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By Brian ZinchukPipeline News

Estevan – The $1.24 billion Boundary Dam Carbon Capture Project is in the home stretch, with both the power island and carbon cap-ture island now in the commissioning process. With the final pieces coming into place, it’s a good time to start showing it off.

Premier Brad Wall commented on the proj-ect’s progress on Aug. 29 when he escorted North Dakota Senator Heidi Heitkamp, as well as Basin Electric Power Co-operative CEO Andrew Serri on a tour of the facility.

According to the Basin Electric website, their core business is generating and trans-mitting wholesale bulk electric power to cus-tomers. Those customers are primarily to its 137 member rural electric systems, located in nine states: Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota, and Wyoming. The company’s largest subsidiary, the for-profit Dakota Gasification Company, owns and op-erates the Great Plains Synfuels Plant near Beulah, N.D., which gasifies lignite coal and captures some of the carbon dioxide emis-sions (CO2) and sends them to the Cenovus Weyburn Unit for use in enhanced oil recovery and geologic storage.

Senator Heitkamp was a former director

of Dakota Gasification. A Democrat, she took her place in the Senate last January after being elected in November 2012.

“I think there’s an understanding we share of making energy production more sus-tainable,” Wall said in reference to Heitkamp. “We have to deal with CO2 issues, we have to deal with other environ-mental issues relating to energy. We need to do it in a way where we can still contemplate the use of coal, frankly, because it’s not going away. We can still see hydrocar-bons playing a big part in energy production. Until one day where we get to that transition fuel where CO2 won’t be a problem, we need to make energy in a clean way for our respective economies.

“You know, hav-ing the senator here is

important for another reason. One of the most dynamic portrayals of what you can do when United States and Canada co-operated on this very issue is repre-sented in North Dakota, an organization she has been a part of, we have Basin Electric here. We are today storing CO2 in the Weyburn area, storing it efficaciously by the way, according to the International Energy Agency, (in) the world’s largest storage of CO2. We’re doing it because of a pipeline from North Dakota. From Beulah, North Dakota, that CO2 comes, it’s used for en-hanced oil recovery, we store it, and it works.

“For those who wonder, is CCS (carbon capture and storage) part of the CO2 mitiga-tion plans for the world, is it technology that will work? The answer is yes.

We can say that with confidence, because of this project, because of the co-operation that we have.

“For those who say, ‘Is there such a thing as clean coal?’ we’re going to answer that question right here at Boundary Dam. I think we can also give them some encouragement when we consider our history together. We’ve broken ground before, we’ve pioneered technology. I want to thank the sena-tor for being here.”

He noted Heit-kamp’s recent visit to the Alberta oilsands, and added it is impor-tant to look at such things first hand.

“We’re going to be testing this facility in the fall. I’m looking at all the SaskPower people and thanking them, again that this project is on time and on budget, and it’s

going to work. We’re going to go through the testing soon, and in the new year it’s going to go live,” Wall said.

“What a credit to the men and women of SaskPower who have had the vision and the ability to pull this off, as well as the engineering firms.”

Heitkamp noted, “I’ve heard that it’s on time and on budget. Did everyone hear that?

“Like I tell the people in Washington, D.C., we don’t really see a border in North Dakota. We think of Saskatchewan and Manitoba the same as Minnesota and Mon-tana and South Dakota. You’re our neighbours. What is so amazing is we believe we’ve led the world in innovation in the oilfield, when you look at hydraulic frac-turing in oil shale. We are already the second

largest producer of oil in the United States, and we’re headed to-wards a million barrels a day.

“Basin Electric led the way with carbon capture behind the Da-kota Gas Plant, sending it up here for injection into the Weyburn field. This is world-renowned technology that we are doing in our region of the world. Now right here is SaskPower, leading the way. These men and women who have worked so hard on the project are going to demonstrate to the rest of world we can continue to use coal in a responsible, sustainable way,” Heitkamp said.

In coming up to take a look, she said, “When I talk about clean coal, and when I talk about carbon capture on the floor of the United States Sen-ate, I want to say, ‘I’ve been there. It works, it’s going to work, we’re leading the way in mak-ing the investments to continue to use coal in our energy mix.’

“This story needs to get told, nationwide in our country, but also worldwide.”

With North Dakota now producing 820,000 barrels of oil per day via primary production, and a with large num-ber of coal-fired power plants, are the state and Basin Electric looking at carbon capture for enhanced oil recovery in the future and to extend the life of the Bakken field?

Page A8

Briefs courtesy Nickle’s Daily Oil Bulletin

In Saskatchewan, Paint-ed Pony Petroleum Ltd. has participated in the drilling of three (1.4 net) wells to date this year, of which one (0.3 net) Bakken well was drilled at Flat Lake during the second quarter of 2013. This well has been complet-ed and is expected be placed onto production immedi-ately.

At Midale, Sask., the company has received all necessary approvals to implement a pilot pres-sure maintenance program on its Bakken project. This water injection scheme is expected to improve overall oil recovery by up to 50 per cent from current levels. In-jection is expected to begin during the third quarter.

Painted Pony continues to maintain an inventory of light oil opportunities, focusing on the continuing development of lower-risk projects in southeastern Saskatchewan. A further five (3.1 net) wells targeting light oil are expected to be drilled during the balance of this year.

By Brian ZinchukEstevan – Premier Brad Wall is starting to express doubt

about the prospects of TransCanada’s Keystone XL pipeline. Speaking to reporters on Aug. 29 following a tour of SaskPow-er’s Boundary Dam Carbon Capture Project with North Dako-ta Senator Heidi Heitkamp (D), he noted TransCanada’s newly proposed Energy East pipeline may very well become “Plan A.”

Asked if he had any concerns that Keystone would be fur-ther delayed, Wall said, “Sure we have concerns. We’re on record as strong supporters of the pipeline. We were in Washington. We met with Democrats and Republicans, senior decision mak-ers. We were actually talking about this project, Boundary Dam, and what we’re doing in terms of carbon capture in Saskatch-ewan. We were also there to promote Keystone. We won’t have any oil in the pipeline necessarily when it’s built, if it’s built. But it’s important, because even though the gap between Brent and West Texas has shrunk, it’s still there, and the gap could cost us up to $300 million a year.

“We just got to get more Canadian oil to tidewater. “For all the reasons we’ve said – it makes sense for North

America from an energy security standpoint, from an economic standpoint, from an environmental standpoint, when you con-sider the environmental record of Canada versus other countries the U.S. would import oil from, on CO2.

“So it is a bit of a concern. It remains to be seen. If it’s next year, we hope the decision is positive.”

As for American opposition, he said, “That’s part of the con-cern, sure. I’ve seen some of the ads. They’re just silly. They really are, and they’re not based on fact. I guess that’s what counts for advocacy these days perhaps with some of groups that have the money to by the things. Again, they’re not factual, and I hope

they don’t unduly influence people who then influence the deci-sion makers to work against Keystone.

“In Canada, we have to start acting like an energy power. We are one. And that means we have to move energy across the county. The answer for anybody in any part of the country to ‘does this benefit us?’ ‘Is it makes Canada stronger.’

“What’s good for the Western Canadian economy is good for the Canadian economy and therefore good for the economy in other regions. It is by definition, a country that depends on transfers from the federal government to transfers to the re-gions. In that kind of a country, what strengthens one region is helpful.

“I hope the rest of Canada is as proud as we are. We are an energy power in the world, not just one that has oil for sale but one that is spending a lot of public dollars to reduce CO2, to deal with the environmental impact of energy extraction, mo-reso on a per capita basis, than any other country that’s an en-ergy power. That’s something we should be proud of. We should be motivated to do better, and we will be. That’s the case in Ontario and the rest of Canada.

Asked if Energy East is Plan B, Wall responded, “I think it’s increasingly Plan A, only because we see some of the comments from the president in the New York Times disputing what we think are some pretty factual impact numbers for Keystone. We see word of a new delay on approval. The optimism barometer is on an ebb right now in terms of Keystone approval in terms of Keystone approval, for our administration, for us. And (North-ern) Gateway, I don’t see a way to seeing that approved. Energy East, I think, is Plan A, especially for the province, because that pipeline will have Bakken oil, will have Saskatchewan oil, in it.

Page A9

Briefs courtesy Nickle’s Daily Oil Bulletin

Marquee Energy Ltd. turned a loss to a profit and doubled its cash flow in the second quarter, but re-ported lower production as it didn’t drill any wells dur-ing the period.

During the quarter the company increased its field operating netbacks to $33.49 per boe from $24.47 in the first quarter of 2013 and $19.34 in the second quarter of 2012. This was a direct result of the compa-ny’s growth in oil and liquids weighting.

The company spud the first well of a planned six-well drilling program at Michichi on July 4, and ex-pects to drill three wells at Lloydminster in the second half of 2013.

At Michichi in the sec-ond quarter, the last of the horizontal wells drilled in the first quarter was put on production in April subject to production optimization. Michichi production aver-aged 1,026 boepd in the second quarter, a nine per cent increase over the first quarter of 2013, and a 78 per cent increase over the same period in 2012.

At Lloydminster, pro-duction averaged 534 bpd in the second quarter, flat compared to 533 bpd in the first quarter of 2013. Based on field estimates, current production from the area continues to exceed 500 bpd, highlighting the property’s low decline. The last new well was brought on produc-tion in December 2012.

By Brian ZinchukIt hasn’t received a lot of fanfare, but TransCanada is plan-

ning an oil terminal near Moosomin as part of its $12 billion Energy East proposal. You might notice is as the unlabelled terminal on the map TransCanada has put out for public con-sumption. It is the most significant portion of this pipeline proj-ect in Saskatchewan.

Energy East is similar in concept to the original Keystone pipeline. The company intended on taking an existing under-used natural gas pipeline to oil service. The original Keystone pipe took a 20-inch pipeline, actually TransCanada’s original pipeline built in the 1950s. The Energy East pipeline is a 42-inch line, built in the late 1990s. It is larger than the 36-inch pipe planed for Keystone XL project.

Pipeline News asked TransCanada for specifics regarding this blip on the map. Grady Semmens, senior communications specialist for TransCanada, responded via e-mail on Aug. 21.

Pipeline News: Where will the Saskatchewan terminal be built (i.e. near Moosomin)?

TransCanada: The terminal will be built approximately 10 kilometres northeast of Moosomin.

P.N.: How will local oil from southeast Saskatchewan and southwest Manitoba get into the Moosomin terminal to join Energy East? Will it be by pipe, rail and/or truck?

TransCanada: It will arrive at the terminal by pipeline.P.N.: Enbridge has 357 kilometres of trunk line in its

Westspur system, plus hundreds of kilometres of gathering line connected via several smaller terminals to its Cromer, Manitoba terminal. Will TransCanada be building a similar network of gathering lines, terminals and a trunk line con-necting to the Moosomin terminal? Or will all of your gath-ering system in the region be done via the Enbridge system?

TransCanada: TransCanada plans to build approximately 60 kilometres of pipeline from Cromer, Manitoba to the tank terminal near Moosomin. Additional facilities may be built to meet future market needs.

Page A10

Publisher: Brant Kersey - EstevanPh: 1.306.634.2654

Editorial Contributions: SOUTHEASTBrian Zinchuk - Estevan 1.306.461.5599

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NORTHWESTGeoff Lee - Lloydminster 1.780.875.5865

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SOUTHEAST & NORTHWEST• Estevan 1.306.634.2654 Cindy Beaulieu Candace Wheeler Kristen O’Handley Deanna Tarnes Teresa Hrywkiw

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CONTRIBUTORS• Estevan - Nadine Elson• Saskatoon - Josh Schaefer• Virden - Harley McCormickTo submit a stories or ideas:Pipelines News is always looking for stories or ideas from our readers. To contribute please contact your local con-tributing reporter.

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It wasn’t that long ago that a farmer might tell his son this before sending him out on the Versatile four wheel drive tractor:

“Son, overlap that 40 foot cultivator by five feet. It’s better to overlap than miss. Whatever you do, don’t miss, because I don’t want long strips of weeds in my field.”

This was back in the day when the driver actually had to drive the tractor, not just turn it around at the end of the field and read his iPad in the meantime as the tractor’s GPS guidance autosteers it. Today, you might be pulling a 90-foot airseeder with accuracy measured in just a few inches of overlap. While the tractor’s guidance system is using the same technol-ogy as smart bombs, the equipment behind you is varying its rate of application of fertilizer according to unmanned aerial vehicle imagery and yield reports taken by the combine last fall.

Overlapping one-eighth of the implement (and losing 12.5 per cent efficiency as a result) and apply-ing product at the same constant rate seems so 1980s.

Yet that’s what we found in our investigation of oilfield instrumentation and automation this month. One automation provider told us that about 10 per cent of southeast Saskatchewan wells have automa-tion installed, yet 75 per cent could benefit from it.

Such a low penetration of technology on the production side seems odd in an industry that will spends millions on drilling horizontal wells into zones just a metre or two thick, then filling them with expensive string-of-jewels completion hardware.

Let’s look at smartphones, shall we? Ten years ago, only a few people had smartphones, maybe 10 per cent (sound familiar?). They were the cutting edge, but really did you need a Blackberry or Palm Treo? Besides, your most recent Motorola came with

a 0.3 megapixel camera in it! What more do you need?Now look around in public and count how many

phones you see that are not smartphones. One? Two? All those smartphones still do the same basic job

as dumb phones – make phone calls, but they can do so much more.

You probably didn’t know you needed a smartphone until you held one in your hand.

So too, it is with well and battery automation. The lowest levels of automation are like those feature phones with a camera. They might send out a simple signal that says the tank is full, but that’s it. More advanced technology, like our smartphone, lets you do something about it. It may show various tank levels, and provide the opportunity to start and stop the pumpjack. It might have an automated vapour recovery unit that engages as needed, sending H2S to the flare stack. Online pump cards may indicate all sorts of is-sues in well optimization, and adjustments can be made from a laptop.

Instead, the vast majority of wells aren’t the smart-phone, or even the camera phone. They’re not even wired land lines. The reality is these wells are closer to smoke signals, figuratively and literally. If you want to know what’s going on with them, you have to drive up and take a look. Hopefully it’s not overflowing the tank or smoking from a slipping belt.

In farming, you still cover the same field, whether you use precision farming techniques that use GPS tracking for combines, sprayers and tractors, or sim-ply drive back and forth with an old fashioned tractor. Either way, the job gets done. But the new techniques allow the farmer to squeeze a few percentage points of efficiency out of multi-million dollar operations.

Eventually the oilfield will catch up in terms of automation of production. The question is when?

I was pretty excited to hear about TransCanada’s Energy East Pipeline announced this summer. It turns out I actually worked on that pipeline around 1996 or so when it was originally installed as a natural gas line, part of the TransCanada mainline.

Once you’ve worked with 42-inch pipe like that, everything else seems rather small. I personally spent a bit of time as an oiler on an excavator on that project, then as a farm tractor operator on the cleanup crew. I think I only broke my rock rake once.

The work, as it turns out, was in the Moosomin area, right up to the Moosomin compressor station northeast of town, precisely where a little blip on a map is expected to materialize.

That blip didn’t even get a label on the map TransCanada put out for publication regarding the project. But I sure noticed it, and its position on the mainline just west of the Saskatchewan/Manitoba border. There’s only one place that could be – Mooso-min.

I sent a pile of questions to TransCanada, the type of questions most reporters would never consider. To my surprise, TransCanada was quite forthright and prompt in their response. But the answers have left a lot more questions in my mind.

Premier Brad Wall noted that there’s little chance Saskatchewan oil will find its way into the proposed Keytone XL or Northern Gateway pipelines. But it IS expected that Energy East will take Saskatchewan oil, picking it up at the Moosomin terminal. The big question is how are they going to get oil into this

terminal?I asked this of TransCanada – would they build

a crude-by-rail terminal, since Moosomin is on the Canadian Pacific mainline? Would they have a truck terminal? Will they build a gathering system similar to Enbridge’s very extensive one throughout southern Saskatchewan? No, no and no.

TransCanada’s Moosomin terminal is expected to be fed oil via pipeline – a 16-inch pipeline, 60 kilome-tre long line, from Cromer, Manitoba. That’s the loca-tion of Enbridge’s mainline terminal, within spitting distance of the Saskatchewan border. It has a collec-tion of very large tanks and manifolds. That’s where the Westspur pipeline terminates – the line that up until the recent advent of crude-by-rail, was essen-tially the only outlet for southeast Saskatchewan-pro-duced oil. It’s also the end of the line for the pipeline built recently from Waskada, Manitoba. The Enbridge Bakken Expansion pipeline, which went into service in early 2013, brings North Dakota oil into Cromer, where it joins the Enbridge’s mainline, only to be shipped south across the border again (which, believe it or not, does make sense).

Tundra Oil and Gas, Manitoba’s largest producer, has a connected terminal just across the highway from the Enbridge site that has seen a massive expansion of late. There are also plans for construction of a Tundra crude-by-rail facility at Cromer.

This is where it gets interesting. The Westspur line is 16 inches. The planned line from Cromer to Moosomin is 16 inches. How much you can put

through either line is a function of what is flowing through it and how big your pumping capacity is. Presumably, both 16-inch lines can handle the same amount of oil.

That means TransCanada is angling to have the capacity to ship pretty much all the oil produced out of southeast Saskatchewan that is currently gath-ered by the Enbridge Westspur system. And that is damned odd.

That’s like Canadian National gathering all the grain on the Prairies, taking it to Calgary, only to have Canadian Pacific say, “Whoa, there boy! We’ll take it from here down to Vancouver. But thanks for doing the dirty work, eh? We know you intended on shipping it on your own mainline, but hey, dem’s da breaks.”

As indicated by the recently announced, and then dropped, $4.6 billion lawsuit in Ontario between Enbridge and TransCanada, I am guessing there’s not a lot of love lost between the two companies.

Presumably it is the oil companies’ oil, and they can choose whichever method they want to ship it. But I can’t fathom Enbridge doing all the gathering of oil, only to hand it over to their most significant competitor. Maybe this makes sense somewhere, but where that is, I don’t know.

Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net.

If you wait long enough something good or something big

might happen to transform your small hometown in Saskatchewan.

The town of Kerrobert, the village of Jansen and the town of Moosomin are some of the lat-est small communities to hit the economic jackpot with major investment news.

BHP Billiton is investing $2.6 billion to com-plete preparations for the Jansen potash mine that could produce 10 million tonnes of potash a year for more than 50 years.

Potash Corp., which Australian owned BHP Billiton wanted to buy in 2010, operates the Lani-gan mine 36 kilometres west of Jansen and employs nearly 600 workers from the surrounding area.

The added investment by BHP Billiton will help young people stay in Jansen and attract new investments and residents to seek their fortunes.

Jansen’s to do list will likely include developing its infrastructure and providing a variety of housing, commercial and retail subdivisions and services that people expect.

Kerrobert’s windfall came with the announce-ment that TORQ Transloading Inc. will spend $100 million to build one of the largest crude-by-rail transloading facilities in Western Canada.

TORQ’s arrival follows the set-up of a smaller transloading facility near the downtown by Arrow

Reload Systems earlier this year and puts Kerrobert squarely on the oil and gas transportation map.

Opportunity for investors knocks in Kerrobert, a town that is sorely lacking in rental housing and available hotel and motel space as well as major retailers.

Kerrobert has positioned itself as a good place to live and work with the ongoing construction of a $23 million hospital.

The small town of Moosomin is also poised to benefit from TransCanada Corporation’s proposed Energy East pipeline and plans for a new oil termi-nal in the Moosomin area.

TransCanada plans on adding a pumping sta-tion to its existing Moosomin compressor station. It would help feed oil produced from the Bakken play to the TransCanada system.

Getting Bakken oil to Energy East would in-volve building a new pipeline from Cromer Mani-toba to the Moosomin terminal, and a tank farm to store oil. 

The Town of Moosomin recently sold 10 of its 80 by 100-foot lots by auction for prices raning from $40,000 to $44,000 – bargain prices not likely to be repeated again given what’s coming their way.

Moosomin in also located on the main Cana-dian Pacific Railway line should anyone decide to build a transloading facility there.

TORQ, Altex Energy and Savage have set up crude oil transloading facilities in the small town

of Unity, generating lots of high paying jobs and a broader tax base.

TORQ, in fact, just announced an expansion of their Unity facility to handle 120-car unit trains on CP and CN lines as well as to provide oil storage.

The oil and gas industry and potash mining, are helping make many small town dreams a reality in Saskatchewan along with other unexpected sources of investment in renewal energy.

It wasn’t too many years ago when wind was just considered a nuisance at best, but now it is a sought after resource for wind farms popping throughout rural Saskatchewan and diversifying the economy.

The winds of economic change could also bring anything, ranging from new oil and gas explora-tion and production and service companies to small towns which will help connect families to their rural roots.

Moving to the big city for a job will no longer be the only option for young people who grow up in small towns, or for those who left and want to come home.

Small town Saskatchewan is definitely being re-energized by the energy and mining sectors, with new large scale investment news being the norm rather than the exception.

If only someone could find an economic use for snow, then living anywhere in Saskatchewan would be a dream come true and front page news.

Page A3Heitkamp replied, “Today the EERC (Energy

and Environment Research Centre) facility at UND (University of North Dakota) is studying the technology regarding enhanced oil recovery in oil shale plays. We know that it works in traditional drilling, and that’s what we’ve been doing in the Weyburn field.

“We think eventually the next step in enhanced oil recovery in oil shale plays is going to be CO2 injection, but that’s not something that’s talked about right now, because we’re in a production phase of developing those resources. Once we start seeing the decline curves on wells recently drilled, I think we’re going to start seeing people looking for enhanced oil recovery. Andy’s talking to them every day and every week about what we might be able to supply out of Basin Electric.”

While wind power has often been suggested as the energy of the future, Heitkamp noted, “We export about 70 per cent of what we generate, a lot into Minnesota. But North Dakota, South Dakota and Minnesota, interesting little fact, have these highest percentage in their mix of wind. You wouldn’t think that, would you? Basin Electric is again leading the way in wind generation in our mix, but we know, because we’ve done wind for a lot of years, is that is not the way to build baseload power. It’s too intermittent.

“We’ve got to look at a reliable fuel source. Right now, the most reliable, predictable fuel source is coal.”

While Basin Electric has long been capturing carbon dioxide with its Dakota Gasification Great Plains Synfuels Plant at Beulah, North Dakota, it is a different process that what SaskPower is using. Specifically, it is not post-combustion.

Asked if Basin Electric is looking to partner with SaskPower in regards to using the post-com-bustion technology and application at Boundary Dam, Serri said, “We’re excited. In fact, I extended an invitation to the SaskPower folks to come down to the Beulah facility. I tell you, pulling up to this facility was like coming home. We saw the drag-

lines, we saw the haul trucks, we saw the stacks. We are excited to see what the SaskPower folks are doing.

“You know, we’re so blessed with the amounts of energy and different types of energy that we have. Not just the oil – everyone’s talking about the oil. Just as the senator said, 60 per cent of Basin’s power comes from baseload coal. It is the back-bone of our fleet, and I’m sure it is for the Sask-Power folks as well. We have over 700 megawatts of installed wind capacity on our system. We have natural gas units as well. We’re always willing to work with our neighbours to the north, because it truly is like coming home when you see those large booms of the draglines and the haul trucks.

“You cannot throw one energy source under the bus. We need them all. I’ve heard the senator say we need a comprehensive energy policy. I think it’s what, three, four, maybe five per cent of the oil per cent of the oil that they’re pulling up with the technology right now. By using enhanced oil

recovery techniques, you can raise those volumes up considerably.

“We’re excited. We want to see this rascal run.“Right now we’re just sharing ideas, visiting,

talking, looking.”Wall picked up on that, saying, “This rascal has

required a bit of investment. SaskPower is doing a great job of trying to explore what commercializa-tion opportunities are available. We think there are some, and I don’t want to be mysterious, but I think you’re going to hear some pretty interesting announcements in the near future about others that are really interested in being a meaningful partner in the new technology that’s here.”

Heitkamp added, “I think we need to think about this whole issue globally. North America hasn’t been the largest contributor to the big in-creases in carbon. It’s been Asia. The more we can develop the technologies here, the more we can prove these technologies here, the better it’s going to be for the overall global concerns about carbon.”

Serri noted Basin Electric has been capturing carbon since October 2000, and just hit a milestone of its 25-millionth ton through the pipeline to Weyburn. He said, “When you think of the expan-sion of the oilfields, you tell me how big the oil-fields will be, and I’ll tell you how much carbon we can use. Right now, there’s no cap on those fields, not only here in Canada, but the U.S. as well.”

When asked if Basin’s primary consideration is to address environmental regulations or to supply carbon dioxide for enhanced oil recovery, Serri said, “It’s both. You can’t have one without the other. Our primary goal at Basin is to serve our member owners. Our member owners had the foresight to invest to develop the gasification facility. Right next to the gasification facility, just like you have here, is a large baseload power station, the Antelope Valley Station. They work in tandem. They really benefit. There’s synergies from those stations, just as you’ll realize here at Boundary Dam. Our primary con-cern is not only being a good steward to the land, the air and the water, but also to our members as well.”

My son and I sat and listened to the instructions. We were in the pre-op appointment for my son’s ma-jor maxillofacial surgery (jaw surgery) to be performed in six days. It was the last stretch of the orthodontic journey we had started three years earlier.

Afterwards, the dental nurse handed us a three page handout. She again emphasized the importance of fluids in recovery. “It is very important to drink lots of water in the days after surgery,” she told us, “to avoid dehydration and help the body heal.”

As if to underscore the importance of her words, I turned to Page 2 of the handout where in block letters were the instructions: DO DRINK LOTS OF FLUIDS. The handout recommended drinking 2-3 liters of fluids per day but absolutely no pop or ice tea as the sugar content impeded healing. Water is the key ingredient in managing post-operative care I learned.

She was preaching to the choir. I had known the importance of adequate fluid intake for a long while. Our bodies are composed of about 60 per cent water, and water is necessary for most of the body’s business.

I knew that substituting water for high-calorie sugary drinks aids in weight loss, and helps achieve overall better nutrition and health in a number of ways including better regulation of blood sugar and quicker elimination through the gastrointestinal tract. Water is easier on teeth as well, for those concerned about the effects of acid wear on tooth enamel, as I am.

I knew all this and more, including the fact that if we wait to feel thirst before we drink, we are already dehydrated. Dehydration is a headache trigger, up to 85 per cent of the time, and can contribute to “brain fog.” On Dr. Oz’s instructions 18 months earlier, I had started the new habit of waking up in the morning and drinking 16 ounces of water in the first fifteen minutes of wakefulness, even before my dearly beloved mug of coffee! And my water bottle went everywhere with me.

However, getting the water and other fluids into my son was simply easier said than done in the days immediately following the surgery. He was restricted to using an oversized syringe and flexible tube system to squeeze through the wired down jaw. The consider-able swelling of his face and mouth further impeded the syringe.

On our post op trip to Regina to visit the surgeon six days after the surgery, we were delayed several times in traffic. We followed closely behind an oilfield water truck for a number of kilometers. It seemed appropriate after the six days of my monitoring the water intake of my son. “What do drilling rigs need water for?” my son mumbled, staring at the back of the water truck. I told him to Google it on his smart phone.

“An oil well cannot be drilled without it,” he

mumbled as he read. “It’s Step 5 on WikiHow’s 19-Step ‘How to Drill an Oil Well’ site. If there is no natural source of water, a well must be dug.”

Despite the traffic, we made good time. We sat down to wait in the surgeon’s office and I opened the magazine. I smiled when the magazine fell open to “Water Use and Availability”. It was an article form the Canadian Association of Petroleum Producers informing the reader that 75 per cent of Alberta’s oil production is water assisted. The article discussed responsible water use and improvements in water management for the oil industry. Water is the key ingredient in drilling operations, I learned.

So with all my preoccupation with water, I shouldn’t have been terribly surprised when I returned home to Estevan to turn on the television and see the massive flooding in Colorado. I learned that an entire year’s moisture fell in a few days, resulting in widespread flooding. Officials are now concerned with the fact that a thousand gas wells were flooded in the northeastern corner of the state and the resulting contamination of groundwater. I felt compassion for those affected. I know the devastation first-hand from flooding in my own community.

Water. It’s the key ingredient to drilling opera-tions and to human life. And it can destroy both in mere minutes. It’s something to consider, when taking your next drink of clean water.

Nadine lives in Estevan with her husband and fam-ily, and shifted gears a few years ago, becoming a hot shot driver for the oil patch. Her people skills are put to good use in the patch as she delivers the goods quickly and ef-ficiently. Contact her at shifting.gears.hotshot@gmail.com with comments or questions.

Page A4

“It’s a very important point. In all these other pipelines, we’ve been supportive of them, even though there’s not Saskatchewan oil in the pipeline. Again, we need to get Canadian oil to tidewater, to reduce the discount that occurs between Brent and West Texas, and in the lon-ger term, to deal with pipeline capacity issues in North America that aff ect us. Th is one, Energy East, is even more important, because it does all of those other things in terms of oil to tidewa-ter, but it’s our oil. We have capacity issues in southeast Saskatchewan. Th e highways and roads issues here are more acute than in anywhere else

in the province. Even though there’s other areas in the province that would dispute that, I think its safe to say because of pipeline capacity issues and more traffi c on our highways in terms of the energy industry.

“We know the important of getting our oil to tidewater, plus there’s the terminal. Th at’s real investment. It’s a good project.

Regarding buy-in from his counterparts, Wall said, “I think the federal government is very supportive. I think the Prime Minister has said, look, whatever approvals have to happen, have to happen. Th ese processes need to be addressed. TCPL is going to have to do that work, and they will. Prime Minister has been pretty clear in his

support for moving Canadian oil to the coasts.”Wall doesn’t know if there’s going to be more

federal involvement in carbon capture, but Wall said, “We’re going to make the case.”

“In the new year, I’ll be happy to report to the prime minister this project worked. It came as we wanted it come in, and is successful. Especially with the sale of CO2, it might be a game changer the rest of the world is interested in. Witness the senator’s visit today and the fact Mr. Monea is again in China. SaskPower is back in China, talk-ing to interests there about this technology and what we’re doing. I hope the Prime Minister will be interested in other projects. We’ll make the case and we’ll see what he says,” Wall said.

Page A5

P.N.: Will you have a truck terminal in Moosomin feeding this terminal? If so, have you factored in the impact this will have on Saskatch-ewan highways, such as Highway 8, south of Moosomin?

TransCanada: TransCanada is not planning to build a truck terminal at this time.

P.N.: Will it have crude-by-rail connections, as Moosomin is on the Canadian Pacific main-line? If not now, will it be built with crude-by-rail connectivity as a possible expansion?

TransCanada: No crude-by-rail connections are planned at this time. Any future facilities or provisions for such, should there be a market need for them, would be announced in due course.

P.N.: Will Energy East carry principally heavy oil, or light oil? Will it be a batched line, or a single product line?

TransCanada: Energy East will be a batch pipeline capable of transporting the full spectrum of crude types.

P.N.: How large will the facility be at Mooso-min? Will this be built with expansion in mind?

TransCanada: The preliminary design, subject to change subject to technical and market consider-ations, is for three 350,000-barrel tanks.

P.N.: How many construction jobs will be involved with the terminal?

TransCanada: We will have a better sense of construction labour requirements for the terminal upon completion of front-end engineering and design in 2014, but for a terminal of this size, we

would typically expect a peak construction labour requirement of 150 to 200 workers.

P.N.: Can you tell us about the preventative maintenance program (PMP, sometimes called dig-ups) that will be involved in converting an existing mainline gas line to oil service?

TransCanada: TransCanada has successfully converted a gas pipeline to oil service before as part of the Keystone pipeline that went into service in 2010 and has safely transported over 475 million barrels of oil since then. The conversion process requires complete inspection of the pipeline to be converted using an inline inspection tool capable of detecting minute anomalies anywhere along the pipe. Any anomalies detected will be inspected us-ing investigative digs and repaired as necessary. 

P.N.: Which pipe will be used across Sas-katchewan, and how large will it be? (i.e. 42-inch?) With the addition of Saskatchewan oil, will you use a smaller pipe to Moosomin (i.e. 36-inch) and a larger pipe beyond Moosomin (i.e. 42-inch)?

TransCanada: The pipe across Saskatchewan that will be converted is a 42-inch pipe and the pipeline between Cromer and the Moosomin ter-minal will be a new 16-inch pipe.

P.N.: How many pumping stations will be built? Will these be co-located at existing com-pressor stations, or will you require greenfield construction? If you are building new pumping stations, where?

TransCanada: Approximately 70 pumping stations will be built between Hardisty and Saint John and will make use of land adjacent to exist-ing compressor stations to the extent possible. The specific locations of pump stations is still being finalized subject to ongoing hydraulic analysis and land availability assessment.

P.N.: TransCanada has an enormous amount of 36-inch pipe sitting on the ground awaiting ap-proval of the Keystone XL project. If that project does not go ahead, will TransCanada repurpose that pipe for construction of the new portions of Energy East?

TransCanada: The Keystone XL project is still undergoing regulatory review by the U.S. Depart-ment of State. Assuming a successful review, Trans-Canada is committed to completing the Keystone XL project which is underpinned by long-term commercial transportation contracts. The new por-tions of Energy East will not be using 36-inch pipe, so Keystone XL pipe would not be repurposed on the Energy East project.

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Estevan – When recently elected U.S. senator for North Dakota Heidi Heit-kamp took the nickle tour of the Boundary Dam Carbon Capture Project with Premier Brad Wall, she likely had more experience in the field than any other politician before or since when it comes to carbon capture. That’s because prior to her election as a senator, she was deeply involved with saving the Dakota Gasification plant in Beulah, N.D., back in the 1980s when it just about went belly up.

Dakota Gasification has been the source of carbon dioxide used in the Cenovus-operated Weyburn unit since that operation began inject-ing CO2 for enhanced oil recovery in 2000. Even with the planned completion of the Boundary Dam project, Dakota Gasification will continue to supply the Weyburn Unit with carbon dioxide for many years to come.

As a director of Dakota Gasification, owned by Basin Elec-tric, prior to her election to the Senate, Heitkamp is intimately familiar with the carbon capture and storage strategy, both for greenhouse gas reduction and for enhanced oil recovery. Her questions during the tour were acutely

focused, and her state-ments afterwards were equally so.

Prior to coming to Estevan, Heitkamp vis-ited the Fort McMur-ray oilsands as well as a TransCanada control centre. Speaking to reporters after the tour about the importance of the long-delayed Keystone XL pipeline project, Heitkamp said, “I think it was abso-lutely critical. I think the events of the last weeks in the Middle East, tells us once again, that North America is the key to our success. Given the remoteness of the oilsands to markets, we absolutely need to see a rational transpor-tation system.

“I had a great op-portunity to see the control room at Trans-Canada, talked about the safety precautions, talked about the need to move this oil.

“I think there’s a whole lot of ideas that what goes into this pipeline is gooey, goppy, kind of (like) asphalt, and it’s not. It’s a lot like North Dakota Bakken. If we can continue to have the discussion, if we can continue to do what we need to do to move that pipeline along, that’s the whole purpose of going up there.

“It’s incredibly frustrating, not only for TransCanada, but a lot of American workers who want to get put

to work building this pipeline. Also to meet the needs of a domestic energy supply, when I talk domestic, obviously Canada is our neigh-bour. We share a huge long border, never had a skirmish, We kind of consider Canadians like North Dakotans. We’d love to see this pipeline built. We’d love to see us working together, to promote North Ameri-can energy indepen-dence,” Heitkamp said.

“Nebraska has given its approval now

for the change on the re-routing. There isn’t a

state that’s holding this up. It’s just that distance taking that pipe across the border.

As for the impor-tance of Keystone XL in taking North Dakota Bakken production, she said, “I think you’re go-ing to see some North Dakota Bakken in that pipeline. For me, the reason why I consider that pipeline critical is using the transportation system as a method to criticize the develop-ment of a fuel source is what they’re doing.

If it happens here, in Canada, with Keytone XL, it’s going to hap-pen in the Lower 48. It’s going to happen to us. So instead of fighting about whether you’re going to produce oil from oil shale, you’re go-ing to fight about where the pipeline goes. This is a concerted effort, it seems to me, to elimi-nate hydrocarbons are part of our future, and I think that’s short-sighted. I think that’s irresponsible.

Page A12

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Page A11“Fifteen per cent of Bakken crude could move on Keystone XL. Whether

that happens, it will just depend. The bottom line is this is North American oil. Let’s get it to market. Let’s get it to the refineries, and let’s not be dependent on foreign-sources oil.”

North Dakota has been at the forefront of the shift to crude-by-rail in getting oil to market. “Just as I think it’s important to have diversity in the fuel mix, I think it’s important to have diversity in the transportation mix. The mix needs to be diverse. Can we move every barrel of oil that we produce in Alberta and North Dakota, the two fastest-growing economies in the world, can we move every barrel by train, by rail? The answer is no. We need pipelines, we need diversity.

“In North Dakota, one thing that having the rail opportunity has done is diversified our market, and that’s very positive for reducing the price spread on our crude. We’re grateful for what Burlington Northern had done and Cana-dian Pacific has done, but it’s not the sole answer to moving crude,” Heitkamp concluded.

By Brian ZinchukCalgary – A series of “coffee talk” open houses was held by Enbridge in late

August and early September to inform local landowners about a significant project planned for its mainline.

The open houses were held at Vibank on Aug. 28, Maryfield on Aug. 29, Souris, Man. on Sept 4 and Morden, Man. on Sept. 5. Enbridge’s manager, stakeholder relations, Amber Pastoor said, “As part of Enbridge’s consulta-tion program for the Line 3 segment replacement program, we hosted coffee talks along the mainline. Coffee talks are an opportunity for landowners and interested stakeholders to share their thoughts, ask questions and speak with Enbridge team members.”

The proposed project will replace segments of pipeline throughout Sas-katchewan and Manitoba. Seven segments of 34-inch pipe are scheduled to be decommissioned and replaced with new 36-inch pipe. The reason behind the shift in size is that 36-inch pipe is commonly milled at plants and has become standard in industry. 34-inch pipe would have to be specially ordered resulting in having to also special order valves, meters and other facilities. Pastoor stated, “This project is in the early planning stages, and changes are not just pos-sible, but likely. We will continue to consult with stakeholders and keep them informed regardless of what the project may finally look like.”

The segments vary in length from 18 kilometres east of Enbridge’s Cromer, Man. terminal to 290 kilometres (numbers approximate) from Regina to Cromer. The Cromer-east section is the first up to bat, planned for late 2014. Also in late 2014, Phase II would see two segments in the Elbow, Sask. area as well as one near Wawanesa, Man., done. Then in 2015-2016, the bulk of the work would be completed. Phase III would see 51 kilometres done near Souris, Man., 57 kilometres near Morden, Man., and the long 290 kilometre southeast Saskatchewan stretch done.

The total is approximately 516 kilometres of pipeline decommissioning and replacement.

Line 3 currently carries light synthetic, sweet, light sour and high sour crude oil, and has an operating capacity of 390,000 barrels of oil per day due to pressure restrictions. Page A14

For more information callK&L Equipment Regina, SK (306)795-7779, (306) 537-2027 or email: ladimer@sasktel.net

Page A13

Up to seven differ-ent pipelines are cur-rently located within the Enbridge pipeline corridor; the existing Line 3 pipeline lies the second pipeline from the north boundary for the majority of the cor-ridor. The construction right-of-way for the Line 3 segment replace-ment will typically be approximately 45 metres wide. This will include some areas of new permanent easement, temporary workspace (TWS) on the existing Enbridge Alberta Clip-per (Line 67) right-of-way and the remaining TWS footprint from

adjacent landowners. Additional TWS will be required at select loca-tions to accommodate construction activities (e.g., road, rail, buried utility line and water crossings, sharp side bends, tie-ins and loca-tions where extra depth pipe or grading is neces-sary). Enbridge will also acquire TWS for project construction needs such as shoo-flies, as well as material and equipment staging.

“For the most part, Line 3 will parallel the Alberta Clipper route with a 10 metre offset between ditch lines. There are areas of con-gestion, population, wet areas, and man-made

and natural obstruc-tion that could warrant re-routes to the Alberta Clipper routing,” said Sawatzky.

ConsultationPastoor explained

that, “As part of En-bridge’s consultation program for the Line 3 Segment Replace-ment Program, we hosted coffee talks along Enbridge’s Mainline. The Coffee Talks were an opportunity for landowners and inter-ested stakeholders to share their thoughts, ask questions and speak with Enbridge team

members. Enbridge held nine coffee talks in communities in Al-berta, Saskatchewan and Manitoba over the past two months. In total, over 100 landowners and interested stake-holders attended the events (in Saskatchewan, approximately 25 land-owners and stakeholders attended the coffee talks.

“The primary con-cern raised by landown-ers concerned was about the safety of decommis-sioning pipelines and about who is responsible for decommissioned lines.”

Pastoor confirmed that Enbridge is respon-sible for all its pipelines, whether or not those pipelines are active or decommissioned. “Enbridge will moni-tor the segments that are decommissioned in place in perpetuity, and will be responsible for any ongoing mainte-nance costs. Enbridge will ensure that the segments remain safe for both landowners and the environment.”

Pipeline decommissioningIn its informational

material, Enbridge noted the distinction between “abandonment” and “decommissioning” made by the National Energy Board. The com-pany noted, “Decom-missioning refers to the permanent cessation of operation with no corre-sponding discontinuance of service to end users. For example, decommis-sioning could be equated to a four lane highway between two cities. You may permanently close down one of the lanes but the remaining lanes remain open and allow cars to travel between the cities. Abandonment refers to the permanent cessation of operation with discontinuance of service to end users. In this case the operation of the pipeline perma-nently ceases and service comes to an end. In the example above aban-donment would mean a closing down of all of the lanes of traffic.”

Page A15

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16

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Page A14But why Line 3?Enbridge’s Line 1

went into services in 1950, and Line 2 went in several years later. Line 3 was built in the late 1960s, yet it is the one being decommis-sioned and replaced, not the older Lines 1 and 2. Why?

Enbridge con-ducts ongoing integ-rity analysis of all of its pipelines in order to meet its commit-ment to operate safely. “Enbridge’s top prior-ity is the safe operation of its pipelines and is committed to the safety of landowners, employ-ees, contractors and the neighbouring public. As such, in recent months, Enbridge conducted its

latest assessment of the maintenance program options for Line 3. These assessments are part of Enbridge’s com-prehensive, system-wide preventative mainte-nance program. The analysis has indicated that certain segments are potential candidates for replacement with new pipe, since replace-ment can be a less intrusive and more cost effective option that the conventional integrity digs. We have identi-fied seven segments of our Line 3 pipeline for potential replacement, subject to regulatory approvals” said Allen Sawatzky, construction manager.

Trevor Grams, director, infrastructure

integrity, explained that “Line 1 (Clearbrook to Superior) was construct-ed in 1950; however, it was coated with coal tar enamel which has prov-en to be a better coating than PE tape which was used on Line 3. Line 2 (Edmonton to Supe-rior) is a combination

of pipe from the 1950s of which only a small portion (20 miles) was coated with mummy wrap, another small por-tion (20 miles) with PE tape and the remainder of the line with coal tar enamel. The segment of Line 2 with mummy wrap is scheduled for replacement, similar to the segments on Line

3, while we continue to use traditional mitiga-tion (sleeves) where needed on the PE tape segment.”

As for Line 4, Grams said “Line 4 is a combination of pipe materials from the 1970s to 2008 and uti-lizes both FBE and PE tape coatings. We con-tinue to monitor Line

4 as per our integrity management program which incorporates susceptibility to external corrosion due to coat-ing issues. Through our use of inline inspection tools we gather corro-sion feature information on a regular basis and take appropriate action where needed.” said Grams.

In general, the process of decommissioning a pipeline involves these steps:1. Removing the oil from the pipeline segment by launching an internal

device called a ‘pig.’Using this method, the vast majority of the crude oil is removed from the

pipeline segment.2. Flushing the pipeline with cleaning agents and cleaning devices (scraper

pig) to ensure the crude oil is completely removed.3. Physically disconnecting the pipeline segment being replaced from any

operating facilities.4. Injecting inert material at certain locations as required.5. Monitoring the decommissioned segment of pipe and maintaining the

cathodic protection to prevent corrosion. Courtesy Enbridge

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By Brian ZinchukEstevan – A flurry of announcements of new

crude-by-rail facilities in Saskatchewan in recent months indicate a tremendous build-out of capac-ity is underway. As reported in last month’s Pipeline News, if all these facilities are carried through to their full capacity, a year from now Saskatchewan will technically have the ability to ship every drop of oil it produces by rail, plus an additional Bakken boom.

Pipeline News asked Premier Brad Wall what he thought of this during a tour of the Boundary Dam Carbon Capture Project on Aug. 29.

Wall responded, “Well, the industry is the one making these investments. When I say the industry, I talk about the transportation industry, but also the pipeline companies. I’m sure they’ll make decisions for them that make sense in the long term on these capacity issues. From the government’s standpoint, our view is all of the above. We’re going to see an expansion in oil production in years to come. I think that’s fair to say, especially with prices pretty strong right now. In the long term, if that’s the case, we’re going to need to move it. We’re going to need rail, and we’re going to need pipes.”

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Estevan – With the Boundary Dam Carbon Capture Project now in its commissioning phase, many of the workers on the proj-ect have gone home. The workforce, which peaked around 1,500,

by Aug. 29 was down to 200 between three buildings involved in the project.

Ian Yeates, general manager for corporate planning for SaskPower, provided the techni-cal briefing to Premier Brad Wall, North Dakota Senator Heidi

Heitkamp and Basin Electric Power Co-operative CEO Andrew Serri on Aug. 29 as part of a tour of the project.

Boundary Dam, he noted, is the first project in the world of commercial scale.

“When SaskPower started doing this, we

didn’t expect that would be the case,” Yeates said. “We’ve got more experience on this than virtually any corner of the world.”

SaskPower also currently has a carbon capture test facility un-der construction at the Shand Power Station.

There’s a global challenge to meet growing demand for energy, he said. But standards in emissions have changed. “What was okay in the 1930s is not okay today,” Yeates said. “Something has to happen with CO2 emissions, and that’s happening today.

“We do not think it’s prudent to lose coal. It’s always there,” he said of power genera-tion options, adding the coal supply “is mea-sured in centuries.”

Comparing the cost of establishing natural gas-fired power plants and coal-fired plants,

coal plants cost more to build but have much lower, and more stable fuel costs. Natural gas plants, on the other hand, are less expen-sive to build, but have higher, and more vola-tile, fuel costs. Yeates expects gas prices to rise to the $5 to $6 per gigajoule range, for instance.

Coal is used in Alberta, Saskatchewan, Ontario, New Bruns-

wick and Nova Scotia. Ontario is in the pro-cess of shutting down 6,000 megawatts of coal generation. “They got rig of 20 per cent of their load. It’s not the recipe to economic hap-piness,” Yeates noted.

He added Ontario hasn’t scrapped their coal-fired plants, they just shut the door, hint-ing the province may be hedging its bets.

Page A19

Page A18SaskPower is see-

ing increasing demand for power, but supply is dropping. Boundary Dam Unit 1 has already shut down, and Unit 2 will shut down in 2015. While the carbon capture project has seen a rebuilt Unit 3, Units 4, 5 and 6 are in the queue for refurbishment in the coming years. A decision on those units will likely need to be made in 2015-2016, he noted.

“Does carbon cap-ture and storage have a role in our future? Abso-lutely, it does,” Yeates said.

Greenfield projects, however, don’t seem to be in the cards. He noted that in 2006 SaskPower considered a greenfield clean coal project, and “the cost was horrifying.” But by 2009, the math came within the ballpark of a natural gas-fired plant with the additional rev-enue from ongoing sales of carbon dioxide for enhanced oil recovery.

Cenovus will be purchasing the CO2, with the pipeline be-tween Boundary Dam

Power Station and the Weyburn Unit currently under construction. SaskPower expects to have CO2 in the pipe-line by April 1.

However, the backup plan is to pump carbon dioxide into the adjacent Aquistore injection well, drilled last year two kilometres east of the plant. It is intended to send com-pressed carbon dioxide into deep saline aquifers. Aquistore is a research project, but also meant as an alternative destina-tion for captured CO2 for times when Ceno-vus may not be able to accept CO2, i.e. during maintenance shutdowns.

SaskPower is cur-rently considering tak-ing over the Aquistore project wells from the Petroleum Technol-ogy Research Centre (PTRC), which drilled the injector and obser-vation wells in 2012. They are the two deepest wells in the province.

“This is a state of the art facility. It cleans up everything,” Yeates said.

He led off his pre-sentation by noting that

air pollution in China “is stunning.”

Wall pointed out that Michael Monea, SaskPower president of carbon capture and storage initiatives, was in China at the time promoting the project.

While leading the tour, Mike Zeleny, SaskPower’s project manager for carbon capture transitions and operations, said the cap-ture island was “over 98 per cent complete now,” with items like cabling outstanding at the time. “It’s essentially virtually complete.”

The tour began where the large pipes connect the power station to the capture facility, and progressed from beginning to end of the capture process. Highlights included the sulphur dioxide stripper, carbon dioxide strip-per, and massive heat ex-changers needed to cool the system.

The second building, to the south, included the large multi-stage compressor which will compress the carbon dioxide and send it down the pipeline to the

Cenovus Weyburn Unit.Participants saw

several areas on the car-bon capture side where photographs weren’t al-lowed due to proprietary processes being used.

The amine storage tank had tens of thou-sands of tiles placed by hand lining it. “They’re manufacturing the amine for us already,” he said.

“There is a lot of en-gineering effort in this facility to minimize the parasytic load required by the project,” Zeleny

said, pointing to those large heat exchangers.

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In temporary offices south of the new carbon capture plant, one finds three computer simulators with large banks of computer monitors. There are simulators for the acid plant, carbon capture plant, and Unit 3 generation plant.

The software integrates with the carbon capture plant. While leading a tour including Premier Brad Wall and U.S. Senator Heidi Heitkamp through the facility, Mike Zeleny, SaskPower’s project manager for carbon capture transitions and operations said of the simulators, “It’s a long overdue process, but I think it we be great for SaskPower.”

“It is my intent, in working with Tim Shuster, (director of the Boundary Dam Power Station), that we are determined this will not be a flash-in-the-pan training exercise. This is long overdue for SaskPower. It’s an absolute must, in the light of the technology you see today. In the light of the cost of an outage, if you don’t have operators that are adequately trained, and know what to do in certain cases, and have the skills, the cost of an outage and equipment damage is astronomical.”

There are plans to set up a permanent simulator training process. “We lose people every month. New people come in. People retire, somebody leaves. You have to have the ability to maintain that training apparatus. This ‘follow Joe around stuff ’ is no longer good enough,” Zeleny said.

Only Unit 3 has a simulator. They are going to look at using the equip-ment to train operators for other units. There’s a hang-up, however.

“They’re all different. That’s the trouble. You build the unit, and lowest bidder gets it, as it should be, but this one’s different than that one.”

Estevan MLA Doreen Eagles asked if there was any way that this train-ing could be done with the Saskatchewan Energy Training Institute, which recently built a new campus in Estevan.

“I’ll never say never. It’s not something I’ve really thought about. It’s an interesting concept. Maybe. Specialized skills, to set this up – like Dwayne and Randy over there – are 35 year operators. They know how this works. You need those kinds of skills. If that can be provided, maybe. I haven’t thought of that,” Zeleny responded.

“I’ve already lined up your next job,” Zeleny joked to one of the simulator operators, who was brought back from retirement to assist with the program.

Story and photos by Brian ZinchukEstevan – Instru-

mentation and automa-tion are at the heart of the work done by Estevan Meter.

Since summer of 2012, the company has

launched sister com-pany Virden Meter in Virden, Man., and expanded its Estevan headquarters.

Jarrad Skuce, Es-tevan Meter’s manager of field services, and a partner in company, spoke with Pipeline News on some of its ventures.

One of the growing areas for the company is dealing with tank emis-sions using a vapour recovery unit, or VRU.

As gas collects inside a tank, pressure sensors will activate a suction unit, either in an on/off format, or with variable speeds.

“That pressure sens-ing will start or stop the VRU, and send it off to the flare. You don’t want hatches emitting gas – it’s straight H2S coming off the top,” he said.

VRUs are used in battery installations. The set-up can be identified at a glance by a system of suction pipes, skinny pipes running along the top of the tanks.

As for what is driv-ing VRU sales, Skuce said part of it is making sure there is no H2S at the battery, as well as the accompanying scent. It’s not just a smell, but a safety issue.

It’s also being driven by drilling activity and recently implemented venting and flaring regulations. Gas that was formerly vented is now being put out to flare.

“We’ll put on a web-based SCADA (supervisory control and data acquisition) system. You can see if they need to speed up or slow down the

VRU. It’s like a blower/compressor.

“We can offer a whole package for the customer, from the controls to the VRU, to an engineered flare stack.”

Such a system will be custom tailored for the gas flow at that facility.

“We’ve worked on a lot of different styles of VRUs in the last three years. We’ve started of-fering our own system,” Skuce said, noting they have teamed up with suppliers to offer that solution.

“It’s a growing part of the business, for sure,” he said. “We do all the controls – pres-sure off the tank, high temperature shut-off on the blower, liquid level switch in the blower.

They also do the instrumentation on the suction pipe.

Depending on what the customer has and needs, Estevan Me-ter can either tie into their existing SCADA system or set one up. This includes setting up a cellular- or satellite-based modem which is connected to a host system. The user can then go to a web-based system to access it. This can be done through a smartphone, tablet, or laptop.

Controls are done one site. “We can set it up to alarm,” Skuce said.

“We’ve done some around Oxbow, Alida, and Stoughton.”

SeparatorsIn addition to their

VRU work, Estevan Meter also works on, well, meters.

Page A23

Page A22“We do a lot of test separator

instrumentation and automation,” Skuce said.

“You can have electronic gas measurement. They’ll have two-phase or three-phase test separators.

Two-phase is gas and emulsion, while three-phase is gas, water and oil.

A meter comes off each phase. Gas can be measured through elec-tronic gas measurement, differential pressure transmitters, static pressure and gas temperature. Water is typi-cally measured with a turbine meter, while oil will use a turbine meter or a Floco meter.

Cuts are determined by a sam-pling system.

“We do a lot of commissioning of satellites,” Skuce said. That’s is a grouping of wells on a header system at a “test satellite,” which determines how much of what is flowing from each well. This is important not only to know how much oil and gas is being produced, but the amount of royalties should be paid to the mineral rights owners. That may be govern-ment or freehold.

“There could be multiple partners. You want everyone to get the correct compensation for what they own in that well,” he said.

For instance, if you have wells A,

B, C, D and E, Joe may own 30 per cent of the mineral rights on well C, with Sue owning the remaining 70 per cent. On the four other wells, the provincial government holds the mineral rights. Monthly testing deter-mines how large a cheque Joe and Sue will get in the mail.

Skuce said you can identify a test satellite as “a big building in the middle of nowhere.” Swing valves al-low the flow to go into the separator.

Separators will have high pres-sure and high level sensors. They are usually pneumatically controlled and will activate a three-way valve, putting the fluid back into the group line if something goes wrong.

Pneumatic systems can be cheaper than electricity, and can be driven off fuel gas or compressed air. Compressed air can be easier on the instrumentation due to the corrosive nature of local gas.

Web-based controls are a newer aspect. “The owner of the separator doesn’t have to build a big SCADA system,” Skuce said.

A small-producer can see their system on the web, hosted in Calgary.

Skuce said, “If you want to see what your gas is doing and your volumes on a well, you can do that. In the last five years, it’s been growing a lot.

Page A25

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Page A23“Right now there’s a lot of people with SCADA systems on their iPhone.

It’s very handy. You don’t have to boot up a laptop. You can see a snapshot of what you would see on your laptop.

Burner systems“We’ve been working with burners for a long time,” Skuce said, noting the

B149.3 standard came out in June 2011. “It’s worked out well. As with anything, there’s maintenance.”“We’ve come up with solutions to deal with corrosion and plugging up

B149.3 valve trains. It’s like clogging your arteries.”For example, Estevan Meter is now using one-inch pipes for their pilot

lines instead of 3/8-inch. “It’s helped a lot. It’s come a long way, dealing with the wet corrosive gas issues in the southeast.”

Producers, in addressing Alberta’s Directive 17 for measuring water, gas and oil, need their meters calibrated on a schedule. Companies are seeking to keep their systems the same.

“By the sounds of it, a similar directive will be coming in here. We’re get-ting ahead of the game by getting these meters calibrated on a regular sched-ule,” Skuce concluded.

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Estevan – With expansion beyond its home base of Wey-burn, it was time for a name change. Last year, Industrial Electric Weyburn Ltd. became Industrial Electric & Instrumentation Ltd. (IEI)

The company established an Estevan location in June 2012, and now has a satellite location in Waskada, Man.

Meeting in their

new Estevan location on Sept. 10, Pipeline News spoke to general managers Geoff White and Richard Henning, and the Estevan of-fice regional managers Tyson Lowe and Chad Chapman.

As its name sug-gests, the company has two equal and related focuses, electrical and instrumentation work. Most of this is in the oilfield, but not all. For instance, the com-

pany recently installed a SCADA  (supervisory control and data acqui-sition) system into the Weyburn water plant.

On the electrical side, White said “We’re in construction, mainte-nance, heavy commer-cial and oilfield, as well as light commercial and residential.”

The company was founded with a focus on agricultural work, with a long-term relation-ship with the Weyburn

Inland Terminal.In instrumentation,

Henning said, “We cover a lot of the same markets – agriculture, oil and gas. We also do a fair bit of water and wastewater, in Weyburn, Assiniboia,

Regina area (but not Regina).”

A recent job had them working in the canola crushing sector, and they are currently involved on a carbon capture project in Es-tevan.

The company is also taking a look at the potash mining market.

Automation is a key area for IEI. “Henning said, “We have our own SCADA server and (well) optimization.”

A full time systems integrator within the instrumentation de-partment works with the various SCADA packages in the industry

to develop coordination and controls for every-thing from well optimi-zation to processes like water treatment.

Along these lines you’ll find their HMI, or human-machine in-terfaces. That’s a graphi-cal display that shows items like tanks, pipes and transmitters in an automated set-up.

“We also do well-site SCADA program-ming,” Henning said. This includes trans-mitter, valves, motors and the like. A lot of wireless transmitters are installed for tank level maintenance.

Page A27

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In the office, the company has drafting capabil-ities and can produce tender documents for clients.

A relatively recent innovation has been the company’s XSPOC pump off controller SCADA system. Chapman said, “It can be used for small scale or thousands of wells.”

As an example, The system is used in a 3,500 well installation in California, he noted.

“We’re offering it to clients for problematic wells, or high production wells they want to keep an eye on” he said.

The system can be programmed for numerous devices, including pressure, temperature and flow.

“Mass flow measurement in the field is becom-ing more common,” said Henning. This can be used in testing for royalties, or to see if production is somewhat off in a facility.

Pump cards, a graphical representation of the performance of a pump which is used in analysis and optimization, can be viewed remotely with the system.

Smart oilfieldIn a world that has smartphones and smart

bombs, IEI is focusing on a smart oilfield.Henning said, “Our focus on automation and

instrumentation is to convert your standard oilfield into an intelligent oilfield.

“We are now reselling a cost-effective solution for small entry-level guys, i.e. three wells and four tanks. Instead of receiving a text message saying the tank is high, you can log in from an iPad, see the levels, and take the necessary corrective action. He (the operator) can shut in his wells if need be from home.”

Some instrumentation out there will send information out from the well but will not receive commands.

“We make it intelligent, giving it two-way communications, showing graphical representa-tions of tank levels. We’re bringing it up to the 21st century,” Henning said.

The bottom line is automation of this type makes operations more efficient for the operators, he explained. The operator can see his run’s wells by looking at his screen, and plan his day prioritizing problems first, instead of coming across them while doing his normal circuit.

About 40 per cent of facilities in the region are “fairly intelligent” in their instrumentation, and only about 10 per cent of all wells, according to Henning. Can the remainder benefit from automa-tion?

“Absolutely,” he said. Chapman said probably 75 per cent of wells

could see a benefit from automation.White made the analogy of smartphones, say-

ing many couldn’t justify the need for a smartphone until they invested in one. Once you have one, you would never be without it.

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Chapman noted there is a cost associated with automation, but IEI divides up that cost for the client by offer-ing server and software maintenance. “We take that on ourselves.”

The client then doesn’t have to maintain their own server, which can be a considerable expense.

“There can still be a bit of stigma with the operators themselves,” White said. Some people thought that automation would mean jobs are lost, but in fact the opposite has been true. More people are needed, he said. Once people are trained on the product, they realize how it will benefit them and the facilities they manage.

Some of the move to more automated systems is coming from government regulations.

Henning said, “That’s exactly why we’re focusing on the automation side. We’re the leaders in this corner of the world. Not only do we design and set it up locally, we maintain and support it as well.”

With properties frequently changing

hands, he noted that a company may pick up an old, antiquated facil-ity. “Hey, here’s what we can do with this,” his said, referring to assist-ing clients with mod-ernizing facility opera-tions and meeting future compliance needs.

More bandwidthOne of the big

stories in the wireless world right now is the opening up of the 700 megahertz portion of the electromagnetic spectrum. Formerly used for analog televi-sion broadcasts, the re-allocation of this bandwidth will dramati-cally shake up com-munications technology, and with it, automation. The impending auction of that spectrum is what has been driving the federal government’s push for a fourth na-tional cellular carrier.

Whenever new technologies have be-come available, inevi-tably, it has an impact in the oilfield. Henning said we’re probably three years from 700 mega-hertz deployment, but there are a lot of future technologies that may be applicable. A lot of it has to do with video.

One is the use of more cost-effective

video surveillance. This might include the use of a video camera to monitor simple analog gauges or tank levels in real time.

Thermal cam-eras can also be used for detection of emissions leaks. Other cameras can be triggered to re-cord truckers when they arrive on location.

White said, “There’s a million ways to bring this all to the clients.”

Expansion explainedAfter operating

principally from Wey-burn for decades, why expand now?

White responded, “Management discussed with workers what their ambitions were. One of the common themes was expansion. The next thing was to pick a loca-tion. Estevan was the logical choice.”

Lowe said, “We already knew a lot of the clients down here.”

Henning said, “For the last three years we were seriously looking at Estevan. We found property and people to move there.”

Page A30

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Page A29Lowe relocated to

Estevan with the expan-sion, along with one of the instrument techs. Chapman hails from Estevan, as does most of the other staff.

“We’ve got seasoned people here in both de-partments,” White said.

In total, IEI has 63 staff members, with about a dozen working out of Estevan.

Waskada was

opened as a satellite to Estevan, supplying clients in southwest Manitoba.

Chapman said the Waskada operation is largely safety-driven. With a two-hour drive each way from Estevan to Waskada, a worker has to put in a 12 hour day to get eight hours in on-site. And then there’s the economics argument. “Who wants to pay for four hours of travel?” he asked.

Henning said the Waskada facility is used on demand. They had

made use of the local camp until a house and small shop was leased.

The company also has a sales presence in Calgary. But when asked about operations expansion into Alberta, Henning said he can’t see that in the immedi-ate future but wouldn’t rule it out. To date the company has done work in Yorkton, Re-gina, Swift Current and Kindersley in addition to their daily commit-ments in the Weyburn, Estevan and Waskada areas.

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Virden, Man. – Estevan Meter has serviced southwest Manitoba for many years, but the company found that it was important to establish a Manitoba-based presence. Thus, Virden Meter, a sister company, was born.

“We officially became Virden Meter in the beginning of 2013,” said Mark Kessler, who manages the operation and is a partner in the ownership.

Previously the outfit had estab-lished a shop under the banner of Estevan Meter in mid-July 2012.

Kessler had worked with Estevan Meter for a year prior to buying into the ownership of Virden Meter. Prior to that he spent a lot of time working across southeast Saskatchewan look-ing after pipelines.

“The last 17 years, I was an in-strumentation tech with TransGas,”

Kessler said. TransGas is the SaskEn-ergy subsidiary responsible for the Crown corporation’s gas transporta-tion and storage services.

“We did lots of compressor main-tenance, measurement and quality control.”

“I covered the southeast corner of Saskatchewan, from Swan River, Manitoba, to Grenfell to the U.S. border,” he said. Kessler was based in Moosomin, and he still lives in Wapella

Before that he worked for Hud-son Bay Mining and Smelting in Flin Flon for five years.

Born in Estevan, Kessler moved to Coronach as a child, where his father worked at the Poplar River Power Station. “My Dad used to work for SaskPower. He was the mechani-cal foreman,” he said.

Page A33

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Kessler went to the Palliser Campus of SIAST in Moose Jaw to take his instrumentation tech course. Supporting community

When asked why they set up shop in Virden, Kessler re-sponded, “We’re here to support the community of Virden. We couldn’t properly service this area out of Estevan.

“We felt it was time to come here and bring some of our business into Virden, not just pull it into Saskatch-ewan.

“We don’t want the Alberta licence plate syndrome. It’s only fair

the people of Manitoba benefit,” he said, noting the desire of oil compa-nies with operations in the area to work with locally-based firms.

“It was important for us to have a Mani-toba presence.”

With a maroon jer-sey for the local Junior A hockey team hanging prominently in his of-fice, Kessler said, “We’re fairly major sponsors of the Virden Oil Capitals.

“Hockey’s huge, right? Melita’s doing a fairly major renovation on their rink. We gave them $5,000.”

Specialties“We do oilfield

instrumentation sales, service and repairs. We

have instrumentation techs we can send into the field to do repairs. We have a full service shop. We’re a certified pressure safety valve shop,” he said. “We’re a certified flow meter repair and proving facility. As well vessel turnaround supplies and service is a big part of what we do”.

The shop is located on the northern out-skirts of Virden, near the airport and Tundra Oil and Gas’ main yard. They have two service trucks based in Virden.

“I try to stay in here, but I do do some field work,” Kessler said.

“We can do pretty much everything

Estevan can do, we’re just smaller scale. We do rod rotator repairs, we fix chemical injec-tion pumps and Moyno pumps.”

Service areaFrom Virden, they

support the local oil-field, Waskada, Pierson, Sinclair-Daly and Man-son fields.

“We service every area in the shop. Most of our field work is in the Sinclair-Daly area.”

“There are four Virden Meter employ-ees, including me, plus we’ve had a guy from Estevan the whole year,” Kessler said.“We also have a combustion service with a guy out

of Moosomin, available here.”

Between Virden Meter and Estevan Me-ter, the two firms offer a 24-hour, on-call service.

“The people and companies in Virden have made me feel very welcome. I think they’re glad we’re here to help them.”

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Goodwater – More theoretical training is helpful down the road, according to one instrumentation tech.

Matt Perkins is a journeyperson instrumentation technician with Wey-

burn-based Industrial Electric & Instrumentation Ltd. He’s been doing it “forever.” Riding along with him was Blair Hultin, a co-op student taking instrumentation technology at SIAST’s Palliser campus in Moose Jaw. The two were working on the instrumentation of a wellhead in the Weyburn unit on Sept. 12.

Hultin lives in Regina, and has been commuting to Weyburn. “I have one semester of school left. This is my last work term,” he said.

Nothing is official yet, but he’s hoping to find full-time work with IEI once he is done his three-year technologist diploma. That will be followed by two years hands-on work before taking the journeyperson exam.

“They said there’s a good chance of future work,” Hultin said.Many people take a complimentary electrician program at the same time,

resulting in two tickets. Not Hultin, however. “I like the instrumentation side of things. This has a lot less shovel work.”

Perkins noted, “When I was in school, there were a lot doing dual-ticket.” He was told to do the electrician portion first, because once a person had

their instrumentation tech ticket, they were unlikely to want to pursue the electrician qualification later.

The alternative is a four-year apprenticeship in instrumentation technology, which is what Perkins did. That said, he prefers the three year-diploma followed by two years in the field path. While the material covered is the same, there’s more time to get a good grounding in the theoretical side, he feels.

Page A35

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Page A34“The apprenticeship seems too fast. You get the same material, but not the

time.“More theory means more confidence.”Perkins has only been in Saskatchewan for about a year now, calling

Weyburn home. He grew up in Calgary, and spent time working in fabrication shops in Leduc and all over Alberta with TransCanada. He also worked with Altagas in Leduc.

Life on the road can be adventurous when you’re young, but not so desir-able when you get older, said the 55-year-old. He likes the compactness of the southeast Saskatchewan oilpatch, meaning he can sleep in his own bed.

“You get tired of covering the province from one end to the other. It was exciting when you’re 20, but you get sick of it when you’re 40.

“I was working from Zama to Etzcom, south of Medicine Hat,” Perkins said.

Hultin took up instrument technology as a substantial change from what he used to do. He had pursued an economics degree and worked with the Royal Bank, and then later worked in construction equipment sales. He also wanted something more steady than a commission-based lifestyle.

“I wanted to do something with good wages, you can use your hands and mind.”

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Bienfait – With its founders originally from Saskatchewan, Abrasive Blast & Paint has set up a shop here after 19 years in opera-tion in Alberta.

Abrasive started out in Nisku in 1994, where they have a shop in Precision Drilling’s yard. Colin Fedoruk is the manager and sales-person for Abrasive. He’s part of the fam-ily business, which is owned by his uncle and aunt, Lorne and Paula Fedoruk. Colin spent several years working in the Alberta operation.

Ever notice that when heavy equipment goes up for auction, all the blades and buck-ets have a new coat of paint?

“For the last four years, we did all the Ritchie Brothers sales in Nisku. We shut that down to move here,” Fedoruk said.

“Our main abra-sives shop is right in Nisku. It’s about five years old now. We run 24/7, seven days a week.

Bienfait is the com-pany’s third location. They started operations in southeast Saskatch-ewan on April 1, with

a yard just west of the Calfrac facility, west of town.

There they have a 96-foot long Norseman tent structure that acts as the main shop. It’s equipped with heaters to deal with winter.

“We are planning a building. We’ve got to get some revenue in first,” Fedoruk said.

“I’ve done it all. I’ve washed, I’ve painted, I’ve blasted, everything. I started with my uncle when I was 17,” Fe-doruk said. He is now 31.

He spent one year working on drilling rigs, but didn’t like it.

Fedoruk’s family, including his uncle, orginates from Togo, Saskatchewan, near the Manitoba border. He went to school in Yorkton.

“I watched his company grow from one shop and a mobile unit to this,”’ Fedoruk said of his uncle’s op-eration.

“We do drilling and service rigs, whatever the customer wants to give us,” Fedoruk said. “Anything from truck decks to inside tanks, we’re happy to do.”

One of their proj-ects is a new rig for a local drilling company. In early August they were working on shale bins and pipe tubs. Some of that work is being sent over from a Redvers manufacturer.

Page A38

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Abrasive has been getting support from several local drilling companies, working on everything from hand-rails to sub-structures and derricks.

“We’re very thank-ful for the opportunity they gave us to start up,” he said.

That’s not all, though. A garbage truck, for instance, was in the main bay in early August. They do

trailers, garbage cans, boiler buildings as just a sample. “I did a tractor and a trackhoe,” Fedoruk said.

They are looking for heavy equipment work for the winter slow time.

“In the future, we want to run 24/7. We want to run like Nisku runs,” he said, pointing out that it is more ef-ficient to work that way.

“The guys we have here are very profes-sional, and do great

work. We specialize in Ceram-Kote, and En-dura. It’s what everyone calls ‘the plastic paint.’ It’s what everyone loves. It’s shiny, easy to clean.”

Prior to the Bien-

fait start-up, Fedoruk worked with a large lo-cal shop in Estevan, do-ing similar sandblasting and painting work for three-and-a-half years. That included work on new and rebuilt build-ings and rigs.

The big recession is what brought him back. “I left in the recession in Nisku. There was nothing going on,” he said.

His uncle called up him after this past Christmas, and that got the ball rolling on the Bienfait location. “He wanted to give me the opportunity. The work is here,” Fedoruk said.

“We want to get closer to home.”

As for the location, Fedoruk said he lives in Bienfait, and there was more land available. The location is a 10-acre site in a new industrial

subdivision. There are five peo-

ple working for Abra-sive in Bienfait, out of a company whose staff runs around 60 to 70 people. “I’m mostly running the phone and sales, but I’m not afraid to help the boys out.”’

Jason McCann, originally from New Brunswick, is the general manager of the whole company. He’s like family, according to Fedoruk.

Tim Fedoruk, Lorne’s brother, runs Abrasive’s main shop in Nisku. Jeff Anderson, Paula’s brother, runs the Precision yard.

All three of Lorne and Paula’s children are involved. Daughters Robyn and Rayleen are preppers and painters, while son Ryan works in business develop-ment.

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October 2013

Story and photos by Geoff LeeKerrobert – Arrow Reload Systems Inc. may seem like a new kid on the

block with the start-up of its first small scale crude-by-rail terminal in Kerrob-ert this year, but that’s where the analogy ends.

As a subsidiary of Arrow Transportation Systems Inc. which is based in Vancouver, the company has been providing trucking and railcar reloading services for Canadian Pacific Railway since 1988

Dating back to 1919, the company is owned and operated by B.C.’s Charles family. It provides transportation, distribution and materials handling solutions to customers throughout North America.

Pipeline News caught up with local operations supervisor Brad Murphy in late August for a tour of the facility located next to the CP mainline on Rail-way Avenue in the downtown core.

“Right now it’s been slow. On average, we’ve been trying to keep to 100 cars a month,” said Murphy.

“Marketing wise, it’s been slow for the last six to eight weeks. I guess ev-eryone’s kind of that way.

“We’re hoping here next month it picks up again to get back to those numbers.”

The Kerrobert terminal was launched as a small scale operation back in January. With a capacity to load up to 10 railcars a day with crude oil, it has room for expansion.

“It was a learning curve for our company. It was the first crude site that we’ve done,” said Murphy.

“Arrow, as a whole, is just learning the process and procedures. Kerrobert was their first, and I think since, then they’ve opened one in Edmonton.”

Arrow Reload has multiple transloading facilities in North America that handle a variety of commodities from lumber and aggregates to bulk liquids with crude oil from Kerrobert being the newest.

The Kerrobert terminal features two spur lines that can hold about 35 cars on site, with room to add more tracks and storage tanks over time.

“The site was always intended to have the capability for expansion to install tanks, etc. Until that’s warranted by the shipping, it will stay the way it is,” said Murphy.

“Storage tanks were built into the expansion plans. From what I under-stand, the site is available with that capability. Right now there are no immedi-ate plans.”

The facility includes two Sky Eye metering stations with D-17 compliant meter packages for custody transfer truck unloading and loading.

“If we’re doing 10 cars a day, we’re looking at 30 to 40 trucks,” said Mur-phy.

“The stations are mobile stations that we move up and down the track depending on what producers are coming in at the time.

“It makes it easier having the extra one. We run a shuttle car as well. We move our own cars around logistically the best way we can to get stuff in place.”

Most of the oil is heavy oil is trucked from within a radius of 20 miles from Kerrobert. There is also some light oil.

“Most of the oil is battery oil. It’s cut (.5 per cent water cut) and been tested before it gets here,” explained Murphy.

“We are not responsible for the quality of oil other than monitoring.”With news of the Lac-Mégantic crude oil rail disaster that killed 47 people

still topical, Murphy said Kerrobert has little to fear from Arrow Reload’s operations.

“We’re set very well down here. Our site is very secure,” he said.“As far as the Quebec incident goes, anybody that knows the flat land of

Saskatchewan – to have that here would be a real freakish accident. It’s not go-ing to happen on my site.”

Page B2

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Page B1As for odours from H2S, the Kerrobert terminal

deals with clean oil and doesn’t have any scavenging system on site yet.

“We’re fully monitored and set up to handle sour gas. We do closed venting on our product that comes in here as well,” said Murphy.

“We don’t vent directly to atmosphere. All the pressure is getting returned to the trucks and they leave with it.

“We maintain the level of smell to the best possible way that we can do it, to avoid the problem because we are right in town.”

Murphy believes that TORQ Transloading Inc.’s plans to build a $100 million transloading fa-cility south on town with help to raise the profile of Arrow’s facility while boosting the local economy.

“Kerrobert’s always been an oil town. Every-body’s excited about have a new big business like TORQ come close to town,” he said.

“It’s going to provide work. It’s going to affect our community really well. We’re used to the oil trucks running through town anyway.”

TORQ plans to locate its transloading terminal adjacent to the Enbridge Station and the Plains Midstream tank farm on Pipeline Road and tie into

Inter Pipe’s lines.“It brings more attention to the business, I

guess. It gives us more exposure and maybe other companies will look at doing it more, I guess,” said Murphy.

“Really, competition wise, the scope of their project is so much larger than ours and based on taking oil out of the pipeline as well, whereas, we are more geared to just handling local produced oil off-truck.

“They’re going to do that as well, but I under-stand they have a significant partner so it doesn’t really affect my business directly.”

The Arrow Reload terminal is designed to operate on two, seven day shifts with about six employees per shift overseen by Murphy who hails from Kerrobert.

“I’m right from town. I was in the grain busi-ness for 20 years. This is the first time I have been employed outside the ag industry, so it’s a new venture for me as well,” said Murphy.

“The challenges aren’t much different from the procurement of grain to put in railcars. I worked in grain processing plants, so I have shipped lots of products on rail before.

“This is just a different product with different rules and regulations and maybe a little bit different procedure with it.”

The site includes an office trailer, a tool shack and crew shack and is accessed by Railway Avenue.

That’s the designated truck route that avoids the use of Highway 51 through town – that’s been under construction for new water mains.

“Our trucks will have no impact on the main road after it’s done and paved,” said Murphy.

“We have direct access in and out on both ends of town through the bottom streets.

“We have informal agreements with the Town about road maintenance. It’s something we’re work-ing in partnership with the Town to provide the business here and look after our end of it.”

Ottawa – A Senate committee is urging the federal government to launch an arm’s length re-view of the transport of dangerous goods by rail in the wake of the Lac-Mégantic rail disaster.

That was one of 13 recommendations in a report by the Senate Committee on Energy, the Environment and Natural Resources on how to make the transport of hydrocarbons by pipelines, tankers and railcars safer.

“In the years ahead, hydrocarbon production will continue to grow and so will transport capacity, said Senator Richard Neufeld, chair of the commit-tee.

“That’s why we believe Canadians need to know more about what the federal government has in place to protect citizens and the environment, and what more can be done to enhance current practices.”

Canadian National Railway and Canadian Pa-

cific Railway are expected to move 140,000 carloads of crude in 2013, up from 500 in 2009.

The committee began its review in November 2012, but the Lac-Mégantic rail tragedy that killed 47 people and destroyed the downtown core of that town added a sense of urgency to its deliberations.

“We heard a lot of testimony which should give Canadians confidence, but the reality is that the transportation of hydrocarbons can never be com-pletely without risk,” said Senator Grant Mitchell, deputy chair of the committee.

“It is my hope that at the very least, Lac-Mé-gantic can invoke an Exxon Valdez response, where we carefully and thoroughly examine what went wrong so that any improvements that need to be made, can be made quickly.”

As the committee was wrapping up its report, Transport Canada announced emergency directives to improve rail safety less than three weeks after the Lac-Mégantic disaster.

The committee set out to examine the state of emergency and spill prevention and response plans under federal authority and to make recommenda-tions to improve public safety and the protection of the environment.

The report calls on Transport Canada to imple-ment all of the safety recommendations from a federal report two years ago regarding the transport

of dangerous goods. Additionally, it recommends Transport Canada,

in co-operation with its U.S. regulatory counter-part, to find ways to accelerate the phase-out of the DOT-111 standard tank cars used to transport crude oil in both countries.

These tanks cars have a 40-year lifespan and lack protective housings to safeguard the top fit-tings from impact damage making them prone to dangerous leaks in a derailment.

The committee also made specific recommen-dations aimed at improving railway safety culture, and for the government to provide better regulatory oversight of the transport of dangerous goods.

The report recommends that Transport Canada makes sure rail companies have adequate liability insurance to cover damages caused by a major ac-cident.

The committee also makes recommendations for marine spill response and for the transport of hydrocarbons by pipelines.

“Transportation systems operate within a highly regulated environment. There are extensive regulatory frameworks, management systems, stan-dards and practices, all serving to promote safety,” said Mitchell.

The committee held 18 hearings and heard from 51 different parties during its deliberations.

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Estevan – The digital age is coming to two-way radio communications in southeast Saskatchewan, according to Art Dougherty of Estevan’s Industrial Communcations Ltd.

The company specializes in radio communica-tions solutions.

Each year, Dougherty attends a trade show in Las Vegas to learn about the newest things in the communi-cations market. The International World Communica-tions Expo has the “latest and greatest tech in RF (radio frequency),” he said.

“The emphasis is now digital radio,” according to Dougherty. That’s a good thing, since Industrial Com-munications is staying ahead of the game.

“We started to move into a digital format last year. Digital doesn’t give you more range, but it allows you to carry more information on an RF channel.”

Analog two-way radio systems are limited to a 25 kilohertz slice of bandwidth. With digital, that number is dropped to 6.25 kilohertz. The result is four times as many channels can be accommodated in the same slice of electromagnetic spectrum.

This allow for packetization of voice communica-tion. It also allows for future technology like video trans-mission for surveillance. Page B5

Industrial Communications offers an automa-tion communications solution in the form of the ProTalk Plus. With an autodialler, it can be hooked up to a land line or radio system. It can be used on a battery for monitoring items like high tank levels or H2S alarms. Up to eight alarm contacts can be used, but an expander board allows for 16.

With four relays, Art Dougherty said, “You can shut down or start a well remotely using a DTMF (dual tone multi-frequency).”

Similar to a dial tone, he said, “It’s simple and effective.”

Alarms can have vocal recordings, including identifying the location and nature of the alarm.

The technology has been around for at least 20 years, with the current generation being seven years old.

“That’s the one of many products available for automation and communication systems that we carry,” Dougherty said.

Page B4

“You can do more things with it down the road,” Dougherty said. The digital ad-vantage will come with future advancements, i.e., oil companies showing realtime video footage at oil sites.

In the area of dispatch, radio text messages can be useful, especially for fleet truck-ing.

With more and more people using wireless applications every day, and wireless spectrum being a limited resource, every bit of spectrum is precious. Dougherty noted, “Industry Canada is telling us with any new systems, they want to use narrow band.”

Industrial Communications operates a network of repeater towers throughout southeast Saskatchewan and southwest Manitoba.

“With our repeater system, we’ve got analog and digital. Next year we will be inte-grated 100 per cent digital,” he said.

The repeaters can switch between analog and digital communications, depending on customer needs.

Industrial Communications installs fleet management GPS systems which goes hand-in-hand with two-way radio communicaitons.

Cellular boosters are another common useful item they install. A booster has two antennas – one inside the vehicle, and one outside. They substantially improve cellular reception.

The thing is boosters are typically reverse compatible, but not forward compatible. That means a 3G cellular booster may work fine with older cell-phones, but the signal for the new LTE phones is completely different, requir-ing a new booster.

“That’s just the technology changes,” he said.LTE, or long-term evolution, is the latest and greatest thing in cellular

communications, but it’s not perfect. Yes, it can transmit a lot more data, and faster, but Dougherty noted its radio wave propagation is not the same as older cellular technologies. For instance, it can have difficulties in metal buildings. New LTE boosters will be helpful in those situations.

As for two-way radios, they’re not going anywhere anytime soon, according to Dougherty. With cellphones being outlawed while driving, reaching for a trusty microphone is still going to be around for the long term.

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The Rural Munici-pality of Oakdale expects to nail down a road maintenance deal with TORQ Transloading Inc. before issuing a develop-ment permit to build its $100 million crude-

by-rail terminal about 15-kilometres southeast of Kerrobert.

The terminal will be located on Pipeline Road that could see up to 150 trucks per day travelling to the facility during peak volumes.

The RM is seek-ing funding from users

and provincial grants to upgrade Pipeline Rd and the busy Hopedale Rd cor-ridor to super grid status.

Road maintenance agreements in Saskatch-ewan cover only the incremental cost that occurs above regular maintenance costs due to the increased pressures of

heavy or frequent hauls.Municipalities also

have the authority to request a performance bond from haulers, if it is negotiated and included in the road maintenance agreement.

Road maintenance agreement rates will in-crease by 37 per cent over 2013 and 2014 pending the ability of the province to use actual cost data from RMs as the basis for rates.

Darwin Whit-field, reeve of the RM of Oakdale in Coleville sat down with Pipeline News to talk about the need for a road maintenance deal with TORQ and other haulers using the roads.

PN: How would you describe the level of oil and gas activity in the region?

Whitfield: It’s

picked up quite a bit. We’re pretty steady. It’s been here for 50 years or so. We’ve built the road infrastructure around it over the years.

Now it’s just the magnitude, the heavy trucks that are moving on it that’s making it tough to keep up with infrastructure.

It’s tough to get the industry to want to play ball as far as road usage maintenance agree-ments go.

PN: Is road main-tenance the biggest cost burden for the RM due to heavy oilfield truck traffic?

Whitfield: Yes. Our biggest issue is we are in the centre of the hub. We are the hub, so we’ve got the trucks coming all through the spokes.

They have to go through us to get to the terminals, so when you are building roads, you’ve got a small tax base to build that from.

That’s what other municipalities are even having issues with. The

oil is coming through and damaging their roads and it’s tough to collect enough taxes to keep the roads up to where they should be.

PN: How many kilometres of roads do you have to maintain in the RM?

Whitfield: If we were wanting to pave our main arteries, not counting our back trail roads, we’re probably looking at close to 500 miles.

PN: How essential is a road improvement agreement with TORQ before they begin con-struction?

Whitfield: That’s the key component on the whole project. We said to them this is a community.

It’s maybe not a town, but you need in-frastructure to get there. It’s no different than a developer that is setting up houses in the city. Those developers pay for the infrastructure to get to their development.

Page B7

Page B6We need that road built to a certain standard that will take the volume that

they are saying. They’re saying there won’t be as many trucks involved. They are keying

more to bring the oil out of the pipeline (Inter Pipe).The truck still has to get to the terminal to get it down the pipeline unless

the pipeline companies put some more pipelines in the ground or LACT units to get oil from batteries into the sale lines.

The Lease Automatic Custody Transfer (LACT) unit is a critical system in own-ership transfer of crude oil and petroleum products from the production site to trucks, pipelines or storage tanks.

PN: How many oilfield companies access Pipeline Road?There are three or four main companies that go there. We’ve got some road

maintenance agreements with the heavier haul ones.PN: What kind of improvements are you considering for TORQ's use of

Pipeline Rd?Whitfield: That’s our negotiations right now. Number one, it’s got to get

built to a super grid status with the ability to be paved – with seven residents living on the four mile stretch that they’ve got to use.

If it gets to peak volumes– we know it will be staged in – it’s 150 trucks in, but they have to come out so that’s 300 trucks a day. That’s six and a quarter trucks an hour.

They’re going to want to get in there 24/7.PN: This whole area is becoming a major oil transportation hub. What

are your thoughts on that regarding road maintenance?Whitfield: Well it was busy before and it’s going to be a lot busier now.

Something’s going to have to be done not just on our rural roads, but on our main highways.

They weren’t built to primary – they’re running primary weights. As resi-

dents, we’re seeing a lot of damage on Highway 21 and nobody looking after it. We haven’t seen a plan from the province on how they are going to build

this structure up to what is needed to today’s standard.PN: Why can’t the RM pay for road maintenance on Pipeline Rd and

other routes from taxes?Whitfield: You can’t expect your local tax base to take on a project that big.

These trucks are travelling every road.We build our main grids to get traffic to and from the highways to the

storage facilities, but even now, our light travelled roads are getting destroyed because it’s hard to push the industry.

If they have some ownership into that road other than just taxes – because that’s what we hear – ‘I’ll just put it on taxes,’ yet we get phone calls asking why our taxes are going up.

Page B8

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Page B7I think if they actu-

ally put some major dol-lars into that road you’re going to make sure that thing is not going to get wrecked.

PN: What it the status of TORQ’s proj-ect as of Aug. 27?

Whitfield: Right now they have bought a quarter of land, and if they get the develop-ment permit they have the right to purchase another half section.

The development

agreement is pending on the road agreement. We are still waiting on some governmental reviews.

The Water Security Agency hasn’t got us any information as far as flooding issues up there because it is being built on bit of a low lying area.

The road one is key. We are waiting on our engineer to get some more dollar figures that we can present to TORQ. There are templates.

PN: Are you op-timistic that you can work out an acceptable road improvement

agreement soon?Whitfield: We

are all trying to work toward a goal that is best for the community. There are seven resi-dents on that road.

To get that volume of traffic with the dust that it entails, I think it’s got to be attained to now. It’s tougher to get later.

This is going to be a step up. There’s defi-nitely going to have to be some of different cost sharing going on with the other companies. That’s a negotiation that will have to go in place.

Page B9

RTM HOMES

Page B8

If we can get all parties in – there are some government grants, but it all ties into the co-operation of every-body. It will make it cheaper for ev-erybody if everybody comes together.

PN: Is Pipeline Rd the busiest oilfield road in the RM?

Whitfield: No. We’ve got the Hopedale Road and Gleneath Road a few miles south of the Hopedale Road. There again, there’s five resi-dents living there.

Those two roads are already carry-ing at times 400 to 500 trucks a week one way. That’s 1,000 trucks between the two of them.

On the Hopedale Rd, we already had an engineering firm out in the winter to build it to super grid status.

It’s got to go to Inter Pipe. This is all the traffic coming from munici-palities to the west.

It’s a corridor road that matches up to the RM of Winslow so we’re gearing up to build that up to super grid status with the ability to pave.

Winslow is getting some projects

over there and Kindersley has two or three just south of us. We’re right in the corner collecting all the traffic.

Trying to get the tax base just from our little group is not fair to build those roads up to the status that they need to be.

We’re constantly in negotiations with the companies that are using it. Most of them are being pretty good. They’re coming to us with agreements that they use in other jurisdictions.

PN: What is the importance of having a development plan in place?

Whitfield: Now you can sit down with companies – it’s a pretty stan-dardized thing. It’s nothing new.

There’s lot of municipalities that have got the same regulations going in, so it’s fair for municipalities and companies coming in.

PN: Do you do a lot of driving on these roads yourself as a farmer and a reeve?

Whitfield: I live about two miles from the Hopedale Rd. I drive on them every day pretty much. I drive a school bus, so I actually drive most of the roads here, so I know what most

of the traffic is like.It costs a lot of money to keep

these roads up. It’s not like you’ve got any cash floating around. Every dollar is accounted for.

PN: What are those road agree-ments based on?

Whitfield: Weights and numbers. We can put weight restrictions during the road ban season. That’s what we

are saying will happen if we don’t have a road agreement and build a proper road.

We’ll just have to restrict it to light traffic during heavy rains. Spring road restrictions will be there.

I think it’s to the benefit of a company to put in an all-weather road, so there not going to be totally held back.

Saskatchewan’s active drilling rig count, one of the leading indicators of the industry, continued its slump over August into September.

By Sept. 17 the rig count had risen to 80, but just a week before it was hov-ering in the 65 to 70 range. That’s down substantially from the same time last year, when there was a mid-September peak of approximately 85 rigs working. In 2011, the year floods dramatically impacted op-erations in southeast Saskatchewan, the rig count through the latter-half of August and first half of September ran in the 110 rig range. It peaked that year on Aug. 22 at 122 active rigs.

Graphic courtesy Rig Locator

Calgary – Why spend money exploring for oil when you can buy a working interest in producing wells?

That’s the tactic chosen by Blackdog Resources Ltd. that expects to com-plete a $13 million acquisition of two separate light oil properties from two vendors in Northern Alberta in October.

The Calgary-based junior oil and gas company that is focused on light oil production from southeast Saskatchewan and Alberta is purchasing the prop-erties in two different locations from a public and private seller.

The two Alberta properties currently produce between 260-275 barrels of oil equivalent per day.

“Blackdog is very pleased to have identified and negotiated deals on both of these high quality light oil properties,” said company president David Corcoran in a Sept. 3 announcement.

“The company believes that by assembling multiple producing light oil properties with reduced risk but additional running room for growth and excel-lent financial metrics, it will be able to attract required funding from financial institutions and investors and enhance shareholder value.

“The successful closing of these acquisitions would cause Blackdog to become a larger entity with higher rates of production, stronger cash flows and reserves and provide a clear roadmap for future growth.”

The first property is being acquired from a publicly-traded company that will give Blackdog a 25 to 50 per cent working interest in both operated and non-operated wells.

The oil produced at the first properties comes from the Granite Wash, Gilwood and Slave Point formations.

Blackdog said the oil from the property is high quality and demands prices very close to Edmonton Par pricing.

The company has identified multiple low-cost, low-risk re-entries into existing well bores where it expects to yield high returns for low capital invest-ment.

Blackdog will also acquire a six per cent, non-operated working interest in an emerging light oil play in northern Alberta from a private seller.

The full six per cent working interest covers over 300 sections of land, all facilities, and pipelines, seismic and other associated assets.

The production at this property is also high quality Gilwood oil that de-mands prices very close to Edmonton Par pricing.

The privately owned property currently has over a dozen producing wells, with all wells tied into pipelines for both oil and water shipping and disposal.

The property is fully electrified, resulting in very low operating costs. More than 30 possible future drilling locations have been identified by the operator.

Both acquisitions are subject to due diligence, financing, board approval by both parties and the completion of purchase and sale agreements, as well as approval by the TSX Venture Exchange.

Blackdog intends to announce the details of the proposed financing for the acquisitions shortly.

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Northern Saskatchewan - Jason Hugo (306) 551-8265

Southern Saskatchewan - Suzanna Nostadt (306) 861-2315

Tremcar West Inc. offers our customers a certified

repair shop with qualified workers specializing in:

• Tank Trailer Repair • PIVK B620 Inspections

• Auto Greasing • SGI Inspections

• Trouble Shooting ABS Systems

• Stock and Sell Parts • Leasing Available

• Titan Gauge Repair and Calibration

Suzanna Nostadt - Vice President (306) 861-2315

Bruce Palmer - Service Manager (306) 861-2841

Bill Hunter - Parts Manager (306) 842-6100

NEWLOCATION

#216-20th Ave SE

Weyburn, SK

(306) 842-6100

Crude Oil & Saltwater Transfers

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Access To Fresh Water Available

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Your Non-Destructive Testing Specialists

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• Digital Radiography

AM Inspection Ltd. places a high priority on safety and is committed to creating a safe work environment

for our employees, contractors, clients, and the communities we conduct business in.

501 Railway Avenue NCabri, Saskatchewan, S0N0J0,

1-800-667-6747AM.INSPECTION@SASKTEL.NET

AM Inspection’s services are available throughout

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By Geoff Lee

Revamp Industries in Edmonton is plugged into a growth market for their core design, build and install electrical packages for conven-tional hydraulic and diesel electric drilling rigs.

Sales are also on the rise for their turnkey electric packages for rig carriers, mud tanks, doghouses and rig retrofits, and equipment upgrades.

“We’re swamped. We are working on three rig packages at the same time right now,” said manager Jason Brown at the Edmonton office.

“It looks like we could have two more in by 2014 that’s going to bring a lot more projects.

“We’ve been working with our customers to give them the right price and the highest quality we can, so they come back.”

Orders are also coming in from rig operators who are upgrading their con-ventional rigs with electric top drives in order to stay competitive.

“It seems to be the trend that the oil companies want to see in the field. That’s the biggest change we’ve seen,” said Brown.

“With a more efficient top drive, they can drill the wells faster and more efficiently.”

A typical Revamp turnkey electrical package for a mechanical rig can cost up to $500,000 and up to $2 million for an electric rig as top drive technology leads the industry.

A top drive is a hydraulic or electric motor suspended in the derrick (mast) of a drilling rig, which rotates the drill string and bit to enable the drilling of the wellbore.

It is located at the  place and allows a vertical movement up and down the derrick.

This is different from the more conventional rotary table and kelly method of turning the drill string because it enables drilling to be done with three joint stands instead of single joints of pipe.

A top drive allows drillers to quickly engage and disengage pumps or the rotary while removing or restringing pipe.

Revamp’s electrical packages for conventional rigs include pipe handling equipment operated by a remote control unit.

“On pipe handling equipment, you have basically a high voltage panel which feeds a high voltage motor running a hydraulic system,” said Marc Bou-clin, operations manager.

“Then you have a separate control panel with low voltage which incorpo-rates a radio controlled unit. The rig personnel can operate the equipment via remote control from the drill floor.

“It’s a fully automated system, electric over hydraulic, on the catwalk unit.”Electric rigs require more complex control systems using programmable

logic controls (PLC) in the driller’s cabin where the driller can control all of the operations.

“He can pretty much control his whole rig from his control centre via PLCs and the drill console,” said Bouclin.

“The electric drilling rigs would have a full PLC control package.”Mechanical or conventional rigs, on the other hand, usually have a diesel

engine running all of the big loads, the pumps and the drawworks. An electric rig uses diesel generated power as well, but it has a large electric

AC motor driven by the variable frequency drive (VFD) to run the drawworks and the pumps and other equipment.

Revamp offers turnkey custom panel building for electric rigs, including power distribution, generator, PLC and motor starter controls.

“We do a full design build on the electrical package – all the motor control, all the placement of the equipment and the design of the panels,” said Brown, who is a Red Seal master electrician.

“We have a technologist on staff that does all the control drawings – any of the PLC programming and such.

“We do complete installation of all of our electrical equipment – mostly turnkey packages whereby the customer comes to us – we build the rig, and they basically turn the key and start drilling.”

Page B14

315A Kensington Ave., Estevan, SK

(306) 634-2835Fax (306) 634-2797

1730 Ebel Road, Weyburn, S4H 1V3Ph: (306) 842-5081 Fax: (306) 842-5309

www.apexdistribution.com

Harvey King & staff are eager to bring you the same quality service you have become accustomed to when dealing with:

HARVEY KING: Call 306-634-9888Owner/President

SALES: Call 306-634-7212

Page B13

Revamp’s design-build electrical packages include communication systems, expandable camera systems and ra-dio controlled hydraulic control systems.

Revamp does instal-lations on site utilizing three mobile workshops. They also have two service trucks, a shop where they build panels and a main office with limited workshop space.

“We are definitely looking to expand. We are looking at possibly

moving into a new, big-ger shop out in the Ni-sku area,” said Bouclin.

“I think we are go-ing to constantly expand as long as the demand is there.

“We are very ag-gressive. We are out looking for new cus-tomers all the time.

“We pride ourselves on quality work, work-ing closely with the customer to make sure both parties are happy at the end of the day and they have a rig that is working in the field and doesn’t require any

service.”Revamp is the

prime electrical con-tractor for two of the biggest drilling rig manufacturers in Western Canada where the oilfield economy is booming.

“It’s starting to boom even a little more,” said Brown.

“There’s talk about the fourth quarter being the quarter of the year, so we can see more cus-tomers coming our way or some more packages for our existing custom-ers.”

Revamp has nine employees on staff, including Brown and Bouclin, who own the business and juggle project management, customer relations and purchasing roles.

Their company also designs, builds and in-stalls specialized equip-ment and transformers and generates a steady flow of work recertify-ing drilling rigs with 1,000 days of operating time.

“They basically have to go over the complete rig and get it running back to the standards that it was when we built it originally,” said Brown.

“Right now, we are seeing rigs coming in from 2008 when they were built, and doing their recertifications.

“We do a little bit of service rig equipment as well. We are seeing a lot lighting retrofits out in the field to LED technology.

“Technology is changing all the time, especially in such a competitive industry like the drilling industry.

“There’s new tech-nologies come up and

you have to be the first to jump on them and get it out there.”

Revamp recently made a substantial sale of its solar pow-ered Rigcharge battery maintenance system in Australia.

The company is also

installing some demo units in the field to prove their ability to ex-tend the life of lead acid batteries with a constant trickle charge.

“We expect to see higher sales in the upcoming year,” said Brown.

#6 - 461 King St. • Estevan, SK

306-637-3460 www.lightstreamresources.com

Estevan, Goodwater – When grandma needs to warm up during a cold winter’ night, there’s nothing like a good, warm electric blanket to do the trick. That’s essentially what Industrial Electric & Instrumentation is doing with a new product it has just cooked up and is now deploying in the Weyburn Unit. This winter, hundreds of pressure transmitters are going to be toasty warm, with their own electric blankets.

The “Powerblanket” is a heated blanket meant for oilfield instrumentation applications. Originating from a client request, IEI co-designed and began car-rying the product for Western Canada. They worked with Salt Lake City-based Powerblanket for an oilfield application, creating a Class I, Division II certified product to be safe in that regard. They are also looking at Class I, Division I solu-tions.

The blankets can be used for items like transmitters, valves or actuators. “We can heat anything,” said Geoff White, IEI’s electrical general manager.When these instruments freeze up, the well could shut down, or in other

situations, not shut down when it is supposed to. A steamer truck often has to be brought in to deal with a frozen instrument.

The blanket is made of an insulated nylon cover, with an alloy to reflect heat. There is a heating element as well, but how it works is proprietary. These blankets can be customized for certain applications. In their commercial applications, Powerblanket makes drum, bucket, pipe, tote and other sundry warmers.

The conventional way of fighting instrumentation freeze-up is through heat trace wires and insulation. However, when maintenance is done, these must be stripped off and re-installed.

White pointed out, “It never goes back on the same.”IEI worked with Powerblanket to come up with an oilfield solution. White

noted testing was done last year for the oilfield design for the blanket, and some modifications were made.

As demonstrated by IEI lead electrician Bryce Siwy in the Weyburn field, it takes mere seconds to put on or take off a Powerblanket from a pressure trans-mitter. Often there are two of these transmitters on a well, and as with any oil-field tool, they require maintenance. Simply pull off the hook-and-loop fastener covers, and off it comes. There’s even a circular sight hole and cover to inspect the instrument’s display.

That doesn’t mean the entire installation process is that simple, however. Most wells aren’t set up for the 120-volt power the Powerblanket requires. There-fore a 480-volt to 120 volt transformer and secondary panel must be installed, along with a GFI breaker. A plug-in stand must be put in near the wellhead. All of this must be done to explosion-proof standards.

“Any well with pressure transmitters could benefit,” Siwy said. “It’s a patented solution, the first of its kind,” said Richard Henning, IEI’s

general manager for instrumentation, adding has been two years in the making.

• We have units that have been operating for over 50 years and still pumping (Only Sentry & one other supplier can make that Statement)• In southwest Manitoba near Wascada you can fi nd a number of model 57 Sentry designed pumping units that were built in 1966 and 47 years later these units are still pumping.• SX 4 Model Pump Jack is the best built inventoried pump jack available in the industry. Four year warranty on parts and labour SIX year Warranty on the Structure• SX 10 Model Pump Jack is special order and is the best built Pump Jack in the world; this unit comes with a Four year warranty on parts and labour SIX year

Warranty on the Structure and a Ten year warranty on the Gearbox.• Units shipped to the customer partially assembled (faster set-up time)• Low Speed Wiper factory installed in every gearbox allowing the customer to run the unit at 1 SPM.• You will only pay for the counter weights required to reach your required ECB• The industry’s most inclusive warranty• .004% warranty claims industry standard is 3%• VFD’s and Pump off controllers• Certifi ed Sentry Installers • Competitive Prices • Save your money energy savings in gearbox

THE SENTRY ADVANTAGERather than sell you a pumping unit and walking away, Sentry offers our customers a complete service package. Coordinating all transportation and set up, our professional crews will drive piles, set the concrete base, and the pump jack. Your artifi cial lift is then balanced when set and commissioned, and ready to run per your well parameters.

Sentry International Inc. Artifi cial Lift Systems

1150, 444-5th Ave. SW.Calgary, Alberta T2P2T8

P: 403-775-7077 F: 403-775-7428

Estevan SK. 306-421-4353Nisku, AB. 780-955-8806

Rentals Ltd.

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306-634-1025NORM: 306-421-0550 | CHRIS: 306-421-3443

HWY. 39 WEST, ESTEVAN

Story and photos by Geoff LeeKerrobert – An oilfield work boom is going viral in the Kerrobert region,

with no cure in sight.The symptoms are constant phone ringing, hand wringing, and excited talk

about employee and housing shortages in the area where oilfield and construc-tion work is booming.

Rev Energy Services Ltd.’s welding shop has caught the bug that fired up supervisor Darcy Weber to talk about it in late August as the virus spreads.

“Unreal. It’s just unbelievable right now. It’s so hard to find welders nowa-days too. They are in high demand right now,” he said, with his cellphone frequently buzzing.

“We have to pull them out of Alberta, Manitoba – we’re pulling welders out of everywhere to get the job done.”

The demand for Rev Energy’s piping and structural fabrication and hydro testing work in the shop and in the field continues to ratchet up as their busiest fall season arrives.

The shop is already working flat out, fabricating platforms, stairs and struc-tural steel work for overhead cranes among other jobs.

“It is very busy. I can’t believe it, we’re crazy right now,” said Weber.“I can’t imagine what it’s going to be in a month or two here, because like I

said, trying to find welders is just insane right now.”Fortunately, the welding shop has two mobile trucks and has a force of

about nine contract welders to share the workload with four employee welders including two pressure welders based at the shop.

“We hire on contract welders and do whatever we can do from there,” said Weber who is responsible for scheduling, quality control and ensuring his employees work safely in these heady times.

“I’ve been working for Rev for about three years now, and it’s been non-stop for me and that’s not the way it usually goes,” he said.

“The last few years have just been crazy. By the look of it, the next three years are going to be the exact same way, if not worse.”

Page B18

Phone: (780) 875-0032 • Cell: (780) 214-7808 Fax: (780) 808-2273 • Email: greg@suretuf.com

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Free standing, zero ground disturbance • Slide in legs and pin together systemNo bolted legs or panels • Available in 25”, 36” & 44” heights Quickest to assemble and re-locate • No gaskets or caulking required • Top mount liner

Accessories: Sting Doors • crossover stairs • Walk through DoorGeotextile • All type & sizes of liner available. Fire retardant coating available(C.O.R Certifi ed set up crews are available)

WE WILL BUILD TO SUIT OUR CUSTOMER NEEDS • OILFIELD • MINING • AGRICULTURE • WE DO IT ALL!

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Suretuf containment packages are a patented (patent #2362105) and P. Eng. certifi ed design. Suretuf containment packages meet or exceed all D-055 (Alberta) and S-O1 (Saskatchewan) secondary containment requirements. Suretuf has been manufacturing containment packages for over 15 years. All package components past and present are compatible with one another – no dead stock.

The light weight easy to handle drop pin connecting panels with new single slide in leg design do not require nuts and bolts for assembly providing safe, quick and easy installation or complete package relocation without special tools. Further the slide in leg design allows the entire containment system to fl oat with ground heaving while maintaining wall integrity. Suretuf containment packages are a zero ground disturbance system.

No caulking or gaskets required to attach the liner to the containment wall or to attach the walls together. The top mount liner with square top cap eliminates sharp hazardous edges providing greater safety when working near or around the wall.

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Page B17Welding and

fabrication go hand in hand with Rev Energy’s core oilfield construc-tion, maintenance and internal and external coatings services.

“Without the welding, we probably wouldn’t get a lot of these jobs. Welding is a big part of what we do right now,” said Weber.

“We do ‘fabing’ anywhere the customer needs it. We’re out there and we are willing to do anything that has to be done to get the job done.”

Weber said being

diversified gives Rev Energy a competi-tive advantage when it comes to project bid-ding.

“It’s really hard to bid a job only getting part of the job. Nobody wants just parts – they want it all done in one stop, in one day,” he stressed.

He said company owners Barry Schreiber and Brian Burgardt are doing a good job of providing a wide range of oilfield services that require fabrication.

“That’s the whole plan – to have a little bit of everything, and we can service pretty much anyone around this area,” he said.

Weber is stoked by the news that TORQ

Transloading Inc. plans to construct a $100 million rail terminal near Kerrobert, but he doesn’t know how he’ll find more welders if his shop secures some of the fabrication work.

“I don’t know if we can even handle that – to try to find men right now is just unbelievable, “he said.

“We’re pulling guys out of B.C. – we’re pull-ing guys out of Alberta; we’re pulling guys from everywhere.

“We’re trying to make the customers as happy as possible. We don’t just work for one oilfield company. We’ve got like eight or nine that we are working for at this time.

Page B19

... ON THE MARK WITH TARGET

Page B18“We’ve probably picked up four times from last year.”Weber said the fight for welders and experienced hands isn’t getting any

easier with the ongoing construction of the $23 million Kerrobert and District Integrated Health Centre.

“There’s too much competition out there, but again, to try and find a hotel around here in Kindersley or Coleville – anywhere – my kids are all living at my place since they can’t find a place to live,” he said.

“It’s insane. What is out there is costing them a fortune to have.”Weber said the boom is great for Kerrobert and Coleville, where he lives,

but trying to find accommodations for new workers is tough sledding.“Whatever room you have in your house, they’re using them up – it’s al-

ways good to have the work coming in. “Some days you don’t want to get out of bed, but the next day you have to

get back in there because it just keeps the company rolling.”The Rev Energy welding shop is strengthening its position in the market

by working toward becoming a Canadian Welding Board or CWB certified shop.

CWB certification helps a company establish and maintain well defined processes that save time and control costs.

“We are just on the verge right now of getting CWB certified. It takes a little bit of time,” said Weber.

“We have welders that are CWB certified already, but our shop has to be to make everything work out properly.”

The Rev Energy welding shop currently has a solid quality control program for manufacturing and repairing pressure piping and vessels for carbon and stainless steel welding.

Their quality control manuals are registered in Saskatchewan and Alberta, where most of their fabrication work is conducted.

Fabrication is based out of two separate shops, but the plan is to eventu-ally relocate to the site of their new facility that fronts Highway 21, and houses their construction and coatings divisions.

The welding shop has been providing some pipe support for Rev Energy’s civil construction crews who began work weeks ago to replace water mains along Pacific Avenue, the Highway 51 thoroughfare through Kerrobert.

Heavy oilfield traffic rumbles through that route hourly as a part of the busy Lloydminster to Kindersley oil transportation corridor that Weber said is helping communities out.

“As you can see, we are rebuilding streets – there’s houses are getting built all over the place.

“Everything is just booming right now. It’s a great thing,” he said.

• Oil, water and gravel hauling rig-ups• Castrol Oil dealer for oil changes

• All general maintenance on semi’s• Brakes, drivelines, wiring and accessories

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Plainsman Manufacturing Inc. has been supplying the Saskatchewan Oil & Gas market for the past 47 years. Plainsman supplies blowout preventers, stuffi ng boxes, back pressure regulators, fl ow tees, rod rotators and much more. Our Inside Sales team is available to process any of your requests or contact our Saskatchewan Sales Representative Tonya at tmokelki@plainsmanmfg.com.

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By Geoff LeeUnity – TORQ Transloading Inc. will be the only one of three crude-by-rail companies in Unity tied into

Canadian National and Canadian Pacific rail networks this fall when facility expansion is complete.TORQ’s competitors Altex Energy and Savage currently operate exclusively on respective CN and CP

mainline tracks in town.“Our primary objectives are providing our customers efficiency through scale, supporting our local crude oil

producers with the ultimate in downstream market flexibility and access to premium prices for their products,” said TORQ Transloading chief executive, Jarrett Zielinski.

The expansion of the Unity Rail Terminal announced on Aug. 20 will provide TORQ and its crude-by-rail customers with dual access to both of CN and CP rail networks.

“Unity, Saskatchewan is a strategic geographic location for TORQ and our customers, given the nature of the heavy crude oil production in this area and its proximity to end user destinations,” said Zielinski.

TORQ’s expansion on land leased from North West Terminal currently served by CN will tie into the CP line about one kilometre to the north.

CN and CP crews have been working on the project for several months.“The municipality is excited about it. Not just for what it means today but for the future of the commu-

nity,” said Unity’s economic development officer, Carey Baker.The expansion will include storage tanks and multiple additional tracks that will triple heavy crude ship-

ments from 40 cars per day to unit trains of up to 120 cars.The segregated operational storage component of the expansion is being phased in, based on customer

demand and will be similar to what Altex and Savage offer on their sites.TORQ’s rail terminal will promote larger, more efficient movements of crude-by-rail and enable customers

to purchase crude oil storage and participate in diluent backhaul opportunities. The company’s expansion in Unity comes a year and half after they signed a long-term lease with North

West Terminal to build and operate a transloading facility.News of the expansion and tie-in to CP rail came a week after TORQ reported they plan to build a $100

million crude-by-rail facility near Kerrobert about 60 kilometres south of Unity.Baker said there’s no doubt his town is transforming into a major transportation hub with crude-by-rail

leading the charge.“It’s a game changer for the face of not just oil, but rail transportation when they started in Unity a year

and a half ago,” he said.“I don’t think the companies even didn’t realize it would balloon to what it is today.“TORQ’s expansion is definitely going to add to our reputation,” he added.“The size of their expansion is quite significant. I know it will mean more truck traffic through our com-

munity which will contribute to many of our businesses.“There is going to be a need for more employment which will also add to our local economy.”Baker said the TORQ expansion and the operation of Altex and Savage crude-by-rail facilities have helped

the town to appreciate the importance of having both rail companies in town.“CP and CN are both a huge part of our community,” said Baker.“I don’t think it’s something the town and the residents realized until these past recent years when grain

terminals were built.“Much of the reason why Unity has thrived is because of rail infrastructure. The hotels and restaurants re-

ally have benefited from the employees of CP and CN.“They have also contributed to our recreational and cultural infrastructure by donating money and grants.

It’s a huge part of the community that in the past we haven’t truly understood or recognized.”

Kenworth Lloydminster - A Division Of Edmonton Kenworth Ltd.6101 - 63 Avenue, Lloydminster, AB T9V 3C1

Tel: (780) 871-0950 Fax: (780) 871-0926

Oilfi eld Picker TruckEquipped with: Full Tilt Standard Deck Package with Fassi 95 Knuckleboom Crane, Paccar PX6 300 HP Engine, Allison Automatic Rugged duty Transmission, Hydraulic Brakes - No air endorsement needed, 8K Rated front axle and 13.5K rear limited slip axle rated at 11.5K, 13.5K Rated rear taperleaf spring Suspension, 9-7/8” x 1/4” Frame Rails, Removeable front tow hooks, 90 gallon fuel capacity, Air Tilt, Cruise, am/fm/CD Radio, Electric powered RH and manual LH windows, Power locks, Heated Mirrors, High back vinyl air suspension drivers seat and high back vinyl passenger toolbox seat. Stk# 956327

Equipped with: Full Tilt Standard Deck Package with Fassi F155 Knuckleboom Crane, Paccar PX7 300 HP Engine, Allison Automatic Rugged Duty Transmission, Hydraulic Brakes - No Air Endorsement Required, 12k Rated Front Axle and Taperleaf Suspension, 21K Rated Rear Axle and Air Suspension, 11R22.5 Tires - 16 ply , 10 5/8” x 5/16” Frame Rails, Removable tow hooks in front bumper, 56 Gallon capacity Fuel Tank, Air, Tilt / Telescopic Steering Wheel, Cruise, AM/FM Radio, Power Locks and Powered passenger Window, Vinyl Highback Air Suspension Drivers and Passengers Seats, Projector Style Halogen Headlamps. Stk# 966496

Equipped with:On-Trux Roll-off Kit with Retractable Stinger (Galvanized Version) comes with Wireless 8 button controls, Paccar PX6 - 280 HP Engine, Allison Automatic Rugged Duty Transmission, Hydraulic Brakes - No Air Endorsement Required, 8K Rated Front Axle and Taperleaf Suspension, 13.5K Axle Rated at 11.5K, 13.5K Rated Taperleaf Rear Suspension, 9 7/8” x 1/4” Frame Rails, Removable tow hooks in front bumper, 45 Gallon capacity Fuel Tank, Air, Tilt Steering, Cruise, AM/FM Radio, Power Windows and Locks, Kenworth Aero Heated Mirrors, Integral Convex Heated Mirrors, High Back Cloth Air Cushion Seat with Passenger 2 man Cloth Bench, Projector Style Halogen Headlamps. Stk# 956216

2014 Kenworth T370 Oilfi eld Picker Truck

2012 Kenworth T170 Roll-off Truck

With Landscaping Box

2012 Kenworth T170

2014 Kenworth W900B Cude HaulerEquipped with Full Throttle - Berkley Product pump and air valve controls. Magnum checkerplate 1/2 fenders, Roda positive air shutdown with revguard, Cummins 525 HP engine, Eaton Ultrashift manual 18 speed transmission, 13/2 K Front Widetrack axle with 13.2K Taperleaf Spring Suspension, 46 K Dual heavy wall dana spicer axles with Kenworth AG460 Air Suspension, Full lock-up, 11R24.5” Bridgestone tires and Polished aluminum wheels, 10-3/4” x 3/8” Steel Frame, Holland No-Lube air fi fth wheel, Center mount tow pin, dual fuel tanks - 240 gallon capacity with 7’ HD Straps, Air, Tilt / telescopic steering column, Cruise, Navplus (Includes: Navigation, Bluetooth, Sirius and Diagnostics), Kenworth Premium Diamond Interior package, Sears Ultraleather Seating with air suspension, Espar bunk heater, Cobra, power windows and door locks, Dual lighted and heated mirror and stainless steel sunvisor. Stk# 967452

2014 Kenworth T370 Daycab Mechanics Body Spec ChassisFull Tilt Dominator II Mechanics body with sliding roof and barn doors, interior lights, front and rear work lights, beacon 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. Stk# 964376

2014 Kenworth T800 with 38” Sleeper - Equipped with Full Throttle - T&E Outboard Hydraulic Drive Product pump. 1/2 fenders, Roda positive air shutdown with revguard, Cummins 500 HP engine, Eaton stainless steel manual 18 speed transmission, 13.2K Front axle with 13.2K front axle with 13.2K Taperleaf Spring Suspension, 46 K Dual wall dana spicer axles with Kenworth AG460 Air Suspension, Full lock-up, 11R22.5” Bridgestone Tires and Polished aluminum wheels, 10-3/4” x 3/8” Steel Frame, Holland air fi fth wheel, Center mount tow pin, Dual fuel tanks - 200 gallon capacity, Air, Tilt / telescopic steering column, Cruise, AM/FM/CD/Radio, Bluetooth, Kenworth Splendor Interior Package, Kenworth High Back Cloth Drivers Seat with air suspension, Passenger seat high back cloth with toolbox, Cobra, power door locks, Dual lighted and heated mirror and stainless steel sunvisor. Stk# 969085

2014 Kenworth T800 Crude Hauler

NuWaveIndustries Inc.

An Innovation in Safe, Clean Well Abandonment

THE NUWAVE SYSTEMThe typical cut-and-cap procedure involves excavating a deep, wide, sloped hole around the wellhead. The cutting process is time-consuming and labour-intensive, using a welding torch to cut casings and breaking up lining cement by hand.

NuWave’s innovative technology features an abrasive water jet cutting tool that is lowered into the well casing and cuts from the inside, slicing through layers of steel and cement with incredible speed. Then the entire casing is pulled right out of the ground, leaving only a small hole. Our ERCB-approved vented cap is compression-fi t to the casing strings, the hole is backfi lled, and the job is complete, with minimal ground disturbance.

SAVE TIME, EQUIPMENT , AND MONEYDepending on the number of layers of casings and cement, NuWave’s cutting process takes from 20 minutes to an hour. The traditional excavation cut-and-cap method, in many cases, is a full-day job for a single well; in that same day’s time, NuWave can complete six abandonments.

NuWave’s technology is mobile and portable. It can be used on any terrain, in any temperature. The system is ideal for use in wet muskeg conditions that would otherwise require a hydrovac to dry out the well hole. Saving on time, manpower, and resources all translates to saving big money!

SAFETY BENEFITSThe part of the NuWave innovation we’re most proud of is the dramatic increase in safety. For starters, you’re not putting a man down a pit— that eliminates all kinds of potential injuries right there. There’s no exposure to harmful gases or chemicals.

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By Geoff Lee

Vermilion, Alta. – Instrument technician apprenticeship training is on the rise this year at Lakeland College in Vermilion as the demand for trades ratch-ets up in the oilfield.

“We can’t get enough trades. There’s jobs everywhere. It’s just a matter of how far you want to travel,” said John Klatt, co-chair of trades and technology.

A competitive job market is also making it tough for the campus to hire qualified staff to teach a new third-year level of the four-year instrument tech-nician program that is being offered next spring.

“We are having trouble attracting staff. We are short two technicians right now. That might have a bearing on our third year offering,” said Bert Samuel-son, dean of trades and technology.

That class could be cancelled if instructors can’t be found.“We are working with industry – we are working with Cenovus and going

to some local areas to see if we can get some industry support as well, not so much in finances, but in manpower. We’re looking,” said Samuelson.

“It’s the tight job market more than anything. They are in high demand, that’s why our numbers are going up.”

The first second-year instrumentation course being offered from Sept. 4 to Oct. 26 is full and the next class for first year apprentices from Oct. 29 to Dec. 21 is full.

Lakeland’s 16-week pre-employment instrument technician fall course is also full with 18 students and a waiting list.

“We’re the only institution in Alberta that offers the pre-employment instrumentation,” said Eileen Arthur, business industry development co-ordi-nator.

“We’re seeing students from Calgary and way up north attending. We’ve got people from high school to right off the street.”

The pre-employment certificate includes a four week work placement with industry.

Page B24

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Page B23Instrumentation technicians are in high demand in the heavy oil industry,

where they install, maintain and repair a wide variety of pneumatic, electronic and microcomputer instruments.

“The whole idea of instrumentation is process control,” said Klatt.“This whole area being oil and gas – all of the plants and gas wells use that

process control. The trade itself is geared for discipline in that. “If you look at Fort McMurray and big projects like Suncor’s – the people

they want to work in their control rooms are instrumentation techs, because they do understand the process.

“They know how the plant works; they understand the reading of the gauges that a lot of other people can’t.”

Instruments are used in the industry to measure and control variables such as pressure, flow, temperature, level, motion, force and chemical composition.

“In oil and gas, of course, there are a lot of wells. As the technology has gotten better, one of the things that a lot of companies like to do, is to measure what they are actually getting,” said Klatt.

“Instrument techs will come in and maybe they have a new gas well they set up – measurement devices to actually read how much gas is coming out of the well and what the composition of the gas is – those kinds of things.

“It’s the same for plants. It’s all measurement and optimization.”Electrical theory and know-how is also becoming a bigger part of the

instrument tech trade, with more instruments being powered by electricity.

“Because of government regulations, you almost need your electrical ticket in order to be able to work alone in some of the provinces,” said second-year instructor and electrician Todd Cemulini.

“If you have to disconnect a device that is over 24 volts, you need an elec-trician to disconnect it.”

That’s the route that Corey Alexus is taking as a journeyman electrician who is apprenticing as an instrument technician with Pyramid Corporation while working at a steam-assisted gravity drainage (SAGD) facility in Fort McMurray.

“I got into instrumentation because I enjoy how things work because of the extra things we do electrically installing all these transmitters and valves electrically,” said Alexus who commutes to campus and Fort Mac from Lloyd-minster.

“It’s nice to know pneumatically how they work and what kinds of loops are integrated into the system.

“Therefore, I understand what is all going on and maybe some of the safety things that come into play when I am working in the field.”

The second-year class at Lakeland deals with temperature measurement and process control theory which will help Alexus maintain equipment relating to co-gen and steam generating processes.

“I generally work on a lot of level transmitters and pressure transfer switches and vibration probes and all that stuff for motors,” he said.

Page B25

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Page B24“I also do a little of construction such as tubing and repairs and trouble-

shooting. It’s a really good site as far as variety – they have a lot of different brands and valves and stuff – I work on them too.”

Lakeland’s instrument training includes lab time with hands-on learning. That appeals to Alex Van Der Meutter, an apprentice with Noralta Technolo-gies in Provost.

“The program is really good. I really like it here. It’s nice hands-on and we have close access to our instructors. They are very willing to help us out after hours,” he said.

The opportunity to work with his hands and think on his feet is what drew him into instrumentation after working for another company as a well operator.

“That was something that interested me, and I threw an application in with Noralta and they accepted it,” he said.

“Right now as an apprentice, I generally go around and do some calibra-tions and checks throughout the facilities that we have.

“I run around with the journeymen, and at times I will be sent out on my

own to do these checks. Mostly it’s checking oil battery facilities.“We work for mainly Harvest, Husky and some smaller companies that we

also deal with.”Keeping up with evolving technology is a part of the job as instruments

and processes become more automated all the time.“It seems to be going from standard wired devices to wireless devices. It’s

getting more and more integrated all the time,” said Cemulini.“The manufacturers want to take advantage of more new technology all the

time. It keeps moving ahead. It’s a lot more digital and electronic.”Lakeland is hoping industry will step forward to donate needed equipment

and training aids for its labs as enrolment rises.“We need more of everything,” said Samuelson with a laugh.“We are trying to make contact with some of our local industry and indus-

try techs to see what kind of support we can get from them.“That support could be in some used equipment or maybe some time from

some of their staff to help us build it. We are not sure what we are going to get, but we are doing a little asking.”

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By Geoff LeeParadise Hill – Farming and oil and gas make the world go around for the

515 residents of the village of Paradise Hill located on busy Highway 3 about 64 kilometres northeast of Lloydminster.

Area wheat farmers are celebrating a bumper fall crop and most businesses are thriving from an active oil and gas sector.

Novlan Bros. Sales has recently been experiencing the best of both worlds with record sales and service business at their Ford and New Holland dealer-ships.

“The oil industry is doing quite well and the farming has been really good to us to the last couple of years,” said Randy Novlan, sales manager.

“There’s record crops out there, so everyone is in a hurry to get it off before the fall ends.

“That’s huge. It will put a lot of money into farmers’ pockets and hopefully, they will upgrade.

“Combine sales are great. Machinery sales have been good for the last couple of years.”

Page B28

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Page B27Ford pickup sales

and service are also exceptionally strong and keeping pace with the oil and gas activity in the area.

Husky continues to ramp up production at its 3,000 barrels per day Paradise Hill thermal project to the north, while construction of the 3,500 bpd Sandall thermal facility south of the village in nearly complete.

“I had probably had one of my best years in pickup sales last year and again this year has been very, very strong,” said Novlan.

“We’ve got a lot of oil activity both north and south of town – a couple of SAGD plants plus a bunch of oil drill-ing.

“So everything looks quite positive for us. We’ve been doing lots of sales and servic-ing is very strong. In the last three years, I’ve added three techs – we can’t keep up.

“I don’t see any rea-son for it to slow down. You never know what the price will do, I guess.

“It looks like we are getting great returns on our investment on the farming end of things. That should carry on to next spring.”

The strong farm-ing and energy sectors have also filled up the local hotel, the village campground and put the squeeze on available housing.

“There’s been lots of activity, especially with those two big Husky projects. It’s been busy,” said Marion Hougham, village administrator.

“There’s a lot of truck traffic around here.

“Rental occupancy in town is non-existent. You can’t find a place to stay in town. It seems to be the same in the sur-rounding area.”

The construction of a much needed 12-unit rental townhouse by a private developer is one of several housing proj-ects in stall mode while the community amends its zoning bylaws.

“Right now, there’s zoning issues on the property. They demol-

ished the old properties and got that far. I am hoping the development resumes next spring,” said Hougham.

“We are in the pro-cess of revamping our zoning bylaw. It’s taking a lot longer than we ever dreamt that it would.”

The townhouse sits on commercially zoned land that needs to be-come residential.

Similarly, a 12-lot subdivision purchased by the Village within the RM of Frenchman Butte must be rezoned from agricultural to residential before sod can be turned.

“We are in the de-sign stages of that, and it is also being held up because of zoning ap-provals,” said Hougham.

The 89 page zon-ing bylaw amendment has been in the works for two years, but ap-proval of final changes is expected this year from the Saskatchewan Association of Rural Municipalities.

“It has been a major challenge. It’s very time consuming. It’s been a long road,” said Hougham.

The existing bylaws are outdated and must comply with the Plan-ning and Development Act.

The Village has also prepared a new official community plan that is waiting for approval.

The plan will help regulate the develop-ment of residential, commercial and indus-trial land for years to come.

Page B29

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Page B28Construction is

underway on a new two unit condo in town adjacent to the camp-ground.

The housing crunch made the local camp-ground a popular spot for oilfield workers and one of Novlan’s new workers over the sum-mer.

Novlan has lucked out with a rental house to accommodate four new Filipino mechanics to help keep up with the workload at his service shops.

“Definitely more people would be mov-ing here if we had more housing,” said Novlan.

Young families have been drawn to the community in recent years with strong and consistent enrolment at the K-12 Paradise Hill School.

“I attribute to that to the oil and gas and farming activity around here,” said Hougham.

“There’s a lot of young families in agri-culture. A lot of them are dual income. They are running the farm, but have income out of the oilpatch.”

Hougham’s hus-band, Tom, and his brother Ken operate Y Coulee Land and Cattle and fit the dual income profile. They have two lease operated fluid hauling trucks working for Paradise Oilfield Services.

“It’s hard to make a

living just strictly farm-ing – if you are starting out. The oilfield has certainly created a lot of opportunity for the agriculture sector,” said Hougham.

Novlan runs into the dual income cus-tomer at his business all the time and he hope the good times continue to roll with oil and gas jobs.

“We live in a good part of the country. We’re pretty lucky. A lot of our younger farmers have gone that route and it helps pay the bills,” said Novlan.

“It makes sense to them and it works out quite well – double revenue there.

“Everybody’s busy. The school is doing well. We are building a new hall. It’s going to cost a lot of money, but there is money in the area and people are supporting it.”

The community hall is a $4 million project that will be constructed next spring thanks to $2 million in local fund-raising, and the balance to be loaned by the RM.

“It’s a lot of money for a community of our size,” said Hougham.

“We were hoping to tender this fall, but it’s looking like it’s going to be in the spring.”

The school division is still working on last minute design details and approvals.

The 18,000 square foot hall will provide

a new multi-purpose addition to the school and include a 20 child daycare, a gym, a com-mercial kitchen and conference and music rooms.

Hundreds of coun-try music fans poured into the village in early August for the annual Summer Bash major fundraiser that added $75,000 to the pot.

Country star George Canyon head-lined this year’s show, with the Nitty Gritty Dirt Band on tap next summer.

We would also like to acknowledge the support of our volunteers and their companies who encourage industry engagement:

Mark Bacon (Nalco Champion)Denis Blaquiere (NOV)Dustin Fallscheer (BAR Engineering)Hart Golbeck (Alberta Innovates - Technology Futures)Glen Martinka (NOV)Mike McIntosh (Weatherford)Joseph Simon (Northern Blizzard Resources)Shauna Watson (Weatherford)

2013 President’s AwardWe are pleased to announce that the Lloydminster Society of Petroleum Engineers (SPE) section has received the 2013 President’s Award for Section Excellence. Lloydminster was selected as one of the nine winners of this global award.

The President’s Award for Section Excellence recognizes SPE sections who display exemplary efforts in technology dissemination, section operations, member benefi ts, society and community benefi ts, and innovation.

The Lloydminster SPE Board would like to thank all of our sponsors for their generous support in helping us achieve this recognition within our industry.

By Geoff LeeVermilion – Vermilion is experiencing an economic boom with the con-

struction start-up of two major pipeline projects transporting heavy oil pro-duced from the Cold Lake area to storage facilities in Hardisty.

Midwest Pipelines Inc. has set up a 150-person camp at Lakeland College in order to house the crews who are constructing the twinned southern section of Enbridge Inc.’s $1.2 billion Athabasca crude oil pipeline.

Work began on spread 3 on Aug. 14 and will wrap up with hydro testing in mid November.

“We are encountering some delays due to bird nesting habitat that seems to have increased with local heavy rainfall,” said Enbridge spokesperson Gra-ham White on Sept. 16.

“Drier weather of late is conducive to crews accelerating daily productivity so we can still meet our stated schedule.”

Midwest currently has 200 employees at the project with up to 500 antici-pated at peak.

Crews are also being housed in travel trailers, hotels, motel and local resi-dences.

Inter Pipeline also has crews working in the area on the $100 million expansion of its Cold Lake pipeline system to Hardisty. New pipelines, pump stations and associated infrastructure are also in the works.

The Cold Lake expansion involves the construction of a 240-kilometre 42- inch pipeline and associated pumping and metering facilities from La Corey to Hardisty.

The project will provide an additional 550,000 barrels per day of mainline capacity that could be increased to approximately 1.2 million bpd by building additional pumping stations.

Inter Pipeline was to hold a series of public information meetings in Hardisty, Vermilion and Bonnyville from Sept. 24-26 to explain the scope and economic benefits of the project to Vermilion.

Hotel room rentals are already tight with the resumption of classes at the Vermilion campus.

Local restaurants, private room renters and food caterers are having a field day with pipeline crews in town.

“I would say it has had a huge impact on our economy,” said Mary Lee Prior, Vermilion’s economic development co-ordinator.

“I know we’ve had people coming through that can’t get hotels.

“Lakeland College cleared some space and allowed them to set up camp, which is good for the college and good for the town,” said Prior.

The Midwest contractor camp is located on Harcus Road, south of the Vermilion Campus, and crews are expected to be at the site until mid-Novem-ber.

“When you have a camp like that, they are accessing our fuel services and our catering services for lunches and that type of thing,” said Prior.

“I think it’s a good benefit to Vermilion.” Page B32

www.kelro.com

Page B31The new Athabasca pipeline will add 450,000

barrels per day of capacity between Kirby Lake in the Athabasca oilsands to Hardisty. There is also low-cost expansion potential to 800,000 bpd.

The line is expected to be capable of accepting initial volumes by early 2015, with its full initial capacity available by 2016.

Construction crew are expected to rotate in and out of Vermilion for the next two or three years for both projects.

The new Athabasca pipeline line will include approximately 345 kilometres of 36-inch pipeline largely within the existing pipeline right-of-way.

The pipeline will generally follow the existing Athabasca pipeline starting at Enbridge’s Kirby Lake terminal near Winifred Lake and ending at the Battle River terminal in Hardisty.

The pipeline route runs about seven kilometres west of Vermilion on Highway 16 between Vermil-ion and Mannville.

Some of the 36-inch pipe is stockpiled in a field south of Highway 16 near the pipeline route.

The new line is designed to accommodate the need for additional capacity to serve Kirby area oilsands growth, beyond the expansion of the exist-ing 30-inch pipeline to its maximum capacity of 570,000 bpd, which was announced in the fall of 2010.

Transferring existing Kirby area volumes to the new 36-inch line from the existing 30-inch line will also free up the latter to accommodate additional long-haul volumes originating from the Cheecham or Athabasca terminals further upstream on the Athabasca system.

This project is a significant part of Enbridge’s overall plan to provide capacity for rapidly grow-ing production from the Kirby area as well as from growth projects further north in the Athabasca region.

According to Enbridge’s original project an-nouncement made in September 2011, the project is expected to create about 545 person years of employment in building the twin line.

The project will include the construction of new pump stations at the existing Kirby Lake and Bonnyville stations.

The pipeline will also generate tax revenues for communities along the route.

Vermilion is poised for continued growth as oilfield activity and traffic pick up along the busy Highway 16 and Highway 41 corridors.

“Last year we had a bit of seismic to the north of us. There are several exploration companies doing drilling around us towards the west to Mannville and north of us as well,” said Prior.

“We are one of the main routes that goes north and connects to Fort Mac. We have the benefit of being on the intersection of Highways 16 and 41.”

The Town is now pre-selling new commercial lots in a prime 37-acre site they purchased recently for approximately $30,000 an acre.

“It just opened up a week and a half ago. We are going to be our own developer,” said Prior on Sept. 13.

The land is located on the east side of High-way 41 between the Highway 16 overpass and Tim Hortons.

Council planned to announce lots prices and possibly a new hotel development for the site at its Sept. 17 meeting.

The Town is also selling 21 one-acre lots for $170,000 for medium to heavy industrial uses in a new Yellowhead Business District. Servicing is to precede any site construction.

The lots are located south of the local vet clinic with a view of Highway 16.

There are also eight new one-acre serviced lots for sale beginning at $340,000 in a new East Point Business Park adjacent to the Vermilion airport. The East Point lots are zoned for light industrial development.

By Geoff LeeCalgary – Trans-

Canada Corporation’s proposed $12 billion Energy East oil pipeline could create thousands of jobs over a six year development and con-struction phase.

Most of the jobs over that period will go to Quebec with 3,601 and Ontario with 2,271.

In Saskatchewan, the project could gener-ate 683 jobs and 1,542 in Alberta during the two stages, according to an economic analysis by Deloitte and Touche and released by TransCanada on Sept. 10.

Deloitte estimates the project will generate $10 billion in GDP for Canada during develop-ment and construction, with $577 million of that in Saskatchewan and $1.7 billion in Alberta.

The report includes a breakdown of the jobs, economic growth and tax revenue benefits for the six provinces along the pipeline route

The economic study estimates 2,300 jobs will be created nationally during the three year development period and 7,700 during the three year construction phase.

There could also be an additional 1,087 jobs created during the 40-year operation of the pipeline, with 94 of those jobs in Saskatche-wan and 418 in Alberta.

Energy East would also generate an addi-tional $10 billion in tax revenues for all levels of government over the life of the project including $821 million in Sas-katchewan and $2.19 billion in Alberta.

The project is expected to generate an additional $25.3 billion in provincial GDP over the operations phase with $1.9 billion in Saskatchewan and $6.1 billion in Alberta.

“With this new

study we now have an objective and a tangible understanding of the full economic benefits that the communities across this country will receive that are directly related to its construction and operation,” said Trans-Canada president Russ Girling during a news conference in Frederic-ton, New Brunswick.

Deloitte used Sta-tistics Canada’s input and output model which measures direct, indirect, and induced economic effects of large industrial projects in Canada such as Energy East.

“Energy East is a critical infrastructure project for all Canadians because it will enhance our country’s energy se-curity, allow us to receive greater value for our im-portant natural resources and will create tangible economic benefits for communities across the country,” said Girling.

Deloitte projects Saskatchewan would gain a total of 1,935 di-rect, indirect and spinoff jobs during the develop-ment and construction phases that will include the construction of a shipping terminal at Moosomin.

In Alberta, the proj-ect would create 4,873 total direct, indirect and spinoff jobs in the first six years with new terminal facilities to be built at Hardisty where the pipeline would begin.

TransCanada an-nounced on Aug. 1 that it is moving forward with the 4,500 kilometre pipeline after secur-ing commitments from producers to ship 1.1 million barrels of crude a day from Alberta and Saskatchewan to refiner-ies in Eastern Canada.

“There has been enormous interest and support since we first floated the Energy East idea more than a year ago and again after we

announced it a month ago,” said Girling to the media.

“I think that’s be-cause this project makes sense for all Canadians and this new study help us understand why that’s the case.”

The project involves converting a portion of TransCanada’s existing 3,000 kilometre Cana-dian Mainline natural gas pipeline to transport crude, and constructing approximately 1,400 ki-lometres of new pipeline.

The pipeline will transport crude oil from Western Canada to delivery points in Mon-tréal, the Québec City region and Saint John, New Brunswick, and increase producer access to Eastern Canadian and international markets.

Eastern Canadian refineries currently im-port more than 700,000 barrels of oil per day, or 86 per cent of their daily needs, from more ex-pensive overseas sources including Saudi Arabia, Nigeria, Venezuela and Algeria.

TransCanada ex-pects oil from Energy East will potentially replace this foreign oil with a more reliable domestic supply from Western Canada.

The company says supplying refineries in Québec and New Brunswick with Cana-dian oil will also support jobs and related positive economic benefits that these facilities provide in local communities.

TransCanada expects to proceed with the necessary regulatory applications for approv-als to construct and op-erate the pipeline project and terminal facilities in early 2014.

Energy East is an-ticipated to be in service by late-2017 for deliver-ies in Québec and 2018 for deliveries to New Brunswick.

Meanwhile, Trans-

Canada continues to collect data and engage with Aboriginal and stakeholder groups as part of its initial design and planning work.

“Gathering input and answering ques-tions people have about

Energy East is a funda-mental first step in our project development process,” Girling said.

“We are holding dozens of public open houses and meetings with landowners, com-munity groups and gov-

ernment leaders across the country to find out how we can make Energy East the safest, most environmentally responsible pipeline pos-sible, and maximize the benefits it will bring to all stakeholders.”

LAMARRE EQUIPMENT INC.

By Geoff LeeKerrobert – Rev Energy Services Ltd. is entering the busy fall season in

what has already been a busy year for their core oilfield maintenance and con-struction divisions.

The company is having a banner year for its pipeline construction and repair, welding, facility fabrication, and internal and external coatings services along with its picker trucks.

“This is our busiest season. We are flat out right now,” said company presi-dent Barry Schreiber on Aug. 27, “but usually October and November is our busy season.

“That’s when things rock and roll in the oilfield. Guys are trying to get things done before the snow flies – things that weren’t done during the sum-mer.”

Rev Energy has positioned itself as a go-to shop for multiple oilfield ser-vices along with its quality control programs for welding fabrication.

“We’ve been working quite a bit for lots of companies from Penn West to

Caltech to Enbridge, Petrobank and Northern Blizzard,” said Schreiber.On the construction side, Rev Energy has been doing everything lately

from well completions to welding and fabricating and sandblasting and coating in the shop and in the field.

“We do a lot of integrity digs,” added Schreiber, who listed TransGas, Plains Midstream and Enbridge among his pipeline maintenance customers.

“Basically you are digging up their pipe and checking their pipe for any kind of corrosion, fixing it, then a lot of times we blast and coat also at the same time.

“We are one of the few companies that can do it all because we have the sandblasting and coatings, too.”

Rev Energy is also due to wrap up work by October on a $500,000 project to replace water mains and services to homes and businesses along the down-town portion of Highway 51 called Pacific Avenue.

“It was a bid. We got it because it’s right on our back door,” said Schreiber.The company operates several trackhoes including a grader and a packer on

the civil construction project that is overseen by Brian Burgardt who co-owns the business with Schreiber.

“We have to locate the mains and sewer and your storm drains, then go ahead and dig and re-tap in the new services,” explained Burgardt.

“We are replacing the old water copper service lines. We are putting them into poly. Every home has a tie in. Everyone has their own curbside service.”

The new water lines are six-inch poly with 3/4-inch poly service lines to homes and businesses.

A larger two-inch service line was connected to the downtown arena which uses a lot of water.

Burgardt noted the project is on schedule thanks in part to warm dry weather since work began earlier in the summer.

Rev Energy has eight employees at the site and 90 on the payroll with all hands on deck.

“In this area there has been tons of work. Usually, we have a lull, a slow period in the spring. We never had that at all this year,” said Schreiber.

Schreiber is stoked by the prospect of securing some work constructing TORQ Transloading Inc.’s $100 million crude-by-rail terminal that will be located about 15 kilometres southeast of town.

The 168,000 barrels per day project announced Aug. 14 will be adjacent to Enbridge and Plains Midstream facilities where Rev Energy has done a lot of work. Page B35

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Page B34“Th e construction

alone will be huge. I’m sure I will get some-thing,” said Schreiber who heads the con-struction maintenance division.

“Maybe I won’t get any of the major bids, but I’ll get spinoff .

“Who knows, maybe we will able to bid on some of the civil work and stuff .”

Schreiber said the TORQ rail terminal would create about 25 full time jobs when it’s up and running which will benefi t the com-munity.

“Most people are pretty pumped because the more Kerrobert grows, the better off we are as a community,” he said.

“We always want to see people coming into our town, so actually it’s been really good. We know we are going to have a few growing pains, but that’s normal for a smaller town.”

Schreiber said the lack of available rental housing in town makes it harder for all compa-nies, including his own, to attract new employ-ees to keep up with the workload.

“Th at’s our biggest thing – fi nding housing even just rental property.

Th e town has talked to quite a few developers,” he said.

“Th ey plan on do-ing work in Kerrobert. Hopefully, it happens.”

No vacancy signs are the order of the day at most local motels, hotels and at Kelordan camp which provides temporary accommoda-tions for oilfi eld work-ers.

“Th e biggest thing is accommodations. A guy could have another 10 guys working, but the accommodations aren’t just in Kerrobert,” said Schreiber.

“Th ere are lots of guys that phone me that would love to come to work for me, but they

have no place to live.”Schreiber said

Kerrobert is certainly a good place for business with the high level of construction and oilfi eld investment taking place in the region.

“I think at least for the next three years we are going to be busy. Th ere is a lot of drilling going on. Th ere are a lot of new companies mov-ing in.

“Our maintenance end and our civil work have been crazy. We’ve turned down work,” he said.

Rev Energy recently added two more track-hoes to its fl eet of civil construction equipment that includes a grader, a

Cat, and gravel trucks.Rev Energy does

work throughout Al-berta, Saskatchewan and Manitoba in all of its growing divisions.

Th e company is mulling over plans to further expand its new shop in the next couple of years for additional coating and painting equipment. Th e new fa-cility originally opened in 2011 year with the coatings bay.

“We are talking about building another part on it, but it will have to wait for another year or so,” said Sch-reiber.

Having a new facil-ity led the company to move its busy welding

division to another shop. Th at meant an expan-

sion as the company continues to grow.

Reservations: 306-453-2686

Edmonton – Alberta Energy will patch up leaks found in its pipeline regu-latory system that were identified by a pipeline safety review report that doesn’t determine if the pipeline system is safe or if the rules are being enforced.

The independent study was supposed to examine how pipeline integrity is managed, how safety of pipelines crossing waterways is ensured, and how responses to pipeline incidents are handled.

The singular focus on safety regulations in the 900-page report is strik-ing given the report was called for to address pipeline safety after several high profile oil spills in the province in 2012.

The review was commissioned in July 2012 following the accidental dump-ing of 3,000 barrels of oil into the Red Deer River and a pipeline leak of 5,000 barrels into Rainbow Lake earlier that year.

In 2011, a Plains Midstream pipeline spilled 28,000 barrels of oil in north-western Alberta.

The government, however, will go ahead and adopt the report’s 17 recom-mendations to further improve pipeline regulations in Alberta including those pertaining to pipelines near water bodies.

Alberta Energy will also work to provide a clearer definition of what con-stitutes a water body.

The arm’s length review was conducted by Group 10 Engineering and in-cluded a comparison of regulatory requirements in several other provincial and international jurisdictions.

The study concludes Alberta provides the most thorough overall pipeline regulatory regime of all of the national and international jurisdictions looked at.

“This review assures Albertans we have a safe system in place, but it’s im-portant that we not rest on our laurels,” said Minster of Energy Ken Hughes.

“As leaders in energy production and regulation, we will make every effort to ensure Alberta’s pipeline safety standards continue to be among the best in the world.”

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NewsPiPeliNe seCTiON C

October 2013

Pipeline News is two sections this month. stayed tuned for

Pumps for November's focus.