2014 Manufacturing Energy

Mining,Energy &Manufacturing20

14

Supporting our local industrial

sector

The World-Spectator - Moosomin, Sask. Monday, May 26, 2014C2

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14 Supporting our local industrial

sector

BY JULIAN BELTRAMETHE CANADIAN PRESS

A new report from the Conference Board puts Can-ada’s three oil rich prov-inces on top of the world in terms of economic perfor-mance.

For the rest of the country the news is not so stellar.

The think-tank’s annual economic report card com-paring 16 of the world’s richest countries puts Cana-

spot better than last year -

Norway.That’s partly a function of

Canada’s relatively stable

eurozone and Japan.Canada scores highly on

economic growth and em-

“poor grades on labor pro-ductivity as well as inward and outward foreign direct investment raise concerns about long-term prosper-

Conference Board’s annual

treats the 10 provinces as if they were countries to cre-ate a picture of not only the internal disparities but also how the provinces compare globally.

-foundland—the three oil producing provinces—in that order as the top per-formers with A-plus scores across indicators such as

-

and productivity. They are the only jurisdictions rated

to have A-plus economies.Alberta is “class leader’’

per capita income that was --

try in that indicator.At the bottom of the class

along with countries such as France and Belgium.

--

dom. Manitoba and Quebec were given C grades.

“What this tells us is we have provinces outperform-

and we have provinces that are struggling along with the laggards in the euro-

the project director for the think-tank.

The common denomina-tor for economic perfor-

is oil and to a lesser degree

-

wan and Newfoundland all have in abundance.

might be surprised by New-

but noted that the province had a 7.9 per cent growth

capita income now is higher than the Canadian average. Where the province scores poorly is in employment growth with a jobless rate still hovering above 11 per cent.

that while there has been a -

parities in Canada in the

variables have risen dra-matically since the 1990s due to the high growth rates in the three oil-producing provinces.

The centre notes that the two-speed economy in Can-ada can create tensions with oil-producers that want to retain as much of the ben-

-

eral government hoping to see resource wealth spread widely.

“But since the growing in-

-opment represents an op-portunity. More resources are available at the national level for both private and public uses.’’

Canadians can share. He es-timated that gross domestic income has been enriched by about seven per cent by

-

oil-producing provinces.

(gross domestic income) is falling elsewhere will have

There is little doubt the that oil gift will continue to

-

The Conference Board report predicts Alberta and

performance report card in -

ing to “record lower un-employment rates than the rest of Canada and stronger growth than the peer coun-tries as the eurozone con-tinues its long and painful

But that doesn’t necessar-

-ommends that they work hard on initiatives that boost labour productivity in order to keep up.

Oil rich provinces get an economic A-plusOil rich provinces not just Canada’s best economic performers, world beaters as well

An oil pumpjack north of Moosomin. Saskatchewan’s oil production is second only to Alberta among Canadian provinces, and provides about 20 per cent of all Canadian production. The earli-est exploration in Saskatchewan can be traced back to an unsuccessful effort to drill for natural gas in the 1880s in the Belle Plaine area near Regina. Exploration continued intermittently until the first commercial oil well in Saskatchewan was finally discovered in Lloydminster in 1943, but it represented only a modest discovery at the time: the Lloydminster oil was of such heavy gravity and high viscosity that it was difficult to produce, transport, and process into petroleum products.

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14Supporting our local industrial

sector

BY KHANG NGUYENAt the Moosomin Chamber of Com-

merce meeting in February, PotashCorp General Manager Iain Guille presented an update on the mine expansion.

“We’re looking forward to what I con-sider to be the jewel of the PotashCorp crown,” Guille said.

The presentation included updates on the status of the expansion, the hiring pro-cess and safety.

“We’re doubling the production capac-ity from just under three million tonnes of potash per annum, to just under six mil-lion tonnes per annum. We are sinking a third shaft about 16 kilometres west of the existing shafts. Once that is complete it will become the service shaft where all the main people, equipment, and facilities will go underground using that shaft,” said Guille.

“The service shaft that is currently in use will be in transition to becoming a second production shaft, so it will be skip-ping potash out of the ground. We’ll have two production shafts at the surface site currently in Rocanville, and that ore will feed into two mills.

-ful mineral deposit we have underground. It’s a deposit which is less challenging to mine than some of the other potash mines seen elsewhere in the province. It is highly mechanized, so you score on productivity. You also score on safety.

Guille says that the expansion is on schedule and on budget.

is very unusual,” Guille says.“We’re currently 80 per cent through

our shaft sinking. We’ve already devel-oped across from the existing mine west to the bottom of the shaft.

“The surface plants will be fully func-

tional by the end of this year, and we will ramp up the underground production fa-cilities during the course of 2015.”

Guille says that a hiring process is ongo-ing and should be at full capacity by 2015.

“We have already brought on quite a number of people.”

Late last year, Potash Corp underwent major job cuts. The company said that 440 people in Saskatchewan would be los-ing their jobs. This cut primarily affected workers in Lanigan, where production has been curtailed, and Cory, which has been closed.

“We rationalized that we were pretty far advanced in our total expansion plans across all out potash sites. Unfortunately, we were in the position where the demand just hadn’t kept up with the production we had available. What we had to do was look at the sites that were more costly to produce.

“The good news is that an awful lot more focus is on the low cost tonnes that Rocanville produces. Hence the reason to continue with the expansion activity.

“We’ll be looking at hiring almost an ad-ditional 100 employees. Over the last cou-ple of months, we’ve already employed an additional 30.

“We’ve actually taken advantage and taken the people who were unfortunate enough to lose jobs at those facilities (Cory and Lanigan). We’ve had quite a degree of take up on that. Of the 18 employees that came in this month, 13 of them are from Lanigan and Cory.”

Because of the expansion, local busi-

Guille says that Potash Corp tries to keep their employees local.

“We encourage them to stay as close to the site as possible which is good for the communities around. We consider our-

selves a good paying employer with good -

ple will hopefully be able to invest in the local communities.

“We are in conversation from time to

time with local developers as well. We keep them appraised of how we’re doing expansion-wise. Obviously they’d be keen to know that we’re bringing in possibly another 100 families into the area.”

Ian Guille from PotashCorp gaves an update on the mine expansion at PotashCorp Rocanville at a recent Moosomin Chamber of Commerce meeting.

PotashCorp Rocanville expansion

Underground production to ramp up in 2015


The crisis in Ukraine has brought the reliability of nat-ural gas supply into sharp focus. Ukraine is completely dependent on Russia’s Gazprom for its gas supply, as are European Union member countries Finland, Esto-nia, Latvia, Lithuania, Slovakia, Bulgaria and the Czech Republic. Overall, EU countries get a third of their gas supplies from Russia.

Desperate to weaken Gazprom’s stranglehold, Eu-

huge and costly projects take years to complete.

tion has unveiled more than one hundred years of sup-ply potential. What about in Europe? The International

metres of shale gas resources, but opponents have con-vinced some of the highest potential countries to ban natural gas fracturing. These include Germany and

plicably, Bulgaria which is totally dependent on Russian gas.

Failure to tap Europe’s shale gas potential allows Vladimir Putin to keep a grip on his most powerful

bonus to the United States, where burgeoning shale gas

Gas-challenged European countries are the main buy-

2005 with Europe taking almost 60 per cent. The envi-ronmental bottom line is that replacement of coal with

coal emissions in Europe.Europe isn’t the only gas fracking-phobic place, of

Brunswick has seen anti-shale gas protests. These fears have been buoyed by a recent report from the Coun-

such things have actually occurred, just that they might.This kind of what-could-go-wrong-if analysis could

be done for virtually any industrial endeavour, includ-ing dams that could burst and bridges that could col-lapse if not properly engineered and constructed.

So what does the actual record tell us? The Environ-

past 60 years in the United States, “1.2 million wells have been hydraulically fractured without a single con-

states, “Because shale gas development is at an early stage in Canada, there is still an opportunity to imple-ment management measures.” Early stage? Shale gas hydraulic fracturing employs the same procedures used

to unlock gas from other “tight” gas geological forma-

to become EnCana Corporation. Since then, EnCana has safely fractured tens of thousands of wells on its way to

Critics also allege the water pumped into wells to fracture the gas bearing formations is depleting water

for fracking seems like a huge number, it’s actually less than the amount of water used in just one day for agri-

tion, here’s another interesting piece of information for those who believe corn ethanol is an environmentally superior alternative to shale gas. U.S. Department of Energy data shows that shale gas requires about three gallons per million BTU of energy produced, while corn based ethanol requires 15,000 gallons per million BTU, or 5,000 times more.

Unlocking the enormous potential of natural gas shale is reducing world consumption of oil and coal while lowering energy costs to consumers and indus-

lowering atmospheric emissions. Groundswell, a new-ly-released book by Ezra Levant, author of Ethical Oil, sets out the facts and dispels the myths about the tech-nology that is making this possible. Countries that are endowed with shale gas resources should celebrate, not reject, their good fortune.

Gwyn Morgan is a retired Canadian business leader who

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The Council of Canadians, Ecology Action Centre, Environmental Defence and Equiterre recently released a study on the impact of the Energy East pipeline. They argued that only 122,000 barrels per day of the total 1.1 million barrel per day pipeline capacity would be used domestically and concluded that, because of this, the risks outweighed the rewards.

It is true that, if built, the Energy East pipeline—a 4,600-kilometre pipeline which would carry crude oil

Canada—will not be a long-term job-creator or provide an immediate economic windfall to the East Coast. No pipeline can do this. What it will do is reduce the sup-

and allow Canada to become a major exporter of politi-cally-secure oil at a time when secure sources of energy are of paramount political importance to our trading partners.

Atlantic oil, U.S. shale and, in the future, oil from En-bridge’s reversed Line 9 pipeline, the myopic and in-ward-looking conclusion, by the Council of Canadians et al., fails to grasp the importance of the oil the pipe-

stability it will provide internationally.Assuming that 122,000 barrels of oil per day will be

used domestically means that the Energy East pipeline -

eries. In economics, the “marginal barrel” is the cost to buy one more barrel of oil—the costliest barrel.

The boom in North American production and lack of

export options for Alberta’s oil has meant that the cost of the “marginal barrel” of oil has dropped in most of North America, but not on Canada’s East Coast where the majority of the oil is imported and priced using the

-as Intermediate (WTI) reference that is used in the rest of North America.

The Energy East pipeline removes this arbitrage by reducing the cost of the “marginal barrel,” which will

---

cal industry.The positive impact of the pipeline will not only be

felt in Eastern Canada; our international trading part-

being able to access a politically secure source of oil in an increasingly insecure world.

Political leaders in Europe and North America are looking at ways to buffer Russia’s increasing energy in-

this will take time but is achievable. Another option is

opening the U.S. Strategic Petroleum Reserve (SPR), but this is politically sensitive and not a good long-term strategy. However, diversifying European supply through Canada by utilizing the Energy East pipeline could have a real and long-term impact on Russia’s im-perial objectives in Europe.

In addition to Europe, India, which currently imports 3.86 million barrels per day of crude oil, has become increasingly interested in East Coast oil. The shipping routes to Mumbai are shorter from Canada’s East Coast (15,628 km) than from Canada’s West Coast (20,061 km) and demand for a stable source of oil in India is increas-ing.

-ada would have a main Atlantic port that the largest oil tankers in the world would be able to access and Canada would be able supply the EU, India, and any other customers with a politically secure source of oil.

The Energy East Pipeline may not have the direct job

-nesses on the East Coast by reducing costs and risks, while allowing Alberta and Saskatchewan to maximize

of being a buffer against Russia’s petro-politics and oth-er international supply risks.

These rewards, as long as the pipeline is built safely and maintained, will be far greater than the risks.

Ryan Lijdsman is a Canadian-based international business consultant.

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BY LAUREN KRUGELTHE CANADIAN PRESS

Railway operators and the petroleum in-dustry have weighed in on how they think the risks of shipping dangerous goods by rail ought to be divvied up—and it’s clear the two aren’t on the same page.

Rail carriers aren’t happy with the status quo, in which they’re legally required to move whatever customers want shipped, but are entirely on the hook if something goes wrong. The energy players, on the

the current system works, although they say changes are needed to how small rail lines are insured.

Transport Canada and the Canadian Transportation Agency, an independent regulator, have been reviewing liability rules

Megantic, Que., which killed 47 people and incinerated much of the town’s centre.

In a joint submission, the Canadian As-sociation of Petroleum Producers (CAPP) and Canadian Fuels Association (CFA) say the current framework is “fundamentally sound.’’

demonstrated that some gaps need to be -

treal Maine and Atlantic, the one involved in last summer’s disaster—can cover their costs in the event of a catastrophe.

According to a Transport Canada discus-sion paper laying out the parameters of its review, small railways usually carry be-tween $5 and $50 million in third-party li-

normally have coverage of up to $1.5 billion.

have been estimated at about $200 million. MM&A, which has gone bankrupt, had in-surance coverage of just $25 million.

-

gantic and the amount of liability insurance carried by Montreal, Maine and Atlantic Railway have highlighted weaknesses in the current liability and compensation regime,’’ Transport Canada says.

CAPP and CFA want to see a “hybrid’’ model that draws from current marine and pipeline liability regimes, both of which Ot-tawa has beefed up over the past week.

For small players unable to afford the same insurance as their larger counter-parts, the petroleum industry is proposing a pooled, or collective approach similar to the marine model.

For large carriers, CAPP and CFA like the status quo, in which railways are responsible for their own insurance, as pipeline opera-tors are.

“The petroleum industry is of the view that the rail liability and compensation re-gime should be guided by key principles that are already in place such as ‘polluter pays’ and railway accountability,’’ CAPP and CFA say in their submission to Transport Canada.

But the Railway Association of Canada, writing to the CTA on behalf of local and re-

gional railways, said the rules must change.As it stands now, railways don’t have the

right to turn down cargoes their customers want moved—that goes for the substance being shipped and the tank cars themselves, which railways don’t typically own. The volatility of the crude and the design of the

been cited as key contributors to severity of the disaster.

“Preferably, railways should be given the right to decline carrying dangerous goods,’’ the association said. “Alternatively, railways should not be the only party held respon-sible for the movement of dangerous goods in Canada. This responsibility should be shared by producers and carriers.’’

tens of thousands of older tank cars used to transport oil and ethanol by rail within three years, as part of a series of measures in re-

In its submission to the CTA, Canadian

require shippers to have “appropriate insur-ance coverage.’’

“Catastrophic incidents can arise without fault or negligence on the part of the railway and there is no accountability in the existing

-ulations for those who create, own, and put high risk products into the supply chain,’’ CP wrote.

the “common carrier obligation’’ in its sub-mission, saying it restricts the company’s ability to manage risk.

“The transfer to the railways of all liabili-ties associated with the movement of dan-gerous goods, together with the carrier’s inability to refuse to carry, provide no incen-tive for shippers to consider source or prod-uct alternatives,’’ the company wrote.

Comments for the Transport Canada re-view closed in March and the department is now going over the feedback, said depart-ment spokesman Daniel Savoie.

He said Transport Canada’s review “builds on” the one being done by the CTA, whose job it is to ensure federally regulated railways have proper insurance coverage when granting them licences.

Ottawa has signalled changes would be coming, saying in last fall’s throne speech that “our government will require shippers and railways to carry additional insurance so they are held accountable.”

Greenpeace campaigner Keith Stewart said oil companies should shoulder some of the risk.

“One of the best ways to make sure com-panies do everything they can to prevent spills is to legislate that they are on the hook for the cost of any damage they cause,” he said.

“If the oil companies were looking at hun-

Megantic-type disaster, I don’t think they wouldn’t be loading what they know is an explosive liquid into rail cars they know are unsafe.’’

Railways, crude shippers weigh in on liability rule changes

A TIME TO CELEBRATE

UNITED STEELWORKERS(South Saskatchewan Area Council)

STANDING PROUDLY WITH OUR MEMBERS AND SASKATCHEWAN’S MINING INDUSTRY

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sector

TransCanada Corp

toward obtaining regu-latory approval for its proposed $12-billion, 4,600-kilometre Energy

-ing a project description with the National Energy Board earlier this year.

TransCanada wants to convert 3,000 kilometres of existing natural gas pipeline and build about 1,600 kilometres of new pipeline in Quebec and New Brunswick. It is expected the west-east pipeline would transport 1.1 million barrels a day of crude oil from Alberta

in Saint John.Also planned are new

pumping stations, oil storage terminals and a joint venture with Irving for a new $300-million deepwater marine termi-nal.

The Moosomin area would play a key role in Energy East.

A tank farm would be built next to TransCana-da’s Moosomin compres-sor station northeast of town with the capacity to hold 1,050,000 barrels of oil.

TransCanada would also build a feeder pipe-line from Cromer, Mani-toba to the Moosomin compressor station, where the Bakken oil would be added to the TransCanada system to be piped to eastern Can-ada.

There would be a hand-ful of permanent jobs at the tank farm, and con-struction activity related to the Cromer pipeline and the tank farm in 2015 and 2016.

TransCanada spokes-man Philippe Canon said the project description is a summary description outlining the formal ap-plication which will be submitted mid-2014.

“The project descrip-tion is a 140-page docu-ment, a brief resume of

what we intend to do. In

actual application. We’re

the open houses engag-ing with stakeholders and gathering informa-tion.

“We still have to do cer-tain assessments out east, mainly in Quebec and New Brunswick. Gen-erally the route we are going to take is the one

NEB, but there may be some small changes.”

He said the route of the Cromer pipeline is be-

with landowners. The route has changed slight-ly because of the location of oil wells and a water pipe. TransCanada is ne-gotiating easements with landowners along the route, and will purchase land for the tank farm at Moosomin and for a com-pressor station at Cromer to power the Cromer to Moosomin pipeline.

“We’re still in the pro-cess of looking at the route and talking to land-owners. It’s not an en-deavor that is as big as what we are doing out east, but we’re still in the process,” Canon said. “Much of the job is done, but there are some small

He said the open hous-es are an important part of the process.

“We’re always happy to be able to talk about the project to people who have questions,” he said. “It’s an ongoing process. TransCanada is a compa-ny that reaches out to its stakeholders.”

The route across the country has been nar-rowed down based on public consultation and engineering and environ-

early in 2013.TransCanada has held

meetings about the proj-ect in hundreds of com-munities and has met with thousands of land-

owners in the six prov-inces through which the proposed pipeline will run—New Brunswick, Quebec, Ontario, Mani-toba, Saskatchewan, and Alberta.

Of the 155 First Nations and Metis communities consulted, TransCanada says many have signed letters of agreement so far.

“TransCanada is proud of the relationship we’ve built over the years with 60,000 landowners across North America on our oil and natural gas pipeline network. And we plan to keep that strong relation-ship with the new land-owners on the Energy East pipeline project,” said Cannon.

“Landowners have been and will continue to be informed and consult-ed. Not only throughout the regulatory process, but also with an open and transparent process throughout the whole project.”

with the National Energy Board describes the en-vironmental assessment process and provides

preliminary information about the scope of activi-ties and the process.

If the National Energy Board gives its approval for the project, Cannon expects the pipeline to be in service in late 2018 for deliveries in New Bruns-

wick and earlier that year in Quebec.

Energy East would take shipments of crude oil from two points in West-ern Canada—Hardisty, Alberta and Moosomin—and ship it to eastern

rely on imported oil, and to an export position at St. John, New Bruns-wick. Western Canadian crude currently sells at

the world price because of the lack of export op-tions.

Monday, May 26, 2014 The World-Spectator - Moosomin, Sask. C7Mining,Energy &Manufacturing20


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Above: TransCanada officials were in Moosomin in March to provide an update on the Energy East pipeline proposal. Energy East would include a feeder pipeline from Cromer, Manitoba to the Moosomin compressor station, and a tank farm at Moosomin to store crude oil production from the Bakken oilfield.

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D The World-Spectator - Moosomin, Sask. Monday, May 26, 2014C8

Julia Dima photoThe $2.8 billion expansion at PotashCorp Rocanville is nearing completion. At the current minesite, above, the new mill can be seen in the fore-

ground, the headframe for the second production shaft—being built over top of the headframe for the current service shaft—can be seen at the centre of the photo, and the new storage buildings can be seen in the background.

Potash is an important mineral to Sas-katchewan and the world. The mineral’s name refers to several forms of potassium salt, the most important being potassium chloride or KCL. It is one of the world’s three important fertilizers. Used in combi-nation with nitrogen and phosphate, pot-ash increases the yields of such important crops as corn, soybeans, coffee, and rice.

Potash plays a central role in helping feed the world’s growing population. Ap-proximately 95 per cent of world potash production is used as fertilizer, the rest being used in a variety of chemical and manufactured products.

-

ewan during the early 1940s while drilling for oil. Exploration during the remainder

the magnitude and richness of Saskatch-ewan’s deposits. Underground, the vast deposit lies diagonally across the southern plains of Saskatchewan, gently sloping southerly from a 1,000 metre depth along a north-west line through Rocanville, Ester-hazy and Saskatoon to more than a 1,600 metre depth at Belle Plaine and up to 3,000 metres depth in Northeastern Montana and North Dakota. The size of the forma-tion is impressive.

Reaching this abundant Saskatchewan resource, however, proved to be a chal-

lenge. The Blairmore, a vast underground water-bearing layer, presented great dif-

sink a shaft began in 1954. Costly delays were experienced during the early years in trying to overcome water associated shaft-sinking problems. It was not until 1962 that potash was being successfully mined in Saskatchewan. The province had the

1971 all of Saskatchewan’s ten world class potash mines were in production. Today, Saskatchewan is the second largest potash producer.

The important role played by potash in meeting agriculture’s needs has helped

make it an increasingly important min-eral to Saskatchewan’s economy. Revenue

-ince in many ways. It supports potash workers and their families through the

-vides an ongoing stimulus to local busi-nesses from the industry’s purchases of

support important government social and economic programs through the payment of taxes and royalties.

Sylvite (potash) was proclaimed Sas-katchewan’s Mineral Emblem in 1996.

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Above: An aerial photo of the new service shaft at Scissors Creek. Above ground work on the shaft is complete, but work continues sinking the shaft to the mining level approximately a kilometre underground.

Mining and the Saskatchewan economyMining is a major contributor to Saskatchewan’s econ-

omy, directly contributing, on average over $1.5 billion in revenue to the provincial government. These revenues support government programs and services such as health care, education and infrastructure development.

• Overall in 2008, mining (direct, indirect, and in-duced) accounted for $7.7 billion in GDP or 12 per cent of the total provincial economy.

• Direct, indirect and induced mining employment

accounted for 30,500 jobs or 6 per cent of total employ-ment, almost 1 in every 16 jobs with a payroll of $1.5 billion.

• From 2008 – 2028, the Saskatchewan mineral indus-try will invest over $50 billion in expansions and new mines.

This translates to new investments of more than $6 million a day.

Mining employment (direct, indirect and induced)

will see its contribution rise to 17 per cent of total em-ployment or almost 1 in 5 jobs.

Mining will generate over 286,000 person years of di-rect employment in construction in operational activity.

Mining will contribute an additional $9.5 billion per year to provincial GDP.

Mining will generate a further $28 billion in provincial revenues or $1.4 billion per year, for a total of over $50 billion.

In April, Premier Brad Wall welcomed the addition of Bangladesh as a major new customer for Saskatch-ewan’s world-leading potash resource.

The premier was in Saskatoon to witness the sign-ing of a potash supply contract between the Canadian Commercial Corporation and the Bangladesh Agricul-tural Development Corporation.

The contract is worth $40 million US, with a $20 million US option, and will see Canpotex Ltd. supply potash to Bangladesh through this rst government-to-government sale arrangement between the two coun-tries and corporations.

“This is an important deal for our potash industry and is signi cant on a number of levels,” Wall said. “It provides Canpotex with new opportunities and access to a country that really needs our potash to boost its agricultural production and achieve its food security goals.

“For our province, the deal means potash becomes a major new part of our export mix to Bangladesh, a very important export market for Saskatchewan, a market where Saskatchewan is Canada’s leader.”

Saskatchewan exported more than $326 million in goods to Bangladesh last year, accounting for about half of Canadian exports to that country. Provincial trade to Bangladesh was primarily in agricultural products, in-cluding pulses, wheat and canola seeds, and was up 17 per cent in 2013 over the year before.

Wall became the rst Saskatchewan Premier to visit Bangladesh when he travelled to the country in March 2011 on a trade mission to develop agricultural and fer-tilizer opportunities. While there, the premier met with Bangladesh’s Prime Minister, Her Excellency Sheikh Hasina.

The premier also acknowledged the key role of senior trade policy o cials in the Saskatchewan government in helping facilitate the potash agreement with Bangla-desh.

The signing ceremony between Canada and Bangla-desh was also attended by federal International Trade Minister Ed Fast and federal Minister of State (Foreign A airs and Consular) Lynne Yelich.

Sask signs potash agreement with

Bangladesh

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D The World-Spectator - Moosomin, Sask. Monday, May 26, 2014C10

An aerial view of the existing TransCanada compressor station near Moosomin. TransCanada has plans to build a 1.05-million-barrel tank farm and terminal next to the compressor station as part of the proposed Energy East pipeline project.

Customer growth was again a highlight for SaskEnergy in 2013, as evidenced by a record level of distribution customers and strong industrial demand for natural gas within Saskatchewan. SaskEnergy, which tabled its annual report in the Sas-

katchewan Legislature in April, saw its system grow by nearly 7,700 distribution customers throughout the year, marking the highest annual gure in more than two decades.

Safety remained the core focus of the

company’s operations, with e orts to en-sure alignment with industry best prac-tices and an increased budget for system integrity activities ($94 million in 2013, up from $79 million in 2012).

“SaskEnergy continued to support Sas-katchewan’s growth in 2013 by provid-ing safe and reliable service while real-izing meaningful gains in productivity and e ciency,” Minister responsible for SaskEnergy Tim McMillan said. “With increasingly higher safety standards throughout the energy industry and a growing system and customer base, SaskEnergy made substantial invest-ments to ensure the infrastructure was in place to safely enable that growth.”

SaskEnergy recorded operational net earnings (income before unrealized mar-ket value adjustments) of $79 million in 2013, compared to operational net earn-ings of $74 million in 2012. The corpora-tion declared a dividend of $30 million to Crown Investments Corporation (CIC), based on 2013 operational net earnings, compared to $27 million in 2012.

The level of economic growth in Sas-katchewan is re ected through SaskEn-ergy’s distribution customer base, which now exceeds 373,000 customers and has grown by nine per cent since 2008. Con-siderable industrial load growth also occurred in 2013, with transmission vol-ume increasing by 27 Petajoules, or 11.4 per cent, from the previous year, driven by power production, potash mining and

enhanced oil recovery.“SaskEnergy has made a number of

signi cant investments in its transmis-sion system in order to meet increasing natural gas demand and to connect cus-tomers,” McMillan said. “The company will continue to leverage its existing pipeline infrastructure, as well as other pipelines, to manage and support the economic growth we are seeing in the province.”

As SaskEnergy adds new customers to its system, overall provincial natural gas usage grows as well. The extreme temperatures in December contributed to a new record for daily natural gas consumption in a 24-hour period. The record 1.24 PetaJoules of natural gas was delivered in the 24-hour period between December 6 and 7, 2013, a ve per cent increase over the previous record which was set on January 18, 2012.

Other 2013 operational highlights in-clude:

• As part of its commitment to safety and system integrity initiatives, SaskEn-ergy completed 2,851 service upgrades under its multi-year distribution service integrity enhancement program, which upgrades services in areas of the prov-ince that are most susceptible to ground shifting when excessive soil moisture conditions are present.

• Productivity and e ciency savings of $5.5 million, bringing total savings in this area to $27 million since 2009.

Record customer growth for SaskEnergy in 2013

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Julia Dima photos

Above: The PotashCorp Rocanville mine site. The $2.8-billion expansion has included building a new service shaft at Scissors Creek approximately 20 km away, converting the existing service shaft at the mine site (the shaft to the right) into a second production shaft, and building a second mill at the mine site. The expansion, which is set to be entirely complete by the end of 2015, will increase production capacity by 2.7 million tonnes of potash.

Right: The new service shaft, located approximately 20 km west of PotashCorp Rocanville at Scissors Creek has a completed head frame, and sinking the shaft into the ground is currently ongoing, with construction expected to wrap up by the end of next year.



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Saskatchewan’s April sale of petro-leum and natural gas rights brought in $47.9 million in revenue, bringing

million.

pocketbooks that Saskatchewan is a great place to invest and drill for oil,”

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these new dispositions begin develop-ment and provide new jobs and pros-

-tevan area receive the most bids with

million and the Swift Current area at

parcel was shared between two adjoin--

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Of particular interest in this sale was a

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Industry land sales in Sask remain strong

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For more information, visit www.southeastcollege.org or contact the Moosomin Campus at 306-435-4631

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The Ministry of the Economy recently announced a new funding agreement with the Petroleum Technology Re-search Centre (PTRC) to support the

age and EOR Research Project that will continue Saskatchewan’s world-leading research on the geological storage of car-bon dioxide.

The $400,000 investment will aug-ment additional funding from the

which has recognized Saskatchewan as a world leader in carbon storage re-search. This funding will address im-portant technical issues associated with carbon dioxide storage, including well bore integrity, predicting carbon dioxide

It will also allow the PTRC to continue their mandate to conduct carbon diox-ide enhanced oil recovery research de-signed to increase oil production in Sas-katchewan.

“Our ability to innovate and develop

new technology is critical to maintain-ing the future viability of Saskatche-wan’s oil and gas industry,” Energy and Resources Minister Tim McMillan said. “Promotion and development of carbon dioxide enhanced oil recovery methods provides the province with both eco-

will help us meet our oil and gas related objectives in the Plan for Growth.”

This project will build upon previous work undertaken by the PTRC in the Weyburn-Midale CO2 Monitoring and Storage Project. The joint work with the

address important emerging issues that could potentially constrain future car-bon storage activity in Saskatchewan and through out the world.

“Recognition of CO2-EOR as valid geological storage is an important part in the commercial deployment of CCS,” PTRC CEO Ken From said. “The techni-cal guidance provided by this research will make a valuable contribution to in-dustry.”

Sask invests in carbon capture and storage research

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DEL CODERRE • RANDY CODERRE



sector

Visit us online for news stories, photo galleries and more!

www.world-spectator.com


Sask disappointed with Keystone delayThe Government of Saskatch-

ewan is deeply concerned with the United States State Department’s an-nouncement in April that it will de-

TransCanada Keystone XL Pipeline, even though the project has already passed the State Department’s own rigorous environmental impact as-sessment.

“This decision by the U.S. govern-ment is a major disappointment,” Premier Brad Wall said. “The Key-stone XL pipeline has been studied long and hard. The pipeline will cre-ate thousands of jobs on both sides of

method of moving large volumes of oil, and according to the State De-partment will not contribute to a net increase in greenhouse gas emis-sions. This delay represents a major blow to the energy industry in Sas-katchewan and in Canada and will place unnecessary strain on relations with our largest trading partner.”

In April, the State Department an-nounced it would delay approval of the 2,700 kilometre pipeline in order to provide eight federal agencies ad-ditional time to review the proposed project and clear any legal challenges to the Nebraska leg of the pipeline.

A portion of the Keystone XL proj-ect would run through the prov-ince—providing jobs to Saskatch-ewan people and freeing-up pipeline capacity so that more Saskatchewan oil can enter the North American pipeline system.

Approval of the Keystone XL pipe-line is especially important for Sas-katchewan, considering the grain transportation challenges Saskatch-ewan producers are facing because a large number of rail cars have been diverted to ship oil.

“Saskatchewan grain, potash, and other commodities suffer every day the Keystone XL pipeline is not being built,” Wall said. “The United States needs to quit wavering and make a decision based on the facts, which support the construction of Key-stone. These politically motivated decisions are hurting the Saskatche-wan economy, the U.S. economy, and our ability to develop new markets and support North America energy sustainability.”

Wall noted that news of another delay in the Keystone approval pro-cess comes as rail shipments of crude oil throughout North America con-tinue to grow, along with the envi-ronmental hazards associated with those shipments.

In the U.S., rail shipments of oil grew by more than 4,000 per cent from 2008 to 2013—from 9,500 car-loads to an estimated 400,000 car-

the Association of American Rail-roads.

In 2013, more crude oil—4.35 mil-lion litres—was spilled in U.S. rail-way incidents than in the past 37 years combined, according to the Pipeline and Hazardous Materials Safety Administration.

Fax: 306-443-2433PO Box 160

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Ken Boettcher 306-483-7462 Tim Boettcher 306-483-8121 Grant Anderson Manager 306-483-7405 Mike Crawford Dispatcher 306-485-7970 Terry Torgunrud Safety & Compliance 306-483-8952 Carl Boettcher Supervisor 306-485-8372

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A Salute to the Mining, Energy &

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salute them for the role that they play.

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sector

Located in the heart of the mining, energy and manufacturing region of Southeast Saskatchewan

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Manitoba’s thriving oil patch will see millions of dollars in provincial road repairs and upgrades to help boost economic growth in southwestern Manitoba, Premier Greg Selinger announced.

“These projects will create an improved road net-work for this important economic activity in southwest Manitoba,” Premier Selinger said. “The petroleum and mineral industry provided jobs for more than 5,700 people, with another 18,000 employed in spinoff busi-nesses. The value of petroleum and mineral produc-tion is around $3 billion each year.”

The projects underway or starting in 2014-15 range from resurfacing with chip seals and asphalt pavement to rehabilitating or replacing bridges and culverts, to-talling $29 million, and including:

• the Trans-Canada Highway, westbound lanes from Oak Lake to Virden – a 21.9-kilometre asphalt pave-ment project;

• the Trans-Canada Highway, eastbound lanes from 13.2 km east of PTH 41 to PTH 83 – a 17-km high-per-formance chip seal application project (chip seal is a surface treatment to smooth and extend the life of the road surface);

• PTH 83, from PTH 16 to PR 264 – a nine-km as-phalt paving project, part of larger project to Roblin;

• PTH 83, from PR 255 to the Trans-Canada High-way – a 16.3-km microsurfacing project (microsurfac-ing is also a surface preservation treatment to improve

the road surface;• PTH 83, from PR 355 to PTH 42 – a 17-km high-

performance chip seal application;• PTH 83, from PTH 1 to PR 467 – a 22-km high-per-

formance chip seal application;• PTH 83, over Pipestone Creek north of PTH 2 –

structure replacement;• PR 251, over the Souris River at Coulter – structure

replacement;• PR 255, from PR 256 to PTH 83 – spot grade im-

provements for 21.3 km;• PR 256, from north of PR 255 to PR 257 – an 11.4-km

microsurfacing project;A further 13 projects are slated to start in future

years, valued at $83 million, and including:• PTH 2 at PR 256 – intersection improvements;• PTH 2, at the Saskatchewan boundary to PTH 83 –

a 34-km paving project;• PTH 2, over Stony Creek near Reston – structure

replacement;• PTH 3, over Graham Creek near Melita – structure

replacement;• PTH 21, from the U.S. border to 3.5 km south of

PTH 3 – a 19.2-km paving project;• PTH 41, from PTH 42 to two km south of PTH 16 –

a 15.9-km paving project;• PTH 83, from north of PTH 24 – a 13.8-km paving

project;• PTH 83, over Bosshill Creek south of PR 257 –

structure replacement;• PR 251, from PTH 21 to Waskada – an 18-km grade

widening and seal coat project;• PR 255, from PR 256 to PTH 83 – spot grade im-

provements along a 21.3-km section;• PR 256, from PTH 2 to Cromer – a 21.2-km grade,

base and paving project;• PR 545, from the Saskatchewan Boundary to PTH

41 – an 8.9-km grading project; and• PR 579, from PR 478 to PTH 83 – a 6.4-km spot

grade improvement project.“We are continuing to meet with our oil industry

partners to improve the road network using the new Commercial Infrastructure Fund to allow hauling of larger loads, making this important industry even

oil industry is very competitive and these road im-provements will help Manitoba’s oil industry to re-main competitive.”

The projects are part of the Manitoba government’s $5.5-billion Five-Year Plan to Build a Stronger Mani-toba. Funds raised from the one-cent-on-the-dollar in-crease in the PST will be dedicated to new investments in core infrastructure including:

• more than $3.7 billion to be invested in Manitoba roads, highways and bridges to better connect commu-nities and strengthen trade corridors,

around the province to better protect more communi-

• more than $1.5 billion to be invested in municipal roads, clean water and other municipal infrastructure to help meet the needs of Manitoba’s many growing communities.

Motorists are reminded to slow down and use cau-tion approaching and in construction zones, for their own safety and the safety of workers. The latest infor-mation on lane closures and road conditions is avail-able anytime toll-free at 511, at www.mb511.ca or by following the Twitter account at www.twitter.com/MBGovRoads.

Manitoba:Major road improvements planned in oil patch

Continental Mine & Industrial Supply is an application focused business based in

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Website: www.cmiindustrial.ca



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Contact us today!HEAD OFFICE

Box 45 Site 502 RR5 Saskatoon, SK S7K 3J8Ph: (306) 652-4168 — Fax: (866) 847-4815

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Reach thousands

of readers in

Southeast Saskatchewan

and Southwest Manitoba

when you advertise

in Plain and Valley

Call us at 306-435-2445 or visit us online at www.plainandvalley.com


The communities of the area thank PotashCorp for

its contributions to our communities.

PotashCorp has beena good corporate citizen

and has contributed greatly to all of our communities.

Congratulations on your expansion, and we lookforward to working with

you in the future.

Town of Moosomin

Town of Rocanville

Town of Wapella

Village of Welwyn

Village of St. Lazare


We’re just around the corner,

doing business around the world.

At PotashCorp, we help farmers around the world grow nourishing food that

supports our growing population. Our expansion at Rocanville offers growth

opportunities for our employees, our company and our business partners.

We’re contributing to a strong and vibrant economy in our home province and

helping to build a better future for us all.

Find out more at PotashCorp.com.

PotashCorp.com

@PotashCorpSask

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