. Th at ain’t gonna
happen.”
Th e information
gathered in the poll is
important because it
tells you what people
are thinking about
and what their issues
are, said Dybwad, who
added that companies
and governments need
to know what people are
thinking so they know
what issues need to be
addressed.
She said the dis-
cussions for things like
environmental policy
reform aren’t just about
the global climate but
also deal with people’s
money. Th e informa-
tion gathered in this
poll, and others, helps
governments and com-
panies know what they
still need to inform the
public of.
“Th is kind of infor-
mation helps you craft
the messages, not to pull
the wool over people’s
eyes, but to form the
basis of having a real
discussion.”
She noted that the
end goal is to ensure
that everybody is in-
formed about things like
CCS, so everybody can
make informed deci-
sions about how they
use their power.
For the future of
CCS, she noted there is
some support for it in
Europe, as support in
Germany is rising, but
it’s in Asia where the
technology is fully being
embraced.
“Th e biggest propo-
nent, where it looks like
this technology is really
going to take root, is
China. Th e thing is they
need that basic power
right now, but they’re
also putting in a whole
lot of time and eff ort
in CCS,” said Dybwad.
“When they get that
technology perfected,
they just shut the other
(power stations) down.
Th ey’re going to make
a huge jump, and they
will probably corner the
market on this technol-
ogy and then just sell
it back to us. We can
either do that or we
can be a little bit more
proactive and develop it
ourselves.”
Th e Boundary Dam
CCS project in the
southeast may be the
test for the rest of the
province and the coun-
try. Depending on the
results when the carbon
capture facility becomes
operational in 2014,
Saskatchewan could be
a leader in CCS tech-
nology.
A36 PIPELINE NEWS August 2012
Hard at workA service rig works on a well in the middle of a canola eld by Highway 39 near Wey-burn.
PIPELINE NEWS August 2012 A37
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It was promising to be a glorious day in beauti-
ful British Columbia. Th e three of us sat around
the table, drinking coff ee and reading the paper.
My brother-in-law John, my husband Bruce, and
I shared the Friday and Saturday editions of the
Vancouver Sun. It was 6 a.m. on a Saturday in July.
We had not needed an alarm; sleeping in was not
an option. We were in the prime of life, well used
to arising early to make a living and raise children.
Even on holiday, we still woke early.
John paged quickly through the sections look-
ing for sports stories. Bruce was engrossed in a news
story. He looked somber. I craned my neck around
the table to see what was so newsworthy. “Kiss Free-
dom 55 goodbye and prepare to work harder, longer”
ran the headline of the page he was reading.
I nodded sagely. I had read the article. Th e teaser
headline on the front page of the previous day’s
paper had read simply but boldly “Freedom 55 De-
layed >>C3”. I had ignored the headlines about the
Kootenay Lake landslide and immediately turned to
C3.
“What does it say?” I asked Bruce, already
knowing the answer.
“I am going to have to work until I’m 65 and
probably 67 before I can retire,” he replied glumly,
relaying the content of the article.
“But you knew that. Did you think I was lying?”
I asked.
“No, I didn’t think you were lying. It’s just de-
pressing reading about it,” he replied.
Last October, on the morning of his 55th birth-
day, I had wished him a happy birthday adding, “It’s
Freedom 55 sweetie; the freedom to go to work and
keep on working!”
He had replied, “Th anks b*tch!” making it sound
like a term of endearment by the aff ection in his
voice. I had laughed; he had laughed; it was all good.
Th at, however, was not the day he had fi gured
out that Freedom 55 was not “the plan” and was no
longer even being advertised by the company that
had made that phrase famous. Th at realization had
occurred in 2008, following the global economic
meltdown. We did not know it then, but the time
would soon be known as the 2008 Financial Crisis
“considered by many economists to be the worst
fi nancial crisis since the Great Depression of the
1930s” according to Wikipedia.
It was September 2008 that the world’s econo-
my took a particularly sharp decline. I remember it
well. Our RRSPs had declined at least 25 per cent in
value in one month. Bruce had called on his coff ee
break from work one day during that period. It was
the hot topic of conversation with his fellow work-
ers, many nearing retirement. “What are we going to
do?” he asked. I had been the family’s money man-
ager for years. Bruce said that he made the money
and I spent it. I said that he would never divorce
me because he didn’t know where I had stashed the
cash.
I had replied, “Nothing!” Despite the rapid spi-
ral downward of our investment portfolio, we were
in the same predicament as everyone else. Th e stocks
were good stocks. We would just sit tight, I told
him, and continue to work and invest.
It was in 2009 that the full eff ects of the global
recession were felt in the oil and gas industry,
with crude oil and gas prices going from a peak of
US$133 per barrel in July 2008 to losing 80 per
cent of their value on the market within a year. But
it was late December 2008 that oil tanked in the
$30 per barrel range, and my fairly new job as a hot
shot driver with a company out of Weyburn tanked
too.
In 2009, according to statistics at www.nrcan.
gc.ca, Canadian oil and gas drilling rates declined
by half from the previous year, and global invest-
ment in the petroleum industry fell by 19 per cent,
which explains my lack of employment in the patch
that year. Page A38
Freedom 55? 2008 took care of that
One Woman’s Perspective on Life, Liberty and the
Pursuit of Land Locations By Nadine Elson
Shifting Shifting GearsGears
A38 PIPELINE NEWS August 2012
301 Kensington Ave.Estevan, SK.
Phone: (306) 634-3616
3902 - 75th Ave.Leduc, AB.
Phone: (888) 835-0541
Fort Nelson, B.C.Phone: (250) 774-2615
Serving the oil patch of Western CanadaLONG HAUL - Canada & US
Page A37In the last quarter of 2009, as world economies emerged from the reces-
sion and oil prices increased with the expectation that recovery would support
higher oil demand, the price of crude rose and settled in the US$70-80 per
barrel range. Th e local oilpatch started to get busier and in January 2010, I
was hired by new company based in Estevan as a hot shot driver. I called it a
contract position. My husband called it Freedom 55. Th at was optimistic. He
hadn’t realized then that for four years after 2008 we would still be experienc-
ing the eff ects, and more, of a world economic crisis.
Bruce looked back at the newspaper article. “We’d better pick up spinach.
In fact we’d better walk to get it. It says here that we need to ‘stay sharp by
eating the right foods and getting exercise - it oxygenates the brain’. Seems I’ve
heard that before,” he smiled referring to twice weekly lecture from me.
I thought about the article. Th e ability to retire at 55 had evaporated, but
we had plenty of other freedoms - the freedom to eat healthy; the freedom
to work and keep on working; the freedom to go out without babysitters; the
freedom to live in the greatest country in the world. Not bad. Maybe Freedom
55 still existed.
Nadine lives in Estevan, with her husband and family, and works as a hot shot driver in the oilpatch regularly delivering goods in and around Estevan and Shau-navon, and Sinclair and Waskada, Man. Her mission, beyond delivering the goods quickly, is to have every interaction be a positive one. She can be reached at [email protected]
Can we ever retire?
PIPELINE NEWS August 2012 A39
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A40 PIPELINE NEWS August 2012
NEWSPIPELINE SECTION B
August 2012
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By Jordan BakerFrobisher — Th is long-standing oil business has
been all in the family, as the Folkerts of Frobisher
have been entwined in the Saskatchewan oil indus-
try for more than 50 years.
Today it’s known as C&B Oilfi eld Services, but
it could also go by the oilfi eld maintenance compa-
ny previously known as C&B Pump Maintenance
or before that WL Wireline.
C&B is now owned by the third-generation
of Folkerts, as Aaron Folkerts bought the busi-
ness from his father Bernie in 2009. It was Aaron’s
grandfather who started in the business out of
Frobisher in the 1950s, fi rst with the company WL
Wireline. It wasn’t until 1970 that he split from
there to start C&B Pump Maintenance, setting the
groundwork for the next two generations of the
family.
“Th ey would more or less go and de-wax the
wells, because there were no pumpjacks on them,”
said Aaron of his grandfather’s early work. “Th en in
the late ’50s when they started putting pumpjacks
on, that’s kind of how my grandfather got into do-
ing pumpjacks.”
“He started with (WL) in about 1956, and
he didn’t do pumpjack work, because all the oil
wells around here fl owed naturally,” said Bernie.
“Th en about 1958, the pressure decreased under the
ground and they started using pumpjacks to pump
oil to the surface.”
After working for that business for awhile,
the Folkerts’ grandfather started his own business,
C&B Pump Maintenance in 1970.
“I helped him with his business,” said Bernie.
“We always had about six to eight employees and
three to four crew trucks.”
In 1980, Bernie started running the opera-
tion, later buying it from his father in 1984. After
a number of years he began having medical issues
with his back, so Aaron took over in 1999. In 2009,
Aaron bought the company from his father.
“All they strictly did was pumpjacks,” said
Aaron. “Th en when I got involved in it, we started
doing turnarounds, like facility work and that sort
of thing, and I changed the name to C&B Oilfi eld.”
Now they handle tanks, treaters, pumpjacks and
other pipe fi tting, but he noted they aren’t involved
with any pipelining.
Th e Folkerts’ original concept of a family-run
oilfi eld maintenance company remains true today.
“It’s three generations, but like my dad always
used to tell me, it’s meant to be nothing more than
a family environment,” said Bernie. “We had lots of
good employees, but they would work with us for
awhile until their life led them down into whatever
they are doing now.”
A lot of their labour came right out of Frobish-
er itself. Bernie said there was one family with four
sons, and every one of them had a stint working at
C&B. Page B2
Todd Folkerts, le , and brother Aaron stand on C&B’s newly purchased picker truck with the fourth genera on of Folkerts. At the far le are Cassy and Madison, Todd’s daughters, and standing with Aaron are his sons, Carter and Grayden.
Three generations make C&B one of the area’s oldest family-run oil businesses
B2 PIPELINE NEWS August 2012
Page B1“It’s nice to have local people
because, after all, we grew up here.”
Th e family has long been estab-
lished in the Frobisher area, but the
demographics in the village have
changed, even if the Folkerts have
always remained a constant.
“I grew up here my whole life,
and I maybe know 10 people in town
(now),” said Aaron. “When you’re a
kid, you know everybody, and every-
body knows who you are too.”
In a village the size of Frobisher,
with a population under 200 people,
they aren’t the only operation in
town. Th ere are three other pumpjack
service companies as well. Despite
that, there is far too much work to go
around to make the competition very
cutthroat.
“Nobody can keep up,” said
Aaron. “Nobody’s trying to steal the
other guy’s work because we wouldn’t
be able to do it anyway.”
“We kind of work together in
way,” added Todd Folkerts, Aaron’s
brother who recently came back to
work for C&B. “Prairie Gold (Pump-
jack Services), they hired me in the
picker to cue their pumpjack. But we
have history with them; they’re kind
of like family. We grew up together as
kids. Th ey’ve got their company, and
we’ve got ours. We work together, and
it’s nice.”
Prairie Gold has been around for
the last couple of years.
“We are one of the original
(companies) here,” said Bernie. “Th e
one my dad worked for was the
original one. Th ere are other people
who worked there also, and then they
started their own business. Two of
our old employees started their own
business.”
“Th ere’s been two spinoff busi-
nesses,” said Todd. “Our grandfather
was the original pumpjack man.”
Th eir grandfather learned the
trade when an Esso employee came
around from Calgary to show them
what to do when fi xing a pumpjack.
He showed them how to clamp the
rods off and all the steps, and that’s
how they learned the tricks of the
trade, said Bernie.
Because he’s been around the oil
industry so long, Bernie has seen the
booms as well as the slow periods. He
said the problems would often either
arise when there was a change in Sas-
katchewan’s government or because of
the volatility of the price of oil.
“I remember 15 times when we
were struggling because the price of
oil fell off . I can remember once, it
was down to $12 a barrel, and it was
probably lower than that at times be-
cause in the old years oil wasn’t really
that valuable.”
Th e high prices in those days were
about $18 per barrel, so the drops to
$10 or $12 meant about a 40 per cent
drop in the commodity’s price.
“To say there were never any
struggles would be telling a lie, be-
cause there was a struggle just about
constantly,” added Bernie. “I often
wish I could go back to work now,
because you can actually make some
pretty good money in the oilpatch
now.”
“I think one of the biggest things
I’ve noticed and experienced,” said
Todd, “is when oil was up and boom-
ing when I was younger, you could
do the work and we always had the
manpower it seemed like. Now it’s
a shortage. Th at’s what I’ve seen.
Th e last four or fi ve years has been a
shortage of workers.”
Bernie got into the business at a
very early age, as his dad wanted him
to be out doing something during his
breaks from school.
“When I was a kid and my dad
had this pumpjack job, he used to
get me a job there in the summer
holidays,” said Bernie. “When I was
12 years old, I was fi xing pumpjacks,
because I was always kind of a big kid
and he said, ‘Well, you’re not lying
around all summer. You’re 12 years
old. You’re big. I’ll get you a job.’”
In some ways, there was no escape
from the family business because of
how immersed everyone was in the
trade while growing up.
“I was going to be a dentist, but
then I thought I’ll just (stick with
C&B),” Aaron said with a laugh. He
was never forced into the work, but it
was still something of an inevitability
because he and his brother grew up
around pumpjacks.
“Th is has been my life,” said Ber-
nie, “and I think these guys (Aaron
and Todd) would tell you the same
thing. Th is is what we do. Th is is what
our family does.”
Th at may be what they do, but
Bernie stressed that it wasn’t some-
thing he forced on either of his sons.
He wanted them to go out and fi nd
their own way. What they happened
to fi nd was the family business. Th e
jury is still out on whether or not the
fourth generation of Folkerts will take
over the business at all. Again, Bernie
said, it’s going to be up to them.
Page B3
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PIPELINE NEWS August 2012 B3
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Page B2“I think they’ll
let you know whether
they’re interested or
not,” added Aaron about
his sons, Carter and
Grayden.
C&B is now run-
ning four crew trucks
as well as a picker truck
that they purchased
near the end of 2011.
Th at brought Todd back
into the fold, as he was
working with other
companies operating
cranes and lifting equip-
ment.
Todd said, “Where
I come in is I worked
for Dad in the sum-
mer holidays. He’d
take me out to do the
lighter maintenance, oil
changes, and then I’d try
and help him setting the
pumpjack, but I always
thought the guy run-
ning the picker was the
cool guy. I paid atten-
tion to that.”
He went off work-
ing for other companies
as a crane operator. He
and Aaron had talked
for a long time about
buying a picker truck so
he could come back and
work for the family. One
day they just decided to
do it, and the addition
of the truck has only
meant good things for
the business so far.
“I would say the
crew trucks help the
picker and the picker
helps the crew trucks,”
said Aaron, comment-
ing on how the addi-
tion of the picker truck
complements the rest of
their business. “When
you go to set up new
pumpjacks, it’s nice that
you can provide the
picker and the crew to
do it.”
“Aaron would be
out and need a picker,”
said Todd. “You phone
around and you phone
around and you’re wait-
ing, whereas here it’s a
good chance (it will be
available).”
As long as it isn’t
tied up at one of the
other crews’ locations,
it will be ready to go.
Because they are one of
the few companies in
Frobisher with a picker,
they can rent it out with
Todd at the wheel.
Bernie noted that
they used to depend
on other contractors
for their picker trucks,
so he said it should be
a valuable asset to the
business.
With their crews,
they are able to cover
from Radville to
Stoughton and down
to the United States
border. Th ough it can be
tough to fi nd more la-
bour, the Folkerts aren’t
against adding a couple
more bodies for another
crew.
Todd said, “You can
always use another crew.
We can spin our heads
around and go, ‘what
were we thinking?’ but
that’s the way it is now.”
The family-owned C&B Oil eld recently purchased a picker truck, which helped bring owner Aaron Folkerts’ brother Todd back into the company. Todd had been running trucks like this for other companies, but now that the family had one, he decided to come back and work for them.
B4 PIPELINE NEWS August 2012
• Clean Fresh Water Tankers • Oil & Salt Water Transfers • Service Work
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By Geoff LeeRegina – Amend-
ments to the Occupa-
tional Health and Safety
Act that come into force
Sept. 3 are aimed at im-
proving Saskatchewan’s
record as the province
with the second highest
injury rate.
Saskatchewan’s total
injury rate increased
from 8.7 per cent in
2010 to 8.73 per cent in
2011 with 14 fatalities
reported to the Workers’
Compensation Board in
the fi rst half of 2011.
Th e amendments
include a doubling of
existing fi nes and an in-
crease in the maximum
penalty of for a serious
workplace injury or
fatality from $300,000
to $1.5 million.
Th ey also establish
a list of enhanced duties
pertaining to occupa-
tional health and safety
fo employers, supervi-
sors, workers, contrac-
tors, suppliers and
owners.
One of the key
amendments requires
prescribed business
owners to designate
a prime contractor to
co-ordinate work site
safety where there are
multiple employers or
self-employed workers
on location.
“Th at’s an increas-
ing phenomenon in
Saskatchewan in all
jurisdictions,” said Rita
Coshan, acting execu-
tive director of the Oc-
cupational Health and
Safety Division.
“You have many
trades coming on
to a site. If they act
completely indepen-
dently, the work of one
employer’s workers can
impact the others as
well.
“It has become
clear that you need
some sort of an oversee-
ing role in a complex
work site where you
have multiple self-
employed persons with
small employers work-
ing side by side.”
Th at’s often the
practice at many oil-
fi eld construction sites
or maintenance turn-
arounds.
“Th e large oil
companies have a choice
whether to use their
own resources or hire
outside people to act on
their behalf or an agent,”
said Coshan.
“I can’t really com-
ment on how they are
going to address this –
whether they are going
to use their own staff or
outsource it.”
Offi cials from the
Ministry of Labour
Relations and Work-
place Safety will explain
all of the new roles and
responsibilities of the
amendments and how
they aff ect industry
sectors during a series
of information sessions
being held throughout
the province.
Page B5
Workplace safety rollout starts
New Occupa onal Health and Safety Act amendments take e ect in Saskatchewan Sept. 3. One of the amend-ments requires a business owner to designate a prime contractor in charge of the safety of all workers from mul ple employers and contractors, etc. on a work site such as this house constructed in 2011 in Kindersley. In-forma on sessions are being held throughout the prov-ince for all industry sectors. File Photo
PIPELINE NEWS August 2012 B5
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Occupational Health and Safety Information Sessions
City Location Room Date Time Estevan Super 8 Estevan
134 – 2nd Ave Conference Room October 10, 2012
November 14, 2012 8 a.m. - 12 p.m. 8 a.m. - 12 p.m.
Kindersley Kindersley Inn 601 – 11th Ave E
Ballroom September 18, 2012 1 p.m. - 5 p.m.
La Ronge Harbour Inn 1327 La Ronge Ave
Conference Room October 31, 2012 1 p.m. - 5 p.m.
Lloydminster Barr Colony Heritage Centre Hwy 16 E & 45th Ave
Imhoff Theatre September 26, 2012 December 4, 2012
8 a.m. - 12 p.m. 8 a.m. - 12 p.m.
Maple Creek Jasper Cultural & Historical Center
311 Jasper St.
Auditorium October 17, 2012 8 a.m. - 12 p.m.
Meadow Lake Meadow Lake Golf Club Hwy 4.
Conference Room October 2, 2012 8 a.m. - 12 p.m.
Moose Jaw Heritage Inn 1590 Main St. N
Jubilee B September 6, 2012 November 13, 2012
8 a.m. - 12 p.m. 8 a.m. - 12 p.m.
North Battleford
Western Development Museum Hwy 16 & 40
Small Meeting Rm. Muse Theatre
October 4, 2012 December 5, 2012
8 a.m. - 12 p.m. 8 a.m. - 12 p.m.
Prince Albert Travelodge Hotel 3551 – 2 Ave W
Coronet Room Coronet Room
June 28, 2012 October 23, 2012
8 a.m. - 12 p.m. 8 a.m. - 12 p.m.
Regina Travelodge Hotel 4177 Albert St. S
Imperial Room Arlington Room Arlington Room
June 26, 2012 September 13, 2012
October 9, 2012
8 a.m. - 12 p.m. 1 p.m. - 5 p.m. 8 a.m. - 12 p.m.
Rosetown Civic Centre 1005 Main St.
#33 Rose Room September 19, 2012 1 p.m. - 5 p.m.
Saskatoon Travelodge Hotel 106 Circle Dr. W
Delta Room Viscount Room Viscount Room
June 27, 2012 September 20, 2012 November 21, 2012
8 a.m. - 12 p.m. 8 a.m. - 12 p.m. 8 a.m. - 12 p.m.
Swift Current Living Sky Casino 1401 North Service Rd. E
Sky Room 1/2 Sky Room 1/2
June 25, 2012 September 5, 2012
1 p.m. - 5 p.m. 8 a.m. - 12 p.m.
Tisdale Recreation Centre 800-101 St.
Hanover Room October 25, 2012 November 19, 2012
8 a.m. - 12 p.m. 1 p.m. - 5 p.m.
Weyburn Ramada Weyburn 1420 Sims Ave SW
Conference Room October 11, 2012 November 15, 2012
8 a.m. - 12 p.m. 8 a.m. - 12 p.m.
Yorkton Gallagher Centre 455 West Broadway
Ravine Room September 12, 2012 November 28, 2012 December 12, 2012
1 p.m. - 5 p.m. 1 p.m. - 5 p.m. 1 p.m. - 5 p.m.
Page B4
“I think the govern-
ment is taking its role
very seriously in terms
of showing a commit-
ment to addressing
the high injury rate,”
said Coshan about the
amendments.
“Th is is one of a
number of initiatives
that are being taken on
the enforcement side.
“We also work on a
broader prevention ini-
tiative with WCB called
WorkSafe Saskatch-
ewan. It goes beyond
enforcement.”
WorkSafe aims to
promote positive safety
culture in Saskatchewan
workplaces.
“It also deals with
education social mar-
keting those sorts of
things. In recent times
the government is tak-
ing the injury rate very
seriously,” said Coshan.
Offi cials kicked off
the information sessions
in Swift Current on
June 25, although the
bulk of the sessions will
take place in the fall.
“We’ve had surpris-
ing attendance – a lot
greater than we ex-
pected,” said Coshan
regarding the fi rst four
summer sessions that
wrapped up in Prince
Alberta on June 28.
“We have been
booking large venues to
accommodate a large
number of people. Th ere
is defi nitely an inter-
est from the oil and
gas sector as well as the
other sectors.”
Th ere will be 30
sessions in all including
two in Lloydminster on
Sept. 26 and Dec. 4 at
the Barr Colony Heri-
tage Centre, and two in
Estevan on Oct. 10 and
Nov. 14 at the Super 8.
Meetings will be
held in other oilpatch
communities such as
Weyburn, Kindersley
and North Battleford.
Th e information
meetings run through
a layman’s explanation
of the amendments in
a 60-page Interpretive Guide given to each
participant at the ses-
sions.
“Th ey are very
interactive. Th ey are
four-hour sessions and
they are very lively in
terms of the discussions
and the questions,” said
Coshan.
“We are sort of
keeping track of those
questions. Th ese are
useful sessions. Th ey
raise the kind of ques-
tions that we need to be
prepared to answer.”
Th e Interpretive Guide is also available
online at the Labour
Relations and Work-
place Safety site for
those who can’t attend
one of the meetings.
Th e amendments
to the Occupational
Health and Safety Act
were passed by the leg-
islature in May follow-
ing consultations and
review by the Ministry
of Labour Relations
and Workplace Safety’s
Occupational Health
and Safety Council.
“Th e amendments
address prime contrac-
tor responsibilities. It’s
a responsibility that
already exists in a lot of
the other western prov-
inces,” said Coshan.
“Th ere is a lot of
interest in that because
it is a new approach.
“What the prime
contractor does is to
establish those roles and
responsibilities on com-
plex work sites where
you have more than one
employer.
“Th ey have a re-
sponsibility to come up
with a written plan than
insures all the employ-
ers on site have pro-
cedures and safe work
practices in place.”
B6 PIPELINE NEWS August 2012 I
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Regina – It pays to support STARS air ambu-
lances in Saskatchewan.
Just ask Cecile Curran of Regina who is the
early bird winner in the fi rst ever STARS Lottery
in the province.
Curran won a $90,880 prize package that
includes a 2012 Mercedes SLK350, a Las Vegas
vacation including four nights for two adults at the
Bellagio Hotel and $5,000 cash in the July 11 draw.
Tickets are still available for a chance to win
over 2,200 prizes worth more than $3.4 million in
the grand prize draw on Aug. 15
STARS Foundation executive vice-president
Rod Gantefoer said the draw marks the fi rst of
many wonderful STARS milestones to come in the
province.
“Th e STARS Lottery will see many prize win-
ners, but the true winner is the patient who was
positively impacted because of the funds we raise to
help keep STARS in the sky,” said Gantefoer.
STARS began providing helicopter air ambu-
lance services for critically ill and injured patients in
southern Saskatchewan on April 30.
Several major donors have provided contribu-
tions to the STARS Saskatchewan program includ-
ing Crescent Point Energy, Mosaic, PotashCorp,
Enbridge, Enerplus, Husky Energy and Rawlco
Radio.
STARS signed a service agreement with the
government of Saskatchewan in April 2011 to pro-
vide helicopter air ambulance services from bases in
Regina and Saskatoon.
Since then, STARS has been working closely
with government, corporate donors, and partners in
health care and emergency services to facilitate the
launch of both bases.
Th e Regina base was the fi rst to open in the
province, with the Saskatoon base set to open in the
fall of 2012.
“Together with our partners in emergency
services and health care, we will work to enhance
access for critically ill and injured patients,” said
Andrea Robertson, STARS president and CEO at
the Regina base opening.
STARS is currently operates at the Regina base
from 7 a.m. to 7 p.m., and is moving toward 24
hours a day service later this summer.
STARS has fl own nearly 23,000 missions since
1985, and operates from fi ve bases in Alberta, Sas-
katchewan and Manitoba.
Th e STARS Lottery wrapped up in Alberta on
April 12 with the same type of prize pool to that
off ered in the Saskatchewan grand prize draw.
Th e three grand prizes include a Regina home
worth $1.2 million, a Saskatoon home worth $1
million and a home-away-from-home truck and
trailer package worth over $194,000.
Th e last day to buy tickets is Wednesday, July
18 at midnight. Single tickets are $60 each, or two
for $100 and six for $250.
STARS lottery ticket a safe bet
Ron Dufresne, vice-president of STARS Saskatchewan Opera ons, reaches into the draw drum to pull the lucky cket in the STARS Lo ery early bird draw on July 11. The lo ery followed the April opening of STARS in Regina with the opening of a second base in Saskatoon this fall. Photo submi ted
PIPELINE NEWS August 2012 B7
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Regina – Two Sas-
katchewan students have
turned the science of
energy and the environ-
ment into an art form
that has them jumping
with joy.
Sabrina Moshenko,
a Regina Grade 5 stu-
dent from Wilfred Hunt
Elementary School, and
Dylan Paquette, a Grade
5 student at Caronport
Elementary School,
took fi rst and second
place provincial honours
respectively in this year’s
national Energy and
the Environment Art
Contest.
Awards and prize
packages were presented
to the winning stu-
dents in their respective
schools while the fi rst-
place winner’s school
resource centre also
received a $300 dona-
tion.
Moshenko placed
fi rst from more than 400
provincial entries for
her alternative energy
drawing while Paquette’s
work of art features an
environmentally friendly
superhero.
“Students these days
are very knowledgeable
about energy resources
and energy conserva-
tion,” said Minister
responsible for Energy
and Resources Tim Mc-
Millan.
“Th at knowledge is
clearly exhibited in both
Sabrina and Dylan’s
artwork, and I congratu-
late the two of them and
their fellow students on
their creativity.”
Saskatchewan ele-
mentary school students
have been participating
in the Energy and the
Environment Art Con-
test since 1991.
Th e Offi ce of En-
ergy Effi ciency at Natu-
ral Resources Canada
manages the contest at
the federal level and the
Ministry of the Econo-
my co-ordinates on the
provincial level.
Provincial and ter-
ritorial winners from
across Canada, including
Saskatchewan’s fi rst-
place winner, can be
viewed on the Natural
Resources Canada
website in the Kids Club
Art Gallery.
Sabrina and Dylan’s
entries will also be fea-
tured in the Youth Art
Gallery on the Climate
Change Saskatchewan
website.
Two kids master the art of energyTwo kids master the art of energy
Dylan Paque e, a Grade 5 student at Caronport Elemen-tary School, was inspired by superheroes in his second place artwork in the provincial leg of the na onal Energy and the Environment Art Contest in 2012.
Photo submi ed
This alterna ve energy drawing by Sabrina Moshenko, a Regina Grade 5 student from Wilfred Hunt Elementary School, was chosen the best entry in the province in this year’s na onal Energy and the Environment Art Contest. Photo submi ed
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B8 PIPELINE NEWS August 2012
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634-6081
By Geoff LeeEdmonton – Revamp Industries Ltd., an electrical contractor specializing
in oilfi eld construction and services, anticipates a high voltage sales reaction to
its new Rigcharge battery maintenance system for drilling rigs, service rigs and
heavy equipment.
Th e Edmonton-based company launched Rigcharge in June at the Global
Petroleum show in Calgary. Rigcharge is a green energy product that can ex-
tend the life of pricey oilfi eld batteries and keep them out of the landfi ll.
“Th e main goal of Rigcharge is to make your batteries last up to fi ve times
longer through de-sulphation,” said Marc Bouclin, operations manager and
master electrician.
“Lead acid batteries have a natural breakdown. Sulphation is probably
public enemy number one for lead acid batteries.”
Th e electro-chemical reaction that occurs between the lead plates and
sulphuric acid to generate electricity causes lead sulphate buildup that reduces
available battery power during load demand and reduces recharging capacity.
Th e end result is shortened lifespan for lead acid batteries.
“What our product does is use a pulsing frequency that stops that process
and breaks down sulphation that has already happened in the battery,” said
Bouclin.
Th e science of pulse technology works by gently vibrating the sulphur
atoms electronically, breaking the bond of the lead sulphate crystals, and redis-
solving the sulphur into the sulphuric acid electrolyte.
Th e Rigcharge also eliminates winter battery kill and off -load voltage and
Rigcharge developers amped by apps
provides a constant trickle charge that improves equipment reliability and
productivity.
“Once winter kill happens, that battery loses its charge – sulphation sets in
and the battery will never be the same. You’ll be lucky to get back 60 per cent
of life through charging,” said Bouclin.
A typical conventional drilling rig can have up to eight batteries with two
12-volt batteries in a series to provide 24 volts of power at a cost of $600 to
$1,000 a pair to replace.
“If you buy one, you are looking at the cost of two batteries for the cost of
our unit, so you can defi nitely see the savings,” said Bouclin.
“One of the biggest problems out in the fi eld is the downtime that com-
panies occur – guys going out to pull equipment that’s been sitting for awhile,”
said Bouclin.
Page B9
Marc Bouclin, le , and Jason Brown from Revamp Industries in Edmonton have devel-oped a new division and product called Rigcharge, which uses solar panels and pulse technology to con nually charge the ba eries of drilling rigs, service rigs and heavy equipment. Bouclin holds up a ve-wa solar system for recharging 12V ba eries. The larger unit can charge a 24V ba ery and comes with a light weight aluminum moun ng frame. Both systems are fully customizable including the a achments.
PIPELINE NEWS August 2012 B9
Page B8
“Before you know it, you’ve got guys standing
around, and you’ve got hotshots and new batter-
ies and batteries going to the landfi ll. It’s just all
around, a bad situation.
“In Calgary, we had a great reaction. Everyone
loved our product. One of the biggest selling points
is the green factor. With our product, there is go-
ing to be fewer batteries going to the landfi ll every
year.”
Th e 24V Rigcharge consists of two, fi ve-watt
solar panels built to military standards with an
aluminum and stainless steel housing.
Th e 12v system includes one, fi ve-watt solar
power that also uses the pulse technology.
“It takes the power of the sun and it gives you
the benefi t of charging your battery to take care
of key off -load as well as the pulse technology
to extend your battery life up to fi ve times,” said
Bouclin.
Th e 24V system for rigs is mounted on a small
customizable magnetic stand made of aluminum.
“It’s very light weight and corrosion resistant
and stands up to the harsh environments of Alberta
weather in the wintertime and the harsh environ-
ment of an oilfi eld drilling site,” said manager Jason
Brown, who is a Red Seal electrician.
Th e basic unit comes with oilfi eld spec cable
that connects from the unit to the batteries and
comes with a cable anchor to secure it to the equip-
ment.
“It’s very easy to hook up. We’ve designed a
turnkey plug and play system where anybody can
install it on the roof of their building, hook it up to
their batteries, and pretty much forget all about it,”
said Brown.
“We predict big things for this, especially as
Marc said, with the green factor and the cost sav-
ings of buying new batteries every year.
“We see a defi nite environmental impact.”
Revamp formed a Rigcharge division under
the management of Jordy Stewart with the product
receiving strong interest from the Middle East for
distribution and marketing rights.
“We are ready to ship internationally,” said
Brown. “We only see positive growth, and we’d like
to have positive growth every year and basically
build a large customer base.
“Th ere is unlimited potential here. We just have
to get the word out.”
Revamp custom designs and fabricates
Rigcharge systems to suit customer needs at its
fabrication shop in Edmonton.
Several plate style 12V panels can be put to-
gether to accommodate multiple battery equipment
with pipe and square tubing brackets available for
most industry applications.
“If it’s new construction, we can actually weld
the brackets in,” said Brown.
“Our system is fully customizable. When a cus-
tomer comes to us with a specifi c purpose, we have
a close look at it, draw something up, send it back
to the customer for approval, and we send it to our
fabrication facility to come up with a prototype.
“Every piece of equipment and every appli-
cation is diff erent out there. We are ready to fi t
anyone’s needs.
“Th e company plans to take the demo units to
the Oil Sands Trade Show & Conference in Fort
McMurray Sept. 10-12.
“Winter will be coming then, and in Fort Mac
with the big players up there, a lot of it is about the
green factor,” said Brown.
“Everyone is trying to help out the environ-
ment and do their part.”
B10 PIPELINE NEWS August 2012
FAX: 306-453-4476BOX 40, CARLYLE, SASK. S0C 0R0
www.evergreenenviro.ca
306-453-4475
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* Formerly “Three Star Environmental”
Houston – National
Oilwell Varco (NOV),
a U.S. owned oilfi eld
equipment maker of-
fi cially completed its
C$240 million purchase
off er of oilfi eld produc-
tion equipment distrib-
utor CE Franklin Ltd.
on July 19.
Oilfi eld production
equipment distributor
CE Franklin Ltd. held
a special shareholders
meeting in mid-July to
vote on the purchase
off er through NOV’s
Distribution Services
Group based in Calgary.
Th e CE Frank-
lin board of directors
unanimously recom-
mended that its share-
holders vote in favour
of the deal when it was
announced on May 30.
“Th e addition of
CE Franklin to NOV’s
Canadian distribution
operations will broaden
our product off ering and
customer base, while
strengthening our com-
bined abilities to serve
all of our customers,”
said Pete Miller, NOV’s
chairman, president and
CEO in a news release.
“We look forward
to welcoming the CE
Franklin team of pro-
fessionals to National
Oilwell Varco.
“We expect CE
Franklin’s high level of
service and support to
enhance our opportuni-
ties to provide a wide
range of products to the
growing Canadian mar-
ketplace, for the benefi t
of both our customers
and employees.”
CE Franklin has
been a leading supplier
of products and services
to the energy industry
for more than 75 years
in Western Canada and
has a market value of
approximately C$176
million.
CE Franklin
distributes more than
25,000 products in-
cluding pipes, valves,
fl anges, fi ttings, produc-
tion equipment, tubular
products and other gen-
eral industrial supplies,
sourced from over 2,000
suppliers.
Th e Calgary-based
company has 39 branch-
es situated throughout
Western Canada and
a central distribution
centre in Edmonton.
National Oilwell
had been waiting for
CE Franklin share-
holders to approve the
acquistion through
their NOV Distribution
Services Group based in
Calgary in order to of-
fi cially close the sale.
Local offi cials from
NOV in Lloydminster
were unavailable for
comment as the deal
closed after our press
deadline.
NOV’s off er rep-
resents a 36 per cent
premium to the closing
price for CE Franklin
shares when the off er
was submitted.
“Th is transaction
brings our sharehold-
ers signifi cant value
and the opportunity
for our organization
to integrate with a
global leader to provide
a strong platform for
enhanced client service
and expanded opportu-
nities for our employ-
ees,” said Michael West,
president and CEO of
CE Franklin.
Under terms of the
purchase off er through
NOV’s Distribution
Services Group, CE
Franklin had agreed to
pay a termination fee of
C$7.5 million if it ac-
cepted a superior off er.
NOV was given the
right to match any com-
peting superior proposal
for CE Franklin in the
event such a proposal
was made.
CE Franklin’s larg-
est shareholder, Schlum-
berger NV, previously
reported that it agreed
to vote for the buyout.
Th e deal is the
second one between
Schlumberger and
National Oilwell in the
past few months.
Th e world’s largest
oilfi eld services com-
pany last month sold its
piping and fi tting unit
to NOV for an undis-
closed amount.
NOV is valued at
approximately $30 bil-
lion, with its core focus
on providing the oil
industry with the high-
est quality products and
service.
Th e company has
more than 200 world-
wide manufacturing and
service centre locations.
Th e NOV Distribu-
tion Services Group has
more than 40 service
centre locations across
Canada focused on
providing supply chain
integration services to
the upstream oil and gas
industry and industrial
customers in mining,
chemicals, pulp and
paper, forestry and food
services.
CE Franklin completes vote on NOV offer
PIPELINE NEWS August 2012 B11
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Regina– Business registration in Saskatchewan,
Alberta and British Columbia has moved to a one
size fi ts all approach under New West Partnership
rules that took eff ect on July 1.
Th e New West Partnership Trade Agreement
is a far-reaching economic partnership between the
three provinces. It is designed to promote prosper-
ity in Western Canada through meaningful inter-
provincial collaboration.
Under the latest agreement rules, businesses
registering as a corporation will no longer need to
register separately in each of the three jurisdictions
as extra-provincial registration will be facilitated by
the home province.
Corporations will be asked to provide addi-
tional information to their home province to have
their extra-provincial registration take eff ect in the
remaining jurisdictions. No additional fees will be
required for extra-provincial registration in the two
other provinces.
Th e partnership removes the need for corpora-
tions to fi le their annual fi ling requirement in all
three provinces. Instead, corporations will now be
able to fi le once in their home province.
“Th rough collaboration with Alberta and Brit-
ish Columbia, we are facilitating greater ease for
Saskatchewan businesses to expand to new mar-
kets and attract international investors,” said Don
McMorris, Saskatchewan minister responsible for
Information Services Corporation.
“Th e New West Partnership will make Sas-
katchewan and our neighbours the most competi-
tive and attractive place to do business in North
America.”
“When Alberta businesses thrive, Albertans
thrive,” noted Manmeet Bhullar, Service Alberta
minister.
“Reducing red tape and creating a more open
and competitive marketplace with British Colum-
bia and Saskatchewan will help Alberta business
expand their markets and attract new clients. Th ese
actions help secure our province’s economic pros-
perity,” Bhullar said.
“Th rough the BC Jobs Plan, our government
is aggressively targeting new investment that will
create jobs for British Columbians,” said Pat Bell,
British Columbia minister of Jobs, Tourism and
Innovation.
“By working with Saskatchewan and Alberta
through the New West Partnership, we can help
break down barriers and needless red tape, signal-
ing that the West is open for business. Th at will not
only benefi t B.C., but will provide opportunities
across our provinces.”
New West deal ends triple ling
B12 PIPELINE NEWS August 2012
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PIPELINE NEWS August 2012 B13
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Edmonton – Alberta’s crude oil production rose seven per cent in 2011
from 2010, the fi rst increase since 1985, thanks to higher production rates of
horizontal wells.
In 2011, Alberta’s crude oil production totalled 490,000 barrels of oil per
day with a yearly total of 179 million barrels.
Th e record-breaking news came with the release of the latest supply and
demand report by the Energy Resources Conservation Board (ERCB) on June
20.
Alberta’s Energy Reserves 2011 and Supply/Demand Outlook 2012–2021 outlines the state of reserves and the supply and demand outlook for Alberta’s
crude bitumen, crude oil, natural gas, natural gas liquids, coal, and sulphur
resources.
Th e reserves of Athabasca Upper, Middle, and Lower Grand Rapids de-
posits and the Athabasca Nisku deposits were reassessed for year-end 2011.
Th e review of the three Grand Rapids deposits resulted in a seven per cent
increase of the total in-place crude bitumen resource to 58.4 billion barrels,
which is attributed to an increased number of wells drilled in the area.
Th e reassessment of the Nisku deposit resulted in a 57 per cent increase of
the in-place resource to 102 billion barrels, which is attributed to an increase in
average thickness and an expansion of the delineated resource area.
In 2011, Alberta produced 1.7 million barrels per day of raw crude bitu-
men from the oilsands for a yearly total of 637 million barrels or an 8 per cent
increase over Alberta’s 2010 oilsands production.
Th e ERCB forecasts Alberta’s annual raw crude bitumen production will
total 3.7 million bpd for a total of 1.35 billion barrels per year by 2021.
Th e report notes that, since 1967, Alberta has produced about 8.1 billion
barrels of raw crude bitumen from the oilsands and has produced about 16.5
billion barrels) of crude oil since 1914.
Th e report also estimated Alberta’s total remaining established crude
bitumen and crude oil reserves to be 170.2 billion barrels, consisting of 168.6
billion barrels of crude bitumen and 1.5 billion barrels of crude oil.
Th e remaining established crude oil reserves increased by a net four per
cent, similar to the increase last year, as the cumulative result of reserves addi-
tions from 2011 drilling, reserve revisions, and production
Th e province’s remaining established marketable conventional gas reserves
stood at 33.5 trillion cubic feet, a decrease of eight per cent from 2010.
Remaining established reserves of natural gas liquids stood at 1.6 billion
barrels, down three per cent from 2010.
Alberta’s remaining established coal reserves are down very slightly and
stand at 33 billion tonnes.
Alberta crude output up seven per cent in 2011
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B14 PIPELINE NEWS August 2012
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Regina – SaskPower has applied
for a 4.9 per cent rate hike to off set
the capital cost of building major
projects such as the carbon capture
and storage project at Boundary Dam
Power Station and the 200 megawatt
expansion of Queen Elizabeth Power
Station in 2013.
Th e Crown-owned utility has
submitted an application to the
Saskatchewan Rate Review Panel to
increase rates eff ective Jan. 1, 2013
to fund investments in the province’s
electrical system and maintain electri-
cal reliability.
Saskatchewan residential cus-
tomers will see their bills increase by
between $4-6 per month starting next
year.
“Th is rate increase is needed to
fund investments into the province’s
electrical system to ensure our cus-
tomers continue to benefi t from a
safe, reliable and sustainable power
supply,” said SaskPower president and
CEO Robert Watson.
“Demand for power is expected
to grow by 2.9 per cent per year from
2011-2021, and we
need to be ready for
that growth.”
Th e ongoing
replacement and
refurbishment of the
electrical system, along
with the need to reduce
greenhouse gas emis-
sions, factor into the
need to increase elec-
tricity rates.
Th e $1.24 billion
carbon capture and
storage project will
transform Unit 3 at
Boundary Dam Power
Station near Estevan into
a long-term producer of
100 megawatts of clean
base-load electricity.
Th e project will also reduce
greenhouse gas emissions by captur-
ing one-million tonnes of carbon
dioxide per year.
SaskPower will also invest more
than $550 million to add 200MW
of natural gas generation at Queen
Elizabeth Power Station in Saskatoon
to keep up with demand.
Over the next 10 years, Sask-
Power plans to spend $10 billion on
the province’s electrical system, plus
another $5 billion on commitments
to the company’s Power Purchase
Agreements.
One of the system invest-
ments will involve the installation of
500,000 so-called smart meters by the
end of 2014.
Th e meters came to light with the
news SaskPower had restored power
to more than 200,000 customers in
Meadow Lake, North Battleford and
Prince Albert who lost power when
severe thunderstorms swept through
the region on June 25.
Th e meters won’t stop outages
from happening, but they will help
SaskPower determine where the out-
ages occur more accurately.
SaskPower maintains and oper-
ates more than 157,000 kilometres of
power line in the province.
SaskPower to pass costs to consumers
SaskPower is seeking a 4.9 per cent rate hike in 2013 to help fund the cost of construc ng mega projects such as the one at Boundary Dam Power Sta on near Estevan.
File photo
PIPELINE NEWS August 2012 B15
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Regina – Would you like fries with your diesel fuel?
Waste cooking oil is included in the mix of Saskatchewan’s Renewable
Diesel Mandate that establishes an average of two per cent renewable content
in diesel fuel sold in the province.
Th e renewable diesel content rules came into eff ect on July 1, and could
reduce greenhouse gas emissions the equivalent to taking 5,000 cars off the
road annually.
Renewable diesel is a diesel fuel substitute made from renewable materi-
als which include vegetable oil, waste cooking oil, animal fat and fi sh oil, or
feedstock from agricultural or forest biomass.
Th e program also provides an incentive of 13 cents per litre of eligible re-
newable diesel to qualifying producers in Saskatchewan to support the produc-
tion of renewable diesel in the province
Th e incentive program began April 1, 2011, and terminates March 31,
2016.
“Th e new mandate was developed in consultation with the industry,” said
Economy Minister Bill Boyd said.
“To support the mandate, our government introduced the Renewable Die-
sel program in the 2011-2012 budget which provides incentive for the produc-
tion of renewable diesel in the province.”
Th ere will be an average-based system that will have a compliance period
that runs until Dec. 31, 2014. Th e mandate does not apply to diesel marketed
in Northern Saskatchewan or to aviation fuel.
“Th e new Saskatchewan mandate will ensure participation and count to-
ward compliance under the national mandate,” Boyd said.
“Th ere is an emerging market for new fuels, it’s good for our environment
and at the same time benefi ts our economy.”
Th e mandate and the incentive were recommended by the Enterprise Sas-
katchewan Biofuels and Bio-Products sector team and the ES board of direc-
tors.
Renewable diesel diff ers from biodiesel that generally refers to vegetable oil
or animal fat-based diesel fuel consisting of long-chain alkyl (methyl, propyl or
ethyl-esters).
Canola-based biodiesel, for example, is typically produced as canola oil
derived fatty-acid methyl ester.
Diesel fuel sold with fry oil
B16 PIPELINE NEWS August 2012
Leading The Wayg y
Setting new standards Setting new standards for performancefor performance
Fast Growing Fast Growing CompanyCompany
www.CanElsonDrillingCanElsonDrilling.com
Box 312Carlyle, SK S0C 0R0Office: 306.453.2506Fax: 306.453.2508
Suite 700, 808 - 4th Avenue SWCalgary, AB, Canada T2P 3E8Phone: 403.266.3922Fax: 306.266.3968
TSX: CDI
Opportunities On Our RigsOpportunities On Our RigsCanElson Drilling Inc. is currently looking for hard working individuals that are looking CanElson Drilling Inc. is currently looking for hard working individuals that are looking
for challenging and rewarding work on top-of-the-line equipment in Saskatchewan. for challenging and rewarding work on top-of-the-line equipment in Saskatchewan. We provide competitive wages and bonuses, stock options for Drillers and Rig We provide competitive wages and bonuses, stock options for Drillers and Rig
Managers. Interested individuals can drop off resumes in person at our Managers. Interested individuals can drop off resumes in person at our Carlyle Office or fax to 306-453-2508. Carlyle Office or fax to 306-453-2508.
Offices in Calgary, Nisku, and Carlyle, as well Offices in Calgary, Nisku, and Carlyle, as well as Midland, Texas and Mohall, North Dakotaas Midland, Texas and Mohall, North Dakota
Since it was established in late 2008, CanElson Drilling Inc. has grown quickly to become one of Canada’s premier drilling contractors. In addition to building its own drilling rigs, the company is expanding its eet of drilling and service rigs through acquisition. CanElson now operates a eet of 37 rigs (34 net).
With operations in Western Canada, West Texas, North Dakota and Mexico, CanElson Drilling Inc. is setting new standards for rig utilization.
With right-sized, purpose-built rigs built for horizontal and resource play drilling and experienced, well trained crews, the company is achieving new records for cost-effective, ef cient drilling operations.
PIPELINE NEWS August 2012 B17
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Calgary – Alberta’s primary energy regulator has approved Shell Canada’s
carbon capture and storage project north of Edmonton with 23 conditions that
include additional data collection, analysis, and reporting.
Shell must also obtain separate approvals for any additions to the project.
Shell said it welcomed the approval, but noted the company and its part-
ners in the Athabasca Oil Sands Project are still working on feasibility studies
on the project.
A decision on whether to proceed won’t be made until later this year.
“Th is is a really important and exciting milestone for the project and takes
us one step closer to implementing the fi rst CCS project for an oilsands opera-
tion,” said John Abbott, Shell’s executive vice-president, heavy oil, said in a
news report.
An Energy Resources Conservation Board hearing panel issued its go-
head on July 11 after determining it is in the public interest to proceed with
the project.
Th e $1.35 billion Quest project would remove one million tonnes of
carbon dioxide emissions from Shell’s Scotford bitumen upgrader and route it
two kilometres into the ground at an injection site about 80 km north of Fort
Saskatchewan.
Regulatory applications for the Quest project were submitted in November
2010 with the governments of Alberta and Canada agreeing to provide the
project with $865 million in July 2011.
Th e project would be the fi rst of its kind for the Athabasca Oil Sands.
Construction of the project would take three years followed by project commis-
sioning and starting.
In making its decision, the ERCB noted the proposed reservoir is a suit-
able location for the long-term storage of carbon dioxide.
In addition it concluded the combination of geological conditions, engi-
neering design, operational practices, and extensive monitoring program will
mitigate any potential risks the project might pose.
Th e ERCB held a hearing in Redwater, Alta. from March 6-9, 2012 to
consider the applications and any concerns from interveners.
Prior to issuing its fi nal approval, the ERCB is required to refer the ap-
plication to Alberta Environment and Sustainable Resource Development for
review.
Alberta Environment and Sustainable Resource Development may impose
additional conditions with respect to the environment, which will be added to
the ERCB’s approval.
Shell’s CCS project gets the go-ahead
B18 PIPELINE NEWS August 2012
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Calgary — Trican Well Service
Ltd. had to prepare for a second quar-
ter loss, after wet spring conditions
and pricing declines left the company
down more than $20 million by rosy
estimates.
In a July 3 press release, Trican
estimated a diluted loss per share
between $0.32 and $0.42 and an op-
erating loss of between $24 and $34
million. Th e release noted that the
fi gures are subject to the completion
and approval of their second quarter
interim fi nancial report, which was
expected on July 30.
“Wet weather in May and June
led to lower industry activity levels
throughout Western Canada and
had a negative impact on our second
quarter Canadian results,” said the
release. “We are currently evaluating
our options and will consider parking
crews that are experiencing low utili-
zation and low operating margins.”
Trican noted a large Horn River
project was expected to start in early
June but was delayed until the end
of the month because of the wet
weather. Th ey said that as customers
have reduced their budgets and new
pressure pumping equipment enters
the market, they expect pricing to
decline in the second half of the year,
leading to reduced operating margins
in Canada.
“However, we expect demand
to remain strong and support solid
utilization levels and operating
margins for our Canadian opera-
tions during the second half of 2012,”
said the company’s statement. “We
will continue to monitor the capital
budgets and cash fl ows of our cus-
tomers in light of low gas prices and
the recent weakness in oil prices. We
expect that any additional reductions
in capital spending by our customers
will decrease Canadian rig counts and
place further pricing pressure on the
Canadian pressure pumping market.”
Trican also noted their U.S.
operations would have an operating
loss in the second quarter due to pric-
ing declines and continued increases
in guar costs. Pricing in the second
quarter decreased by about 10 per
cent as new pressure pumping equip-
ment continued to enter the Ameri-
can market.
“In addition, average guar costs
increased sequentially in the second
quarter and we were largely unable
to pass these costs on to our custom-
ers due to the competitive pricing
environment.”
Th e company said they have
initiated a number of cost-cutting
measures to reduce the cost of their
products but would not see any ben-
efi t until the second half of 2012.
“Th ese measures include the
introduction of a new hybrid fl uid
system that is expected to reduce guar
usage,” said Trican. “We have started
to see a reduction in guar prices and
we expect guar prices to continue to
decrease throughout the remainder of
2012 as a result of the development of
hybrid systems and guar substitutes,
and the new guar crop that is expect-
ed to increase supply later in 2012.”
Second quarter results for Trican’s
international operations are expected
to be below their expectations due
to delays in their Russian customers'
work programs. Th ey expect operating
results to improve in the second half
of 2012, but annual results for their
international operations are expected
to be slightly below expectations due
to weaker-than-expected results dur-
ing the fi rst half of the year.
Trican suffers loss after rocky spring
Regina – In Saskatchewan, you
reap what you sow and that includes
a cash crop of well paid workers at-
tracted to the province by the strong
economy and job market.
Saskatchewan had the third
highest average weekly earnings in
the nation in April, according to
Statistics Canada.
Saskatchewan’s average weekly
wage for April was $912.78, a four
per cent increase over last year and
the second highest percentage in-
crease among the provinces.
“Wages in Saskatchewan have
surpassed what is happening on the
national scene for more than nine
straight months,” said Economy
Minister Bill Boyd.
“It is a good signal that our
economy is moving forward, and
another good economic indicator
to support steady growth into our
future.”
Average weekly earnings in
the province have been on the rise,
exceeding the national average since
August 2011 according to Statistics
Canada.
“Th is is all about Saskatchewan
people having more take-home pay
every week, which means money that
improves quality of life,” said Boyd.
“Th e improvement in average
weekly earnings is simply good news
all around.”
Saskatchewan wages
PIPELINE NEWS August 2012 B19
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Saskatoon - For junior oil companies looking for
some capital funding, the limited partnerships of-
fered through a Saskatoon-based asset management
company is a way to get the funding and maintain
control over their drilling programs.
FNR Asset Management Inc. (FNRM) con-
nects with junior oil companies that need some
capital to get a well going. FNRM raises capital
through its products FNR Energy Limited Partner-
ships, which off er junior oil companies funding for
oil well development drilling, and off er unit holders
direct investments in wells rather than the oil com-
pany. Th e fi rst limited partnership they did was in
July 2011 and they have completed two more since
that time, said Jessica Karalash, who handles com-
munications and investor relations for the company.
She noted that so far, they have raised about
$15 million in their three limited partnership funds,
which closed in July 2011, December 2011, and
June 2012 respectively. She was unable to say when
the next limited partnership would begin, but noted
they plan on holding two each year..
After their fi rst public off ering, the funds raised
were sent to private operators in Saskatchewan,
with one company drilling two wells at Alida and
Tilston, Man., and another drilling three wells at
Frobisher. Th e third operator completed fi ve wells
in the Kindersley Viking formation.
Th e investors own limited-partnership units,
which are similar to shares, but the limited partner-
ship funds are fl ow-through.
“Th e cash that we raise, we raise it and then
deploy it on private and public oil and gas develop-
ment drill programs through various companies.
Th e unit holders receive fl ow-through tax benefi ts,
as well as quarterly cash distributions from produc-
tion that comes off the well.
“So they have actual ownership in the oil and
gas well,” Karalash noted, “because of the limited
partnership structure, it takes the liability away
from the limited partnership unit holder.”
Th ey raise capital for about three months for
each fund before it is closed. Th e capital is then
deployed, the wells produce the money and that
goes back in quarterly distributions. Th ere are also
fl ow-through tax benefi ts through a three-year hold
period.
Th ey have the three-year period so the wells
have time to mature and they can see what the wells
are fl owing and stabilizing at. Th e oil well continues
to produce, so there is much less volatility in their
security price , noted Richard Wingate, CEO of
FNRM.
“People are getting paid to wait; they are get-
ting distribution from the oil well, he said.“Getting
paid to wait is very important for the proceeds to
come back to the investor so they can feel com-
fortable that they have a nice cash fl ow in today’s
world.”
“Th ey do have liquidity at the end of three
years. How we’re going to do that will depend on
the market and timing,” said Karalash.
Th ey are focused on development drilling, not
exploration drilling. Th e oil companies run the
drilling programs. FNRM just provides capital for
development drilling, which has an 85 per cent suc-
cess rate.
“Th ey are in the development stage and past the
exploration stage, so that risk is taken out,” she said.
Th e June Crown land sale included 133 lease
parcels that brought in $9.4 million in bonus bids
and three petroleum and natural gas exploration
licences that sold for $1.1 million. Th e southeast
sector remained strong as the Weyburn-Estevan
area received the largest chunk of the bids, with
sales of $4 million.
Th e next sale of Crown petroleum and natural
gas dispositions will be Aug. 13.
Scrounging up capital for the province’s oil wells
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B20 PIPELINE NEWS August 2012
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NEWSPIPELINE SECTION C
August 2012
Story and photosby Geoff Lee
Lloydminster – Apex Advanced Solutions Inc.
will be brochure ready to support the features and
benefi ts of their core endless rod and progressing
cavity pump products and services at the 2012 Lloy-
dminster Heavy Oil Show Sept 12-13.
Th e company will also be exhibiting and mar-
keting some new technologies and a rod transport
and repair unit at outdoor booths 395 and 397.
Th is year, more than 6,000 visitors are expected
to tour the show that Apex views as a key opportunity
to promote their growing list of integrated advanced
solutions for light and heavy oil applications.
“I feel the show is really important because it’s
a chance to show the industry what we have to off er
and to meet with other guys in the industry,” said Jeff
Taylor, operations manager, fi eld services in Lloyd-
minster.
“Our leading products are related to artifi cial
lifts including endless rod as part of our products
and services off ering.”
Apex is the authorized distributor of Moore
Endless Rod that is manufactured in Nisku for a
variety of well conditions in reciprocating or rotary
pumping applications.
Endless rod joins a top drive unit to a downhole
pump with only one top and bottom threaded cou-
pling required, compared to conventional 25-foot
lengths of sucker rod with couplings every 25 feet.
“Endless rod is used in heavy oil and light oil
applications. Now, with horizontal wells, it addresses
rod and tubing wear,” said Taylor.
“Th e benefi ts are you can spread wear through-
out the well rather than it being concentrated at ev-
ery 25-feet section. Also, you are getting more fl uid
to the surface with less fl ow restriction while reduc-
ing torque.
“Endless rod around here has been a widely used
product for a number of years. Th ere is more in the
ground in Lloydminster and area than anywhere else
in the world.”
“Rod wear and viscosity are the main problems
around Lloyd. You can get into other areas where
there is CO2 and H
2S.
“Th ere are diff erent grades and sizes that you
can put into those applications that resist corrosion,”
said Taylor.
Moore manufactures everything from a D-
Grade carbon alloy steel rod for non-corrosive en-
vironments to an NS-Grade high strength nickel-
chrome molly alloy steel endless rod where a higher
strength product is required.
Th e Lloydminster operation is benefi ting from
the startup of a micro plant to provide custom pin
to pin string fabrication based on customer needs for
their wells.
Th e micro plant was set up two months ago and
similar operations are in the works for other key lo-
cations in Western Canada in the coming months.
Th e Lloydminster shop has a fl eet of 12 truck-
mounted grippers to provide service on any brand of
endless rod, and endless rod fi eld welders for splicing
and welding pin ends and conducting rod repairs on
location.
“We have a full fl eet of service options along
with a rod transport and repair unit. We’ve got one
on the road and three more coming in August and
September,” said Taylor.
“We continue expanding our service fl eet. We
try and find new and better ways to better serve
the customer.
“We have been in the endless rod business
for five years now and we are going to keep fo-
cusing on that.
“Five years ago, I came here and actually
starting running the first gripper unit.
“To see the business grow, it ’s been interest-
ing. We’ve got a good group of guys here. The
price of oil has been fairly steady and looks
good for the future.”
Page C2
Je Taylor opera ons manager for Apex Advanced Solu ons in Lloydminster displays a cutaway of a model 8 PC pump for heavy oil designed in-house by Ryan Rowan, vice-president of technology. Rowan’s pumps are designed for in-creased in ow capacity in heavy oil applica ons.
Apex Solutions to push top sellers
C2 PIPELINE NEWS August 2012
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Page C1Apex Advanced
Solutions is based in
Edmonton with branch-
es in Lloydminster,
Calgary, Bonnyville and
Swift Current.
Th e company is
partnered with Apex
Distribution Inc. that
operates in various
locations through-
out Western Canada,
including an outlet in
Lloydminster.
“We tie in nicely
with them because they
are a pipe, valve and
fi ttings business. Th e
customer can make one
phone call instead of
many, so I think that’s a
benefi t,” said Taylor.
In the U.S., custom-
ers are served by Apex
Remington.
Th e Apex Advanced
shop in Lloydminster
has a test bench for
testing their premium
line of NETZSCH PC
pumps for light to heavy
oil applications.
Light oil pump
geometries incorporate
a reduction in elastomer
volume resulting is less
elastomer swell and heat
buildup.
Th e heavy oil geom-
etry pumps are designed
for maximum infl ow
capacity with a simple
threaded confi guration.
“Th e PC pumps are
matched for specifi c ap-
plications, so we do have
pumps that will pump
more sand and pumps
that will pump more
water, so it all depends
on the application,” said
Taylor.
Th e company’s oil
show booth will also
showcase some of the
innovative PC pumps
for heavy oil that are
designed by Ryan
Rowan, vice-president
of technology.
Rowan’s heavy
oil PC pump Models
8,11,15 and 18 are op-
timized with more cross
sectional infl ow and
better fi ts on compres-
sion.
“His goal was to de-
sign a better PC pump,
using his industry lead-
ing experience, giving
us a product that would
benefi t the customer
and try to build our
business that way,” said
Taylor.
With the innovative
theme of the heavy oil
show in mind, Taylor
said if you don’t stay
competitive, you end up
by the wayside.
“You have to invest
in equipment and
products and R&D to
stay ahead of the game
because it’s a constantly
evolving industry,” he
said.
“Lloydminster is a
real hub of innovation.
Many products that are
manufactured in Lloyd-
minster make it all over
the world. Th at says a
lot about the people and
businesses in our com-
munity.
“Th ey products and
services coming from
Lloydminster set the
bar, so the show is a
unique way to network
with those people.”
Th e Apex booth will
also attract attention
with a linear rod pump.
Th e pumping unit is
designed with simple
mechanics and variable
speed well control.
It is also touted to
provide signifi cant cost
and performance ad-
vantages over traditional
pumping systems.
For a complete list
of products and services
off ered by Apex, pick up
a copy of their 27-page
catalogue at booth 395
or 397.
Welder Rino Jionee manufactures a new endless rod spool. Apex Advanced Solu ons plans to exhibit some of its endless rod product at the Lloydminster Heavy Oil Show Sept. 12-13.
Apex Advanced Solu ons took delivery of this new spool of endless rod manufactured by Moore Endless Rod in Nisku. The company has 12 truck mounted grippers for instal-la on in the eld.
Apex serving clients throughout Western Canada
PIPELINE NEWS August 2012 C3
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By Geoff LeeKerrobert – KEP Industries Ltd. in Kerrobert is
a supply shop like few others.
Th e business is owned by Erhard Poggemiller,
the mayor of Kerrobert along with his wife Evelyn,
which can make for an interesting mix of conversa-
tion behind the counter.
“Th is is kind of my town offi ce as well as a shop
offi ce,” said Poggemiller.
“We hear a lot of things going on out there in
the oilpatch and who’s doing what – and all of a
sudden someone is changing names or someone is
buying someone out.”
Th is is Poggemiller’s third term as the mayor
and he knows the value of public relations wearing
two hats.
“If someone has a complaint, you will get it
down here. If someone comes in with a complaint
from your service work, they come in here, so you
get it from both ends,” he joked.
“Most of the time, people have legitimate
complaints and they’ve got issues to talk about, and
most of them we can resolve.”
Th ere is plenty of stock to talk about at the
shop that is formally described as “manufacturers
and dealers of agricultural and industrial products”
on the business card.
“You could call us the general store without
groceries,” said Poggemiller.
“We carry parts here for the ag industry, the
trucking industry, and we carry lawn and garden
equipment.
“We do vehicle inspections for larger trucks
and tractors and trailers and so on. We do a lot of
repairs on those kinds of vehicles. We also do lot of
‘one-of ’ custom fabrication within the shop.
“We supply raw iron – nuts, bolts and hardware
and all that kind of thing. We have everything but
groceries here.”
KEP also sells and services recycled air fi lters,
auto air conditioning and provides oilfi eld repairs
and custom manufacturing to a growing base of
oilfi eld clients.
“Our business, when we fi rst came to Kerrobert
in 1978, was 85 to 90 per cent agriculture related.
“Over the years that has changed to where we
are now – I would say 75 per cent oil related and 25
per cent ag and whatever else.
“If you are not prepared to change, you die –
you are not in business. You have to change with
the market,” said Poggemiller.
“It’s the same with the town. Anyone who has a
proposal or a plan – we don’t have a rigid rule. You
can always come to council and we will sit down
and have a meeting with you.
“If you have an idea you want to promote
within the community or you have a business you
want to set up, or are looking for property and can’t
fi nd what you really need, you are always welcome
to come and talk to us.”
Exterran-Canada and Agora Construction,
now under construction, are among the new busi-
nesses in town that fall into the growing oilfi eld
service category.
Rev Energy, Enbridge, Plains Midstream
Canada, Penn West Petroleum, Northern Blizzard,
Alliance Pipeline and Weatherford are some of the
major oilfi eld companies in the area that have come
to rely on KEP for parts and fabrication.
“Oil and gas come here pretty consistently
to do work with hydraulics and buying hardware
items – nuts or bolts or whatever – a lot of ‘one-of ’
things,” said Poggemiller.
Page C4
KEP boss wears two hats in Kerrobert
Erhard Poggemiller and his wife Evelyn are in the mar-ket to sell their KEP Industries supply and manufacturing business and re re. Erhard is the mayor of Kerrobert who has to wear two hats behind the counter juggling shop and town business.
C4 PIPELINE NEWS August 2012
Page C3 “In the oil and industry, it’s nuts and bolts and
bearings and metal and custom fabricated items,
fi lters and chain.”
KEP is a stereotypical small town shop fi lled
with hundreds of old product boxes stacked to the
rafters, begging the question how do fi nd every-
thing?
“It may be frustrating for a newcomer, but we’ve
been here long enough that we know what we’ve got
and where it is,” laughed Poggemiller, who may have
to share his inventory know-how with a new buyer.
“I would sell the business if I could fi nd some-
one who can take it over and run it as this business,
because I think it is a very needed business in the
community. Someone can make a good living,” he
said.
“We are at the age where we would like to retire
from the business. Th ere are a lot of other things I
could do. I would really encourage someone who
is interested in this kind of thing – this is a great
start.”
Poggemiller, who is 60, held the mayor’s seat
until 2006. He was re-elected in a byelection in
2010, with a new hospital and a completed water
treatment facility and expanded lagoon system as
his legacy projects.
Construction began on the $23 million Ker-
robert & District Integrated Health Centre in June
and the grand opening of the new reverse osmosis
treatment facility will take place Aug. 3.
As for running again, he said, “I haven’t defi -
nitely confi rmed at this point in time. A politician
always weaves his way in and out of this thing, so I
am not going to say yes or no.”
Poggemiller is unsure at this point what he will
do in retirement, but he won’t be kicking back in a
rocking chair.
“I would retire from this and probably do some-
thing that is less physically demanding on a person.
I would always be involved,” he said.
“If you lie down and quit, then you might as
well not be here.”
Selling the business and falling into another
routine with his wife after all these years of working
at the shop together will be tougher than it sounds.
“I think you are always going to miss it. I
sometimes have apprehensions – this is what I have
done all my life other than when I fi rst started out
in life (when) I taught school for a few years. Th en
I bought this business and this is basically what I’ve
done all my life,” he said.
“It’s the same as everyone else. You do that all
your life, and then you leave – you miss it.”
Erhard Poggemiller directs truck driver Ken McMahon from Con Alexander Trucking Ltd. in Unity to his shop for a minor engine repair. KEP is a mom and pop shop with one service shop employee as Erhard and his wife Evelyn near re rement.
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Lloydminster – Technology and illusions will vie
for attention at the 2012 Lloydminster Heavy Oil
Show and Technical Symposium Sept 12-13.
Organizers of the show, known for exhibiting
new technology and innovation, have booked an il-
lusionist for the opening night social entertainment
at the Lloydminster Exhibition Grounds venue.
It is not know if the performer will produce a
barrel of heavy oil out of thin air, but the act should
inspire some creative thinking and discussion that
can lead to new technology in the fi eld.
“Th e Lloyd region has an international reputa-
tion how to produce heavy oil,” said Mike McIn-
tosh, chairman of the 18-person Oilfi eld Technical
Society organizing committee.
“People come here to see what the innovation
is. Th e value added to the exhibitor is that it’s a
great forum to exchange and experience innovation
and technology.
“It’s a great way for the exhibitor and the visitor
to talk about what are the issues, and what needs to
be overcome.”
Advance tickets are required to attend the
opening ceremonies on Sept. 11, beginning with
supper at 5:30 p.m. followed by comments by guest
speaker Kevin Casper, vice-president of production
with Devon Energy in Calgary.
McIntosh said Casper would likely word his
presentation to fi t the informal theme of the future
of heavy oil in the global marketplace.
“We don’t have a formal theme this year, but
informally we have been telling people – world sup-
ply and demand – how does heavy oil fi t into that
picture?” said McIntosh.
“It’s world supply and demand, heavy oil’s
future.”
Th e OTS committee is also adding two lun-
cheon speakers in the Prairie Room this year with
presentations that fi t the informal theme of heavy
oil’s outlook.
Th e Sept. 12 luncheon will feature a presenta-
tion by Jeff rey Newton, president of Aleph Sciences
Group in New York, titled, A Discussion on Convert-ing Well head Gases to Liquids and Chemicals.
Paul Zorgdrager, Husky Energy’s vice-president
of Lloydminster production operations – heavy oil,
is expected to speak about local technology during
his Sept. 13 luncheon talk.
Th ere will be a nominal fee to attend each
luncheon and tickets will also be on sale for the
illusionist social.
More than 6,000 visitors are expected to attend
this year’s show to be held in conjunction with the
technical symposium.
All 368 inside and outside booths sold out early
to 214 exhibitors with just over a month to go be-
fore the doors open to the newly renovated exhibi-
tion grounds that were under construction during
the previous show in 2010.
“We are getting lots of people calling wanting
in. It’s a pretty popular show in the region for sure,”
said McIntosh.
“It’s an opportunity to talk to your customers.
If we go back and look at the informal theme of
the future of heavy oil as supply gets tighter and
demand keeps growing, heavy oil has to continue to
play a bigger and bigger role.”
Check the heavy oil show website at www.
lhos.ca in the coming days for more details on the
speakers and their abstracts.
Lloyd heavy oil show adds pizzazz
The 2012 Lloydminster Heavy Oil is expected to show-case new technology and equipment. EnerMax Services from Fox Creek, Alberta brought this Westech Hydrovac to the 2010 show to ful l that purpose. The elephant-like hose got a lot of a en on from showgoers and photog-raphers. File photo
C6 PIPELINE NEWS August 2012
Kerrobert – Rev Energy Services Ltd. in Ker-
robert is on an expansion tear, adding two new
divisions and a huge 31,000 square foot shop in
a second location fronting Highway 21 south in
just over a year.
Th e local company is diversifying its core
business in oilfi eld construction and mainte-
nance, and pipeline maintenance in Western
Canada, with an eye to national and international
markets.
Th e building houses the new Rev Internal
Coatings division for tubular pipe. Space for
the Energy Process System division for oilfi eld
fabrication is currently located at the old shop in
town.
Th e building features offi ces, vehicle parking,
a maintenance bay, a wash bay and the internal
coating shop with room to relocate the fabrica-
tion shop.
“It’s just the growth in the province – trying
to meet the demands of the oil companies,” said
majority owner Brian Burgardt about the ratio-
nale for expansion.
“Our main focus was on completions, but we
added the new coatings division just over a year
ago.
“Nobody does powder coatings in Saskatch-
ewan. Th e closest shop was Wainwright and they
were getting too busy, so we just thought we’d
start our own. It’s getting busy.”
Rev’s other services include everything from
line lowering, integrity digs and fi eld welding, to
external pipe coatings and internal and external
tank coatings.
Th e internal coatings for pipe and fl anges
that are used for batteries and facilities are
completed in the new Rev coating shop while
external coatings for corroded buried pipeline are
conducted in the fi eld.
Th e coating shop occupies 6,000 sq. ft. of
space in the new building and is equipped with a
blast bay, two ovens and a coating booth to apply
Scotchkote 134 powder coating to pipe from
two-inch to 10-inch diameter.
“Th e purpose of the coating is for longev-
ity. A lot of what comes out of the ground is
very corrosive” said Dan Chapman, manager of
Energy Process Systems, who led a tour of the
coating facility.
Page C7
Rev steps on the expansion pedal
Rev Energy Services opened its new 31,000 sq. . shop last May to diversify and add two new divisions: Rev Internal Coa ngs for pipe coa ngs and Energy Process Systems for oil eld fabrica on. Their core business is oil- eld construc on and maintenance, and pipeline main-
tenance.
PIPELINE NEWS August 2012 C7
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Page C6
“Th is process Scotchkote 134 adds a buff er
between the product and the steel pipe itself and
promotes longevity. Quality control is critical in this
process.
Some manual labour is required to profi le the
pipe and grind the roots down to round edges be-
cause the coating won’t adhere to a rough edge.
Th e pipe is then put into the oven and preheat-
ed to open the pores.
“During the preheat process, you have to sand-
blast it to get a certain profi le so the powder coat
will adhere to it,” explained Chapman.
“Th en it’s into the oven and into the powder
coat booth right away and the powder coat is ap-
plied and put back into the oven where it’s cured
for 15 minutes.”
Th e internal coating division was set up last
July and Chapman said it has met their expecta-
tions so far.
“It’s good. We are seeing a demand for it, and
we are eventually going to work toward an auto-
mated process within the powder coating itself.”
Internal and external pipe coatings are managed
by Darryl Burgardt, who was on hand to talk about
integrity digs for repairs to the external pipelines
that require external coatings.
“If there’s too much corrosion, they have to
repair that part of the pipe,” he said.
“Usually that boils down to putting a sleeve
on to reinforce that pipe, so if there ever is a break,
you won’t get a leak. A sleeve is put on and then it’s
coated afterwards.”
Crews usually pre-blast the pipe after it has
been exposed with a trackhoe and hydrovac to en-
able the pipeline utility to check for damage.
“Th ere has to be clean pipe for them to do their
checks properly. If a sleeve is put on, it has to be
blasted again and coated,” said Darryl, who noted
business is good right now for external coatings.
“Enbridge has got a lot of work on the go. Th is
year alone they’re doing around 600 digs in West-
ern Canada, so it’s supposed to be busy like that for
the next three to fi ve years.”
Page C8
Keith Richards conducts a quality control check on the thickness of a powder coa ng applied to some anges.
C8 PIPELINE NEWS August 2012
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Darryl Burgardt, one of four owners of Rev Energy Services, stands by a company blast truck used for external pipeline repairs and coa ngs during integrity digs.
Page C7Darryl and his brother Brian and their other partners, Barry Schreiber
and Scott Kissock, got into the internal coatings business last year in order to
diversify.
“Th ere’s a big potential for that and we’re seeing that – with the internal
side of things it will take right off . It’s just getting that much busier with it.
“Th ere are a lot of diff erent companies around the area doing a lot of drill-
ing, and a lot of those facilities need the internal coating.”
Th ere is also lots of potential internationally for the company’s Energy
Process systems, an integrated design and fabrication shop that builds every-
thing from piping skids and vessels to mud tanks and debris catchers.
“As of this April, we are an ASME (American Society of Mechanical En-
gineers) credited shop,” said Chapman.
“Prior to that we could build piping and pressure vessels for anyone in the
British Commonwealth and now we can build piping and pressure vessels for
anywhere in the world.
“We can build anywhere from eight-inch scrubbers to nine-foot diameter
by 30-foot seam to seam storage tanks.”
Local and international fabrication business is being driven by clients
such as Northern Blizzard, Penn West, Reform Energy, ColCan CNRL, and
Enbridge.
“Diversifi cation is exactly what we want to do,” said Chapman.
“We built this 30,000 sq. ft. facility for that reason. In order to be a pro-
vider for all parts of Saskatchewan, this is what we felt we needed to do.”
He said Northern Blizzard is taking advantage of what the province has to
off er with a drilling program that he thinks will target 60 wells in 2012 – from
one to seven well pads, and keep Rev Energy fl ush with work.
“Th at means not only maintenance to tie in all these facilities and equip-
ment, but also the welding end of things for the fabrication shop – all the
welded manifolds and piping that they need,” he said.
“Penn West is similar. A lot of their facilities and what they have in central
Saskatchewan already exist, so they would need a lot of maintenance shut-
downs and a few upgrades.”
Rev currently has a staff of about 70 employees, up from 50 a couple of
years ago and more new hires are in the works.
“We are absolutely in an aggressive growth mode,” said Chapman.
Rev'ing up business
PIPELINE NEWS August 2012 C9
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Vermilion – Th e luck of the Irish
holds true for Donal Murphy and
Kevin Murphy.
Both men, who are not related,
arrived in Canada from Ireland with
their families on June 16 and 18
respectively, to start well paying jobs
driving oilfi eld trucks for Sandpiper
Truck Services Ltd. in Lloydminster.
Th ey were both laid off from their
long-term driving jobs in Ireland
where the economy is in a deep funk.
Th e new drivers were recruited by
Sandpiper owner, Lorne Olson, and
chief operating offi cer, Doug Gray,
who took part in recruitment fairs
in Dublin and Cork during a March
2012 mission to Ireland involving 27
Saskatchewan employers.
Th e government of Saskatchewan
provided on-the-ground advice to
Saskatchewan employers and assis-
tance to potential candidates.
Th e two Irish drivers were among
280 skilled workers off ered posi-
tions by recruiters at the job fairs.
Th ey came to Canada through the
Saskatchewan Immigrant Nominee
Program.
Donal hails from Wexford and
Kevin from Fethard in South Tipper-
ary.
Th eir fi rst week of orientation,
under the direction of safety co-ordi-
nator Dwayne Keichinger, included a
visit to the Gibson’s Driving Simula-
tor at the Vermilion Vehicle Inspec-
tion Station on June 21.
Th at was the site of the third an-
nual Alberta Motor Vehicle Transport
Association’s truck driver appreciation
event where Keichinger was thrilled
to introduce his new drivers and talk
about the need for skilled labour.
“I think every company is in need
of good workers – drivers in particu-
lar. It’s good to see some good quality
guys come over,” he said.
“We have fi ve from Ireland so far
and probably another 10 to 15 com-
ing.
“We are a very diverse group.
We have people from all over the
world working for us and from North
America as well. We welcome these
gentlemen over to work for this com-
pany.”
Sandpiper has about 60 oilfi eld
trucks for its Lloydminster opera-
tions including the semi vacs, pressure
trucks, body vacs and fl ushby units
that the new arrivals will be operating
as part of a growing body of nearly 85
drivers on the payroll.
“We put them through our driv-
ing training and through our in-house
company orientation,” said Keich-
inger.
“We put them out with people
– we have a very intense training
program to make sure that we are
comfortable, and they are comfort-
able, before they go out on their own.
“Some of other foreign recruits,
we put them through English as a
second language so we can under-
stand each other a whole lot better.
“Having these gentlemen from
Ireland, their native tongue is English.
Th at really helps.”
Donal said he fi rst thought it was
strange to come all this way and be
talking with other Irish guys at work.
“It should be fun,” he said, adding
his fi nds everyone very friendly and
helpful so far.
He is also relieved to be work-
ing again (he is here on a two-year
permit) to support his wife and two
young children who are settling into
new Sandpiper housing in Lloydmin-
ster.
“I was laid off in February, and
under the current climate over there,
there is very little work around,” he
said about Ireland. Page C11
Irish lucked out with Sandpiper jobs
Kevin Murphy gets his rst test of driving a truck on the right hand side of the road on the Gibson’s Driving Simulator set up at the Vermilion Vehicle Inspec on Sta on. He was recruited from Ireland, along with Donal Murphy, who were both invited to the simulator for the annual Alberta Motor Transport Associa on driver apprecia on day.
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Page C10
“Canada gave me
the opportunity to come
over here, so I am curi-
ous to see what it’s like.”
Donal was hauling
fl our in Northern Ire-
land for James Whitty
Transport, and brings
more than 15 years of
driving experience with
him to his new oilfi eld
job at Sandpiper.
Both of the Mur-
phys will swap their
Irish licences for a Class
5 to drive a car, then
bone up for their Class
1 test in order to drive
an oilfi eld truck.
Th eir chance to
drive safely on the right
hand side of the road for
the fi rst time was inside
the Gibson simula-
tor from which they
emerged with confi dent
smiles and no fender
benders to report.
“Th e initial period
will be a little strange,
but I am confi dent that
after a couple of days it
will be fi ne,” said Donal
who looks forward to
adapting to local driving
conditions.
Kevin said driving
on the other side of the
road in Canada is just
like anything else that’s
new.
“Once you’ve done
it a few times, it be-
comes natural to you.
Once you practise it,
you pick it up,” he said.
Kevin drove a truck
for fi ve years for Bul-
mers Original Cider
until his job became
redundant in the eco-
nomic downturn.
“Th ere’s been huge
layoff s in Ireland at the
moment with the reces-
sion,” he said.
He said the job fairs
in Ireland were well
promoted and he drove
from Tipperary to Cork
for an interview with
the Sandpiper execu-
tives who off ered him
the job based on his
experience.
“Th ere are a lot of
truck drivers looking for
work,” said Kevin.
“Th e jobs that are
existing. you wouldn’t be
able to run your house
with the pay that they
are off ering with the
recession.”
He is not surprised
by the higher wages
paid in the oilfi eld, but
he is pleased to be able
to make a decent living
for his wife and two
youngsters who came
with him.
“You need a rea-
sonable wage to have a
reasonable standard of
living, so that’s what it
provides hopefully,” he
said about his new job
Asked if Alberta
was a culture shock
from his native Ireland,
Kevin laughed and said
his fi rst impression was
it “looks like in the
movies.”
Th ose movies in-
cluded several highway-
and off -road driving
challenges on the virtual
driving video simulator
that was set up for visi-
tors during the AMTA
truck driver barbecue
that Sandpiper supports.
“We have been
involved in it for a
number of years,” said
Keichinger.
“I go to the AMTA
meetings, and I think it
is a very good event to
showcase that drivers in
this country are ap-
preciated. We do want
to thank them for all
of their hard work,” he
said.
Sandpiper safety co-ordinator Dwayne Keichinger, le , was pleased to introduce the company’s latest Irish truck driver recruits, Kevin Murphy and Donal Murphy, during their rst orienta on week and a endance at the Alberta Motor Transport Associa- on driver apprecia on day that was held in partnership with the Vermilion Vehicle
Inspec on Sta on. Both recruits passed a simulated driving test at the Gibson’s Driving Simulator on June 21.
C12 PIPELINE NEWS August 2012
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BODY VACS,STEAMER/PRESSURE WASHER SERVICES
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Explore investment opportunities in your next energy destination, Saskatchewan. Stop by booth 262 at the Lloydminster Heavy Oil Show and visit us online at www.economy.gov.sk.ca
Ministry of theEconomy
Vermilion – Peer pressure is helping trucking
companies in Alberta become safer while saving
them time and money through membership in
Partners in Compliance, or PIC for short.
Th e Carrier Excellence rating that PIC pro-
vides to member carriers is about to permit yellow
PIC plated trucks with transponders to bypass
some Vehicle Inspection Stations in the province.
“Th e one big change that we see are coming
hasn’t happened yet, but we just signed the paper
work to move to a 99 per cent bypass at Alberta’s
busiest scales,” said Kim Hrushenski, senior co-
ordinator.
Hrushenski announced the agreement with In-
ternational Road Dynamics Inc., a Saskatoon-based
leader in the Intelligent Transportation Systems
industry during the Alberta Motor Transportation
Association truck driver appreciation day at the
Vermilion Vehicle Inspection Station on June 21.
PIC carriers will be equipped with ITS tran-
sponders to bypass stations in Leduc, Balzac and
Whitecourt – but not Vermilion which sees just
one-third as many trucks per day as the busiest
Leduc station.
“Our carriers report all of their own eff orts and
take care of their own business, and enforcement
doesn’t see a need to continue with the 98 per cent
bypass – 99 per cent is suffi cient,” said Hrushenski.
“Th e one per cent report rate is enough to cap-
ture that random check that is necessary.”
Hrushenski said savings estimates from being
able to bypass just one scale per day range from $5
to $10 based on the time it takes to slow for the
scale and the fuel associated with it.
“It’s a tremendous benefi t for highway carriers,”
he said.
“Th ere are occasions where a driver may see six
or eight scales in a day, depending on the nature of
their run. Often, it is one to three scales a day.”
“It really takes 12 to 15 minutes out of your day
to pull into a scale, cross the pad and continue.
“If they are able to bypass based on their own
safety eff orts, then they’ve really gained.”
Hruskenski greeted each driver at the Vermil-
ion scale and handed out information kits about
the features and benefi ts of membership, along with
pens and notepads.
Some current oilfi eld PIC members include
Stinger Wellhead Protection, Petrohaul, Miller
Oilfi eld Varco and B&R Eckels Transport.
PIC is available to anyone with a national
safety code number.
PIC establishes safety benchmarks and manda-
tory ongoing monitoring to ensure that member
companies maintain the qualifi cations and commit-
ment required of all PIC carriers.
“Th e carriers that come to us that are able and
eligible have already done all the heavy lifting,” said
Hrushenski.
“Th ey’re doing the safety and compliance in
very defi nite terms before they come to us.
“Th ere is a small membership fee. Th e largest
carriers are paying $1,500 a year, so it’s very small
nominal fee.
“I think by far, the greatest benefi t of the
program is a move to an excellent rating on their
Alberta Safety Fitness Certifi cate.
“Th ere are only 44 carriers in Alberta out of
24,000 that have that excellent rating.”
“Th e PIC membership depends on internal
reporting as well as reporting to our system,” said
Hrushenski.
Page C13
PIC trucks to bypass highway scales
Kim Hrushenski from Partners in Compliance, or PIC, greeted truck drivers at the Vermilion Vehicle Inspec on Sta on with an informa on kit on the PIC safety program during driver apprecia on day.
PIPELINE NEWS August 2012 C13
SEWEURODRIVE
www.kelro.com
Stan Vickers from the Alberta Motor Transport Associa- on helped to hand out goodie bags to truck drivers at
the Vehicle Inspec on Sta on in Vermilion during the AMTA driver apprecia on day on June 21.
Page C12“Th ey have to have a low risk or R factor
value on their carrier profi le. Th e character profi le
is the same idea as your abstract for your driver’s
licence, only this reports the entire carrier.
“Th en they have to a have a national safety
code audit prior to entry and they also need to
have a Certifi cate of Recognition, or COR audit,
through the Worker’s Compensation Board of
Alberta,” he said.
PIC is a joint venture of Alberta Transporta-
tion, WCB Alberta Enforcement and the trans-
portation industry.
Bison Transport, based in Manitoba, is the
only out-of province PIC member with licensed
trucks operating throughout Alberta.
“Recognition in other jurisdictions is some-
thing that we are still working on,” said Hrush-
enski.
“British Columbia has given us a 95 per cent
bypass at their scale system and their Weigh-
in-Motion program which is the highest rate of
bypass there.
“Saskatchewan hasn’t given us any privilege
yet. Th ey are aware of the program.”
Saskatchewan, Alberta and B.C. are mem-
bers of the New West Partnership that aims to
set consistent regulations and policies governing
the operation of large transport trucks, without
compromising safety.
Uniform rules about the size and weights of
vehicles and other aspects of trucking operations
came into eff ect July 1, 2011 allowing trucks to
operate more effi ciently between provinces.
Hrushenski is buoyed by the fact the goal of
the partnership is to have one set of rules that
will apply from the eastern border of Saskatch-
ewan and across Alberta to the coast of B.C.
“We have also been in discussion with the
Northwest Territories. We are moving it abroad.
It’s very much an Alberta legacy program,” he
said.
“Th e carriers involved in our group are
defi nitely the safest out there. Th ey are the ones
making the best eff ort. It isn’t a program of per-
fection; it’s a program of excellence. Th ey are the
carriers that are working the hardest to make it
go well.
“During two diff erent quarters in the last
two years, we have had zero out of service in our
entire carrier group for the reporting quarter – a
pretty tremendous result – we have almost 10,000
units in the program now.”
PIC members range from carriers with just
three trucks to more than 1,200 units including
two bus companies and two counties.
“Th e County of Parkland just joined us and
the County of St. Paul has been with us for sev-
eral months now. It’s quite a diverse group,” said
Hrushenski.
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Kerrobert – Th e town Kerrobert has a new, younger vibe to it thanks to
surging oil and gas activity in the area that has fuelled the construction start of
a new $23 million integrated health centre.
“Th e activity is huge. It’s increased quite a bit from last year,” said Mayor
Erhard Poggemiller.
“Th e weather is against us right now as far moisture goes for the rigs to
get out, but there’s a vast number of new rigs out and new companies drilling
holes.
“I would say the bulk of activity is between Coleville and just north of
Luseland, and then going east and west of Kerrobert up to the Kelfi eld Coulee
near Tramping Lake, then over to the Alberta border.”
Rev Energy, Enbridge, Plains Midstream Canada, Penn West Petroleum,
Northern Blizzard, Alliance Pipeline and Weatherford are among the largest
employers that are bringing new families and prosperity to the area.
“We have a large gamut of oil and gas related industries. I think oil and gas
is going to be a big factor in our development of this community,” said Pogge-
miller.
“We’ve had a lot of support for the health-care facility from the oil and gas
industry.
“If we can maintain the relationship we have with the industry as well as
with the service industries, I think that will contribute to our development a lot
more.
“Agriculture is important in the area, however, it has become where smaller
farmers are selling out and the large operators are buying up or else it is venture
companies buying up land, then leasing it back to these large operators.”
Poggemiller credits the oil and gas industry for helping the town turn the
sod for the Kerrobert & District Integrated Health Centre during its centen-
nial year celebration day last July 23.
Th e new centre, being built by Ellis Don, will provide acute care and long-
term care beds, public health, mental health and addictions services, and 24/7
emergency medical coverage.
“Th e oil and gas industry had a huge impact on us getting that facility be-
cause of the large oil and gas development right around the area – just for the
emergency sake,” said Poggemiller.
Th e closest hospitals to Kerrobert are located in Unity or Kindersley on
Highway 21 and require at least 30 to 40 minutes of driving time to get there.
Page C16
Kerrobert to shine with health care
Kerrobert Mayor Erhard Poggemiller, unrolls a development map at his desk at KEP Industries Ltd., a business that he and his wife Evelyn have owned and operated for years. Strong oil and gas ac vity in the area is driving the demand for new housing and development lots.
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Page C15
“Th e time-span and the life-saving capabilities
for having this facility are huge,” added Poggemiller.
Having access to health care in surrounding ru-
ral communities where most of the oilfi eld activity
is taking place helps keep young families in town,
boosts enrolment at the K-12 Kerrobert Composite
School and encourages businesses to expand.
“It means the viability of the town will continue
to exist and expand,” said Poggemiller in reference
to the new facility.
“A lot of the younger people who are looking
at moving to the town – ask two questions, ‘is there
is a school K-12? and ‘do you have any health care
facilities?’”
Th e new integrated health centre, located at the
junction of Highway 21 and Manitoba Avenue on
the south side of town, will also accommodate 38
beds, of which 30 will be designated for long-term
Kerry Ward, the town’s Class 1 water operator, restarts the reverse osmosis facility a er a power outage on June 26. Saskatchewan’s minister of the Economy, Bill Boyd, is expected to a end the grand opening of Ker-robert’s new water treatment plant on Aug. 3.
care residents.
“With a new health-care facility such as that
with a lab and all those kinds of amenities, it’s
defi nitely an attraction for people to come to town,”
said Poggemiller.
Th e funding formula requires Kerrobert to raise
$5 million or 20 per cent of the cost with fundrais-
ing led by Kerrobert, Luseland and District (KLD)
Wellness Foundation chair Stew Seversen.
“Th e KLD Wellness Foundation, in conjunc-
tion with Heartland Health Region, has worked
very hard to see this new integrated health facility
start,” said Seversen in the offi cial project sod-turn-
ing announcement last July.
“Our corporate partners, municipalities and
residents have looked forward to this day. We thank
all our stakeholders who made this happen.”
Th e KLD has raised more than $4 million with
another million to go to furnish the facility.
Page C17
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Page C16Kerrobert lies in the riding of Saskatchewan
minister of the Economy Bill Boyd, who is expect-
ed to offi ciate at the grand opening of the town’s $5
million reverse osmosis water treatment facility on
Aug. 3.
“One of the things the town was always noted
for over many years was brown water. We now
have a reverse osmosis system, and we have totally
cleaned up the water,” said Poggemiller.
Poggemiller fi gures the new water system and
a recent expansion of the town’s lagoon size could
allow the population to grow from approximately
1,100 today to well over 1,500.
“Our next biggest challenge is to change the
waterline within the town, then repave the town,”
he added.
Kerrobert plans to replace waterlines next
summer on six blocks along the main thoroughfare
where Highways 51, 31 and 21 conjoin – with a
recent traffi c count of 700 to 800 large vehicles a
day.
“We’ve been doing a fair bit of lobbying to try
to get Highway 51 improved going east and west
of town just because of the vast number of oilfi eld
related activities going, and the heavy loads going
through town,” said Poggemiller who expects the
paving will happen in 2014.
Th e robust oil and gas economy in the area has
brought new businesses to town along with the
usual shortages of available housing or develop-
ment lots.
“It’s almost impossible to fi nd rental space. We
have been out trying to lure some developers to
town to develop entry level housing,” said Pogge-
miller.
Local businesswoman and life-long resident,
Lori Parnitsky has opened up a portable open
camp in town for workers or visitors. Called Kel-
ordan Camp, it goes with her new Kelordan Grill
family restaurant.
“Hotels are booked pretty consistently. Th e
campground is pretty well full, so it’s really tough,”
said Poggemiller when referring to the accommo-
dations situation.
Th e Town has an inventory of residential
building lots with new lots selling for up to
$25,000 on a break-even basis to cover the cost of
servicing. Some existing serviced lots are priced
from as low as $1,500 to $5,000.
More information on residential, commercial
and industrial lots is available on the Town’s new
website that includes a business directory updated
by the Chamber of Commerce.
Th e update includes the recent addition to the
directory of Exterran-Canada, a provider of natu-
ral gas compression products and services along
with equipment and solutions for processing,
production, air emissions and water treatment.
Th e next listing could be Agora Construction
that has begun construction of a new cabinet mak-
ing shop in the old downtown core as interest in
investing in Kerrobert keeps pace with oil and gas
activity.
“We updated the profi les on the town and the
council, so when people come to town they know
who they’re talking to. Th ey also have access to
information about our health-care system,” said
Poggemiller.
“It’s phenomenal the number of hits we’ve had
to the website since we’ve upgraded it.
“It’s very important, because for a lot of
people, the fi rst point of contact with a commu-
nity nowadays is through the Internet. It’s very
important that you keep your information cur-
rent,” he said.
Kerrobert na ve Lori Parnitsky recently moved her Kelor-dan open camp to a new loca on on her own lot in town to accommodate transient oil and construc on workers in the area. She also launched her Kelordan Grill Family Restaurant to cater to overnight guests and mobile oil- eld workers.
C18 PIPELINE NEWS August 2012
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Vermilion – Th e rubber and the road came to-
gether for Fountain Tire and oilfi eld truckers at the
annual Alberta Motor Transport Association driver
appreciation event at the Vehicle Inspection Station
near Vermilion.
Skip Krake, outside sales representative for
Fountain Tire in Lloydminster, came to the June 21
event to mix burgers, handshakes and tire products
with a large gathering of truckers.
“Th e goal is to just be visible and talk to the
guys, and of course, there are a lot of our customers
coming through here,” said Krake.
“We don’t do an awful lot with long haul-
ers, but there’s the crude haulers stopping in for a
burger today, and we’re just wishing them well and
basically saying thanks for the business.
“About 80 per cent of our business is oil related.
We sell an awful lot of trailer tires for crude haulers
and we specialize in Goodyear and Dunlop tires.
“Th ere’s a variance of tires. We have a lot of
diff erent models for diff erent reasons and diff erent
conditions.
“So really, we just don’t sell one type – there are
several type of tread designs to accommodate the
conditions the guys are driving in,” Krake said.
Th e AMTA appreciation event was the perfect
opportunity for Fountain Tire to roll out Good-
year’s new G741 truck tire engineered for oilfi eld,
mining, logging and construction applications.
Th e tire made with a cut and chip resistant
tread compound was launched this year and Krake
said, “We hope it’s going to work out, and I think it
will.
“It’s a very good grip tire, yet has high mileage.”
Th e G741 also has an innovative side wall
design that allows truckers to place winter chains
about the tread blocks for enhanced traction and
grip.
“Th ere’s always changes being made,” said
Krake about tire products and technology.
“Th ere is one thing we have that nobody else
has, and it’s called Goodyear DuraSeal. It’s like
another liner. You have several plies of steel in a tire,
and this is just another layer.”
DuraSeal is billed as the world’s fi rst built-in
tire sealant for commercial truck tires that instantly
seals tread punctures.
“It will seal a hole puncture up to a quarter
inch,” said Krake.
“If you put a quarter-inch bolt or nail through
it, you won’t lose any air. It’s quite an amazing
invention.”
Fountain Tire off ers a wide range of car, pickup,
commercial truck and specialty tires, as well as
custom wheels.
Tires sales for crude hauling trailers lead the
way in a strong heavy oilfi eld truck market in Lloy-
dminster.
“It’s been pretty good for the last while. Th ere’s
no question about that – very appreciative, yes,
indeed,” said Krake about sales in recent months.
Fountain Tire also off ers product repair servic-
es, and complete automotive service for any make
and model of vehicle.
“Service is a huge part of our industry. Nobody
changes tires themselves anymore,” said Krake.
“We have after-hours 24-hours-a-day service.
It’s a huge part. We just have to service what we sell
for our customers.
“Downtime is hugely important for customers.
Th ey want it done; they need it done and they need
it done now. Our service guys are at their beck and
call 24 hours a day.
“We’ve got 20 guys in all, busting tires and
working up front behind the counter.”
Krake said the company is not alone in its need
to attract new, experienced manpower to the work-
force, but he notes they are able to keep up with
needs of their customers.
Page C19
Fountain Tire scores points in Vermilion
Fountain Tire sales rep, Skip Krake, brought the new Goodyear G741 on/o road high mileage oil eld truck re to the Vermilion Vehicle Sta on for the annual truck
driver apprecia on day on June 21. The apprecia on day was presented by the Alberta Motor Vehicle Inspec on Sta on.
PIPELINE NEWS August 2012 C19
Page C18
“We’ve been very fortunate – we have a good
core of people that we’ve retained over the years and
have been around for a long time,” he said.
Krake describes himself as being part of a team
at Fountain Tire, which is fi tting, given that he
played for three NHL teams between 1963-64 and
1970-71.
Kent Staniforth, the general manager, is the
coach of the Lloydminster Border Kings senior men’s
hockey club and franchise owner, Brant Wheeler, is
a major advocate of local youth and adult hockey.
“When we get time, of course – we’ve never
shirked our duty – but we do talk a little hockey,”
joked Krake.
“Kent is a very avid hockey fan as well as a coach,
and he’s done an awful good job in Lloydminster,
coaching Junior Bs and the Border Kings, so we are
very proud to have him working for us.
“It’s a good scene. We learned some teamwork
along the way and it continues at Fountain Tire.”
Krake played 68 games for the Boston Bruins in
the fi rst 1967-68 NHL expansion year.
He is over the moon with Lloydminster being
chosen to celebrate Hockey Day in Canada in Feb-
ruary, 2013.
Activities associated with Scotiabank Hockey
Day in Canada get under way on Feb. 5, and on Feb.
9, CBC Hockey Night In Canada commentator Ron
McLean will host a live broadcast to culminate a
week of community activities and events celebrating
the game across Lloydminster.
“It’s absolutely priceless. You have to be awful
fortunate to get it,” said Krake.
“Mayor ( Jeff ) Mulligan and a whole lot of other
people did an awful good sell job on it. Th ey have
promoted the city tremendously well – with CBC
being out here. “
Fountain Tire was also the sponsor of the an-
nual Hartnell & MacArthur Celebrity Golf Classic
held this year in Lloydminster, the day before the
AMTA event.
“We just had the Fountain Tire celebrity golf
classic yesterday ( June 20). Th ere were probably
40 young guys out of the National Hockey League
here,” said Krake.
Philadelphia Flyers left winger Scott Hartnell,
along with Toronto Maple Leaf Clarke MacArthur,
turned up at the opening charity barbecue at Foun-
tain Tire on June 19, the proceeds of which go to
the Lloydminster and District SPCA.
“CBC was even here to cover the event. We will
get a lot of publicity for the city of Lloydminster
come February,” said Krake
Krake expects Fountain Tire will play a role in
Hockey Day in Canada along with every other busi-
ness in town hoping to put the city and its hockey
sponsors on the map.
“We will need the whole town to get the job get
done, for sure,” he said.
Krake has no argument with the notion that
hockey and the oilpatch go hand in hand, especially
in Lloydminster.
“I think you’ll fi nd an awful lot of the guys that
run the businesses in town are pretty much all hock-
ey fans. It just seems to be the way of the world in
Canada,” he said.
Fountain Tire has recruited employees who play
for the local Junior B Bandits and Junior A Bob-
cats along with the senior men’s Border Kings who
played in this year’s Allan Cup held in Lloydmin-
ster.
Krake said he has always worked in the tire
business, but he said he came close to working in
the oilfi eld while playing hockey for the Estevan
Bruins in the 1960s.
“I was awful close to it. I just about, as a 17 or 18
year-old, went to work on the rigs, but instead I got
into sales that summer,” he said, noting that selling
tires is a great job.
“You bet. I get to see a lot of good people.”
Skip Krake, an outside sales rep for Fountain Tire in Lloyd-minster, is framed by the doughnut of this new Goodyear G741 oil eld truck re as he checks the re pressure on his company pickup. The day before the event, Fountain Tire sponsored the second annual Hartnell & MacArthur Golf Classic in Lloydminster featuring locally developed NHLers Sco Hartnell from the Philadelphia Flyers along with Clarke MacArthur of the Toronto Maple Leafs. Krake played for three NHL teams in the 1960s and ‘70s, the Boston Bruins, Los Angeles Kings and the Bu alo Sabres.
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2012 Kenworth T470 Daycab Roll Off 2012 Kenworth T370
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Ideal for Flat Deck, Van Body, Oilfi eld Service body w/small Fassi 95 picker size crane - white in color, Paccar PX 6 300 HP engine, NEW Eaton Fuller FSO6406A 6 Speed Synchro manual transmission, Dana Spicer 8K front axle with taperleaf spring suspension, Dana Spicer 13.5K rear axle with limited slip 3.73 gear ratio differential and Reyco taperleaf rear spring suspension, Hydraulic brakes with ABS, 9 7/8" x 1/4" Steel Frame Rails, 176" Wheelbase - 108" Cab to axle, Low profi le Bridgestone tire with Painted white rims, Aerodynamic sloped front hood, Am/FM/cd, A/C, cruise and tilt telescopic steering, Power and locks, daylight cab door design with peeper window, glove box, High back vinyl air suspension driver’s seat with high back vinyl toolbox passengers seat, Curved glass windshield with stainless steel exterior sun visor, Dual halogen head lamps, 66,200 kms
Full Tilt Dominator Mechanics body with sliding roof and barn doors, interior lights, front and rear work lights, back-up alarm, posi lock system, heavy duty tie down. 10,500 lb Max 6025 crane with lift to 26’ 7”, Hydraulic drive reciprocating air compressor 35 CFM @ 100 psi, Paccar PX8 300 HP Engine , Allison 3500 RDS 6 speed with PTO provision, Dana Spicer 14.6K Front axle, Dana Spicer 23K Rear axle with diff lock and Hendrickson HAS230L rear air suspension, Air brakes with ABS, 10 5/8” x 5/16 Frame rail with removable front tow hooks, 56 gallon fuel tank, Accuride painted white rims with Goodyear tires front and rear locations, Aerodynamic sloped front hood, Pinnacle cab interior equipped with Kenworth Driver Information Center, A/C, Tilt and telescopic steering wheel, air suspension gauge, am/fm/cd radio, daylight cab door design with peeper window, glove box, High back vinyl air suspension drivers seat and high back vinyl passenger battery box., Heated and polished stainless steel mirrors with convex mirrors, power LH and RH window lifts, Curved glass windshield with stainless steel exterior sun visor, Dual halogen head lamps, Full truck air kit for trailer, May not be exactly as shown.
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C22 PIPELINE NEWS August 2012
Kerrobert – Lori Parnitsky went from being a stay-at-home mom in Ker-
robert to owning and operating a busy open camp and restaurant catering to
oilfi eld and construction crews in the last three years.
Th at helps to explain why she took off the fi rst week in July for a vacation
after working seven days a week at her Kelordan Open Camp and her Keloran
Grill Family Restaurant located kitty-corner to each other at the junction of
Highways 51, 21 and 31.
“It’s been great especially this last four weeks. I am going on a week’s
holiday next week, and I think I deserve it,” said Parnitsky who does everything
from cooking and waitressing to booking available rooms.
“Trying to fi nd staff is impossible. It’s a lot of hours. I love the people.
Th at’s what keeps me coming back.”
Parnitsky owns the 42-rom camp and nearby grill with two other out-of-
town investors.
Th e camp is currently home to construction crews that started building
the $23 million Kerrobert & District Integrated Health Centre in June, and
is popular with seasonal and overnight workers and travellers looking for a
bargain.
Th e camp and grill go together like a bun and burger.
“When they take a room at the camp, they have a choice of either getting
food included with their room or just the room,” said Parnitsky.
“Th e guys that are working at the hospital are getting their food included,
so that’s three meals a day, and they come in to get snacks in the afternoon or
whatever.
“About 25 of them came in for supper last night. Tonight they asked for
pizza. We usually don’t have pizza on the menu, but we are catering to them. It
makes them happy. Th ursday, they have asked for lasagna.”
“I don’t run it like a typical camp. It’s kind of a like a little mini hotel, so
that they don’t have to bring their own bedding,” said Parnitsky.
Each room is equipped with a TV, a DVD player and wireless Internet, and
furnished with a desk, a wardrobe and a bed. Th ere are mini fridges in some
suites.
Overnight guests have access to washers and dryers and two of the rooms
have been converted to a coff ee room and an offi ce.
“I have actually brought in barbecues now and then if guys want a barbecue
down there,” said Parntisky, who spoke about her ventures during her break at
the Kelordan Grill.
“I waitressed for 18 years – I was a stay-at-home mom and ended up buy-
ing the camp and this. It wasn’t exactly in my plan, but it’s working out so far.”
She said she bought the camp three years ago in October and the restau-
rant last January. Th e purchases were based on need.
“Th ere weren’t enough places in town. Th ere were guys coming with their
camper trailers. Th ey were staying on farms in the last boom,” said Parnitsky.
“We kind of missed the end of that when we bought the camp, so it was a
little bit slow for the fi rst year. Now it’s starting to kick off again, which is very
nice.
Page C23
Camp and grill serves all
Lori Parnitsky, who with two out-of-town partners owns the Kelordan Grill Family Res-taurant and the Kelordan Camp in Kerrobert, is pictured at the restaurant with her husband Allan who owns Kerrobert Sand & Gravel.
PIPELINE NEWS August 2012 C23
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LAMARRE EQUIPMENT INC.
Page C22“It was pretty slow in the spring when it
rained and we didn’t have anybody. When they all
come in now – it’s crazy.
“Th ere wasn’t a restaurant to cater to them, so
I had to buy this also.
“I am hearing from Northern Blizzard and
Penn West and Enbridge. Enbridge does a lot
with catering and such. It’s an excellent company
to deal with.
“Th ey’ve all said the next three to fi ve years
should be good.”
Rev Energy, Plains Midstream Canada,
Northern Blizzard, Alliance Pipeline and Weath-
erford are some of the other the major employers
that are boosting economic development in the
area.
“I’ve been hearing that it’s not going to slow
down anytime soon - like for the next three years,
which makes me happy,” said Parnitsky.
Her husband Allan owns Kerrobert Sand
&Gravel, a company that specializes in oilfi eld
construction.
Parnitsky’s father, Stew Seversen, is the chair
of the Kerrobert, Luseland and District (KLD)
Wellness Foundation that so far has raised more
than $4 million of the town’s $5 million portion of
the new health centre cost.
“We are kind of out in the boonies here. If
something was to happen, even having to drive a
half hour to Kindersley could be disastrous,” said
Parnitsky about the need for the hospital.
Th e hospital construction crews are helping to
fi ll the camp, which had about 50 per cent occu-
pancy rate in early July. Th e spring and fall are the
busiest seasons for oilfi eld overnighters.
“Spring is when they fi rst come in, and then
they get established as to what they are going to
do for the year,” said Parnitsky.
“With all this rain we got pushed back quite
far. In the fall, they want to get everything done
before snowfall.”
“I’ve got some guys that have been in and out
of the camp for that last two years. Th ey just pop
in, sleep the night, and go down their way to seis-
mic or whatever. Seismic fi lls it for two days solid.”
Th e trailer-style camp was originally located
next to the Kelordan Grill fronting Highway 21
south on rented land, but was moved recently to
its new location on land purchased from the town.
Th e key to the business is the Kelordan Grill,
with homemade burgers such as the Betty Boop
and the Chuck Berry Chicken burger bringing in
the hungry-man crowd for three squares a day.
“I’ve got three really good cooks and I am try-
ing to keep them,” said Parnitsky.
“Th ey are hearing the oil jobs are better and
they want to go and work up in camp, so I’ve had
to sweeten the deal every once in awhile.
“I told them they are working at a camp. You
can be a camp kitchen manager here.”
“I kind of got thrown into this quite quickly.
We bought the camp three years ago. I was a stay
at home mom. Th ere wasn’t a restaurant to cater to
them so I had to buy this also,” said Parnitsky.
The backbone of the Kelordan Grill is the cooking sta . Pictured during the busy lunch period are le to right: Sarah Ward, Sadie Schan and Pamela Greschner.
Kelordan Open Camp is owned and operated by Lori Par-nitsky who recently moved the camp from a rented lot to this purchased property ki y-corner to her Kelordan Grill. The camp o ers rooms for $55 a night or a room with three meals a day for $125.
C24 PIPELINE NEWS August 2012
For more information about Dry Ice Blasting,
contact Medius Industrial toll-free at 1.800.675.5771,
in Regina at 306.565.3395, or in Yorkton at 306.620.6632.
Visit them online at mediusindustrial.ca.
New industrial cleaning method taking off and paying off in oil fields
industrialH E A V Y D U T Y R E S T O R A T I O N
ive years ago the term dry ice blasting was virtually
unheard of in the oil and gas industry. Today, however,
the process is rapidly becoming the preferred method
of cleaning among the industrial, commercial, utility, and
environmental sectors. Regina-based Medius Industrial
is now bringing the technology to Saskatchewan oil fields.
So, how does it work? And why is it so quickly replacing
previous cleaning techniques?
Dry Ice Blasting at a glance Tiny CO2 (ice) pellets are blasted at
supersonic speeds through a jet of
compressed air at -78 degrees C or
-109.3 degrees F. Upon contact with
the ice, contaminants shrink and lose
adhesion from subsurfaces. The dry
ice is then converted back into carbon
dioxide gas and evaporates into thin air.
The process effectively and efficiently
removes contaminants such as bitumen,
corrosion, chemicals, acids, and heavy
oils without causing any damage to
the underlying surface or creating any
secondary waste.
Greater profitsThe benefits of CO2 blasting are many,
leading more and more industries
to move away from traditional less
efficient cleaning and restoration methods. The oil and
gas sector, in particular, has seen a spike in the use of
this new technology. Because the process allows for
equipment to be cleaned hot whilst online, there is no
need for disassembly or shutdown. This equates to less
downtime and greater profitability. Dry ice blasting
is also non-toxic, non-abrasive, non-conductive and
environmentally responsible.
More versatilityChris Krasowski, General Manager for
Medius Industrial says, the possibilities
with their dry ice blasting service are
virtually limitless, “One of the greatest
advantages to our dry ice blasting process
is its extreme versatility. Clients can use
it to clean piping, wellheads, valves,
vessel interiors and, well... pretty much
anything they need cleaned.” Those in
the oil and gas sector find the system
particularly attractive as it reduces the
chance of foreign materials such as sand
or debris from entering and damaging
process equipment.
With oil drilling set to increase by 6% in
Saskatchewan during 2012, dry ice blasting
will undoubtedly be an option more will
be considering.Photos courtesy of Cold Jet
BEFORE
AFTER
F
“Unlike hydro-blasting, we can use CO2 blasting 12 months of the year,
as cold weather does not hinder its effectiveness.”
- Chris Krasowski, General Manager, Medius Industrial
PIPELINE NEWS August 2012 C25
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Moody’s Equipment in Lloydminster drove a slew of farm and construc on equipment under sunny skies.
The Al Shamal Shriners Al-Wa Oil Patrol delighted youngsters during the Lloydminster Colonial Day parade that weaved its way through the downtown core.
Halliburton was one of several oil and gas companies to enter an oil eld vehicle or a oat in the parade.
Lloydminster's Colonial Days July 11
Photos by Geo Lee
C26 PIPELINE NEWS August 2012
One Call Will Supply It All
Vermilion – Th e worst thing that can happen during a virtual oilfi eld truck-
ing accident is a bruised ego or a tongue lashing from the instructor.
Th at’s the beauty of the Gibsons Driving Simulator that is designed to
evaluate and improve decision making skills and driving behaviours with pro-
grammable driving scenarios on a digital roadway.
Th e simulator was a popular attraction during the annual Alberta Motor
Transport Association driver appreciation day at the Vermilion Vehicle Inspec-
tion Station on June 21.
“We utilize it for education and some training. We throw diff erent sce-
narios at drivers and we educate them on what they may experience in the real
world,” said Fred Pendleton, Gibson Energy’s health and safety specialist who
is based in Lloydminster.
“If they roll the unit here or crash it here, we educate them on the diff er-
ent types of things they can do diff erently out there, so they can prevent the
rollovers and the crashes and that sort of thing.”
Pendleton can control every scenario the driver sees on screen from diff er-
ent weather conditions and mechanical failures such as a tire or break failures
to threats from oncoming vehicles crossing the centre line or wildlife in harm’s
way.
Th e simulator helps Gibson to provide defensive driving skills for their
huge fl eet of owner operator trucks including up to 80 oilfi eld haulers in the
Lloydminster area and 1,500 corporate wide vehicles.
Gibson contract carriers who transport crude oil, asphalt and propane/
butane and sulphur products in the company’s Western Canadian operations
undergo safety training in the simulator.
“It’s for new drivers, old drivers – anybody that has been involved in a col-
lision or an accident,” said Pendleton.
“We bring them in and we run them through that scenario just to see
where things went wrong, and try to educate them to prevent it from re-occur-
ring.
“It’s meant for Gibson employees, but we do a lot of charity work I guess
you could say. We take it out to schools and events like this AMTA barbecue.”
Driver safety and appreciation was the theme of the event that attracted
Rod Shopland to welcome drivers as a local member of the AMTA board of
directors and the owner of Night Hawk Truck Lines in Lloydminster.
“We are just here to shake a few hands and say thank you to the guys,” said
Shopland, who is pleased to support the growing number of oilfi eld related
trucks on the road with safety training from the AMTA.
“We specialize in driving training and off ering courses for the diff erent
needs that even the oilpatch has,” he said.
“We provide mostly driver safety training – personal driver improvement
programs. We off er fi rst aid and dangerous goods and things like that.
“We have a COR program (certifi cate of recognition) for safety as well,
which is for the trucking industry. If drivers from the oilfi eld want to use our
COR, it’s available to them.
“Anybody who is a part of WCB is automatically an associate member of
the AMTA.”
More than 300 trucks drivers were expected to pull into the inspection sta-
tion for a burger, many of whom were waiting for a turn in the driver’s seat of
the Gibson simulator.
Th e simulator includes scenarios for off -road oilfi eld driving with hills and
curves to challenge drivers.
Page C27
Gibson simulator steers safer drivers
Fred Pendleton operates small and large vehicle driving scenarios for visitors inside the Gibsons Driving Simulator at the AMTA driver apprecia on day at the Vermilion Vehicle Inspec on Sta on on June 21.
PIPELINE NEWS August 2012 C27
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The Gibsons Driving Simu-lator, managed by Gibson health and safety specialist Fred Pendleton, features simulated driving condi- ons and scenarios that
can teach defensive driv-ing skills and how to react to threats such as blow res and wildlife.
Page C26“When we throw in rain, we want to see if they adjust their driving speed,
and if they require a tire change, to maintain their control on the roadway,” said
Pendleton.
Pendleton said the value of the simulator to Gibson is that it teaches driv-
ers how to react safely to avoid accidents or prevent another one from occur-
ring.
“We had one driver heading up to Bonnyville and he blew a steering tire.
He remembered what he learned in the simulator about maintaining control
and slowing down, and he didn’t end up in the ditch,” said Pendleton.
Th e majority of oilfi eld driving accidents are rollovers that Pendleton said
can be prevented with simulated driving lessons.
“Th at’s due to guys, when they drop their steering tire off the road, the
natural reaction is to pull it back,” said Pendleton.
“We educate our guys that when you feel that wheel drop off , maintain
control and put it straight in the ditch. Th is way you won’t roll.
“You won’t have that fl uid slosh around and cause you to roll over. We can
off -load you and pull you out – less damage that way.”
Vehicle safety can also be an issue, so Gibson stays on top of maintenance
with an in-house program using a third party inspection program similar to
what a Department of Transport offi cer would conduct.
Shopland said the AMTA driver appreciation event is a great forum to
talk with drivers and to fi nd out what out “what’s happening out there?” on the
road.
Some of the feedback is a general thumbs-up to the move to harmonize
trucking regulations across Saskatchewan, Alberta and British Columbia
through the New West Partnership economic pact signed by the three prov-
inces in 2010.
Uniform rules about the size and weights of vehicles and other aspects of
trucking operations came into eff ect July 1, 2011, allowing trucks to operate
more effi ciently between provinces.
“Th at’s been a marvelous thing for the trucking industry,” said Shopland.
“Th e more harmonized things are, the more streamlined our industry is.
You just load your loads for your province, and you are good for the other ones.”
Th e rules are good for Night Hawk, a company that specializes in the long
haul of building products and some oilfi eld equipment hauling with an active
fl eet of fl at decks and vans.
“It’s been busy. It’s been a good year and it looks like it’s going to be a re-
ally good summer and fall,” said Shopland.
SLH Transport Inc. from Calgary came to the AMTA event to recruit new
drivers, a situation that also concerns Shopland at Night Hawk.
“We have a pretty good bunch of loyal guys who have been with us for
years,” said Shopland “but we are the same as everybody else.
“We are fussy about who we hire because of the repercussion of what can
happen with bad drivers, so you want to fi nd good ones.”
C28 PIPELINE NEWS August 2012
PIPELINE NEWS August 2012 C29
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Calgary – Twin Butte Energy Ltd. will become a bigger force in the Lloy-
dminster heavy oil play with its $88.9 million purchase off er of privately-held
Avalon Exploration Ltd.
Avalon shareholders are expected to approve the sale in late August on the
basis of 1.1 common shares of Twin Butte for each outstanding Avalon share.
At closing, Twin Butte will acquire Avalon’s production of approximately
1,920 barrels of conventional heavy oil per day and more than 85,000 net acres
of undeveloped land in the Lloydminster area
Th e Avalon lands are contiguous to Twin Butte’s and eff ectively double
Twin Butte’s net undeveloped land position in the Lloydminster heavy oil fair-
way to 162,000 acres from approximately 77,000 acres.
Twin Butte will also receive a signifi cant seismic database of 556 kilome-
tres of proprietary data and 2,271 kilometres of trade data.
Th e acquisition further establishes Twin Butte as a signifi cant operator in
the area.
Th e Calgary based company estimates that approximately 75 per cent of its
current production comes from the Greater Lloydminster area and that could
be more than 80 per cent by the end of 2012 with the Avalon acquisition.
“As a larger, stronger company, Twin Butte will use its fi nancial fl exibility
to capitalize on its expanded low risk drilling inventory,” said the company in a
news release.
Twin Butte and Avalon believe the strategic transaction off ers an excep-
tional opportunity to create substantial value for their respective companies and
shareholders.
“Th e transaction will provide Avalon shareholders liquidity and the oppor-
tunity to participate in a much larger, well capitalized and hedged company,”
said David Bredy, Avalon’s president and chief executive offi cer.
“In addition, the Avalon shareholders will be able to participate in Twin
Butte’s monthly dividend stream. Avalon’s assets are an excellent fi t with Twin
Butte and they will defi nitely benefi t from Twin Butte’s strong technical team
and greater access to capital.”
It is anticipated that Twin Butte’s credit facility will be increased to $240
million from the current $205 million upon closing.
Twin Butte believes the acquisition will be a signifi cant operational and
strategic fi t with their Lloydminster heavy oil operations and plans.
Twin Butte’s growth is focused in the heavy oil area from Frog Lake, Al-
berta to Primate, Saskatchewan and is directing 100 per cent their 2012 capital
budget to this area.
Th e buyout will give Twin Butte a low risk, high rate of return portfolio
of over 85 development heavy oil drilling locations in areas that have seen low
recovery factors to date as well as over 20 exploratory targets providing signifi -
cant upside potential for long term reserve appreciation.
Th e acquisition includes Avalon’s proved reserves of 3.29 million barrels of
oil equivalent and proved plus probable reserves of 5.19 million boepd based on
an independent reserve report for the year ended Dec. 31, 2011.
Th e pre-tax present value of the proved plus probable reserves at the report
date was $136.3 million.
Th e deal will also generate an estimated annual general and administrative
savings in excess of $2.3 million.
Twin Butte offers $88.9 million for Avalon
In November 2011, Richard McKenzkie, le , Avalon’s vice-president engineering was congratulated by Joe Bowser, manager of Auto-mated Tank Manufactur-ing in Kitscoty for purchas-ing the 1000th 1,000-barrel tank made by ATM. Avalon also purchased the very rst 1,000 barrel tank pro-
duced by ATM in 2008. Avalon shareholders are expected to approve the sale of their company in August to Twin Bu e Ex-plora on which operates in the Lloydminster heavy oil area. File photo
C30 PIPELINE NEWS August 2012
Edmonton – Husky Energy is one of six companies selected to receive a
share of $46 million from the Climate Change and Emissions Management
Corporation to support six new clean technology projects.
Th e CCEMC funded projects have a combined value of more than $327
million.
Husky Energy will receive $2.9 million for its CO2 demonstration project
in Lashburn, just east of Lloydminster.
Cenovus Energy Inc. will be allocated $10 million in CCEMC funds for
a 10MW pilot chemical looping steam generator at Christina Lake near Fort
McMurray.
“Th e CCEMC is supporting industry eff orts to reduce greenhouse gas
emissions from fossil fuels while helping to ensure Alberta can continue to be
a global energy leader, even as we transition to other sources,” said CCEMC
CCEMC funds $46M for carbon cuts
The Climate Change and Emissions Management (CCEMC) Corpora on announced $46 million in funding to support six new projects. Par cipants included (l-r) Glenn Sco , senior vice-president, Imperial Oil; Alexander S ckler, VP commercial a airs, N-Solv Corpora on; Bre Henkel, co-founder and VP opera ons, Inventys Thermal Tech-nologies Inc.; Diana McQueen, minister of Environment and Sustainable Resource De-velopment; CCEMC chair Eric Newell; Brad Bellows, director of communica ons, MEG Energy and Song P. Sit, technical adviser, Cenovus Energy. Photo submi ed2005 KENWORTH T800B
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chair Eric Newell in July 12 announcement.
“By addressing challenges facing Alberta’s large emitters, we are funding
projects that have tremendous potential to reduce Alberta’s greenhouse gas
emissions over the long term.”
Other fund recipients include Imperial Oil that will get $10 million for a
cyclic solvent process pilot project at Cold Lake.
Inventys Th ermal Technologies Inc. will be funded $3 million for the Ve-
loxoTh erm CO2 capture project at Joff re.
Page C31
PIPELINE NEWS August 2012 C31
Page C30MEG Energy Corp. will receive funding of $10 million for heavy crude
quality improvement in the Alberta Industrial Heartland Region.
N-Solv Corporation will receive $10 million for its N-Solv BEST pilot
plant at Suncor Dover in Fort McMurray.
“Th ese innovative projects continue to demonstrate how Alberta leads
the way in supporting and developing responsible, clean-energy technology,”
said Alberta Environment and Sustainable Resource Development Minister
Diana McQueen.
“I’m confi dent that continued innovation by industry will help Alberta
demonstrate leadership in environmental management while meeting grow-
ing global energy demand.”
CCEMC estimates these six projects will combine to reduce emissions by
more than 183,000 tonnes over 10 years, and that does not consider further
emissions reductions as technology is commercialized.
Th e potential emissions reductions that could be realized through build
out and commercialization of these technologies is estimated at fi ve mega-
tonnes by 2021.
For every dollar CCEMC invests in these projects, about another $7 are
also invested.
Th e six projects are from the CCEMC’s fourth round of funding that
was announced in April 2011. Th e maximum CCEMC funding per project
for this round is $10 million.
With this announcement, CCEMC has announced plans to support 31
projects with a total commitment of more than $156 million.
In total, these 31 projects are valued at more than $828 million. Com-
bined, the CCEMC estimates they will reduce emissions by nearly eight
megatonnes over 10 years in Alberta.
In addition, the organization has also announced support for biological
and adaptation projects.
Th e CCEMC focuses on stimulating transformative change. Enabled
through regulation, the CCEMC is an independent not-for-profi t organiza-
tion that provides ongoing, dedicated funds to support the discovery, devel-
opment and deployment of innovative clean technology.
Funding for CCEMC is collected from industry. Since 2007, Alberta
companies that annually produce more than 100,000 tonnes of greenhouse
gas emissions over a baseline are legally required to reduce their greenhouse
gas intensity by 12 per cent.
Companies have three options to meet their reduction target: improve
the effi ciency of their operations, buy carbon credits in the Alberta-based off -
set system or pay $15 into the Climate Change and Emissions Management
Fund for every tonne over the reduction limit.
Th e CCEMC invests the money collected in clean technology.
By the end of the 2011/12 operating year, the CCEMC expects to be
involved in close to $1 billion of active projects that reduce emissions and
spur innovation in clean technology and help our world move toward more
sustainable practices.
P.O. Box 1443, S9V 1K4 • 3705-52nd Street Close, Lloydminster, SKPhone 306-825-5933 • Fax 306-825-5935 • Email [email protected]
Calgary – Th e demand for skilled
workers by Canadian oil and gas com-
panies is becoming a scary monster on
the loose, especially in Alberta.
Not even the lowest natural gas
prices and global economic uncertainty
can bring Jobzilla to its knees.
Th at’s the consensus of the Pe-
troleum HR Council’s survey of 37
petroleum companies representing
60,000 employees in the upstream and
midstream sectors.
Th e survey is the basis of the coun-
cil’s labour report on labour market
conditions and human resource trends
titled Th e HR Trends and Insights: A Look at Current and Short-Term Workforce Trends within the Canadian Petroleum Industry for Q1-Q2 2012.
Growth in Alberta’s oilsands, shifts
to unconventional and liquids-rich
gas plays and proposed infrastructure
investments in pipelines and liquefi ed
natural gas (LNG) combined with an
aging workforce continue to fuel the
human capital needs of the petroleum
sector.
Additionally, competition for simi-
lar skill sets and jobs across sectors and
geographic regions places additional
strain on recruitment and continues
to feed an employee-driven labour
market.
“Despite global economic uncer-
tainty, a slow recovery in the U.S., and
low gas prices, 91 per cent of respon-
dents reported that they are currently
hiring,” said Cheryl Knight, executive
director and CEO of the council.
“Th is is a seven per cent increase
from Q3/Q4 2011 and refl ects in-
creased hiring activity in certain petro-
leum industry sectors, and the direct
impact of high turnover, retirements
and changing demographics across the
industry.
“Th e majority of respondents
indicated that attraction and retention
of workers in hard-to-recruit locations
is their top workforce challenge.
“Other challenges identifi ed in the
survey were labour and skill short-
ages, employee turnover and retention,
and the increasing level of turnover
amongst new hires,” Knight added.
Th ese workforce challenges
and trends have increased the need
for industry knowledge/experience,
specialized skills and general business
decision making.
Broader support roles such as
supply chain management, business
intelligence managers, procurement
professionals, fi nance professionals and
project managers are in demand.
How is the industry rising to these
workforce challenges? According to
the survey, respondents reported re-
cruitment and training as the two key
human resource strategies.
Th e report includes details on
recruitment and training practices,
emerging trends and innovative human
resource strategies.
One plan is to partner with com-
munity programs that target under-
represented groups in the petroleum
industry such as women, Aboriginals,
immigrants and youth.
Another strategy is to initiate
training programs that help employees
move into leadership roles, and re-
spond to industry growth, new tech-
nologies, and evolving environmental
and regulatory requirements.
C32 PIPELINE NEWS August 2012
Global Steel Ltd. is a private corporation founded in 1990. From modest beginnings Global Steel has grown to become one of North America’s most trusted distributors of premium Canadian Manufactured Oil Country Tubular Goods (OCTG). Today, this Calgary-based company enjoys an unmatched reputation for product quality, innovation and customer service.
Global Steel maintains key relationships with several major domestic steel mills. Strategic alliances with each mill guarantee reliable and secure access to a full range of high-quality ERW OCTG, Seamless OCTG and Line Pipe products. We are committed to providing oil and gas producers with exceptional service, high-quality oil eld tubular goods and personalized logistical support.
One call to Global Steel provides customers with competitively priced products and ef cient , safe dispatch to the job site. Global Steel currently maintains 18 inventory stock points strategically located across Canada. Each stock point is supported by veteran trucking companies specializing in oil eld transportation and providing 24 hours service.
An unwavering focus on operating and service excellence is what separates Global Steel from everyone else. It is a commitment that shows in our products and services. At Global Steel we are focused on your business.
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Cheryl Knight from the Petroleum HR Council released the latest quarterly workforce trends in the oil and gas in-dustry that notes the demand for skilled workers remains high despite low natural gas prices and global economic turmoil. File photo
Oil patch Jobzilla could wreak havoc
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Calgary – Southern Pacifi c Resources Corp. may have celebrated Canada
Day by throwing their hard hats into the air.
Th e July 1 holiday heralded the start of steam circulating through the steam
assisted gravity drainage or SAGD wellbores at the STP-McKay thermal proj-
ect in the Alberta oil sands.
Th e fi rst steam at STP-McKay is an historic event for Southern Pacifi c as
it represents the completion of the construction, commissioning and start-up of
the company’s fi rst major in-situ undertaking.
Steam will now be circulated through the SAGD wellbores for a period of
three to four months, after which bitumen production is scheduled to begin.
Southern Pacifi c is engaged in the exploration, development and produc-
tion of in-situ thermal heavy oil and bitumen production in the Athabasca
oilsands of Alberta and in Senlac, Saskatchewan east of Macklin.
Phase 1 of the STP-McKay project is now offi cially in the production
stage after 18 months of construction that began in December 2010.
Th e original application for a 12,000 barrel per day facility received regula-
tory approval from Alberta in October 2010.
Southern Pacifi c has subsequently fi led an application for expansions at
STP-McKay totalling an additional 24,000 bpd, split between an expansion in
Phase 1 and a new facility at Phase 2.
Th e application is well advanced and approval is expected in late 2013.
Southern Pacifi c projects the fi nal capital cost for Phase 1 to be $468 mil-
lion, four per cent over the original budget of $450 million.
Th e cost includes an additional $15 million of scope changes designed to
improve reliability and decrease operating costs.
Based on the incurred capital to the end of the fi rst calendar quarter of
2012, Southern Pacifi c expected to fi nish the project slightly under budget.
Th e Calgary-based company cited increased industry activity in the second
quarter for aff ecting the module fabrication costs and delivery schedules, which
resulted in increased construction costs in order to meet the project schedule.
Th e company reports that with steam start-up, clean-up of the site and
demobilization of crews and equipment will be occurring over the next several
weeks.
Th e construction site reported a safety record of only one minor lost-time
accident during the entire drilling and construction period, well below the
industry average.
Southern Paci c steams on Canada Day
Edmonton – Welcome to the
“U.S. of eh” in Northern Alberta
where Americans are being sought to
help fi ll a shortage of skilled workers
for oilfi eld and construction jobs.
Th e Edmonton Economic De-
velopment Corporation (EEDC) is
recruiting in Seattle for heavy-equip-
ment technicians, welders, steamfi t-
ters/pipefi tters, power engineers and
construction staff professionals.
“Our economy is expanding
and we need more workers,” said
Mike Wo, EEDC executive direc-
tor of economic development and
growth.
“We are looking for hard-work-
ing individuals who are considering
working in Alberta for a few years
while economic conditions rebound
in the U.S.”
Th e recruitment drive is running
in July through online, mobile and
radio advertisements, and a roving
community cruiser at local events
promoting a www.opportunityawaits.
com website.
Th e website allows individuals to
view position details, fi nd out more
about Alberta and submit applica-
tions.
Shortlisted candidates will be
invited to in-person interviews in
mid-August.
Th e campaign follows news that
U.S. fi rms created only 80,000 new
jobs in June, leaving the job rate
untouched at 8.2 per cent.
Canada added 7,300 jobs in June,
slightly better than modest expecta-
tions, with Alberta having the lowest
unemployment rate in the nation at
4.6 per cent.
To put Alberta’s economic
growth into context for Americans,
around $193 billion of major invest-
ments are underway or in the works,
equivalent to 211 CenturyLink
Fields or 175 Hoover Dams.
“For those in search of opportu-
nities, Alberta off ers some of North
America’s highest wages and stan-
dards of living,” said Wo.
“Newcomers can expect to be
welcomed with one of the English-
speaking world’s best education sys-
tems, leading-edge health care and a
quality of life coveted by many.”
Recruitment is one EEDC
initiative to develop the workforce.
Other eff orts underway include in-
creasing productivity and innovation,
and increasing investment in work-
place literacy.
AB jobs blitz targets Seattle
C34 PIPELINE NEWS August 2012
Canyon is the fastest growing fracturing company in North America. We deliver quality customized pressure pumping and service solutions to the oil and gas industry, improving our industry one job at a time. If you’re looking for a career with a leading organization that promotes Integrity, Relationships, Innovation and Success, then we’re looking for you.
Now hiring Canyon Champions for the following positions:
Operators: Fracturing, Nitrogen, Coil, Cement & Acid Class 1 or 3 Drivers
Supervisors: Fracturing, Nitrogen, Coil, Cement & Acid Applicant Requirements:
Self-motivated Willing to work flexible hours Safety-focused
Team oriented Oil & Gas related experience is preferred Clean drivers abstract
Why Canyon? Dynamic and rapidly growing company Premium compensation package New equipment 3 weeks vacation to start
Paid technical and leadership training Career advancement opportunities Paid flights for rotational program (22/13) Seasonal work programs available
We thank all applicants; however only those selected for an initial interview will be contacted.
How to apply: email: [email protected] fax: (306) 637-3379 website: www.canyontech.ca
CAREER Gu de
PIPELINE NEWS August 2012 C35
We’re currently looking for:
• Lease Construction Supervisor
• Dozer Operator
• Grader Operator
• 1A Operators (Bed & Winch Truck / Picker Truck)
• Crew Foreman (Facility / Pumpjack / Pipeline)
• Labourers
EMPLOYMENT OPPORTUNITYPERMANENT FULL-TIME
HYDROVAC OPERATORS
• Require class 3 or class 1 licence• Safety tickets
HYDROVAC SWAMPERS
• Require safety tickets
Offering competitive wages, benefits available after 3 months. Offering living accomodations.
Email resumes to:
or fax to:
306•483•2082
Oilfield Construction Limited
NOW
COME JOIN OUR TEAM! We’re hiring for various
projects throughout
Southern Saskatchewan
Over 50 years strong, Arnett & Burgess Oilfi eld Construction Limited safely
provides quality pipeline construction, facility installation, pipeline integrity, custom fabrication, maintenance and related construction services to the
energy industry.
Compensation:Competitive wages
Overtime Daily Subsistence /Living
allowance
Preferred Certifi cationsH2S Alive
Standard First Aid & CPR
Required Certifi cations Driver’s License
Ground Disturbance – (Heavy Equipment Operators only)
For more details and other career opportunities please visit:www.abpipeliners.com
For Inquiries please call: 780.384.4050
Please submit your resume to :email: [email protected] • Fax:403.265.0922
• CONSTRUCTION MANAGER- Candidates must have previous leadership/managerial experience within the Pipeline Construction industry (mainly underground lines max 16”).This position’s home base is in Regina.
• FIELD SAFETY ADVISOR- The ideal candidate will have a CSO designation. This position will oversee pipeline construction projects in southern sk with a home base in Regina
• PIPELINE CONSTRUCTION LABOURERS
• FOREMEN
• HEAVY EQUIPMENT OPERATORS-Employee & Owner Operators with Pipeline Construction Experience
All positions require previous experience in Pipeline Construction. Previous experience on Pipeline Integrity projects is an asset.
C36 PIPELINE NEWS August 2012
PIPELINE NEWS August 2012 C37
Glen Peterson Construction Ltd.314 - 6th Street, Estevan, SK S4A-2V7
Ph: 306•634•2741 Fax: 306•634•4643or E-mail [email protected]
CONSTRUCTION LTD.
SEWER & WATER INSTALLATIONS • CUSTOM CRUSHING & WASHING AVAILABLE
EXCAVATING, SAND AND GRAVEL • REDI-MIX CONCRETE
Journeymen Electricians
and ApprenticesPowerTech Industries Ltd. in Estevan is seeking
Journeymen Electricians and Apprentices for
work in the Estevan and Carnduff areas.
Experience: Safety Certifi cates are needed.
1st Aid/CPR, H2S. Applicants must have a valid
driver’s license. Full benefi ts packages and RSP
plan.
Duties: Day to day electrical construction and
maintenance in the oilfi eld.
Wage/Salary Info: Depending on experience &
qualifi cations.
To Apply: Fax: (306) 637-2181, e-mail
sschoff [email protected] or drop off resume to
62 Devonian Street, Estevan, SK.
We require the following:
Matrix Well Servicing
CAREER Gu de
C38 PIPELINE NEWS August 2012
RESOURCE Gu de
516 Nesbitt Drive, Estevan • 634-2631(Behind Power Dodge)
Canada's leading distributor of industrial, eet and safety products.
Proud to provide selection, quality and
excellence to our customers.
BIG D’S LEASE SERVICE
P.O. Box 544
Stoughton, Sask. S0G 4T0
(306) 457-7033(306) 457-7673
Backhoe
Mowing
Snow Removal
Towing
Fencing
Road Grader
Gravel Supplies & Hauling
Dwight G. Blomander, CFP, CLU, CH.F.C., CHS• Life Insurance• Disability Insurance• Critical Illness Insurance• Employee Bene t Plans
Tel: (306) 359-2015 • Fax: (306) 359-3034E-mail: [email protected]
Toll Free: 1-855-359-2015 • Cellular: (306) 421-1935Life Licence sponsored by The
Great-West LifeASSURANCE COMPANY
105, 335 Hoffer Drive, Regina, SK. S4N 6E2
TERRY DODDS(24 hrs.) (306) 634-7599
Cell. (306) 421-0316
“All Your Construction and Maintenance Needs”SPECIALIZING IN: ENGINES, PUMP UNITS, UNIT
INSPECTIONS, PIPE FITTING, TREATERS AND PRESSURE TICKET WELDING
Box 1605, Estevan, Sk. S4A 2L7Cell. (306) 421-3174, (306) 421-6410, (306) 421-2059
Fax: (306) 634-1273
M.E.T. OILFIELDCONST. LTD.
Cordell JanssenCordell JanssenDistrict ManagerDistrict Manager
DownholeDownhole
93 Panteluk Street, Kensington Avenue N93 Panteluk Street, Kensington Avenue NEstevan, SaskatchewanEstevan, Saskatchewan
PHONE:PHONE: 306-634-8828 • 306-634-8828 • FAX:FAX: 306-634-7747 [email protected] • www.nov.com
JUSTIN WAPPEL - Division Manager
401 Hwy. #4 S. Biggar, SaskatchewanPO Box 879 S0K 0M0Ph (306) 948-5262 Fax (306) 948-5263Cell (306) 441-4402 Toll Free 1-800-746-6646Email: [email protected]
a l t u s g e o m a t i c s . c o m
Specializing in well site and pipeline surveys
Yorkton
306.783.4100
Weyburn
306.842.6060
Regina
800.667.3546
Swift Current
306.773.7733
Lloydminster
780.875.6130
Medicine Hat
403.528.4215
Edmonton
800.465.6233
Calgary
866.234.7599
Grande Prairie
780.532.6793
Lloyd Lavigne • Kirk ClarksonOwners/Managers
6506 - 50th AvenueLloydminster, ABPhone: (780) 875-6880
5315 - 37th StreetProvost, AB T0B 3S0
Phone: (780) 753-6449Fax: (780) 875-7076
24 Hour ServiceSpecializing in Industrial & Oilfield Motors
SUNRISESUNRISEAviation Co. Inc.Aviation Co. Inc.
Carlyle, SKCarlyle, SK
John EricksonCell: (306) 575-7316
• Flight Training • Chartered Flights
• Hot Shot Service• Sightseeing Tours
RICK CORMIERManager
Box 609 Bus: (306) 634-8084Carlyle, SK Cell: (306) 577-8833S0C 0R0 Fax: (306) 453-6075www.truetorq.ca [email protected]
Your best choice for accommodations
in Carlyle, Sk.• Full kitchen and upscale extended stay
• Complimentary continental hot breakfast• Free high speed internet
• Meeting roomReservations: 306-453-2686
PIPELINE NEWS August 2012 C39
C40 PIPELINE NEWS August 2012