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4 North American Oil & Gas Pipelines | JULY 2012 napipelines.com

On the COver: Two Astec Industries companies may provide vastly different technologies, but American Augers and Trencor share a common mission.

22 HDD vs. Trenching? Not Quite American Augers and Trencor are dedicated to manufacturing rugged equipment for pipeline installation. By Bradley Kramer

FeAtUreS

28 Who Will Pay for Future Natural Gas Pipeline Capacity? A look at the financial impact of building infrastructure to meet energy demands. By Greg W. Hopper

32 Bucket Wheel Speeds Production for Texas Pipeliner Bottom Line Services increases efficiency for 60-mile installation. By Curt Grandia

36 Over the River Michels’ planning process ensures a successful river crossing project in southwestern Pennsylvania. By Jill Badzinski

DePArtMentS

8 PLCAC Newsletter

10 News

20 Project Roundup

40 Product Showcase

46 Calendar

July 2012Volume 5 Issue 7Published by Benjamin Media Inc.

North American Oil & Gas Pipelines (ISSN 2166-6334) is published twelve times per year. Copyright 2012, Benjamin Media Inc., 1770 Main St., Peninsula OH 44264. USA All rights reserved. No part of this publica-tion may be reproduced or transmitted by any means without written permission from the publisher. One year subscription rates: complimentary in the United States, Canada and Mexico. Single copy rate: $10. Subscriptions and classified advertising should be addressed to the Peninsula office. POSTMASTER: send Changes of Address to North American Oil & Gas Pipelines, P.O. Box 190, Peninsula OH 44264 USA.

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North American Oil & Gas Pipelines Magazine is not affiliated or associated with North American Pipe Corporation of Houston, Texas.

COLUMnS

6 Editor’s Message

MArKetPLACe

45 Business Cards

46 Index of Advertisers

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The Solace of Sensible Studies

Call it the “Tale of Two Studies.” The fears over hydraulic fracturing are still causing public outcry about the poten-tial pollution of precious potable water sources. The people crave information — some indication that progress in energy production won’t spell disaster for future generations.

In November 2011, the U.S. Environmental Protection Agency (EPA) an-nounced it would conduct a study of hydraulic fracturing and its possible effects on drinking water resources. The EPA listed seven shale plays that would serve as case studies for the project, including the Marcellus region in Bradford, Susque-hanna and Washington counties, Pa.; the Haynesville shale in DeSoto Parish, La.; the Bakken play in Killdeer, N.D.; the Barnett shale in Wise County, Texas; and the Raton Basin in Colorado. A progress report is due out later this year, with final draft of the study due in 2014.

Earlier this month, however, the American Petroleum Institute (API) and the American Natural Gas Alliance (ANGA) released the results of an independent review of the EPA’s research methodology and called for more collaboration be-tween the government and the energy industry.

To conduct the review, the API and ANGA engaged Battelle Memorial Insti-tute, a non-profit science and technology research and development organiza-tion, which found deficiencies in the EPA’s methods. The two associations have consistently raised concerns with the EPA’s approach, which the groups say are validated in Battelle’s review. The independent report, released July 10, specifi-cally cites lack of collaboration and transparency as a key weakness in the EPA’s current plan.

“This is a study with potentially great significance to our nation’s energy fu-ture, and it must be pursued with the utmost scientific rigor,” said ANGA presi-dent and CEO Regina Hopper. “The Battelle analysis clearly shows that we aren’t there yet. But we can get there, and we must get there.”

While the lack of collaboration was derided in the EPA’s plan, the U.S. Depart-ment of Energy should be applauded for partnering with an unnamed drilling company in southwestern Pennsylvania to study whether drilling fluid can seep up from more than 8,000 ft underground into a testing area 4,000 ft down. If the study concludes the drilling fluids don’t reach the testing area, researchers say there will be no need to test drinking water aquifers, which are closer to the surface.

The participating drilling company is giving researchers access to a commer-cial drilling site, allowing scientists to conduct baseline tests, add tracing ele-ments to hydraulic fracturing fluids and conduct follow-up monitoring to see if the fluids migrate upwards or sideways from the Marcellus shale.

Some reports say that it could take hundreds of years for drilling fluid to mi-grate to the level of drinking water sources. Finally, a sensible study seeks to find out the truth. The results of this study could serve to quell fears and build further acceptance among the public. Thanks to collaboration between researchers, gov-ernment entities and the energy industry, progress won’t be such a dirty word. If only the EPA would seek such a coordinated effort.

Brad KramerAssociate [email protected]

Publisher Bernard P. Krzys

Associate Publisher Robert D. Krzys

Editor James W. Rush

Associate Editor Bradley Kramer

Contributing Staff Editors Sharon M. Bueno

Andrew Farr Keith Gribbins Pam Kleineke Kelly Pickerel

Production Manager Chris Slogar

Graphic Designers Nicole Davis

Sarah E. Hayes Elizabeth C. Stull

Marketing Director Kelly Dadich

Regional Sales Managers Ryan Sneltzer

Dan Sisko

Audience Development Manager Alexis R. White

Web & Interactive Manager Mark Gorman

Conference Event Coordinator Vicki Losh

Editorial Advisory Board

Cortez Perotte Pipeline Product Engineer/Industry Representative,

Caterpillar Inc.

Todd Porter Vice President of Business Development,

New Century Software Inc.

Eric Skonberg Principal Engineer, Trenchless Engineering Corp.

Don W. Thorn President, Welded Construction LP

Kevin Waschuk Vice President, Waschuk Pipe Line Construction Ltd.

Bob Westphal Senior Vice President, Michels Corp.

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BPA Worldwide Membership Applied for February 2012

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Pipe Line Contractors Association of Canada Newsletter

More Than 350 Met in Whistler, British Columbia, for Event

Delegates from Canada’s oil and gas pipeline industry gathered June 3-7 in Whistler, British Columbia, to discuss the state of petroleum supply and the future of installation projects during the 58th annual convention of the Pipe Line Contractors Association of Canada (PLCAC). More than 350 people attended the event, including PLCAC Regular and Associate members, representatives from the four craft pipeline unions, members of the various international pipeline associations and client owners.

At the annual General Meeting, 2011-2012 PLCAC president Nick de Koning delivered his President’s Message, while John Carruthers, president of Enbridge Northern Gateway Pipelines Inc., presented on the much-anticipated Northern Gateway Pipeline project.

During the Business Development Session, Dr. Michael Economides spoke about the world supply of oil and what to expect regarding the future of oil. The Executive Development Session featured motivational speaker Warren Macdonald, an environmentalist, explorer, mountain climber and writer, who survived an incident in 1997 when a boulder fell on his legs while hiking on Hinchenbrook Island, off the northeast coast of Australia.

The PLCAC Convention featured many events and activities planned for delegates and companions throughout the five-day event, including industry speakers, the association’s annual golf tournament at the Fairmont Chateau Whistler Golf Course, as well as various tours and activities throughout the convention.

“Great turnout this year,” said Neil Lane, executive director of PLCAC. “I was pleased to see our delegates have an opportunity to network and enjoy themselves at our convention.”

Next year’s 59th annual PLCAC Convention will be in Montreal, May 12-16, 2013, at Fairmont The Queen Elizabeth. For more information, contact the PLCAC at [email protected].

PLCAC Inducts New President David Kavanaugh Takes the Reins for 2012-2013

David Kavanaugh, president of O.J. Pipelines Canada, was inducted as the 2012-2013 PLCAC president during the convention’s evening gala event on June 7. Kavanaugh takes over for 2011-2012 president Nick de Koning, president of Robert B. Somerville Co. Ltd.

In 2006, Kavanaugh was appointed president of O.J. Pipelines Canada and its subsidiaries RMS Welding Systems and O.J. Industrial Maintenance. He brings more than 40 years of experience in project construction and operational management with various pipeline construction companies and projects in both domestic and international locations.

Kavanaugh is also a member of the Canadian Pipeline Advisory Council. This is the first time that he has been elected to serve as president of the PLCAC.

Along with the PLCAC’s new board of directors, Kavanaugh’s leadership will be integral to the success of the association. Their joint efforts will serve to help direct, guide and promote the well-being of the PLCAC and its members. For a list of the 2012-2013 board of directors, visit www.pipeline.ca.

David Kavanaugh, president of O.J. Pipelines Canada, was inducted as the 2012-2013 PLCAC president during the evening gala at the PLCAC Convention, June 7, in Whistler, British Columbia.

During the General Meeting, John Carruthers, president of Enbridge Northern Gateway Pipelines, presented about the proposed $5.5 billion dollar Northern Gateway Pipeline to construct a twin pipeline system from near Edmonton, Alberta, to Kitimat, British Columbia.

Canadian Pipeliners Celebrate 58th Annual Convention

napipelines.com JULY 2012 | North American Oil & Gas Pipelines 9

Safety and Leadership Award WinnersPLCAC Recognizes Annual Merits of Industry

Each year at the PLCAC Convention, the association presents the Safety Award Winners and Future Leader Award Winner.

The James L. Abraham Pipeline Construction Safety Awards Program recognizes member companies that have distinguished themselves in respect to exemplary safety performance and safety records over the past year.

Awards were given in the categories of Mainline Pipeline Construction, Distribution Pipeline Construction, Specialty Contractor Transportation, Specialty Contractor Over 20,000 Hours and Specialty Contractor Under 20,000 Hours. The award winners for 2011 include O.J. Pipelines Canada, Link-Line Contractors Ltd., Triple Random Inc., Michels Canada Co. and Academy Construction and Maintenance Ltd.

The winner of the 2012 Jack Cressey Future Leader Award was Ryan Hoyle of Aecon Infrastructure Group. The award was presented at the PLCAC Convention on June 7.

For more information about the 2011 Safety Award winners and Future Leader Award winner, visit www.pipeline.ca.

Pictured here are the Canadian pipeline contractors who participated in the voluntary James L. Abraham Safety Awards, which were presented during the General Meeting at the PLCAC Convention.

Canada’s pipeline industry made many achievements and faces many challenges ahead. The PLCAC Convention speakers highlighted the industry’s successes and addressed the needs for the future. Nick de Koning, 2011-2012 PLCAC president, kicked things off with his President’s Message during the General Meeting, June 5.

Noting the recent accomplishments and challenges facing the industry, de Koning reported that the PLCAC had strengthened its relations with its stakeholders, leading to an increased presence for union pipeline contractors.

Additionally, de Koning highlighted the three-year renewal process for the Pipeline Construction Safety Training Program, which has led to the re-certification of more than 3,000 workers.

The PLCAC has also driven efforts to attract new workers to the pipeline industry through association initiatives to meet the future demands of labor.

With the induction of David Kavanaugh as the new president of the association, de Koning joins the board of directors as the immediate past president.

Meanwhile, other convention speakers continued the message of what the future

holds for oil and gas pipelines in Canada. Also during the General Meeting,

industry speaker John Carruthers, president of Enbridge Northern Gateway Pipelines, gave a presentation about the proposed $5.5 billion dollar Northern Gateway Pipeline, a project that involves the construction of a twin pipeline system that would run from near Edmonton, Alberta, to a new marine terminal in Kitimat, British Columbia. World demand could be met through the project, Carruthers said, and it would create many jobs, both directly and indirectly, throughout Canada.

Dr. Michael Economides, a professor at the University of Houston and a world renowned expert on the geopolitics of energy, spoke at the Business Development session on June 6. Focusing on the global landscape of oil, Economides stressed the importance of energy as an economic force all over the world.

Motivational speaker Warren Macdonald spoke to convention delegates at the Executive Development Meeting on June 7. His presentation reinforced the importance of recognizing change as an opportunity to transform our lives and turn negatives into positives.

President’s Message Highlights Industry

Convention Speakers Rally the Crowd

Nick de Koning, 2011-2012 PLCAC

president, spoke about the recent

accomplishments and upcoming challenges for

the pipeline industry during his President’s

Message at the General Meeting,

June 5.


North America News

A technology and energy produc-tion consortium has successfully completed initial proof-of-concept testing of a unique oil sands extrac-tion method that has the potential to improve environmental performance and reduce development costs.

The consortium of Laricina Energy, Nexen Inc., Suncor Energy and Harris Corp. completed its initial phase test-ing of the Enhanced Solvent Extrac-tion Incorporating Electromagnetic Heating (ESEIEH) project at Suncor’s Steepbank mine facility north of Fort McMurray, Alberta. The $33 million program is supported by the Climate Change and Emissions Management Corp. (CCEMC), and the test was ap-proved by the Energy Resources Con-servation Board.

The test confirms the ability to successfully generate, propagate and distribute electromagnetic heat in an oil sands formation. It also validates the analytical tools and methods used to predict the performance of the process, thereby increasing the consortium’s confidence as it moves to a field pilot next year. While these preliminary results are encouraging, additional work remains before the commercial viability of the process can be determined.

“ESEIEH is a key project for the CCEMC and Alberta, and offers the potential to reduce greenhouse gas emissions during oil sands produc-tion,” said Eric Newell, chair of the CCEMC. “The ESEIEH team is making excellent progress and we look for-ward to the upcoming pilot project.”

Approximately 1.6 million barrels per day of crude oil are currently being produced through surface mining and in situ recovery processes in Alberta. In situ processes, including steam assist-ed gravity drainage (SAGD) and cyclic steam stimulation (CSS) now contrib-ute roughly half of the total daily pro-duction from the Canadian oil sands. Mining and in situ processes use hot water or steam to separate bitumen

from the sands, requiring both water and energy. These two key factors af-fect environmental performance and associated capital and operating costs in oil sands development.

ESEIEH — pronounced “easy” — re-places the need for water by applying Harris’ patent-pending antenna tech-nology to initially heat the oil sands electrically with radio waves. An oil solvent is then injected to dilute and mobilize the bitumen with minimal energy requirements, so that it can be extracted and transported for fur-ther processing. By reducing the en-ergy required and eliminating the need for water, the ESEIEH process is expected to improve environmental performance, while providing greater efficiency and versatility in oil sands recovery operations.

The anticipated benefits of ESEIEH technology in oil sands production include:

Reducing greenhouse gas emis-sions by eliminating fossil fuels to generate steam;

Operating cost efficiencies through reducing the amount of energy necessary in the extraction process;

Capital and operating cost effi-ciencies by removing the need for steam generation and water treat-ment facilities;

Improving the quality of the ex-tracted oil as a result of using elec-tromagnetic versus steam heating in the extraction process; and

Increasing the amount of oil sands deposits deemed economically viable by reducing extraction costs — permitting economic access to otherwise stranded oil deposits.

The electromagnetic heating tech-nology was first evaluated and tested in Florida last year and then moved to Fort McMurray for the proof-of-concept field testing. The next phase — an expanded pilot field test — is scheduled to begin in 2013. Some elements of the technology solution may become commercially available prior to the final testing.

New Oil Sands Recovery Process Could Revolutionize Industry Electromagnetic Heating Improves Performance, Reduces Costs

A consortium of energy-related companies have successfully completed initial testing on Enhanced Solvent Extraction Incorporating Electromagnetic Heating (ESEIEH), a process of extracting bitumen from oil sands that could improve environmental performance and reduce development costs.


Pipeline industry leader Robert Westphal retired on July 1 after a decorated career at Michels Corp. and in the utility construction industry, including his time serv-ing on the North American Oil & Gas Pipelines Editorial Advisory Board.

Westphal started with Michels as a laborer in 1965 when he was directly hired by company founder Dale Michels. He worked his way through the ranks as operator, foreman, project superintendent, general superintendent, vice presi-dent and finally senior vice president of construction op-erations. After retirement, Westphal will continue to play an integral role with the Brownsville, Wis.-based utility construction company when he transitions into a new role of senior strategic advisor by continuing to help Michels maintain and develop customer relationships and to con-tinue to provide keenly acquired knowledge and business acumen to Michels’ future and growth.

Providing positive leadership has been a hallmark of Westphal’s career. In 1980, future Michels president Pat Mi-chels came to work for Westphal on a water project he was leading in South Dakota. The two developed a friendship and respect for one another that continues to thrive today. Both remain committed to respecting the company roots while keeping a keen eye trained on future growth.

“Bob has been critically important to my family and Mi-chels Corp. for more than 47 years,” said Pat Michels, now Michels president. “He has seen a tremendous amount of growth at Michels and has been an integral part in helping to evolve the company into the success it is today.”

Westphal was heavily involved in the telecommunica-tions boom of the 1980s and from that arena helped found and shepherd Michels’ now globally renowned directional drilling operation. He also was instrumental with guiding the company through the resurgence of its mainline pipe-line operations.

Spending his career at Michels was an easy decision

for Westphal.“I always had the sense

that there would be con-tinuous opportunity for growth, not only from the company’s standpoint but for myself, and that has continued through-out my career,” he said. “I have had opportunities to work with many incredibly talented people through-out the organization dur-ing the course of my time here.”

Horizontal directional drilling, microtunneling, pipeline construction and pipe rehabilitation encapsulates the diverse fields of underground utility construction for which Westphal has earned himself a highly regarded repu-tation.

Westphal was named the Trenchless Technology Person of the Year in 2011 and has remained actively involved in many related associations which have played an invalu-able role in helping him stay in tune with rapidly chang-ing technology, industries and markets. Associations in which he is or has been an active member of include North American Society for Trenchless Technology and Pipe Line Contractors Association (PLCA), for which he served 13 years on the board of directors, including president from 2005 to 2006. Westphal also served on the PLCA Labor Committee and the Pipeline Industry Advancement Fund. He is currently a trustee on the Labors National Pension Fund and a member of the Canadian PLCA, Interstate Nat-ural Gas Association of America and International Pipeline and Offshore Contractors Association.

Westphal Retires From Michels After 47 Years

IPAA, API Respond to Dunes Sagebrush Lizard Listing The U.S. Fish and Wildlife Service on

June 13 made its final determination that the dunes sagebrush lizard does not warrant en-dangered status under the Endangered Spe-cies Act. In response, the Independent Petro-leum Association of America (IPAA) and the American Petroleum Institute (API) released statements in favor of the ruling.

“After a year and a half of consideration, the Fish and Wildlife Service has made the right decision regarding the protection sta-tus of the dunes sagebrush lizard,” said IPAA president and CEO Barry Russell. “The Inte-rior Department’s decision affirms the fact that oil and natural gas development and en-vironmental protection are not in opposition, as it recognizes the successful conservation efforts of regulators, non-profit groups and industry working together at the state level.”

IPAA commended America’s oil and natu-ral gas producers for making the case to the

administration that economic development and wildlife conservation can go hand in hand.

“Environmental stewardship is a funda-mental pillar of the operations of America’s independent producers, who drill 95 percent of the wells in the United States,” Russell continued. “IPAA’s member companies are integral members of the communities where they live and work and have a major stake — and have made great progress — in protect-ing wildlife and the environment.

Russell added that had the dunes sage-brush lizard been listed as an endangered species, it would have been a “death toll to jobs, energy and economic growth” in the areas where the lizard is found, primarily southeastern New Mexico and the adjacent region of Texas.

API upstream director Erik Milito said that the Fish and Wildlife Service’s decision was

an example of industry, states and the gov-ernment working together to harmonize con-tinued oil and gas production with conserva-tion efforts.

“The oil and gas industry has worked tire-lessly with federal agencies, including the Fish and Wildlife Service, state agencies, conservation organizations, ranchers and other stakeholders to develop and imple-ment a far-reaching, voluntary collabora-tive management program and cooperative conservation agreements for protection of the dunes sagebrush lizard,” Milito said. “It is critical that the federal government em-brace a practical, long-term energy strategy that harmonizes conservation with continued energy development. This positive decision helps to ensure that oil and gas production can continue to drive the economy forward through job creation, revenue generation and energy security.”


Gas Technology Institute (GTI) an-nounces the availability of a case study about a pilot project that used smart-phones and mobile GIS to automate field data collection for exposed pipe surveys. Based on the results of the pilot project with Avista Utilities, the estimated pay-back period of the total investment will be less than one year and the net pres-ent value over a three-year period will be more than $200,000 for the utility if the technology is fully implemented.

In March 2012, Avista — located in Spokane, Wash. — commenced the pilot project to evaluate the new technology being developed by GTI and 3-GIS with funding from Operations Technology Development (OTD), a not-for-profit company that facilitates voluntarily funded, collaborative research on issues relating to gas operations and infra-structure. Four iPhones with a GIS-based data collection application were imple-mented with field crews responsible for performing exposed pipe surveys. The new technology replaced paper maps and forms with software that allowed field crews to view the GIS and collect inspection results on an iPhone. Manu-al data transfer and entry in the office was replaced by an automated process that uses cloud computing to make elec-tronic survey data available immediately without the need for manual entry.

“Accurate, high-quality data that is accessible for analysis and decision mak-ing is the basis of integrity management. GTI’s Intelligent Utility Program is tak-ing a look at ways that the industry can leverage recent advances in information technology to develop tools for extend-ing electronic data capture and real-time access to geographic information to users in the field,” said Alicia Farag, GTI program manager. “This project is just one example of how electronic data forms on mobile devices can optimize the data management process, reducing costs and improving data quality.”

The results of the pilot project dem-onstrate that the mobile data collec-tion system provides value in a number of ways. Field crews are able to see fa-cility data on a handheld device rather than having to call back to the office to request additional information to be looked up, adding significant efficiency to their work flow. Data is validated in the field in real-time, which reduces the occurrence of inaccurate data being re-corded. Re-entry of the data back in the office is eliminated, helping to reduce

New Case Study Shows How Smartphones Can Automate Field Data Collectionthe possibility of errors, and poten-tially providing an estimated annual $150,000 in cost savings if the tech-nology is fully deployed. The struc-ture of the new mobile data collec-tion system allows inspection data to be directly associated with an as-set in the field without the need for a manual mapping process back in the office, providing easy access to ex-posed pipe survey data while onsite.

Field crews were able to learn to use the software and handheld devices with minimal training and had good experiences during the pilot project, so the transition to the new system was easy.

Based on a positive experience with the technology, Avista is considering future work to explore the use of mo-bile data collection on handheld de-vices for other operations.

14 North American Oil & Gas Pipelines | JULY 2012

Silica Exposure a Concern for Workers in Hydraulic Fracturing Operations

Occupational safety groups are warning hydraulic fracturing operators about the dan-gers of silica exposure in a recently released hazard alert.

The U.S. Department of Labor’s Occu-pational Safety and Health Administration (OSHA) and the National Institute for Occu-pational Safety and Health (NIOSH) issued a hazard alert on ensuring that employers in hy-draulic fracturing operations take appropriate steps to protect workers from silica exposure. The action, which is taken after consultation with stakeholders, including industry, meets the Obama administration’s focus on ensuring that this important resource continues to be developed safely and responsibly.

The hazard alert follows a cooperative study by NIOSH and industry partners that identified overexposure to silica as a health hazard to workers conducting hydraulic frac-turing operations.

As noted in the alert, respirable silica is a hazard common to many industries and in-dustrial processes.

Because large quantities of silica sand are used during hydraulic fracturing, NIOSH be-gan a cooperative effort in January 2010 to collect data regarding silica exposure at hy-draulic fracturing operations. NIOSH worked in cooperation with oil and gas industry part-ners to sample the air at 11 sites in five states where hydraulic fracturing operations were taking place. NIOSH identified seven pri-mary sources of silica dust exposure during fracturing operations and found that workers downwind of sand mover and blender opera-tions, especially during hot loading, had the highest silica exposures.

Workers who breathe silica day after day are at greater risk of developing silicosis, a disease in which lung tissue reacts to trapped silica par-ticles, causing inflammation and scarring, and reducing the lungs’ ability to take in oxygen. Silica also can cause lung cancer and has been linked to other diseases, such as tuberculosis, chronic obstructive pulmonary disease, and kidney and autoimmune disease.

The action responds to the NIOSH findings. The alert states that employers must ensure that workers are properly protected from over-exposure to silica. The alert describes how a combination of engineering controls, work practices, protective equipment and product substitution, where feasible, along with worker training, can protect workers who are exposed to silica. Engineering controls and work practic-es provide the best protection for workers. Ac-cording to the alert, transporting, moving and refilling silica sand into and through sand mov-ers, and along transfer belts and into blender hoppers, can release dust into the air contain-ing up to 99 percent silica that workers breathe.

“Hazardous exposures to silica can and must be prevented. It is important for employ-ers and workers to understand the hazards associated with silica exposure in hydrau-lic fracturing operations and how to protect workers,” said Dr. David Michaels, Assistant Secretary of Labor for occupational safety and health. “OSHA and NIOSH are commit-ted to continuing to work with the industry and workers to find effective solutions to ad-dress these hazards.”

“Through partnerships, both businesses and safety professionals are able to collabo-rate on assessing and managing occupa-

tional safety and health risks,” said NIOSH director John Howard, M.D. “The recommen-dations for protecting workers in the hazard alert are practical, evidence-based and effec-tive solutions to help support the safe growth of American-made energy.”

“We applaud the efforts of the NIOSH NORA Council for Oil and Gas Extraction, OSHA and our partners from industry for helping to raise awareness of this hazard,” said Kenny Jordan, executive director of the Association of Energy Service Companies. “We are proud of the de-velopment of an industry focus group in coop-eration with those agencies which will further explore this issue, share best practices and continue to build upon the many engineering controls currently in place and those under development over the last several years. The safety and health of our workforce is a top priority, and the industry strives to follow and improve best practices for safe operations and works closely with OSHA and NIOSH to help ensure a strong culture of safety. We look for-ward to sharing improvements not only within our industry, but with others as well.”

AFL-CIO health and safety director Margaret Seminario stated, “The AFL-CIO strongly sup-ports this hazard alert that provides important information to employers and workers involved in hydraulic fracturing operations regarding the serious health threat from silica exposures. It is critical that OSHA and NIOSH disseminate this information, so that immediate action can be taken to protect workers from silicosis and other silica-related diseases.”

The hazard alert can be viewed at www.osha.gov/dts/hazardalerts/hydraulic_frac_hazard_alert.html.

hazard alert

Fecon Acquires Drilling TechnologyFecon Inc. enters the seismic and

geothermal drilling markets through the acquisition of Dyno-Drill LLC in March. As part of the agreement Mark Bowling, inventor of the Dyno-Drill, will actively work with Fecon in support of the drill program.

The acquisition combines an inno-vative drill solution with the manu-facturing and distribution strengths of Fecon, a world leader in mulchers used for seismic exploration and pipeline construction, and a pioneer of bio-harvesting technology for the renewable energy market.

The move positions Fecon to offer drills to an existing base of mulching contractors who offer seismic drilling services, and to expand its product of-

fering into an additional segment of renewable energy. Fecon will intro-duce two standard models under the Fecon label and colors this summer. The rubber track crawlers include an onboard 300-cfm, 200-psi air com-pressor and a rod rack for carrying straight rod, auger rod and an air ham-mer. Wet drilling will also be available.

Fecon was established in 1992 near Cincinnati, Ohio, and originally pro-duced horizontal grinders and other wood processing equipment. Fecon now manufactures forestry track car-riers, forestry mulching attachments and general forestry attachments for vegetation management and wood to energy biomass industries and a seis-mic and geothermal drilling line.

With the acquisition of Dyno-Drill, Fecon expands into the seismic and geothermal drilling markets.


MCLAUGHLIN and the MCLAUGHLIN LOGO are trademarks of McLaughlin Group, Inc. © 2012 McLaughlin Group, Inc. All rights reserved.

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construction pit, the CBM48 enables you to complete

more bores in a day. It also offers many safety and

control features, such as an OPC hydraulic clutch for

quick drive-line shutdown in emergencies.

Faster, right outof the cradle.

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Seasonal surges in gasoline demand along the U.S. East Coast will bring only temporary relief to the crisis-hit European refining industry, as refiners in the United States and Europe strug-gle to stay afloat, according to a new report by energy experts GlobalData.

The new report shows that the U.S. East Coast is considered to be the larg-est market for gasoline in the United States and depends on gasoline sup-plies from the international market to meet surges in demand during the summer season. According to the U.S. Energy Information Administration (EIA), the East Coast region imported a total of 760,000 barrels of gasoline per day during 2010 — accounting for approximately one-quarter of the re-gion’s total annual gasoline consump-tion.

The prospects of supplying gaso-line to the East Coast from the Gulf Coast region are limited due to infra-structure constraints. Refiners on the East Coast depend on costly light and

sweet crude oil imports from coun-tries in the Middle East and Africa, but the high expense of this feedstock has affected the competitiveness of these refiners. As a result, the East Coast has seen closure of about 22 percent of its total refining capacity since Sep-tember 2011. Another refinery in the region is also expected to be idled in July this year, taking around 40 per-cent of the remaining regional refin-ing capacity offline.

The U.S. East Coast has tradition-ally been importing gasoline from countries such as Canada, the UK, Vir-gin Islands, Netherlands, Spain and France. The Virgin Islands represent a major source of gasoline supply to the East Coast, but refinery closures have also affected the petroleum industry of the islands. The development has positioned European refiners from Netherlands, the UK, France and Spain at an advantageous position to supply gasoline to meet the expected surge in demand in the East Coast.

The European refining industry has also been experiencing a dif-ficult phase, as the Euro Zone debt crisis has affected credit availability and lowered the demand for refined products. This has led to widespread refinery closures, and caused regional pure-play refining major Petroplus to seek administration, as the com-pany’s revenue was consumed by ris-ing crude oil costs. Many companies are either selling their refineries or turning them into storage units and oil terminals, as industrial output in Europe saw a decline of about 1.46 percent in the fourth quarter of 2011 compared the previous quarter, lead-ing to a 5.6 percent decline in the consumption of petroleum products over the same period.

Increasing imports from interna-tional markets seems to be the only viable option to meet the impending increase in gasoline demand along the U.S. East Coast, and Europe looks to benefit greatly from this.

Crisis-hit European Refiners to Reap Rewards from the U.S. East Coast


Natural gas is well on its way to a bright future, according to a new re-port from the International Energy Agency (IEA), which projects China will more than double consumption over the next five years while lower prices from the unconventional gas revolution will continue to benefit the United States.

The report, “Medium-Term Gas Mar-ket Report 2012,” released at the World Gas Conference, June 4-8, details how China will become the third-largest gas importer behind Europe and Asia Oceania, driving a 2.7 percent average annual growth in global gas demand through 2017 (up from the 2.4 percent annual growth rate predicted in last year’s report). During the period, North America will become a net liquid natu-ral gas (LNG) exporter, while Japanese imports will increase, although by how much will hinge on the country’s nu-clear policies.

“Medium-Term Gas Market Report 2012,” part of a series of IEA medium-term market reports also featuring coal, oil and renewable energy, pres-ents detailed forecasts for the next five years of sectorial demand by region plus supply and trade. An in-depth analysis addresses infrastructure in-vestments in LNG and pipelines.

The release of the report came a week after the IEA issued a special re-port, “Golden Rules for a Golden Age of Gas,” which looks at the environ-mental impacts of unconventional gas production and how those im-pacts are being — and might be — ad-dressed over the next 25 years.

“The Golden Age of Gas has dawned in North America, but its continued expansion worldwide depends on pro-ducing gas and bringing it to the mar-ket in a way that is friendly to inves-tors and society as a whole,” said IEA executive director Maria van der Ho-even. “As gas competes against other energy sources in all market segments, notably in the power sector, pricing conditions are a key element to keep it competitive everywhere. This medi-um-term report aims to facilitate in-vestor decisions by providing a timely, in-depth analysis of the current trends and what we expect to take place over the coming five years.”

While “Medium-Term Gas Market Report 2012” sees growth for natural gas in most regions, low economic growth, relatively high gas prices and strong growth of renewable energies will limit demand in Europe. Success-ful and timely developments of new resources should lift gas demand in the Middle East, Africa and Asia.

The report identifies other future sources of supply, with most incre-mental gas production coming from the former Soviet Union region and North America. Further growth in unconventional gas will come most-ly from shale gas in North America plus tight gas and coal bed methane (CBM) production elsewhere. Shale gas developments in other regions are likely to be concentrated in China and Poland.

Other key findings of the report include:

A quarter of new gas demand will come from China, another quar-ter from the Middle East and other Asian countries together, and a fifth from North America.

Low gas prices will result in gas generating almost as much elec-tricity as coal in the United States by 2017.

Global gas trade will expand by 35 percent, driven by LNG and pipe-line gas exports from the former Soviet Union region; most of this expansion occurs from 2015 on-ward, following a period of further tightening of global gas markets.

Natural gas is the most important commodity with no global market price yet. Divergence among re-gional gas prices will decline but remain a feature of global gas mar-kets. The emergence of a spot price in Asia would aid regional produc-ers and buyers.

“Medium-Term Gas Market Report 2012” is now on sale and may be or-dered from the IEA Bookshop the as-sociation’s website www.iea.org.

The IEA is an autonomous organi-zation that works to ensure reliable, affordable and clean energy for its 28 member countries and beyond.

CRTS Inc. Achieves ISO 9001:

2008 CertificationCRTS Inc. is now certifiable —

at least in regards to its quality in concerned. The Aegion Corp. sub-sidiary has achieved ISO 9001:2008 certification, the company an-nounced, for its technologies, ser-vices and products to protect pipe-lines from corrosion.

The company elected to pursue ISO certification to satisfy require-ments for the significant Wasit gas project in Saudi Arabia, as well as to distinguish itself from other service providers in the industry. The ongoing Wasit project in Saudi Arabia, which is the largest inter-nal weld joint coating project in CRTS history, provided opportuni-ties to meet nearly every ISO qual-ity requirement.

All CRTS employees, along with management, participated in this strategic quality achievement. Rus-sell Langley, management repre-sentative and executive vice presi-dent, along with quality engineer Amber Brown, led the effort at the Tulsa, Okla., facility. The process usually takes about one year to complete. However, with support from its parent company, Aegion, CRTS was able to achieve certifica-tion in less than six months.

CRTS holds multiple national and international patents. One of the most significant patents per-tains to the internal robotics used for the cleaning and application of coating products (fusion-bond-ed epoxies, liquid epoxies, plural component liquids, etc.) on inter-nal pipeline welds.

In addition to providing internal corrosion protection through the robotic application of coatings to joint welds, CRTS has protected vi-tal infrastructure such as highways, bridges and water treatment plants worldwide by providing industrial process equipment for the appli-cation of fusion bonded epoxy to concrete reinforcing steel (rebar) since the 1970s.

CRTS is headquartered in Tulsa, with sales offices in the United Kingdom, Brazil and Saudi Arabia.

IEA Reports Bright Future for Natural Gas in Next 5 Years

STRAIGHTLINE BUILT SWIVELS

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Locating obstacles underground is an important practice in maintaining safety when installing new underground in-frastructure. Subsurface Instruments Inc. (SSI) has unveiled the revolutionary All Materials Locator (AML), an exclusive scientific instrument that will change the way people locate underground objects.

The AML unit is a highly sensitive tool that uses advanced, ultra-high microwave frequencies to find nearly any subsur-face object. Unlike the deficiencies of ground penetrating ra-dar (GPR), the AML will function with accuracy in clay, wet soil, snow or standing water without the need for a separate transmitter and receiver, wires, clips or clamps.

“The instrument was specifically designed to locate buried PVC pipes for the water, sewer, power, telecom, cable and gas industries,” said Jim Hokanson, SSI general manager. “The AML’s patented technology not only locates PVC but finds all other types of pipes as well.”

With its ergonomic handle, easy-to-read target indicator LCDs, and adjustable sensitivity switch, the AML makes lo-cating subsurface objects more efficient than ever before.

The newly released AML unit implements a cutting-edge ground-penetrating radio frequency to detect objects that GPR may not. By simply sweeping the target area, left and right target indicators on the AML will activate to notify the operator that an object has been detected. The operator then rotates the AML until both the left and right target indicators light simultane-ously, signaling that the underground object is in parallel align-ment with the unit. Parallel alignment with the underground object is also confirmed visually with a laser target marker that is projected onto the ground. After obtaining proper alignment, the operator will continue scanning the ground in alignment to map out the object’s length and run direction.

“In order to use the AML to its potential, the user needs to know where to start, and what he is looking for,” Hokan-son said. “It takes some training and practice to hone one’s skills, but customers that know how to use it live by it.”

SSI’s talented team of technicians and developers has worked tirelessly to design, test and manufacture the revo-lutionary All Materials Locator. Through dedicated research and development, SSI has created a game-changer in the underground locating field. Able to locate almost any sub-surface material (plastic, metal, wood, etc.), you can now locate and identify almost any metallic or non-metallic un-derground object with an edge.

The AML is a highly sophisticated piece of equipment, therefore SSI encourages new operators to attend free factory training sessions at the company’s Green Bay, Wis., location. This class includes one hour of classroom instruction and three hours of field demonstration.

Dozens of reps across the United States have joined SSI in distributing the AML to water, gas, utility and cable compa-nies nationwide. Designed specifically for the needs of these industries, the AML’s lightweight, patented technology locates subsurface objects faster, while maximizing job time efficiency.

New Locating Device a Game-Changer

Siemens Introduces Next-Gen Flow Metering ToolThe next generation of flow meter-

ing is here. Siemens Industry Automa-tion Division introduces the newest iteration of Coriolis flow measurement technology with the Sitrans FC430 dig-itally based flow solutions.

One of the most compact flow me-ters on the market, the Sitrans FC430 features a short build-in length, suit-able for liquid or gas applications with-in the process industry. The Sitrans FC430 is capable of optimizing a wide range of processes for increased pro-ductivity in industries such as chemical and pharmaceutical. The unit is ideal for multi-parameter measurement, and can be used in applications like fast fill-ing, batch control, blending and dos-ing, as well as for the measurement of gases or fluids.

The Sitrans FC430 features a com-

pact frame, high accuracy measure-ment of 0.1 percent, low pressure loss, extremely stable zero point and data update capabilities of 100 Hertz.

Innovative user friendly support tools provide direct access to all oper-ational and functional data, certificates and audit trails. The Sitrans FC430 is amongst the first Coriolis flow meters to offer SIL (Safety Integrity Level) 2 and 3 approval in hardware and soft-ware respectively, enabling maximum redundancy meeting the highest stan-dards of safety and reliability.

The highly automated production of the Sitrans FC430 ensures a flex-ible supply chain for rapid responses to customer inquiries. Very short lead times for tailor-made solutions are guar-anteed by assembly robots guided by sophisticated 3-D vision laser systems.

8th Annual8th Annual8th Annua

North American Pipeline Project Roundup

Listings Contributed by

The following oil and gas pipeline projects have been announced. Projects are in order of most recent approximate starting date. All projects are for 2012 unless noted.

Snelson Cos. Inc. was awarded a contract by Williams Northwest Pipeline GP for the installation of launchers and receivers and block valve replacement on 22-in. pipeline in Baker and Umatilla counties, Ore. Headquarters is undetermined. The superintendent is Donnie Adkerson. Approximate start date: July 23.

Midwest Underground Inc. was awarded a contract by NiSource to install 600 ft of 24-in. pipeline and 40 ft of 30-in. pipeline in Campbell County, Ky. Headquarters is Alexandria, Ky. The superintendent is Jim Cunningham. Approximate start date: July 10.

Rockford Corp. was awarded a contract by Ryckman Creek LLC to install 5.3 miles of 16-in. pipeline and 1.4 miles of 8-in. pipeline in Uinta County, Wyo. Headquarters is Hillsboro, Ore. The superintendent is Dickey Langston. Approximate start date: July 5.

Rockford Corp. was awarded a contract by Williams N.W. Pipeline for rerouting a 12-in. pipeline with launchers and receivers in Cowlitz County, Wash., and Columbia County, Ore. Headquarters is Kalama, Wash. The superintendent is Robert Boyd. Approximate start date: July 5.

U.S. Pipeline Inc. was awarded a contract by Williams Northwest Pipeline to install a gas cooler addition and perform piping modifications in Rio Blanco County, Colo. Headquarters is Rangely, Colo. The superintendent is Dan Bakken. Approximate start date: July 5.

Henkels & McCoy Inc. was awarded a contract by Spectra Energy for four anomaly digs in Muskingum and Noble Counties, Ohio. Headquarters is unknown. The superintendent is Paul Yankel. Approximate start date: unknown (announced July 2).

Rockford Corp. was awarded a contract by Williams Midstream to install 11.9 miles of 24-in. pipeline in Susquehanna County, Pa. Headquarters is Montrose, Pa. The superintendent is Mickey Langston. Approximate start date: July 2.

Dun Transportation & Stringing Inc. was awarded a contract by Evraz Inc./Enbridge to unload, haul and stockpile approximately 110 miles of 36-in. pipe in Kalamazoo County, Mich. Headquarters is the pipe yard. The superintendent is Greg Norman. Approximate start date: July 1.

Dun Transportation & Stringing Inc. was awarded a contract by TransCanada to load, haul and stockpile approximately 120 miles of 36-in. pipe in Cass, Lamar and Titus counties, Texas. Headquarters is the pipe yard. The superintendent is Mike Bruce. Approximate start date: July 1.

Indianhead Pipeline Services LLC was awarded a contract by Precision Pipeline LLC to concrete coat approximately 3,000 ft of 30-in. pipe in Bradford County, Pa. Headquarters is Troy, Pa. The superintendent is Mike McGill. Approximate start date: June 28.

Welded Construction LP was awarded a contract by Spectra Energy to take up and relay approximately 2,500 ft of 36-in.

pipeline and 4,900 ft of 30-in. pipeline in Montgomery County, Ky. Headquarters is Mount Sterling, Ky. The superintendent is Gary Gavlock. Approximate start date: June 28.

Indianhead Pipeline Services LLC was awarded a contract by Price Gregory International Inc. to provide foam services on approximately 22 miles of 16- and 24-in. pipelines in Lycoming County, Pa. Headquarters is Cogan Station, Pa. The superintendent is Mike McGill. Approximate start date: June 27.

Henkels & McCoy Inc. was awarded a contract by Texas Eastern to install 3,100 ft of 12-in. pipeline in Montgomery County, Pa. Headquarters is Cheltenham, Pa. The superintendent is Bill Adams. Approximate start date: June 25.

Indianhead Pipeline Services LLC was awarded a contract by C.J. Hughes Pipeline to perform seeding services on approximately 9.5 miles of 24-in. pipeline right-of-way in Wetzel County, W.Va. Headquarters is New Martinsville, W.Va. The superintendent is Andy “Whiskers” Plaskey. Approximate start date: June 25.

Indianhead Pipeline Services LLC was awarded a contract by Henkels & McCoy Inc. to concrete coat approximately 500 ft of 24-in. pipe in Monroe County, Pa. Headquarters is Effort, Pa. The superintendent is Mike McGill. Approximate start date: June 25.

Laney Directional Drilling Co. was awarded a contract by Sheehan Pipe Line Construction Co. for the installation of 1,650 ft of 42-in. pipeline via directional drilling in Prince William County, Va. Headquarters is on the jobsite. The superintendent is John Odom. Approximate start date: June 25.

Liberty Pipeline Services LLC was awarded a contract from Kinder Morgan for environmental inspection services for the Parkway Pipeline project, a 141-mile 16-in. diameter pipeline that will originate in Norco, La., and terminate in Collins, Miss. Liberty’s director for this project is David Ayers. Approximate start date is June 25.

Biglnch Fabricators and Construction Inc. was awarded a contract by Peoples Gas to install barred tees, 5R fittings, launchers, aboveground valve settings and several road bores in Champaign County, Ill. Headquarters is Fisher, Ill. The superintendents are Steve Enerson and Scott Petty. Approximate start date: June 18.

Pe Ben USA Inc. was awarded a contract by Project Consulting Services — Bakken Link to offload and stockpile approximately 95 miles of 12-in. pipe and approximately 8.4 miles of 8-in. pipe in McKenzie and Dun counties, N.D. Headquarters is Watford City, N.D. The superintendent is Dave McAlpine. Approximate start date: June 18.

Pedero Pipe Support Systems USA LP was awarded a contract by Welded Construction LP to install foam breakers and pillows on 27 miles of 24-in. pipeline in Fayette, Jessamine and Clark counties, Ky. Headquarters is Winchester, Ky. The superintendent is Raul Rivera. Approximate start date: June 18.

Sheehan Pipe Line Construction Co. was awarded a contract by Spectra Energy to install 4,400 ft of 22-in. pipeline including one 22-in. road bore and for the removal and abandonment of 4,300 ft of 22-in. pipeline in Roane and Morgan counties, Tenn. Headquarters


is Harriman, Tenn. The superintendent is Larry Acree. Approximate start date: June 18.

Snelson Cos. Inc. was awarded a contract by Pacific Gas & Electric for the following: 1) install 5,400 ft of 24-in. pipeline, 2) install 6,000 ft of 24-in. pipeline; and 3) install 3,500 ft of 24-in. pipeline in Santa Clara County, Calif. Headquarters for all three projects is unknown. The superintendent for projects 1) and 3) is Billie Davis, and for 2) is David Wix. Approximate start dates: unknown for 1) and 3) and June 18 for 2).

U.S Pipeline Inc. was awarded a contract by Williams Northwest Pipeline GP to install approximately 2.4 miles of 26-in. pipeline and 2.4 miles of 30-in. pipeline in Lincoln County, Wyo. Headquarters is Kemmerer, Wyo. The superintendent is Wayne Fontenot. Approximate start date: June 18.

Laney Inc. was awarded a contract by Troy Construction for road boring on 118 miles of 20-in. pipeline in Richmond, Scotland, Robeson, Bladen, Columbus and Brunswick counties, N.C. Headquarters is Maxton, N.C. The superintendent is Grady Keller. Approximate start date: June 15.

Pedero Pipe Support Systems USA LP was awarded a contract by Price Gregory International Inc. to install foam breakers and pillows on 2.5 miles of 16-in. pipeline in Monroe County, Ohio, and 3.5 miles of 16-in. pipeline in Wetzel County, W.Va. Headquarters is Moundsville, W.Va. The superintendent is Todd Burleson. Approximate start date: June 15.

Indianhead Pipeline Services LLC was awarded a contract by Precision Pipeline LLC to perform seeding services on approximately 12 miles of 24-in. pipeline right-of-way in Marshall County, W.Va. Headquarters is Moundsville, W.Va. The superintendent is Andrew “Whiskers” Plaskey. Approximate start date: June 14.

Laney Directional Drilling Co. was awarded a contract by Willbros to install 9,103 ft of 20-in. pipeline via directional drilling in Harris County, Texas. Headquarters is on the jobsite. The superintendent is Carlton Loftin. Approximate start date: June 13.

Foltz Welding Ltd. was awarded a contract by Marathon Pipeline for miscellaneous anomaly digs on 24-in. pipeline in unknown counties in Kentucky. Headquarters is unknown. The superintendent is Rich Torrence. Approximate start date: June 12.

Minnesota Limited LLC was awarded a contract by NiSource Gas Transmission & Storage to hydrotest 900 ft of 20-in. pipeline and take up and relay 5,400 ft of 20-in. pipeline in Adams and York counties, Pa. Headquarters is unknown. The superintendent is Larry Steenbergen. Approximate start date: June 12.

Northern Clearing Inc. was awarded a contract by Sheehan Pipe Line Construction Co. for clearing on approximately 12.25 miles of 16-in. pipeline, 2.5 miles of 10-in. pipeline and 4,000 ft of pipeline rights-of-way in Marshall and Wetzel counties, W.Va., and Greene County Pa. Headquarters is unknown. The superintendent is Dennis Bergman. Approximate start date: June 12.

Laney Directional Drilling Co. was awarded a contract by WHC to install 13,253 ft of 12-in. pipeline via directional drilling in St. James, Ascension, St. John the Baptist and St. Charles parishes, La. Headquarters is on the jobsite. The superintendent is Shelton “Bubba” Carlisle. Approximate start date: June 11.

Phillips & Jordan Inc. was awarded a contract by Rockford Corp. for clearing and grubbing on 13 miles of 24-in. pipeline right-of-way in Susquehanna County, Pa. Headquarters is Montrose, Pa. The superintendent is James Lane. Approximate start date: June 11.

Right-of-Way Clearing and Maintenance Inc. was awarded a contract by Precision Pipeline LLC for clearing on approximately 3.100 ft of 16-in. pipeline right-of-way in Ohio County, W.Va. Headquarters is unknown. The superintendent is Neil E. Kinneer. Approximate start date: June 11.

Rockford Corp. was awarded a contract by PG&E to install 2,100 ft of 24-in. pipeline in San Mateo County, Calif. Headquarters is Palo Alto, Calif. The superintendent is Richard “Shorty” Rhodes. Approximate start date: Jun 11.

Sheehan Pipe Line Construction Co. was awarded a contract by Transco to install 1.46 miles of 42-in. pipeline with launcher facilities and to the take up and replace 1.32 miles of 32-in. pipeline with 42-in. pipeline in Prince William and Fairfax counties, Va. Headquarters is Manassas, Va. The superintendent is Cotton Jordan. Approximate start date: June 11.

Pe Ben USA Inc. was awarded a contract by Ilva Pipe to offload, transport and stockpile approximately 25.5 miles of 36-in. pipeline in Lamar County, Texas. Headquarters is Paris, Texas. The superintendent is Jimmy Gregory. Approximate start date: June 8.

Want to see your project here? Send submissions to Associate Editor

Brad Kramer at [email protected] with the subject heading “Project Roundup.”



vsAmerican Augers & Trencor Share a Common Mission

HDD Trenchin ? By Bradley Kramer

Not Quite

g


here couldn’t be two more contrasting methods of installing pipe underground.

One is like threading a needle. The other resembles the work of a cleaver. One is typically used for hundreds of feet. The other for hundreds of miles. Yet, both processes have one goal in common: to connect a vital resource to the rest of the world via pipeline.

Horizontal directional drilling (HDD) and trenching sometimes seem at odds with each other, but oftentimes the two methods are used in conjunction with each other to install pipelines the most efficient way possible. It’s no wonder, then, that two of the biggest manufacturers in those two sectors share a common parent company. American Augers, established in 1970, and Trencor, established in 1981, are both brands under Astec Industries, established in 1972.

Astec Industries Inc. was founded in 1972 and is based in Chattanooga, Tenn. Between its more than 15

brands, the company manufactures equipment for asphalt road building, aggregate processing, pipeline and utility trenching, oil, gas and water well drilling and wood processing industries, with more than 200 products, from rock crushing and screening plants to hot mix asphalt facilities, concrete plants, horizontal directional drills, water, gas and oil drilling rigs, geothermal drills, milling machines, asphalt pavers, material transfer vehicles, trenchers and wood processing equipment. American Augers and Trencor are part of Astec’s Underground Group, which also includes GEFCO Inc., a manufacturer of portable drilling rigs for such industries as water wells and shallow oil and gas exploration.

Originally founded in Wooster, Ohio, American Augers specializes in large-scale directional drilling rigs, which are manufactured at the company’s 241,000-sq ft facility in West Salem, Ohio. American Augers has been

supplying the oil and gas sector since Day 1, says company president James Pfeiffer, a veteran of seven and a half years at the manufacturer and a pioneer of the HDD industry since 1984. American Augers became part of Astec Industries in 1999.

Originally established in Grand Prairie, Texas, Trencor can trace its origins back to the 1940s. Astec Industries bought the company in 1988, and the Trencor brand machines are now manufactured by Astec Underground, a part of Astec Industries’ Underground Division. The trenching machines have been built in Loudon, Tenn., since 2003, after moving from Texas. Like American Augers, Trencor also has been supplying oil and gas pipeliners from its inception.

Each company has its own management team with the industry experience and technical expertise to enable that company to grow and prosper in its target market, according to Charles Cunningham, vice president of sales and

T

napipelines.com24 North American Oil & Gas Pipelines | JULY 2012

marketing for Astec Underground. Each of the Astec companies has considerable autonomy and flexibility to organize and equip itself in a manner that maximizes its opportunities in its target market.

Between American Augers and Trencor, a pipeline installer has the bases covered, whether the job calls for an environmentally sensitive installation under a river or a heavy-duty cross-country mainline. Both brands are known for their rugged machines, and both build those machines with the oil and gas pipeline installers in mind.

Big Blue MachinesAmerican Augers drills are easy to

spot, with those solid blue frames. The company specializes in rigs with 100,000 to 1.1 million lbs of thrust and pullback power, and it has recently ventured into the realm of vertical drilling for the shale market. American Augers also manufactures a full line of auger boring machines, mud pumps and cleaning systems, product tooling and accessories for the pipeline installation sector.

“Our total focus is the 100,000-lb and above rigs,” Pfeiffer says. “That’s where we specialize and that’s what the oil and gas industry needs. They don’t need as many smaller rigs. The thing we hang our hat on is we specialize in the larger sizes. If you need a mid-size rig or

a maxi rig, you call American Augers.”Currently, American Augers is seeing a

trend in popularity with its 100,000- to 440,000-lb rigs, according to Dan Sharpe, vice president of sales and marketing.

“That’s sort of the sweet spot,” says Sharpe, who was working oil rigs in Oklahoma when he was 17 years old. “With natural gas and shale plays hooking up feeder lines, those are the most popular sized rigs.”

Pipeline contractors face several challenges throughout an installation project. HDD is one tool that allows them to circumvent obstacles. The method offers several benefits, Sharpe says, pointing out the impact on the environment as No. 1.

“With HDD, you can drill down underneath the root level, say, in a forest,” he explains. “Or if you come across a river or stream, you can drill well underneath the bedrock of the river or stream, so there’s absolutely no environmental impact. When you install a pipeline

underground, you don’t have to open cut. It saves the environment, but it’s also safer and you don’t have the restoration costs as you do with open cut.”

Despite the benefits of HDD, Sharpe says there are times when open cut is necessary.

“When you’re installing a long cross-country line or in rocky terrain, a big rock trencher is your only option,” he says. “It’s the only economical way to make a large trench cross country. Sometimes HDD and trenchers work in conjunction. When you’re in the open country, you can trench, but when you come across more sensitive areas, you can use HDD.”

American Augers’ foray into vertical drilling with its VR-500 model has been slow to catch on, Pfeiffer says. Despite a strong market with the shale boom and a new take on the technology, the VR series hasn’t penetrated the industry.

“It’s been a slow market to get into,” he says. “We’re a relatively late entry, and we’re bringing new technology to the industry. I’m not going to say it’s been gangbusters.”

The new technology American Augers is adapting to the vertical drilling market is the same technology that makes its HDD rigs unique: rack-and-pinion carriage drive.

“What we did is we took all of our expertise from HDD and applied it to an oil and gas rig,” Sharpe says. “The big thing with our HDD rigs is we don’t use cables. We use rack-and-pinion. We don’t use manpower to break up pipe. It’s more automated. We’re bringing that technology to the oil and gas industry.”

American Augers was the first company to replace cables and chain drive with rack-and-pinion, pioneering

James Pfeiffer (left), Dan Sharpe (center) and Charles Cunningham represent two of the most recognized brands in pipeline construction equipment. American Augers and Trencor con-tinue to churn out rugged machinery used to install pipe underground.

Sweet Spot: American Augers of-ficials have noticed a trend in the use of its 100,000- to 440,000-lb drill rigs. This DD-220 T offers 220,000 lbs of thrust and pullback force.


the technology that has become standard in HDD machines.

“It’s a challenge to change the industry,” Sharpe explains of the slow market entry for the VR drills. “There’s a comfort zone with the older technology, but when they see it in action and use it, they’ll find it’s safer and more efficient. With rack-and-pinion, you can push the drill head immediately. But in this industry, we’re not as well known, in so far as drilling the well itself. As far as getting our name out there, that has been our challenge. It’s not going as fast as we wanted, but it’s not bad either. We keep gaining ground.”

The characteristic that Pfeiffer and Sharpe say differentiates American Augers from its competitors is ruggedness.

“Our equipment may not be the

prettiest, but it’s known for being heavy duty and rugged,” Sharpe says. “Our machines are designed to last. It’s not unusual for one of our machines to have 20,000 to 30,000 hours on it. A lot of contractors will buy a new American Augers HDD rig, and the truss and rack lasts and lasts. They may buy new diesel engines or other parts, but the structure of machine is there for many, many years.”

In the TrenchesTrencor’s roots date back to 1945 with

the formation of the Jiffy Excavator Tooth Co. (Jetco) in Alhambra, Calif. After 15 years, the company moved part of its operations to Dallas and became known as Dallas Jetco. Trencher Corp. of America (Trencor) was established in 1981 in Grand Prairie, Texas. Trencor

and Jetco had many similarities in the products they manufactured, Cunningham says. Jetco specialized in the manufacturing of wheel trenchers, while Trencor designed and built the chain type trenchers.

“It was only natural that the two companies combine expertise and technical knowledge,” Cunningham says.

In 1984, Trencor purchased Dallas Jetco and changed the name to Trencor Jetco Inc., with headquarters in Grand Prairie. Astec Industries purchased the company in 1988. Shortly thereafter, in 1994, Trencor Jetco moved its headquarters to Grapevine, Texas, and officially became Trencor Inc. that same year.

Astec Underground was established in 2002, when Astec Industries purchased the Case line of utility trenchers and drills. The utility products were

In the trencheS: Trencor offers machines to suit any soil condition. Wheel trenchers are a popular choice in softer soils, while chain trenchers, like this T1660, are more suited for when conditions are rocky.


combined with the American Augers auger boring machines and maxi drills and the Trencor line of mechanical drive rock trenchers to create a broad lineup of underground construction solutions. While Trencor is still part of Astec Underground, American Augers was split off as a separate company again in 2006. Since 2003, Astec Underground has been manufacturing the Trencor machines at its plant in Loudon, Tenn. The utility trenchers and drills were sold to Toro in January this year. The company has added the Astec DP 2000 Double Pumper for use in hydraulic fracturing. Astec Underground also manufactures products for Heatec and other Astec companies.

Astec Underground’s Trencor lineup offers two styles of trenching machines for the oil and gas pipeline market. The chain trenchers offer a range in digging depths from 8 to 35 ft and widths from 12 to 96 in. Wheel trenchers offer digging depths up to 9 ft and widths from 32 to 66 in. However, Cunningham

says the most common diameters for transmission pipelines are 42 to 48 in.

“All our trencher models have a place [in the market],” Cunningham says. “Wheel trenchers are still a popular choice in softer soil conditions. Our chain trenchers are the choice when the digging conditions are rocky.”

Pipeline projects offer myriad soil types, but contractors need a solution to maintain efficient production during installation.

“In the right digging conditions, production can be greater than with excavators and/or blasting,” Cunningham says. “And, if blasting is restricted or not an option, chain trenchers may be the only option.”

Trencor has a long history of supplying proven, successful products to its pipeline customers, and Cunningham says the company’s “mechanical drive system offers reliability and durability” that other machines lack.

When installing a pipeline by trenching, whether chain or wheel

type machine, the challenge the contractors face, Cunningham says, is “pretty much the same as with any other methods — achieving the highest production possible with the least amount of resources so that profitability is maintained.”

That means choosing a trencher that best suits the project scope. Lately, Cunningham has seen a trend toward larger diameter pipe to install large-scale transmission lines. “If the trend toward larger diameter pipe continues,” he says, “it may cause us to look at developing machines that will be able to trench wider.”

While pipeline contractors face the challenge of efficiently installing pipe into the ground, Trencor (and by extension, Astec Underground) must meet the challenge of supplying their customers’ needs.

“It’s all about timing and anticipating the needs of customers and having equipment available,” Cunningham says. “Some projects are proposed and

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on the books for years before they take place. Some never happen after all the planning. It’s hard to anticipate.”

Market DriversCunningham and Pfeiffer both hinted

at new machines coming from Trencor and American Augers in the next few months, but neither would say what customers should be looking for. The bottom line is that whatever is in store, the end results will be heavy-duty, rugged machines to serve the pipeline market.

Lately, oil and gas pipeliners have been busy building up the infrastructure for the multiple shale plays throughout North America while awaiting word on the future of the pipelines stemming from the Canadian oil sands, such as the Keystone XL and the Northern Gateway pipelines.

While Pfeiffer says the remainder of 2012 looks like it will be a soft market for the manufacturer, the continued development of the shale plays has shown promise.

“It’s been very positive,” he says. “In Pennsylvania, we have many 100,000- to 200,000-lb rigs working. In the last 60 days, we’ve seen a drop in natural gas prices and activity has slowed some, but I think that will come back. We’re also excited by what’s going to be happening in eastern Ohio in the next two to three years.”

Sharpe sees the increased focus on natural gas production as a game-changer — not only for the industry, but for the United States and North America as a whole.

“We’re going to see natural gas change society,” he says, explaining that coal-fired electricity plants are becoming less economically viable. “We’re going to see them switch over to natural gas, and you’ll see more pipelines built to feed into those electricity plants. Natural gas is going to create a lot of work for contractors and our economy. It’s going to put people back to work.”

It doesn’t matter which side of the

political divide you fall on, Sharpe says. The domestic jobs that are created from the increased production of natural gas will benefit everyone.

“The jobs that are created when we’re drilling oil and gas wells are here in United States. When we’re laying pipelines to connect those wells, those jobs are in the United States — good paying jobs. When we’re putting down feeder lines and all the facility to produce that natural gas, again those jobs are here,” he continues. “It creates a ripple effect in the economy, and it’s all good. At the same time, we’re producing our own energy sources rather than sending money to other parts of the world. That is dead money. Instead we keep the money here, create jobs and continue to build the economy. That’s something that we, all the contractors and all equipment manufacturers, need to be talking about.”

Bradley Kramer is associate editor of North American Oil & Gas Pipelines. Contact him at [email protected].


It is widely accepted that there are bright days ahead for the natural gas industry. With the outlook for growing markets, abundant supplies

and competitive prices, it appears that both consumers and service providers are positioned to realize

great opportunities. One segment of the industry in particular that should do well is natural gas pipelines. Over the coming years, new gathering, intrastate and interstate capacity will be needed to deliver developing supplies to expanding markets (Table 1).

By Black & Veatch estimates, growing power generation demand alone could spur as much as 20 Bcf/day of new gas requirements over the next 25 years (Figure 1). Much of that daily load increase will require new pipeline capacity to support reliable gas supply delivery.

During the same time, Black & Ve-atch projects North American shale gas production will grow by nearly 40 Bcf/day (Figure 2). Several of the newly developed shale gas plays are found in basins that have minimal gathering infrastructure and are re-mote from large diameter pipelines. Significant new pipeline infrastruc-ture will be needed for these sup-plies to reach growing markets.

That said, the opportunities and general business model for getting new-build pipeline capacity into the market are changing, and these changes are significant for the parties involved. Some adjustments to the traditional business model for building new

Who Will Pay for F u t u r e Natural Gas Pipeline C a P a C i t y ?

MIDSTREAM INVESTMENTS

MIDSTREAM O&M EXPENDITURES

COMBINED IMPACT

U.S. Investment $200.2 Total O&M

Expenditures $28.9 Expenditures $229.1

Results Results Results

Avg. Annual Employment 104,579 Avg. Annual

Employment 20,760 Avg. Annual Employment 125,339

Income $141.3 Income $29.7 Income $171.0

Value Added $217.6 Value Added $43.1 Value Added $260.7

Output $424.5 Output $87.0 Output $511.5

State and Local Taxes $16.8 State and

Local Taxes $3.3 State and Local Taxes $20.1

Federal Taxes $30.9 Federal Taxes $6.0 Federal Taxes $36.9

A Look at the Financial Impact of Building Infrastructure to Meet Demand

By Greg W. Hopper

TABlE 1U.S. Midstream Investment Impact Summary for the 2012-2035 Period

(Cumulative Impacts in Billions of 2011 Dollars, Employment is Average Annual Jobs Supported)


Fecon Ad

Who Will Pay for F u t u r e Natural Gas Pipeline C a P a C i t y ?

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pipeline capacity may be necessary going forward.

At issue is the question of who will essentially “underwrite” the construction of new pipeline investments by signing long-term “firm transportation” contracts that pay for the new capacity. (Firm transportation capacity contracts typically require a monthly fixed payment for capacity, regardless of whether the contract holder flows gas through it or not.) Pipeline companies as a rule do not speculate when making new capacity investments. Returns on investment in the business do not reward excessive risk taking, and the construction of new pipeline capacity between two locations has a tendency of squashing the market price incentives for building new pipeline capacity. For that and other regulatory reasons, pipelines look to have most of an expansion’s capacity pre-sold with shippers before they build.

The most profound change in pipeline development is the shift in who is supporting the development process. Historically, new pipeline capacity expansions were contracted (or “subscribed”) by end users who required reliable supplies. Up through the late 1980s, most pipeline expansion contracts were executed by gas local distribution companies (LDCs) who required firm heating supplies for their residential and commercial customers.

Prior to FERC Order 436/636 which was largely implemented in the 1990s, LDCs purchased firm “bundled” sales services from pipelines. Today, LDCs and all pipeline customers, purchase firm transportation services which

2012 2014 2016 2018 2020 20262022 2024 2028 2030 2032 2034

90

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70

60

50

40

30

20

10

0

Bcf/D

LNG Export - Atlantic Electric Generation Industrial Commercial ResidentialUnited States Natural Gas Demand

2012 2014 2016 2018 2020 20262022 2024 2028 2030 2032 2034

Bcf/D

Bcf/D

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0

Shale Gas Production: North AmericaMarcellus ShaleEagle Ford ShaleBakken Shale

Haynesville ShaleHorn River ShaleUtica Shale

Barnett ShaleFayetteville ShaleNew Albany Shale

Montney ShaleWoodford ShaleAntrim Shale

they use to ship gas purchased from third party sellers.

Beginning in the late 1980s, on the heels of the Public Utility Regulatory Policy Act (PURPA) that gave rise to the rapid development of non-utility generators in many parts of the United States, an increasing number of pipeline expansions were subscribed by power generation shippers.

More recently, a larger percentage of the long-term contracting for new pipeline capacity projects has shifted “upstream” to gas producers and merchants who will use that capacity to integrate “downstream” and sell directly into end-use markets. For U.S. producers this represents a marked change from the more common business strategy of holding only enough capacity to sell into liquid pipeline hubs near the production field.

(It should be noted that western Canadian producers and marketers have a long history of contracting for firm pipeline capacity on TransCanada Pipelines and other systems to reach markets. This ramped up significantly in the 1980s as growing Alberta production outpaced the domestic Canadian market’s ability to consume that gas. With gas production in the Western Canadian Sedimentary Basin falling steadily, it should be noted that there is a large surplus of pipeline capacity exiting Alberta.)

One good example of a producer integrating downstream with pipeline capacity from a production area to an end use market is Statoil USA’s subscription to firm capacity on Spectra Corp.’s Texas Eastern Transmission (TETCO) pipeline expansion from the Pennsylvania Marcellus shale region to New York

City. The project will not only grow TETCO’s profits and share of the New York City pipeline capacity market, but it will enable Statoil to capture a significant share of the actual gas consumed. Another good example is Cabot Corp.’s commitment to capacity on the new Constitution Pipeline. That pipeline, to be constructed and operated by The Williams Companies, will enable Cabot to ship Marcellus production

to markets in New York and New England.

Of late, end users such as LDCs and power generators (utility and non-utility alike) have been less active in the new pipeline capacity market because the economic downturn has sharply curbed the growth in both a gas and electricity consumption. It remains to be seen how soon that growth will return and spur new pipeline construction, but the general consensus is that it will be the electric sector that leads the way and that the timing of growth will be tied to new U.S. EPA rules on emissions that force coal-fired generation to close in favor of new gas plants. Black & Veatch

believes that timing is towards the end of this decade.

Assuming the new development of gas-fired plants does take place as anticipated, the question for many regions of the country is, “Who will pay for the new pipeline capacity?” In certain markets investor owned utilities have shown a willingness to underwrite new pipeline expansions to serve their plants by subscribing to

long-term contracts. The best examples are found in the Southeast, Florida and California where large investor owned utilities — and not non-utility merchant generators — still account for the vast share of power generation.

In other power regions where non-utility merchants are the primary builder and operator of new generating capacity, it much less certain who will take the lead to make sure adequate pipeline capacity exists to ensure gas supply reliability to the power market. (Examples of merchant generation regions include the Mid-Atlantic, New England

and Texas.)There are a number of reasons for

the uncertainty about new pipeline capacity, but the most prominent may be economic. Non-merchant generators are not typically assured of being compensated by the mar-ket for holding firm transportation pipeline capacity. That is risky be-cause those pipeline contracts re-quire the generator to pay for the capacity, even if the plant is not called upon to produce and sell power by the local grid. In the early merchant generator days of the late 1980s and early 1990s, non-utility generators negotiated long-term power purchase agreements (PPAs) with utilities and other custom-


Assuming the new development of gas-fired plants does take place as anticipated, the question for many regions of the country is, “Who Will Pay for the neW PiPeline CaPaCity?” In certain markets investor owned utilities have shown a willingness to underwrite new pipeline expansions to serve their plants by subscribing to

long-term contracts.

ers that embedded the cost of firm transportation pipeline capacity in the contract. Those types of PPAs are rarely done these days, and in the process of eliminating them the risks of holding firm pipeline capac-ity have been shifted to generators who as a group are declining to take the risk.

So where does that leave the market and prospects for new pipeline construction? Stay tuned. The good news is that the looming disconnect between the need for new pipeline construction and a market structure that makes it clear(er) how it should be paid for is not lost on key stakeholders, in particular the power industry. This June, for example, the New York Independent System Operator (NYISO), in tandem with counterparts in Ontario, New England and the broader Mid-Atlantic, solicited proposals from

numerous consultants seeking analysis and recommendations on the reliability of natural gas service to supply the northeastern North American electric generation market. NYISO is an independent organization that oversees the coordination and operation of the New York electric transmission grid. NYISO interacts with and coordinates closely with other ISOs and Regional Transmission Organizations (RTOs) to insure the adequacy of electric generation and transmission capacity for reliable electricity service.

Among other things that study seeks to create greater understanding between the natural gas and electric industries, with the end-game being greater service reliability for consumers. Other organizations are undertaking similar efforts.

Gas-Power planning and reliability issues are exceptionally

complex, but one key takeaway of these studies is more general agreement on what it will take to get adequate pipeline capacity built. The gas and power industries both recognize that the cost of adequate new pipeline capacity is going to be steep, but more importantly that the lack of adequate pipeline capacity when it is needed most is far more expensive. That is a great place to start.

Greg W. Hopper is managing director in Black & Veatch’s Management Consulting Division where he leads the company’s Natural Gas and Power Fuel Markets practice and holds primary responsibility for client development and service delivery. Mr. Hopper is an expert in natural gas wholesale market issues, with emphasis on midstream assets including pipeline, storage and LNG import and peakshaving systems.



Just as storefront businesses rely on three key factors for success — loca-tion, location, location — much of the success in today’s fast-paced con-struction industry depends on a sim-

ilar proposition: production, production, pro-duction. When customers commit to projects, they want contractors to get the work done “yesterday,” and that’s when having the right equipment pays dividends.

For a Texas underground company that fo-cuses on building infrastructure for natural gas and hydrocarbon liquids, the acquisition of a bucket wheel trencher attachment signifi-

cantly increased its pipeline production. Bot-tom Line Services, which is headquartered in George West, Texas, about 60 miles northwest of Corpus Christi, used the machine on a re-cent pipeline project in the southern part of the state.

“We had been looking for a bucket wheel for some time when we were awarded a gathering blanket contract that consisted of laying 60 miles of 6- and 8-in. gathering lines of various lengths,” says John Blevins, vice president and general manager of Bottom Line Services. “The project area, spread over a 50-mile radius in and around LaSalle County, had

Bucket Wheel SpeedS production for texaS pipeliner

Bottom Line Services Increases Efficiency for 60-mile Installation

By Curt Grandia

Bottom Line Services fires up its bucket wheel trencher to increase productivity on a recent pipeline installation in Texas.

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the right types of soils and small rocks to make the bucket wheel a fit for the application.”

Bottom Line Services got its start in 2000 when Greg Blevins returned to southern Texas after working for 23 years in the oil and gas industry. Soon after, Terry and Lisa Jackson joined the company, bringing more than 40 years of pipeline construc-tion management experience with them. The company chose a Ver-meer bucket wheel attachment pow-ered by a Vermeer T655 Commander 3 tractor to get the job done.

“We rented the bucket wheel for the first two months to see how it would perform in those soil conditions,” Blevins explains. “Based on our evaluation, we decided to purchase the machine, and we’ve been working it ever since. It works excellent and has helped us increase our production an average of about 40 percent.”

This particular bucket wheel was designed specifically for the installation of smaller diameter cross-country pipelines. It can cut trench widths of 22, 24 or 28 in. and depths up to 80 in.

From Deep in the Heart of Texas

With 400 employees in its pipeline and field facility divisions, Bottom Line Services works primarily in southern Texas but has completed projects all over the state and into Louisiana, Mississippi, Arkansas and Oklahoma. The company started the gathering blanket project for Hopfield Services a year ago and completed the work in November.

Called “gathering lines” because they gather up liq-uids from multiple wells and funnel the liquid into larger transportation systems, the lines are regular carbon steel pipe and typically have 3 to 4 ft of ground cover.

“We might lay anywhere from a mile to seven or more miles of pipe in various locations, and so for bidding we worked with the customer to base everything off footage and a set price for the moves based on mileage,” Blevins says. “That is fair for the customer and for us.”

On these types of projects, Bottom Line Services will lay the pipe on the ground and do 90 percent of the welding above ground. Then the crew will cut the ditch, place the pipe and backfill.

“It’s a sequence, but here in south Texas we can get a lot of rain, so we don’t want to have too much open ditch,” Blevins adds. “The laying crew gets started by welding the pipe sections together, and then we’ll start trenching, lay-ing pipe in the trench and then backfilling. The main ben-efit of using a bucket wheel in these conditions is speed, but the ground conditions have to be good. We had tre-mendous amounts of rain during the project, and when the ground was so saturated we determined it was better

to wait a day or two to let it dry up.”Along with the bucket wheel, other equipment the pipe-

line crew used on the gathering lines included dozers, ex-cavators, backhoes and maintainers. With six welders on site to fabricate and lay the pipe, the crew generally in-stalled about a mile of trench in a day.

In Other Uses

In addition to using the bucket wheel on smaller pipe installations for gathering lines, Bottom Line Services em-ploys the machine for topsoiling on projects that require larger-diameter pipe.

“A lot of landowners request that we topsoil the first 8 to 18 in. and save that soil to the side for reuse,” Blevins notes. “We use the bucket wheel because of the speed and ability to save the topsoil to one side, and then after we cut the deeper ditch, we drop and cover our lines using the topsoil. When we have ideal soil conditions, we can achieve 50 to 60 ft per minute of production. In other ar-eas, even with challenging soil conditions, we can get 20 to 30 ft per minute.”

On gathering lines and for topsoiling operations, the benefit of using the bucket wheel, Blevins says, is speed. And the bottom line for Bottom Line Services is that speed equals production, production, production.

Curt Grandia is features writer at Two Rivers Marketing, based in Des Moines, Iowa, working on behalf of Vermeer.

Project DetailsOwner: Hopfield ServicesContractor: Bottom Line ServicesLocation: LaSalle County, Texas, and surrounding areaPurpose: Gathering pipelinesLength: 60 milesPipe specs: 6- and 8-in. diameter carbon steel pipe

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Over the RiveR

Michels’ Planning Process Ensures

Successful Crossing

By Jill Badzinski


Planning, preparation and experience are key components of the successful completion of an open-cut river crossing.

With all river crossings, the multi-faceted planning process gets under way months,

and sometimes even years, before an excavator starts digging or a pipe gets pulled. All river crossing projects are unique, but there are some steps that must be taken by contractors in preparation for all of them.

Michels Pipeline Construction, a division of Michels Corporation in Brownsville, Wis., prides itself in its inventive, industry-leading pipeline solutions, but ensuring the health and safety of its people and protecting the environment are integral components of the company’s core values. Michels goes to great lengths to implement and monitor comprehensive health and safety plans for its employees.

Safety begins with the crews that are performing the river-crossing jobs. It is critical for a Michels crew to never feel that safety has been achieved because the crew must never become complacent. It is an ongoing effort every minute of every day that work is performed. Michels achieves its stringent safety standards in a variety of ways, including a 6 a.m. meeting with all foremen, daily tailgate meetings with each crew and a preconstruction plan review of all water body crossings. Each job has a site-specific safety plan that addresses project-wide safety regulations and concerns, and project safety staff visits all crews each day.

As the safety efforts get initiated on the river-crossing projects, many other wheels also start spinning.

Navigating the regulatory process is a key step. River-crossing projects must be approved by multiple agencies, including the U.S. Army Corps of Engineers and Federal Energy Regulatory Commission (FERC), before any site work can commence. Michels Pipeline Construction has a set protocol for meeting the demands of the regulatory process. Among the steps taken to make the process a smooth one are getting permits from the client for all crossings and notifying all required agencies before the actual work begins.

Another important task accomplished early in the process is to gain an understanding of the geology and local geological features of a job. This knowledge is critical to the development of a work plan for a river crossing. One way to gain some of the information is to review what has already been studied by the owner, its consultants and the regulating agencies. Information in that review includes geotechnical reports and an understanding of any peculiarities to the specific crossing. It is critical for contractors to use all of that information in conjunction with their experience and pre-construction analysis to provide a safe and robust construction plan.

The length of the crossing, depth of the river, current velocity, marine traffic and regulatory mandates — all of which differ by project — are factors that can influence how a project is approached.


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A Spring Crossing

In the spring, Michels completed an 804-ft river crossing of a 24-in. diameter natural gas pipeline in southwestern Pennsylvania. The crossing spanned the Monongahela River, a 15-ft deep prime navigation channel with substantial barge traffic, between Carroll and Rostraver townships near Charleroi, Pa. Open-cut crossings of major rivers are uncommon in today’s environment. For this crossing, extensive efforts were made to successfully preserve water quality downstream and to meet all environmental concerns.

In February, crews from Michels and its subcontractor excavated the trench, which varied in width from 7 to 10 ft. Because of barge traffic in the area and the depth of the river, the water flow could not be diverted with dams and flume pipe to allow backhoes to dig the drench from the banks and the river bed. Instead, a spud barge and

crane with clamshell bucket were used for excavation. The bottom of the Monongahela River at the area of the crossing is primarily silt, which the Corps of Engineers dredges and maintains at various depths to accommodate barge traffic as well as runoff from storms and tributaries. The excavated material was loaded onto storage barges, which were tied off at specific locations until they were needed for backfilling the trench.

Because the river is a navigable waterway, no booms or silt curtains were required for the work, but the trench spoil did not travel beyond 25 ft of the trench. The trench spoil was contained to a small area by keeping the drag line under water and at grade, instead of bringing it out of the water. The material and depth of the crossing also helped with containment. All environmental work was monitored to ensure its compliance with FERC permits.

At about the same time, a

concrete encasement was formed and poured onto the pipe. Encasing a pipe in concrete stabilizes buoyancy during its installation and also helps protect it from unexpected impacts after it is placed in a river bed.

There was limited workspace adjacent to the Monongahela River crossing and required equipment to be barged to the east side of the river. Sheet pile docks had to be constructed so equipment and materials could get loaded on and off the barges. This temporary dock arrangement also provided the ability to complete a 170-ft bored crossing of a railroad and highway on the east side of the river.

The conditions of the Monongahela River had to be monitored so the work could safely progress during times when the water levels were not too high.

Lowering in the PipeWhile getting a quality crew assembled

is critical to any job, it is particularly important on jobs with unique challenges. For this job, it was essential to work with a riverboat captain, underwater divers and a Michels tie-in foreman with river crossing experience.

Before the pipe was pulled, it was welded on land into three sections. A pulling head was welded to the first section. The pulling head was attached to a pulling cable on the tug and the first section was pulled into the trench. A tail section was left on the bank so that a welder could weld the second section onto the first section. After the first two sections were pulled, a tail was again left on the bank to have the final section welded to it. Side booms were used to suspend each section until it reached a point in the water where the tug could begin each pull.

Before the pipe was lowered, divers inspected the trench to ensure no foreign materials, such as trees, metal or rock, were present. The divers also made sure no additional silt had filtered into the trench so the 10 ft of cover could be established.

Each of three pre-welded sections of pipe were pulled and welded into the river trench.

Once the pipe was in the trench, divers did a final inspection to make sure there


were no placement flaws or unexpected occurrences that would require adjustment. The divers specifically checked to make sure the pipe was resting along the centerline of the trench. Additionally, a survey was performed to verify the correct depth and centerline of the trench.

After that final inspection, a subcontractor began offloading the material excavated from the trench by clam bucket and placed it back into the trench.

Next, all restoration, including removal of the temporary sheet piling, was completed. Inspection personnel from Michels Quality Control, the owner and Army Corps of Engineers conducted a final review on site to make sure all specifications have been completed as designed.

Jill Badzinski is corporate writer and marketing special-ist for Michels Corp., based in Brownsville, Wis.

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Project Details Contractor: Michels Pipeline Construction

Location: Southwestern Pennsylvania

Purpose: Natural gas pipeline

Length: 804-ft river crossing

Pipe specs: 24-in. diameter steel

With all river crossings, the multi-faceted planning process gets under way months or even years before an excavator starts digging or a pipe gets pulled. All river crossing projects are unique, but navigating the regulatory process and ensuring safety are two key factors in ensuring a successful project.

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American Pipe Bending heat induction bends up through 42-in. outside diameter and 4-in. wall thickness, which meets and exceeds the ASME B16.49 pipeline spec. Being computer controlled, the company is able to offer a high degree of flexibility in terms of bend radii, angle and planes. In addition to providing high-standard quality, induction bending offers the ability to reduce butt welds on pipelines by bending single length pipe spools in multiple planes.

This process antiquates the archaic sand pack style of bending. The induction bending process uses electric power transmitted via a single turn induction coil, to progressively induction heat a narrow band of the section being bent. Relatively tight radius bends can be achieved without many of the adverse sectional and metallurgical effects associated with

traditional bending techniques.

The induction process directly and efficiently heats the section by inducing a circulating electric current throughout the pipe wall. This circulating current and the electrical resistivity of the material generates a localized heat band. Every parameter in the process is computer controlled ensuring precise execution.

Depending on material requirements, the bent pipe emerging from the

induction coil is cooled in a controlled manner by an air or water spray. This controlled cooling process maintains a localized heat band and promotes predetermined metallurgical characteristics. The pushing and bending forces are also continually monitored and recorded throughout the bending process.

For more information, visit www.apb-bend.com.


exPoPiPeline Product

CRC-Evans Advantage Bending MachineCRC-Evans Pipeline International’s Advantage Bending Machine is an incredible advancement in the world of pipeline construction. As the industry’s first and only bending machine that uses wedge technology, the Advantage Bending Machine provides powerful, fast, problem-free performance to reduce overall bending costs. By using a wedge to do the heavy lifting against the stiffback, large outboard cylinders are eliminated, along with the common reliability issues that accompany them. Instead of fluid leaks and breakdowns, the CRC-Evans Advantage Bending Machine provides consistent, dependable power needed to bend heavy-wall, high-strength pipes at higher speeds than ever before.

With the development of the

Advantage Bending Machine, advanced CRC-Evans engineering intelligently harnessed wedge power to revolutionize bending machine performance. The Advantage Bending Machine uses two small inboard cylinders to exert force against a wedge, exponentially augmenting the leverage force applied to the stiffback. Since less original exertion is required, the cylinders are smaller and fewer and therefore more convenient for faster performance when bending heavy-wall pipes.

These small cylinders also reduce leaks and need for maintenance, fostering a technology that is both environmentally friendly and more affordable. Beyond developing a revolutionary, smartly applied technology, the Advantage Bending Machine showcases the incomparable CRC-Evans team. These

individuals — with vast expertise and worldwide resources in place to help customers apply this innovation to its fullest potential — help to establish fluid operation and achieve top performance throughout any and all projects.

For more information, visit www.crc-evans.com.

American Pipe Bending Co. Induction Bending

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Darby Equipment can now ship its AccuBend state-of-the-art pipe bending measurement system with any bending package. The unit is thoroughly field-tested and ready on arrival. It arrives in a hard shell, compact, self-contained case. Accurate to within 1/10 degree, it employs advanced technology and is designed for ease of use to save time, money and headaches. It features two magnetic base transmitters that hold tight to the outside wall of the pipe regardless of weather conditions and emit serialized radio frequencies to a single receiver mounted at the operator’s stand. The relative angle is set by a simple flip of the switch on the receiver. The receiver also computes the net bend in the pipe regardless of the orientation of the bending machine. Operational simplicity and rugged reliability mark this measuring system. Like all Darby products, it is engineered and built to withstand the demanding challenges of pipeline right-of-way construction.

Other features are an automatic shutoff to preserve battery life and easy to read, continuous digital readout. Contractors and on-site operators will love the Darby bending measurement system because it eliminates potential injuries associated with the need to climb onto the pipe. It keeps bending work moving ahead with ease to save time and money. One AccuBend model will cover the whole range of pipe sizes.

Darby AccuBend measuring system joins the full line of pipeline construction equipment products that have earned a reputation for dependability and value around the world including hydraulic pipe

bending machines, mandrels, roller cradles, pneumatic lineup clamps, pipe facing machines and a full range of pipeline supplies.

For more information, visit www.darbyequip.com.


Darby AccuBend

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The E.H. Wachs Low Clearance Split Frame (LCSF) provides cutting and end prep/beveling on pipes ranging from 2- to 48-in. outer diameter (OD), covering

most pipe wall thicknesses and material. Pipeline contractors are able to produce weld preps for maintenance of aging pipeline infrastructures easily and efficiently. Using the LCSF, pipeline contractors can safely cold cut and bevel pipe where hydrocarbons are present, greatly reducing potential harmful conditions.

The Wachs Split Frame has been engineered to open and mount around the OD of inline piping, or it can be slipped over an open end. Form tool machining provides high-speed beveling on pipes with up to 1-in. wall thickness.

A combination of steel and aluminum components contributes to the LCSF’s strength and portability. The LCSF sets up quickly and easily (typically by one operator) to shorten downtime and operates in a wide range of climates. The full roller bearing construction contributes to its long life. This OD mounted cutter makes weld-ready preps and can perform counterbores to match existing pipeline, increasing productivity.

For more information, visit www.ehwachs.com/Industrial-Products/.

The Sawyer Quick-Set 205CS bevel machine is a lightweight machine for all beveling needs in the shop or in refinery work, sized for cutting pipe or tubing. Four sizes of the Quick-Set will cut pipe or tubing ranging from 1½ to 20 in. This unique machine is designed for easy setup and operation, able to perform a smooth, accurate cut every time. The user-friendly saddle design includes a full 360-degree travel ring. The split frame allows installation over the top or the end of the pipe and the machine’s sliding adjustment arms require no spacers.

Sawyer’s Compact 200C beveling machine suits work on mainline and gathering systems. Its heavy-duty steel and cast aluminum construction maximizes the life and performance of

the machine. The Compact features a saddle design and enclosed gearbox like the Quick-Set model. It is easy to set up, install and remove anywhere on the pipeline and is available in a variety of sizes to cut pipe from 3 to 60 in.

The Sawyer Motor Drive Attachment converts a manual beveling machine into an electric motor drive for increased production. Variable speed options make it great for flame or plasma cutting and it can operate forward or reverse.

The Out-Of-Round Attachment removes the problems faced with cutting and beveling disfigured pipe. It is able to glide around the perimeter of the uneven pipe at an appropriate distance to accurately bevel and cut the pipe.

For more information, visit www.sawyermfg.com.


E.H. Wachs Pipe Bending and Beveling Equipment

Pipetech offers specialized pipeline construction equipment sales and rental worldwide, with a lineup includes Hydraulic Pipe Bending Machines, Bending Dies and Bending Sets, Pneumatic “Self-Centering” Wedge Mandrels, Hydraulic Wedge Mandrels, Hydraulic Disk Mandrels, Surebend Measuring System and Internal Pneumatic Lineup Clamps, as well as a diverse line of pipeline supplies.

Pipetech carries a full range of pipe bending dies and sets. All dies are precisely machined and polyurethane-lined to protect the pipe from damage during the bending process. All polyurethane-lined bending sets

are manufactured and designed to fit all model and most brand name hydraulic pipe bending machines. Special sizes are available upon request.

The company’s benders are able to handle high yield, heavy wall pipe. All machines have high flow hydraulics and offer air compressors for mandrel operations. Bending machines are available in pipe sizes ranging from 6 to 20 in., 16 to 30 in., 22 to 36 in., 38 to 48 in. and 48 to 60 in.

The Surebend measuring system saves time, increases safety and ensures a quality bend for all pipe sizes.

For more information, visit www.pipetech.net.

Pipetech Bending Sets

Sawyer Pipe Cutting and Beveling Machines

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Deadline: 9.30.12Benefits Include:• ListingintheOnlineBuyer’sGuide

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Beveling machines are a necessary but often overlooked item on most pipeline jobs. However, the bevel is a crucial part of the pipe joining process, and the right beveling machine can boost production on the jobsite. Shield offers both band type (on the left above) and saddle type (on the right) beveling machines at the best prices and the fastest delivery. The beveling machines are of top quality and proven on hundreds of pipeline jobs worldwide.

Beveling bands range in size to fit pipe diameters from 6 to 146 in. Saddle type machines range from 3 to 60 in. Just tell Shield what diameter pipe you’re working with and which type of beveling machine you prefer, and the company will send you a quote on price and delivery. Additionally, the company will also include the prices of the more popular options available for each beveling machine.

These beveling machines are made in Tulsa, Okla., and rival any value available on the market.

For more information, visit www.shieldintl.net.

Shield International Pipe Beveling Machines

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seminars, conferences and meetings.The position requires a Bachelor’s

degree in Engineering; a Professional Engineer License; and eight years of experience with federal and state gas pipeline safety related regulatory re-quirements. The position also requires direct experience in the gas utility in-dustry or regulatory oversight of gas utilities in the areas of design, con-struction, operation, or maintenance. At least four years of the experience must have been in responsible super-visory capacity. The position may be filled in Albany or New York City. Mini-mum Salary $109,213/year + Benefits

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North American Oil & Gas Pipelines Calendar

July17-20 Florida Energy Pipeline Association’s Summer SymposiumRosen Shingle Creek HotelOrlando, Fla. Web: www.floridapipetalk.com

24-26 Deep Gulf Galveston Island Convention CenterGalveston, TexasWeb: www.deepgulfconference.com

31-Aug. 2 Gas Operations & Leadership Summit Midwest Energy Association Iowa State University Ames, IowaWeb: www.midwestenergy.org

August13-17 External and Internal Corrosion Direct Assessment (ECDA/ICDA)ChicagoWeb: www.gastechnology.org

19-22 ASCE Pipelines Conference American Society of Civil Engineers (ASCE)Fontainebleau ResortMiami Beach, Fla. Web: http://content.asce.org/conferences/pipelines2012

21-22 Western Regional Gas ConferenceTempe Mission Palms Hotel and Conference Center Tempe, Ariz. Web: www.westernregionalgas.org

27-29 Tulsa Pipeline ExpoTulsa, Okla.Phone: (877) 300-4852E-mail: [email protected] Web: www.tulsapipelineexpo.com

September10-14 IPLOCA 44th Annual ConventionIstanbul, Turkeywww.iploca.com

13-15 National Gas RodeoMoody ParkFairview Hts., Ill. Web: www.midwestenergy.org

19-21 Oil & Gas Critical Infrastructure and As-set Security Forum 2012Vienna, AustriaE-mail: [email protected]: www.ogassetsecurity.com

24-28 International Pipeline Conference & Expo Hyatt Regency Hotel and TELUS Convention CenterCalgary, AlbertaWeb: www.internationalpipelineconference.com

30-Oct. 3

Autovation Utilimetrics Alliance for Advanced Metering & Data Management SolutionsLong Beach Convention CenterLong Beach, Calif.Web: www.utilimetrics.org

october1-5

Transmission Pipeline Design and Con-structionChicagoWeb: www.gastechnology.org

9-10 Opportunities in Utility Construction ConferenceWilmington, OhioWeb: www.oucconference.com

december3-5 Arctic Technology ConferenceHoustonWeb: www.arctictechnologyconference.org

The Events Pipeline Conferences, Meetings & Trade Shows

Advertiser Website Page #

Alaska Oil & Gas Congress ................. www.AlaskaOilandGasCongress.com ....19

Astec Underground .............................. www.astecunderground.com ...............48

Big Equipment Handbook.................... www.napipelines.com ..........................33

Dragon Products Ltd ............................ www.dragonproductsltd.com ...............13

E-Z Line Support Company Inc ............ www.ezline.com ....................................11

Fecon Inc. ............................................. www.fecon.com ....................................29

Flexovit USA Inc. .................................. www.flexovitabrasives.com ..................37

Girard Industries ................................... www.girardindustries.com ....................23

Griffin Dewatering ................................. www.griffindewatering.com ....................5

Griffin Dewatering ................................. www.griffindewatering.com ..................25

Griffin Dewatering ................................. www.griffindewatering.com ..................45

Horizontal Technology Inc. ................... www.horizontaltech.com ........................3

International Pipelie Expo ..................... www.InternationalPipelineExposition.com .... 26

Advertiser Website Page #

Mattracks .............................................. www.mattracks.com .............................39

McLaughlin ........................................... www.mightymole.com ..........................15

Mesa ..................................................... www.mesaproducts.com......................45

No Dig Show 2013 ............................... www.nodigshow.com ...........................47

OUCC ................................................... www.oucconference.com .....................35

Pemberton Inc. ..................................... www.pembertoninc.com ......................27

Precision Pigging, LLC ......................... www.PrecisionPigging.com ..................31

Rig Source ............................................ www.rigsourceinc.com ...........................2

Sawyer Manufacturing ......................... www.sawyermfg.com ...........................38

StraightLine HDD ................................. www.straightlinehdd.com .....................17

TD Williamson ...................................... www.tdwilliamson.com ...........................7

The HDD Co. ........................................ www.hddcompany.com ........................21

Vacuworx .............................................. www.vacuworx.com ..............................41

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