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PIPELINE NEWSSaskatchewan’s Petroleum Monthly Canada Post Publication No. 40069240
December 2012 FREE Volume 5 Issue 7
Cobra Industries Ltd. of Delisle builds 400 - bbl. tanks. Alex Karpenko can be seen welding a ange. See story Page A24. Photo by Josh Schaefer
MADE INMADE IN
SECTION A3 Re nery expansion complete
4 CAODC forecasts 2013 blip
5 Close look at fracking
6 Editorial
7 Opinion
11 W. Bre Wilson rede nes success
INSIDE
SECTION C1 CAODC drills MPs
3 Grit "cold starts" in NB
8 Blue Spark pulse tool
10 Oil eld career day
14 Paradise Hill model for Husky
SECTION B1 Transi oning from one-o to manufacturing
3 Bee ng up an ag product for the oil patch
6 Fleet Energy opens
9 Magna Fab now in Redvers
Stacey [email protected]
PIPELINE NEWSNEWSSaskatchewan’s Petroleum Monthly
Jan 2013 FocusContact your Sales Rep
to be a part of the focus edition
SE Sask and SW Manitoba - for all of your advertising needs contact:Ph: 306.634.2654 Fax: 306.634.3934
Cindy BeaulieuSales Manager
Candace [email protected]
Deanna [email protected]
Kristen O’[email protected]
Teresa [email protected]
NW Sask - for all of your advertising needs contact:
Cell: 780.808.3007 Fax: 780.875.6682
Randi [email protected]
SW Sask - for all of your advertising
needs contact:Ph: 306.773.8260 Fax: 306.773.0504
WORKING IN THE COLD
A2 PIPELINE NEWS December 2012
PIPELINE NEWS December 2012 A3
TOP NEWS
Day Day Construction Ltd.Construction Ltd.
Lease ConstructionLease ConstructionLease Restoration • MulchingLease Restoration • Mulching
Carnduff, SK.Carnduff, SK.Phone: (306) 482-3244Phone: (306) 482-3244
By Brian ZinchukPipeline News
Regina – Seven years from conception, four-and-a-half years of construc-
tion and a cool $2.66 billion later, it’s done. Th e Consumers’ Co-operative
Refi neries Ltd. expansion has been completed.
Scott Banda, CEO for Federated Co-operatives Ltd., spoke to Pipeline News by phone on Oct. 26 after the announcement. He said, “Today we had
the offi cial announcement of the start-up of section V. As of Wednesday, Oct.
17, Section V started up and we are ramping up. It’s up and running!”
“We maxed out at 5,000 people on this site at the peak of construction.
Th ere were two pieces of our construction: Section V and the revamps. Th e re-
vamps, we’re still a couple months from fi nishing. But we will add 45 per cent
capacity to our facility. Th at takes us up to 145,000 barrels a day.”
Th ere were 8,000 person-years of construction, with an economic spinoff of
over $5 billion dollars.
He said, “To get us through that, about 150 companies worked on the con-
struction. Today we’re pretty excited to celebrate it’s up and producing.
“One advantage of our refi nery is we’re very fl exible on crude weights.
We run them all through our facility and yes, part of it does come out of the
oilsands.
Southeast Saskatchewan crude. Is the “wrong way on the pipeline,” and
goes the other direction, however. But Lloydminster crude fi nds its way to
Regina.
“Depending on what the economics are, we can move between light, heavy,
sour or sweet. Th at’s what gives us one of the advantages on the economic side.
We can move as we have to, to ensure our production, but also to accommodate
the economics,” Banda said.
Saskatchewan’s daily production of crude oil has risen from roughly
425,000 bpd over the past 10 years to 440,000 bpd. Th e refi nery will be dealing
with some of that increased production, particularly on the Lloydminster side.
“Anything that’s up the pipeline, by and large, will come into our facility.”
“Part of our story here is our ownership. As a co-operative, we’re Western
Canadian-based, this is a massive investment in this region in Western Canada.
In Saskatchewan, in particular, in the city of Regina, this will add another 100
permanent jobs. Th ere are 800 permanent employees there, plus another 1,000
we use on annual turnarounds. Th is is, from our perspective, a commitment to
Western Canada’s long term viability. We believe in it. Th is is our home, here,
in Western Canada, of own ownership and retail co-operatives.
“Th at’s a big piece of this story. We have made a massive commitment to
the energy business to be here for the long term.”
Section V will see largely gasoline and diesel production.
On Oct 6, 2011, a fi re in an older part of the refi nery injured several work-
ers and damaged one of the areas being revamped. Th at area requiring extensive
rebuilding.
“Th at was in the area where the revamps are. We’re probably about two
months away from where we want it. Th e end of December, early January, we
should have that all rebuilt. Where the incident did occur, we tore it right out
and rebuilt a whole lot of that facility in that area.
“It has put us back a little bit”
Th e fi nal dollar amount, $2.66 billion, was higher than what was initially
projected. “Th e additional cost was productivity. We didn’t get the productiv-
ity we thought, on site. (Th ere were) challenges in labour, in Western Canada,
in this economy. And frankly, not fully appreciating working in live, existing,
operating units aff ected our productivity. Costs escalated on us. Th at’s not
something we’re really excited about, but that’s the reality.
Asked about any more future expansions, Banda said, “Th is maximizes pro-
duction from this facility. In other words, is a Section VI likely? Not likely. In
order to build a new section, you would have to basically build a new refi nery
on the same site.
“Th is maximizes the ability of the process units we have on site. Further
expansion on this site – never say never – is not very likely.”
“Th is growth was a refl ection of the growth on the retail side. We built this
to accommodate where we are right now with our retail,” he concluded.
As seen in August 2010, this is the main area of the Sec on 5 expansion of the Consumers’ Co-op-era ve Re neries Limited (CCRL) re nery complex in Regina. The major com-ponents visible are, from le : green pipe racks that carry the arteries of the facility; between the white and red cranes are three small towers that are part of the gas concentra on unit; below them, on the pipe racks are grey n-fan cooling units; to the right of the yellow crane and inside the green structure is the catalyst regenera-tor; lying below it and to the right are the reactor and main frac ona ng col-umn, awai ng installa on; the next two grey towers are the prefrac ona on tower and the stack of the prefrac ona on heater.
File photo
Co-op Re nery expansion complete
A4 PIPELINE NEWS December 2012
BRIEFS
Briefs courtesy Nickle’s Daily Oil Bulletin
By Geoff LeePipeline News
Calgary – Th e 2013 drill-
ing forecast of 10,409 wells by
the Canadian Association of
Oilwell Drilling Contractors
will be hard to digest for some
members who were served the
news during an association
breakfast on Nov. 13.
Th e CAODC forecast is
six per cent below the expect-
ed 2012 year-end well count
of 11,067.
Th e association, that rep-
resents the Canadian drilling
and service rig industry, ar-
rived at the lower well count
for 2013 based on continued
uncertainty around commod-
ity prices.
Th e well count also re-
fl ects the challenge of more
complex drilling programs
that require more time to drill
– an expected average of 11.4
days to drill a well in 2013.
CAODC expects the
10,409 wells drilled in 2013
will generate an average of
118,401 operating days.
Th at’s fewer than the 2012
year-end forecast of 126,167
operating days and an average
rig utilization rate of 44 per
cent.
CAODC projects fl eet
utilization in the fi rst quarter
of 2013 to be 60 per cent (or
498 rigs) with 44,367 operat-
ing days in this period.
Second quarter activity
that includes spring breakup
is projected to have an average
utilization of 20 per cent (166
rigs active) and 14,789 operat-
ing days. Th is projection mir-
rors second quarter activity
seen in 2012.
For the third quarter of
2013, the forecast calls for a
35 per cent utilization (or 291
rigs) and 25,925 operating
days.
Th e fourth quarter of 2013
will be higher with the ramp-
up for winter drilling.
Th e CAODC forecast
pegs fourth quarter utiliza-
tion at 45 per cent (374 active
rigs), similar to current activ-
ity levels with 33,320 operat-
ing days.
CAODC predicts the
registered rig fl eet will begin
2013 with 830 rigs includ-
ing 30 rigs added to the fl eet
through 2012, but no further
expansion is anticipated in
2013.
“It’s more likely contrac-
tors will retire older equip-
ment,” said CAODC presi-
dent Mark Scholz.
Th e retirement of older
equipment has been an ongo-
ing trend over the last three
years as the newer, more ad-
vanced equipment is better
suited to explore unconven-
tional plays.
Th e activity level in 2013
is projected to be slightly be-
low 2012 activity levels, but
industry will remain focused
on attracting back the skilled
workers lost during the 2009
downturn and on investing in
new employees.
CAODC members con-
tinue to cite skilled labour
shortages as a signifi cant chal-
lenge.
Th e drilling and service
rig sectors’ manpower chal-
lenges are compounded by the
fact that the rigs are a recruit-
ing ground for other oil and
gas sectors.
CAODC also released
revisions to its fourth quarter
projections for 2012. Th e re-
vised numbers refl ect operator
budgets tightening due to un-
certain commodity prices.
Average rig utilization for
the fi nal quarter of 2012 is ex-
pected to be 45 per cent (or
374 rigs). Operating days will
be approximately 33,320.
Th e level of activity in
2012 is stronger than 2010
(when industry attained
41 per cent utilization and
119,303 operating days) but
not as strong as 2011 (52 per
cent utilization and 145,118
operating days).
CAODC forecasts drillingblip in 2013
A Canadian patent has
been granted to CO2 Solu-
tions Inc., which covers the
use of a biocatalyst for the
effi cient capture of carbon
dioxide.
CO2 Solutions, an inno-
vator in the fi eld of enzyme-
enabled carbon capture
technologies, believes the
patent may have signifi cant
potential for application in
the Alberta oilsands, an area
of current opportunity for
CO2 Solutions and where
pure CO2 can be produced
at high process temperatures
for enhanced oil recovery or
geologic sequestration.
Th e main application
of the patent includes high-
temperature CO2 capture
and production processes
and mineral-carbonation
opportunities where the bio-
catalyst, which includes the
enzyme carbonic anhydrase,
may be retained in the CO2
absorption phase to reduce
denaturation and losses in
the mineral material, respec-
tively.
In a prepared state-
ment, company president
and CEO Glenn Kelly said
the newly-granted patent
provides a process option in
a number of large industry
applications, including in oil
and gas production.
“It further strengthens
our already signifi cant intel-
lectual property in Canada
and adds important value
to our technology scale-up
and commercialization pro-
gram.”
CO2 Solutions receives carbon capture patent
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Plus all post chemo patients receive an additional 10% off.
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(Strip Mall by Wal-Mart)
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Saxon Rig 170 was working for Williston Hunter just north of the U.S. border. Williston Hunter has been very ac ve in the area. Photo by Brian Zinchuk
PIPELINE NEWS December 2012 A5
BRIEFS
Briefs courtesy Nickle’s Daily Oil Bulletin
Saskatchewan’s active
drilling rig count hovered
around the 84 mark for much
of the early part of Novem-
ber. Th at is roughly 20 fewer
than the same time the year
previous, but about 12 more
than what was seen in 2010.
Th e percentage is much low-
er than last year, as there are
now substantially more rigs
in Saskatchewan. For much
of 2011, Saskatchewan had
approximately 125 drill-
ing rigs. Th at number has
climbed to 142. Th e result-
ing active percentage is now
59 per cent.
With the soft gas mar-
ket, British Columbia’s rig
count for the entire year
has been running well be-
low both its 2011 and 2010
numbers. On Nov. 9 it was
about 15 off the pace of both
previous years, sitting at 39.
Alberta had 271 rigs
working, accounting for 47
per cent of its fl eet of 580.
Th at’s down by about 80
from the year before, and 40
from 2010.
Manitoba saw a sharp
decline over October and
November, dropping to just
10 active rigs, off from 22
at the same time in 2011.
Other than spring breakup
or the traditional Christmas
shutdown, that’s the lowest
point it has been over the
last three years. With 21 rigs
in the province, it made for a
48 per cent active rate.
Fleet-wide, 404 of 797
drilling rigs were active in
Western Canada as of Nov.
9, making the utilization
rate just over half at 51 per
cent.
Not too hot, or cold
Bethany Kurz of the Energy and Environmental Research Centre in Grand Forks, North Dakota, gave the presenta on on hydraulic frac-turing, or “fracking,” to approximately 25 people in Weyburn on Nov. 7. Photo by Brian Zinchuk
A close look at hydraulic fracturing By Brian Zinchuk
Weyburn – Th e gallery area of Weyburn City Hall was full
on Nov. 7 in response to a presentation on fracking put on by
the Petroleum Technology Research Centre (PTRC).
Bethany Kurz of the Energy and Environmental Research
Centre in Grand Forks, North Dakota, gave the presentation on
hydraulic fracturing, or “fracking,” to approximately 25 people.
Th e information, presented to a full house, covered the history,
nature, science and technology of “fracking” as it known in pop-
ular culture, and also addressed many of the public questions
around this important hydrocarbon recovery method.
Kurz began by explaining the formation of oil in reservoirs
in a marine environment. Th e hydrocarbons (oil/gas) originally
began as organic matter (plankton, plants, animal remains, etc.)
that was buried and compressed by other layers of sediment.
“Over time, they get buried, and it heats up,” she said.
Th e oil and gas often migrate away from the organic-rich
source rock and accumulate in underground “traps.”
“At one time, when the Bakken formed, this was a huge
ocean, a tropical ocean, which is hard to believe.”
Th e Bakken has garnered the most attention recently, she
noted, but there are many other oil and gas producing forma-
tions.
Porosity is the amount of void space between the rocks,
while permeability is how well fl uids move in those spaces.
Sandstones tend to be high in permeability and porosity, and
make up conventional oil and gas reservoirs. Th ey were consid-
ered the “low hanging fruit” by the industry.
However, advances in drilling and fracturing makes uncon-
ventional plays more viable.
Th e Middle Bakken is more of a tight sandstone, not a shale
like the Upper and Lower units of the Bakken. It’s considered
tight, meaning it has low permeability. Creating fractures creates
passages in the rock, allowing the oil to fl ow, she explained.
“Hydraulic fracturing is nothing new,” Kurz said. It was
experimented with in Kansas in 1947. Th ey originally used na-
palm (gelled gasoline) and sand from the Arkansas River. Th ey
were very successful.
As far back as the 1900s, fracturing was accomplished with
nitroglycerine, a highly unstable high explosive. “Th ey would
pour it down the well and ignite it. Th e safety record wasn’t so
well.
In the 1950s, surplus Second World War Allison aircraft
engines were used to provide pumping horsepower.
Page A8
“The risk of fracturing into
a drinking water zone is equivalent to
the risk of dying from falling out
of bed.” – Bethany Kurz of the Energy and Environmental Research
Centre, Grand Forks, N.D.
A6 PIPELINE NEWS December 2012
Publisher: Brant Kersey - Estevan
Ph: 1.306.634.2654
Fax: 1.306.634.3934
Editorial Contributions: SOUTHEAST
Brian Zinchuk - Estevan 1.306.461.5599
SOUTHWEST
Swift Current 1.306.461.5599
NORTHWEST
Geoff Lee - Lloydminster 1.780.875.5865
Associate Advertising Consultants:SOUTHEAST
• Estevan 1.306.634.2654
Cindy Beaulieu
Candace Wheeler
Kristen O’Handley
Deanna Tarnes
Teresa Hrywkiw
CENTRAL
Al Guthro 1.306.715.5078
SOUTHWEST
• Swift Current 1.306.773.8260
Stacey Powell
NORTHWEST
• Lloydminster Randi Mast 1.780.808.3007
MANITOBA
• Virden - Dianne Hanson 1.204.748.3931
• Estevan - Cindy Beaulieu 1.306.634.2654
CONTRIBUTORS
• Estevan - Nadine Elson
To submit a stories or ideas:
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stories from our readers. To contribute please contact your
local contributing reporter.
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please contact the sales representative for your area to as-
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Special thanks to JuneWarren-Nickle’s Energy Group
for their contributions and assistance with Pipeline News.
Published monthly by the Prairie Newspaper Group, a divi-
sion of Glacier Ventures International Corporation, Central
Offi ce, Estevan, Saskatchewan.
Advertising rates are available upon request and are subject
to change without notice.
Conditions of editorial and advertising content: Pipeline
News attempts to be accurate, however, no guarantee is given
or implied. Pipeline News reserves the right to revise or reject
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principles see fi t. Pipeline News will not be responsible for
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is not responsible for errors in advertisements except for the
space occupied by such errors.
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All of Pipeline News content is protected by Canadian
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matters. To provide you with better service we may share
your information with our sister companies and also outside,
selected third parties who perform work for us as suppliers,
agents, service providers and information gatherers.
NEWSPIPELINE
Mission Statement:Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people.
EDITORIAL
Th ere’s been more talk about exporting Canadian
oil and gas in recent years than you can shake a stick
at.
One recent proposal is to build a liquefi ed natural
gas (LNG) export terminal on the EAST Coast.
Th at’s a big change from what we’ve heard recently,
where everyone has been talking about the West
Coast.
Th is project would see the export facility built
at Goldboro, Nova Scotia. Th at also happens to be
where Sable Island natural gas makes landfall.
As far as we’re able to determine, the TransCana-
da mainline system doesn’t go that far east. It termi-
nates in Quebec. Shippers are troubled by the tolls
on that system right now, because it’s vastly under-
utilized, yet bills have to be paid. Indeed, there’s now
some very serious consideration to turn one of those
pipelines into an oil pipeline, as has already been done
with the initial Keystone pipeline.
You don’t want to build an export facility on the
St. Lawrence, however, because it is not ice-free. To
hit open water, you have to go east, which would
mean more new pipe. Don’t forget, that new pipe
would have to be built in what is essentially a hostile
environment to oil and gas, Quebec, where fracking
has been frozen out for “study.”
As such, an East Coast export facility may quite
literally be a pipe dream.
Back on the West Coast, we’ve got a newspaper
baron suggesting one of the largest refi neries in the
We must get to tidewater for our exports
world should be built at Kitimat, so that we export
refi ned products, not crude (and the jobs that refi ne said
crude).
B.C. Premier Christy Clark is doing her best im-
pression of Danny Williams, making demands and ex-
pecting the rest of the world to grovel at her feet. She’s
dead set against a pipeline carrying dilbit to Kitimat, but
a natural gas pipeline to the same port is perfectly fi ne.
Perhaps there’s a sense of desperation in the air
from gas producers, as their industry isn’t just on the
ropes, it’s lying on the canvas. Daily Oil Bulletin report-
ed that just nine gas wells were drilled in Saskatchewan
in the fi rst nine months of the year. Nine. Single digit
drilling.
So we, the Canadian oil and gas industry, and the
gas side in particular, absolutely must fi nd export mar-
kets where we can get more that $3 per gigajoule.
It’s doubtful LNG export facilities are going to
outnumber fi sh canneries on the coasts, but we’re going
to need some there to get this industry going again.
Most analysts are saying Canada must get into the
game right away, and secure long-term markets while
they are still available. With Japan all but shutting down
its nuclear power capacity after the Fukushima disas-
ter, the market there is ripe for the picking. If we sit on
our hands, we will lose this opportunity. Australia, for
example, would be more than happy to sell them LNG.
Fortune favours the bold, they say. But will Canada
be bold, or will we let this opportunity pass us by, like an
LNG tanker in the night?
PIPELINE NEWS December 2012 A7
PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR ARE WELCOME.Email to: [email protected]
OPINION
Lee Side of LloydBy Geoff Lee
From the Top of The PileBy Brian Zinchuk
Are contami-
nants in the Atha-
basca Delta north
of the oilsands in
Alberta naturally occurring or the result of indus-
try?
Th at’s a question open to more debate and re-
search, but two small studies released in October
suggest the impact of the oil and gas industry in the
Athabasca oilsands region is not as great as some
critics and some environmental groups have con-
tended.
Th e pair of studies by University of Waterloo sci-
entists didn’t discover any increase over time of toxic
hydrocarbons or heavy metals in sediment samples
collected from lakes and rivers on the Athabasca
Delta north of the oilsands mines.
Some of the blame goes to Mother Nature.
Th e report notes that Athabasca River is essen-
tially self-polluting through erosion of the same hy-
drocarbon (bitumen) deposits that are being mined.
Th e studies however, were confi ned to just one
basin and both authors recommend that sediment
sampling be expanded to 40 basins to collect more
data.
One of the studies posted in the online journal
PlosOne stated: “We observe no measurable evi-
dence of related far-fi eld airborne metal contamina-
tion in the Peace-Athabasca Delta located (about)
200 km to the north.”
Th e second research paper published in Science of the Total Environment also concluded there was
no evidence of hydrocarbon deposits in lakes down-
stream of the mines.
“Despite rapid growth of oilsands development
during the past 25 years, the data reveal no measur-
able increase in concentration or proportion of river-
transported bitumen-associated indicator (hydrocar-
bons),” said the report.
Th e good news studies fl y in the face of high
profi le anti-development campaigns that paint all
production from the Fort McMurray area as being
“dirty oil.”
Th e tarring of the oilsands by environmentalists
led the Obama administration to block approval of
the 830,000 barrel per day Keystone XL from Al-
berta to the Texas last fall.
Environmental criticism of the oilsands as an
area where so-called dirty oil is produced has also
heated up opposition to the proposed Northern
Gateway pipeline from Edmonton to Kitimat, Brit-
ish Columbia.
Th e two latest Waterloo studies were funded by
oilsands producer Suncor, but the scientists say that
was due to other funding sources not being able.
Th e authors also publicly stated Suncor did not
have any say in the design or conclusions of the re-
ports.
Th e study was focused on what sediment core
samples from riverbeds and lakes dating back more
than 200 years revealed.
Scientists discovered that fl uctuating levels of
toxic heavy metals such as lead, arsenic and mercury
over the years, didn’t appear to be the linked with oil-
sands development.
“Enrichment of these metals peaked between
1950 and 1970 (at about 30 to 45 per cent above pre-
industrial values) and has been declining since,” said
one of the reports.
“Mercury enrichment began about two decades
later (post-1940s), peaked between 1965 and 1990,
and has since declined.”
Th e scientists used a similar method in the sec-
ond study to examine hydrocarbon deposits in several
lakes downstream from the oilsands in the Athabasca
delta.
Th at study also couldn't fi nd any increase of toxic
heavy metals in those deposits since oilsands mining
began.
While the study area was too small for its conclu-
sions to be extrapolated to the entire delta system, the
fi ndings are in stark contrast to other studies that link
contaminants to industry activity.
No doubt the fi ndings of the two small studies
will demand funding for wide large scale sediment
sampling to be conducted to distinguish between nat-
ural and artifi cial sources of bitumen in the water.
Only then can any reasonable conclusion can be
made about the impact of mining versus the power
of Mother Nature in the Athabasca Delta.
Is nature or industry polluting the oilsands?
It seems a month can’t go by without someone
suggesting a new export route or market for Western
Canadian Sedimentary Basin oil or gas. Th e most re-
cent one, however, strikes close to home.
When my stepfather, Brad Stroud, graduated
high school back in the 1970s, his grad gift was a
suitcase and a train ticket. He, like his father, would
end up working as a deckhand on a Hudson Bay
tugboat at the Port of Churchill. His father, Harvey,
served on the tugboat Graham Bell in the 1950s. Har-
vey’s mother Nellie lived there from 1968 to 1992,
and worked as a cleaner for the substantial U.S. Army
base and later for the RCMP. Harvey was also an
equipment operator for the U.S. Army.
As a child, Brad spent about three years in
Churchill, and was a classmate of the current mayor,
Michael Spence.
Brad’s perspective is rather unique. Not many
people have plied those waters, or the ones leading to
our northernmost port. He served two seasons on the
tugboat MV Toulon. It was the main harbour tug, and
there were two smaller ones at the time.
Th ey would handle roughly a dozen ships a sea-
son. Grain was the main shipment, especially barley
and wheat.
Th ey also shipped nickel from Th ompson. Die-
sel came into the port from the east. Liquid sulphur
rail cars would come from Alberta, for shipment out.
“Ships from Europe would come in and export it all
over the world,” Brad said of the sulphur.
“It used to catch on fi re. We would put it out
with our water cannons,” he said.
“Th e shipping season was so short. Ships would
have to get in, get loaded, and maybe they would get
two trips in a year.”
Th e fi rst season he worked, they were the last
boat out of the bay. Th ey went across Hudson Bay,
Ungava Bay, down the Labrador coast to the ship-
yards at Marystown, Newfoundland. It took “not
quite a week,” he said.
Th e tugboat was left there over winter for main-
tenance and the following spring they sailed it back
to Churchill. Along the way, they encountered sea
ice.
“Th e ice comes in packs. You have to follow along
until you fi nd a lead or hole. We had a pretty heavy-
duty tugboat. It wasn’t like an icebreaker, but it was
a steel hull.”
As for icebergs, he said, “We steered clear of
them.”
“Th e big problem was the insurance. Th e ships
could still get in and out. But after a certain date,
there was no insurance on any ships out there.”
“Not only insurance, but there was no air/sea res-
cue. Th ere was no one to come and get you.”
“In Norway and Russia, they have an icebreaker
and big ships go behind it. I don’t know what it will
be like with global warming. Quite a bit of the ice is
gone.”
As for the Labrador coast, Canada’s iceberg alley,
he said, “Th ey have to
watch, like the Ti-tanic. Ice is a critical
thing.”
One of the concerns regarding supertankers on
the West Coast is response to a potential oil spill. In
B.C., we can expect there’s at least some capacity to
deal with this already. Th ere’s a well-established Coast
Guard presence and thousands of boats and ships.
Taking a good look at the satellite photos of
Churchill, the only major port on the entire Hudson
Bay, (which is close in size to the Gulf of Mexico),
one soon realizes there are next to no boats of any
type, specialized or not, that can mount a response.
I count six things that can fl oat, and two are barges.
You simply can’t put a skimmer or containment boom
on a boat that doesn’t exist. It takes a long time to get
from Newfoundland to Churchill. On the U.S. Gulf
coast, there were plenty of resources to draw from
to deal with the BP spill, and we all know how that
went.
Brad noted, “Th ey brought in fuel during the
wartime. Th is is oil going the other way. Would it be
any diff erent?
“Th ey could make it into a world class port. Th ey
would have to make a highway. If this was the Soviet
Union, there would have been no question. It would
have been a world-class terminal.”
Brian Zinchuk is editor of Pipeline News. He can be reached at [email protected].
Should we ship oil north, to Hudson Bay?
A8 PIPELINE NEWS December 2012
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WITH THANKSFrom Our Entire StaffAT CHRISTMAS
As we wrap up yet another year, we’d like to acknowledge all the individuals - customers, neighbours, associates, and friends, who have made doing business here such a pleasure for us. 93 Panteluk Street, Kensington Avenue N, Estevan, Saskatchewan93 Panteluk Street, Kensington Avenue N, Estevan, Saskatchewan
PHONE:PHONE: 306-634-8828 • 306-634-8828 • FAX:FAX: 306-634-7747 [email protected] • www.nov.com
Addressing misconceptions about fracking Page A5
Nature of a frac jobA frac job will have
several key ingredients.
First, there’s going to be
a series of tanks to hold
water, a lot of it, gener-
ally speaking. Th ose
water tanks will then
be manifolded together
to a mixing tank. It
is pumped down into
a portion horizontal
wellbore that has been
isolated. Th is is a zone,
of which there will be
many. Th e water will
enter the formation
through holes in the
casing – the example
Kurz used was explosive
perforation – and the
pressure of the water
will cause the rock for-
mation to fracture.
A blender will ac-
cept proppant, small
granules to prop open
the fractures created
by the water pressure.
Th ese will range from
sands to ceramics.
“Th ere are diff er-
ent mechanisms for
hydraulic fracs,” Kurz
said.
“Over 2.5 million
frac operations have
been done globally, over
one million in the U.S.”
Th irty to 40 frac
stages are most com-
mon in the Bakken, she
said. More stages than
that haven’t seen as
much of an increase in
production to warrant
them.
IssuesTh ere have been
lots of issues in the me-
dia regarding hydraulic
fracturing, and a lot of
misconceptions. Kurz
started with facking
water.
“You hear these
numbers – three to
fi ve million gallons to
fracture a well. Th at
certainly sounds like a
lot of water,” she said.
Disposal of frac
fl owback is another
issue.
“You have movies
such as Gasland which
are complete misrep-
resentations of what
is actually happening,”
she said. Pulling up the
movie’s website, she
pointed out a graphic
that showed fractures
extending well up
towards the surface into
potable water aquifers.
“I would challenge
somebody to create
a fracture, given the
depths we’re really at, to
frac into a drinking wa-
ter zone. At a 9,000 or
7,000 foot depth, you’re
not going to be able to
create fractures all the
way into your drinking
water zone, which will
be in some cases up to
2,000 feet, your deepest
drinking water zone.
“Th is is oil spilling
out of a well. Industry
doesn’t want that. It’s
worth a lot of money,”
she said, pointing to an
animation of a gusher.
“You don’t want
to be fracturing into
a zone that contains
water, because that
means you are going
to produce more water,
which is expensive to
dispose of.”
“If your targeted
formation is 7,700
feet deep, that’s more
than six Empire State
Buildings stack. Typi-
cally your fractures will
extend hundreds of feet,
or 90 metres. Th ey don’t
typically extend very
far.”
A microseismic
study done in the
Marcellus shale forma-
tion showed that the
fractures came nowhere
near potable water
aquifers.
Regarding a sup-
posed lack of regula-
tion, states and prov-
inces already have
regulations in place,
from drilling wells to
disposal of wastes, she
said.
A typical frac job
will require three to fi ve
million gallons of water,
she noted, and have ad-
ditives mixed in. “In the
Bakken, typically in a
three week period, you
may only recover 17
per cent of that water.
You’re not getting a
whole lot of it out of
the ground.”
Th e rock almost
acts like a sponge and
absorbs water, Kurz
noted.
Typically only 20
per cent of the chemi-
cals will return. You
will get some of the
water fl owback, as well
as formation water that
may be as much as 20
per cent salt, far saltier
than sea water.
Four million gal-
lons of water is about
the amount used to
irrigate one section
of land for one day in
western North Dakota,
or one per cent of the
water used for cool-
ing for a 400 megawatt
power plant. It’s about
one-fi fth of the average
daily water use of the
City of Regina.
Typically water is
transported by water
hauling trucks. “Any-
thing they can use to
minimize truck traffi c is
benefi cial,” she said.
While water quality
needed to be very high,
now they are able to use
higher salinity water,
reducing costs to buy
water as well as water
transportation costs.
What else?A typical shale
fracturing mixture
makeup will be 90 per
cent water, 9.5 per cent
sand, and 0.5 per cent
chemical additives.
Page A9
PIPELINE NEWS December 2012 A9
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The gallery area of Weyburn City Hall was full during a presenta on on fracking, put on by the Petroleum Technology Research Centre.
Page A8Th e most common proppant is sand, highly
weathered sand from a beach. Missouri, Illinois and
Wisconsin are sand sources. Typically three to fi ve
million pounds of sand are used per operation.
Ceramics are the “Cadillac” of proppants, and
come from China, Brazil and Russia.
Biocides are added to reduce the growth of
hydrogen sulphide producing bacteria. Friction re-
ducing agents, which create “slick water” are surfac-
tants that promote fl uid fl ow. Polymers are used in
some cases to create a more viscous solution to hold
the proppants in suspension. Guar gum, used in the
food industry, is used for this purpose.
Scale inhibitors and acid treatments are also
used. Hydrochloric acid is used to clean swimming
pools, she noted.
Initially frac fl uids were not known by the
public, but now websites like fracfocus.com and
fracfocus.ca disclose what goes in.
Regarding frac fl owback, places like Penn-
sylvania have very few disposal wells. “Like two,”
Kurz said. For awhile some was taken to municipal
water treatment facilities, but that didn’t go over
well. “Th ey were not used to dealing with the same
chemicals as waste water.”
“More and more they’re looking at re-use and
recycling.”
Multiwell pads have substantially reduced
surface disturbance and reduced transportation of
drilling rigs. Some sites in the Horn River play of
British Columbia might have 16 wells on a site.
“Th e risk of fracturing into a drinking water
zone is equivalent to the risk of dying from falling
out of bed,” Kurz said.
As for the relationship between facturing and
earthquakes, yes, you will get microseismic events.
“If we had a geophone here, it would be the equiva-
lent of me jumping. It’s very low,” she said. “Th e
largest recorded was 2000 times less energy than a
magnitude 3 earthquake. In most cases it’s 10,000
to one million times less.”
Th at being said, in instances of deep well injec-
tion of disposal fl uids along faults, the fault can be
lubricated, causing movements.
A10 PIPELINE NEWS December 2012
PIPELINE NEWS December 2012 A11
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MAKE ITMERRY!
By W. Brett WilsonSpecial to Glacier Media
I grew up in Sas-
katchewan, and like
many people, I have a
huge soft spot for my
homeland. I have a
tremendous amount of
pride in my roots, and
great respect for the
people who pioneered
this part of the world.
In a relatively short
time, those determined
settlers – including my
great-grandparents –
helped turn the wild and
rugged prairie into one
of the greatest places to
live on Earth.
Part of what makes
Western Canada so
unique is the special
breed of people who
live here. Th ere’s just
something about this
place – this land – that
has helped to shape a
people that are solid to
the core. My aff ection
for the land is surpassed
only by my aff ection
for the people who live
here, and what sets
us apart is really what
holds us together – a
deep and enduring com-
mitment to each other.
Growing up in
North Battleford, a
small city just north-
west of Saskatoon, I
witnessed incredible
displays of community
spirit from a host of
people, but most notably
from my own parents.
My father, Bill Wil-
son, is a classic Prairie
gentleman. If a stranger
were stranded with a fl at
tire, he was the guy who
would pull over fi rst to
lend a hand. I once was
with my dad when he
backed up 1/4 mile on
a very muddy road just
to follow a neighbour
lady driving in another
direction because he
was worried she might
get stuck and need help.
My mother was equally
inspirational. As a social
worker, she was always
doing what she could
to help out the commu-
nity – from volunteering
for causes related to her
children to taking in
foster kids to teaching
parenting classes. For
my mom, giving back
was part of her DNA.
Th is commitment to
community is a wonder-
ful part of my legacy,
and probably yours. You
may be reading this in
Kamloops, Kipling, or
Calgary, but my guess is
that we share a simi-
lar belief: that the real
measure of success is
not just about hard work
and big rewards. It’s also
about giving back and
taking care of the people
around us. It’s about our
sense of community.
As a city, Calgary
has been shaped by
corporate and com-
munity leaders whose
collective dreams
have taken it from a
North West Mounted
Police outpost to an
international centre of
excellence for energy.
We owe many of our
greatest assets – such as
world-class sports teams
and facilities, dynamic
arts and culture, and
state-of-the-art health
care and education – to
the individual visions
and collective eff orts of
our community-minded
citizens.
One of my favourite
examples of great com-
bined eff ort comes from
my hometown. When I
started to become more
focused on personal phi-
lanthropy a decade or so
ago, I realized I hadn’t
yet done anything sub-
stantive to give back to
my birthplace – North
Battleford – so I orga-
nized large (to me) do-
nations to the both the
local United Way and
the Battlefords Union
Hospital. It didn’t take
long to learn that my
personal donation of
$100,000 matched the
United Way’s entire
fundraising goal for
that year. Until then, I
also learned, the big-
gest single donation the
United Way had ever
received was $5,000. I
was dumbfounded. I
knew that people in the
Battlefords had wealth,
but obviously they had
never been given a vi-
sion for building their
city through creative
philanthropy. I believed
there was a fair amount
of money sitting under
some mattresses in that
town. And it was time
to shake of some of it
loose.
I asked the hospital
CEO what else was on
his wish list and the
request for four new
anesthesiology ma-
chines caught my eye.
Th e hospital had four
operating rooms with
four old units on site,
but at least one unit was
down for repairs at any
given time. I told the
hospital that I would
give $300,000 toward
the new machines, but
they had to match my
donation by raising
$300,000 themselves. I
didn’t realize then that
the most the hospital
had previously raised
during one campaign
was $100,000.
Th e hospital accept-
ed my plan, but wanted
12 months to raise the
money. I thought for a
few minutes and gave
them three months. I
can only imagine the
nervous conversations
that took place at BUH
that day, but they called
back the next morn-
ing and agreed to the
three-month challenge.
Th e “Dollar-for-Dollar”
campaign was on.
Page A12
Rede ning Success
REDEFINING
S T I L L M A K I N G M I S TA K E S
W. BRETT WILSON
DISTRIBUTION INC.315A Kensington Ave., Estevan, SK
(306) 634-2835Fax (306) 634-2797
40B 18th Street, N. E., WeyburnPh: (306) 842-5081 Fax: (306) 842-5309
www.apexdistribution.com
May your holiday be brimming with good times and
glad tidings
It’s been a pleasure serving you this past year...thanks!
A12 PIPELINE NEWS December 2012
301 Kensington Ave.Estevan, SK.
Phone: (306) 634-3616
3902 - 75th Ave.Leduc, AB.
Phone: (888) 835-0541
Fort Nelson, B.C.Phone: (250) 774-2615
Serving the oil patch of Western CanadaLONG HAUL - Canada & US
The “Dollar-for-Dollar” campaign was on Page A11
It actually took less than three
months for the city to meet – and
exceed – their fundraising goal. Th ey
announced their victory on the lo-
cal radio station at the end of a very
touching multi-day radiothon, and
called me with the results: “Brett,
we have met your challenge – in
fact we blew through it – and have
raised $500,000!” I was so moved by
the way the community had come
together to support the hospital that
there was little I could do but match
them – dollar for dollar – and up my
donation to $500,000. Th e $1 million
total tally was an incredible boost for
the city, but the bigger impact came in
terms of community engagement. To
say the city and its citizens surprised
themselves would be an understate-
ment. But North Battleford is not
unique. Th ere are hundreds of similar
communities with innovative orga-
nizations addressing an assortment
of similar issues and causes – and
providing great opportunities for citi-
zens to work with them to make our
communities better places to live and
do business.
Page A13
Bre Wilson, originally from North Ba leford, has done well in oilpatch nance. In re-cent years he has turned his focus to philanthropic e orts. Photo submi ed
PIPELINE NEWS December 2012 A13
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Page A12To me, the business value of philanthropy is obvious. Strong communities
attract new businesses, and quality employees, which in turn create an even
stronger business climate. Employees want to live in communities with a strong
economic and social fabric – places where they feel connected to one another
and enjoy a great quality of life. Without question, communities with a strong
economic base and a strong social fabric are the best places to live and work. As
business guru Don Tapscott has said, “Business cannot succeed in a world that
is failing.”
As one of the proud co-founders of Calgary’s FirstEnergy Capital Corp.,
I’ve seen the enormous impact one company can have on its community. It
would be nearly impossible to measure the number of lives that have been dra-
matically improved by FirstEnergy’s philanthropic work. In addition to donat-
ing more than $10 million to more than 500 community agencies over the past
almost 20 years, FirstEnergy has raised millions for the victims of the 1997
Manitoba fl ood, the Quebec ice storm in 1998, the Alberta drought in 2002,
and the Slave Lake disaster in 2011.
But the best corporate philanthropy doesn’t just make a social impact – it
also adds to a company’s bottom line. FirstEnergy didn’t set out to be a leader
in corporate philanthropy. We did set out to be a leader in investment banking.
And we used charitable giving as a marketing tool. Every time we gave a con-
tribution to a charity, we were very open about the fact that we expected some-
thing in return. What we gained in the form of public recognition, co-branding
with larger companies, or recognition within the charity’s network helped us to
dramatically increase our profi le, develop new partnerships, and grow our client
base. Th at is the kind of return on investment corporate philanthropy should
expect to achieve.
In my world, giving and getting defi nitely go together, but philanthropic
giving can be more rewarding than you might expect. I’m quite candid about
the fact that when I fi rst started my career 30 years ago, my goal was simple:
I wanted to make money – and lots of it. I wanted success, the big house, and
a few nice toys in the garage. What I soon learned was that fi nancial success
can become surprisingly hollow. Ironically, philanthropic pursuits produce a
much more satisfying return. So after spending many years focused on making
money, I now spend as much – if not more – of my energy giving it away.
Th at’s why I am constantly challenging people to think carefully about how
we measure success. Earlier this year, the fi rst World Happiness Report was
released. It attempted to measure social and economic well-being around the
world. Canada placed fi fth. It came as a surprise to some people, but not to me,
that a nation's happiness is not necessarily tied to its economy, but has more to
do with things like personal freedom and strong social networks.
Just like the people who settled our communities decades ago, we are wired
to connect with and care for one another. If we stop measuring success based
on material wealth, and start measuring it in terms of things we really value
– like our relationships with family and friends, and the quality of our com-
munities, then we all might start to feel richer than we thought possible. To
me, the real bottom line is not about how much we get, but how much we are
privileged to invest in others. Th at’s how I have redefi ned success.
Business, entrepreneur and philanthropist Brett Wilson is publishing a new book in November. Entitled Redefi ning Success: Still Making Mistakes it will in bookstores this month. Brett Wilson authored this column in partnership with Glacier Media Group, which has extensive holdings in community media and business-to-business media across Canada. Pipeline News is a part of Glacier Media Group.
A14 PIPELINE NEWS December 2012
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Gilliss Power Tongs handles casing sizes from 2 3/8” up to 20”
By Brian Zinchuk
Estevan – When smaller tubulars
need to go down a well, the old way
of doing it involved putting your back
into it to get the pipe to the drill fl oor.
Th e roughneck would typically bend
over and lift it off the catwalk, ground
or truck. In some cases, air-driven cat-
walks would at least lift it from waist
level and up towards the elevators on
the drilling fl oor, but it still required
lifting. In other situations, a sling was
used.
“I felt the oilfi eld needed a safer
tool to assist in picking up the smaller
tubulars from the ground/catwalk,
into the rig elevators and laying them
back down,” said Dean Gilliss. He
recently retired from Gilliss Power
Tongs, completing his management
contract after selling the company to
Wyoming Casing Service in 2008.
His wife, Bonnie, was also active in
the management of Gilliss Power
Tongs, and is now working with him
on the new venture.
“Th e current methods were to ei-
ther hand bomb or lift with a conven-
tional sling. I explained the concept
to my partner at the time and my idea
soon became a working prototype.
“At the time the tool had to be
government-tested. We took the
prototypes to PAMI in Humboldt, to
have the testing done, and a compli-
ance certifi cate was obtained. Ap-
plications for both U.S. and Canadian
patents were made. Th e U.S. patent
was granted, and we are awaiting the
Canadian patent.”
Th e company was originally called
R&D Technologies, and was founded
in 2006. Th e partnership eventually
fell apart, however, and it eventually
became Gilliss Oil Tools in 2008.
“Even though the tool was well
received, there were a number of
factors between 2006 and 2011 that
hindered marketing and sales of the
tool,” he said.
Th e project hung dormant during
that time largely because he focused
on operating Gilliss Power Tongs
until the handover was complete last
year. Dean and Bonnie’s son, Dylan,
now is general manager, and their
other son, Logan, handles sales for
Gilliss Power Tongs.
“I’m happy we sold,” Bonnie said.
“I am too,” added Dean.
Th eir focus is now on sales of the
new product, and those sales have
picked up substantially. “We sold
more this year than in the last fi ve
years,” Bonnie said.
Th e tool itself is deceptively
simple, but there’s a lot of thought
involved.
Th ere are three main parts – the
body, which has half of the clamp, the
lifting eye which includes the second
half of the clamp, and the release.
When you pull the release (which
originally had a hockey puck for a
handle), the jaws open. When the
jaws are placed over a pipe, the lower
part of the lifting eye piece engages
the pipe. It does this by having a cam
feature which causes the mouth of the
jaws to close and then lock into place.
Since the lifting eye is off centre,
any time the lifting eye has tension on
it, the jaws will remain closed. Even
if you open the release, the jaws will
not open unless there is slack on the
lifting eye. Th at’s an important safety
feature.
To let go of the pipe, the release
must be pulled and tension slacked off
the line.
Th e clamps come in four sizes –
2-3/8, 2-7/8, 3-1/2 and 4-1/2 inch.
Th e wrong sized clamp will not work.
Either it will be too loose and slide, or
it will not fi t.
Th e two popular sizes are 2-7/8
inch in Alberta and 3-1/2 inch in
Saskatchewan. Gilliss Power Tongs
runs a lot of 4-1/2 inch tubing and
has a unit on each truck.
“It’s a mechanical clamp. A guy in
Edmonton started calling it a ‘bull-
dog clamp.’” Dean said. “Th at’s what
people call it now.”
Th e design has evolved over time.
Initially the lifting eye had a rounded
end. Two ears were added to ensure
that the tugger’s hook stays straight
and cannot set off the release mecha-
nism. Th is is a safety feature. (Th e
tugger is lighter-duty hoist on a rig.)
A handle was added on the op-
posite side. Some users attach a tag
line to the handle to make it easier to
retrieve.
Finally, the manufacturing process
has been revised. While the thick,
hard steel is cut by water jet, the in-
side of the clamp is now machined on
a lathe, allowing for tighter tolerances.
Page A15
Why lift it by hand when you can grab it with the tugger?
PIPELINE NEWS December 2012 A15
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A roughneck uses a “bulldog clamp” in the eld on Sun Country Rig 8 in October. The clamp allows rig hands to use the tugger to li up pipe, as opposed to “hand bomb-ing” it.
Page A14
Th ey were initially
made in North Bat-
tleford, but Dean felt
that was too far away to
keep an eye on produc-
tion. Th e second manu-
facturer was in Regina,
but they went bust.
Now manufacturing is
done in Estevan, at the
recently renamed Axis
Services.
Th e usage is pri-
marily on service rigs
since the advent of the
“skate” on drilling rigs.
Th e skate is the me-
chanical device on a
hydraulic catwalk that
pushes a pipe up to the
drilling fl oor.
“We’re more geared
to the service rig side,”
he said.
With most of
its steel components
roughly an inch thick,
it’s not likely this clamp
will wear out any time
soon. Rig Locator lists
only 1,010 service rigs
in all of Canada, for
instance.
“It’s kind of a niche
market,” Dean said,
picking up a pen.
“Th is BIC pen, you
build four billion of
them, then four billion
again,” Dean cited as an
example of goods that
are constantly replaced.
Durable goods, how-
ever, will last.
As a result, con-
tinued sales will mean
seeking markets further
afi eld. Th e fi rst market
is straight south.
“We have a com-
pany, a distributor,
handling the northern
states,” he said. Th ey
are now looking for
a distributor for the
Midwest and southern
states.
Dean is looking for
more exclusive arrange-
ments, so that those
who do carry the clamp,
it have more interest to
promote it than having
it as a commodity all
over the place.
In the early days of
this venture, they talked
to a large, international
outfi t, but were brushed
off . “Th ey were selling
things that cost mil-
lions,” he said.
Another large fi rm
backed off back then,
too. But that’s not stop-
ping them.
Th is winter the
Gillisses will be taking
the tool on a road show
down south during
their snowbird months.
Houston is targeted
for demonstrations,
although actual sales are
expected to be handled
by someone else.
“I’m going to be
showing how the tool
works, in the fi eld and
training facilities,” he
said.
Making personal
connections is a key
business strategy, as
Dean noted he would
go to Calgary about
four times a year while
running Gilliss Power
Tongs. Going for sup-
per, talking face-to-face;
these sorts of contacts
are invaluable, he feels.
“It always paid off .
We’ll see what happens
in the States.”
“Baby steps,” Bon-
nie said.
“Anywhere there’s
an oilfi eld, there’s a
potential market,” Dean
said.
Part of the chal-
lenge will be overcom-
ing old school thinking,
which Dean readily
acknowledges is out
there. “Th at’s how we
did it for 40 years,” he
said is an attitude they
have to overcome. “We
hand bombed it all our
lives, they can too.”
Th ey saw similar re-
luctance with the intro-
duction of air slips with
Gilliss Power Tongs.
“It’s called progress,”
Dean said.
“It’s a back thing,”
Bonnie added.
While it weighs
around 25 pounds, in
use much of that weight
is taken up by the tug-
ger cable. “You’re guid-
ing it, but the weight is
on the tugger,” he said.
“It’s not about the
money. It’s about the
logo – Gilliss Oil Tools
– on the bottom. I’ve
been in the oilfi eld for
34 years this spring. It’s
about giving back. Th e
people who use it really
appreciate it,” Dean
said.
PIPELINE NEWS December 2012 A17A16 PIPELINE NEWS December 2012
Thank You To All Our Loyal Advertisers For Your SupportThank You To All Our Loyal Advertisers For Your Support
Have A Safe And Happy Holiday Season. We Look Forward To Working With You In 2013.Have A Safe And Happy Holiday Season. We Look Forward To Working With You In 2013.
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A18 PIPELINE NEWS December 2012
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1460 - 2002 Victoria AvenueRegina, SK S4P 0R7
Toll Free: 1-888-939-0000Fax# 306-359-9015
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Shaun Kozak, Mineral Manager 306-790-4352Chad Morris, Surface Manager 306-790-4363Celeste Farrow, Surface Coordinator 306-790-4378Laurie Bielka, Assistant Branch Manager 306-790-4360Crown Sale Inquiries 403-261-6580Main Line: 306-359-9000
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Office (306) 457-2785Email: [email protected]
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Wishing you a veryMerry Christmas
& Prosperity in 2013!
By Brian Zinchuk
Estevan – On Oct.
26, Minister of the
Economy Bill Boyd
spoke to the Estevan
Chamber of Commerce
about the direction
the province is going
in. After his speech,
Pipeline News was able
speak to the minister
about the sorry state of
gas development, ship-
ping crude-by-rail, and
land sales among other
things.
Earlier this fall, the
province announced its
intentions to establish a
sovereign wealth fund,
similar to Alberta’s
Heritage Fund.
Boyd said, “It’s
in the works now for
establishment. It will be
up and running relative-
ly soon. First we want
to pay down the debt
in Saskatchewan before
putting money into that
fund. Mr. (Peter) McK-
innon will be looking
at diff erent priorities in
terms of establishing
the fund. We’ll look-
ing at diff erent ways of
creating money to go
into that fund, mainly
from the resource sector,
I expect. And he’ll be
looking at the types of
investments we will put
the resources into in the
future.”
Th e goal, he said, is
for the province to be
debt-free before putting
money into the fund.
While the speech
from the throne spoke
of dedicating $400 mil-
lion a year to pay down
debt, Boyd elaborated,
“Th at’s the minimum.
If we see the kind of
growth in the economy
we’re expecting, and
if we see, particularly
in the area of potash,
the growth that we’re
expecting, I think you’ll
see signifi cantly more
paydown going for-
ward.”
Th e Daily Oil Bul-letin reported in late
October that in the
fi rst three quarters of
the year Saskatchewan,
had only drilled nine
gas wells. “It’s certainly
a concern to us,” Boyd
said. “We put forward a
gas well royalty reduc-
tion program a couple
of years ago. We haven’t
seen the kinds of
stimulation of industry
we would like. We’re
at very, very low prices
for natural gas, and as
a result of that, the in-
dustry has moved their
priorities from gas to
oil, which is no surprise.
At some point in the
future, I think we’ll see
gas prices bump up,
and it will restart the
industry in Saskatch-
ewan. Th e gas sector is a
bit of a disappointment
in terms of the activity
we’re seeing, no ques-
tion.
“Gas was not a
huge part of our royalty
regime in the past. Oil
was much more signifi -
cant in terms of gener-
ating royalties for the
province. We’ve seen a
little bit of a reduction,
but there’s really not
much that can be done.
Th is is a profi t-driven
business. If companies
aren’t making profi t,
they’re going to move
their capital into other
areas, and they are.
Asked if there’s
anything else the prov-
ince can do to stimulate
gas production, he said,
“I don’t think there are
anymore steps being
contemplated at this
time. You can only re-
duce rates so much, that
you might as well be
giving it away. We’re not
prepared to do that.”
Nordic Oil and Gas
reported fi rst produc-
tion of oil from a well
near Preeceville in
October. It’s the fi rst oil
producing well in east
central Saskatchewan.
Asked what this means,
he said, “We’re excited
about the possibilities of
expanding oil produc-
tion in Saskatchewan.
Clearly there’s explora-
tion going on in a num-
ber of areas around the
province, and it’s quite
exciting. Th ere may be
additional pools of oil
across the province that
haven’t been explored
at any great length in
the past. We’re doing
everything we can to
encourage that type of
activity now, and in the
future. Obviously it’s a
good news story when
we see another area that
may have signifi cant oil
production now, and in
the future.
“Th e only way
you’re going to fi nd it
is with drilling activity.
Th e use of new tech-
nologies has certainly
helped. We would want
to wish the companies
involved in that area the
very best in luck and
fortune in the future.”
He noted time to
time there are permits
given for outlying areas
that don’t result in a
lot of production, but
there’s always the pos-
sibility that they could.
Page A19
Boyd address sovereign wealth fund, gas drilling, and future developments
Bill Boyd
PIPELINE NEWS December 2012 A19
Page A18Land sales are down substantially this year compared to previous years.
Asked about the resulting impact on provincial revenues, Boyd said, “It’s had
an impact. Land sales are a fairly signifi cant generator of activity for our prov-
ince. It’s clearly a benchmark of activity going forward. We’re a little bit backed
up, still, because of fl ooding problems in the southeast part of Saskatchewan.
We’ve also seen oil prices have come off a fair bit in the last little while. Th at
creates a pullback in the industry, naturally. We expect that will pick up in the
future.
“I think a lot of oil companies have a signifi cant backlog of wells they want
to drill, in properties they already have, and they’re simply not investing in
those land sales at the moment.
“We’ll continue to see strong drilling activity, but we’ve got to see land
sales pick up in the future if we’re going to continue to see that level of devel-
opment. A lot of companies, though, have huge infi ll drilling opportunities to
explore and to develop, and we’re seeing a lot of that activity right now. We’re
still seeing production improving. We’re still seeing growth in the industry.
We’re not alarmed at this trend, but it’s something we have to keep an eye on.”
On the topic of the growing shift to shipping crude-by-rail, Boyd said,
“We’re seeing a tremendous increase in opportunities to move crude-by-rail
all across Saskatchewan, not just in the southeast, but in many locations. It’s
created another opportunity for moving Saskatchewan oil to export posi-
tions, into the United States primarily. Th ere may be the possibility of moving
signifi cant volumes to the West Coast and other destinations in the future. We
have a resource here that is very signifi cant, and we believe there is growing
opportunities for the sale of that resource into markets around the world into
the future. Th ere’s opportunities for those markets to be explored, to move that
product into international markets. It would greatly enhance the viability of oil
operations in Saskatchewan and increase revenue streams to the province in the
future.
“Clearly we’re onside in terms of seeing those kinds of pipelining oppor-
tunities or other transportation methods for moving product into positions of
sale.”
Ac vity is picking up for crude-by-rail operators. These cars were seen at Bro-mhead, just east of Long Creek Railroads Southall facility on Nov. 7.
Photo by Brian Zinchuk
A20 PIPELINE NEWS December 2012
LINELOCATING
LeakDetection(FID)
GPSMapping
www.absolutelocating.com
Serving Southeast Saskatchewan and Southwest Manitoba
Box 235Oxbow, SKSK S0C 2B0Canada
Dispatch: 306-483-7897 Office: 306-483-2194
Fax: 306-483-2292Email: [email protected]
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HAPPYHOLLY
DAYS!As another year comes to a close, we want to let you
know how very much we enjoyed serving you, and wish you all a very joyous and wonderful holiday season.
Head Of ce: Estevan, SKHead Of ce: Estevan, SKTel: 306-634-3411Tel: 306-634-3411
By Brian ZinchukRegina – A made-
in-Saskatchewan stan-
dard regarding storing
carbon dioxide under-
ground has been ac-
cepted by the Canadian
Standards Association
and the government of
the United States.
CSA Group, a
leading developer of
standards, codes and
training programs, and
the International Per-
formance Assessment
Centre for Geologic
Storage of Carbon Di-
oxide (IPAC-CO2), an
environmental non-gov-
ernment organization
(ENGO), announced
Nov. 15 the world’s
fi rst bi-national carbon
capture and storage
(CCS) standard for the
geologic storage of car-
bon dioxide (CO2) for
Canada and the United
States.
After three years of
working on the world’s
fi rst standard for the
geologic storage of
carbon dioxide, IPAC-
CO2’s work on the stan-
dard is now realized.
Developed by
IPAC-CO2 in collabo-
ration with CSA Group
(formerly CSA Stan-
dards), a leading devel-
oper of standards, codes
and personnel certifi ca-
tion programs, the new
standard will provide
essential guidelines for
government regulators,
project developers, and
researchers involved
with CCS around the
globe. Th e standard will
focus on areas such as:
requirements for site
selection and charac-
terization, monitor-
ing, measurement and
verifi cation, injection
operation, modeling and
risk assessment, cessa-
tion of injection and site
closure.
Th e CSA Z741 Geological storage of
carbon dioxide standard
is a bi-national Can-
ada-U.S.A. consensus
standard, developed
with a technical com-
mittee of more than 30
professionals represent-
ing industry, regulators,
researchers and NGOs
from both sides of the
border. Th e genesis of
the standard was a seed
document developed
by IPAC-CO2 based
on their research. It
is intended that the
new standard will also
be used as a basis for
the international CCS
standards through the
International Organiza-
tion for Standardization
(ISO).
“It’s been a long
time birthing this baby,”
Dr. Carmen Dybwad,
CEO of IPAC- CO2,
told Pipeline News. “It’s fi nally out the door. Th e
next step is ISO.”
Th at will be a much
more complete standard,
encompassing capture,
transport and storage.
Th e recently accepted
CSA standard just cov-
ers storage.
“We started with
the easiest and most
important,” she said.
Transportation is al-
ready largely covered by
National Energy Board
standards. “Th ere’s lots
of pipeline regulations,”
she said.
On the capture end,
she noted, “Th ere’s so
many diff erent types
of capture technology.
Th ey’re still experiment-
ing.”
Storage, she said, “is
the jewel.”
“Th e real nuts and
bolts rests with capture.
China is probably going
to be the leader in this,”
Dybwad said, noting
a recent billion dollar
Chinese purchase into a
plant in Texas.
“Th ey (the Chinese)
want the intellectual
property.”
Th e ISO process is
expected to take three
to four years, at mini-
mum. Th ere are 13 or 14
countries that are active
participants, which
means a lot of negotiat-
ing.
Th e CO2 storage
standard, at a practical
level, is used in charac-
terizing reservoirs, doing
risk management and
site certifi cation.
To that end, IPAC-
CO2 has signed a mem-
orandum of understand-
ing and non-disclosure
agreement with the
Petroleum Technology
Research Centre, which
has recently completed
its injection and ob-
servation wells for
the Aquistore project.
Aquistore will take CO2
from the Boundary
Dam carbon capture
project and inject it into
a deep saline aquifer.
“We will do an
independent assess-
ment of the initial risk
assessment,” Dybwad
said, adding third party
assessments provide
confi dence for regula-
tors and the public alike.
“It ensures you con-
sidered all the aspects,
i.e. reviewing potential
for microseismic.”
IPAC- CO2 has CO2 standard accepted
PIPELINE NEWS December 2012 A21
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790, Avenue MontrichardSaint-Jean-sur-Richelieu, QC J2X 5G4Tel.: 450-347-7822 or 1-800-363-2158Fax: 450-347-8372
Tank Repair – Testing – Parts – Inspection Lease – Units in Stock5-22nd Avenue S.E., Weyburn, SK S4H 2L2Tel.: 306-842-6100/Fax: 306-842-6101
GREG CHARTRANDNORTH-WEST CANADACell.: 780-984-4004/Fax: [email protected]
DARREN WILLIAMSV.P. Sales - Tremcar, Inc.Tel.: 306-931-9777/Fax: 306-931-9778Cell: [email protected]
JASON HUGO, SOUTHWESTSales RepresentativeTel.: [email protected]
2 New Service Centres in Saskatchewan VISIT OUR WEB SITE: WWW.TREMCAR.COMSUZANNA NOSTADT Vice President of OperationsTel: 306-842-6100/Fax: [email protected]
NEW SERVICE CENTRE 202 Melville St.Saskatoon, SK. S7J 0R1Tel: 306-931-9777Fax: 306-931-9778
A22 PIPELINE NEWS December 2012
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With best wishes for a Merry Christmas and a Happy New Year to one and all.
MERRY CHRISTMAS from our entire team
Celebrating Over 35 Years Estevan • 634-6494Calgary
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KISBEY, SK
Goodwater – Th ere was a time when the long-established Goodwater Ma-
chine Shop focused on repairs. Now, much of their work is in manufacturing.
Goodwater Machine Shop is owned by Lionel and Donna Wanner, who
purchased the operation in 1986. “I couldn’t even spell machinist until I bought
it,” Lionel said. “My uncle, Phil Wanner, bought it in 1967. He sold it in 1979.
We bought it from Frank Bird in 1986.”
Th e Wanners’ son, Kevin, is now a pressure welder with the fi rm.
When the Wanners purchased it, the company handled machining, general
repairs and fabrication. Over the years they have expanded that.
“We do lease mowing and maintenance, i.e. jack repairs, snow removal –
blowing and dozing,” Lionel said.
“I also do consulting for lease construction.”
Gibson’s (formerly Palko Energy) disposal sites at Oungre, Stoughton and
Midale saw Goodwater Machine Shop do piping and catwalk work.
“We had two crews with welders. We did the pressure welding,” he said.
As for welding work, Lionel said, “We used to sub it. Once Kevin got his
welding tickets, we started doing it on our own. We have another welder now,
Tyler Gammack.”
Th e company also manufacturers several products. “We build livestock han-
dling equipment and build corral systems. We do prefab and on-site.”
Th e Wolseley Natural Valley slaughterhouse was one of their projects, as
was the Neilson Bros. operation in Moose Jaw.
As for oilpatch products, Tex fence is one line, while Texas gates are an-
other. Used tubing from oilwells is one of their primary working materials.
“We use used tubing – 2-7/8 and 2-3/8 of an inch.”
Casing pipe is used for Texas gates.
Th ey try to source much of their new materials locally, if possible.
New products are now the majority of their work, with just 20 to 30 per
cent of the business in repairs.
“We’re basically a job shop. If you want something made, we’ll do it.”
Page A23
Lionel Wanner and his wife Donna have owned and operated Goodwater Machine Shop since 1986. Beside him is some stackable, free-standing Tex fence.
A shift from repairs to manufacturing
PIPELINE NEWS December 2012 A23
Page A22Ten people work for
Goodwater Machine
Shop. However, its loca-
tion, in a small hamlet
a half hour’s drive from
Weyburn, has its chal-
lenges. Lionel said wist-
fully that he there was
once a cafe next door
with accommodations
above it, but he had it
knocked down many
years ago. Th ose accom-
modations would have
been useful now.
“In the bright lights
of Goodwater, it’s really
tough to keep machin-
ists,” he said, adding,
“we use a lot of subcon-
tractors.”
“We have guys
driving from Ogema,
Weyburn, Radville and
Torquay.”
Th ey try to be nine
to fi ve, he said, but
acknowledged, “We’re
not. We off er service on
weekends.”
Snow removal in
particular happens when
it snows. Last year there
was only a few hours
work. “Th ere was just no
snow. Th e year before, it
was insane,” he said.
Th eir other son,
Terrance, is a machinist,
but he has since moved
on to become a land
agent. Both of the sons
worked service rigs, and
Kevin also spent some
time on drilling rigs.
Th eir daughter,
Michelle, worked at the
company in her younger
days during summer
holidays.
As for the future,
Lionel said, “We plan
on building cement
tanks, that and contain-
ment walls.”
Th ey are also con-
sidering a new shop.
Ed Lennox welds free-standing, stackable Tex fence at the Goodwater Machine Shop. Photo by Brian Zinchuk
Used casing pipe makes for good Texas gates.
A24 PIPELINE NEWS December 2012
2010 F-150 SUPERCREW LARIAT 4X4LEATHER,MOON,
56,000KM
$249 b/w
$31,900
2010 F-150 SUPERCREW LARIAT 4X4LEATHER,MOON,
54,000KM
$249 b/w
$32,900
2010 F-150 SUPERCREW XLT 4X4XTR
PACKAGE.54,000KM
$217 b/w
$28,9002010 F-150 SUPERCREW PLATINUM 4X4
LEATHER,NAV, MOON,28,000KM
$336 b/w
$43,9002011 F-150 SUPERCREW HARLEY 4X4LEATHER,
NAV, MOON,49,000KM
$339 b/w
$43,9002011 DODGE RAM 1500 CREW SLT 4X4TONNEAU COVER,
CHROME,51,000KM
$217 b/w
$28,9002009 ESCAPE LIMITED 4X4
JUST ARRIVED
2009 ESCAPE LIMITED 4X4$195 b/w
$22,9002010 ESCAPE LIMITED 4X4
$173 b/w
$22,900
2011 CHEV SILVERADO CREW LTZ 4X4LEATHER,26,000KM
LEATHER,MOON,
50,000KM
LEATHER,MOON,
86,000KM
$279 b/w
$36,9002007 CHEV SILVERADO CREW L.T. 4X4
Z-71 $187 b/w
$18,9002007 CHEV SILVERADO CREW L.S. 4X477,000KM $187 b/w
$18,9002010 F-150 SUPERCREW XLT 4X4
XTRPACKAGE56,000KM
$217 b/w
$28,9002011 F-250 CREWCAB 4X425,000KM $247 b/w
$32,9002010 EDGE LIMITED AWD
LEATHER,40,000KM
LEATHER,MOON,NAV
$225 b/w
$29,900
2008 ESCAPE LIMITED 4X4LEATHER,MOON
$159 b/w
$18,9002010 ESCAPE XLT 4X4
85,000KM $139 b/w
$18,9002010 DODGE NITRO SXT 4X4LEATHER,MOON,
47,000KM
$188 b/w
$24,9002010 F-150 SUPERCREW LARIAT 4X4LEATHER,58,000KM
$249 b/w
$31,9002008 GMC ACADIA SLT AWDLEATHER,MOON,DVD
$209 b/w
$24,9002008 GMC ACADIA
LEATHER SEATCOVERS,51,000KM
$159 b/w
$18,900
2009 CHEV TRAVERSE L.T. AWDLEATHER,MOON,
76,000KM
$209 b/w
$24,9002009 FLEX LIMITED AWD
LEATHER, NAV,DVD, MOON,54,000KM
$212 b/w
$24,9002008 CHEV EQUINOX L.T. 4X4
MOON,56,000KM
$159 b/w
$18,9002006 ESCAPE XLT 4X4
LEATHER $99 b/w
$9,9002007 EDGE SEL + AWD
LEATHER,COMMAND
START, MOON
$216 b/w
$21,9002007 EDGE AWD
REVERSESENSING
$187 b/w
$18,9002005 LINCOLN AVIATOR 4X4LEATHER,MOON, TV,132,000KM
$15,900
2008 DODGE RAM 1500 CREW 4X4TRX4, TOPPER,5.7L HEMI,75,000KM
$186 b/w
$21,9002010 EDGE SEL + AWD
LEATHER,MOON,
105,000KM
$188 b/w
$24,9002008 EXPEDITION LIMITED MAX 4X4LEATHER, NAV,DVD, MOON,110,000KM
$249 b/w
$29,9002007 EXPLORER LIMITED 4X4LEATHER,MOON,DVD-TV,
102,000KMJUST ARRIVED
2009 F-150 SUPERCREW FX4 4X4LEATHER, MOON,
DUAL DVDHEADRESTS, NAV,
73,000KM
$249 b/w
$29,9002011 F-150 SUPERCREW FX4 4X4
LEATHER,45,000KM
$284 b/w
$37,9002010 LINCOLN NAVIGATOR 4X4LEATHER, NAV, DVD,MOON, COMMANDSTART, 35,000KM
$369 b/w
$47,900
2003 HONDA CIVIC
$6,9002011 EXPLORER XLT 4X4LEATHER,MOON,
26,000KM
$259 b/w
$34,9002009 EXPLORER SPORT TRAC LIMITED 4X4ADRENALINE,
LEATHER, MOON,51,000KM
$228 b/w
$26,9002009 F-150 SUPERCREW PLATINUM 4X4
LEATHER,NAV, MOON,119,000KM
$249 b/w
$29,9002007 EXPLORER SPORT TRAC XLT 4X4
$129 b/w
$12,9002008 LINCOLN MKZ AWDLEATHER,MOON,
37,000KM
$199 b/w
$23,9002007 PONTIAC G-6 HARDTOP CONVERTIBLE G.T.
LEATHER,65,000KM
$158 b/w
$15,900
2008 FUSION SEL AWDLEATHER, V-6,93,000KM
$144 b/w
$16,9002009 SUBURU IMPREZA AWDWRX-265,MOON,
38,000KM
$209 b/w
$24,9002010 TAURUS SEL AWD
LEATHER,43,000KM
$169 b/w
$22,9002003 HONDA CIVIC
114,000KM $9,9002010 JEEP LIBERTY SPORT 4X4
TRAIL RATED,56,000KM
$159 b/w
$21,9002011 LINCOLN MKS AWDLEATHER,
MOON, NAV,18,000KM
$269 b/w
$34,9002006 DODGE MAGNUM SXT3.5L HEMI
HIGH OUTPUT,134,000KM
$99 b/w
$9,900
BRAND NEWBRAND NEW20122012
GASGASStarting atStarting at
$39,900$39,900
DIESELSDIESELSStarting atStarting at
$45,900$45,900
SUPERDUTYSUPERDUTYCLEAROUT!CLEAROUT!
HERE COMES CHRISTMAS!
46 - 13th Street NE, Weyburn, SK. 306-842-5490www.hseintegrated.com
Here’s hoping the holiday delivers an abundance of glad tidings to you and yours. For your kind patronage,you have our heartfelt thanks.
By Josh SchaeferFor Pipeline News
Delisle – Cobra Industries Ltd. started in 2007
by building components for other tank manufac-
turers, and after a work slowdown, owner Pat Esau
decided if they built all of the parts for the tank,
why not build the rest of it as well?
“We built a complete tank and took it to the
oil show in Weyburn,” Esau explained, “and it took
off from there. It’s pretty much been steady ever
since.”
Cobra Industries operates in an industrial
building in Delisle, a 20 minute drive from Saska-
toon. Pat’s father Dean, who runs operations for
the company, said that the land they are on was
formerly a golf course. When the course moved to
the other side of town, it left a stretch of vacant
property along one side of Highway 7.
Page A25
Quality is priority for Delisle company
Alex Karpenko (centre) measures a piece component for the tank that is being manufacturing, while two other mem-bers of the sta assist. Photo by Josh Schaefer
PIPELINE NEWS December 2012 A25
www.carsonenergyservices.com(306) 487-2281(306) 487-2281
• Oil eld Maintenance• Welding• Oil eld Construction• Pipeline Construction• Facility Construction• Mainline Pipeline Construction• Safety Sales & Service• Environmental Services• Horizontal Directional Drilling• Picker Trucks• Pile Driving• Hydro vac• Gravel and Sand Hauling• Skid Packages• Lease Preparation• Insulating• Major Facility Construction• Gas Plant Turnarounds
Carson Energy Services works with clients from 13 loca ons across Alberta and Saskatchewan, serving a footprint covering both those provinces and southwest Manitoba.
• Lampman• Alida• Calgary• Carlyle
• Saskatoon• Swift Current• Virden• Wainwright• White City
• Emerald Park• Halbrite• Lloydminster• Regina
Page A24“Th ese lots were sitting empty for years, so we approached the town about
building here,” said Dean. “It costs a lot less for commercial property (com-
pared to a city), and we think it’s an ideal location.
“It’s maybe a bit tough for people that need tanks to fi nd us, we’re not right
in their area and they won’t run across us right away, but we can service a larger
area.”
With access to major shipping corridors, Cobra Industries can service the
entire province of Saskatchewan from their central location.
Before moving into town limits earlier this year, Cobra Industries was
building 400-bbl. tanks on Dean’s farm about 15 kilometres southeast of the
town.
Th ey have a larger building and a staff of about fi ve people, and are build-
ing up to three tanks per week. “Now that we’ve moved in here, we have the
room to build bigger tanks but in the other shop we didn’t,” Pat explained.
Th e company builds all of their tanks horizontally. By using a rotating jig,
they are able to weld the fi ve-foot wide rings together in one constant, consis-
tent weld. Th e rotating jig also makes it easier to manoeuvre the tank around to
weld the various components on to it. Th is arrangement allows them to install
those the components, such as fl anges, at ground level.
Page A26
Sergiy Gryshchenko welds the base for one of the tanks that Cobra Industries is cur-rently manufacturing. Photo by Josh Schaefer
A26 PIPELINE NEWS December 2012
315A Kensington Ave., Estevan, SK
(306) 634-2835Fax (306) 634-2797
1730 Ebel Road, Weyburn, S4H 1V3Ph: (306) 842-5081 Fax: (306) 842-5309
www.apexdistribution.com
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CUSTOM TREATING AND TERMINALS
Page A25“Each company has their preferred method of assembly,” Pat said. Th e
horizontal method is easier to work with and does not require as much heavy
lifting as a vertical assembly method would take.
Cobra Industries puts a high priority on building a quality product. “Th ere
are a lot of good tanks out there, and there are also a lot of poorly-built ones,”
Pat said, “and we don’t put out a huge quantity, but we try to put out the best
quality.”
Pat noted of the tanks they have sold, they haven’t received a complaint
about the units at all.
Safety is also a large contributing factor to how they build their tanks. Co-
bra has recently joined the Safety Association of Saskatchewan Manufacturers.
“We just wanted to provide a safe environment for all of our staff ,” Dean said.
“In the other shop, we were only concentrated on building 400’s and that’s
what we’ve still been doing,” Pat said, but in the near future, Cobra will be set-
ting up to build bigger tanks, citing a lot of inquiries as the reason for expan-
sion.
Alex Karpenko welds a component onto one of the tanks. Photo by Josh Schaefer
High on quality
PIPELINE NEWS December 2012 A27
* Bed Trucks* Winch Tractors
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RIG MOVING Phone: 482-3244
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SUCCESSHEALTHHEALTH
PEACEHOPELOVE
JOY
Calgary – TransCanada Corp. has teamed up
with Chinese-owned Phoenix Energy Holdings
Ltd. to construct a $3 billion pipeline in northern
Alberta that would carry 900,000 barrels per day of
crude oil and 330,000 barrels per day of diluent.
Both companies will own a 50 per cent share in
the 500 kilometre Grand Rapids project to connect
a developing oilsands area northwest of Fort Mc-
Murray to the industrial heartland near Edmonton.
Phoenix Energy, a business entity of stated-
owned China National Petroleum Corp. is devel-
oping its Dover and MacKay River oilsands assets
and has entered a long-term commitment to ship
crude oil and diluent on the Grand Rapids pipe-
line.
Th e new pipeline system will be operated by
TransCanada and is expected to be in service by
early 2017, subject to regulatory approvals, with
capital spent between 2014 and 2017.
“As Alberta crude oil production continues to
grow, it’s critical to have the infrastructure in place
to move oil to market from emerging developments
west of the Athabasca River,” said Russ Girling,
TransCanada’s president and chief executive offi cer
in an Oct. 29 news release.
“Th is is the fi rst major pipeline project to meet
the needs of this fast-growing area.
“We are pleased Phoenix is joining us on the
Grand Rapids pipeline project to transport this
growing, long-term supply of Canadian crude oil
in a manner that respects the communities and
environment where the pipeline will operate.”
Th e project will be constructed, owned and
operated by the Grand Rapids Pipeline Limited
Partnership, which is jointly owned by Phoenix and
a wholly-owned subsidiary of TransCanada Corpo-
ration.
“Phoenix is committed to developing its Dover
and MacKay River oilsands assets through multiple
phases,” said Zhiming Li, Phoenix’s president and
chief executive offi cer.
“Given that transportation in the Athabasca
region has become a bottleneck, working with
TransCanada to build a pipeline system in a timely
fashion is crucial to implement our development
strategy.
“Th is transportation solution will be important
to Phoenix and other potential producers in this
area to monetize their huge resources,” Li said.
Page A28
TransCanada, Chinese to build oilsands pipeline
A28 PIPELINE NEWS December 2012
3D3D MAINTENANCEMAINTENANCECell numbers: Cell numbers: 483-8024, 483-7024, 483-8148483-8024, 483-7024, 483-8148
Home number: 486-2143 • Fax: 486-4855Home number: 486-2143 • Fax: 486-4855Box 12 Frobisher, SK. S0C 0Y0Box 12 Frobisher, SK. S0C 0Y0
[email protected][email protected]
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MIDALE Ph: 306•458•2811Fax: 306•458•2813
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CARLYLEPh: 306•453•4401Fax: 306•453•4402
carlyle@totaloil eld.ca
Page A27
TransCanada
expects to apply for
regulatory approval for
the project in 2013.
Th e fi nal pipeline
route and design will
be determined with
Aboriginal and stake-
holder input, as well as
consideration for envi-
ronmental, archeological
and cultural values, land
use compatibility, safety,
constructability and
economics.
Th e Grand Rap-
ids system will further
expand TransCanada’s
liquids transportation
capabilities and comple-
ment TransCanada’s
extensive operating
experience in Alberta.
TransCanada
recently announced the
Northern Courier Pipe-
line project, a 90-kilo-
metre pipeline system
to transport bitumen
and diluent between the
Fort Hills mine site and
the Voyageur Upgrader
located north of Fort
McMurray, Alberta.
Critical to have the infrastructure in place
Rig Locator records
show that 82,295 oper-
ating days were booked
in the fi rst three quar-
ters of 2012 by members
of the Canadian Asso-
ciation of Oilwell Drill-
ing Contractors, down
from 95,084 operating
days in the comparable
period last year.
Total metres drilled
by CAODC members
during the January-
to-September interval
declined to 15.86 mil-
lion from 16.19 million
metres in the year-prior
period.
Wells have aver-
aged 1,938 metres over
the fi rst nine months of
2012 compared to 1,753
metres a year ago.
It took CAODC
members an average
10.10 days to drill a well
during the nine-month
period versus 10.30 days
to the end of September
2011.
Including oilsands
evaluation holes and
experimental wells, the
top contractor over
the fi rst nine months
of 2012 was Precision
Drilling. Th e contractor
drilled 2,611 wells and
fi nished 4.01 million
metres of hole.
Precision's main
customer during the
nine-month period
was Canadian Natural
Resources Limited,
which accounted for
788 of its wells (30.2
per cent). Husky Energy
Inc. (231 wells) and En-
cana Corporation (229
wells) - each accounting
for 8.8 per cent of the
total – were the next top
customers for Precision.
Th e company’s rig
235 drilled 76 wells to
the end of September,
the highest count for a
rig.
Second-place
fi nisher Ensign Drilling
Inc. rig released 1,838
wells and drilled 2.69
million metres.
Canadian Natural
was also the main cus-
tomer of Ensign (326
wells, or 17.7 per cent
of the total), followed
by Cenovus Energy
Inc. (195 wells, or 10.6
per cent) and Suncor
Energy Inc. (139 wells,
or 7.6 per cent).
Savanna Energy
Services Corp. was the
only other contractor to
drill more than a thou-
sand wells. Th e com-
pany rig released 1,111
wells over the fi rst three
quarters and fi nished
1.84 million metres
of hole. Th e company
main customers were
Cenovus (329 wells,
or 29.6 per cent of the
total), Northern Bliz-
zard Resources Inc. (77
wells, or 6.9 per cent of
the total) and Canadian
Natural (72 wells, or 6.5
per cent of the total).
In fourth
place, Trinidad Drilling
Ltd. rig released 687
wells in the January-to-
September period (1.43
million metres of hole),
followed by Nabors
Drilling with 492 wells
drilled (1.31 million
metres).
Precision was the
top contractor for hori-
zontal wells during the
fi rst nine months of the
year with 1,202 wells
rig released and 2.96
million metres of hole
(excluding test/experi-
mental or DSW wells).
Ensign was second with
837 horizontal wells
(1.99 million metres),
followed by Trinidad
with 537 wells (1.31
million metres), Sa-
vanna with 448 wells
(1.2 million metres)
and AKITA Drilling
Ltd. with 239 wells
(617,048 metres).
Excluding test wells,
Precision’s share of the
market rose to 28.57 per
cent over the fi rst three
quarters of 2012 from
27.43 per cent last year.
Ensign’s market share
rose to 17.58 per cent
from 16.45 per cent.
Rig utilization in
the third quarter for
CAODC members
was 38.66 per cent, off
from 51.09 per cent a
year ago. Nine-month
rig utilization stands at
37.94 per cent this year
compared to 43.11 per
cent a year ago.
Excluding ex-
perimental or Eastern
Canada wells, AKITA's
38 rigs had a 63.87 per
cent utilization rate
during the fi rst nine
months of the year. Pan-
ther Drilling Corp.'s
three rigs booked a
61.56 per cent utiliza-
tion rate, while Fox
Drilling Inc.'s two rigs
had a 60.40 per cent
utilization rate.
Ironhand Drill-
ing Inc. ranked fi rst
in average metres
drilled per rig (44,749
metres), followed by
Panther (32,313 metres)
and Bonanza Drilling
Inc. (31,573 metres).
Operating Days, metres drilled declined
PIPELINE NEWS December 2012 A29
By Richard Macedo
(Daily Oil Bulletin) Calgary –
Crescent Point Energy Corp. reported
lower net income in the third quarter,
and reached a new production record
during the period of 99,631 barrels of
oil equivalent per day, weighted 90 per
cent to light and medium crude oil and
liquids.
Th is was three per cent above the
second quarter of 2012 and 38 per cent
higher than the third quarter of 2011.
Th e company's net income in the third
quarter dropped to $2.35 million from
$204.62 million during the same pe-
riod last year. Th is happened mainly as
a result of an unrealized derivative loss
and increased depreciation, depletion
and amortization expense, partially
off set by the deferred tax recovery, the
increase in funds fl ow and an unreal-
ized foreign exchange gain.
During third quarter, the company
spent $259.4 million on drilling and
development activities, drilling 149
(84.7 net) wells with a 100 per cent
success rate. Crescent Point also spent
$54.5 million on land, seismic and
facilities, for total development capital
expenditures of $313.91 million.
“As we approach the end of the
year, we feel we're in a great position to
meet or exceed our targets for 2012,”
said Scott Saxberg, president and chief
executive offi cer, during a third quarter
conference call on Nov. 8.
Crescent Point maintained con-
sistent monthly dividends of 23 cents
per share, totalling 69 cents per share
for the third quarter of 2012. Th is is
unchanged from 69 cents per share
paid in the third quarter of 2011. On
an annualized basis, the third quarter
dividend equates to a yield of 6.5 per
cent, based on a volume weighted aver-
age quarterly share price of $42.54.
Subsequent to the quarter, on
Nov. 1, the company announced the
US$861-million acquisition of Ute
Energy Upstream Holdings LLC, a
privately held oil and gas producer
with assets in the Uinta Basin light oil
resource play in northeast Utah.
Th e company said its balance sheet
remains strong, with projected average
net debt to 12-month cash fl ow of ap-
proximately one times and signifi cant
unutilized credit capacity.
Crescent Point continued to
increase oil deliveries through its
Stoughton rail terminal, providing
access to diversifi ed refi ning markets
and more stable price diff erentials to
West Texas Intermediate (WTI). Th ird
quarter average throughput was more
than 15,500 bpd, with an additional
1,000 bpd also being delivered to
third-party sites.
Page A30
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A30 PIPELINE NEWS December 2012
Curly’s Picker Service Ltd.Curly’s Picker Service Ltd.Mark T. (Curly) Hirsch
1595 Dieppe Cres.Estevan, Sask.S4A 1W8
Secor Certi edCell: (306) 461-5898Fax: (306) 634-6690
Crescent Point Energy will expand its Stough-ton facility, see here last winter, to con nue its crude-by-rail marke ng strategy. File photo
Crescent Point boosts oil deliveries on rail Page A29
Expansion of the Stoughton rail facility, which
is expected to be completed in the fourth quarter,
will increase shipping capacity to 40,000 bpd.
In the April 2012 Pipeline News story about
this facility, it was noted the company’s oil produc-
tion in the region at that time was rougly 46,000 to
47,000 barrels per day. Th e added shipping capac-
ity will mean Crescent Point will have the ability
to ship most of its southeast Saskatchewan crude
production by rail.
Late in the third quarter, the company com-
pleted preparation of its rail loading facility in
the Dollard area of southwest Saskatchewan and
delivered its fi rst loads in October. Current capacity
is approximately 4,000 bpd.
“For competitive reasons, we are not disclos-
ing exact markets for our railed volumes,” Trent
Stangl, the company's vice-president of marketing
and investor relations, told the Bulletin. “Generally
speaking, we have targeted multiple markets outside
of the well-supplied U.S. PADD II market. Th ese
are markets that have historically been supplied by
waterborne crudes. Th e ability to receive volumes by
rail opens up a new opportunity for the refi neries in
these markets.”
Crescent Point continued to implement its
hedging strategy to provide increased certainty over
cash fl ow and dividends. At Oct. 31, the company
had hedged 56 per cent, 54 per cent, 35 per cent, 17
per cent and three per cent of its oil production, net
of royalty interest, for the balance of 2012, 2013,
2014, 2015 and the fi rst quarter of 2016, respective-
ly. Average quarterly hedge prices range from C$88
per bbl. to $94.
In the third quarter, Crescent Point participated
in the drilling of 66 (43.8 net) wells in southeast
Saskatchewan and Manitoba, achieving a 100 per
cent success rate. Of the wells drilled, 44 (35.6
net) were horizontal wells in the Bakken light oil
resource play. Th e company also participated in
the drilling of 22 (8.2 net) horizontal oil wells in
conventional zones.
During the quarter, the company converted
six additional Viewfi eld Bakken producing wells
to water injection wells. By the end of the third
quarter, Crescent Point had converted a total of
41 producing wells to water injection wells in the
play. Production performance from water injec-
tion patterns in the Viewfi eld Bakken resource play
continues to exceed Crescent Point's expectations
and has demonstrated the fi eld wide applicability of
waterfl ood to the play.
Discussions with potential unit partners and
the Saskatchewan government to implement a
unit-wide waterfl ood are advancing.
Across Crescent Point's asset base, the company
continues to pursue multiple applications of new
technologies to maximize recoveries and improve
effi ciencies. In the Saskatchewan Bakken, this has
included re-entering existing wells that were origi-
nally completed with eight-stage and 16-stage ce-
mented liners and increasing them to 25-stage and
30-stage cemented liner completions. Th e company
has identifi ed 90 wells in the play as candidates for
this process. Page A31
PIPELINE NEWS December 2012 A31
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Page A30
Crescent Point has
also drilled three, two-
mile horizontal wells to
date in the Flat Lake
Bakken play, achieving
a 100 per cent success
rate. Based on this suc-
cess, the company plans
to drill a fourth, two-
mile horizontal well in
the fourth quarter.
During the third
quarter, the company
participated in the drill-
ing of 20 (14.5 net) oil
wells in southwest Sas-
katchewan, achieving
a 100 per cent success
rate. Of these wells, 11
(9.8 net) were drilled in
the Shaunavon area.
Th e company is
currently injecting
water into seven hori-
zontal injection wells
in fi ve pressure mainte-
nance programs in the
Lower Shaunavon zone.
Crescent Point contin-
ues to be encouraged
by results to date in
all programs. Th rough
acquisitions completed
in 2012, Crescent
Point has acquired 17
injection wells that are
injecting water into an
additional fi ve patterns
in the Upper Shau-
navon formation. Based
on success to date, the
company plans to begin
injecting water into an
additional fi ve wells in
the Upper Shaunavon
by year-end.
In total, Crescent
Point expects to have
up to 30 water injection
wells into the play by
year-end 2012.
To date, 30 wells
have been drilled at
eight wells per sec-
tion spacing in both
the Lower and Upper
Shaunavon zones with
no signs of interference.
By the end of the third
quarter, the company
had drilled two wells in
the Lower Shaunavon
at 16 wells per section,
with plans to drill an-
other two by year-end.
Late in the third
quarter, the company
completed prepara-
tion of its rail loading
facility in the Dollard
area and delivered its
fi rst loads in October.
Current capacity is ap-
proximately 4,000 bpd,
with plans for further
expansion in 2013.
Crescent Point also
completed construction
and commissioned the
second of three new
batteries planned for
2012. Construction on
the remaining battery is
underway, with com-
missioning anticipated
by the end of the fourth
quarter.
In the south-central
Alberta and west-cen-
tral Saskatchewan areas
during the third quarter,
32 (20.6 net) oil wells
were drilled, with a 100
per cent success rate.
Th e company's plans
for its fi rst waterfl ood
pilot in the Beaverhill
Lake light oil resource
play are well underway.
Crescent Point expects
the pilot to be opera-
tional in early 2013.
To date, the com-
pany has drilled 17
(17 net) wells with a
100 per cent success
rate in the Viking area
on lands acquired in
the Cutpick Energy
Inc. acquisition, which
closed on June 20.
Th e successful drilling
results from this initial
program have expanded
the pool boundary by
eight sections, beyond
the 83 net sections
expected at the time of
the acquisition.
Late in third
quarter, Crescent Point
converted a producing
well to a water injection
well on the Cutpick
lands, bringing the
total number of water
injection wells to three.
Th e waterfl ood program
began in the area in
1998 and, in August
2011, a second pilot
was established. With
encouraging production
performance to date,
the company plans to
convert an additional
three producing wells to
water injection wells on
these lands in 2013.
Crescent Point has
access to a signifi cant
land base in southern
Alberta and has been
pursuing several explo-
ration projects in the
area. In the fourth quar-
ter, the company plans
to drill up to an ad-
ditional seven wells to
follow up on previously
drilled unconventional
exploration wells in the
Alberta Bakken play.
In the U.S., during
third quarter, the com-
pany participated in the
drilling of 30 (5.4 net)
oil wells, of which 14
(2.2 net) targeted the
Th ree Forks formation,
achieving a 100 per cent
success rate. Crescent
Point also drilled one
(0.4 net) service well.
In total in 2012,
the company expects to
drill up to 16 net wells
targeting the Bakken
and Th ree Forks zones.
Crescent Point is cur-
rently working with
its service providers
to reduce capital costs
that have seen upward
pressure due to high
industry activity levels
in North Dakota.
Crescent Point ex-
pects to release its 2013
capital expenditure
plans in early Decem-
ber.
A32 PIPELINE NEWS December 2012
NEWSPIPELINE SECTION B
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By Brian ZinchukEstevan – Wil-Tech
Industries of Estevan is
undergoing a transfor-
mation, as the hydrau-
lics specialist has seen
one of its products take
off . Th at, in turn, has led
to some introspection
and evolution within the
company.
About four years
ago Wil-Tech began
work on the fi rst pro-
totype of its bucking
unit. Th e old way of
assembling and disas-
sembling downhole oil
tools was to manually
use pipe wrenches and
snipes. That didn’t
provide any way of
ensuring how much
torque had been ap-
plied, and generally
speaking, wasn’t par-
ticularly safe. So Wil-
Tech started using
power tongs, the type
used on service rigs, to
do the job of thread-
ing pipe together or
disassembling it.
The tongs are
mounted horizontally
instead of vertically,
and are tied into an
electronic monitoring
system that provides
detailed records on
how much torque is
applied. It takes away
the manual factor, and
instead provides safe,
repeatable, measurable
torque application to
oil tools. The measur-
able part is key from a
quality control per-
spective.
The product is
known as the Wil-
Torq 11000.
“We have built
different sizes. This
is the most common
we have been asked
for,” said Jim Wilson,
president. His son
Dustin is Estevan
branch manager and
is also involved with
product development
and production.
The product has
seen several years of
evolution. Indeed, each
order has had clients
asking for some form
of customization, be
it different lengths,
different torques, dif-
ferent logging require-
ments, etc.
The big appli-
cation has become
packers. “In the past,
that would have been
with a pipe wrench or
chain tong, and that
was very unsafe. The
problem isn’t threading
it together as much as
taking it apart,” Jim said.
Page B2
Making the transition from one-offs to manufacturing
Travis Souther, le , and Cohen Wells prep a new Wil-Tech Industries Wil-Torq 11000 bucking unit prior to delivery. Both are heavy duty mechanic appren ces, with Wells as a hydraulic service technician and Souther being a cylinder mechanic.
A completed Wil-Torq 11000 is ready to go out the door. The machine uses power tongs to ght-en or loosen oil tools, and provided a computerized record of that ac on.
B2 PIPELINE NEWS December 2012
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Page B1Now things are
starting to take off . Th ey
are in talks with three of
the four largest oil ser-
vices companies in the
world, a.k.a. the big four,
and one has recently
placed an order for 10
units. Th at was after
they initially purchased
one, and then three.
Th eir total, after this
order will be 14 units.
“We’ve sold dozens
of units,” Jim said.
Predominately
they have gone to the
Canadian market, but
some clients have U.S.
operations where they
are now being deployed.
“We’ve shipped to
Williston, and next is to
Fort Worth,” Jim said.
Dustin noted they
have bucking units in
Grande Prairie, Edmon-
ton, Red Deer, White-
court, and of course,
Estevan, where most of
the local oil tool compa-
nies employ a unit.
“We’re certainly
surprised how well it’s
doing in the market,”
said Jim, who pointed
out a company from
Estevan is now supply-
ing the North American
market.
“Th e hard part is
the specifi ed needs of
each customer,” Dustin
said. “It’s evolved with
knowledge of our em-
ployees and feedback
from customers.”
“Our intent is to
have our generation two
version ready for the
2013 oil show,” he said,
referring to the Sas-
katchewan Oil and Gas
Show in Weyburn next
June 5-6.
Th e following week
is the Global Petroleum
Show in Calgary, where
they hope to make a
splash.
“Evolving as a
manufacturer, you want
to standardize the units,
but the customers keep
wanting to add new
functions,” Jim said.
“We’ve been asked
for mobile trailer-
mounted units,” he not-
ed. Higher torque values
are another request.
One potash mine
that is using oil tools
wanted one for assembly
and disassembly.
“One of the larg-
est sellers for the unit is
safety,” Jim said.
“Safety and effi -
ciency,” Dustin added.
“Th e torque monitoring
is important as well. A
report can be printed
off at the time. Th ere’s
an approval process
saying, ‘Yes, it has been
torqued.’”
Diff erent customers
have diff erent software
requirements to inte-
grate into their own
system. As a result, a
company that special-
izes in hydraulics and
machining now has a
software engineer on
staff in Regina.
“We had to have
that in-house,” Jim said,
noting the important of
retaining that knowl-
edge from job to job, as
opposed to hiring short
term contractors.
Th at software
engineer also works
on other aspects of the
business, such as pres-
sure testing, logging
and hose certifi cation.
Th e company is also
working on getting its
ISO 9002 certifi cation,
an important consid-
eration when working
with large, international
fi rms.
Operators miss it when they move“Basically the prod-
uct sold itself,” Dustin
said.
An important
element has been the
operators of these
units. As they have
gone on to work with
other companies in the
oil tool business, they
quickly miss working
with these bucking
units, and request one
at their new place of
work.
Dustin said, “It’s
not so much managers
as operators requesting
it. Th ey’ve switched jobs,
then push for it. Th at’s a
huge aspect.”
Service manager Mike Holowchuk, le , and manufacturing department manager Jason Hale go over some blueprints.
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By Brian Zinchuk
Weyburn – When it
comes to new products,
this one really sucks,
and that’s a good thing,
because that’s exactly
what it’s supposed to
do.
Over the past year,
Weyburn-based Stewart
Steel Inc. has gone from
the prototype stage to
producing and deliver-
ing over a dozen units
of its Vac-U-Spread, a
vac wagon used primar-
ily for handling drilling
by-product disposal.
“Th e product origi-
nated as an agricultural
product, but applied
in the oilfi eld for land
spreading,” said Jarrett
Johnson, project man-
ager.
Th e agricultural
application for similar
units is in the use of
collecting and spreading
manure, usually from
pig barns.
Johnson has been
with Stewart Steel for
12 years. “I grew up on
a hog farm. I ran these
things as a kid,” he said.
“Guys were using
these in the oilpatch,
buying ag units. But
the service life wasn’t
designed for industrial
use,” he said.
An agricultural
product, for instance,
might see 2,000 to
4,000 hours of use
before showing signs
of wear. Stewart Steel
sought to double that.
Th e B10 component
life ratings they were
aiming for (the point
at which 10 per cent
of units would start
seeing failure) is much
higher. “We shot for
8,000 hours in the B10
life,” he said.
“Everything was
beefed up from an ag
product. We made it
more user-friendly
and less maintenance
intensive. We used
higher-quality com-
ponents,” according to
Johnson. “Th e pump
and hydraulics are over-
rated past what they
need to do.”
Page B4
Bee ng up an ag product for the oilpatch
This is a near-complete Vac-U-Spread vac wagon.
Project manager Jarre Johnson demonstrates the side-opening door.
B4 PIPELINE NEWS December 2012
#6 - 461 King St. • Estevan, SK
637-3460 www.petrobakken.com
Strength In Our Resources
...and to all a Good Holiday!
Page B3Doug Demby of
Demby Trailer Ltd.
pointed out the op-
portunity to Stewart
Steel. Th e two com-
panies work closely
on products, and the
Vac-U-Spread is sold by
Demby Trailer.
Th e offi cial decision
to go ahead with the
project was Oct. 1, 2011.
Th eir turnaround time
was quick.
Johnson said, “We
were doing fi rst unit
testing by Jan. 5.”
Th at initial pro-
totype was tweaked
and eventually sold. So
far, 13 units have been
delivered.
“Th ey’re all over the
place – Saskatchewan,
Alberta and Manitoba
now,” he said.
“It’s built and mar-
keted as an ag prod-
uct. It’s not a licensed
vehicle like a vac truck,”
Johnson explained.
“We’re an ag manufac-
turer.”
Many of the people
who purchase these
units are farmers who
will hire on with their
tractor and vac wagon to
work with a drilling rig.
Th ey’ll put a blade on
the tractor and take care
of snow, for instance.
It’s pulled by the
tractor and needs either
the PTO or hydraulics
of the tractor.
Th e Vac-U-Spread
is a crossover product,
he noted.
Th e key thing is
high fl otation. Th ese
units carry a lot of
weight. With a larger
capacity than typical
farm units, their 100 per
cent capacity is 23 cubic
metres, with a usable
capacity of 20 to 21
cubic metres. Including
the unit, the gross total
weight is up to 85,000
pounds.
“Big trucks leave
ruts,” Johnson said,
adding that tractors can
land spread in softer
conditions without
negative environmental
impact.
“We recommend a
large four wheel drive
tractor,” Johnson said.
Other options are the
rubber track-style trac-
tors, like the Case IH
Quadtrac. As for tires or
tracks, they don’t note a
preference.
Th e primary usage
may be land spreading,
but over the past year
some units saw usage
sucking production
fl uids out of tanks and
bringing them to the
road to be transferred to
trucks.
Page B5
A dedicated produc on cell is used to build Vac-U-Spread units.
Vac-U-Spread built for industrial usage
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GLADTIDINGS
Page B4Design
“We identifi ed areas
of improvement and
modelled everything in
3D SolidWorks,” he said,
referring to a three-
dimensional drafting/
modeling program.
Th e design was also
put through an extensive
amount of fi nite ele-
ment analysis, looking
for stress points in the
design. Computation-
heavy fi nite element
analysis used to be the
purview of companies
like Boeing or Lockheed
Martin. Now a small
manufacturer in Wey-
burn is capable of having
the computer power to
do it.
“We’ve structured
our company to use
technology to our advan-
tage,” Johnson said. “We
do extensive 3D design.
We can look at things
several diff erent ways
before we start, without
cutting a piece of steel.
“I can do physical
collision analysis, and
multiple hole alignment
analysis.”
Multiple hole
analysis looks at a series
of holes that are needed
to line up, and works
within their tolerances to
see if it will fi t.
“I’m in the process
of doing an owner’s
manual right now,”
Johnson said. It will
incorporate the feedback
they have received from
users.
“So far we estimate
there has been approxi-
mately 10,000 hours of
usage in the fi eld, so they
have a good idea of what
works and what doesn’t.”
“Our machine has
an internal paddle agita-
tor,” Johnson said. “In
testing we had people
who own machines tell-
ing us we had exceeded
what was expected.”
Once the company
reached its 10th unit,
they did some reassess-
ment, and with the Mark
II design, they switched
to a heavier motor and
reduced the size of the
agitator. Agricultural
designs use an auger
for agitation, but they
wanted something with
more of a stirring action.
Th e upsized motor and
reduced agitator size
made for approximately
10 times more agitation
power.
“We tested it by
sucking up cubic yards
of gravel. At one time
we had about four cubic
yards of gravel in the
thing.”
A typical agricultur-
al unit will generate 15
inches of vacuum pres-
sure. Th e Vac-U-Spread
far exceeds that.
“Th is will generate
in excess of 22 inches
of vacuum pressure,” he
said. “Th is thing really
sucks.”
Vac-U-Spread vac
wagons use the exact
same pump system as
that used on vac trucks.
“We used Hibon 820
blower packages,” John-
son said.
Th e package in-
cludes muffl er, silencer,
valves and the drive
train.
“We’ve had owners
with a tridem truck and
Vac-U-Spread say the
Vac-U-Spread has better
performance,” he said.
“Given the choice, they
will pick the Vac-U-
Spread over the truck.”
“It will pull on 23
cubes of pure liquid
(such as water) with a
seven foot lift in just
over seven minutes.”
It doesn’t take long
to blow off a tank, either.
About 45 seconds will
do it. Th ere’s a complete-
ly adjustable rear spread
plate that adjusts for
thickness or pattern.
Th ere are options
that can be included,
like tool boxes and a rear
beavertail step. Choices
can be made for straight
fl uid or high solids
agitation. And similar to
Henry Ford’s philosophy,
you can have it in any
colour you want, as long
as it’s blue.
While PTO power
is typical, it is possible to
get a hydraulically-driv-
en system in situations
where the tractor may
not have a PTO.
Unlike vac units
seen on trucks, the rear
door swings to the side,
instead of being raised
by a hydraulic ramp.
It means one man can
close it and seal it by
hand, and there is no
danger of having a door
suspended above you.
It typically takes
about four weeks to
produce a new unit. One
of Stewart Steel’s defi n-
ing characteristics is its
adoption of Lean manu-
facturing principles,
seeking to eliminate as
much waste as possible
from production. “We
don’t build fi ve frames
and fi ve tanks. Th ey’re
built as one. We’ve built
an adaptable production
cell, set up to build this
machine. It’s a modu-
larized project. Based
on orders, we can add
more men, or remove
men, without aff ecting
production effi ciency,”
Johnson said.
Jarre Johnson uses the hand crank to seal the door.
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By Brian ZinchukForget – Location is the most important part of real estate, and the latest
addition to the waste disposal business in southeast Saskatchewan seems to
have locked up a good one.
Fleet Energy opened its doors this fall, and held a grand opening on Oct.
30. It’s located right on the south side of Highway 13, just 3.2 km east of
Forget, putting it on the Bakken fairway and perhaps just as importantly, on
primary highway.
Nathan Hollick, Fleet Energy’s president and CEO, has long, deep roots
in the southeast Saskatchewan oilpatch. One can run out of ink writing them
down.
“I’ve operated in southeast Saskatchewan since I started my fi rst company
in 1981 – Vista Petroleums. Th at was bought out around ’95-96. My last com-
pany sold out in 2010,” he said.
Herc Oil was its name, and it had the slogan of “I will work with Herc.”
“We took over the Williston Wildcatters Assets,” he said.
“I co-founded Big Sky Drilling in 1985. Ensign bought it out around
2000. I sold out my shares to the operating group before that.
Hollick led a number of oil companies, specializing in reservoir exploita-
tion, from 2002 to 2006, including Empire Capital and Empire Resources.
And now Fleet is Hollick’s going concern. He’s backed by a small group of
investors out of Calgary, some of which “had a Saskatchewan persuasion.”
Hollick has always been a Saskatchewan resident and was raised in Blaine
Lake, Saskatchewan.
“Fleet came together as a group of oil people who saw a need to have these
waste facilities. With the advent of the technology of the Bakken, you have
fl owback fl uids from fracking. Prior to the Bakken, wells in southeast Sas-
katchewan weren’t fracked,” Hollick explained.
“We’re a waste processing facility. We’re all here providing a service.”
Chad Bunch, vice-president of business development and a professional
mechanical engineer, noted the highway location was a big reason they chose
the site. Page B7
Fleet Energy offers new waste disposal services
Some of the people responsible for the new Fleet Energy facility near Forget are, from le , Shane Pollock, opera ons manager; Kevin “C.J.” Thomas-Simpson, plant operator; Chad Bunch, vice-president of business development; and Nathan Hollick, president and CEO.
PIPELINE NEWS December 2012 B7
#6 - 461 King St. • Estevan, SK
637-3460
www.petrobakken.com
Page B6“Location is critical. Accessibility is key,” Hollick said. “It just made sense.
Highway 13 never gets banned. It’s an open corridor. It’s strategic for us to be
here.”
Th e site used an existing well that was re-entered in 2008 and converted to
a disposal well with coated tubing. Th e well’s casing was checked with an eddy
current and fl ux leakage tool beforeany fl uid was injected.
Th e well uses the Mannville formation for disposal.
Th e site will accept oily waste, produced water, fl owback fl uids, completion
water and solids. Th ey just opened up their solids receiving area at the time of
the grand opening.
“You’ll see a guy come in with two cubic meters of oily solids. What do you
do with two cubes?” Hollick asked. “We’re a facilitator. We then deal with the
solids, blend them down, and/or clean them up.
“It depends on the content of the solids which determines how we have to
deal with them. Th ey can go to a land farm, a landfi ll, or caverns.
Th e facility has two 1,000-bbl. tanks, and four 750-bbl. tanks, plus a fl oc
tank and the aforementioned dumping bin for solids. It was built with the abil-
ity to expand. Indeed, by the time this edition hits newsstands, that expansion
was expected to have taken place.
“We are looking to expand it as early as next week, adding another 1,000-
bbl. tank,” Bunch said.
Four layersIn designing their facility, Fleet sought to set a new standard.
Bunch said, “We have four layers of protection between our fl uid and the
environment.”
Th e fi rst layer is the pipes, valves and fi ttings.
Secondary containment is standard, but they’ve also added a box and liner
for any pipe outside the usual secondary containment structures. Th at means
between the unloading points and the tank farm, for instance, the piping is all
surrounded by a lined box, something that Bunch said is “not at all common.”
Th e entire production area is lined and sloped to a containment pond, such
that if something did spill on the surface or breach secondary containment, it
would fl ow into that lined pond. Below the lined pond is a sandy layer sloped
to a monitoring sump, and beneath that is a bowl-like structure made up of a
minimum three-foot layer of clay. Indeed, there is a liner and clay under all of
the production area.
Th e fourth layer is a keyed dyke surrounding the lease site, dug down to the
natural clay layer. Since the area saw fl ooding in 2011, the entire site in use was
raised above that level. “If this place were to fl ood now, the highway would be
fl ooded before it breached our dykes,” he said.
Since the highway did not fl ood during this historic summer of 2011, that
should not be an issue. Th ey are seven feet above last year’s high water.
Surrounding the site are piezometer wells for monitoring outside the keyed
dyke. Th ere are four barriers and four ways of monitoring those barriers, Hol-
lick said.
“It was our commitment when we were consulting people in the area,”
Bunch said. “We wanted to engineer our lease to mitigate any eff ects on the
environment.
Page B8
Through the pea soup fog you can make out all the important element of Fleet Energy’s new disposal site. In the foreground is the solids bin. From le is the reten on point, unloading sta on, pumphouse and tank farm.
B8 PIPELINE NEWS December 2012
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Page B7“I like to think of this as the Fort Knox of leases when it comes to environ-
mental protection ,” Hollick said. “When I handed in this application to the
regulators, I thought this would set the bar.
As for piping protection, Bunch noted there are four things you need: cor-
rosion, chemical, crack and abrasion resistance.
“We use a combination of coatings, stainless steel and specialty HDPE
(high density poly ethylene) wherever applicable. We engineered out the sus-
ceptibility. Th ere’s lots of stainless steel fi ttings.
Hollick said,“Th is is a business where the environment is important. We’re
all here for a short time, geologically speaking. Th e idea was to build a safe
place for the environment. We should all leave as little a footprint as possible.”
OperationsTh e company had a “soft start” of operations at the beginning of Septem-
Four layers of protection
ber, and opened to general usage in the beginning of October.
Th ere are three unloading stations staggered at a 45 degree angle. Trucks
drive in a loop, fi rst going to the left to the unloading stations, then looping to
the right around the containment pond and out to the exit. As a drive-through
system, there is no backing required for fl uid unloading, but solids disposal
does require one to back up to the receiving bin.
Th e lease is designed and tested to handle B-trains.
Th ey rely on the truck pumps to unload, typically at a rate of one to two
cubic metres per minute, making for 15 to 30 minute unload times. With the
additional tank they can handle about 40 trucks a day.
Th e site is open 14 hours a day and on call for the remaining hours.
Th e facility has three operators.
Th ey are already looking at additional sites. “We have two locations we’re
looking at,” Hollick said, casting a broad net which includes Saskatchewan,
Manitoba, Alberta, northern British Columbia, North Dakota and Montana.
Three unloading sta ons are set up to allow drive-through opera ons.
A truck is unloaded. The yellow tub is a secondary containment device.
PIPELINE NEWS December 2012 B9
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INNOVATIONINNOVATIONFOCUSFOCUS
By Brian Zinchuk
Redvers – A company that got its start build-
ing underbalanced drilling equipment for Russia
has expanded to include fabrication, equipment
rentals and manufacturing. In 2011, the company,
Magna Fab Inc., part of Magnafl o Corp., came
home in a way, establishing a Redvers operation.
Home for owner Marc Dumaine was
Storthoaks before he ended up in Calgary. Now
his brother, Trent, runs the Redvers operation.
Th eir display was one of more prominent at
the Redvers Oil Showcase this past spring.
Magnafl o Corp. is the holding company
established 11 years ago, Marc described as he
drew a fl owchart of the various businesses under
its umbrella.
Eleven-year-old Magnafl o Systems Inc.
builds underbalance drilling equipment. Mag-
nafl o Services is the support team that goes
into Russia to support that equipment and train
operators. It was formed ten years ago.
In 2008, Magna Fab Inc. came to be, with
welding shops in Calgary and now in Redvers.
Magna Flo Rentals has locations in Redvers
and Calgary. It was founded in 2006 and has four
partners – Marc Dumaine, Trent Dumaine, Larry
Matthewson and Mike Shea.
Scary week to launch a businessMagnafl o Systems got it start precisely when
the world got turned upside down. In the second
week of September 2001, Marc was slated to fl y
to Russia. Th at was scant days after the World
Trade Center and Pentagon had planes fl own
into them.
“On Sept. 17, I got on a plan and went to
Russia. I’ve got to go. Russia’s not in trouble with
the U.S. I stayed in the World Trade Center Ho-
tel in Moscow. I went into Siberia with the guys I
met there. I started talking underbalance equipment
with these guys. It took fi ve more trips into Siberia,
and we fi nally convinced the oil company to use coil
tubing drilling equipment.”
Page B10
Russian work leads to Canadian manufacturing
Marc Dumaine, le , and Trent Dumaine pose beside Magna Fab’s sta onary hardbanding unit in Redvers. Below them is an example of bre grate, which the company will use to make “safety mats.”
B10 PIPELINE NEWS December 2012
SASKATCHEWANOIL & GAS SHOW
June 5 & 6, 2013
Please download form off our website: www.oilshow.caEmail or send to address below
Page B9 Marc’s experience with underbalance drilling came
from working with Tesco for four years prior to 2001. Before that, like many
men from Storthoaks, he worked with Big Sky Drilling, which was purchased
by Ensign. He also worked with Long Rider.
“I went to the school of hard knocks. I started on rigs in 1984 with J-horn
Drilling at Drumheller. I worked two weeks and gave up. It was too cold. Th e
next summer I worked for Terry Carpenter of Carievale. We got a job working
with Bird Drilling at Waskada, Manitoba.
“I eventually took off for Alberta in 1988. I started production well testing
there for Norward Energy Service. While working for Tesco, I moved into sales
for underbalanced drilling, downtown, and was placed in with the design team
for building new UBD units.
In Russia, he noted, “We sold them coil tubing rigs good for 4,000 metres.
National Oilwell built the coil tubing rigs and Magnafl o Systems built the
underbalance drilling systems.
“We rotated 16 guys in and out of Russia, training the Russians on opera-
tions and drilling over 2002-2003.
Th eir underbalance systems were complete with rotating head, choke
manifold with fl owlines coming off the BOPS. (Th e well production defl ects
into the fl owlines and is controlled with choke). Th e fl ow then continued into
a three phase separator which separates it into solids, fl uids and gas. Nitrogen
used in the process goes to the fl are stack along with the gas.
“Siberia is very similar to Saskatchewan for drilling. Th ey have the same
types of formations,” Marc said. “On average a well is 3,000 metres true vertical
depth.”
Th e equipment to reach such depths is usually triple drilling rigs and big,
coil rigs.
A Russian drilling rig will put casing into the hole, and do 15 to 20 wells
on a pad. “Th at rig would then move and we would move in with smaller pipe
and tools and drill into the formation,” he said. “Baker Hughes calls it ‘coil
track.’”
“We use nitrogen and oil, because nitrogen is used as an artifi cial lift mak-
ing the hole cleaner, also (you) drill faster.”
“It was a new way of drilling back then. Th is had already taken off in
Canada. Page B11
Magna Fab establishes itself in RedversMagna ow Systems’ underbalance units have found a home in Siberia, as seen here. Photo submi ed
PIPELINE NEWS December 2012 B11
Merry Christmas!We thank you for your support and wish you the
very best of the holiday season!
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Page B10“Western Siberia is all muskeg. Th ey build roads from the sand at the bot-
tom of lakes. Th e sand will sink into the ground. Th en they bring rock in by rail
from the mountains. Th en they pave the road. It takes two complete years to
build the lease,” Marc said.
Th e horizontals legs are drilled just 150 metres. Th ey then pull back and
drill two more horizontal legs in diff erent directions.
“With 114 mm casing in the well, it will allow for 90 tonnes per day of oil.
We increased their production to 200 tonnes per day,” Marc said. A tonne of oil
is roughly one cubic metre.
Magnafl o Systems has sold 13 underbalance systems and 15 nitrogen
membrane units into Russia over the last decade. Th ey continue to sell parts
and provide manpower for support, as well as consulting on new wells in new
fi elds.
Everything has been built in Calgary. Th e last fi ve of the 13 units were
built by Magna Fab.
From overseas to domestic“We started breaking into Canada as Magna Fab Inc.,” Marc said. “We saw
opportunity in the Bakken, being from Saskatchewan, knowing who we know.
It was two years that we were looking for a shop in Saskatchewan.”
Carnduff was considered, but they found Redvers to be a better fi t. “Red-
vers wasn’t really an oilfi eld town,” he said, and thus, less economic pressures in
the community.
Th e local John Deere dealer had moved to a new facility and its old build-
ing was up for sale, but had been lined up by someone else, which led Magna
Fab to buy two other lots on the north side of Highway 13. Th e initial deal for
the John Deere shop fell through, however, so in July 2011 Magna Fab Inc. did
the deal on the dealership and moved in.
“We gutted the whole offi ce area. Th is used to be a parts area,” he said in
the boardroom. Th e upstairs now has several offi ces. Enbridge has taken up
some of them for their Bakken pipeline expansion project.
“Th e Bakken opened my eyes. We should get into Saskatchewan. Th e busi-
est oilpatch is in Saskatchewan, I thought. Go home, start up a business. Trent
agreed to move back to Redvers and manage a shop for me here,” Marc said.
Trent liked the idea of raising his kids in a smaller town.
Th eir roots run so deep, in fact, that Marc was mayor of Storthoaks for
three years before moving to Alberta.
“We moved our rentals here as well. It doesn’t do much in Alberta now. It’s
a Saskatchewan company,” Marc said.
Th e hot shot service has two trucks, a two-ton with a 40-foot fl atdeck
trailer, and a semi with a 53-foot fl atdeck.
Th e rentals operation includes a payloader, a
58-foot Genie lift, one generator and shale bins.
Th ey also have an eight-ton picker truck.
Th rough the rentals division they will do lease
cleanups with a truck and payloader, cleaning up
after a service rig.
Seeking to build drilling rig componentsTh e main shop is a fabrication outfi t, doing
work for oilpatch and agricultural clients.
“We build pump houses, catwalks for slant rigs,
mud tanks, skids – pretty much everything,” Trent said.
Th e company is also working on building drilling rigs. Not the derrick and
substructure, but everything else around it.
“In Calgary we’re building a mud tank for CanElson,” Marc stated. “We’re
working with one company about building a rig right now. We’ll build the big-
ger parts in Calgary and smaller parts in Redvers. We’ll also assemble it in the
(Redvers) yard.
“We’ll build the rig, you buy the components. We take on the manufactur-
ing of the buildings and we’ll do the electrical. We’ve got the potential to build
rigs between our Calgary and Redvers shops, and the yard space to set them up.
“Substructures and derricks, we don’t do. I’ll build everything around it –
pumphouse, doghouse, pipe racks. Th e drilling company can source the sub and
derrick from a third party.”
“We’re certifi ed to do ASME B31.3 high pressure piping,” Trent noted.
Painting would be done in Calgary, Marc said, adding, “Th is corner needs a
paint shop.”
“In Calgary we’re doing a project for Mexico – an underbalance drilling
system separation package.” Page B12
B12 PIPELINE NEWS December 2012
Page B11A new product they are working on is “safety
mats.” Th ey are mats meant to be placed in front
of shacks. But instead of solid wood, they use fi bre
grate, a composite, lightweight grating that allows
boots to be scraped. Th ey are built to suspend the
grating six inches above the ground, allowing mud
and snow to pass through.
“Th ey’re light and easy to move around,” he
said. “Safety is No. 1.”
Texas gates are yet another product.
HardbandingHardbanding is the application of a wear sur-
face to the outer diameter of the drill pipe, heavy
weights and monel collars.
“It’s new in this area. We’re the only ones in
this area that can do the non-mag,” Trent said.
“You don’t have to ship it to Alberta to be done.
Th at’s a big savings to the directional company.”
Magna Fab has two hardbanding units. One is
shop-based, the other is a-trailer based mobile unit.
Th e shop-based version has a hydraulically
controlled pipe handler that moves and positions
the pipe. A large device similar to a lathe rotates
the pipe while the welding head applies the hard-
banding. A computer keeps detailed records of the
application of the hardbanding.
Trent noticed that when drilling in the Estevan
and Torquay areas, directional equipment usually
needs its hardbanding redone about every three
holes. “Th is Bakken is really hard and abrasive,” he
noted.
Agriculture very important“We do a lot for farmers. Panels for windbreaks
are made out of 2-7/8 inch pipe, used tubing,”
Marc said. A perfect example of their agricultural
work is some cattle handling equipment under
construction in the same shop as the hardbanding
equipment.
Th ose windbreaks are in high demand, he said,
pointing to a list of customers on the boardroom
whiteboard.
“We’re very proud of the farming community
here. When we fi rst started, if it wasn’t for the
farmers, we would have had a tougher start-up
year. It’s been unbelievable, the response from the
farmers. I want to thank the farmers and ranchers,”
Marc said.
With so much invested in newer, expensive
equipment, farmers want repairs to look profes-
sional so that the equipment looks good when it
comes time to trade it in, according to Trent.
“We no sooner had a welding machine here
than we had farmers at the door,” Marc said.
“Farmers have so much land now, they don’t have
time to do repairs themselves.
“If you break it, bring it in right away, and get a
good job right off the bat.”
As they became more established, oilpatch
companies and drilling companies are getting to
know them.
“My theory is it takes three years to become
successful, to get known and trusted,” Marc said.
Staffi ngTh e company has 14 employees in Redvers, and
another 25 in Calgary.
Marc’s wife Suzanne did a lot of the contract
and paper work in the early days of the company,
and then stepped back so they could “have a family
life.” She’s worked for Th ermon Heat Tracing for
12 years, and does accounts receivables.
Th ey haven’t had issues in fi nding staff , Trent
said, with lots of friends in the area.
Housing, however, has been an issue. “We
bought a combination shack to house our out of
province welders and the hot shot driver,” he added.
Future expansionMagna Fab is already eyeing an expansion in
the near future.
“We’d like to add, hopefully this summer, a 120
foot by 60 foot expansion with three drive-through
bays,” Marc said.
Th e doors would be 16x16 feet.
Th ey would include two 20-ton cranes.
Farmers were chomping at the bit for welding
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By Josh SchaeferPipeline News
Saskatoon – 3twenty
Solutions are an in-
novators in the design
and manufacturing of
modular structures for
the oilpatch.
Started in Janu-
ary of 2011, 3twenty
has been taking steel
shipping containers
and converting them
into offi ces, sleeping
units, wash cars and
other buildings that are
needed on a job site.
“Th e steel con-
tainer gives us our
structure,” explained
Bryan McCrea, CEO
of 3twenty. “From
there, we are basically
building houses inside
of them.”
3twenty uses stan-
dard manufacturing
processes when placing
the framing, plumbing
and electrical into the
units. “It’s like taking a
residential home, and
putting it inside of a
320 square foot con-
tainer module.
“We’ve done quite
a bit of work in the Fort
McMurray and Estevan
areas,” McCrea said.
Th e three main products
that they have sent to
these areas have been
sleeper, offi ce and wash
car units.
Th e sleeper units fo-
cus on stylish but practi-
cal private living quar-
ters and are built for
the purpose of attract-
ing and maintaining
a workforce. Th e units
feature private bath-
rooms, independently
controlled air condition-
ing and a private dinette
including a fridge and
microwave.
Offi ce units can
be manufactured and
custom designed to
fi t specifi c needs, and
self-contained wash car
systems provide func-
tional wash facilities for
crews in the fi eld.
“What has been
more popular is our new
rental division,” McCrea
explained. “In the last
three months, 3twenty
has done a lot more
work in the oilpatch and
oilsands area with offi ce
and wash car rentals.
“It seems like that
market really loves to
rent instead of buy, so
we’ve been renting a ton
of units.”
Page B14
New rental division more convenientCory Chambers works on the framing inside one of the steel containers being manufactured at 3twenty Solu ons. The spray foam used for insula on can also be seen in the purple colour in the framing. Photo by Josh Schaefer
B14 PIPELINE NEWS December 2012
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Page B13McCrea explained
that the modular units
that he sells, and now
rents, are right on par
with market price. What
sets his company apart
from other stick frame
modular manufacturers
is the quality and dura-
bility of his product.
“We are delivering
far more value from
a product that is built
from steel, not wood,”
McCrea said, “and dura-
bility is a huge require-
ment on these rigs and
isolated projects.”
3twenty also ensures
that the parts and com-
ponents that are used
to build the units are
quality materials. “Th e
end user does not want
cheap, fl imsy doors,
they want good quality,
industrial commercial
steel doors.”
All of the compo-
nents for the modular
units are manufactured
in a plant just outside of
Saskatoon.
Another advantage
over stick frame manu-
facturers is that each
unit is being insulated
with closed cell two
pound spray foam.
“What that provides
us with is a continuous
moisture barrier along
the steel, so you won’t
have the same suscep-
tible mould that is going
to grow in the stick
frame and fi breglass
insulation buildings.”
Th e spray foam also
provides 3twenty with
a more effi cient struc-
ture so that heat in the
winter and cold air in
the summer does not
escape.
Another huge sell-
ing point that McCrea
points out is the ability
to stack the product
without any additional
infrastructure. “It’s a
huge selling point for us,
especially in areas where
they do not have a lot of
space on their job site.”
In essence, the units
are shipping containers
and as such are meant
to move. “You can move
them, you can drag
them with a skid steer,”
McCrea explained. “You
can put it on a semi
truck, you can crane it,
you can pick it, you can
train it, you can barge it,
these things are meant
to move which makes it
easy to handle on site.”
So far in 2012,
McCrea estimates that
the oilpatch and oil
sands market makes up
roughly 30 per-cent of
his business.
“It was tough for us
to compete, especially
in the oilsands market,
since this is an industry
that picks up the phone
and needs a wash car by
yesterday, not in a week
or a couple of weeks.
“If you don’t stock
it, you can’t compete, so
starting the rental divi-
sion was huge for us.”
McCrea continues
to see the oil and gas
portion of his business
rising and expects it to
become a larger part of
his business over time.
“We’ve grown
out company truly in
Saskatchewan and in a
very bootstrapping type
of story, we’re moving
out West and East,”
McCrea said, “I can’t
exactly say where it’s go-
ing to go, but it’s going
to grow.”
A general view of the framing and spray foam insula on inside of one of the steel containers being ed as a wash car. Photo by Josh Schaefer
Durability a key factor
PIPELINE NEWS December 2012 B15
Lyle Leclair - Cell: 306-421-7060
With thanks from our entire staff
for your most generous support.
Happy Holiday!
Spread Cheer All Around!
LECLAIR TRANSPORTGeneral Oilfi eld
Hauling
Aldergrove, B.C. – A British Columbia-based
modular building company is seeking to expand its
off erings into Saskatchewan.
Shelter Industries Inc. has factories in Alder-
grove and Dawson Creek, British Columbia.
“We’ve been manufacturing lot of products for
Alberta,” said Mark Penaluna, sales and marketing
manager.
He described Shelter Industries as a modular
manufacturer catering to the oil and gas business.
Th ey can build camps as large as 500 to 800 beds.
Th ey can build off their standard plans or custom-
ize the product.
“We’re focusing on getting into the Saskatch-
ewan market,” he said.
Th e company was formed three years ago
from a merger of Greensmart Manufacturing
and Shelter Industries. In addition to pre-built
modular units for permanent or temporary needs,
one of their key products is the use of structurally
insulated panels with have two pieces of oriented
strand board sandwiched between insulation.
A typical modular unit is up to 14 feet wide
and can be up to 64 feet long. According to their
website, “Pre-built modular units can be used, like
building blocks, to create expansive permanent
buildings, such as a multi-level residential build-
ing, a school with a full-sized gymnasium, or even
a remote community complex. Th ey can also be
used for more temporary applications, such as site
offi ces, school portables, and workforce housing.
Built indoors to stringent standards, pre-built
modular units are typically higher in quality than
most site-built structures. Th e primary advantage
of pre-built modular units is speed and fl exibility.”
Standard off erings include 12 x 60 foot skid-
ded units.
Twenty-man “super executive dorms” have
queen-sized beds and individual bathrooms, in-
cluding their own showers. Th ey also have lots of
storage and desk space, Penaluna said.
Th at’s a change from the Jack-and-Jill style
of shared washrooms that are prevalent in the
industry.
In Saskatchewan they are targeting oil and
gas, but Penaluna noted they are looking at any
industry needed housing. Southeast Saskatchewan,
in particular, is in their crosshairs.In British Columbia the company has done
extensive work with kindergarten classrooms.
Modular builder targets Sask.
PIPELINE NEWS December 2012 B17B16 PIPELINE NEWS December 2012
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By Josh SchaeferFor Pipeline News
Saskatoon – Saskatoon Boiler has been
sending boilers to the oil and gas industry for
the last 60 years and it has been a steady indus-
try for them during that time.
Ray Graves, president of Saskatoon Boiler
Manufacturing Co. Ltd., said his company
manufactures several diff erent boilers for the
oil industry and that each one is designed for
the particular job the customer requires it to
do.
“We build boilers for oil drilling rigs, oil
service rigs, steaming rigs, and for general
steaming cleanup units,” Graves said. Th ey also
manufacture boilers for slop oil plants, and for
frac water heating.
“We build a special boiler for each one of
those applications and that’s what sets Saska-
toon boiler apart,” said Graves.
“Most companies have one style of boiler
and it’s supposed to fi t all applications, in our
case, our boilers fi t the particular application
very well because that is what they are designed
to do.”
Saskatoon Boiler’s units are widely con-
sidered to be some of the most reliable on the
market and as Grave’s explained, “Down time
on oil drilling rigs
is disastrous, so our
customers are prepared
to spend more to get a
boiler that will oper-
ate from fall to spring
without any mainte-
nance requirements and
not shut them down.
“We work very
diligently to continually
improve the product,”
noting that 90 per cent
of the boilers they are
currently selling go to
repeat customers.
Graves also spoke about his relationship
with customers. “We are very close to our cus-
tomers, they are not shy at telling us what they
want.”
Th e diff erence between Saskatoon Boiler
and another larger manufacturer, he said, is that
“Because we are a small independent company,
we can respond to these diff erent warrants.”
All of the boilers that Saskatoon Boiler pro-
duces are designed and manufactured in house.
“It’s an extremely complicated and convo-
luted business,” Graves explained. Th e boilers
are governed by a series of codes and regulations
that must be followed.
All of the boilers have to be designed in ac-
cordance with American Society of Mechanical
Engineers, the Canadian Standards Association
and the individual boilers act for each province
in Canada.
Going above and beyond these codes,
Graves showed Pipeline News shelving units full
of their own internal codes and practices that
they follow to go above and beyond the basic
requirements.
“While these codes are very cumbersome
and expensive to comply with and institute,”
Graves explained, “the justifi cation for it is that
we are building a safer product.”
Th e boilers have to be designed and engi-
neered for the province or state they are being
manufactured for to meet all of the regulations.
Th e design must then be registered with the
province or government authority before manu-
facturing begins.
In the case of all oil fi eld boilers manu-
factured by Saskatoon Boiler, they are also
registered with Underwriter’s Laboratories of
Canada, which gives them an approval label for
the units that covers the whole boiler.
Th e ULC label covers the oil burner, the
boiler, all of the controls and how the compo-
nents are married together. “When a customer
buys one of our boilers and see’s the ULC label
on it, there’s a lot of assurance.
“Th is is one of the reasons we can send our
boilers into the United States and to off -shore
companies. Th ese approvals are recognized and
not all boilers have these approvals, but ours do,”
Graves explained.
“We are building the best boiler we know
how to build.”
Saskatoon Boiler has sent oil fi eld boilers
across Canada, the United States and Siberia.
“We know how to outfi t these boilers for cold
weather operation,” Graves said.
During a plant tour, Graves explained that
the boilers they build assist in the production of
oil from the time it is taken out of the ground
until it is refi ned in a gas processing plant and
put into the pipeline.
Graves also explained that steam around
drilling rigs is a safe source of heat. “You don’t
have problems with something burning like an
open fl ame or hot water heater. It is very safe,
and very eff ective.”
Th e units are also becoming more energy
effi cient. “We have to pay attention to effi ciency,
especially as fuel prices increase. Th at’s prompt-
ed the move to fi ring the boilers on natural gas
and diesel.
“It saves a lot of money. Even if we can save
a gallon of fuel an hour,
over the course of a
week, that cost savings
can add up.”
Boilers are con-
sistently coming in to
their shop in Saskatoon
to have a conversion
performed from fi ring
on just oil, to fi ring on
oil and natural gas.
Service is an aspect
of the business that
Graves likes to focus on
as well. “We don’t send
boilers into an area that we can’t service them.”
Saskatoon Boiler has two service trucks with
a third one currently being built. Th e current
fi eld service crew consists of a dedicated staff ,
the most junior of whom has been with the
company for 14 years.
“We have service people going out to service
the boilers that they built in this factory, and the
customer likes the idea of the factory servicing
the boiler that built it 40 years ago,” said Graves.
“We are fortunate that boilers are used for a
variety of applications.”
Saskatoon Boiler celebrates its 100th an-
niversary in 2014.
Great customer service brings customers backGreat customer service brings customers backRay Graves, president of Saskatoon Boiler poses for a photo next to one of the boilers that his company manufactured.
Tracy Thibodeau works on a larger boiler that is expected to go to an oil processing plant in Weyburn.
Domingo Meningas wires an electrical motor on one of the boilers.
This 125HP boiler, which produces 4.1M BTU/hr of high pressure steam had just nished produc on and was being prepared for ship-ment.
B18 PIPELINE NEWS December 2012
CLIFF NANKIVELLTRUCKING LTD.
Kalvin NankivellPresident
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SPECIALIZING IN:
The Safety Association for Candada’s
Upstream Oil and Gas Industry
Greg Cutler - 577-1950Ralph French - 577-8553
Now Open
Calgary – Can Telematics, a Calgary-based
global GPS asset management company, is on a
growth roll with strong sales of its industry leading
web-based software called Trakopolis.
Customers such as oil and gas, mining and
transportation businesses can log onto Trakopolis
to track their assets anytime and anywhere in the
world in real time using a web browser.
Sales of Trakopolis put the company ninth on
Alberta Venture magazine’s list of 50 fast growth
companies with revenue growth of 379 per cent in
2011 with a similar forecast for 2012.
“It’s going very well. We are expecting to triple
in size again this year. Th ere is a lot of competition
out there out, but for us, it’s having an easy to use
system,” said Ted Duffi eld, sales director.
Th e company ended 2011 with revenues of over
$1.1 million compared to $230,382 in 2010 and
just $38,207 in 2009, the year Trakopolis became a
sellable product.
“A lot of that growth is our relationship with
Google and some attention to detail on the soft-
ware development side,” said Duffi eld.
“We can put all of your equipment, not just
your vehicles, on one platform that is easy to use
and gives our clients the information they need to
succeed.”
Trakopolis interfaces mobile communications,
software applications and GPS systems including
Google maps into a secure online system.
Brent Moore, Can Telematics’ CEO, describes
how it works in an online product video.
“We can attach an intelligent hardware device
to any asset, and the device continually conveys its
location to our secure servers, using cellular or satel-
lite communications,” said Moore.
“A business can log onto Trakopolis from any
Internet connection, and they can see their assets
anywhere, worldwide.”
Can Telematics integrates the latest Google
maps into Trakopolis to off er customers the best
possible view of their assets from a browser.
“We are a Google Enterprise partner. We have
an agreement to be a reseller for their map engine
which means oil and gas companies can use their
GIS mapping,” said Duffi eld.
“Th ey can pull points of interest into Trakopolis
and see their assets in real time.”
Safety, effi ciency, better control and visibility of
assets are the overall benefi ts for the end user using
cellular, satellite or a combination of both to locate
and track asset data.
Trakopolis includes mobile fl eet manage-
ment, active maps, real-time tracking, geo-fencing,
customizable reports, alerts, exceptions and e-mail
messaging, to suit client needs.
“We work on the notion that we can track any-
thing, anytime and anywhere,” said Duffi eld.
“Companies use the product for a number of
reasons – fuel tax savings, effi ciency, safety for lone
workers and asset utilization purposes.
“Any asset they want to have information about
that can work from a location base, we can provide
for them through Trakopolis,” added Duffi eld.
“You can get anything from a simple location
– from knowing where your equipment is to things
like engine and equipment diagnostics and when it
needs to be serviced.”
Th e analytics feature can even tell the user if
a driver is wearing a seat belt, how fast they are
travelling, and whether they have entered or exited
a yard – all in real time.
Can Telematics has also developed specialize
tracking software called CanHaul for the ship-
ping and transportation sector and a marketing
tool called MobileMatch that enables a truck to let
shippers know when it is available for work.
Duffi eld said Trakopolis makes up 95 per cent
of Can Telematics’ business with sales in 14 coun-
tries to oil and gas, mining, transportation busi-
nesses and municipalities using the technology.
“We have some law enforcement customers
and it can be used for incident recreation,” added
Duffi eld.
“Th e applications are endless. Trakopolis is built
with an open API, meaning that it makes it easy for
us to tie into other software systems that a company
might be using.
“We can really look at a company’s entire sup-
ply chain management and asset inventory control.
We can tie into a number of diff erent challenges
that they may face as a company.
Page B19
Stellar sales of Trakopolis asset tracker
PIPELINE NEWS December 2012 B19
www.crescentpointenergy.com
We’re proud to be a part of your community.
Supplying propane & propane equipment to the southeast area
• Rental equipment for oilfi eld and construction• Gensets • Heaters & More
Phone: 1-306-842-1344 Toll Free: 1-855-345-9025 Fax: 1-306-842-1434Weyburn, SK
joyous noel!
Page B18“Our focus has
been moving into
other areas outside
of oil and gas as well
as staying true to our
roots. For us, we’re
focused on sustainable
growth,” Duff said.
Can Telemat-
ics also sells a variety
of vendor hardware
devices for cellular or
satellite service.
The company,
incorporated in 2007,
is Canadian owned
by a group of private
investors and currently
employs more than 40
employees.
Can Telemat-
ics’ partnership with
Google along with
a commitment to
continuous product
development has
positioned Trakopolis
as the system of choice
for many oil and gas
companies and other
customers.
“We work very
closely with Google
on our development
– things like overlays
and their map engines
and tying into GIS
mapping systems used
by oil and gas compa-
nies,” said Duffield.
Duffield also at-
tributes the the rapid
growth and success
of Can Telematics to
a flexible company
service model with no
locked in contracts for
Trakopolis customers.
“Because they
are not locked into a
long-term contract,
what we do on a day-
to-day basis for them
is ensure they are us-
ing the system to get a
return on investment,”
he said.
“What’s made us
successful is our focus
on understanding spe-
cific customer require-
ments and delivering
fantastic service.
“As soon as the
customer signs on
with us – working
through the imple-
mentation, the train-
ing and through the
rollout of that year –
we work with specific
people within their
organization that need
to be trained on the
functionality to make
sure they are getting
that proper return on
investment.”
Trakopolis so ware devel-oped by Can Telema cs enables businesses to track xed or mobile assets any-
where and any me in the world with a web browser. The company is a Google Enterprise partner.
Photo submi ed
B20 PIPELINE NEWS December 2012
805 Government Road SWeyburn, SK
306•842•0307
Centrifuges
Shale Shakers
Shaker Screens
Drilling Fluids
(Daily Oil Bulletin)
Operators across Can-
ada rig released 8,163
wells during the fi rst
three quarters of 2012,
off 11 per cent from
9,178 wells drilled in
the January to Septem-
ber period last year, with
drilling levels setting
records in Manitoba.
Th at province is the
only one in the West
to see a year-over-year
increase in its rig release
tally to the end of
September. Operators
have drilled 463 wells in
Manitoba at the three-
quarter mark, up 34.59
per cent from 344 rig
releases in the com-
parable period a year
ago. Th ere was a bigger
percentage increase in
total meterage, however,
which climbed about
38 per cent to 861,164
metres from 622,769
metres a year ago.
To the end of Sep-
tember, the biggest per-
centage decline in year-
over-year drilling has
been recorded by British
Columbia, where 347
wells were rig released
compared to 474 a year
ago (off 26.79 per cent).
Operators have also
drilled fewer metres in
the gas-prone province:
1.33 million metres this
year compared to 1.68
million metres at the
three-quarter mark of
2011.
Across Canada,
of those wells with a
reporting status, only
12 per cent of the rig
released wells have gas
as an objective. Close
to 79 per cent of wells
with a status are listed
as oil or bitumen wells
— up from 68.62 per
cent last year — and the
highest percentage ever
recorded.
In Alberta, 3,682 of
the wells drilled to the
three-quarter mark of
the year had oil or bitu-
men as an objective —
down from 3,744 to the
end of September 2011.
Wells targeting natural
gas or CBM declined to
813 from 1,507 at the
three-quarter mark last
year.
Th e same pattern
held true in Saskatch-
ewan, where 2,218 wells
were rig released in the
January to September
period with oil as an
objective (compared
to 2,350 last year), and
only nine gas wells were
drilled, down from 32 a
year ago.
Th e total number
of wells rig released in
Alberta declined 13.56
per cent to 5,022 wells
versus 5,810 after last
year’s fi rst nine months.
Total metres drilled de-
clined slightly to 10.36
million metres from
10.37 million metres a
year ago.
Operators in Sas-
katchewan drilled 2,314
wells in the January to
September period of
2012, off eight per cent
from 2,514 wells rig re-
leased a year ago, while
meterage has decreased
to 3.7 million metres
from 3.85 million me-
tres in 2011.
In comparing
Alberta and Saskatch-
ewan rig releases, the
former’s overall count
for the nine-month
period included 163
outpost wells and a total
of 453 exploratory wells.
In Saskatchewan, 329
exploratory wells were
rig released, including
242 outpost wells.
In the third quarter,
only two PSAC zones
recorded year-over-year
increases in rig releases.
Northeastern Alberta
saw 405 wells drilled
compared to 301 a year
ago, while Manitoba
recorded 220 rig releases
versus 146 a year ago.
East Central Alberta
was the busiest PSAC
zone, with 540 wells
drilled in the July to
September period.
In September, oper-
ators rig released 1,150
wells across Canada
compared to 1,374 in
the year-prior period
(off 16 per cent), as all
four western provinces
recorded decreases in
drilling.
Only nine gas wells drilled
Drilling and Service ActivityOnline or on Your GPS
Check the latest status of any rig in western Canada, hunt down leads for service or supply sales and know what your competitors are up to with the Rig Locator.
Subscribe today at riglocator.ca or call 1.800.387.2446
RIGLOCATOR.CA
Nistor’s Shell Cardlock bulk plant has moved to the
corner of 2nd avenue & 6th Street in Estevan. 1 block north of Tim Hortons.
New location - same great service
Rotella T 15W40
Stop in today to see General Manager, Bob Coleman
for all of your Shell lubricant product needs(306) 634-2544 Estevan
PIPELINE NEWS December 2012 B21
Happy Holidays
WINTER
Jayson King 306.736.9169Stoughton, SK
www.jkcontainments.com
(Daily Oil Bulletin) Calgary – Oil and liquids-
rich natural gas will be the focus of ARC Resources
Ltd.’s record $830 million capital budget for 2013,
including development and infrastructure spend-
ing that will set the stage for signifi cant production
growth in 2014, said the company.
ARC’s board of directors also has announced
that Myron Stadnyk, currently president and chief
operating offi cer, will replace John Dielwart, chief
executive offi cer, who is to retire Jan. 1, 2013. Stad-
nyk, who has been COO since 2005, will become
president, CEO and a director at Jan. 1, 2013.
Dielwart, who will remain on the board of direc-
tors, will stay on as an adviser through to the annual
general meeting in May to assist his successor with
the transition.
Spending, which will be up 38 per cent from
this year’s $600 million capital program, will
be directed at opportunities at Tower in British
Columbia, Ante Creek and Pembina in Alberta,
Goodlands in Manitoba and various oil properties
in southeast Saskatchewan.
A total of $751 million, 91 per cent of the
budget, will be spent on oil and liquids drilling and
infrastructure.
Plans call for the drilling of 178 (160 net)
operated wells with 153 wells targeting oil, 16 wells
focused on liquids-rich natural gas and nine wells
targeting dry gas.
On its non-operated properties, ARC antici-
pates that 103 (10 net) non-operated wells will be
drilled by partners with its share of expenditures
approximately $56 million, dominated by oil drill-
ing activity in the Pembina and House Mountain
areas of Alberta and at the Weyburn property in
Saskatchewan.
Of the total budget, $563 million has been
allocated for development, $162 million for facili-
ties, $35 million for maintenance, $27 million for
enhanced oil recovery and $13 for optimization.
Spending for exploration and seismic will account
for $11 million, down from an estimated $52 mil-
lion this year.
Consistent with guidance following the $160
million reduction in its 2012 capital program an-
nounced earlier this year, ARC expects modest
annual average production growth of three per cent
year-over-year to approximately 95,000 boepd in
2013 (60 per cent natural gas) with a fi ve per cent
growth in oil and liquids production.
Th e growth will accelerate throughout the year
with 2013 exit volumes targeted at 100,000 boepd.
ARC expects 2014 annual average production to
be in excess of 110,000 boepd, representing greater
than 15 per cent production growth relative to
2013.
ARC plans to spend $73 million in southeast
Saskatchewan and Manitoba to drill 51 gross oper-
ated oil wells. Th e areas will include Goodlands,
Oungre, Lougheed, Skinner Lake, Browning, North
Weyburn, Queensdale and Parkman. Full-year aver-
age oil production is expected to grow by approxi-
mately eight per cent to 12,500 boe per day in 2013.
A considerable portion of the activity in this
area will occur at Goodlands, where ARC plans to
drill 22 horizontal oil wells with production increas-
ing 20 per cent over this year to an average of 2,700
boepd.
ARC sets $830 million capital budget for 2013
B22 PIPELINE NEWS December 2012
Regina – Except for snow on the ground in
some parts of Saskatchewan, the province couldn’t
have asked for a better start to November with the
release of three positive economic reports.
Th e good tidings began with news from Sta-
tistics Canada that Saskatchewan is coming off
another record month in October for labour force
numbers, employment and full-time employment.
Employment for October 2012 was 541,600,
the highest on record for the month with 12,500
more jobs than last October for the 11th month of
year-over-year increases.
“Saskatchewan has been fortunate to have
undergone signifi cant growth on both an economic
and employment front,” said Economy Minister
Bill Boyd.
“It has improved the job opportunities available
for people in our province, and makes us an attrac-
tive destination for those who are looking for new
employment options from beyond our borders.”
Th e seasonally adjusted unemployment rate
in Saskatchewan was 4.7 per cent in October, the
second lowest in Canada, and below the national
unemployment rate of 7.4 per cent.
Full-time employment hit a record of 452,800
for October, an increase of 16,100 from a year ago.
Th e next batch of good news also delivered at
the start of the month by Statistics Canada, trum-
peted a 79.1 per cent increase in September resi-
dential building permits compared to a year earlier.
Overall, building permits in the province
improved by 39 per cent, the third highest increase
among the provinces.
“Saskatchewan’s construction industry is ex-
tremely active right now,” said Boyd.
“On the residential front that demand is a com-
bination of our increasing population and a strong
economy that’s contributing to an increase of new
homes.” Page B23
Three thumbs-up for provincial economy
PIPELINE NEWS December 2012 B23
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Page B22 Regina’s building permits
jumped a whopping 225 per cent on a year-over-year
basis, the highest increase among major Canadian
cities. Saskatoon was also up by 19.1 per cent.
“Th e level of construction has a huge impact on
our overall economic progress,” Boyd said.
Boyd noted that report is defi nitely a good indi-
cator that the economy is moving forward, creating
jobs and business opportunities in every corner of the
province.
Th e third batch of positive news delivered in
November is all about the 1,014,363 visits to the
province’s Sask.ca website by jobseekers in Octo-
ber. Th at number is up by 29.53 per cent from last
October.
“Saskjobs.ca is helping Saskatchewan employ-
ers fi ll much-needed positions in 309 communities
across the province,” said Boyd.
“Employers are looking for workers in a wide
range of occupations to fi ll mostly full-time posi-
tions.”
Th ere were 16,331 jobs posted in October 2012,
a 12.28 per cent increase from October 2011. Mobile
device visits went from 54,273 in October 2011 to
213,122 in October 2012.
On a monthly basis, postings increased by 6.58
per cent between September 2012 and October
2012. Visits to the website from Quebec job-seekers
increased by 53.28 per cent over this same period.
Th e increase in Quebec can be attributed to an
employer-led recruitment mission to promote the
province at the Montreal Job Fair.
“Our economy is one of the best in Canada right
now,” Boyd said.
“It allows us to attract workers from other prov-
inces and beyond who are looking for new opportu-
nities and are choosing Saskatchewan as a destina-
tion of choice.”
Saskatchewan residen al building permits in Septem-ber were up 79.1 per cent compared to September 2011 as the economy con nues to grow and a ract new workers. The latest numbers were released by Sta s cs Canada at the beginning of November.
File photo
B24 PIPELINE NEWS December 2012
Calgary – Petrobank
Energy and Resources
Ltd. and its 57 per
cent owned subsidiary
PetroBakken Energy
Ltd. are being reorga-
nized into two indepen-
dent companies to take
eff ect Dec. 31, 2012.
“Th e reorganiza-
tion is consistent with
our long-held corporate
goal of enhancing share-
holder value by creating
strong, focused indepen-
dent companies,” said a
company spokesperson
on Oct. 29
A new Alberta
corporation, New
Petrobank, will be
formed to acquire exist-
ing assets and liabilities
of Petrobank including
heavy oil assets as well
as toe to heal air injec-
tion or THAI technol-
ogy.
New Petrobank will
not acquire Petrobank’s
ownership interest in
PetroBakken shares.
Existing sharehold-
ers of Petrobank will
receive one share of
New Petrobank for each
Petrobank share held.
Th e 2013 business
plan for New Petrobank
will focus on pursuing
the commercializing of
its THAI project near
Kerrobert.
“We expect New
Petrobank to enter 2013
with extensive fi nancial
resources, a focused
portfolio of heavy oil
assets and a multi-year
business plan to capture
the signifi cant value
potential of the THAI
technologies and drive
long-term shareholder
value,” said the company
in a release.
New Petrobank also
plans to commence cold
production at Dawson
(Peace River area) in
2013 to condition the
reservoir for a THAI
demonstration project.
Planning will also
continue in 2013 for
as many as three new
THAI projects on
existing lands along the
Kerrobert trend while
exploiting cold produc-
tion opportunities on
existing lands.
New Petrobank
plans to add more
prospective resources to
their land inventory and
enhance their intellec-
tual property portfolio.
During 2012, the
company purchased
additional lands on the
Kerrobert channel trend
and currently owns ap-
proximately 25 sections
of land in Saskatch-
ewan.
Th ey will also strive
to pursue future tech-
nology licensing oppor-
tunities through Archon
(which owns THAI
technology).
Production from
the Kerrobert project
averaged 305 barrels per
day of upgraded THAI
oil per day in the third
quarter of 2012, an in-
crease from 236 barrels
per day in the previous
quarter.
Page B25
Petrobank, PetroBakken shuf e deck
The Kerrobert THAI heavy oil project site includes this three stage treater with oil and water storage tanks in the background. File photo
PIPELINE NEWS December 2012 B25
738 5th Street (back door) Phone: 634-3522
24 Hour Service - 7 Days A Week!
• Two Way Radios• Alarm Monitoring
• Safety Checks
"We Dispatch for the Oil Patch"
Level Best Technologies Ltd.
Dave: 306-461-4322Pat: 306-861-9986Andrew: 306-461-4323
• Fluid Levels• Dynamometers• Build-Ups • Fall-Offs• Foam Depressions• Casing Compressors
Page B24“We have focused on increasing air injection
and continue to target much higher injection and
production rates in the near future,” said the com-
pany in its third quarter report.
“At Dawson (Peace River area), we have com-
menced cold oil production at the fi rst of the two
horizontal THAI production wells.
“We expect to initiate cold production at the
second well before the end of 2012.
“Th ese wells are expected to produce for a
period of time to pre-condition the reservoir for
start-up of the THAI demonstration project.”
Petrobank has reactivated eight wells in the
Kerrobert trend lands for cold production. All of
these wells are in the early stages of clean-up and
production.
“We expect to drill four stratigraphic wells in
Q4 2012 to better defi ne our resources in the Luse-
land area,” said the report.
“We expect to complete these four wells for
cold production in 2013 as part of our plan to
opportunistically exploit the primary production
potential of our assets.”
In other news, PetroBakken’s third quarter
results released on Nov. 12, noted that production
averaged 38,503 barrels of oil equivalent per day.
Production in the quarter was relatively fl at
compared to the third quarter of 2011, due primar-
ily to the disposition of producing assets in the fi rst
half of 2012 and a delayed start to the second half
2012 capital program.
PetroBakken’s nine month production averaged
41,303 boepd, a seven per cent increase over the
same period in 2011.
Capital expenditures before dispositions totaled
$292.7 million in the third quarter with PetroBak-
ken drilling 82 net wells.
COMPRESSION CONSULTING LTD.
www.annugas.comToll Free 1.866.ANNUGAS
with Warm Wishes
And many thanks to our friendsand neighbors
at Christmas.
Greetings of the Season
Bison Transport has signed an agreement
with Shell Canada Products to run 15 LNG tractors
in Alberta.
Bison's fi ve-year fuels supply agreement marks
the fi rst step in launching Shell's LNG refuelling
infrastructure in the province.
Th is agreement is the fi rst of its kind in Canada,
the companies said, as Bison will obtain LNG from
Shell Flying J publicly accessible LNG fuelling
facilities in Calgary, Edmonton and Red Deer, which
are expected to open in early 2013. It also highlights
LNG's potential as a transport fuel option. Under
specifi c conditions, the use of LNG in heavy duty
applications has the potential to deliver a 20 per cent
reduction in greenhouse gas emissions.
“We are very pleased to be working with Shell
on this leading-edge initiative that stands to trans-
form the commercial freight and fuel industries in
North America,” said Trevor Fridfi nnson, Bison's
vice-president of western operations. “Proving that
this alternative fuel source can be economically and
practically viable is our objective, aligning perfectly
with our company values.”
Shell believes its LNG refuelling infrastructure
will support an increasing number of commer-
cial fl eets with LNG fuel options. Th e company is
constructing a natural gas liquefaction plant at its
Jumping Pound facility, west of Calgary, to supply
this growing market.
“LNG can be a cost-eff ective fuel from an
abundant resource of natural gas and we believe it
can help our customers build competitive advantage,”
said Lorraine Mitchelmore, Shell Canada Limited
Country Chair. “Th e opportunity to work with one
of Canada's leading fl eets marks an exciting mile-
stone for Shell.”
Bison will start receiving new Peterbilt tractors
featuring the innovative Westport HD natural gas
engines in November and the entire LNG heavy
duty fl eet will be operational by January 2013.
Bison Transport's truck eet
B26 PIPELINE NEWS December 2012
#1 Hwy 18, Oxbow, Sask.306-483-5132
www.ensignenergy.com
MERRYCHRISTMAS
We’re really grateful to have friends and neighbors like you!
46 – 13th Street NE • Weyburn, SK • S4H 1K8Phone: 306-842-5490 • Fax: 306-848-0275
Toll-free: 888-346-8260
www.hseintegrated.com
If You’re Serious About Safety
Occupational Health & SafetyAudiometric & Respiratory Equipment Fit Testing
••
Standby & Emergency Medical ServicesIndustrial Hygiene
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Wireless Air Quality MonitoringPlume Dispersion Modeling
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Gas Detection EquipmentGas Leak Detection and Analysis
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Safety Project Management & ConsultingBreathing Air Equipment & ServicesOf ce/Air TrailersShower ServicesH2S Safety
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Emergency Fire ghtingCon ned Space & High Angle RescueWell Control and Blowout RecoveryHot Tap & FreezeSafety Training
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Dan O’ConnorOperations Manager
204-748-5088
Office - Kola, MB.Office - Kola, MB.204-556-2464204-556-2464
Daylighting, Oilfield Hauling, Steaming & Mobile Pressure Washing, Winch, Water & Vac-uum & Computerized Certified Pressure Truck Services
Saskatoon – Th e
fourth quarter of 2012
could be another pro-
ductive period for Allstar
Energy Ltd. with drilling
in progress or pending at
its Viking, Red Pheasant
and Riverside properties.
Allstar Energy, a
wholly-owned subsidiary
of 49 North Resources
Inc. based in Saskatoon,
provided a forward look-
ing operational update at
its three exploration and
development properties
on Oct. 17.
Th e snapshot was
taken with Allstar’s
fi eld-estimated total
gross production at ap-
proximately 550 barrels
of oil equivalent per day
(net approximately 400
boepd) weighted 70 per
cent oil 30 per cent gas.
At its Kindersley Vi-
king oil property Allstar
successfully completed a
three well (net one) hori-
zontal drilling program
with two of the wells
fl ow lined and tied into
the 100 per cent owned
battery.
Th e company
reported the two wells
were on production for
approximately eight
weeks and were in line
with typical Viking
expectations.
Allstar also drilled
a step out well (delayed
development well) on
a section that had no
previous drill holes.
Th e operational
update noted the well
had not yet been tied in
but was free fl owing to a
tank. Th e initial produc-
tion data on this well
exceeded management’s
expectations for the sec-
tion.
Th e wells were
drilled into the Viking
formation using the
same monobore tech-
nology that has been
deployed on all of the
previous 17 horizontals
(net 14.7) Allstar has
drilled at Kindersley.
At Red Pheasant,
Allstar drilled two verti-
cal wells to test seismic
data acquired earlier in
the year.
Th e company noted
they would complete
a review from that
program by the end of
October.
At Riverside, Allstar
completed fi eld acquisi-
tion of a 3D seismic
program announced
in September and they
expected to wrap up fi nal
interpreted results by the
end of October.
Th e company plans
to initiate a new drill
program on the River-
side lands based on the
interpreted seismic.
In addition to the
recently shot seismic
program, Allstar has ac-
quired an additional 2.6
square kilometres of 3D
seismic that surrounds
one of the recompleted
wells.
Th e company has
identifi ed up to fi ve
development well loca-
tions from this data and
expects to begin drilling
in the current fourth
quarter.
Allstar identi es new drill locations
PIPELINE NEWS December 2012 B27
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E-mail Address: [email protected]
Oxbow, SK Dispatch: 306-483-7897 Offi ce: 306-483-2194www.absolutelocating.com
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516 Nesbitt Drive (behind Power Dodge)Estevan • 634-2631
Happy HolidaysWith our thanks for your valued patronage at this special time of year. It’s been both a privilege
and a pleasure serving you.
Winnipeg – Westeel, a Winnipeg-based manu-
facturer of steel storage products, got off to a quick
start with the marketing of its new frac tank instal-
lation system which allows most tanks to be built in
one day.
Th e fi rst order for Westeel’s proprietary Speed
Plate frac tank system went to Total Oilfi eld Rent-
als LP, a subsidiary of Calgary-based Total Energy
Services Inc. on Oct. 2, less than two weeks after
the product launch on Sept. 24.
Th e Westeel Speed Plate tanks were introduced
to the market on Oct. 15 at Total Oilfi eld Rentals’
new location in Minot, N.D., that opened in July.
“Our fi eld trials confi rm that the speed at
which the new system can be deployed will be a real
benefi t to our customer base and the rental rates
at which we can off er this system will be attractive
relative to other systems in the market,” said Russ
Strilchuk, vice-president sales and marketing for
Total.
“We see this product as a valuable complement
to our broad product off ering in the marketplace
both in the northwest United States and Western
Canada.”
Th e frac tank will be available through
Westeel’s distributor with Total having the exclu-
sive right to rent the Speed Plate frac tank system
to the oil and gas industry in Western Canada,
North Dakota and certain other states.
“Th is product provides tremendous oppor-
tunities for our business in these locations,” said
Westeel president and general manager André
Granger.
“We are excited to be able to off er this conve-
nient new system on a rental basis throughout the
oil and gas industry in the northwestern United
States and Western Canada through our distribu-
tor’s exclusive arrangement with Total Oilfi eld
Rentals.
Th e frac tank system ordered by Total incorpo-
rates “Speed Plate” technology, that enables frac site
operators to get their sites up and running in record
time, without the use of cranes for a safer installa-
tion.
“Increasing the speed of frac tank installation
has been our focus,” said Granger.
“Th is new system provides a fast, safe, cost-
eff ective solution to water management at drilling
sites.”
Th e reusable and movable frac tanks are engi-
neered with corrugated steel panels, and most sizes
can be delivered to site on a single truckload, which
includes the tank and liner. Th e new patent-pend-
ing Speed Plate uses fewer bolts per panel seam,
which enables the installation crew to build the
system quicker, while still maintaining its structural
integrity.
Total Oilfi eld Rentals off ers a full slate of
oilfi eld rental products as well as transportation ser-
vices through its network of 20 branches in western
Canada and its new U.S. branch in Minot.
Total Energy Services Inc. is a growth oriented
energy services corporation involved in contract
drilling services, rentals and transportation services
and the fabrication, sale, rental and servicing of
natural gas compression and process equipment.
Total rst to rent Speed Plate frac tanks
B28 PIPELINE NEWS December 2012
Calgary – Th e Alberta government expects to
have one energy regulator in place to cover landown-
ers, industry and the environment by June 2013.
Th e government has introduced Bill 2, the Re-
sponsible Energy Act, that creates a single provincial
regulator for upstream energy resource activities in-
volving oil, gas, oilsands and coal.
Under the proposed legislation, the new regu-
lator will be a unifi ed one-window approach that
makes it easier to navigate the system.
It will also be responsible for energy resource de-
velopments from initial application to reclamation.
“With this legislation, we are laying the foun-
dation for the next 50 years of responsible energy
development in the province,” said Energy Minister
Ken Hughes in a news release on Oct. 24.
Alberta to create new energy regulator
“Th is new system will be more eff ective and ef-
fi cient for industry and landowners and it will build
on Alberta’s long-standing commitment to the en-
vironment.
“Th e result will be a benefi t to not only Alberta’s
economy but to Canada’s economy. It will help us
maintain the social licence to operate.”
Th e proposed legislation includes higher fi nes
for individuals and companies who break the law.
It will also allow landowners to volunteer to reg-
ister for private-surface agreements, which can then
be enforced.
Th e need for a single regulator was identifi ed by
the Regulatory Enhancement Task Force two years
ago. A comprehensive oil and gas regulatory review
was carried out as well.
Th at work included numerous consultations
with industry, landowners, environmental groups
and First Nations, and an online survey inviting Al-
bertans’ feedback.
Th e government adopted all six recommenda-
tions of the task force with its Bill 2 legislation.
Under the proposed legislation, the single reg-
ulator will assume the regulatory functions of the
Energy Resources Conservation Board and Alberta
Environment and Sustainable Resource Develop-
ment, with respect to oil, gas, oilsands and coal de-
velopment.
Th e arm’s-length agency will be governed by a
board of directors, with a chief executive offi cer at
the helm. It is expected to be operational by June
2013.
“As we grow, we must continue to fi nd the right
balance between environmental management and
resource development to ensure Alberta and Canada
remain global leaders on both fronts,” said Environ-
ment and Sustainable Resource Development Min-
ister Diana McQueen.
“Th rough this regulator, we are taking a new ap-
proach to how we develop our energy resource while
maintaining our strong environmental outcomes.”
Th e legislation also gives the regulator the au-
thority to administer the Public Lands Act, the En-ergy Protection Enhancement Act and the Water Act, with regards to energy development.
In addition to the single regulator, the govern-
ment of Alberta is making improvements to how it
sets energy-related policy.
Policy direction for the province will continue
to be set by the government of Alberta, through a
newly-created Policy Management Offi ce which
will be responsible for providing clear policy guid-
ance to the new regulator.
Th e province is also completing and implement-
ing regional plans. In August, the province released
its fi rst land-use plan for the Lower Athabasca Re-
gion.
Th e province announced another component of
its integrated resource system – an environmental
monitoring system on Oct. 17.
Greetings at Christmas
Plans to cover land owners, environment, and the industry
PIPELINE NEWS December 2012 B29
G I V E T H E G I F T O F W A R MT H
T H I S H O L I D AY S E A S O N .
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Purchase your Gift Cards by calling the
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online templegardens.sk.ca or visiting our Front Desk
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Justin Iversen - 306-861-7808
Darcy Iversen - 306-861-4420
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• Management
35 Years in BusinessEbel Road Property Available
Weyburn Sask.
FOR SALE BY ORIGINAL OWNERPolar Bear Rug
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Phone (306) 842-4845 or email [email protected]
Lloydminster – Sunny days are ahead for sales of a solar operated chemical
injection pumps at Bruin Instruments Corp. in Edmonton.
Th e Canadian owned and operated manufacturer of chemical injection
pumps and pumping equipment generated a lot of sales leads with its solar
powered BR1100 chemical injector pump exhibit at the Lloydminster Heavy
Oil Show in September.
“We do very well with solar and electric pumps in this area,” said sales
representative Jason Treichel at the Bruin booth.
“We are bringing the solar along for everyone to see what it’s all about and
hopefully, get some clientele for that as well.
Page B30
Solar injector pump a bright idea
Jason Treichel, a sales rep with Bruin Instruments, a Canadian owned manufac-turer of chemical injec on pumps based in Edmonton, leans on a 130-wa solar operated BR1100 chemical injector pump at the Lloy-dminster Heavy Oil Show in September. The solar op on is ideal for remote northern well sites where electricity isn’t available.
B30 PIPELINE NEWS December 2012
FIND OUT MOREEnbridge.com/InYourCommunity
We support the people who keep our communities safe.
Our Safe Community program provides firefighters, police departments and other first responders with funding for everything
from equipment to training. The program gives the men and women who protect us the support they need to ensure the safety
and wellbeing of our communities, now and into the future.
Enbridge delivers more than the energy you count on. We deliver on our promise to help make communities better places to live.
It’s part of the reason we were named one of the Global 100 Most Sustainable Corporations in the World.
WHERE ENERGY MEETS SAFETY
T. K. Trailer SalesManor, Sask. Ph: 1-306-448-2260; Cell: 1-306-575-7116
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Happy holidays and many thanks for your kind patronage this past year.
It’s Been OurPleasure Serving You!
Page B29
“It’s a solar operated chemical injection pump.
You just put it on a well site, and you can inject
methanol, chemicals and corrosion inhibitors. Any-
thing you want inside a well, this thing can handle.”
Th e BGR1100 is a rotary cam driven positive
displacement plunger type pump that utilizes a
rotary electric source.
Th e BR1100 fi tted with a DC motor can be
powered with a set of batteries charged by solar
panels such as the 130-watt panel displayed in
Lloydminster.
Th e alternative to solar is electric, but electricity
is not always available at remote well sites and in
northern regions of Western Canada.
“It’s the new age, I guess, we’re going for now.
Everyone wants to save money with the gas and
stuff like that. Th e next step-up is solar,” said Tre-
ichel.
“In the north country, one 130-watt panel and
two batteries can usually stand up for quite a long
time.
“In the fall and the summer these things are
perfect. It’s the harsh Canadian winters that are
hard on the batteries. You may have to switch the
batteries a little bit more or use a heater on the bat-
teries.
“If it’s -40 Celsius that’s when the batteries
kind of freeze up. If you are willing to spend the
money, solar is the way to go.”
Th e pump can be operated with an electronic
control that turns the pump on for a specifi ed
period of time.
“Th at way it’s a little bit easier on the batteries
and the solar panel, so it’s more long lasting,” said
Treichel.
Th e pump can handle a wide variety of output
volumes from less than one litre to 378 litres (100
gallons) per day and discharge pressures up to 3,000
pounds per square inch.
Bruin Instruments also manufactures a variety
of pneumatic, electric, natural gas and beam driven
pumps for the global oil and gas market including
an environmental gas recovery pump.
“Here in the Lloydminster area, electric is very
popular because the gas is usually low pressure
around here,” said Treichel.
“Th ere’s a lot of gas around, so they usually
want to save the gas and go with the electric.”
Bruin Instruments also provides sales, parts,
service and repairs and exchange services for its
Bruin Pumps and a wide range of other pumps they
carry from brand name manufactures.
Next step-up in solar
PIPELINE NEWS December 2012 B31
Leading The Wayg y
Setting new standards Setting new standards for performancefor performance
Fast Growing Fast Growing CompanyCompany
www.CanElsonDrillingCanElsonDrilling.com
Box 312Carlyle, SK S0C 0R0Office: 306.453.2506Fax: 306.453.2508
Suite 700, 808 - 4th Avenue SWCalgary, AB, Canada T2P 3E8Phone: 403.266.3922Fax: 306.266.3968
TSX: CDI
Opportunities On Our RigsOpportunities On Our RigsCanElson Drilling Inc. is currently looking for hard working individuals that are looking CanElson Drilling Inc. is currently looking for hard working individuals that are looking
for challenging and rewarding work on top-of-the-line equipment in Saskatchewan. for challenging and rewarding work on top-of-the-line equipment in Saskatchewan. We provide competitive wages and stock options for Drillers and Rig We provide competitive wages and stock options for Drillers and Rig
Managers. Interested individuals can drop off resumes in person at our Managers. Interested individuals can drop off resumes in person at our Carlyle Office or fax to 306-453-2508. Carlyle Office or fax to 306-453-2508.
Offices in Calgary, Nisku, and Carlyle, as well Offices in Calgary, Nisku, and Carlyle, as well as Midland, Texas and Mohall, North Dakotaas Midland, Texas and Mohall, North Dakota
Since it was established in late 2008, CanElson Drilling Inc. has grown quickly to become one of Canada’s premier drilling contractors. In addition to building its own drilling rigs, the company is expanding its eet of drilling and service rigs through acquisition. CanElson now operates a eet of 40 rigs.
With operations in Western Canada, West Texas, North Dakota and Mexico, CanElson Drilling Inc. is setting new standards for rig utilization.
With right-sized, purpose-built rigs built for horizontal and resource play drilling and experienced, well trained crews, the company is achieving new records for cost-effective, ef cient drilling operations.
B32 PIPELINE NEWS December 2012
Supplementing both the Drilling and Production sectors of the Oilfield Industry. Tanker Units, Pressure Batch Trucks, and a Fully Equipped Pressure Batch Trucks, and a Fully Equipped
Service Truck are available. Service Truck are available.
We specialize in transporting Salt Water, Crude Oil, We specialize in transporting Salt Water, Crude Oil, Completions, Completions, Contaminated Mud & Fresh Water!Contaminated Mud & Fresh Water!
Office 1-306-453-4470Office 1-306-453-4470Fax 1-306-453-4404Fax 1-306-453-4404
Manager 1-306-577-9960Manager 1-306-577-9960Dispatcher 1-306-577-9801Dispatcher 1-306-577-9801
“Serving The Oil and Gas Industry “Serving The Oil and Gas Industry with 24 Hour Drilling Fluid Service”
Specializing in Non DamagingSpecializing in Non DamagingBiodegradable Drilling FluidsBiodegradable Drilling Fluids
Designed for Horizontal DrillingDesigned for Horizontal DrillingPO Box 1089, Carlyle, Saskatchewan S0C 0R0PO Box 1089, Carlyle, Saskatchewan S0C 0R0Phone: Phone: (306) 453-4411 (306) 453-4411 Fax: Fax: (306) 453-4404 (306) 453-4404
Division PresidentDivision President(306) 577-9900(306) 577-9900
Field Supervisor Field Supervisor(306) 452-8182 (306) 452-8182
Field SupervisorField Supervisor(306) 577-9962(306) 577-9962
Warehouse ManagerWarehouse Manager(306) 577-3347(306) 577-3347gg
Designing & Implementing Designing & Implementing Production Chemicals Production Chemicals
for Western Canadafor Western Canada
Cell: 306-575-7521Cell: 306-575-7521Of ce: 306-453-4414Of ce: 306-453-4414Fax: 306-453-4415Fax: 306-453-4415
mmf th Oilfi ld I d t T k U itf th Oilfi ld I d t T k U it
menting both the Drilling and Production menting both the Drilling and Production
NEWSPIPELINE SECTION C
December 2012
By Geoff Lee
Calgary – Th e Canadian Association of Oilwell Drilling Contractors
wants the federal government to know the rig industry benefi ts all of
Canada economically, not just the western provinces.
Members of CAODC, led by its president Mark Scholz, took
their message before the federal Standing Committee on Fi-
nance meeting in Ottawa on Oct. 24.
“Our purpose was education and reaching out to our
federal policy makers. CAODC understands the infl uence
that the federal government can have on our industry,” said
Scholz.
“We were educating our members of Parliament from
across the country on some of the unique challenges in the
drilling and service rig business and ways they can help im-
prove our industry going forward.
“Th ere is a growing myth in our country that the oil and
gas industry only benefi ts western Canadians, and that’s just
not the case.”
Service rig and drilling rigs workers are recruited from
all parts of the country including Newfoundland, Quebec
and Ontario for rig activity from Manitoba to British Co-
lumbia.
“We have rigs that are built and are composed of a num-
ber of individuals right across the country who don’t make
Western Canada their home,” said Scholz.
“Th eir home could be in Eastern Canada, in Atlantic Canada,
and possibly the west coast of British Columbia.
“We attract our manpower from right across the country, so all
Canadians are really benefi ting from this industry. Th at’s what we are
trying to communicate.”
In a news release on Oct. 24, COADC said one active drill-
ing rig draws support from 135 jobs with 75 of those jobs
in oil and gas occupations and 40 in hospitality
services such as hotels, restaurants and gas
stations.
Scholz said the economic im-
pact of the rig industry is over-
looked especially in regions
like Ontario and Atlantic Canada that continue to suff er from
high unemployment as well as gas prices at
the pumps.
“Th ere’s a tremendous amount of
manufacturing activity and indirect
economic spinoff that occurs in
parts all across the country,” said
Scholz.
“Th ere’s a lot of manu-
facturing that’s done in
Ontario for the oilsands.
Th ere are some compa-
nies that have said ‘look
we wouldn’t be around if
it wasn’t for the oil-
sands."
While in Ottawa,
CAODC members also
took time to highlight
the skill set of rig work-
ers and seek help to re-
cruit more workers from
Eastern Canada to meet
the labour shortage.
“We still have a num-
ber of people from those areas
coming to Western Canada
and working on the rigs. You
just have to look at the
economic conditions in
Ontario right now,”
said Scholz.
Page C2
Mark Scholz, president of CAODC, took part in a public rela ons mission in O awa in October to promote the na- onal economic bene ts of
the rig industry and to seek help in hiring new workers from hard hit parts of East-ern Canada.Photo submi ed
CAODC drills MPs,sees stable Q4
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Page C1“Southern Ontario is in really bad
shape, particularly on the manufactur-
ing front with auto workers.
“We would love to continue to
see successful recruitment for those
folks who need jobs because we have
the jobs here.”
Rig technicians are a Red Seal
trade with apprenticeship training
off ered in British Columbia, Alberta,
Saskatchewan and the Northwest
Territories for the past nine years.
More that 9,500 overall positions
in the oil and gas industry, including
rig crews, need to be fi lled by 2015,
according to a market outlook pub-
lished in May 2012 by the Petroleum
Human Resources Council.
Collaboration among indus-
try, government and labour supply
stakeholders is cited by that report as
a good way to meet the demand for
labour due to age-related attrition as
baby boomers retire.
“Th ese labour challenges aren’t
going to be going away in the short
term, or frankly, also the long term. I
think this a lull in labour supply that
we are going to be with for a long
time,” said Scholz.
“Th at’s partly the reason I was
in Ottawa speaking in front of the
federal fi nance committee and talking
about ways that we can incentivize
Canadian workers in Ontario and
parts of Quebec to look for work in
Western Canada.
“We are in a very unique place in
Western Canada. If we don’t address
this, we can have an unsustainable
escalation in wages and infl ation in
Western Canada that is not going to
fare well with our economic health.”
CAODC released their 2013
drilling forecast on Nov. 13 and is
sticking with its fourth quarter fore-
cast for 2012 for a utilization rate of
55 per cent and a year-end average
rate of 49 per cent.
For the week of Oct. 23, the
utilization rate stood at 42 per cent in
Western Canada.
“What I am hearing for quarter
four is I think there will be stable
activity. I don’t think we are going to
see any major thrusts in activity,” said
Scholz.
“Th is summer, we were very
concerned about some of the an-
nouncements of clawbacks of capital
expenditures. It didn’t materialize to
the extent that we were looking at in
terms of a worst case scenario.
“I think we are going to have a
stable quarter four.”
In 2011, the petroleum industry’s
workforce expanded signifi cantly due
to capital spending that far exceeded
industry forecasts.
Th ere were over 186,000 oil and
gas industry jobs in 2011, an increase
of one per cent over 2010 and a fi ve
per cent increase over 2009.
CAODC sees little hope for
increased gas drilling in Saskatchewan
unless natural gas prices rebound.
“At $3 to $3.50 – at those num-
bers they are just not economic. We
have seen some analysts have been
on the record indicating plus $4. Th at
certainly will help.”
Th e bigger worry for the rig in-
dustry is the prospective threat of low
crude oil and gas prices at the same
time with crude oil prices hovering
around $84 a barrel in late October.
“We are in a unique position right
now. Before we always had more of
a balance between drilling for crude
oil and drilling for natural gas,” said
Scholz.
“One of the risks we have is if oil
continues to see this much volatil-
ity – if it gets any lower than where it
is now and we see operators clawing
back on crude oil drilling, we don’t
really have gas to fall back on.
“Th at is a tremendous concern,
so we are really – at this point from a
drilling community – we are putting
all of our eggs in one basket.
“We hope to see that change. We
would love to see gas back up to $5 or
$6. I don’t think it’s going to happen
in 2013 and I don’t think it’s going to
happen in 2014 either.”
Demand for natural gas could be
helped with a prolonged bout of cold
weather across populated areas of the
United States.
“If we can get a few cold snaps
down there and get people turning
on their heaters, we’d love that,” said
Scholz on a cold day in Calgary.
Scholz said the construction
of pipelines such as the proposed
Keystone XL and Northern Gateway
projects originating from Alberta may
not spike the demand for drilling, but
would be good for the industry and
Canada economically.
“I don’t know if you’d see an in-
centive in the short term, but I won’t
argue if we don’t see those major
infrastructure projects go ahead, it
will certainly be a deterrent for future
investment in the long term,” said
Scholz.
“You have to keep in mind 98 per
cent of our oil and even on the gas
side is being sold to the United States
and is being sold at a discount.
“For a country that wants to be
an energy super power in the next fi ve
to 10 years, we’ve got to diversify our
markets.
“If we don’t do that, it’s going to
hurt investment. It’s going to hurt
drilling activity and it’s not going to
do very well for the overall Canadian
economy.”
Little hope for increased gas drilling
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By Geoff LeeLloydminster – Grit
Industries Inc. is off to
a fl ying start at its new
manufacturing base in
North Battleford with
a backlog of orders to
fi ll for their fl agship
cold weather technology
products. Demand for
the products means they
already have orders to
take them well into the
third quarter of 2013.
Th e Lloydminster-
based company expects
to complete the reloca-
tion of its core manu-
facturing divisions to
its new 92,000 sq.-ft.
complex on 12 acres of
land in North Battleford
by December.
“Th e buildings in
Lloydminster have all
been sold. We have sim-
ply outgrown our facili-
ties here and we needed
to move forward in
order to be competitive,”
said president Wayne
King on Nov. 2.
“In order to keep up
with the demand for our
products, we needed to
relocate.”
Grit Industries’
decision to shift manu-
facturing to North
Battleford includes the
relocation of sales and
general administrative
staff to a new two-stor-
ey head offi ce located
near the Lloydminster
airport.
“We will be basing
our operations in Lloyd-
minster for the A-Fire
Burner Systems group
as well as the secondary
containment product
line,” said King, who
expects the staff transfer
to be complete by mid-
December.
Th e Lloydminster
offi ce will also house the
company’s research and
development depart-
ment.
Th e new site in-
cludes a welding shop
that will make parts for
Grit Industries’ new
heat exchangers.
King said the
company in the future
will focus on growing its
cold weather technology
division and sales of its
natural gas line heat-
ers and indirect fl uid
heaters from the North
Battleford facility.
Grit Industries has
sold more than 1,400
of its gas line heat-
ers in Canada and the
U.S. and has an energy
effi cient and low NOx
prototype unit cur-
rently being evaluated in
England.
Th e company has
also sold and installed
more than 60 of its
indirect fl uid heaters for
heating light oil tanks
for clients in Estevan,
Elrose and Kindersley.
Grit Industries
recently obtained ap-
proval to market its
fl uid heaters to industry
in North Dakota for
the purpose of heating
light oil in tanks and it
expects to soon receive
code approval to branch
into the Alberta and
Manitoba markets.
Th e company hired
a consultant to assist
with the logistics of
the relocation and the
layout of the new build-
ing in North Battleford
that contains 5 overhead
cranes up to 20 ton cap-
acity and 8 jib cranes to
serve welding stations.
Th e building is
equipped with the latest
cutting, bending and
metal forming machines
for plasma cutting,
water jet cutting and
robotic welding.
Th e company has
hired more than 60
employees to ramp up
manufacturing of their
A-Fire burner systems,
cold weather technol-
ogy products, G-55
containment systems
and related fabrica-
tion products in North
Battleford.
When it came to
hiring, it helped that
Grit Industries also had
a manufacturing shop in
the McMillan Industrial
Park for the past fi ve
years.
“When we put a
request in for welders
in Lloydminster, we get
very poor response,” said
King.
“When we put an
ad in the papers for
welders in North Battle-
ford, we might get eight
or 10 responses and we
will hire a number of
them.”
King said the
availability of labour
in North Battleford
compared with Lloyd-
minster weighed heavily
in the decision to move
their core manufactur-
ing activities to Sas-
katchewan.
Page C4
Grit quickly “cold starts” in North Battleford
Grit Industries’ manufacturing centre features a new robo c MIG welder for welding parts such as a retube throat.
C4 PIPELINE NEWS December 2012
Page C3“Th e industry doesn’t concern itself with where the product is manufac-
tured. What they want is a good high quality product at a low cost.”
Th e cold weather line of natural gas heaters has caught on with industry
with their improved thermal and combustion effi ciencies and fuel savings.
Th e product is based on heat-driven loop technology that King began to
develop in 1999 to heat heavy oil tanks using their own vented meth-
ane instead of a fi retube.
“When we discovered the heating of natural gas was very successful using
that same technology, it was one of those ‘Eureka moments’ in product de-
velopment,” said King.
“In 2003, we partnered with SaskEnergy and we developed the natural gas
heating systems that are around North America today.
“It’s simple, it’s very functional, it’s safe and it’s code compliant. Th at’s
where we are today.”
Th e indirect fl uid heater is designed to heat multi-tank or vessel applica-
tions with signifi cant cost savings in energy consumption and effi ciencies.
“A fi retube maybe runs at 45 to 50 per cent effi ciency. Th is new device that
we have runs at 80 per cent thermal effi ciency,” said King.
“A fi retube has a high fl ux rate, meaning the skin temperature is about
1,200 F. Th e skin temperature on this device is 200 F.
“So therefore, what takes place with a fi retube is that because of the high
temperature, you are actually fl ashing the water portion of the crude oil to
steam which leaves a salt deposit on the fi retube.
“Our technology, because it has a lower skin temperature, it does not
create that salt deposit and the heat exchanger remains clean and unob-
structed for that heat transfer.”
Th e indirect fl uid heaters can easily be retrofi tted to existing fi retube
throats and have no moving parts, and do not require electricity to oper-
ate.
When used to heat light oil tanks, the technology upgrades oil to
pipeline specifi cations safely with indirect steam heating technology.
“Th e temperature of the heat exchanger is much lower than the
fl ash point of crude oil. It heats fl ammable liquids safely, using indirect
steam,” said King.
Grit got the go ahead on Nov. 2 to begin fi eld testing of one of
its most advanced indirect heaters for natural gas distribution in
England for National Grid, an international electrical and gas
supplier to Great Britain and Northeast United States.
“It’s being evaluated. Potentially, it will be the world-
leading technology for the heating of natural gas,”
said King.
Page C5
High quality and low cost desired
Dean Iverson puts the nishing touches to a ame arrestor.
PIPELINE NEWS December 2012 C5
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Page C4“Th e technology we are developing for England, will at some point in time,
be introduced in North America. We are developing the futuristic model into
Europe to be proven.”
Th e units received CE marking for European safety standards and they
exceed stringent emission standards with only seven parts per million of NOx
emissions.
King said National Grid has about 3,500 natural gas distribution points in
the U.K. that need to be upgraded to the new technology.
“We are certainly hopeful that our technology is chosen,” he said.
Th e European natural gas line heater being tested produces 1.5 million
BTUs of heat per hour.
Th e North Battleford plant manufactures units from 70,000 to 770,000
BTUs but larger ones are in the works.
“Currently, we are developing a three million and a fi ve million BTU unit
and combinations of those units will put us in the multiples of 5, 10 and 20
million BTUs,” said King.
SaskEnergy has also saw a need for the technology for the pre-heating of
natural gas at two of its gas turbine stations in Saskatchewan.
“Th e industry has shown that natural gas has better combustion at a certain
temperature. Th ey pre-heat the gas before the gas goes into the gas fi red tur-
bine. Our technology works well there,” said King.
Other potential markets for cold weather technology are U.S. hospitals and
utilities that are retrofi tting oil burning furnaces to natural gas furnaces using
high pressure gas captured from shale gas fracking and trucked to location.
“When you have high pressure gas and you are going from 2,000 psi to
two ounces of pressure to burn in the furnace, you have to have a heating sys-
tem,” said King.
Due to the Joule-Th ompson eff ect, gas begins to freeze when it loses pres-
sure.
Closer to home, SaskEnergy will become an even bigger customer for Grit
Industries’ cold weather technology as the Crown corporation replaces its con-
ventional bath heaters with natural gas line heating technology.
“If we can reduce the fuel consumption by 50 per cent, there may be mil-
lions of dollars in savings annually ... let alone the greenhouse emissions,” said
King.
“SaskEnergy must be commended for their forward thinking and plan-
ning.”
Roll foremen Ma Chasse, le , and Leo Romanovych prepare to move a roll of metal used for a variety of metal forming in the roll forming sec on of Grit Industries’ new manufacturing facility in North Ba leford.
Grit Industries’ 92,000 sq.- . manufacturing facility in North Ba leford is equipped with 5 overhead cranes and eight jib cranes for heavy li ing.
C6 PIPELINE NEWS December 2012
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Geoff LeeInnisfree – Cowboy up and keep on keeping on. Th at’s the code that 38
year-old Curtis Anderson lives by – one day at a time at his cattle farm in
Minburn, Alberta.
Anderson is a cowboy poet, singer, song writer and motivational speaker
with a powerful message about the need to protect yourself from injury at
work and at play.
Th e message is prefaced by his personal story of courage and faith on the
path to recovery from a serious brain injury when stopped time for him on
June 26, 2002.
His compelling story is available on his website at www.caccanada.com
or in a printed handout.
“On that day, I was competing in the bull riding at the Ponoka Stam-
pede,” he said.
“While riding, I lost my balance and was struck in the head twice by the
bull’s head. I was rushed to the University of Alberta Hospital, where I would
spend three weeks in a drug-induced coma.
“From there I was sent to Glenrose Hospital where I started all over
again.”
Th ose are the opening lines to his a 20-minute safety presentation pack-
age that he’s delivered recently to oil companies such as Command Energy,
Leading Manufacturing Group and Red Planet Trucking.
“Not as many know about head trauma as anything else, but it’s out there
and it aff ects a lot of people,” said Anderson.
“It’s something that you will know about the rest of your life when you
experience it.
“Wear your hard hat wherever there is a chance of you having a fall, and
don’t take your life for granted. Appreciate what you have today, because
tomorrow it might be gone.”
Anderson’s safety talk covers hard hat safety, custom earplugs, steel toe
boots and safety boots and his career on the drilling rigs that ended with his
injury. Page C7
Meet Cur s Anderson, cowboy poet, singer, song writer, ca le farmer and custom oil- eld lease fence builder. Anderson is also a mo va onal speaker with a safety message
and life story about the importance of protec ng your head from brain injury. Anderson su ered a brain injury in a rodeo accident and recently got his driver’s licence back. His steering wheel is equipped with a spinner that he grips with his right hand.
Anderson speaks ofinjuries n the workplace
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Page C6“I worked eight winters on the drilling rigs for Akita Drilling, and in the
summertime, I had my custom fence business fencing oil leases,” said Anderson.
“I worked in Fort McMurray, Slave Lake around Bonnyville, and around
Duchess and Medicine Hat. I worked lease hand, roughneck and motorman.
“It’s 12 hours of hard working and you can see how much you got done at
the end of the day.”
His other brother, Derek, works in the oilfi eld for Sweet Wildrose Consult-
ing and his younger brother, Kelly, works for Nexen Energy.
Anderson was unable to walk on his own, speak properly, or move his left
arm immediately after the injury, but weeks of therapy in diff erent hospitals and
his “cowboy up” attitude were rewarded with noticeable improvements.
“When your back is against the wall, you raise the bar of excellence while
believing in yourself, friends, angels and God,” he says in his handout.
“It’s been 10 years. My body is still getting better and I am able to do more
and more things with my left hand. You don’t get better by sitting on a couch.”
For the last two years, Anderson has been able to hold a barbed wire fence
staple with his left hand which has enabled him to resume his custom fence busi-
ness for oilfi eld leases.
Anderson is motivated to fully recover by inspiring slogans including the
words of his hero John Wayne, who said, “Courage is being scared to death and
saddling up anyways.”
He is proud of the fact that he can lift a 40-pound pail of grain now with his
left arm.
Two years ago, he got his driver’s licence back on the condition he install a
cross-over turn signal switch and a spinner on his steering wheel.
“It’s one more step to being independent,” he said.
Asked if he misses working on rigs, Anderson said this: “I am still involved
in the oilfi eld – just in a diff erent manner. Speaking at safety meetings is just as
good as being on the fl oor when it’s -30 C.”
Anderson had delivered his safety story at six diff erent bull riding events
and one rodeo this past summer, and he has spoken at the annual Big Jamboree
Bulls for Breakfast event in Camrose for the past three years where he received a
standing ovation.
Anderson began bull riding at rodeos in 1992 and he won a few events.
“Th e challenge was being better than the bull that day,” he said noting that
it was a bull named Real Handy that got the best of him in 2002 with those
damaging head butts.
“About 40 per cent of the riders are wearing helmets now, and you will see
more and more of the riders wearing helmets. I wish everyone would wear a
helmet,” he said.
“People are more
aware of how serious a concussion can be, so hopefully it does bring more aware-
ness and more people start to wear helmets.”
His hard hat safety talk includes a demo of what happens to your brain with
and without the protection of a hard hat.
He takes a Styrofoam cup lined with cotton balls, puts an egg in the middle
of it and tapes the lid tight. Th en he drops the cup on a tin plate that represents
your brain protected by a hard hat. Th e protected egg is perfectly intact.
Th en he drops the egg by itself to show what happens to your brain without
a hard hat.
A few years back, Anderson began to write poems for rodeo friends and
family in order to communicate his experiences in the oilfi eld, rodeo and farm
life.
“It’s my way to show respect,” he said. “I have quite a bit of material to write
poetry on.”
Anderson hopes to have copies of his new book titled, Road to Recovery avail-
able by the spring of 2013.
“It will have my speech in there and pictures about life before brain injury,
poems and pictures of me speaking,” he said.
Th e book will also make reference to Courage Canada, a trail ride that his
family from nearby Innisfree holds annually to raise money and awareness for
brain injuries.
“Th is year we had 101 riders on horseback, 12 teams, and 74 riders in the
wagons and 250 people for supper,” said Anderson.
Th e 2013 trail riding event will be held on May 25.
“Th is year it started from my place and we raised $19,200,” said Anderson.
“Th at money helps brain injury survivors and their families from day one.
Ten per cent of that money went to the Lloydminster and Area Brain Injury
Society (LABIS).”
Anderson is well connected to the Minburn area as his great, great uncles Ed
and Otto Anderson were the fi rst settlers to set up camp at town in 1904.
Each year on the last Sat-urday in May, Cur s Ander-son’s family holds a Cour-age Canada trail ride in the Innisfree and Minburn area of Alberta to raise money in support of brain injury survivors and their families. Photo submi ed
C8 PIPELINE NEWS December 2012
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By Geoff LeeLloydminster – Riddle me this:
What generates 65,000 horsepower,
10,000 pounds per square inch of ini-
tial pressure, travels 1,500 metres per
second through a wellbore and can
increase heavy oil heavy production by
a whopping 30,000 per cent?
Th e answer is a new wireline ap-
plied stimulation pulse tool and ser-
vice provided by Blue Spark Energy
based in Calgary, and in Lloydminster
via Ryan Rivett, technical fi eld sales
representative.
Rivett teamed up with business
development manager Trent Hunter
who led a presentation and outdoor
demo of pulse technology for work-
overs and new completions in cold
produced wells during the October
luncheon of the Lloydminster Society
of Petroleum Engineers.
In a nutshell, Blue Spark delivers
pulse stimulation to enhance pro-
duction in oil wells with an electric
hydraulic wireline tool.
Th e company has deployed their
wireline pulse technology in more
than 80 wells around the world in-
cluding 25 vertical CHOPS wells in
the Lloydminster area with a 250 per
cent average increase in productivity.
Productivity gains have ranged
from around nine per cent to nearly
30,000 per cent worldwide.
“My message is that the technol-
ogy is proven and that it works,” said
Hunter moments before taking to the
podium at the Best Western Inn on
Oct. 18.
“Also, I want to basically educate
some of the people on the technique
because pressure pulse technologies
have been widely applied in the heavy
oil market using diff erent techniques,
whether it’s a fl uid pulse or any type
of hydraulic pulse.
“What’s really unique about us
is how we deploy with the wireline
tool and how we can get such extreme
pressures.”
Generating repeated low energy/
high power hydraulic shock waves
mechanically remediates near well-
bore damage from perforations, slot-
ted liners and sand screens.
Page C9
Blue Spark pulse tool boosts recovery
Members of the Lloydminster SPE check out the results of a demonstra on of Blue Spark’s pulse technology in this 150 gallon test tank. The demos took place in the park-ing lot of the Best Western Inn following a lunch presenta on by business development manager Trent Hunter.
Ryan Rive , le , technical eld sales representa ve
for Blue Spark in Lloydmin-ster, helps Trent Hunter, business development manager in Calgary, hold up the business end of this wireline applied s mu-la on pulse tool follow-ing a presenta on of the technology at the October mee ng of the Lloydmin-ster Society of Petroleum Engineers.
PIPELINE NEWS December 2012 C9
Page C8
Th e energy source can be an inverter or a gen-
erator from a wireline unit or any type of truck.
Th e wireline pulse service from Blue Spark can
also achieve formation breakdown to initiate sand
fl ow in new well completions where traditional
CHOPS initiation methods have not been success-
ful.
“It’s a high speed high pressure shock wave that
we emit from our wireline tool, and it travels out-
ward and intersects the entrance holes of perfora-
tions, slotted liners or sand screens,” said Hunter.
“It causes geo-materials or scales to crack under
tensile failure mechanisms.
“We create a pulse that travels as a fl uid wave
through the wellbore fl uids and out into the forma-
tion. We initiate that using a spark inside of our
tool, very much like lightning.”
Th e science or physics behind wireless pulse
technology is based on the formula that energy
equals power multiplied by time.
“We want really high power pulses. We take
energy and we send it down a wireline cable,” said
Hunter.
“We store it up in the tool downhole in a bank
of capacitors. What is unique about what we do is
we release that in a nanosecond.
“In a couple of microseconds, we get a peak
pressure of 10,000 psi. Because we really ‘com-
press time’ it’s a conversion from a kinetic form of
energy – electricity we send down the cable – and
we convert that into stored potential energy in the
capacitors.
“Once it’s stored, we release it extremely quickly
on a repetitive basis up to 2,000 times. It’s that
repetitive nature that gives us the cumulative eff ect
of reducing wellbore damage.”
Blue Spark adapted the pulse technology from
their sister manufacturing group that was applying
it for welding purposes.
In July 2011, the company began commercial
operations of its wireless pulse service for the oil
industry.
“Th e two key markets that we have been focus-
ing on to date have been the near wellbore remedia-
tion for producing wells, whether that’s new well
completions or workovers, or in injector or disposal
wells,” said Hunter.
Blue Spark’s stimulations and lab tests verify
that the shock wave acts to increase the permeabil-
ity of the near wellbore for enhanced oil production.
“Some stimulation techniques are used to un-
plug what is the existing pathway or pore throats of
the formation right near the wellbore,” said Hunter.
“What our technique does is allow the en-
hancement of the existing permeability and the
pore throats, and to create new fractures as well.”
Th e Blue Spark wireline pulse service can also
be used as pressure or pulse source for seismic ap-
plications since the pressure pulse travels up to a
kilometre through the formation.
Th e current tool is four inches in diameter and
8.5 metres in length with a 5.5 inch diameter and
a 2-3/4 inch slim tool in the advanced stages of
development.
Th e four-inch pulse tool is deployed with a
wireline truck equipped with a 5/16 inch drum
cable.
“We simply rig it with the electrical cable
that comes with the truck and we put our tool on
the end cable and we run it into to the wellbore,”
explained Hunter.
“We log it on depth with the casing collar loca-
tor or a gamma ray, and we make sure that we pulse
over the top of the open perforations. Th at whole
operation takes a few hours of rig time, then we rig
down and we leave.”
Hunter presented examples of fi ve wells treated
with their pulse service in Lloydminster that ranged
from a minimum 10 to 20 per cent increase in pro-
ductivity to the best well that that went from never
being able to produce to nearly 10 cubes a day.
“Given the benefi t plus the cost that we charge,
it is cost-eff ective,” said Hunter. Trent Hunter demonstrated how to use Blue Spark’s wireline applied s mula on pulse technology to clean up damage from perfora ons, slo ed liners and sand screens in heavy oil wellbores.
C10 PIPELINE NEWS December 2012
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By Geoff LeeLloydminster – Th ere was a lot of mixing and
mingling at the Lloydminster Oil and Gas Career
Discovery Day at Lakeland College where students
met with oil and gas employers and employees to
learn about industry careers.
More than 750 regional students were invited
to the campus on Oct. 23 to hear keynote speakers,
take part in career breakout sessions with industry
workers, and speak with exhibitors and recruiters
regarding career paths.
“Th e main goal is to provide students with
opportunities to hear and know about all of the
diff erent jobs within the oil and gas industry,” said
Cosette Green, business and industry liaison with
Alberta Works, an Alberta government services
agency that funded the event with industry spon-
sors.
“We are defi nitely experiencing a labour short-
age. We know that in the next 10 years we are going
to increase the shortage.
“Our students don’t really understand at this
point the vastness of the job opportunities – and
they can be here in our own back yard.”
More than 30 oil and gas businesses and train-
ing and safety organizations took part in the event
that included scheduled presentations by employ-
ees who spoke about their jobs and how they got
started.
“Th e students will be able to pick and choose
the sessions that they want to go to – jobs they
might want to hear about or jobs that maybe they
never even dreamed of were out there,” said Green
at the start of the day.
“People who are doing the jobs can tell them
what they like about their jobs, and what they do
on a daily basis – what the environment looks like,
what kind of pay they can expect – almost anything
they may want to learn about a job.”
Presenters covered the nuts and bolts of a vari-
ety of careers and positions including engineering,
trades, human resources and administration, survey-
ing, heavy equipment operations, drilling and safety.
Th e event was organized by Alberta Works in
partnership with Newcap TV and Lakeland Col-
lege and co-ordinated by Wilson Consulting.
Page C11
Oil eld career day a hit at Lakeland
Carrie Rawlake, stakeholder rela ons adviser with Cana-dian Natural Resources, preps Rick Monteith, a lead op-erator for CNRL in Tangle ags/Onion Lake on what to say to students about his job at the Lloydminster Oil and Gas Career Discovery Day at Lakeland College.
“Our students don’t “Our students don’t really understand really understand at this point the at this point the
vastness of the job vastness of the job opportunities – and opportunities – and they can be here they can be here in our own back in our own back
yard.” yard.” - Cosette Green, - Cosette Green,
business and industry business and industry liaison with Alberta Worksliaison with Alberta Works
PIPELINE NEWS December 2012 C11
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Page C10“Th e event was ini-
tiated by the employers,”
said Green. “As I went
around and listened
to what their needs
were, I constantly heard
‘how do we get people
to understand what is
available and keep them
in the region?’”
Th e agenda kicked
off with an assembly
at the Vic Juba Th eatre
and a presentation by
Calgary-based Rick
Davidson, manager of
recruitment for Ceno-
vus.
“We have a great
interest in ensuring
young people from Al-
berta and Saskatchewan
clearly understand the
options around careers,”
said Davidson after his
speech.
“We have huge
needs in terms of labour
over the next decade
and we need as many
of these good young
people working in our
business as possible.
“Th e more that
they can learn today, the
more benefi cial we will
all be in the long run.”
Cenovus, itself, has
a need to recruit new
workers to keep pace
with the expansion of
its thermal oilsands
projects at Foster Creek
and Christina Lake in
Alberta and to meet
future growth.
Th e company re-
cently purchased the Al-
berta and Saskatchewan
assets of Oilsands Quest
that Davidson said,”
adds to our existing
portfolio of assets and
allows us to continue to
grow.”
Davidson said he
jumped at the chance to
speak to students about
a myriad of careers
available to them in
the oil and gas industry
given the current and
looming labour crunch.
“I think people in
Alberta and Saskatch-
ewan know that the oil
and gas business has
opportunities, but we
are trying to help young
people understand all
the opportunities that
exist and all the needs
that we require,” said
Davidson.
“Th ey are signifi cant
and they are many, and
these opportunities are
long-term challenging
assignments, and are
really career paths and
not just jobs to do for a
short period of time.”
Opportunity was
also top of mind for
keynote speaker Tim
McMillan, minister
responsible for Energy
and Resources, who
told Pipeline News that
Saskatchewan is the
land of plenty for young
people seeking oil and
gas careers.
“Th ere are great op-
portunities for them and
we’d like to see them
pursue those opportuni-
ties. We need their help
to make our industry
successful in the long
term,” said McMillan.
“Th is is an indus-
try that has been very
welcoming of people
from across Canada
for a long time. We see
our professionals doing
work around the world
in this industry.
“You start on a drill-
ing rig in Weyburn one
day and you’re in Lloy-
dminster a week later.
You may be in Russia
three years after that.
“It’s one of those
industries where, if you
are willing to work hard,
you will be successful.”
Bob Ross, manager
of Enform Saskatch-
ewan, also took to the
podium with a message
for students that safety
is paramount in the
industry and that it’s top
driven.
Page C13
Bob Ross, manager of Enform Saskatchewan, directs students to some informa- on during the Lloydminster Oil and Gas Career Discovery Day at Lakeland Col-
lege. More than 750 students were invited to the event to learn about oil and gas careers and career paths.
C12 PIPELINE NEWS December 2012
Phone: 780.614.2113Phone: 780.614.2113Fax: 780.614.2115Fax: 780.614.2115
Luc Cell: 780.210.0635Luc Cell: 780.210.0635email: [email protected]: [email protected]
Box 1789, St. Paul, Alberta T0A 3A0
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PIPELINE NEWS December 2012 C13
“We have huge needs “We have huge needs in terms of labour in terms of labour
over the next decade over the next decade and we need as many and we need as many of these good young of these good young
people working in our people working in our business as possible.”business as possible.”
- Rick Davidson, manager - Rick Davidson, manager of recruitment for Cenovusof recruitment for Cenovus
Credentials and certi cation needed to work
Page C11“You have to have the credentials and the cer-
tifi cation in order to work for certain employers,”
he explained in an interview.
“As well, you have to have eff ective health
and safety management systems which need to be
audited too, before you can even bid on work.”
Enform is the safety association for the up-
stream petroleum industry in Canada and works
with industry on the development of safety train-
ing and courses.
“We’re not recruiting, but our industry is
always recruiting,” said Ross.
“We being their agent and their representative,
this is all part of our process as well, dealing with
young workers and inexperienced workers as well.
“We are presenting today with some of our
franchise instructors as well as some of our region-
al colleges that off er Enform training courses.”
Ross also staff ed the Enform booth with
Sarah Morris, a safety adviser.
At the ADM booth, Chris Dlaquiere, an ap-
prentice millwright in Lloydminster, had a simple
message for young people thinking of following in
his footsteps into the trades.
“Make sure you fi nd the right job – something
that you are into and something that you enjoy,”
he said.
Dlaquiere explained that becoming a mill-
wright is a four year course available at NAIT,
where he studied, or at SIAST in Saskatoon.
Lakeland College off ers a variety of energy
and trades programs too, but none for millwrights.
Mary Cardinal, a fi rst year student from On-
ion Lake First Nation studying the heavy oil oper-
ations technician or HOOT program at Lakeland,
said she came to the event “to learn more about
the other businesses and how they work.”
Cardinal is one of several Onion Lake fourth
class power engineering students who completed a
pre-HOOT course at Onion Lake this year before
attending Lakeland this fall.
“It was a fi ve month program at Onion Lake.
It’s going good. It’s getting easier now, kind of,”
she said, adding she plans to come back next fall
to get her third class power engineering diploma.
Not every student at the discovery day was
interested in working in the oil and gas industry
including Kyle Whitlock, a Grade 10 student
from J.R. Robson High School in Vermilion who
made his intentions clear when the question was
popped.
“Not especially,” he said although he noted
that his dad was an oilfi eld operator.
“I am not interested it,” was his short explana-
tion. “I want to do some kind of science.”
Le : Bryan Meesto, le , an Onion Lake industry contact for employment, training and careers, speaks to Dion Arnouse, a First Na on liaison from High Velocity Equip-ment Training in Camrose during an oil and gas career day at Lakeland College in Lloydminster.
Right: Hundreds of students, educators and job seekers a ended the Lloydminster Oil and Gas Ca-reer Discovery Day Oct. 23 to learn about jobs and career paths in the industry. More than 30 oil and gas companies and safety associa ons par cipated in the event.
C14 PIPELINE NEWS December 2012
By Geoff LeeCalgary – Th ere were several story lines to
Husky Energy’s third quarter results, most nota-
bly increased production from the Lloydminster
area, thanks to continued emphasis on thermal
heavy oil production.
Full production from the 8,000 barrel per day
Pikes Peak South and 3,000 bpd Paradise Hill ther-
mal projects in the quarter reduced the impact from
maintenance at Husky’s SeaRose and Terra Nova
facilities in the Atlantic region.
Total production before royalties averaged
285,000 barrels of oil equivalent in the quarter
compared with 309,000 boepd a year earlier.
Quarterly profi t rose slightly to $526 million
compared to $521 million a year earlier with aver-
age crude oil pricing of $70.14 per barrel compared
to $78.70 a year earlier.
“Our results show that we continue to build
operational momentum for the fi rst nine months of
this year,” said CEO Asim Ghosh to investors dur-
ing a quarterly conference call on Nov. 1.
“Since we laid out a strategic plan two years
ago, we have delivered on our targets consistently.”
Th at strategy calls for greater emphasis on
heavy oil thermal production and more drilling on
resource plays in Western Canada.
“We are transitioning this part of our founda-
The 8,000 barrel per day Pikes Peak South and 3,000 bpd Paradise Hill thermal projects in the Lloydminster area reached their design produc on rates within two months of rst oil in the third quarter. More thermal projects are under construc on or being evaluated. Photo submi ed
tion to more thermal production and horizontal
drilling to extract greater value,” added Ghosh.
“Th e Pikes Peaks South and Paradise Hill ther-
mal projects have both reached the design produc-
tion rates within the fi rst two months of fi rst oil.
“Based on their cost effi ciency and perfor-
mance, they will be models for our future using this
modular approach for thermal effi ciency.”
Th e third quarter ending Sept. 30 also saw
construction progress on the new 3,500 bpd Sandall
thermal project in the Lloydminster area with fi rst
production scheduled in 2014.
Design work is also continuing on the 8,000
bpd Rush Lake thermal development due to begin
production in 2015. Additional thermal projects in
the area are currently being evaluated.
“Th e capital intensity of these thermal projects is
very attractive. Th eir modular design and small scale
means we’ve been able to reduce the cost per barrel
to develop,” said COO Rob Peabody. Page C15
Paradise Hill thermal project to be a model for Husky
PIPELINE NEWS December 2012 C15
Well Service A division of
Classic Oil eld Service Ltd.
(780) 874-1044
One Call Will Supply It All
Page C14Husky also continued its strategy to focus more on oil drilling with in the
quarter with 95 per cent of the wells drilled targeting oil in Western Canada.
“In heavy oil, we also drilled 49 horizontal wells. In total, 99 horizon-
tal wells have been drilled to date out of a 140 to 150 well program we have
planned for this year,” said Peabody.
While Husky continues to focus more attention on thermal projects and
horizontal drilling, approximately 265 cold heavy oil production with sand or
CHOPS wells will be drilled in 2012.
Th e company is also advancing a number of solvent enhanced oil recovery
projects.
In the third quarter Husky was active in six key resource plays in Western
Canada including the Bakken, Viking, Cardium, Lower Shaunavon, Rainbow
Muskwa as well as the new Slater River play in the Northwest Territories.
“In total, we drilled 32 horizontal resource wells, bringing our total number
to 66 over the fi rst nine months of the year,” said Peabody.
“Th is includes a horizontal well at our Rainbow Muskwa shale oil project
in northwest Alberta.
“We plan to drill six more wells this year to better understand the sweet
spots with this play. In the Northwest Territories at our Slater River project, the
work there is proceeding on schedule.”
Plans are also underway to construct an all season access road this winter
and further evaluate two vertical wells drilled in the area last year.
“Looking ahead, we are expecting to drill a further 31 resource wells across
our oil resource portfolio over the remainder of the year,” said Peabody.
“Overall, we are on track to meet our goal that we set out in 2010 of having
one third of our production from Western Canada coming from resource plays
in 2016.”
Husky is also focused on getting the most value for its capital spending
to develop its liquids-rich gas properties in the producing Ansell and Kaybob
plays in west central Alberta given low natural gas prices.
Two wells were drilled at Ansell in the quarter, bringing the number of
wells drilled to 14 for the year along with 38.5 net well completions.
Up to four more wells are planned at Ansell for the remainder of this year.
“We still consider Ansell as a core asset and it certainly has lots of poten-
tial. However, with the current price environment we have been shifting some
of the capital into our oil plays,” said Peabody.
A second Duvernay horizontal well was completed and tested at Kaybob,
while a third Husky well and a partner-operated well are on track for comple-
tion in the fourth quarter.
One well in the play is currently on production.
Husky also continued to make progress with the fi rst phase construction
of its Sunrise Energy oilsands project in Alberta in the quarter.
Th e phase is it approximately 50 per cent complete with all of the wells
drilled.
Modules for the central processing facility and fi eld facilities are being
delivered and installed with fi rst oil production due in 2014.
In the Atlantic region, maintenance is now complete on the off shore
SeaRose facility while the Terra Nova facility will resume operations in the
fourth quarter when maintenance is complete.
Husky also reports its Liwan gas project in the South China Sea is 75
complete with fi rst production expected in late 2013 or early 2014.
Ghosh told investors during the conference he is personally focused on
project delivery on key milestones and growth pillars.
“Overall, we remain on course in executing our business plan and contin-
ue to make steady progress and setting the stage for major growth projects,”
he said.
C16 PIPELINE NEWS December 2012
Lloydminster Citizens On Patrol
Check Us Out At www.lloydcops.com
Be A Part Of The Solution
For all our info and an Application
to download Requirements are
-Security check, training, and 5 hrs on
patrol a month.
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6602 - 56th StreetLloydminster, Alberta
Phone(780) 875-4780
Calgary – BlackPearl Resources Inc. continues
to derive most of its operating cash fl ow from heavy
oil production on lands owned by Onion Lake Cree
First Nation at Onion Lake.
Th e most signifi cant increase in production in
2013 however, is expected from the Mooney alkali
surfactant polymer (ASP) fl ood project in north
central Alberta.
Exit production levels for 2013 are expected to
be between 11,000 and 12,000 barrels of oil equiva-
lent per day – 10 to 20 per cent higher than 2012.
Th e Calgary-based company is planning a
capital expenditure of about $140 million to $160
million in 2013 for the continued development of
its core heavy oil projects.
Th ese include the expanding Blackrod steam
assisted gravity drainage (SAGD) pilot project
near Fort McMurray, the expansion of Phase 2
at Mooney and a planned 12,000 barrel per day
SAGD project at Onion Lake.
“We continued to move all of our projects for-
ward during the quarter,” said BlackPearl president
John Festival with the release of third quarter fi nan-
cial and operating results on Nov. 7.
“Th e commercialization of the Blackrod SAGD
project is rapidly moving ahead. We are assem-
bling our project management team and will select
engineering, procurement and construction (EPC)
contractors in the next few weeks.
“Response from the Mooney ASP fl ood is very
encouraging and gives us confi dence we will be able
to achieve our anticipated production levels for the
fl ood during 2013.
“Production from Onion Lake continues to be
our main source of operating cash fl ows and we will
continue our conventional development program
while we advance a thermal development plan.
“Our next step is to put in place our fi nancing
strategy for the continued development of these
projects, which we expect to fi nalize in the next few
months.”
Festival expects the 2013 capital program will
be funded from anticipated cash fl ow from opera-
tions and existing credit facilities.
“We have a lot of fl exibility in our capital pro-
gram and can adjust capital spending if required,”
he said.
“In 2013, we also expect to put our longer term
fi nancing strategy in place to fund the fi rst phase of
development at Blackrod.”
Over 40 per cent of the 2013 capital budget
will be directed at the Blackrod SAGD pilot that
will be expanded with a second well pair along with
the start of EPC work.
Th e company has received regulatory approval
to expand the pilot. A second horizontal well pair
will be drilled in the fi rst quarter of 2013.
Th e initial well has produced more than
100,000 barrels of oil since start-up and reached
commercial production rates over 400 bpd in May
when it was taken down for a month for well ser-
vicing.
Th e well was brought on production in June.
“Now that we have confi rmed the reservoir can
perform at commercial rates, we have begun testing
alternate operating strategies in an eff ort to better
understand the best way to operate these wells and
potentially incorporate these strategies in the fi nal
commercial development design,” said Festival.
“Some of the items we have been testing since
the well was brought back on production include
changes to the steam delivery system to ensure
uniform heat distribution, diff erent pump types,
and testing diff erent steam chamber operating
pressures.”
BlackPearl fi led for a commercial development
application for Blackrod with Alberta regulators in
May.
Page C17
BlackPearl targets $140M to $160M capex
PIPELINE NEWS December 2012 C17
Kenilworth Combustion Main Offi ceContact Heine Westergaard 1-780-744-3974
Nomad Electric in Northern AlbertaContact Clint Ferriss 1-780-624-2447
Pronghorn Controls in Southern and Central AlbertaContact Stan Neu 1-403-501-4895
CCR Combustion in East Central AlbertaContact Kevin Moan 1-780-872-0706
MAIN OFFICE 1-780-744-3974 FAX 1-780-744-2242
www.kenilworth.ca
Page C16
Blackrod has the long term potential to sup-
port an 80,000 barrel per day SAGD development.
At Mooney, BlackPearl will continue to
develop its Phase 2 lands in 2013 with 20 to 25
horizontal wells to be drilled.
Th e company will also upgrade the road and
pipeline infrastructure on the expansion lands with
the expectation the land will be converted to ASP
fl ood injection in late 2013 or 2014.
In 2011, BlackPearl completed the fi rst phase
of its ASP fl ood on a portion of the fi eld to en-
hance production and signifi cantly increase overall
oil recovery.
Early November production from the ASP
fl ood was more than 1,200 bpd with peak produc-
tion levels of 3,000 to 4,000 bpd expected to be
reached sometime during 2013.
Mooney production from the ASP fl ood area
in the third quarter was 843 bpd, an 11 per cent
increase from the previous quarter of 2012.
Total fi eld production at Mooney was 2,500
boepd.
Th e company plans to drill 15 to 20 horizontal
wells by the end of 2012 and into the fi rst quarter
of 2013.
A portion of these lands could be added to the
existing ASP fl ood as early as the fourth quarter of
2013.
In other third quarter news, the construction of
a heavy oil processing facility to handle the increas-
ing fl uid volumes from the Mooney area was com-
missioned in September.
In 2013, BlackPearl will continue primary
heavy oil development, drill 20 to 30 vertical wells
and upgrade water handling facilities at Onion
Lake.
Production at Onion was lower in the third
quarter at 5,889 boepd compared to 7,065 boepd a
year earlier, due to natural declines and limited new
drilling to off set the decrease.
However, work is underway to drill 11 more
conventional wells by the end of 2012 to add to the
seven drilled in September which will be completed
or put on production in the current fourth quarter.
“Th is recent drilling has extended the pool to
the south and has increased our primary drilling
inventory in the area,” said Festival.
“In addition, some of the recent wells drilled
indicated that the net pay is likely suffi cient to ex-
tend our planned thermal SAGD development.
“Regulatory authorities are continuing to re-
view our 12,000 barrel per day SAGD commercial
development application.”
BlackPearl’s total oil and gas production in the
third quarter average 9,340 boepd, up 14 per cent
from the same period in 2011.
Th e increase is mainly attributed to production
from the ASP fl ood at Mooney and drilling last fall
on the Phase 2 expansion lands.
In marketing news, BlackPearl has begun to
ship between 1,200 to 1,500 bpd of its Onion Lake
and Mooney heavy oil volumes by rail to the U.S.
Gulf Coast and west coast of British Columbia to
avoid pipeline bottlenecks, particularly in the mid-
continent.
“Although shipping by rail is more expensive
than shipping by pipeline, the improved sales price
for our oil more than off sets the increase in trans-
portation costs,” said Festival.
This is a BlackPearl Resources’ bone yard photographed in October 2010 at Onion Lake. File photo
PIPELINE NEWS December 2012 C19C18 PIPELINE NEWS December 2012
Kenworth Lloydminster - A Division Of Edmonton Kenworth Ltd.6101 - 63 Avenue, Lloydminster, AB T9V 3C1
Tel: (780) 871-0950 Fax: (780) 871-0926
Equipped with: Full Tilt Standard Deck Package with Fassi F155 Knuckleboom Crane, Paccar PX6 300 HP Engine, Allison Automatic Rugged Duty Transmission, Hydraulic Brakes - No Air Endorsement Required, 12k Rated Front Axle and Taperleaf Suspension, 21K Rated Rear Axle and Air Suspension, 11R22.5 Tires, 16 ply , 10 5/8” x 5/16” Frame Rails, Removable tow hooks in front bumper 56 Gallon capacity Fuel Tank, Air, Tilt / Telescopic Steering Wheel, Cruise, AM/FM Radio, Power Locks and Powered passenger Window, Vinyl Highback Air Suspension Drivers and Passengers Seats, Projector Style Halogen Headlamps
Equipped with:On-Trux Roll-off Kit with Retractable Stinger (Galvanized Version) comes with Wireless 8 button controls, Paccar PX6 - 280 HP Engine, Allison Automatic Rugged Duty Transmission, Hydraulic Brakes - No Air Endorsement Required, 8K Rated Front Axle and Taperleaf Suspension, 13.5K Axle Rated at 11.5K, 13.5K Rated Taperleaf Rear Suspension, 9 7/8” x 1/4” Frame Rails, Removable tow hooks in front bumper, 45 Gallon capacity Fuel Tank, Air, Tilt Steering, Cruise, AM/FM Radio, Power Windows and Locks, Kenworth Aero Heated Mirrors, Integral Convex Heated Mirrors, High Back Cloth Air Cushion Seat with Passenger 2 man Cloth Bench, Projector Style Halogen Headlamps.
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Full Tilt Dominator II Mechanics body with sliding roof and barn doors, interior lights, front and rear work lights, beacon lights, back-up alarm, posi lock system, heavy duty tie down. 10,500 lb Max 6025 crane with lift to 26’ 7”, Hydraulic drive reciprocating air compressor 35 CFM @ 100 psi, Paccar PX8 300 HP Engine , Allison 3500 RDS 6 speed with PTO provision, Dana Spicer 14.6K Front axle, Dana Spicer 23K Rear axle with diff lock and Hendrickson HAS230L rear air suspension, Air brakes with ABS, 10 5/8” x 5/16 Frame rail with removable front tow hooks, 56 gallon fuel tank, Accuride painted white rims with Goodyear tires front and rear locations, Aerodynamic sloped front hood, Pinnacle cab interior equipped with Kenworth Driver Information Center, A/C, Tilt and telescopic steering wheel, air suspension gauge, am/fm/cd radio, daylight cab door design with peeper window, glove box, High back vinyl air suspension drivers seat and high back vinyl passenger battery box., Heated and polished stainless steel mirrors with convex mirrors, power LH and RH window lifts, Curved glass windshield with stainless steel exterior sun visor, Dual halogen head lamps, Full truck air kit for trailer, May not be exactly as shown.
15 Foot Midland SK1000 Gravel box with pintle plate and manual tarp - Full Truck kit for pup trailer, Paccar PX 8 350 HP Engine, Allison 3000 Rugged Duty Series 6 speed automatic transmission, Dana Spicer 14.6K Front axle with taperleaf spring suspension, Dana Spicer 40K Rear axles with HAS402 air suspension, forward and rear axle lock-up differential, Air brakes with ABS, 10 5/8” x 5/16” Frame rail, 100 gallon fuel tank, Accuride painted white rims with Bridgestone steer tires and Goodyear drive tires, Aerodynamic sloped front hood, Pinnacle Cab Interior equipped with Kenworth Driver Information Center, A/C, Cruise, Tilt and Telescopic steering wheel, power windows and door locks, am/fm Radio, daylite cab design doors with peeper window, glove box, air suspension and air application gauges, High back vinyl air cushion drivers seat and high back vinyl toolbox passenger seat, Polished stainless steel heated mirrors with convex mirrors, curved glass windshield with stainless steel exterior sun visor, Dual halogen head lamps, dual amber strobe lights centered over doors, circuit breakers style electrical system
with 62" FLAT TOP SLEEPER Crude Oil Hauler - Ready to Work!!Equipped with: Full Throttle T&E 4100 Pump - direct PTO driven, Stainless Steel 1/2 Fenders, Roda with Revguard, Cummins 550 HP ISX Engine, Fuller Super 18 Speed Manual Transmission, 13.2K Front Widetrack Axle with 13.2K Taperleaf Springs Suspension, 46K Dual Heavy Duty Dana Spicer Axles with Kenworth AG460 Air Suspension, Full Lock-up, 11R24.5" Tires and Aluminum Poilished Wheels, 10 3/4" x 3/8" Steel Frame, Removable Tow hooks, Dual Fuel tanks with Heavy Duty 7" Straps (230 Gallon Total Fuel Capacity), Metton Hood with Heavy Duty Hood Hinge Reinforcement, Air, Tilt / Telescopic Steering Column, Cruise, NavPlus (Includes Navigation, Diagnostics, communication and Entertainment), AM/FM, Satellite, USB, MP3, Bluetooth, Camera system Capabilities and 6 virtual Gauges, Kenworth Premium Diamond Interior Package, Kenworth Premium Highback Heated Leather Seats for Driver and Passenger, Cobra CB Radio, Power Door Locks and Windows, Dual Moto Heated Mirrors, Stainless Steel Sunvisor, Dual Halogen Extended Life Headlights, Air Jost Fifth Wheel. Please call for details.
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C20 PIPELINE NEWS December 2012
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PIPELINE NEWS December 2012 C21
2000 FORD F550Stk # C07269 c/w deck,
Picker Model 54542 Knuck-le, s/n 17763, 4x4
2004 KENWORTH T300Stk# 975282 c/w 14 ft. deck, RO stinger model ITC-85-2 crane safety certified until June/2013
2006 SWS stk# 090030 Fassi model F65A-23 knuckle picker, s/n 6131.
2009 KENWORTH T800Stk # 940109 Dual s.s. ex-haust, dual s.s. breathers, full lock up rears.
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Fax: 306-397-2697Box 238 Edam, SK
24 HOUR SERVICE24 HOUR SERVICE
Racken Enterprises.indd 1 8/21/08 1:00:06 PM
By Geoff Lee
Lloydminster – Ke-
nilworth Combustion is
heading into 2013 in a
larger facility in a new
location to meet the
demand for its pre-as-
sembled line of natural
draft process heater
modules.
Th e Canadian-
owned company manu-
factures process heater
modules for heating
tanks, dehydrators,
line heaters, treaters,
refridge units, free
water knockouts and
re-boilers.
Kenilworth is now
fully operational at its
new 7,200 sq.-ft. offi ce
and shop complex on
six acres of farmland
after moving a few
kilometres west of their
previous location in Is-
lay, Alberta in October.
“We needed to
get into a bigger facil-
ity. We had maxed out
our accommodations,”
said company president
Heine Westergaard,
who bought himself a
total 86 acres for family
and business use.
“We either needed
to build a new shop or
move into a place that
would get us some more
square footage.”
Th e new site
includes a 7,000 sq.-
ft. indoor cold storage
building for the compa-
ny’s modular designed
units and another shop
for electric and wiring
installations.
“We focus on the
natural draft market
from 35,000 BTU to
20 million BTU,” said
Westergaard.
“Th ere was a gap
in our product line.
We started at 100,000
BTU and then went
up. We’ve added a
new product which is
35,000 to 250,000 BTU
specifi cally geared for
the small utility heater
market.”
Kenilworth is
featuring the 35K BTU
unit at the Federation
of Alberta Gas Co-ops
2012 Trade Fair and
Conference in Edmon-
ton on Nov. 26-27.
“We’ve got several
of these units out in in-
dustry already. A lot of
the setups we put them
onto are solar power
so they are low power
consumption – they are
half an amp draw,” said
Westergaard.
“We also provide
the solar package for the
units. We are getting
more into the electri-
cal side of it. We just
thought it was time to
explore that avenue.”
Th e new shop also
allows Kenilworth to
expand its produc-
tion and inventory of
larger modular units
over 1 MMBTU with
the valve train pre-as-
sembled, mounted and
wired into its enclosure.
Page C22
Kenilworth celebrates new manufacturing base
Heine Westergaard, president of Kenilworth Combus on, steps out of his new 7,000 sq.- . cold storage facility for base process heater modules and ame arrestors. The company moved to a new six acre loca on a few kilometers west of their previous loca on in Islay, Alberta in October and November.
C22 PIPELINE NEWS December 2012
Page C21“Th e valve train will actually adapt to multiple sizes of fl ame arrestors,” said
Westergaard.
“In the one to fi ve million BTU range, we can utilize three diff erent fl ames
arrestors on one valve train. It makes it very eff ective for the end user.”
Th ere are also three diff erent burner sizes from 1.5-inch to six-inch diam-
eter for each process heater module.
“If a customer has a requirement that changes as far as heat goes, we can
either change the fl ame arrestor or change the burner, and they can utilize that
valve train,” said Westergaard.
“It gives us more options to utilize existing equipment.”
Th e Kenilworth process heater module is the only system on the market
that is CSA code compliant when it arrives on site pre-assembled and function
tested.
“We can pre-assemble up to 10 million BTU – wired, fi red and ready to
go,” said Westergaard who added the in-house manufacturing process can
mean a 30 per cent cost saving to the client.
“Because we do everything 100 per cent to code, when it comes for ap-
proval, the inspection process is very simple,” he said.
“We are able to assemble it in a controlled environment. We can eliminate
delays in the fi eld. You don’t have to worry about wind conditions or other
weather conditions as well as the travel to site.
“It’s all built the same. We’ve got a very good quality control program that
covers all aspects of fabrication, assembly and shipping.
“We also put it onto the test bench and we fi re the equipment with gas, so
it’s actually been in a process. It’s going out the door ready for use.”
Kenilworth is also an industry leader in the capture of fugitive BTEX
emissions created by glycol dehydrators in gas processing.
Th e company’s BTEX and VRU (vapour recovery unit) process heater
modules have been developed over the last 10 years and have proven to be ef-
fective at a fraction of the cost of other systems available.
What makes Kenilworth’s process heater modules stand out from the com-
petition is their patented fl ame scavenger low pressure burner that is also used
in their fl ue gas recirculation system and BTEX and VRU systems.
Page C23
Kenilworth Combus on keeps a selec on of di erent sizes of ame arrestors in its cold storage building. The company’s 1 MM to 5 MMBTU process heater modules can be equipped with mul ple sizes of ame arrestors. The company ships all of its modular units fully assembled and func on tested.
There is plenty of room to manufacture process heater modules in this new 7,200 sq. . shop and o ce. The building is heated with a process heater module.
An industry leader
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Page C22“We are able to take and utilize a low pressure wet fuel in our systems
without having issues of freezing off in the winter,” said Westergaard.
“We can take and run on multiple fuels with diff erent BTU values, so we
can take propane and natural gas in the same burner using the same orifi ce
with the same setting, without having to take and change anything.
“Th ere is nobody else in the market that can do that.”
Kenilworth has teamed up with Calgary-based Pronghorn Controls Ltd. to
sell, service and distribute their process heater module products to more clients
throughout Western Canada.
“We have done a lot of work with Pronghorn Controls. Th ey actually do a
lot of marketing and cover the southern Alberta area for us,” said Westergaard.
“It’s a good way for us to expand our business but focus on the manufac-
turing side of it, and have them to do the service and the installation.
“We are still active in service and installation. We have service units roll
out of here every day that do preventative maintenance, service, installation and
commissioning.”
Kenilworth, which has new products coming on line, has more than 50
gasfi tters, electricians and instrument mechanics trained as burner service tech-
nicians across Western Canada.
“By June 2013 we will have another line of products that will be pretty
interesting,” said Westergaard who doesn’t want to tip the competition yet with
details.
Westergaard added he is proud to be manufacturing in Canada and said he
would like to think that being a Canadian manufacturer carries some weight
with customers.
“Th ere’s quality behind a Canadian-made product. We’ve seen there are
Westergaard, houses an inventory of base process heater modules up to 1 MMBTU in a new 7,000 sq.- . cold storage building at his new loca on. The base unit is built from a modular design with the valve train pre-assembled, mounted and wired into its enclosure.
markets in other places that are opening up to us.” he said.
“I can say that I am a very proud Canadian. I take great pride in Canada
and the province.”
C24 PIPELINE NEWS December 2012
SEWEURODRIVE
www.kelro.com
Commercial Air ConditioningHeating and Refrigeration24 Hours Sales and Service
Safety Certified780-875-5000 Lloydminster AB
By Geoff LeeVermilion – Leading Manufacturing Group
Inc., founded by Lee Gottschlich in 2010 with a
head offi ce in Nisku, a sales offi ce in Calgary, and
an oilfi eld tank manufacturing facility in Vermilion
and will be expanding to Battleford.
LMG is also completing a new 5,000 sq.-ft.
paint and coating facility at its Vermilion plant
where Gottschlich provided details of his growth
plans in Alberta and Saskatchewan during an Oct.
26 interview.
“We have the Battleford property. It’s prepped
and ready for the fi nal documentation from the
town before we can take title to the property,” said
Gottschlich.
If construction is on target, the new 25,000 sq.-
ft. facility could be ready by the spring of 2013 to
manufacture the same 1,000 to 3,500 barrel oilfi eld
storage tanks that LMG fabricates in Vermilion.
Th e new 20 acre site is located at 18th Street
and 6th Avenue in Battleford and involved a proper-
ty swap requested by the town to move the original
location further away from residential development.
Th e land issue set back plans for a September
2012 opening at the original site, but Gottschlich
said the new location is good and will provide work
for up to 50 employees at start-up.
“Th e site is serviced, but we are doing the de-
veloping ourselves,” he said.
Gottschlich said a few LMG employees in
Vermilion who call Battleford home may relocate to
the area when the new plant is operational.
Th e company is actively recruiting for welders,
foamers, labourers, crane operators and other posi-
tions for the Battleford start-up.
Gottschlich said the Battleford tank manufac-
turing facility will put LMG closer to its provincial
customers north and south of Highway 16 and cut
costs.
“It will be closer to the Saskatchewan market.
Th ese large tanks are expensive to truck so trans-
portation will be much more competitive,” he said.
Vermilion was chosen for the site of LMG’s
fi rst tank manufacturing plant on the basis of its
proximity to highways 16 and 41. Page C25
LMG to expand to Battleford in 2013
Humberto Valdez, le , and Cory Pomerleau hook a plate of steel to an overhead crane for unloading at the LMG plant in Vermilion.
PIPELINE NEWS December 2012 C25
Page C24
“We ship to Cold
Lake, Bonnyville,
Wainwright along
Highway 41 which is
the main corridor,” said
Gottschlich.
“Th e crossroads
of Highway 41 and
Highway 16 to me is
one of the biggest assets
we have with the plant
here.
“It doesn’t matter
whether we are in Ed-
monton or Battleford,
our steel comes down
Highway 16 – whether
it comes from Regina
or from Vancouver or
Portland.”
LMG precuts its
steel plate in Nisku
where they opened a
prep shop in January
equipped with an 11.5
ft. by 55 ft. high defi ni-
tion plasma table.
At the Vermilion
plant, the steel tank
pieces are put together
with a combination of
stick, MIG and sub-
merged arc welding in
an horizontal assembly
process.
“Everything is
basically in the down
fl at position. Nobody
is working in the air
or off scaff olds,” said
Gottschlich.
“It’s safer and we
can use the sub arc pro-
cess which is an excel-
lent process for weld-
ing the plate. We can
make tanks 23.5 feet
in diameter and 40 feet
high. We are going to
be going to 48 ft. high
with our new paint and
coating facility.”
Th e 5,000 sq.-ft.
paint and coating addi-
tion is 65-ft. in height
or “50 feet under the
hook” in shop talk with
a 20-ton crane capacity.
Th e new wing can
paint, coat and insulate
up to three 2,500 bar-
rel tanks at a time and
will be equipped with
a $200,000 blast media
recovery system capable
of recovering shop dust.
“We are just in the
fi nal stages of complet-
ing our new sandblast-
ing and paint facility
which will be in opera-
tion in December,” said
Gottschlich .
“We are just fi nish-
ing the closing in next
week (Oct. 29) and then
we will be doing the
inside work.
“Building trades are
hard to get. I have used
the urethane foam panel
for construction instead
of the typical foil back
insulation.
“It’s a much better
insulation factor. Th at
means it’s lined all the
way up to the roof.”
LMG has also
purchased a 10 acre
property east of the tank
fabrication plant for
additional storage as the
demand for their prod-
ucts continues to grow.
“Th e volume has
continually grown. It’s
all a function of what
the manpower load is
and the type of tank,”
said Gottschlich.
“It takes a lot more
man-hours to build a
3,000 barrel tank than
it does to build a 1,000
barrel tank.
“As I always say, a
customer will forgive
you for being late, but
not for a bad job. If you
build a quality prod-
uct, there is defi nitely
demand for it.
“Th e demand is
there. In the last year,
we doubled in manpow-
er. We probably went
from 50 to well over
100 employees.”
A lot of new hires
are taking their ap-
prenticeship training at
the Vermilion campus
of Lakeland College
where a career fair
was held the same day
Gottschlich provided
his company update.
“We have quite a
few people come from
Lakeland and our ap-
prentices all go to Lake-
land,” said Gottschlich.
“We’ve got three
apprentices that should
be back next week from
Lakeland (after) com-
pleting their second
year.
Page C26
LMG manufactures 1,000 barrel to 3,000 barrel oil- eld storage tanks at its 45,000 sq.- . Vermilion plant
where they also fabricate frac tanks. The company plans to begin construc on in 2012 on a new 25,000 sq.- . tank fabrica on plant in Ba leford that will em-ploy about 50 workers at startup next spring.
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Page C25“We use the foreign worker program where we can, so we’ve got people
from Mexico and various countries. It’s always a task to hire people.”
Th e most popular product LMG workers build in Vermilion is the 1,000
barrel tank for heavy oil well sites. Th e plant also makes a lot of 3,500 barrel
tanks for batteries or water disposal facilities.
LMG has also found a new growth market with the manufacture of frac
tanks for use in hydraulic fracking operating in the Bakken oil play in south-
east Saskatchewan and the Montney shale gas play in British Columbia.
“Th ey are a movable tank that is 12 feet high and 105 to 165 feet in
diameter depending on what confi guration they are,” said Gottschlich. “Th ey
basically are the equivalent of 16,000 barrels.
“We make the assembly pieces so they can go to the site and they just hook
together. Th ey get a rubber bladder that goes inside that seals them and then
they are fi lled with fresh water.”
As for what it means to be a Canadian owned manufacturing company,
Gottschlich said this: “We have some patriotism and we get support because
we are local and Canadian.”
He went on to add that Vermilion has been very accommodating to the
company since its inception.
“Th e community is pleased with the number of people we have brought in
and have moved here,” he said.
“A lot of people have moved here. It’s a great town to live in and work out
of.”
Gottschlich also likes to spend as a much time in the shop as he can when-
ever he is in Vermilion.
“I enjoy the area, I enjoy the work, I enjoy the plant and I enjoy the peo-
ple,” he said.
“When I am here, I am out there half a dozen times a day. I am not a sit
behind the offi ce type guy. I have good sales people in Calgary and I’ve got very
good QC and supervision here.
“I used to be in the shop, so I miss the shop.”
The blue pieces in the foreground of this photo are the main parts of a new blast media recovery system to be installed in the new paint and coa ng facility under construc on at the LMG plant in Vermilion.
New growth in frac tanks
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Lloydminster – Target Safety Services celebrated six years of growth and
success as a safety solutions provider on Oct. 1 with more good news ahead in
2013.
Th e Lloydminster-based company has the contract to provide in excess of
200 safety personnel for spring and fall turnarounds in 2013 at the Lloydmin-
ster Husky Refi nery and Upgrader.
Th e company also expects to fi nally begin construction on a new building
in Lloydminster next spring and will gear up for more client turnarounds in
2013 from its branch locations in Red Deer and Bonnyville.
Target Safety, which was founded by Clint McKinlay, Lloydminster gen-
eral manager, and vice-president Craig Dore, company president in Red Deer,
has been experiencing a strong year in 2012.
“It’s been a good year so far. It all comes down to people. You can have the
best equipment and the best processes, but if the people working for you don’t
share your vision or your inspiration, it’s all for naught,” said McKinlay.
“You have to have the people to act out the company vision.
“Craig and I have fi ve year plans. We will eff ectively be in year two of our
second fi ve-year plan in 2013 and continue growth.
“Our vision is to inspire our people to help us become the most successful
safety company in Canada, so we have pretty lofty dreams,” added McKinlay.
“Th ose are the marching orders and every day, we will get a little closer to
that goal.”
Target Safety has grown to deliver safety training, technical rescue, in-
dustrial or health-related services, safety equipment and safety management
systems led by its core of safety veterans.
“Our people are by and large the most important aspect of what we do on
a daily basis. We’ve managed to put together a very good, experienced manage-
ment team,” said McKinlay.
“Recruiting has been a primary objective of ours throughout the years to
make sure we are fi nding the right people. We are very fortunate in the staff
that we’ve collectively developed together.”
McKinlay and Dore launched Target Safety in Lloydminster then quickly
opened a second branch in Red Deer.
Th e Red Deer location has expanded to include a classroom and a 40-ft.
high angle and confi ned space rescue simulation tower called Goliath which is
used for staff training and certifi cation.
Red Deer is the site for a quality assurance and quality control program for
its extensive inventory and maintenance of safety equipment.
In 2008, the company opened a small offi ce in Bonnyville before relocating
to a larger building in 2011 where they continue to grow – according to plans.
“Th ere have been some curve balls that have been thrown at us that were
out of our control in terms of the world economy crash and the royalty tax hike
for oil and gas producers, but we managed to work past those and continue to
grow,” said McKinlay.
Th e biggest growth area for the company is its industrial safety services di-
vision thanks to a big break in 2010 when it landed its fi rst Husky turnaround
safety contract.
“Th at was a big challenge. Th e company was growing at the time of secur-
ing that contract,” said McKinlay.
“It was a big step for us to be able to successfully execute it. We are here to
say we did it and we look forward to doing it again.
“We have the Husky Refi nery in April, and then the Upgrader goes down
in September, and that will be in excess of 200 safety persons for us for about
45 days.
Page C28
Target Safety Services general manager Clint McKinlay says 2013 is shaping up to be one of the busiest years yet for the company with scheduled turnarounds for clients served by their loca ons in Lloydminster, Red Deer and Bonnyville. There is also a planned spring construc on start on a new building in Lloydminster.
Target Safety to start new building in spring
C28 PIPELINE NEWS December 2012
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Page C27“We executed it in 2010 and it
will be roughly the same size in 2013.
It’s defi nitely one of those jobs that
we look forward to.”
Target Safety delivers everything
from turnarounds, safety watch super-
vision, spark watches, confi ned space
entries, emergency response teams to
safety advisers for drilling, comple-
tions and earth works through its
industrial division.
“We’ve really branched out in the
terms of the level of service that we
provide,” said McKinlay.
Another upcoming milestone for
Lloydminster operations will be next
spring’s offi cial sod turning on a new
16,000 sq.-ft. facility to be located in
the Robinson Industrial Park.
“We have outgrown our offi ces.
Th e human resources that we have
between administration, operation
and management – the building we
are in has worked quite well for us for
the previous fi ve years – but we are at
the point where we need more room,”
explained McKinlay.
“We have the extra equipment
around, we have more people. A big-
ger, newer facility is going to set the
bar for our company. Lloydminster is
our head offi ce.
“It’s the only area that we are in
where we are not in a new building, so
we’re going to fi x that.”
McKinlay said the drafting and
architectural plans for the new build-
ing were almost complete by Oct.
31 when he provided an update of
company news.
Page C29
Target Safety Services marked its sixth year of opera ons on Oct. 1. The Lloydminster-based company is expec ng a spring construc on start on its new 16,000 sq.- . build-ing in Lloydminster. A new facility is needed to keep pace with the company’s growth.
"we have outgrown our of ces"
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Wishing Everyone A Very Merry Christmas, and a Happy and Safe Holiday Season
PIPELINE NEWS December 2012 C29
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Page C28
Target Safety has a November 2013 move-in
date that is dependent on weather and the availabil-
ity of construction trades.
“It’s been a work in progress. Moving to a new
location is never easy, especially when you are build-
ing,” said McKinlay.
“It’s been a challenge to do that at the same
time as growing the business, but at the same time
it’s a very necessary part of that whole package. We
are looking forward to it.”
Meanwhile, McKinlay has his plate full, staff -
ing up safety teams for winter oilfi eld construction
projects and routine seasonal safety projects.
“We are actually involved in several construc-
tion projects where we will have national construc-
tion safety offi cers who will be working on projects
advising from a safety perspective and emergency
response work we have ongoing year round on other
construction projects,” he said.
“In the summer months, we ramp up for turn-
arounds, and in the winter, we work service rigs, etc
and keep our people working year round.”
Target Safety currently has about 145 active
employees as well as in-house recruiting and train-
ing for the seasonal turnaround crews.
“With our growth, our training department –
their primary function is to train our people. We
will be recruiting in excess of 200 more people next
year,” said McKinlay.
“Our training group’s primary focus is making
sure we have the best trained safety personnel the
industry has to off er.
“Some of the hires will be seasonal and project
specifi c, but a lot of those positions will be full-time
work. Unfortunately, a lot of our big volume work is
seasonal.
“It’s cyclical, but there is some predictability to
it. We just have to manage that.”
Looking back over the years, McKinlay said
safety and the perception of safety have come a long
way from just being a required position to fi ll to be-
ing a 24/7 mode of operating in the fi eld.
“Th e whole culture and peoples’ vision of what
safety does – a lot of people now see the benefi t of
having safety,” he said.
“In the old days, people would have a safety
person because they had to, and now they are peo-
ple who won’t go to work without a safety person.
Th ey are starting to see the additional benefi ts.
“What we are doing is helping them get home
to their families each day the way they went to
work, with all their fi ngers and their toes. Th eir
personal lives are benefi ting because of it.”
Michelle Wallace, le , an environmental administrator and Lauren Case, a business development manager from North Shore Environmental Consultants, spoke with students about job opportuni es with their com-pany at the Vermilion campus of Lakeland College. Nearly 50 employers were represented during a career fair on Oct. 26.
Photo by Geo Lee
Open house and career fair at Lakeland College in Vermilion
Caltech Surveys is fully equipped to take on your well site and pipeline projects, large or small, anywhere in Alberta or Saskatchewan. You can count on us to respond quickly and get your projects completed on time and on budget. From project planning and digital mapping to eld scouting, surveying and plan preparation, Caltech’s commitment to quality, service and value continues...
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C30 PIPELINE NEWS December 2012
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The Right Choice
For Oilfield
Waste Bin
Rentals
Lloydminster – In
the coming months, you
can expect to see a lot
more heavy oil tanks
equipped with a CSC
200 combustion safety
control from Canadian-
owned ACL Manu-
facturing Inc. based in
Sundre, Alberta.
Th e CSC 200 is the
latest combustion con-
trol on the market from
ACL Manufacturing
Inc., a company that de-
signs and manufactures
natural draft burners,
combustion controls and
ignition systems for the
oil and gas industry.
Th e CSC 200
provides burner ignition
and fl ame fail as well
as monitoring of two
thermocouple inputs
which can be utilized
for temperature control
in process applications
such as tanks and line
heaters.
Th e privately-
owned Canadian com-
pany brought the CSC
200 combustion control
to the Lloydminster
Heavy Oil Show in
September where it got
a warm reception.
General manager
Andrew Pearce was on
hand at the company’s
booth to promote the
product that is designed
to be used in conjunc-
tion with an ACL
combustion module for
a complete safety com-
bustion device.
“Th is is appli-
cable to heavy oil tanks
mostly. Every heavy oil
tank has a burner in it
to get it up to 70 or 80
degrees Celsius so they
can truck it around,”
said Pearce.
“It lights and main-
tains the burners and
also – with temperature
controls – it shuts them
off when they get to
temperature. Th ey can
run pilotless or with a
constant pilot. It saves
on fuel gas.
“Also, it can run it
with lower power con-
sumption with solenoid
drivers – so it saves your
power needs for solar
applications.
“Combined with a
high effi ciency burner, it
puts a lot more heat into
the process and it can
reduce your fuel costs
as well, but also puts a
lot more heat into the
process.”
Th e CSC 200 is
designed with an easy
on-off switch and is
enclosed in a corrosive
resistant and weather-
proof body.
Th e product is
also applicable for line
heaters, treaters and any
natural draft burn-
ing heated equipment
where accurate tem-
perature monitoring of
control is required.
“CNRL in
Bonnyville is using a
lot of them now,” said
Pearce.
“We are just talking
with some guys here,
and they are working
so well they don’t get
any callbacks, and the
operators love them for
the simplicity and the
way they work.
“Th is particular
control has been out a
few months now, so this
is our latest control that
we have.
“We are also adding
more Modbus com-
munications onto it.
We are working on new
controllers all the time
too.”
ACL was estab-
lished in 1991 by Chris
Aldrich and is recog-
nized as an innovator in
providing safe and reli-
able control equipment
for industrial heaters,
incinerators and fl are
ignition systems.
“We are in Sundre,
and we are also pushing
into the U.S. We are in
Billings, Montana, and
have a lot of customers
down in Texas as well.”
ACL markets its
products globally and
sees a lot of growth
potential for its latest
CSC 200 combustion
control in the Lloyd-
minster to Bonnyville
heavy oil corridor.
“Th ere is a still a
lot of growth potential
– of course, there a lot
of diff erent companies
up here we’re trying to
meet,” said Pearce.
“Th ey’re drilling
lots of wells. Th ere are
a lot of tanks going
in and they all have
burners in them. We
are looking forward
to working with more
companies up here.”
Market warms to ACL combustion control
Andrew Pearce, general manager of ACL Manufacturing Inc., le , speaks with a cus-tomer at the Lloydminster Heavy Oil Show about the features and bene ts of the com-pany’s newest CSC 200 combus on control.
PIPELINE NEWS December 2012 C31
516 Nesbitt Drive, Estevan • 634-2631(Behind Power Dodge)
Canada's leading distributor of industrial, eet and safety products.
Proud to provide selection, quality and
excellence to our customers.
Aspen Custom Trailers
6017-84th Street S.E.
Calgary, AB T2C 4S1
[T] 403 236 2244
[F] 403 236 8829
[C] 403 813 6319[Toll Free] 877 236 2244
Lance WotherspoonRegional Sales Manager
BIG D’S LEASE SERVICE
P.O. Box 544
Stoughton, Sask. S0G 4T0
(306) 457-7033(306) 457-7673
BackhoeMowingSnow Removal
TowingFencing
Road GraderGravel Supplies & Hauling
LECLAIRTRANSPORT
Lyle LeclairCell: 306-421-7060
General Oilfi eld HaulingCordell JanssenCordell Janssen
District ManagerDistrict ManagerDownholeDownhole
93 Panteluk Street, Kensington Avenue N93 Panteluk Street, Kensington Avenue NEstevan, SaskatchewanEstevan, Saskatchewan
PHONE:PHONE: 306-634-8828 • 306-634-8828 • FAX:FAX: 306-634-7747 [email protected] • www.nov.com
JUSTIN WAPPEL - Division Manager
401 Hwy. #4 S. Biggar, SaskatchewanPO Box 879 S0K 0M0Ph (306) 948-5262 Fax (306) 948-5263Cell (306) 441-4402 Toll Free 1-800-746-6646Email: [email protected]
Lloyd Lavigne • Kirk ClarksonOwners/Managers
6506 - 50th AvenueLloydminster, AB
Phone: (780) 875-6880
5315 - 37th StreetProvost, AB T0B 3S0
Phone: (780) 753-6449
Fax: (780) 875-7076
24 Hour ServiceSpecializing in Industrial & Oilfield Motors
Your best choice for accommodations
in Carlyle, Sk.• Full kitchen and upscale extended stay
• Complimentary continental hot breakfast• Free high speed internet
• Meeting roomReservations: 306-453-2686
RICK CORMIERManager
Box 609 Bus: (306) 634-8084Carlyle, SK Cell: (306) 577-8833S0C 0R0 Fax: (306) 453-6075www.truetorq.ca [email protected]
RESOURCE Gu de
Contact your Pipeline News Sales rep. to get
28,000 circulation on your career ad!
Speci c Targeting
C32 PIPELINE NEWS December 2012
Sun Country Well Servicing Inc. is currently seeking a:
CA
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de
PIPELINE NEWS December 2012 C33
Oilfield Construction Limited
NOW
COME JOIN OUR TEAM! We’re hiring for various
projects throughout
Southern Saskatchewan
Over 50 years strong, Arnett & Burgess
Oilfi eld Construction Limited safely
provides quality pipeline construction,
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related construction services to the
energy industry.
Compensation:Competitive wages
Overtime
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For more details and other career opportunities please visit:www.abpipeliners.com
For Inquiries please call: 780.384.4050
Please submit your resume to :email: [email protected] • Fax:403.265.0922
• CONSTRUCTION MANAGER- Candidates must have previous leadership/managerial experience within the Pipeline Construction industry (mainly underground lines max 16”).This position’s home base is in Regina.
• FIELD SAFETY ADVISOR- The ideal candidate will have a CSO designation. This position will oversee pipeline construction projects in southern sk with a home base in Regina
• PIPELINE CONSTRUCTION LABOURERS
• FOREMEN
• HEAVY EQUIPMENT OPERATORS-Employee & Owner Operators with Pipeline Construction Experience
All positions require previous experience in Pipeline Construction.
Previous experience on Pipeline Integrity projects is an asset.
JOB OPPORTUNITIES:SURVEY PARTY CHIEF & SURVEY ASSISTANT
Caltech Surveys Ltd. has openings for an experienced Survey Party Chief and a Survey Assistant, based in our Unity office (working in the Kindersley, Unity, Battleford, and Lloydminster area).
Caltech Surveys offers competitive wages, excellent benefits and a company matched RSP plan.
Survey Party Chief - Ideal candidates will have a Diploma in Geomatics Technology, or equivalent; experience with RTK GPS, total stations, survey data collection and buried facility locating; survey experience in legal surveys for the petroleum industry; applicable safety certifications and excellent communication skills.
Survey Assistants – Candidates must have a valid drivers’ license. Preference will be given to those with experience & safety certifications, but neither is required.
Apply in confidence to: Dawn Boxall, Administration Manager [email protected]
We require the following:
Matrix Well Servicing
CAREER Gu de
C34 PIPELINE NEWS December 2012
THE FOLLOWING POSITIONS ARE AVAILABLE IMMEDIATELY
Interested applicants can fax to: 306-634-4258 or
email: [email protected]
MECHANICSome of the many
benefits to consider when applying for
a position at Bert Baxter Transport
in Estevan:• Full time, permanent
employment
• Full benefits packages available
• Clean, safe work environment
SERVICE TECHNICIAN
PIPELINE NEWS December 2012 C35
C36 PIPELINE NEWS December 2012