pipeline news - august 2012

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1 - on - 1 1 - on - 1 with Ed Dancsok with Ed Dancsok Page A4 Page A4 C&B OilÄeld C&B OilÄeld a family business a family business Page B1 Page B1 PIPELINE NEWS Saskatchewan’s Petroleum Monthly Saskatchewan’s Petroleum Monthly Canada Post Publication No. 40069240 August 2012 FREE Volume 5 Issue 3 Not in Short Supply Not in Short Supply Focusing on the oilfield supply shops erhard poggemiller erhard poggemiller the man in kerrobert the man in kerrobert Page C3 Page C3 The green Ɵnted man, Alex Tino, is applying a powder coaƟng to the inside of a tubular pipe at the internal coaƟng shop at Rev Energy Services in Kerrobert. Photo by Geoī Lee

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Pipeline News - August 2012

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Page 1: Pipeline News - August 2012

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

Page 2: Pipeline News - August 2012

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

[email protected]

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

Randi [email protected]

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)

Page 3: Pipeline News - August 2012

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

Page 4: Pipeline News - August 2012

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

Page 5: Pipeline News - August 2012

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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Page A4

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.

Page 6: Pipeline News - August 2012

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

[email protected]

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

To submit a stories or ideas:

Pipelines News is always looking for stories or ideas for

stories from our readers. To contribute please contact your

local contributing reporter.

Subscribing to Pipeline News:

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Pipeline News has a group of experienced staff work-

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please contact the sales representative for your area to as-

sist you with your advertising needs.

Special thanks to JuneWarren-Nickle’s Energy Group

for their contributions and assistance with Pipeline News.

Published monthly by the Prairie Newspaper Group, a divi-

sion of Glacier Ventures International Corporation, Central

Offi ce, Estevan, Saskatchewan.

Advertising rates are available upon request and are subject

to change without notice.

Conditions of editorial and advertising content: Pipeline

News attempts to be accurate, however, no guarantee is given

or implied. Pipeline News reserves the right to revise or reject

any or all editorial and advertising content as the newspapers’

principles see fi t. Pipeline News will not be responsible for

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is not responsible for errors in advertisements except for the

space occupied by such errors.

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mation from our customers in the normal course of business

transactions. We use that information to provide you with

our products and services you request. On occasion we may

contact you for purposes of research, surveys and other such

matters. To provide you with better service we may share

your information with our sister companies and also outside,

selected third parties who perform work for us as suppliers,

agents, service providers and information gatherers.

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.

Page 7: Pipeline News - August 2012

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

Page 8: Pipeline News - August 2012

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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Page 9: Pipeline News - August 2012

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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

Page 10: Pipeline News - August 2012

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

Page 11: Pipeline News - August 2012

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.”

Page 12: Pipeline News - August 2012

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

Page 13: Pipeline News - August 2012

PIPELINE NEWS August 2012 A13

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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

Page 14: Pipeline News - August 2012

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.

Solving problems with one phone call makes life easier

Page 15: Pipeline News - August 2012

PIPELINE NEWS August 2012 A15

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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

Page 16: Pipeline News - August 2012

A16 PIPELINE NEWS August 2012

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[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 17: Pipeline News - August 2012

PIPELINE NEWS August 2012 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.

Page 18: Pipeline News - August 2012

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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Page 19: Pipeline News - August 2012

PIPELINE NEWS August 2012 A19

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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

Page 20: Pipeline News - August 2012

A20 PIPELINE NEWS August 2012

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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

Page 21: Pipeline News - August 2012

PIPELINE NEWS August 2012 A21

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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

Page 22: Pipeline News - August 2012

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

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and wellbeing of our communities, now and into the future.

Enbridge delivers more than the energy you count on. We deliver

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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

Page 23: Pipeline News - August 2012

PIPELINE NEWS August 2012 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.

Page 24: Pipeline News - August 2012

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

Page 25: Pipeline News - August 2012

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

Page 26: Pipeline News - August 2012

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

Page 27: Pipeline News - August 2012

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

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"We Dispatch for the Oil Patch"

805 Government Road SWeyburn, SK

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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...

Page 28: Pipeline News - August 2012

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

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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

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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

Page 29: Pipeline News - August 2012

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.

Page 30: Pipeline News - August 2012

A30 PIPELINE NEWS August 2012

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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

Page 31: Pipeline News - August 2012

PIPELINE NEWS August 2012 A31

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Pat: 306-861-9986

Josh: 306-461-4323

Mike: 306-891-8852

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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

Page 32: Pipeline News - August 2012

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

Page 33: Pipeline News - August 2012

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

Page 34: Pipeline News - August 2012

A34 PIPELINE NEWS August 2012

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[email protected]

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

The 144-foot CO2 stripper housing for the carbon capture project at Boundary Dam Power Sta on is nearing comple on, with interior piping and electrical work s ll to be completed.

Winnona JohnerOwner/ Sales306.421.5725

[email protected]

Diane Jocelyn, CRESOwner/ Broker/ [email protected]

Offi ce 306.634.9898Fax 306.634.1253

1112 6th St,Estevan, SK

www.estevanrealestate.com

Page 35: Pipeline News - August 2012

PIPELINE NEWS August 2012 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.

Page 36: Pipeline News - August 2012

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.

Page 37: Pipeline News - August 2012

PIPELINE NEWS August 2012 A37

ELECTRICAL CONSTRUCTION, MAINTENANCE & SERVICE

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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

Page 38: Pipeline News - August 2012

A38 PIPELINE NEWS August 2012

301 Kensington Ave.Estevan, SK.

Phone: (306) 634-3616

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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?

Page 39: Pipeline News - August 2012

PIPELINE NEWS August 2012 A39

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Page 40: Pipeline News - August 2012

A40 PIPELINE NEWS August 2012

Page 41: Pipeline News - 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

Page 42: Pipeline News - August 2012

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.

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The Folkerts have been running their pumpjack maintenance business for more than 40 years. From le is Todd Folkerts, father Bernie and Aaron, the current owner of C&B Oil eld Services.

Page 43: Pipeline News - August 2012

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.

Page 44: Pipeline News - August 2012

B4 PIPELINE NEWS August 2012

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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

Page 45: Pipeline News - August 2012

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.”

Page 46: Pipeline News - August 2012

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

Page 47: Pipeline News - August 2012

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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Page 48: Pipeline News - August 2012

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.

Page 49: Pipeline News - August 2012

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.”

Page 50: Pipeline News - August 2012

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

Page 51: Pipeline News - August 2012

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

Page 52: Pipeline News - August 2012

B12 PIPELINE NEWS August 2012

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Page 53: Pipeline News - August 2012

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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Page 54: Pipeline News - August 2012

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

Page 55: Pipeline News - August 2012

PIPELINE NEWS August 2012 B15

ENGINEERED ENVIRONMENTAL SOLUTIONS

Serving the SoutheastSaskatchewan oilfi eld industry since 1994.Newalta has provided waste management services for the

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We’re proud of our strong local presence, our exemplary safety

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record of excellent service.

Contact:Halbrite Location at 306-458-2419Lease 16-29-06-12W2OrAlida Location at 306-443-2146Lease 16-13-05-33W1

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

Page 56: Pipeline News - August 2012

B16 PIPELINE NEWS August 2012

Leading The Wayg y

Setting new standards Setting new standards for performancefor performance

Fast Growing Fast Growing CompanyCompany

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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.

Page 57: Pipeline News - August 2012

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

Page 58: Pipeline News - August 2012

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

Page 59: Pipeline News - August 2012

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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Page 60: Pipeline News - August 2012

B20 PIPELINE NEWS August 2012

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Page 61: Pipeline News - August 2012

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

Page 62: Pipeline News - August 2012

C2 PIPELINE NEWS August 2012

G-Force Diesel!

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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

Page 63: Pipeline News - August 2012

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.

Page 64: Pipeline News - August 2012

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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Page 65: Pipeline News - August 2012

PIPELINE NEWS August 2012 C5

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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

Page 66: Pipeline News - August 2012

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.

Page 67: Pipeline News - August 2012

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.

Page 68: Pipeline News - August 2012

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

Page 69: Pipeline News - August 2012

PIPELINE NEWS August 2012 C9

Page 70: Pipeline News - August 2012

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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.

Page 71: Pipeline News - August 2012

PIPELINE NEWS August 2012 C11

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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.

Page 72: Pipeline News - August 2012

C12 PIPELINE NEWS August 2012

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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.

Page 73: Pipeline News - August 2012

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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Page 74: Pipeline News - August 2012

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Page 75: Pipeline News - August 2012

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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.

Page 76: Pipeline News - August 2012

C16 PIPELINE NEWS August 2012

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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

Health Careimportant

Page 77: Pipeline News - August 2012

PIPELINE NEWS August 2012 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.

Page 78: Pipeline News - August 2012

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.

Page 79: Pipeline News - August 2012

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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Page 80: Pipeline News - August 2012

PIPELINE NEWS August 2012 C21C20 PIPELINE NEWS August 2012

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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.

15 Foot Midland SK1000 Gravel box with pintle plate and electric tarp - Full Truck kit for pup trailer, Paccar PX 8 350 HP Engine, Allison 3000 Rugged Duty Series 6 speed automatic transmission, Dana Spicer 14.6K Front axle with taperleaf spring suspension, Dana Spicer 40K Rear axles with HAS402 air suspension, forward and rear axle lock-up differential, Air brakes with ABS, 10 5/8” x 5/16” Frame rail, 100 gallon fuel tank, Accuride painted white rims with Bridgestone steer tires and Goodyear drive tires, Aerodynamic sloped front hood, Pinnacle Cab Interior equipped with Kenworth Driver Information Center, A/C, Cruise, Tilt and Telescopic steering wheel, power windows and door locks, am/fm Radio, daylite cab design doors with peeper window, glove box, air suspension and air application gauges, High back vinyl air cushion drivers seat and high back vinyl toolbox passenger seat, Polished stainless steel heated mirrors with convex mirrors, curved glass windshield with stainless steel exterior sun visor, Dual halogen head lamps, dual amber strobe lights centered over doors, circuit breakers style electrical system

Come see us

at LHOS Booth

353 and 354

Page 81: Pipeline News - August 2012

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.

Page 82: Pipeline News - August 2012

PIPELINE NEWS August 2012 C23

Well Service A division of

Classic Oil eld Service Ltd.(780) 874-1044

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.

Page 83: Pipeline News - August 2012

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

Page 84: Pipeline News - August 2012

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

Page 85: Pipeline News - August 2012

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.

Page 86: Pipeline News - August 2012

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.”

Page 87: Pipeline News - August 2012

C28 PIPELINE NEWS August 2012

Page 88: Pipeline News - August 2012

PIPELINE NEWS August 2012 C29

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www.targetsafety.ca

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

Page 89: Pipeline News - August 2012

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

Stk # 980062 c/w new non grease fifth wheel, dual ex-haust, dual s.s. breathers, wet kit, webasto heater, beacon lights, alum roo bumper, 17,153 hours.

2008 GRAVHAUL DUMP

GRAVEL Stk #: 174161; new hydraulic cylinder, new shocks, 2 new air bags, saftey good until Dec. 2012.,roll tarp.

2004 PETERBILT 330 Stk# 812784 Standard Cab; 3126 Caterpillar Engine; Diesel Fuel Type; 469,148 km; 8LL; Engine Brake; 4 Spring Sus-pension; 3:70 Ratio; Tandem

Axle.

2006 FREIGHTLINER BUSI-NESS CLASS M2 106 stk# HW57120 c/w 12 ft. c/w 12 ft. deck, tool boxes, crew cab , 4 door, 2 wheel drive; Gross Vehicle Weight (lbs): 33000

Phone: (780) 875-0032Fax: (780) 808-2273Cam’s Cell: (780)205-8316Greg’s Cell: (780) 214-7808

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

Page 90: Pipeline News - August 2012

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]

Page 91: Pipeline News - August 2012

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.

A proud stocking distributor of CanadianManufactured Oil Country Tubular Goods (OCTG)

1600 Sunlife Plaza (West Tower), 144 - 4 Avenue SW

Calgary, Alberta T2P 3N4

P: 403.237.8108 • F: 403.237.8392E: [email protected]

Lloydminster Paint& Supplies Ltd.

Daryl (780) 875-4454 or(780) 871-41095628 - 44 Street, Lloydminster, AB

ATV / SLED DECKS

Adjustable width decks also available

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• Our customers testify that we

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• Easy to load & unload

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snowmobile & quad

• High quality brushed aluminum

requires no maintenance

• Rounded headache rack

• 4 side LED lamps

• Super Clamps Included

• Strongest (and longest) ramp

system on the market

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

We Lift And Haul:• Pipe

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2- 30 ton pickers with 69’ of reach, hi-way tractor, spreader bars, man basket, hi-boy and low-boy trailers

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780.872.3618

ISN and Complyworks member & valid SECOR

Page 92: Pipeline News - August 2012

PIPELINE NEWS August 2012 C33

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

Page 93: Pipeline News - August 2012

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

Page 94: Pipeline News - August 2012

PIPELINE NEWS August 2012 C35

We’re currently looking for:

[email protected]

• 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:

[email protected]

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.

Page 95: Pipeline News - August 2012

C36 PIPELINE NEWS August 2012

Page 96: 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

Page 97: Pipeline News - August 2012

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

[email protected]

• 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

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PIPELINE NEWS August 2012 C39

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C40 PIPELINE NEWS August 2012