Pipeline News October 2012

PIPELINE NEWSSaskatchewan’s Petroleum Monthly Canada Post Publication No. 40069240

October 2012 FREE Volume 5 Issue 5

This Oil Boss pumpjack by Pla num Pumpjack Services Corp., based in Calgary, provided the iconic image for the 2012 Lloydminster Heavy Oil Show Sept. 12-13. Photo by Geo Lee

LHOS LHOS CoverageCoverage

You think You think your job is your job is

good?good?Check out ourCheck out our

top jobs!top jobs!

Enbridge'sBakken

ExpansionA10

WCSSRuns SpillExcerise

B25

Heavy OilShow

BanquetC1

SECTION A4 Breathing room for coal- red plants

5 Feds willing to listen

6 Editorial: pipeline capacity key for new markets

8 Long Creek Railroad loads rst car

12 Vantage Pipeline kicks o

16 Stampede Drilling building rst rigs

INSIDE

SECTION C1 Lloydminster Heavy Oil Show banquet

3 Kindersley seeks relief from growth pains

7 Oil spill threat drives WCSS Training

8 Oil ow Solu ons

20 Oil show photo spread

24 Jet pump ideal for high sand CHOPS wells

SECTION B1 Entrepreneurship in the Swayze blood

4 New motel made of modular units

7 Anatomy of a Hwy 63 roll over

11 Pipelining since 1953

25 WCSS runs spill excerise

28 Dean of trades

Stacey [email protected]

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A2 PIPELINE NEWS October 2012

PIPELINE NEWS October 2012 A3

TOP NEWS

Story and photos by Geoff LeePipeline News

Lloydminster – Larry Doke, MLA for Cut Knife-Turtleford, set himself

up as a soothsayer with his prediction of a strong turnout at the opening night

banquet of the 2012 Lloydminster Heavy Oil Show.

Approximately 6,000 visitors attended this year show according to event

chair Mike McIntosh who said that was in line with what the committee was

expecting.

“It was good. I haven’t read the surveys yet,” he said on Sept. 19.

McIntosh noted that were 214 exhibitors and 368 booths at the Lloydmin-

ster Exhibition Grounds Sept. 12-13 to make Doke’s foretelling words come

true.

“I commend the organizers in their eff orts to make this show bigger and

better every year,” Doke said before a sold-out banquet audience at the Prairie

Room on Sept. 11.

“Lloydminster is a perfect venue to host this oil show aptly titled, World

Supply and Demand, Heavy Oil’s Future.

“Th is event is real plus for the community of Lloydminster with thousands

of visitors of coming through the doors, delegates from dozens of countries,

and more than 200 exhibits.

“Th e Lloydminster Heavy Oil Show is good for this city and is a great way

to grow our oil and gas industry in Saskatchewan.”

Th e oil show is held every second year and is organized by Lloydminster

Oilfi eld Technical Society volunteers.

For the fi rst time in its history, the annual Lloydminster Heavy Oil Tech-

nical Symposium was held in conjunction with the heavy oil show.

Th at trend is expected to continue in 2014 when the next heavy oil show

comes around.

“It went very well. It’s the fi rst time we’ve been able to partner the Lloy-

dminster Heavy Oil Technical Symposium with the Lloydminster Heavy Oil

Show,” said Mark Bacon, new chair of the Lloydminster chapter of the Society

of Petroleum Engineers (SPE) that organizes the symposium.

“We believe we will keep doing that in the future. It worked out very well.

We were quite happy with the outcome.

Th e symposium featured two presentations per day in the Prairie Room

and attracted a lot of oil show visitors in addition to petroleum engineers.

“Th e fi rst day we averaged around 80 people for the two speakers, which is

very good. Th e second day was more in the area of just under 50,” said Bacon.

“Th e reason why we only had four speakers is because the Lloydminster

Heavy Oil show had already arranged luncheon speakers, so we didn’t want to

overburden people.”

Luncheon presentations were made by Husky Energy’s Paul Zorgdrager,

vice-president Lloydminster production operations for heavy oil and by Tim

McMillan, Saskatchewan minister responsible for Energy and Resources.

Th e symposium was the fi rst event Bacon got to chair following a succes-

sion ceremony at the banquet to honour the contributions of outgoing SPE

chair Mike McInstoh.

“It was very good. It was a good ceremony turning things over,” said Bacon.

“I think Mike was surprised when he got his award. We are going to keep

him on as past chair. He’s the man with all the experience, so he’s going to help

steer it.”

Bacon also succeeded in his appeal for new members to join the SPE by

signing up two professions during the symposium.

Th e Lloydminster SPE will resume is fall luncheon presentations at the

Best Western Inn on Oct. 18.

Approximately 6,000 visitors a ended the 2012 Lloydminster Heavy Oil Show held at the Lloydminster Exhibi on Grounds Sept. 12-13 under warm and sunny skies. The event a racted 214 exhibitors and 368 indoor and outdoor booths.

Oil show a success with 6,000 attending


BRIEFS

Briefs courtesy Nickle’s Daily Oil Bulletin

Quattro Exploration and

Production Ltd. has been

awarded a special exploration

permit in south-central Sas-

katchewan totalling 44,732

hectares (110,760 acres).

Th e award of these lands

provides the company a long-

term position in the north-

west region of the Williston

Basin, where Quattro’s previ-

ous exploration eff orts have

provided strong indications

of a number of prospective

geological horizons, namely

oil within the Bakken and

Birdbear and gas within the

Milk River and Duperow.

Th e company is pleased

with the issuance of the ex-

ploration permit that has

been awarded to the com-

pany by the Saskatchewan

government whereby the

company’s continued invest-

ment in the region will allow

it to advance what it believes

to be potentially more than

two material regional addi-

tions to the current oil and

gas exploration and resource

plays under development

within Saskatchewan.

“Th e award of this explo-

ration permit brings Quat-

tro’s exploration lands to over

120,000 acres in Saskatch-

ewan and provides the com-

pany a number of long-term

opportunities,” Leonard Van

Betuw, president of the com-

pany, said in a news release.

“Th e lands are very comple-

mentary to our current 100

per cent owned oil and gas

production and facilities at

Rangeview, Saskatchewan,

which is 200 kilometres to

the west of this exciting ex-

ploration permit.”

Quattro increases

Call for a quotationtoday!

CO

RN

ER

CA

ST O

FF G

RID

SO

LUTI

ON

S.

By Brian Zinchuk Pipeline News

Saskatoon, Regina – An announcement on Sept. 5 by federal

Environment Minister Peter Kent in Saskatoon has provided

some breathing room for SaskPower and its fl eet of three coal-

fi red generating stations.

Guy Bruce, vice-president of planning, environmental and

regulatory aff airs with SaskPower, told Pipeline News it goes

back to an announcement of new regulations a year ago which

called for all coal-fi red generating units to be brought up to

certain emissions standards or shut down by the end of 45 years

in operation. Th at end-of-life requirement has since been modi-

fi ed to 50 years.

Th e new allowable emissions level will be 420 tonnes of CO2

per gigawatt-hour, as opposed to the previously announced 375

t/GWh. Th at standard is the level of emissions intensity from a

natural gas combined cycle generating plant. To reach that level

from coal plants, carbon capture technology, like that which is

being implemented at Boundary Dam Power Station’s Unit 3

(BD3), is necessary.

“Th e regulations give us more time to make revisions,”

Bruce sadi. “Th e kind of changes we have to make will be in the

same realm as Boundary Dam’s carbon capture project.

“Our intention is to evaluate the performance of that proj-

ect and ensure it proves out.”

Th ey will look at deploying similar technology to the other

units.

Th e deadline was looming. Unit 4 will be 45-years-old in

2014, Unit 5 will be that age in 2018, and Unit 6 in 2022. Th e

carbon capture project is expected to begin operation in early

2014.

“More time helps,” Bruce said.

Besides the BD3 project, SaskPower is also working on a

carbon capture test facilty at Shand Power Station. Th ere are

also similar projects in the industry, he noted.

“Over time, we think the cost will come down,” Bruce said.

While the federal government bent from its original plan

on emissions requirements, Bruce noted, “We didn’t get the full

fl eet fl exibility we were asking for.”

Th at would have allowed averaging emissions between all

their power plant units.

Boundary Dam, Poplar River and Shand Power Stations

are the largest point sources of CO2 emissions in the province.

“It is important to mention they are relatively large sources of

emission in the Saskatchewan context, but they are small in the

worldwide context,” he said.

SaskPower is the leader in utility-scale carbon capture with

its BD3 project. Th e company hopes it will be able to monetize

the knowledge it gains from the project.

“We’ve been working together with other companies using

coal,” Bruce said. Coal is key in Alberta and Nova Scotia, but

Ontario is in the process of phasing out coal altogether.

“For Saskatchewan, there’s recognition within SaskPower

and our government we have a valuable resource here and we

need to use it,” Bruce said in reference to the coal utilized in

power generation.

In the meantime, Unit 4 will have some minor work done

in 2014 to extend its life another seven years. Monitoring of

Unit 3’s capture project will take place for several years, with a

fi nal decision on what to do with Unit 4 fi ve or six years down

the road.

Bruce noted that Units 4 and 5, which are similar sized,

will likely be dealt with at the same time. “We might look at a

combined thing,” he said, noting the importance of economies

of scale.

There’s some breathing room for coal- red plants

New regula ons mean draglines like this one will be working for quite a while yet.


BRIEFS

Briefs courtesy Nickle’s Daily Oil Bulletin

Rig countAfter a summer that was

substantially slower than

2011, the Saskatchewan

drilling rig fl eet picked up

steam in September, crack-

ing the 90 active rig num-

ber at the mid-point of the

month, according to RigLo-

cator.ca.

Th at’s the highest the ac-

tive rig count has been since

spring breakup. Th e prov-

ince hit an record of 122 ac-

tive drilling rigs working in

August 2011. It consistently

saw roughly twenty more

active rigs throughout the

fall of 2011 and winter of

2012 compared to the year

previous. But after breakup,

numbers were substantially

lower than the previous year,

with approximately 30 fewer

active rigs throughout the

summer months. Th at put

the pace of drilling more on

par with 2010.

Th e 90 active rigs ac-

counted for 68 per cent of

the drilling fl eet. A further

42 rigs were still not at work

as of Sept. 14.

Saskatchewan’s rising

rig count put it nearly on

par with British Columbia,

which had 69 per cent of its

rigs working (38 out of 55).

Manitoba’s activity level fell

substantially since early Au-

gust, with only 11 of its 22

rigs working, giving it a 50

per cent activity level.

Alberta’s pace has been

consistent with its 2010 lev-

els, but far below its 2011

pace. Over the course of the

summer, approximately 100

fewer rigs were working in

the province compared to

the previous year. Th at made

for an activity level of just

45 per cent, with 258 of 576

rigs working.

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www.samstrucking.ca

By Brian Zinchuk

Regina – Dr. Malcolm Wilson, CEO of the Petroleum

Technology Research Centre and one of the world’s leading

authorities on carbon cap-

ture and storage, said the

federal government’s Sept. 5

announcement of coal-fi red

power plant regulations was a

“good omen.”

On that date, federal

Environment Minister Peter

Kent gave older coal-fi red

power plants a fi ve year re-

prieve, letting them work for

50 instead of 45 years before

either being shut down or

required to meet stringent

emissions regulations that

would necessitate carbon

capture facilities.

Th ose emissions require-

ments were also slightly re-

laxed, from the previously

announced 375 tonnes of

CO2 per gigawatt-hour to

420 t/GWh.

“I think the federal gov-

ernment’s willingness to lis-

ten to what the utilities are

saying is a good omen as the

government looks to other

sectors of the energy econo-

my,” Wilson said.

Time is the critical

thing.

“SaskPower has the time

to evaluate what happens at

Boundary Dam Unit 3 before

deciding to build Units 4 and

5. You need that time to evaluate what’s happening at the com-

mercial level.”

Th e PTRC is a key component of that project. It is cur-

rently working on its Aquistore project a few kilometres west of

the Boundary Dam Power

Station. Its purpose is to re-

ceive a large portion of the

CO2 captured from BD3

and inject it into deep sa-

line acquifers. Th e ultimate

intention is for SaskPower

to sell its captured CO2 for

enhanced oil recovery, but

Aquistore provides another

option as well as cutting-

edge research.

Th ere’s no direct im-

pact on the PTRC from

the environment minister’s

announcement. Wilson

said, “At this point, we’re

not involved in capture,

but in storage.

“As the federal govern-

ment moves forward, look-

ing at refi neries, upgraders,

oilsands and heavy oil, then

you’ll see climate change

regulation impacting the

oil and gas sector.”

Part of PTRC’s man-

date is to assist the industry.

It has long been involved

as the research arm in the

Weyburn-Midale carbon

dioxide storage project.

“I think our research-

ers are top-notch,” he said.

Willingness to listen on the part of the feds: PTRC

Aquistore now deepest well in SaskatchewanTh e carbon dioxide injection well

being used for the Aquistore project

just east of the Boundary Dam Power

Station has a new distinction – the

deepest well in the province.

Its geography and geology were

key in that regard. Th e Williston Basin

gets deeper the closer you get to the

U.S. border, and Aquistore is roughly

six miles north of the 49th parallel.

Dr. Malcolm Wilson, CEO of the

Petroleum Technology Research Cen-

tre, the organization behind Aquis-

tore, reported the well’s driller’s depth

is 3,396 metres. Th at doesn’t take into

account stretch of the pipe, which may

account for another seven metres.

Th e purpose of drilling such a

deep well is to inject CO2 into the

formations directly above the “base-

ment,” the Precambrian rock below

at the bottom of the sedimentary col-

umn.

Th e well has been cased, cemented

and perforated now. Work is expected

to continue on the adjacent observa-

tion well throughout the fall.

Nabors Drilling Rig 60 drilled

the initial well, and will be doing the

second as well.

The Aquistore carbon dioxide injec on well was drilled over the sum-mer. Nabors Rig 60, seen here, has now been moved to the second well to begin work on the observa on well. Photo by Brian Zinchuk


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

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Candace Wheeler

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[email protected]

SOUTHWEST

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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

Gaining access to new international markets for

Western Canadian oil by utilizing rail or pipeline is

the key to our competitive survival with domestic

production expected to grow by 200,000 barrels a

day over the next several years.

Th at was the main point of a keynote speech

delivered at the opening night banquet of the Lloy-

dminster Heavy Oil Show by Kevin Casper, vice

president production for Devon Canada Corpora-

tion.

Casper said the need for transportation links to

customers other than the United States is critical

since the U.S. is also expected to increase its own do-

mestic oil supplies by fi ve million barrels a day over

the next 10 years.

Th e Americans, he said, have demonstrated

through horizontal drilling technology and multi-

stage fracking in shale plays, their ability to respond

to changes in the market.

Th eir fi ve million barrel per day increase will cre-

ate an oversupply of Canadian oil without access to

the seven million barrels per day of refi ning capacity

on the U.S. Gulf Coast and global markets.

Planned or ongoing refi nery upgrades in other

locations in North America will only add 550,000

barrels per day of refi nery capacity, which would eat

up new Canadian oil production in about two years.

Canada currently exports 2.2 million barrels of

oil to the U.S. of which 1.6 million is heavy oil. An

additional 2.8 million barrels of oil a year is expected

to be produced for export in the next 12 years.

A saving grace for Canadian production gains

is the fact global consumption of oil that currently

stands at 89 million barrels a day is expected to grow

by one million barrels a day over the next several

years to support a West Texas Intermediate price of

$90 to $100 per barrel of oil.

Without improved transportation to the U.S.

Gulf Coast refi neries and Asian markets, however,

oil from Western Canada will be stranded and sub-

jected to discounted prices.

Pipeline capacity key for new markets

More than 100,000 barrels of heavy oil per day

produced from the Lloydminster area is shipped by

rail and 10 per cent of Saskatchewan’s oil production

is transported by rail, but pipelines are the key to long

term growth and sustainability.

Casper sees some light at the end of the tunnel

with a series of planned pipelines on the go including

the 800,000 barrel per day Enbridge Flanagan South

pipeline and the 800,000 Keystone XL by TransCana-

da Corporation to the U.S. Gulf Coast.

Th ere is also the 500,000 barrel per day Trans

Mountain pipeline by Kinder Morgan to Vancouver

in British Columbia and the 500,000 barrel capacity

Northern Gateway pipeline to Kitimat B.C. proposed

by Enbridge in the planning stages.

Having just one main customer – the U.S. – is bad

business, but these new pipelines will give Western Ca-

nadian producers a chance to get their raw or refi ned

oil products to the coast whether it’s the East Coast,

Gulf Coast or West Coast and into the world market.

China is the second largest oil consumer in the

world where 1.2 million new cars were added to the

roads each month in 2011 to drive up energy demands

in that country.

Demand for oil and gas is also rising from Brazil,

Africa and India, making Canada a signifi cant supplier

– if we have quick access to those markets.

Locally, Casper said if oil and gas companies in the

Lloydminster area can improve the heavy oil recovery

rate which is currently about eight per cent, with con-

ventional production techniques, it could lead to huge

opportunities in the regional economy.

Casper ended his talk by urging producers, the ser-

vice and supply sector, the transportation sector and all

levels of government to work co-operatively on these

important marketing and transportation issues in order

to adapt to a highly competitive and quick changing

industry.

It’s a message we will be hearing more about soon

when the fate of the Keystone XL is determined in the

fi rst quarter of 2013.


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

Th e Harper gov-

ernment should turn

down the proposed

takeover of Cal-

gary-based Nexen

Inc. by the China National Off shore Oil Corpora-

tion.

Th ey should do so on the basis that CNOOC Ltd.

is a state-owned company and the fact its top execu-

tives are members of the ruling Communist Party.

Th at means CNOOC will mainly be motivated

by non-market conditions and will not be driven by

shareholders to maximize profi ts.

Th ey may have an interest in driving down prices

to provide cheaper oil and gas to their own popula-

tion in China, thereby threatening our energy secu-

rity and infl uencing our national policies.

If they are not going to function as a company

that is motivated to maximize their rate of return in

a free market system, then what is the point of allow-

ing them to change or destroy the backbone of the

Canadian energy and resources economy?

Th e proposed takeover must be approved by

Nexen shareholders and the Canada Investment Act,

which will consider whether a takeover is of “net ben-

efi t” to Canada.

Th ere is no net benefi t to Canada with CNOOC

ownership under the control of the Chinese govern-

ment on our own soil.

Previous cases of Canadian state ownership of

oil and gas companies such as Petro-Canada, SaskOil

and Nova Gas Transmission Limited ended up in

privatization.

Th ey became private when it became clear the

net benefi ts to the economy would be greater if these

Crown corporations were owned and operated by pri-

vate investors.

According to a recent survey conducted for the

Asia Pacifi c Foundation of Canada, only 16 per cent

of Canadians said they would support a Chinese

state-controlled entity taking over a Canadian com-

pany.

How can the Canadian government justify a

takeover of this type when they rejected the proposed

U.S. $38.6-billion takeover of Potash Corp. of Sas-

katchewan in late 2010 by Australian-based BHP

Billiton for having no net benefi t to Canada?

Th e Canadian government should continue to

develop economic ties with China so we can sell our

resources at market value into the Chinese economy,

but communist ownership of any Canadian company

should never meet the net benefi t test for Canada.

If CNOOC wants to invest in our oilsands and

gas resources, they should be able to purchase a stake

through share off erings in free market stock exchan-

ges and fi nancial investments in Canadian compan-

ies, but not state ownership.

If it didn’t work for our own Crown corporations

such as SaskOil that was privatized in 1986, ironically

as the root of Nexen, why would it work for China-

owned CNOOC?

After the Harper government turned down the

takeover bid of BHP Billiton, it said it would defi ne

the rules under the Investment Canada Act for for-

eign takeovers of large Canadian fi rms.

Industry Minister Christian Paradis has yet to

take any action to clarify the vague nature of the act

that China study released Aug. 15 just, shortly after

CNOOC off ered $15.1-billion for Nexen.

“Canadian and Chinese stakeholders have high-

lighted the need for increased regulatory clarity, ef-

fi ciency and predictability in the context of direct in-

vestments in each other’s countries,” said the report.

Th e proposed CNOOC bid for Nexen could be

the right moment for Canada to clarify to the Chi-

nese government that we are open to foreign invest-

ment and greater two-way trade, but not at the cost to

Canada of a foreign state owning of our resources.

Th ere is no net benefi t to this type of precedent

in the Canadian economy that operates in a free mar-

ket system. O Canada, we stand on guard for thee.

A China-owned Nexen raises red ags

You may have missed it, but an article about Husky

Energy in our September 2012 edition may have been

one of the fi rst indicators in a sea change that could

sweep the heavy oil industry centred on Lloydminster.

Th at article noted, “Only three CHOPS wells were

drilled in the second quarter of 2012 compared to 60

such wells in the second quarter of 2011, as thermal

proves to be a cost-effi cient alternative.

“‘We’ve been making good progress in transi-

tioning our heavy oil portfolio towards more thermal

production and horizontal drilling.’ said Husky CEO

Asim Ghosh during a second quarter conference call

on July 25, 2012.”

CHOPS stands for cold heavy oil production with

sand. It has been the standard form of heavy oil pro-

duction in the Lloydminster area for a couple decades

now.

CHOPS came about with the advent of the pro-

gressing cavity pump. It could deal with the copious

amounts of sand produced with heavy oil that would

bring pumpjack-style insert rod pumps to their knees.

Without CHOPS, Lloydminster’s oilpatch would have

whithered years ago. Continual, small advances it its

technology has allowed the process to keep production

up.

However, there are limits to what it can do. It’s only

capable of recovering a small percentage, about fi ve per

cent, of initial oil in place. Th at’s just a tiny fraction of

the 20.4 billion barrels of heavy oil believed to be under

Saskatchewan’s prairies.

Th ermal is much more expensive, both in initial

capital, and in ongoing costs. In an era that has seen

oil prices rise considerably compared to a decade ago,

these technologies – steam assisted gravity drainage

(SAGD), cyclic steam stimulation (CSS) and toe-heal

air injection (THAI) become much more economical.

Let’s face it, as Husky goes, so goes the industry

around Lloydminster. If Husky has all but abandoned

new CHOPS development, that’s a huge harbinger of

things to come.

Massive technology changes are not new to the

oilpatch. CHOPS itself was a huge development. Hor-

izontal drilling has arguably been the biggest advance

in drilling since, well, drilling began. Oil producing for-

mations are by and large fl at and wide, and a horizon-

tal well can expose you to much larger areas of paydirt

than you could ever dream with vertical wells.

If Husky continues down this path, and other pro-

ducers in the Lloydminster region follow, it will have

huge impacts on the entire oilpatch in the area. It will

impact what drilling rigs are appropriate. Will you need

diff erent service rigs? How much work do fl ushbys do

in thermal projects?

What about the entire industry that has grown up

around dealing with produced sand, everything from

sand retention pits to semi-vac trucks to disposal cav-

erns? Will thermal processes need their services any-

where to the extent we see now?

Will the pumps used in CHOPS hold up to ther-

mal production temperatures? If you are a pump man-

ufacturer, have you developed one that can?

A small junior producer can drill a few CHOPS

wells relatively cheaply compared to a SAGD setup.

Has the barrier to entry for small and new producers

just jumped? Can only the guys with deep pockets af-

ford to play in a thermal heavy oil world?

Erik Nickel, senior project manager with the Pe-

troleum Technology Research Centre whose job is

overseeing advanced research into enhanced oil recov-

ery, particularly in heavy oil, doesn’t count CHOPS out

just yet.

He said, “Th ermal is interesting, but thermal won’t

be completely taking over for CHOPS any time soon.

CHOPS is a primary production that still probably has

to take place before thermal techniques are attempted.

Th e wormholes created by CHOPS can be used like a

random horizontal well

network to distrib-

ute the steam over

the reservoir. Even if

they go with thermal as primary production, there will

probably still be sand production with the oil. Th e oil

is less viscous when its warm, however there is a higher

rate of production and that kind of pressure diff erential

will still cause sand to come up the wells.

“As far as the thermal techniques themselves, they

have traditionally been fraught with problems. THAI

successes have been few and far between. SAGD works

well, however it is not applicable across all the heavy oil

reservoirs. Th in impermeable beds can absolutely kill

the process. Also, in thin reservoirs, with cyclic steam,

the non-reservoir rock above and below act like big ice-

cubes cooling the whole thing down before it has full

eff ect. Th e start up costs on anything thermal cannot be

understated either, it is absolutely huge.”

Imagine you were a typewriter manufacturer in

the early 80s, and the fi rst Apple Macintosh computer

landed on your desk. Your world was about to change.

Did you recognize it? Were you adept enough to rec-

ognize that and change with it?

Our Lloydminster reporter started his career work-

ing with an IBM typewriter. IBM doesn’t make a lot of

typewriters these days.

But there is a lesson to be learned from IBM, too.

Big Blue has made it clear there’s one thing they know

how to do, and that’s adapt with the times. IBM went

from typewriters to personal computers to software.

It’s still going strong.

Companies in the CHOPS business may not be

proverbial buggy-whip manufacturers just yet. CHOPS

will still be around for a long time. But change is in the

air, and apparently, underground, too.

Brian Zinchuk is editor of Pipeline News. He can be reached at [email protected]

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Story and photos by Brian ZinchukBromhead – Th e fi ne dust of harvest was in the air on Aug. 30 as massive

combines all around gobbled up one of the earliest harvests in a long time. A

few farmers gathered beside a railroad car and engine, waiting for trucks to

arrive.

But this rail car wasn’t a hopper car, and there was no auger to load it. In-

stead, several tanker trucks full of crude turned up, to be hooked up in turn to a

transloader which would meter oil as it was pumped into the rail car.

For the farmers, this was a little diff erent than what they expected when

they fi rst got involved in resurrecting a rail line. Th ey fi gured the fi rst rail car

would be fi lled with grain.

Th at’s still coming. But for now, it’s oil.

Janice Ashworth brought out her new camera to get some pictures of the

aff air. She farms 9,800 acres and has 250 purebred Simmentals with her hus-

band Kelly and sons Owen, 16 and Kyle, 19. Th ey are one of the farm families

who invested in the rail line as a way to reduce their shipping costs. All came

out to see the show.

“We farm at Oungre and have land at Bromhead,” she said.

“Th e initial goal was to haul our grain. Since then we’ve expanded to oil,

and later grain.”

“We’re right back to 1910, when they pulled down that elevator in Tri-

bune,” said Dennis Zackrisson, another farmer and investor in the railroad who

was on hand for the fi rst loading. He and his son Brennan farm 3,500 acres.

He said to Owen and Kyle, “Your great-grandfather had to haul bags of

grain to Halbrite. It took two days.”

Th ere’s now plans to load grain out of Tribune, Janice said.

“Th is rail track goes through the middle of my land. We’re using a thing

that was here,” Zackrisson said.

Janice added, “We’re creating jobs.”

Indeed, the railroad has two staff members so far.

Ric Boxell is one of those two workers for the new railroad. He used to

mine nickel in Th ompson, Man., working both aboveground and underground,

before retiring earlier this year. Page A9

Long Creek Railroad loads it rst carAnd it’s not wheat going in

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Page A8He had a little experience with underground

railroads in the mine, he said, “but nothing like this

stuff .”

When general manager Bob Holden needed

help, Boxell came. Th ey have a family connection,

and besides, retirement isn’t quite his thing just yet,

said the 54-year-old. “I’ve got lots of years left.”

Holden himself is also retired, having superan-

nuated a little over a year ago. He spent 36 years

with Canadian Pacifi c.

“I was a maintenance foreman. I worked out of

Bienfait. I worked in the Brandon division. It ends

in Estevan.”

In all those years, oil simply wasn’t a commod-

ity they dealt with. Lots of coal, potash and grain,

yes, but oil, no. It’s a new thing, Holden explained.

As for retirement, he agrees with Boxell. “It’s

not all it’s cracked up to be.”

Th is fi rst car is likely a portent for many more

to come. Torq Transloading, the Shaunavon-based

company that is doing the transfer of crude from

truck to rail car, would eventually like to load unit

trains of crude oil on this line.

It took seven years for Canadian Pacifi c to sell

the line to the new shortline. It has been a long

time since the track that now belongs to Long

Creek Railroad saw any action, so long in fact, that

neither Janice nor Zackrisson could remember the

last train. She recalled school trips riding on the

train, with students either in the caboose or engine.

Kyle is in a diff erent type of school these days,

as he is in his second year of an agriculture business

diploma program at the University of Saskatch-

ewan. Asked what he thought of being farmers in

control of their own railroad, he said, “It improves

your bottom line. Anything to keep your costs

down, because expenses aren’t going down.”

Another tanker approaches the rail loading facility in the middle of the bald prairie.

From le : Kyle, Owen and Janice Ashworth observed the rst rail car being loaded on Long Creek Railroad, a new

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By Brian ZinchukRedvers – With North Dakota’s burgeoning oil production growing at an

enormous rate, adding an average of 21,600 bpd each month since the start of

the year, there is a tremendous need for increasing takeaway capacity. Enbridge,

the largest pipeline company in the North Dakota Bakken play, has had a

multi-year, multi-phase program in place to address this.

Th is program saw the reactivation of the Portal link, Line EX02, reversing

a line that had been essentially put on hiatus for several years. Th e next step

in Enbridge’s Bakken expansion in Canada is to put in a new 124 kilometre,

16-inch pipeline from its terminal at Steelman, Saskatchewan to its mainline

terminal at Cromer, Manitoba. New pumps and associated equipment are be-

ing installed at Steelman, and similar work is taking place at Cromer to receive

the additional oil and join up with the mainline system.

Th e pipeline is counter-intuitive in its round-about route. While the

ultimate destination is for the North Dakota Bakken oil to go southeast via

Enbridge’s mainline system, this project takes oil from Berthold, North Da-

kota, north through Portal, to Steelman. From there, the new pipeline proceeds

northeast to the major terminal at Cromer, from which point it then heads

southeast. While it may seem like the oil is literally going around in an almost-

circle, the project takes advantage of existing infrastructure and rights-of-way,

such as the Westspur system and the disused Portal link in particular.

Construction of the pipeline got underway Aug. 1, with the project being

run out of Redvers, which is the largest community near the mid-point of the

project.

Th e town of Redvers has seen a major infl ux of people for the duration of

the project.

Avery Schott, Enbridge’s construction manager, is based out of Redvers.

His job is to manage the day-to-day activities of the construction. Pipeline News spoke to him in the basement of the Redvers Legion Hall, where the

company has set up an extensive offi ce facility.

An American from Minnesota, he worked on the American portion of this

pipeline prior to this job.

Schott said they have a lot of good support, and he tries to stay engaged

with all aspects of the project. Th at means going out into the fi eld in addition

to offi ce work. “I need to see what’s going on on the ground,” he said.

Th e project, at peak, will have approximately 300 people working for the

contractor, Fort St. John, B.C.-based Surerus Pipeline Inc. A further 50 or so

people are working for Enbridge, in positions such as inspectors and offi ce sup-

port, to name a few. Page A11

Avery Scho is the construc on manager for Enbridge for the Bakken expansion project in southeast Saskatchewan. His o ce is in the basement of the Redvers Legion Hall. Photo by Brian Zinchuk

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Page A10 Th at’s an awful lot of

people for a town with a 2011 census

population of 975. Asked where they

put them, Schott said Surerus put in

a temporary campground with over

90 units. Enbridge itself paid for the

doubling of the town’s campground,

adding 28 units. “After we leave, the

town will have an asset that’s a rev-

enue generator,” Schott stated.

Th ose sites are reserved for the

company’s usage next year as the

project is completed. Once done, he

noted, “We basically hand them over

to the community.”

Th e company also paid for a 40-

site expansion of the Moose Creek

Campground near Alida, as well, since

the project was initially envisioned as

having worked out of two locations,

not just Redvers.

Spare bedrooms in basements are

also being rented by workers. Some

pipeliners are making use of the new

Western Star Inn and Suites, which

opened just a few days before the job

started.

In addition, PTI had increased

the size of its Redvers camp earlier

this year. Others are staying in Car-

lyle.

“Th ey just seem to fi nd a place,”

he said.

Th ey will be there for a while yet.

“We hope to have project completion

by the middle November,” Schott

said. Th e projected in-service date is

in January 2013.

“Th e weather has been very fa-

vourable for pipeline (construction),”

he said. Up until Sept 12, they had

been making approximately 2.5 to 3

kilometres of progress per day.

By that date, all the crews except

cleanup had fi red up. Th at crew was

expected to start in late September.

Despite the dry conditions, the

contractor is boring under wetlands.

Schott explained, “We had to be

prepared for alternative installation

methods due to the wet prior year.

“You have quite a few wetland

pockets and a high number of foreign

crossings,” he said. Th ose crossings

included underground lines, roads and

overhead power lines.

“Th e Town of Redvers has been

very accommodating to the project,”

Schott said.

Indeed, that night the local arts

council held a home-cooked meal for

the workers as a fundraiser for a new

digital projector for the town’s theatre.

Th e idea was to give the workers a

taste of home while away from home.

Donna Jamieson, one of the or-

ganizers, said, “I have four of the guys

staying at my house. We’re putting on

a meal for the guys working on the

pipeline. I’ve had some guys mention

they would like a home-cooked meal.”

She noted they were tired of

restaurant food.

Th e plan was to repeat the meal

every two weeks. Turnout was low

at the fi rst one, as the project was by

and large shut down for the latter

part of the day due to high winds

and reduced visibility. With such dry

conditions, the right-of-way in some

places was powder-dry and it was

hard to see.

The Redvers Arts Council hosted a supper on Sept. 12 for pipeliners working in the town. The idea was to give the workers some home-cookin,’ while raising money for a new projector for the local theatre. Donna Jamieson, right, serves up some grub for Avery Scho .


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By Brian Zinchuk

Calgary - – Nearly

all pipelines between

Canada and the United

States fl ow one direc-

tion: south. We sell it,

they buy it. It’s unusual

then, to see a pipeline

built in the opposite

direction, but that’s

exactly what is in the

works right now.

“Th is is very rare,”

said David Schmunk,

chief operating offi cer

of Vantage Pipeline

ULC.

Th e Vantage Pipe-

line project is meant

to carry liquid ethane

from Hess Corpo-

ration’s natural gas

processing plant near

Tioga, North Dakota

through Saskatchewan

to interconnect with the

Alberta Ethane Gath-

ering System (AEGS)

near Empress, Alberta.

Empress is right on the

Saskatchewan/Alberta

border, where the South

Saskatchewan River

crosses into Saskatch-

ewan.

Vantage Pipe-

line ULC is based in

Calgary and has the

same management

team as Mistral Energy.

It’s a private company

formed four years ago.

Th e leadership has

experience running gas

processing plants and

pipelines, operating

Taylor NGL LP. “Alta-

Gas bought us out four

years ago,” Schmunk

said.

Alberta gas supplies

are dropping due to a

lack of drilling, which

in turn, has been caused

by low gas prices. As

a result, the Alberta

petrochemical industry

is in need of more feed-

stock. Two plants in

particular, at Joff re and

Fort Saskatchewan, are

in need, Schmunk ex-

plained. “Th ey’re about

80,000 barrels per day

short,” he said.

NOVA Chemi-

cals will purchase 100

percent of the ethane

produced at the Tioga

Gas Plant under a long

term arrangement.

Ethane is used as a

feedstock for the world

scale petro-chemical

facilities that are

located in the prov-

ince. At these facilities,

ethane is converted to

ethylene. Ethylene is

the building block for a

wide range of consumer

and industrial products,

such as plastics, anti-

freeze, rubber, deter-

gents, and solvents. At

atmospheric pressure,

ethane exists as a gas

and has similar charac-

teristics to natural gas:

it is colourless, odour-

less, non-corrosive,

fl ammable and lighter

than air.

Th e whole Bak-

ken area is very rich in

ethane, Schmunk said,

with up to 20 per cent

of its solution gas being

composed of ethane. It

typically remains in the

natural gas, and is sold

at a much lower rate

than what it can get

once stripped out.

“We’re hopeful

as this pipeline gets

developed, we’re able

to tie into additional

ethane sources in Sas-

katchewan and North

Dakota,” Schmunk said.

Th e company is

in negotiations with

TransGas for a straddle

plant that would extract

ethane off the TransGas

system.

“We’ve been work-

ing with TransGas for

two years now,” he said.

Page A13

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Page A12In January, the

National Energy Board

gave its approval for the

Canadian side of the

pipeline. In a release

dated Jan. 19, 2012, it

stated, “Th e board is sat-

isfi ed with the evidence

provided by Vantage

that Alberta’s domestic

ethane supply is declin-

ing and will continue to

decline for some time.

Vantage demonstrated

that there will be suf-

fi cient future ethane

supplies and proceeding

capacity for the project

to be viable over its

economic life.”

Th e pipeline is 700

kilometres in length,

with a total distance in

Canada of 578 kilo-

metres. Of that, 504

kilometres is within or

alongside existing pipe-

line and road rights-of-

way. While the 10-inch

line is not the largest

diameter pipeline proj-

ect underway this year

in Saskatchewan, it is by

far the longest project of

its type for the current

year.

Th e $300-million

line runs northwest

from Tioga, crossing

the international border

just east of the intersec-

tion of the Saskatch-

ewan, North Dakota

and Montana borders.

Th e line enters Canada

near Beaubier, and goes

west-by-northwest

along Highway 13,

passing near Assiniboia

and Shaunavon. Near

Gardenhead, it makes

a right turn and heads

almost straight north-

west to Empress on the

other side of the Alberta

border.

Pumping stations

are slated for Assiniboia

and Empress. Th ese

500 horsepower, electri-

cally driven pumps will

be located in buildings

designed to minimize

noise impacts during

the operation of the

pipeline.

Th e steel pipeline

will be in high vapour

pressure service. Th e

maximum operating

pressure will be 9,930

kilopascals (1,440

pounds per square inch).

Page A14

Proposed Vantage P

ipeline Project R

oute

The Vantage pipeline runs in the opposite direc on compared to most pipeline between Canada and the United States. It will ow south to north, not north to south.


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New pipeline goes against the grain Page A13

Th e Vantage project will have

the capacity to transport 6,300 cubic

metres per day (40,000 bpd) and will

be expandable to 9,500 cubic metres

per day (60,000 bpd) by adding two

additional pump stations.

Construction begins“We’ve got three spreads go-

ing in Canada,” Schmunk noted. All

those spreads were mobilized by the

fi rst week of September. Kidd Con-

struction is handling Spread A, the

western portion, which will run from

Empress to Highway 21

Spread A, the westernmost por-

tion, runs from Empress to Highway

21, northwest of Shaunavon. It is be-

ing tackled by Kidd Construction.

Spread B, which runs from High-

way 21 to east of Assiniboia, is almost

300 kilometres, almost half the length.

It will go as long as weather allows. It

may be done by February, or may shut

down for the spring. Schmunk noted,

“In southern Saskatchewan, you can

get fantastic falls, or you can get not-

so-good falls.”

M&N Construction is respon-

sible for this spread.

A&B Pipeliners has Spread C,

which goes from east of Assiniboia to

80 kilometres from the U.S. border.

Th ey are looking after almost 100

kilometres.

Th e last 80 kilometres will be bid

out next year.

Adjacent pipelines in a right of

way and the nature of sidebooms

dictates the direction of work. Spreads

A and B will go from west to east, but

spread C will go from east to west.

Vantage estimates 400,000 man-

hours of work will be required to

build the pipeline.

Eff orts will be undertaken to

minimize damage to native prairie.

Th e right-of-way will see full-width

stripping on cultivated land, but only

blade width or even bucket-width

stripping in more sensitive areas.

Th e Vantage Pipeline will meet

or exceed all applicable engineering

and regulatory codes, standards, and

requirements, according to the com-

pany. All construction and operation

equipment will be purchased from

qualifi ed manufacturers. To further

improve the safety of the pipe, a

corrosion-resistant protective coating

will be applied to the outside of the

pipe.

Th e pipeline will be buried to a

minimum depth of soil cover of 1.2

meters (four feet). All welds will be

tested using non-destructive examina-

tion methods. After the welds have

passed inspection, they will be coated

to complete the corrosion protection

process.

Prior to being placed into opera-

tion, all pipeline sections will be pres-

sure tested with water to at least 125

per cent of the pipeline’s maximum

allowable operating pressure to ensure

the integrity and operational safety of

the pipeline.

Once operational, the proposed

Vantage Pipeline Project will be

monitored and controlled 24 hours

per day, 365 days per year, from a cen-

tral control facility using a state-of-

the-art supervisory control and data

acquisition (SCADA) system. A leak

detection system will continuously

monitor the pipeline. In the event of

the detection of any anomaly, block

valves will automatically shut to iso-

late that portion of the pipeline. Th ese

automated block valves will be located

approximately every 25 km (15 miles)

along the pipeline.

Torquay Oil Corp.

production rose nine

per cent during the

second quarter of 2012

compared to the same

quarter a year ago

thanks to new volumes

from Queensdale, and

despite operations being

shut in for six weeks

due to spring road bans

that reduced volumes

by about 90 bbl. of oil

equivalent per day.

Production was up

31 per cent year to date

compared to the same

period last year.

A seismic pro-

gram that was shot at

Queensdale in the fi rst

quarter has been inter-

preted, and the company

expects to drill at least

one additional location

in this area in the third

or fourth quarters of

this year.

Operating costs

jumped during the

second quarter due to a

large, previously un-

billed and unexpected

processing fee that was

received for third-party

processing at Viewfi eld.

Th is agreement was

inherited at the time of

the initial acquisition of

the Viewfi eld property.

Th e invoice covered

processing charges from

September 2010 to June

30, 2012. Th e charge

related to 2010 and

2011 was approximately

$277,160 or $3.31 per

boe year to date.

Operating costs

were $24.40 per boe and

$15.09 per boe for the

three and six months

ended June 30, 2012,

compared to $17.78 per

boe and $14.95 per boe

for the three months

and six months ended

June 30, 2011.

Capital activity

was reduced during the

second quarter due to

seasonal breakup and

to maintain the balance

sheet during this period

of volatile commodity

pricing.

Replacement of a

damaged tank farm at

the Viewfi eld battery

is well underway and

production is expected

to resume by mid-Sep-

tember.

Th e fi nancial im-

pact of the damage to

Torquay is limited to

insurance deductibles of

around $136,000, which

includes a $25,000 de-

ductible on equipment

replacement and 15 days

of net production.

Average year-to-

date prices declined

$4.60 per boe compared

to the fi rst six months of

2011, but have recov-

ered substantially in the

third quarter of 2012.

Year-to-date net-

backs have averaged

$48.51 per boe for the

fi rst six months of 2012.

One-time charges

resulting in a net de-

crease in netbacks of

$4.79 per boe year to

date are not expected

to reduce netbacks in

future quarters.

Th e company said

it continues to evaluate

the Bakken formation

along with the emerging

Th ree Forks play.

Operating costs rise


Redvers – On larger pipeline projects, excavator operators don’t work

alone. Th ey typically have an oiler working with them, doing things like mea-

suring the ditch, maintaining the machine, and keeping a second set of eyes

out for things like powerlines.

On the Surerus roadbore crew working on the Bakken expansion pipe-

line, the relationship between one operator/oiler pair was a bit diff erent than

most.

Holly Bertrand could be found on the ground, working as a oiler. Her

husband Dan was the operator.

Holly’s new to pipelining, having done it for the past year, whereas Dan’s

an old hand at it. Having run an excavator for 18 years since high school, his

resume includes the Alliance Pipeline built in 1999-2000. “I’ve been all over,

right across Canada,” he said.

What’s even less common is seeing a registered psychiatric nurse working

as an oiler.

She explained that with everything factored in – extra hours and subsis-

tence pay – she was making a little bit better than she earned as an RPN in

Th under Bay, Ont., where they call home.

Working together can be a little diff erent for a married couple. But Holly

said, “We do everything together anyways. We snowmobile, we motorbike,

we go out together.”

As for nursing, she said, “I’m done.”

Husband and wife team on the pipelineDan Bertrand has been running an excavator for 18 years. Now he’s working with his wife as his oiler.

Holly Bertrand gave up being a reg-istered psychiatric nurse to work on pipeline jobs with her husband Dan, an excavator operator.


CUSTOM TREATING AND TERMINALS

By Brian ZinchukEstevan – A new drilling com-

pany is coming together in Estevan,

with two rigs under construction.

Stampede Drilling is set to launch

operations this October with Rig 1,

which is under assembly at Do-All

Metal Fabricating’s Estevan location.

Rig 2 is on its way for the end of the

year.

Th eir rigs will be identifi able by

their metallic silver paint and metallic

red trim. Th e operating area is expect-

ed to be southeast Saskatchewan and

southwest Manitoba.

Th e company is managed by

Darrin McKay, Bill Devins and Jackie

White.

“Th ere are a number of local

shareholders involved,” White said.

“It’s broadly spread.”

“We started building the middle

of July.”

McKay acts as president, and

handles sales out of Calgary. Devins

is in somewhat of a CEO role, White

said, and he’s essentially quarterback-

ing the operation.

“He wants to be called a rough-

neck,” she said.

White’s role is secretary/treasurer,

safety co-ordinator and offi ce man-

ager.

“Everybody’s roles are overlap-

ping,” she said.

Th e ownership is

Saskatchewan-based. Both

McKay and Devins are

originally from Saltcoats,

White noted.

Asked whose idea it was

to form the company, White

said, “We all kind of threw

it out there. It was joking

around, ‘We should do this.’

“We were approached

by other people who are now

shareholders who said, ‘Why

don’t you?’ So we jumped

in up to our necks. In June

the decision was made to go

ahead.

“Darrin, Bill and I have

made a good team over the

years. We’re all very diff erent,

but have a common goal.”

Th e rigs are being built

by Do-All. “Th ey have a

good product, and are local.

We are really trying to stay

local,” said White.

Th e rig manager’s shack

is coming from Demby

Trailer Ltd. of Weyburn.

Th e engine packages are from

Rouse Industries/Southern Industrial,

also of Weyburn.

“We’re running Cats on every-

thing,” White said of the power pack-

age choices.

Each rig will have two mud

pumps powered by Caterpillar C32

engines and a single-speed Rouse

MPD1 gearbox.

Th ere will also be two Cat C15

450 kilowatt gen-sets per rig.

Th e drawworks will have a Cat-

erpillar C18 engine paired with a Cat

CX35 transmission. Th is is only the

second time such a pairing has been

supplied by Rouse Industries. It’s a

fully electronic transmission with

advanced electrical features.

Page A17

Stampede Drilling about to head out of the gates

“I’ve often heard you’ve got to like

the guys you’re working with because you

spend more time with them than

your wife” - Jackie White

Stampede Drilling


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Page A16

Having redundant

mud pump and gen set

systems provides peace

of mind, according to

White. “If one goes

down, you’re sitting,”

she said of rigs work-

ing with just one unit.

“Companies don’t want

that.

“Our goal is to

lead the industry in

equipment, safety and

productivity.”

Asked why they

would fi re up with two

rigs from the get-go,

White said, “Financially,

it’s a better decision to

go with two. We feel we

will not have any prob-

lems fi nding employees

for two.

“You go off the

same pattern when you

do them at the same

time,” she said. What

is implemented on one

rig is quickly done on

the second, because

you don’t have to try to

remember how that was

accomplished the fi rst

time.

With approximately

30 fewer rigs working

in Saskatchewan com-

pared to the same time

last year, there’s not

nearly as much pres-

sure to fi nd staff as the

industry saw in 2011,

when a active drilling

rig record was set in

August.

Stampede has

people coming to them

from all over. “We’ve

got resumes from Al-

berta, Ontario, Mani-

toba. We’re just starting

to get employees now,”

White said. “We have a

big pool of good work-

ers out there.”

Having a large pool

to pick from is “defi -

nitely an advantage for

us,” she said. Once fi red

up with both rigs, the

staff will be around 45

to 50.

“You have to look

within. Th ose fi rst two

rigs should man the rest

of the company,” she

said, referring to the

practice of developing

staff and promoting

from within.

“We want to spend

a lot of time with our

guys, training, men-

toring, passing down

knowledge,” White said.

By the fi rst week of

September, they were

just getting their rig

managers and drillers in

place.

“Th e training pro-

cess is lengthy, and it

should be lengthy. We,

the industry, missed

that the last few years.

“We learn from

the young guys,” White

added. “Th ey have dif-

ferent ideas. Th ey’ve

seen what works, what

doesn’t.”

Rig 1 was coming

together in September,

with the substructure

and derrick coming up

from Glenburn, North

Dakota, and the boiler

also on its way from

Alberta.

“Th e rest of build-

ings are all being built

in Estevan,” she said.

Some of the recent

rigs built by Do-All

have had a slide-out in

the doghouse, allow-

ing the driller to work

indoors. Th at’s a design

philosophy Stampede

chose not to take.

White said with the

driller on the fl oor, they

have better vision, and

better eye contact with

the other hands.

Th ey will have a

heater under the drill-

er’s station and another

for the roughnecks. It’s

not a common thing to

have one for the rough-

necks, but she said they

are going to try it.

“It’s not a cookie-

cutter rig,” White said.

“Our walkways around

the buildings will be

made of fi breglass in-

stead of metal. Th ey will

all be light.”

Everything is API,

following CSA stan-

dards. Everything is (at

that level) and above.

Th ere’s no iron

roughneck, but there is

an hydraulic catwalk.

Stampede will have

their own loaders, bins

and tanks. Management

will not have their own

rentals.

Rig 1 is expected to

go to work in mid- to

late-October. Rig 2 is

slated for December.

“We’re hoping to get a

hole or two in before

Christmas,” White said.

“We will be hav-

ing an open house for

shareholders and any-

one interested before it

goes out,” White said.

Th e company is

eventually looking at

a shop near Estevan.

“We’re not building

anything yet ourselves.

It will come,” she said.

“We’re planning to

expand, absolutely.

“Let’s see what the

industry is doing, and

where we’re at. We want

to be a happy place to

work, and treat our guys

well.”

Th ey intend on

operating with eight-

hour shifts, like most of

the southeast Saskatch-

ewan-based rigs. Th at

means four crews per

rig, each working three

weeks on and one week

off .

“You’ve got to

have a home life away

from work,” White

said about the choice

not to go with 12-hour

shifts. “Fatigue is hard

on people. You end up

killing someone on the

road on the way home.

“If you know you’re

getting a week off , fun

stuff can be planned for

when you are off . Th ey

need a life.

“A swing crew

means guys can switch

shifts when they need a

day off for things like a

wedding or banking.

“I’ve often heard

you’ve got to like the

guys you’re working

with because you spend

more time with them

than your wife,” White

said.

To that end, the

company intends on

having leadership train-

ing and mentoring. “It

takes special people to

do it.

“What makes a rig

work? Iron is iron. It’s

the guys – the motor-

men, the rig managers,

the drillers, the derrick

hands, the roughnecks.

Th ey make the rig work.

“Don’t get me

wrong. We’re proud of

what we’re building. But

we’ll be prouder of the

men that make it work.”

Regarding the

future of the industry,

White said, “Right now

it’s slow, I know that.

But I don’t think it will

be slow much longer.

My crystal ball broke

yesterday, so I only have

today.

“I think we’ll defi -

nitely be competitive.

It’s the guys. If your

guys are working for

you, you’ll work,” White

concluded.


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One Woman’s Perspective on Life, Liberty and the

Pursuit of Land Locations By Nadine Elson

Shifting Shifting GearsGears“Th ey’ll never

come,” my mother had

said. My Irish cousin had

just told me she and her

husband were thinking

of travelling to Canada

in 2012. “Th ey always

say that.”

It was September of

last year and Mom and I

were in Ireland together

for a family wedding.

Th is was only my second

trip to Ireland and I had

been re-acquainting

myself with family. My

mother didn’t need to do

that. Born in Canada to

Irish immigrant parents,

she had travelled to the

homeland of her parents

23 times.

Mom passed away

suddenly in May and

although her death was

acknowledged by her

cousins with fl owers, no

mention was made of

any trip. So when my

aunt called from Regina

in August to say that

Daphne and Pat were

coming mid-September,

I was surprised and

pleased. Only one other

cousin had ever made it

to Canada from Ireland.

Flying into Regina,

Daphne and Pat had

exactly two weeks in

Western Canada before

fl ying out of Vancouver

for home. Two weeks

to visit three provinces.

Two weeks to see most

of the 32 relatives living

in the west. Two weeks

to travel the 2000+ ki-

lometres. “You can have

them for one day,” my

aunt said. “Th ey have a

lot to see and not much

time.” No kidding.

“What will you do

with them?” she contin-

ued.

“Th ey’re coming to

Estevan. It’s the Energy

Capital of Saskatchewan.

I’ll show them energy,” I

replied.

I arranged with

my aunt to bring them

to the Weyburn Tim

Hortons early on the

assigned day. Th e Irish

were going to need the

energy the coff ee and

doughnuts provided.

Th ey had a lot to see and

not much time.

First stop on the

energy tour was Panther

Drilling, just outside of

Weyburn, where I had

noted a drilling rig under

construction. Close to

the highway, my guests

could view the rig fairly

close up without the

restrictions posed by a

working rig on lease.

Driving onto the prop-

erty, I drove around the

massive structure.

I got out, wanting

to get permission. I had

the luck of the Irish that

day. Th e man I was ask-

ing was the president of

Panther Drilling, Cory

Hicks. He was gracious

and suggested a tour of

the nearly completed

Panther Drilling Rig 4.

He and Jim Kopec, gen-

eral manager, guided us

around the rig that was

then only three weeks

away from completion.

It had taken barely six

months to assemble

using a combination of

fabrication on site and

in Weyburn, and from

components purchased

from companies in

Alberta.

We started in the

combination build-

ing which housed the

lockers. We then went

through the pumphouse,

up the stairs to the

doghouse and fi nally

onto the rig fl oor. Irish

Pat was fascinated. He

had spent time in the

merchant marine and

had fabricated medical

devices in Ireland, so he

asked numerous ques-

tions. Jim explained how

the blow-out protector

system worked, and they

discussed the hydraulics.

Th anking Cory and Jim,

I herded the cousins

back to the truck. We

had enjoyed exploring

Rig 4, but we had to get

going. Th ere was still a

lot to see, and not much

time.

We drove to Estevan

for our next tour. Allan

Wrolson, Senior Mine

Engineer at Sherritt

Coal’s Boundary Dam

Mine, was our guide. He

handed out hard hats,

and we were taken by

truck to another world,

the world of strip min-

ing. We bumped and

drove over mine roads

towards Big Lou, the

dragline weighing 6 mil-

lion pounds. Al told us

Big Lou and two other

draglines worked 24

hours a day to provide

coal for Shand and

Boundary Dam Power

Stations. Th ey removed

the 110 feet of over-

burden (clay) to get to

the 12 foot coal seam in

long strips using buckets

that held the equivalent

of six dump truck loads

or 100 cubic yards. At

the end of the tour, Al

presented them with

small bags of coal.

Page A19

Takes energy to see the energy capital


Page A18Personal energy

levels were fl agging,

but sandwiches eaten

on the way to the next

stop, Boundary Dam

Power Station, helped.

Th e luck of the Irish

was still with us, as we

were greeted by Scott

Walton, charge engineer.

He is a 19 year veteran

of the plant and a very

knowledgeable guide.

We again donned hard

hats, and ear protec-

tion for the noise, and

were ready. He toured

us from the original

portion of the plant,

A Plant, on the boiler

sides to the newer part.

A small peep door in

one boiler was opened

and we saw the inferno.

Scott told us, that at the

hottest part of the boiler,

it was 2250 F. At full

load, he said, the boilers

can use up to 14,000

tons of coal per day.

We viewed con-

trol rooms, the turbine

house on the operating

fl oor, and the crane that

my husband, Bruce, uses

to lift the heavy ma-

chinery and parts during

overhauls. After a very

enjoyable afternoon,

we said thank you and

goodbye.

Our last stop on

the energy tour was at

A&W for beer; root

beer that is. My Irish

cousins had never before

tasted root beer. While

not exactly Guinness,

we badly needed the

pick-me-up. We all

agreed–touring energy

sites defi nitely takes

energy! Th ere had been

a lot to see in not much

time.

Note: Th ank you to

Panther Drilling, Sher-

ritt Coal and SaskPower

for the tours. It was

eye opening, enjoyable

and very interesting.

My Irish cousins were

especially impressed

with the friendliness of

the people of Saskatch-

ewan. Any mistake in

factual content is mine

alone.

Nadine lives in Es-

tevan, with her husband and family, and works as a hot shot driver in the oilpatch regularly delivering goods in and around Estevan and Shaunavon, and Sinclair and Waskada, Man. Her mission, beyond deliver-ing the goods quickly, is to have every interaction be a positive one. She can be reached at [email protected]


Melville, 6-29-22-06-W2 • Willmar, 11-36-5-4-W2

Carlyle – Th ere’s ba-

sically only one way to

become a rig manager,

or toolpush as they’re

also known: the old-

fashioned way – work-

ing from the bottom

up. Th at’s been the

experience of Cimarron

Prince, who works with

CanElson Drilling.

“I’m a rig manager

on Rig 24 and a relief

fi eld supervisor,” said

Prince.

CanElson’s Sas-

katchewan operations

are based out of Car-

lyle. Th eir assets in this

province originate from

the purchase of Totem

Drilling and Eagle

Drilling Services in

recent years.

“I came from the

Eagle side. I built Rigs

2, 3, and 4 with them.

I started right at the

beginning.”

“Th is is my 23rd year

in the oilpatch,” said the

40-year-old.

Asked about how

he got his start, Prince

said, “I built trailers in

a little trailer shop for a

few months. As soon as

my paycheque bounced,

I moved to Alberta to

work.” Page A21

Top Job

Cimarron Prince

Job: Rig Manager and Relief Field Supervisor

Education/Training: 23 years on drilling rigs.Quote:

“You have to be willing to work hard, be willing to sacri ce, but the re-wards can be good. It pays well.”

There’s one way to go, from the bottom up

Cimarron Prince


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Why Shangri-La?

• Private entrance for each unit

• Paved parking at rear

• R-20 insulation in walls

• R-40 insulation in ceilings

• Triple pane All Weather windows

• 30 year “IKO” shingles

• Upgrades available

4 - 2 bedroom, 871 sq ft units

starting at $195,975 plus tax

4 - 2 bedroom, 847 sq ft units

starting at $190,575 plus tax

Financial Considerations• Lower small town taxes and utility rates

• The builder is turning over to the buyer the

5% rebate on new housing and will assist with

application

• The builder is providing a “Home Pro Warranty”

which covers 1 year on materials and labour, 2

years on mechanical systems, 5 years on founda-

tion, 10 years $60,000 structural defects, $25,000

deposit security and $6,000 additional living costs

• Units are equipped with the latest in heating

and cooling systems “Majic Pak” which will allow

you to live in comfort while saving on utility bills

• Being sold at current appraised values, this ap-

praisal is available to the buyer

• Take advantage of the peaceful lifestyle of a

small town, situated only minutes from the city of

Estevan

• Elementary and middle school 2 blocks away, bus

service to Estevan Comprehensive High School

• Convenience store and bank across the street

• Well organized minor hockey in a recently reno-

vated hockey rink

• Curling

• Indoor pool

• Historical community

Why Bienfait?

For more information call Mike (306) 634-2531A start in creating your piece of paradise!

Purchase one of eight Spacious apartment style condos being built at 416 Main Street, Bienfait, SK

Page A20Prince is from Insinger, a village southeast of Foam Lake.

“I didn’t even know there was an oilpatch here at the time,” he said. “Origi-

nally I went to make money to go to school. I never did go to school.”

He had been planning on being a heavy duty mechanic.

His fi rst drilling company was Precision Drilling. “I worked for them for

nine-and-a-half years,” Prince said. “I bounced around to smaller companies

when things were slow.”

Noting the importance of having buddies out there, he said, “Everybody

keeps you working.”

Prince’s career has followed the typical path. He started as a roughneck for

a month, then soon progressed to motorhand for the next four years. Th e fol-

lowing six years were spent working derrick.

“I loved working derrick. I’d have to say it was my favourite job. You’re your

own boss. If all is going good, no one bothers you.”

In recent years, the shortage of experienced rig hands has meant some

people became drillers with two to three years of fi rst stepping on a drill fl oor.

Not so in Prince’s day. “I didn’t start drilling until at least ten-and-a-half to 11

years,” he said.

“Th ose times are gone. You’re pushing people up so fast.”

When it was his time to step up, he got a bit of a push of his own. Mike

“Cannon” Smith, the Can in CanElson, gave him that push.

“We had a driller that got hurt. Cannon kept bringing guys out that were

sketchy at best. I told him, ‘If that’s the best you’ve got, I’ll drill.’”

“Th ought you’d never ask,” was the response.

Page A22

When he rst got into the business, Cimarron Prince didn’t know there was much of an oilpatch in southeast Saskatchewan. But since coming back from Alberta, it’s been his home and workplace.


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Page A21Th at was about 12

years ago.

Smith now runs the

Saskatchewan opera-

tion for CanElson.

Prince drilled for

six years, and since then

has been a rig manager.

Last summer he started

fi lling in as a relief fi eld

superintendent, look-

ing after either six or

eight rigs, depending

on whom he is fi lling

in for.

“I always liked

where I was. If I didn’t

like it, I wouldn’t be

there,” he said.

“When I worked

in Alberta, everybody

worked twelves, but we

slept in our own beds.

Here, we work eights.

It’s still shift work, but

it’s a normal life. It

makes it a nice, close-

knit family atmosphere

down here, part of the

reason I came down

here,” Prince said.

He came back to

Saskatchewan in the

summer of 1999. He

was initially based out

of Insinger, but got a

job working as a der-

rickhand with Big Sky

Drilling (later called

Ensign Big Sky Drill-

ing). He moved to

Carlyle, and eventually

Wawota, which is now

his home.

Th ere he hooked up

with a local girl and got

married in 2008. Th ey

now have two children,

one and three years old.

His wife, Jennifer, has a

diploma in early child-

hood development.

With the cyclical

nature of the oilpatch,

there are plenty of

ups and downs. Th e

most recent signifi cant

downturn was in 2009.

“We were pretty fortu-

nate at Eagle Drilling.

We had a pretty strong

go.”

“I learned over the

years to save my pen-

nies.

“Th e hardest part

was keeping hands.

As a small company,

we utilized our own

staff . Week took all

the hands that weren’t

working and redeployed

them within the com-

pany.”

He’s had lots of

talks with roughnecks

over the years about

things like the wisdom

of buying a $70,000

truck right away.

“What we do is

seasonal work. We

shut down a week to a

month at Christmas.

Th en there’s road bans.

We’re very weather

dependent.

“You have to

weather the storm,” he

said, both literally and

fi guratively.

Not everyone can

work in front of a com-

puter, he noted. “You

still need labourers. I

think it’s a good career.

I like working outdoors.

It’s a bit rough and

tough, but it’s kind of

rewarding.

“It takes its toll.

You’ve got to work at

it.”

For instance, those

aforementioned eight-

hour days are long gone

as a rig manger. He

lives at the rig for three

weeks, and then has one

week off .

Rewarding career for a toolpush


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Redvers – What do you do when the project you are working on will bring

350 workers to a town of just under 1,000? In the case of Redvers, you off er to

build onto the local campground.

Th at’s what Enbridge did as part of its housing strategy for the Bakken

pipeline project currently underway. Th e job is being based out of Redvers, with

about 300 workers for the contractor, Surerus Pipeline Inc., and a further 50 or

so for Enbridge.

“Th ey defi nitely came to us as part of their accommodation strategy,” said

John Seargeant, economic development offi cer with Redvers Regional Agri-

cultural and Commercial Endeavours (RRACE). “Th e NEB (National Energy

Board) asked them what their plan was.”

Th e project added 28 new sites to the existing 28 sites at the Redvers Log

Cabin Campground.

Fourteen of the new sites have 50 amp electrical service, while the remain-

der have 30 amp service. All have sewer and water. Th e existing sites did not

have sewer service, and had only 15 or 30 amp service.

“Enbridge paid the full shot for the construction, and will turn it over to

the town October 2013,” Seargeant said.

Th e facility is fully booked for this year. He’s not sure how many sites they

will require next year for cleanup work.

Page A25

They came, they saw, they are leaving a campground

John Seargeant is economic devel-opment o cer with Redvers Re-gional Agricultural and Commer-cial Endeavours (RRACE).


Page A24Enbridge also expanded the Moose Creek Campground near Alida by 40

sites. Th e project was initially planned with two possible bases instead of simply

Redvers.

Redvers plans to add a shower house in the future, as the existing two stalls

for each gender is not enough.

“Enbridge has been terrifi c to work with and they’ve been appreciative of

our eff ort,” he said. “In the future, we’ll have a terrifi c campground we can use.”

By adding sewer service, it means campers in the long term can stay much

longer than they could before. Eventually trees will be added to the new sites as

well.

Surerus also set up its own temporary campground on the north side of

town. It went in very quickly.

Other accommodations in use to deal with the infl ux include hotel rooms

Enbridge paid to double the size of the Redvers campground in prepara on for its Bakken pipeline project.

that were blocked off for some of the workers.

“Our Western Star [Inn & Suites] hotel opened up a few weeks ago,”

Seargeant said.

Th e PTI Redvers Lodge expanded by 48 beds earlier in the year.

Asked about the pressures the town has had to cope with the additional

people, he said they were prepared for most, but laundry has been a challenge.

“Th e hardware store is staying open a little later. Th e pharmacy is staying

open one night a week.” Page A26


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Page A25Th e liquor store is also open on Sundays. Th e new Co-op opened recently,

and has extended its hours one night a week as well.

“Diff erent businesses are seeing opportunities,” he said. Some are seeing

increased sales, whereas for others, things are more normal. High demand in

some cases means more competition for the locals.

“Restaurants are up at least 150 per cent,” Seargeant said. “We have all

these extra people. Some people extended their hours by an hour, to 9 p.m.”

Th e gas station along Highway 13 is now making approximately 100 bag

lunches a day.

Th e Silvermoon In has been recently renovated. Th e Redvers Hotel is an-

other option for accommodations.

“Accommodations are hard to fi nd anywhere,” Seargeant noted.

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Redvers – As it turns out, birds are a very

important consideration when building a major

pipeline project. Ensuring they are not disturbed is

part of the job of Kim Baumert, a fi eld engineer on

contract with Enbridge for its Bakken expansion

project.

“I ensure the pipe gets put in according to the

specifi cations and code,” he said. “In particular, if

there are any changes due to site conditions, i.e. it’s

wetter than expected, I go in and determine what

we need.” Page A28

Makingadjustments on the y, for those that y

Kim Baumert points out areas of the right-of-way where accommoda ons have been made for migratory birds. Baumert is a eld engineer on the Enbridge Bakken ex-pansion.


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Page A27

An example could be saddle-bag weights meant to keep the pipe from

literally fl oating out of the trench.

“Most of the problem areas, the contractor has chosen to bore rather than

use wetland construction techniques,” he said.

However, there have been dry conditions this year, at least up until mid-

September. “Th e diff erence between June 1 and now is very surprising,” he

said. “Th e weather has made things much easier.”

Even so, he noted, “Any wetland of any depth, the contractor has chosen

to bore under.”

Cost-wise, he said it’s a toss-up. Digging an open trench means you have

to do ditch de-watering. Th ere are fewer long-term environmental impacts

with boring, but “if it’s done properly, open cuttings restoration is successful,

too.”

One of the challenges of doing open cut installation in wetlands is know-

ing precisely where other pipelines in the same right-of-way are. In this case,

the job is paralleling other existing lines.

“A true success story is where you can come back a few years after a pipe-

line was built and you can’t tell it was built through a wetland,” Baumert said.

Most of Baumert’s experience has been in the United States, where he

said environmental concerns are slightly diff erent. However, it all averages

out, he added.

“Th e pre-planning for this project was very

good. Th e environmental protection program was

well-thought out. Not many changes had to be

made on the fl y.”

Th ere was a time not too long ago when

projects like this started in June. Now, due to

migratory birds legislation, such projects can’t

get underway until the birds have left their nests.

“Th at was the biggest impact to this,” Baumert

said in explaining the Aug. 1 start date.

Th ey have had to adjust some shoefl ies (access

roads) to accommodate some of the remaining

birds, and have even bored under areas to avoid

disturbing them, adding two tie-ins when that

happens.

“It creates a small move in and move-out, but

those are the rules we signed in on, and we’re go-

ing to adhere to them. We’re not going to have a

choice,” he said.

Watch the wetlands


Cromer, Man. – Th e point of Enbridge’s Bak-

ken expansion project underway right now is to get

more North Dakota oil into its mainline system. It

joins the mainline at Cromer, Manitoba, just across

the Manitoba border from Saskatchewan.

Th e Cromer facility is an imposing site, one not

expected on the Manitoba prairie. Just north of the

Pipestone Creek and within its valley, the facility

is a key part of Enbridge’s infrastructure. Th ere’s a

mix of old and new, with older buildings and new

installations like a communications antenna in the

centre of it that speaks to updates the facility has

seen over the years.

Th e new pipeline approaches the plant from the

southwest, where a large horizontal drilling rig is

working on crossing the Pipestone. From the river

crossing, the line goes east before turning north,

into the plant.

Roger Foss, chief inspector for facilities, is

looking after the project for Enbridge.

“We are putting in a meter and a prover,” he

said, driving by the nest of piles being installed for

the additional hardware. “We’re tying-in the Bak-

ken line from Steelman.”

Th ose pilings are for the pig receivers.

Work got going at the end of July. A new access

road was built up one metre high on the south side

of the facility.

It should be done by Christmas, Foss said.

Th e fi rst Interprovincial Pipe Line Inc. (former

name of Enbridge) mainline was built in the 1950s.

As a result, the Cromer facility has a lot of legacy

installations. You don’t scratch dirt without fi rst

undertaking extensive hydrovacing. In this case, the

entire trench line within the plant was hydrovaced

before any digging.

“When you’re in a facility, it’s generally good

practice,” Foss said. “In the old days, they didn’t

always make proper drawings.”

“We bring electronic sweeps out, and they’ll

sweep the area and stake it, then go so many feet on

either side of a known pipe.”

He noted it’s cheaper to pay for a hydrovac

than have a line strike.

As for the construction process, he said, “First

you do your survey. We had to do a bunch of demo-

lition fi rst and then resurvey.

“We’re starting at the receiver trap and coming

north into the plant. We get all the lines in, hy-

drotest, and hand the keys over.”

Th e new pipeline will tie into the main mani-

fold. From that point, it can be directed into one of

the several mainline pipelines, or into storage tanks.

Th is part of the project will not see any ad-

ditional tankage added to the facility. However,

something diff erent is happening to one of the large

tanks on the north side of the facility.

Page A30

Piles are installed to receive the new pipeline entering the Cromer facility.

Cromer terminal readied forbakken line


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Page A29Surrounded by jacks, the empty tank will

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“Th is is the fi rst time Enbridge is trying

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Tank being jacked up

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October 2012

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By Brian Zinchuk

Carnduff – Th ere’s no question entre-

preneurship can be a strong family trait.

Th at idea is proven out by the Swayze

family of Carnduff , who are entering their

fi fth generation as business operators in

southeast Saskatchewan.

“One of the biggest things that comes

to mind as far as Swayze’s goes is these

guys are the fi fth generation of Swayzes

that have had a business in Carnduff , and

we’re working on the sixth,” said Jerry

Swayze, who heads up Swayze Concrete

Ltd.

“Th e very fi rst was a machinery dealer

and blacksmith, my great-grandfather. My

grandfather was in plumbing and heating.”

His parents, Orvil and May Swazye,

started what was then known as Swayze

Red-e-Mix Ltd.

“It was actually started around Ox-

bow.”

Th e company was founded in 1960,

and has been in business for 52 years. It’s

been a long slog, however, but one that

saw the company grow phenomenally in

recent years.

“In Saskatchewan, other than the last

four or fi ve years, there wasn’t a lot of busi-

ness in concrete. You didn’t turn down any

jobs, period. You had to diversify in a lot of

ways to keep going,” Jerry said.

“I graduated in ’76. To keep me home,

we sold snowmobiles and quads and stuff .

We got out in ’88 when we bought the

other redi-mix plant.

“In 1996, I became owner of the com-

pany,” Jerry said. “My father handed over

an estate freeze.”

Th ree sons, Randy, Ryan and Colby

have shares as well. Th e fourth Swayze son,

Bradley, is working in Calgary and is not

active in the business.

Jerry’s wife Cynthia has also spent her

life as an entrepreneur. Cynthia and her

business partner (and aunt) Fran Spencer

took over a local restaurant known as the

A&M Drive-Inn in 1980. Th ey sold it

earlier this year.

“Th irty-some years in the food indus-

try is a long time. It was fast food and fi ne

dining. You could have a steak and lobster

and a drink at night,” he said.

“My sister, Verdeen Mathewson, has

been my controller forever,” Jerry said.

“She’s put her heart and blood into it as

much as anybody.”

GrowthIn 1988 Swayze’s established its fi rst

satellite location, just north of Moose

Mountain Provincial Park. It was known

as the Wawota branch, but now is referred

to as Carlyle. Th ey also have an offi ce on

Carlyle’s Main Street.

“We were a very small company

buying a big company. Th at happened in

2005,” Jerry said.

At the time, Swayze’s had eight to 10

employees.

“When we purchased Larsen’s, we

went to 35 to 40.”

“In 2006, we bought Borderline Grav-

el Ltd. and grew by another 12 people.

Today we’re over 100.”

Jerry said, “When you make a transac-

tion to buy out two companies like that,

you dream of having what we have now.

“It’s been a challenge to keep up.”

As part of the Larsen purchase,

Swayze’s added facilities in Assiniboia and

Gravelbourg. Th ey also have a wash plant

in Radville.

Page B2

Entrepreneurship in the Swayze blood

Top Job

Jerry Swayze

Job: EntrepreneurEducation/Training: Grew up in the businessPrior experience: Lifelong involvement in family businessQuote:

“It’s the good people: the admin staff, the drivers,

the operators, the labourers, the mechanics, etc. that contribute to

the success of the company.”

Above: Jerry Swayze from earlier days. Photo submi ed. Right: Current photo of Jerry Swayze at his shop. Photo by Brian Zinchuk

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Colby Swazye looks a er the company’s concrete pumps. Photos submi edRyan Swayze looks a er Stoughton and west. He does es ma ng and handles the track-hoes for the company.

Page B1“All our concrete aggregates come out of Radville and are processed in

Weyburn,” he said.

Th e company’s access to aggregates is widespread. “We are involved in

about 34 pits,” Jerry said. “Mostly we have control of them, under contract.”

“We have 1700 wheels on the ground,” he noted. Th ere are approximately

240 units in the entire fl eet. Th at includes 24 loaders, about 20 cement trucks,

three concrete pumps and two crushers. Th ey have close to 30 tractor units and

seven leased operators working with them. Th ere are about 60 trailers as well.

Oilfi eld involvementSwayze’s primary role in the oilfi eld is supplying aggregates used for pipe-

line sandpadding, sub-bases for pumpjacks, and leases.

“We do some excavation and hauling of contaminated soil,” he added.

“In the last three years it’s been pretty steady,” said Jerry.

Randy noted they also have done concrete work for a number of shops and

residences that have been linked to the oilfi eld.

Th e growing population in southeast Saskatchewan has meant a need for

more housing, and with it, more subdivision work.

“We’re getting huge into sewer and water, laying pipes and services,” said

Jerry. Th eir six excavators see a lot of work in that regard.

In Radville, they put in 25 lots. Alameda saw another 17. Arcola had 30

over the years and another 17 this year. Th ey’ve also done similar work in Car-

lyle. Page B3

Aggregates for the oil eld

Page B2“We’re doing a lot of infrastructure work for the City of Weyburn. We also

have eight to 10 small towns that call us on a fi rst-call basis,” Jerry said.

Indeed, they’ve found a need to supply housing for their own workers. Two

are staying in campers at their Carnduff location. Th ey’ve had to buy housing

to rent to staff as well.

“We’ve got a few places in town,” Jerry said.

Business changingFor a company whose operation was founded around concrete, ironically,

they are fi nding pouring concrete is now a smaller part of their business.

“Aggregates, excavation have grown. We’re still growing,” Randy said.

“In the last two years we’ve grown 80 per cent in sales, and this year, we’re

on track for another 30 per cent. Th ese are numbers we’re not used to seeing.

But we’ve got a lot of good people that help us. It all comes down to good

people.

“I wanted to make sure we put an emphasis on the fact that it’s the good

people: the admin staff , the drivers, the operators, the labourers, the mechanics,

etc. that contribute to the success of the company.”

RolesAs for the management roles, Jerry says he oversees everything.

“I manage the east half, from Stoughton to Manitoba, doing dispatching

and co-ordinating,” said Randy.

“Ryan does from Stoughton west. He does estimating and handles the

trackhoes,” Jerry said. “Colby looks after the concrete pumps.”

In Weyburn, Dennis Jones looks after dispatching and managing.

“We have Tom Sanders of Weyburn who looks after our crushing and

screening departments. We have Mike French who manages the Carlyle plant.

Bernie Fouillard looks after Assiniboia and Gravelbourg,” Jerry said.

Another key player is safety co-ordinator Tammy Sprecken, whose job

includes keeping the up to speed with everything from the company’s Certifi -

cate of Recognition program to numerous safety orientations for individual oil

producers. One producer, for instance, has three diff erent orientations.

CommunicationsWith such a widespread operation, communications are key. Swayze’s is

one of the few remaining companies that relies on the 10-4 system for SaskTel

Mobility, a push-to-talk service similar to Telus’ Mike service.

“We would be lost without it. We issue one of those to every one of our

guys,” Jerry said.

You can’t hear a radio in the truck when you’re standing at the back, he

pointed out. However, since the service is likely not going to be around a lot

longer, they need an alternative. Jerry has been told SaskTel is looking at an

app for smartphones that would allow them to move to a new system.

Th ese days, 3G-enabled iPads are a crucial business tool. “I can take it any-

where,” Randy said, pulling up their entire equipment list on a spreadsheet.

Future growth“We plan on building a new mechanic shop and offi ce in Carnduff and a

truck storage facility in Weyburn,” Jerry said.

Th ey are hoping to add onto the Carnduff plant and offi ce this year.

“We’ve outgrown that offi ce many times,” he said.

Asked about future growth, Jerry said they are always looking. Pointing out

that their head offi ce is in Carnduff , near the Manitoba border, he said, “We

would like to go east.

“We do crushing in Manitoba.”

Randy added, “We do supply a little bit of material there, but not a lot.”

As for other borders, the company has gone across the 49th parallel as well.

Jerry said, “We used to haul quite a bit into the States, to Sherwood, North

Dakota, 20 miles south. Our pricing got too high to go across the border with

the exchange rate and higher cost.

“I don’t know how many companies have poured concrete in two provinces,

one state and two countries at the same time,” he added with a laugh.

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By Brian ZinchukEstevan – Th e Bryson family has been thinking about it for several years,

and now they’ve pulled the trigger on setting up the newest accommodations

in the Estevan market.

Called the Canstay Motel, the new facility was being set up in mid-Sep-

tember, with its opening planned for later in the month.

Th e motel is similar to a camp in design, and an extended stay hotel in

concept. Room service will be provided once a week.

Th e operation is being run by Th eo Bryson, and his parents Greg and Lynn

Bryson. Th eo is a civil servant in Regina while Greg and Lynn both work for

SaskPower when they aren’t running the family farm.

“It’s been a long haul, getting all the paperwork done,” said Greg, standing

on the wind-swept prairie where the motel is located.

Th e site is 12 miles west of Estevan on Highway 18, and one mile south on

a grid road. It’s just north of their family farm, and the closest land they have

to the highway. Unfortunately, not many people are interested in selling land

along the highway, according to Greg.

“It took us three months to get the units in and then put into place,” Greg

said.

Th e motel is an implementation of the Saskatoon-based 3Twenty Solu-

tions shipping-container modular building system. As of Sept. 9, they had fi ve

containers in place, and another three on the way. Each container has two units,

with outside private entrances on each end. Th ere are no hallways.

Entering a unit, you fi nd a small triangular desk under the window. Th e

twin-sized bed has storage under it, and a fl at-screen TV with a built in DVD

player on a shelf above the foot of the bed.

Further into the room is a kitchenette with a fridge, sink, microwave and

cupboards. Finally, there’s a private washroom with a toilet and shower.

Th e moving and placement of the containers was done by Lampman-based

Extreeeme Transport, which has a truck with a special side-loading trailer

meant to load and offl oad containers.

Th ey are already have a second phase planned. Greg said, “If need be, we’ll

be putting in another row.”

Th at would add another eight containers, with 16 units, to the site.

“We’ve had a large amount of interest,” Greg noted. “If we were open (ear-

lier), we would have been full months ago.” Page B5

New motel made of modular components

Greg Bryson shows o the interior of the new modular hotel.


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Saskatoon – 3Twenty Solutions Inc of Saskatoon fi rst gained popular-

ity by making a pitch on CBC’s Dragon’s Den two years ago. Since then

they have been growing their business substantially. Th e Canstay Motel

west of Estevan is one of their most recent projects.

“It was a new design,” said Bryan McCrea, president. He added it was

a spinoff of a design they did for housing for an Estevan-based oilfi eld

services company.

“Th ere’s no question there’s not enough infrastructure to meet the

demands for housing,” McCrea said.

Th e company had proposed building and operating its own camp just

east of Estevan, but that project fell through, according to McCrea. “We

weren’t getting enough commitment. We had to pull back.”

Th e land has since been released.

“If we didn’t have so much going on elsewhere, we would have taken

another peek,” he said. “We’re doing a lot of work in Fort McMurray.”

Th e company has now added a rental division, he stated.

3Twenty builds new motel units Page B4

Th e interest has come from fracking companies as well as other major

projects in the area.

“Th ere’s lots of oil activity south of us,” Greg said, pointing out that trucks

drive by the site every day.

“It’s 15 minutes out of Estevan,” he said. It takes about as much time to

get to Boundary Dam Power Station, site of a major carbon capture project,

from their motel as it takes to get there from the far side of Estevan. Th at’s

where a lot of the recent hotel construction has been.

“Th ere’s so much interest in the immediate area. We’ve even had interest

from mines elsewhere,” he said.

If business dies down, the facility can be easily relocated elsewhere if

needed. By using durable shipping containers, they are expected to maintain

their integrity well. “Th ey’re not permanent structures, so it’s easier to move

them,” Greg said.

“For us, half a day’s work and the camp can be up and moved.

“It was Th eo’s idea originally,” Greg said. “We discussed it over coff ee

many times. We started crunching numbers and drew up a business plan. We

decided to take on this venture.”

“We’ve been thinking about this for quite some time,” he noted.

Th eo said, “My mother had an idea for a camp where people can bring in

RVs. We developed that into this.

“We liked the idea of being moveable and being able to take it wherever

the demand is.

“We saw it on Dragon’s Den. We priced it out and with some other pro-

viders. We found the value with the 3Twenty guys. Th ey made a good prod-

uct. We thought maybe we could make our own, but we thought it would be

better to buy them and focus on renting them out.”

Th eo attended the University of Regina Paul J. Hill School of Business

where he obtained a bachelors degree majoring in accounting. One of his

goals has been to run his own business. It’s one way to diversify the farm.

“It looks like a solid business plan. Let’s look at it and see what we can

do.”

Th e rates they intend on charging put it the Canstay at the more aff ord-

able end of the spectrum for temporary accommodations. Th e plan is to off er

weekly or monthly rates. Ideally, they are looking for long-term contracts.

Housing is a big part of oil company budgets these days, Greg noted.

“Th ey want long-term. Th at’s what the clientele is looking for.

“It’s private. You’re away from the hustle and bustle of the city,” Greg

said.

Having a private washroom is a plus, compared to dorm-style camps, he

noted.

As for the wind, which can be noticeable at times when standing outside,

he said “We’re setting up portable fencing for a shelter break until we get our

trees planted.”

Page B6


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Page B5Once inside a unit, however, one does not no-

tice the wind at all. Greg said the R-rating is “prob-

ably better than your house” for insulation value.

A new roadway approach was being construct-

ed, as well as a sewage lagoon, placed at a distance

from the facility.

Laundry facilities are planned for the future.

Finding adequate, good quality water was key

to the choice of location. While they could have

perhaps purchased a small acreage elsewhere for the

facility, they might not have found suffi cient water.

By setting up on their own land, and knowing they

have water, those issues are taken out of the equa-

tion.

“We checked into other possible sites closer to

Estevan, but with the pricing, it wouldn’t have been

feasible,” Greg said.

One key consideration for clients like frac com-

panies is adequate parking for their heavy trucks.

Being on the edge of a fi eld, they have all the park-

ing they could need. Gravel is being brought in for

that purpose.

Signage along Highway 18 is also planned.

Th e Canstay will off er Wi-Fi internet service

with boosters in each room. Th ere will also be a

SaskTel booster for improved cellular service on

site. While the rooms are capable of having lan-

dlines, Greg noted, “Everyone I asked said, ‘don’t

bother.’”

Cellular communications will be the order of

the day.

Th ere’s some picnic tables on the lee side of

the containers, and several barbecues will be made

available for client use.

There’s plenty of room to park around the new Canstay Motel.

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Editor's note: Boyle, Alta. – Th ou-

sands of people, includ-ing many workers from Saskatchewan, risk their lives each day on Al-berta’s Highway 63, the route between Edmonton and Fort McMurray. It has gained the moniker “Highway of Death” for good reason. Th ere has been a growing call to have the entire highway twinned, but progress has been slow.

On Aug. 23, a single vehicle accident occurred approximately 30 km south of Boyle. Th e rollover occurred on the opposite side of the road to where Chris Neitling, a retired paramedic from Preeceville, Sask, was travelling. Neitling now works in management in pipeline and facility construction in northern Alberta, and was on his way to Edmonton for meetings when the ac-cident occurred. He had to take evasive action into the ditch to ensure he didn’t get hit himself. Th e Toyota Camry was literally in mid-air as he passed it at highway speed in the opposite direction, with just the width of the northbound lane between them.

He pulled over im-mediately and rendered assistance. Having been a long-time paramedic in Saskatchewan for various local ambulance services and later as a pipeline medic in Sas-katchewan, Nova Scotia and Alberta, he’s no

stranger to these sorts of events.

Neitling himself received a commenda-tion for bravery from then-Governor-General Adrienne Clarkson for, along with his EMS partner Greg Bishop, having pulled a man out of a fl aming semi carry-ing liquid asphalt before it exploded. Th at event occurred on Highway 1 in Moose Jaw on May 17, 1997.

Even with such experience behind him, Neitling reports that the Highway 63 experience shook him up. He suspects the driver of the Toyota fell asleep at the wheel. Th e accident occurred at approximately 4:30 p.m. local time. Th e road was dry at the time, but a storm closed in as they were continuing to extri-cate the last two victims from the rolled over car.

Neitling said the oilpatch often gets a bad rap, but nearly all the people who pulled over to render assistance in this case were oilpatch work-ers, including personnel from Tervita and Hazco, along with an indepen-dent welder. Th ey were fi rst aid-trained and had the equipment to help. “Th ose in Lexuses drove by and didn’t stop,” he said.

Below is his highly detailed account of what he saw take place, as well as his actions and those of several other travellers who jumped in to help before

emergency services could arrive:

While travelling

southbound in the

west lane of Highway

63, in BCES Unit

0205, I, Christopher A.

Neitling, did notice a

brown four-door sedan

in the northbound/

oncoming lane. Th e

vehicle drifted onto the

shoulder (eastern ditch)

and then departed

the roadway surface

at highway speed. Th e

oncoming vehicle then

hit the approach on the

east side of the inter-

section of Highway 63

and township road 641

and launched off the

approach at an approxi-

mated angle of 30 to 40

degrees. It was airborne

for approximately 30

plus meters at which

time it nosed over and

dove grille-fi rst in a

near vertical manner

into the ground. Th e

vehicle then bounced

off its grille proceeded

to travel through the

air upside down for ap-

proximately 10 metres,

landing on its roof with

the front of the vehicle

facing south or op-

posite of the original

direction of its travel.

When the vehicle

landed on its roof, sev-

eral items of personal

eff ect ejected from the

vehicle’s interior and

trunk.

During the afore-

mentioned, I took

hard evasive action, by

emergency braking, and

took the west shoulder/

ditch to avoid a poten-

tial collision with the

oncoming vehicle. I

performed an emergen-

cy stop and then imme-

diately backed up on

the westbound shoul-

der to the area of the

vehicle’s fi nal impact. I

activated my four-way

fl ashers, departed the

vehicle and sprinted

across Highway 63 to

the vehicle which was

overturned as described

above.

Th e roof was se-

verely compacted. Th e

A, B, and C pillars of

the roof appeared to

suff er extensive dam-

age and compaction, to

the point I was unable

to see the occupants of

the vehicle.

At this point other

motorists had stopped

and I directed a by-

stander, a gentleman of

Middle Eastern ethnic-

ity approximately 5’4”

salt and pepper hair,

brown eyes, approxi-

mately 145 pounds

to call 911. He then

handed me his phone

and I called 911 where

I stated there had been

a one vehicle collision

with rollover with the

occupants entrapped.

I then gave the

phone to his son(?). I

proceeded around to

the passenger side of

the vehicle as I came

around the vehicle I

heard an infant cry-

ing faintly from inside

the vehicle. When I

rounded the rear of

the vehicle, I saw a

small female child

approximately 24 to

36 months old sitting

outside the vehicle,

she appeared unin-

jured physically but

was clearly dazed/con-

fused. She wasn’t mak-

ing any sounds; she

made brief eye contact

with me.

Page B8

Anatomy of a Highway 63 rollover


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Page B7

The aforemen-

tioned gentleman had

rounded the vehicle

from the front and

met me at the child’s

location which was

directly beside the

passenger’s rear door

approximately two

feet from the vehicle,

where she was sitting

partially on what ap-

peared to be a back-

pack. I directed the

gentleman to take the

girl up to the road and

attend to her, to keep

her from going into

shock and ensure she

is kept warm.

He took the child

found outside the ve-

hicle (child No. 1) up

to the road way clear

of the vehicle as, we

(those who stopped)

were uncertain as to

whether the vehicle

was going to burn. I

got down on my hands

and knees and crawled

partially through the

passenger back win-

dow (smashed out

on impact). I cleared

away several pieces of

personal items, includ-

ing bags and what

appeared to be part of

a booster seat when I

found two adult legs

orientated in supine

position. I observed

an ankle bracelet and

determined from

skin coloured, and

determined the legs

belong to a woman of

East Indian/Pakistani

ethnicity. It was at this

point I saw the small

left arm and hand of

a child, it appeared

listless, and there was

debris covering the

rest of what appeared

to be a child. Behind

the debris and per-

sonal effects, I heard

what I assumed to be

a male.

I cleared away the

debris and observed

the following:

1.) A small female

child 12 to 24 months

old (child No. 2) lying

supine on the interior

roof of the vehicle.

2.) A heavy set

male who was balled

up in what was the

driver’s seat with

his posterior firmly

against the steering

wheel, his legs balled

up and his chest pro-

truding into the back

seat area with his up-

per chest and his head

resting on child No. 2’s

chest and abdomen in

a prone manner.

3.) An adult fe-

male, lying supine on

the interior roof liner

of the vehicle with

her head not far from

what was the centre

console of the front

seat area and her feet

out towards the rear

passenger window.

The adult male

was entrapped and

was struggling to free

himself; he was put-

ting his weight repeat-

edly on child No. 2.

She appeared listless,

obtunded and wasn’t

neither moving nor

crying at this point.

The adult male was

in a state of panic and

was speaking rapidly

in language I assume

to be Pakistani or

Punjabi.

I made the deci-

sion that it was es-

sential to attempt to

extricate the male to

get him off child No.

2 as she was clearly in

distress.

I then went up to

the roadway and called

for a pry bar, a welder

in a black Chev weld-

ing rig stopped and

gave us a six-foot heavy

duty Cat bar. I went

back down into the

ditch and went directly

to the driver’s front

door and attempted to

pry it open but was un-

able to get a purchase

point.

I then went to the

passenger’s front door

and with the help of

“Dawda,” an African-

Canadian gentleman of

muscular build ap-

proximately 5-foot, 10-

in., shaved head with

silver earrings bilater-

ally, approximately 195

pounds, and a taller

slender gentleman

of Slavic origin. We,

the three of us, began

prying the passenger

door open as best as

possible. We started

at the bottom middle

of the car door and

worked our way around

to the locking mecha-

nism when the sheet

metal and structure

of the door tore open.

Th is took somewhere

around fi ve minutes. I

was unable to obtain a

purchase point with-

out risking the pry bar

slipping and hitting

the adult female victim.

With the sheet metal

pried away from the

passenger rear door,

I got down, reached

upside down into the

vehicle, found the door

handle and opened the

door partially, I then

got up, stepped back

and we reefed the door

open.

Page B9

Pry bar used to extricate man who was trapped on top of small girl


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Page B8We then moved

around to the rear

driver’s door, I grabbed

the handle and reefed

the door open and bent

it out of the way.

We moved to the

driver’s front door and

proceeded to open it

when we noticed the

male victim, who was

still in the position as

described above, had

his left hand out of

the vehicle and it was

wedged between the top

of the door frame and

ground. We instructed

him to move his hand

and once his left hand

was clear, we reefed

the door open as hard

as we could. Th e door

opened, the entrapped

male repositioned him-

self slightly and then

literally fell out of the

vehicle sideways in a

limp, uncontrolled man-

ner, resembling a bag of

potatoes falling over.

Shortly after the

male victim sat up, near

the driver’s rear door

child No. 2 began crying

and kicking vigorously.

We instructed the male

to tell child No. 2 not

to move. I then directed

the Middle Eastern

gentleman caring for

child No. 1 to return

the child to the male,

who I assumed was both

children’s father. Child

No. 1 was returned to

the male and he pro-

ceeded to comfort her.

He appeared to have a

substantial laceration to

his left hand (not life

threatening).

Sometime during

this point, I updated

911 dispatch that all

four victims were at this

point stable and con-

scious. Th e welder left

and the Middle Eastern

gentlemen who gave me

his phone and cared for

child No. 1 departed the

scene with his son.

A female bystander,

slim, wearing “skinny

jeans” with a white

studded belt and a plaid

button shirt, mousy

brown hair crawled into

the driver’s front and

attempted to give fi rst

aid to the adult female

victim who appeared to

sustain multiple facial

traumas of a non life

threatening nature. A

heavy set gentleman

wearing a white T-shirt

and a well worn safety

vest attended to the cut

on the adult male’s left

hand.

A small grey sub-

compact vehicle arrived

on scene, we motioned

them to leave, and then

a young female EMT

in an EMS uniform

departed the vehicle. I

gave her a report and

stepped back to allow

her to do her job.

Shortly thereafter

the fi rst EMS ambu-

lance arrived and I gave

a report to another

male EMT, the EMS

scene supervisor(?), I

identifi ed myself as a

retired paramedic, and

explained what we had

done prior to his arrival.

It was at this point a

heavy rain shower with

lightning descended on

the scene.

Page B10

Patch workers stop to assist trapped family

There's a lot of ac vity going on around Enbridge's Cromer, Man., terminal. This picker and excavator could be found driving past it on Sept. 12. Photo by Brian Zinchuk.


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WHERE ENERGY MEETS SAFETY

Page B9Two RCMP cruis-

ers approached the

scene from the south

on Highway 63. When

the two constables

approached, I flagged

them down, and

proceeded to explain I

had witnessed every-

thing first hand. It was

at this point I became

emotional and was

unable to speak. Cst.

Hayley Scott, Redwa-

ter Detachment, then

took my particulars

and my driver’s licence

and asked me to sit in

my vehicle.

I sat in my vehicle

for about five min-

utes and saw another

crew vehicle with

two people carrying

a large orange tarp.

I got out of the ve-

hicle and went back

to help hold the tarp

as it was raining very

heavily at this point.

EMS and fire/rescue

were using hydraulic

extrication tools to

get the adult female

out by cutting off the

driver side doors. We

then moved the tarp

over to the passenger

side of the vehicle and

EMS with fire/rescue

began cutting apart

the passenger side to

get the female victim

out. Sometime dur-

ing this extrication, I

witnessed one of the

children being carried

on a spine board to an

ambulance and then

witnessed it departing

north towards Boyle,

Alberta on Highway

63.

Shortly after I saw

Cst. Scott approach

my vehicle looking

for me. I flagged her

over to where I was

still holding the tarp.

We, Cst. Scott and I,

returned to my vehicle,

where I gave an audio

statement as my hands

were shaking.

My audio state-

ment concluded at

1610 hours MST

23/08/2012 and I

departed the scene

shortly thereafter.

Editor’s Note: Red-water RCMP Cpl. Guy Perreault told Pipeline News the victims of the crash sustained minor injuries. All four were checked at hospital and released. No cause of the incident was given and while a collision reconstructionist was consulted, they did not attend.

Cpl. Perreault said twinning Highway 63 “would def initely be a good idea. We have had our share of fatal colli-sions on this highway.”

Bad weather arrives at same time asemergency services

This service rig was sighted near Redvers on Sept. 12.


By Brian Zinchuk

Redvers – Th e year Gary “Puff y” Cameron fi rst

started pipelining, Canada was still fi ghting the

Korean War. Now, just shy of six decades later, he’s

still at it.

Cameron is currently the senior welding

inspector for Enbridge on its Bakken expansion

project, based in Redvers.

A welder by trade, Cameron fi rst started

pipelining in 1953 at the age of 15. “Th at was with

TransMountain, or TMX. I was a labourer,” he said

while seated at his desk in the Redvers Enbridge

offi ce before heading out into the fi eld. True to

form, he was wearing overalls.

“I worked on the fi rst and the last TMX. Now

there’s talk of a TMX expansion in 2014.

“Back then, I was a welder’s helper. In those

days, it was all American welders. We only had

about six Canadian pipeline welders in the country.”

Cameron, himself, started welding in short

order in 1954. Th e pay was enticing, he noted. Back

then, welders weren’t paid by cheque, but by a pay

packet of cash. “I happened to see a welder’s pay

packet,” he recalled.

Th at led to the decision that “I’m going to be a

welder.

“Th is is pretty intensive work now. I love it. I

wouldn’t change it,” Cameron said.

He’s 74 years old, but Cameron is quick to

point out, “Th at’s only a number.”

Page B12

Gary “Pu y” Cameron has spent 59 years in a pipeline career that has seen him visit 64 countries and he has no inten ons of qui ng. He’s s ll married to the same woman.

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GaryCameron


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In the business of pipelining since 1953 Page B11 When he got into welding, there was no such thing

as a journeyman ticket for his trade. He worked under a red ticket from the

Department of Public Works.

Methods have progressed over the years. “I’ve done all those things – va-

pour latch and granny rag. You poured it in a fi ve gallon pail and ran paper

through it,” he said of a now-obsolete coating method.

“I’ve worked every aspect, from truck driving to winch truck. Welding is

my forte,” he said.

One of the innovations over the years is the use of machines to weld the

pipe. But don’t call it automated, as Cameron said, “Mechanized welding is not

‘automated welding.’ You still control the machine.”

Mechanized welding had made it a lot easier to have a longer career. “It’s

not as demanding on the body. It adds 10 to 15 years to a pipline career.”

Th at’s important, as he explained welding is essentially a “young man’s

game.”

“You welded in the rain and wind.”

To do a proper weld around a pipe requires the welder to at times nearly

stand on their head to get the job done right. Cameron noted the need for

great manual dexterity.

“You adapt to whatever is put in front of you. Th e X-ray on the hill is the

same as the X-ray on the fl at,” he said of the quality assurance inspection.

He fi rst saw mechanized welding in 1973 while working on the North Sea.

It took until the late 1970s and early 1980s for the practice to take hold on the

Prairies.

Cameron started working as a pipeline inspector in 1974, with Bechtel in

Montreal.

Pipeline work is highly cyclical. Th ere are spurts of intense activity in

Canada, and then long lulls lasting many years.

As a member of the United Association of Journeymen and Apprentices

of the Plumbing and Pipe Fitting Industry of the United States and Canada

(UA), working with non-union outfi ts was problematic. “Th at was the basic

reason I started working overseas,” he said. He couldn’t work with companies in

Canada that weren’t UA-certifi ed.

When there wasn’t work in Canada, it was time to hit the airport. To list

all his overseas experience would take up most of this page. Just a short sample

includes England, Scotland, Norway, Denmark, and eight years in Yemen. Th en

there was Iran, Iraq, Kuwait, the United Arab Emirates, and Indonesia.

“I won’t work in Saudi [Arabia],” he noted, not appreciating the politics of

the place.

“I’ve spent time in 64 countries,” Cameron said. To put that in perspective,

that’s roughly one-third of the United Nations.

“I didn’t enjoy sitting in an airport with armed guards and a military escort

when working, but hell, we had that in Quebec!” he said.

Over all this time Cameron has been married to the same lady, Darlene.

Th ey got married 53 years ago. Th at’s a rarity in an occupation where divorce is

extremely common.

“I was only home about 15 years of that,” he said. “You have to have a spe-

cial woman to be a pipeliner. She raised four kids by herself.”

“She stayed home with the kids,” he said. Home is now Kelowna, B.C., but

they spent many years in the Lower Mainland.

There were plenty of axle's under this load as it pulled onto highway 39 west of Este-van. Photo by Brian Zinchuk.


Redvers – Th e last time Pipeline News encountered David Greyeyes,

he was instructing students in a 2009

on how to operate excavators on a

large pipeline during training pro-

gram that year. Th ese days the excava-

tor operator from Muskeg Lake is

still running hoe, but he’s not digging

ditch.

Instead, Greyeyes is loading pipe

trucks at the pipe yard just east of

Redvers. Th is type of work used to be

done by cranes or sidebooms, but an

interesting piece of technology has

allowed an excavator to step in.

Instead of a bucket, a large vacu-

um called a vac-lift is attached to the

end of the excavator’s arm. Th rough

a single hole, it can generate enough

suction to pick up a 16-inch diameter

joint of pipe. Th e operator can then

manipulate the pipe onto the string-

ing truck without the need of tag

lines to control the ends of the pipe.

“It’s a lot easier than digging

ditch,” Greyeyes said.

“You get a lot of control with it,

and you don’t need guys hanging on

the end with a rope.”

Greyeyes has been pipelining for

the last fi ve years. “I do a little con-

tracting on my own back home, too,”

he said.

Th at includes doing some sewer

and water work.

“I did a bunch of water and sewer

at Muskeg Lake on my own last year.

I’m going to do more after this job,”

he said.

For this work, he typically rents a

machine.

Greyeyes spent many years work-

ing with North Battleford-based Uni-

con Pipeline, doing sewer and water

work in many northern communities.

Most of his work these days

is around Regina. He spent a year

running an excavator at the Regina

refi nery complex. Th is is his second

year running a vac-lift.

Th e 2009 program for which he

was an instructor was borne out of

the Enbridge Alberta Clipper project.

It was done in partnership with Local

870 of the International Union of

Operating Engineers, with the inten-

tion of training First Nations people

how to run heavy equipment on big-

inch pipelines. One of his students,

Nina Stonechild, who was profi led in

Pipeline News at the time, now runs a

crane and is in regular contact.

Another student was running an

excavator on cleanup in the fall of

2009, while yet another ran a dozer.

A decade earlier, Greyeyes, him-

self, was a student of a similar train-

ing program off ered by IUOE. In the

time since, the student became the

instructor.

David Greyeyes has progressed from being a student over a decade ago to now running one of the more chal-lenging pieces of equipment on a pipeline.

Photo by Brian Zinchuk

Excavator operator

Top Job

David Greyeyes

Job: Pipeline excavator operatorTraining/Education: Operating Engineers Training Institute of SaskatchewanPrior experience: A decade of working in sewer and water projects. Prior to working as an excavator operator, David Greyeyes was a native special constable with the RCMP for seven years.Advice on getting into this line of work: “There’s always lots of work. If you don’t mind being away from home, it’s not a bad career.”


Redvers – When Enbridge built its Alberta Clipper pipeline in 2008-2009,

the contractors had to skip over part of their usual safety briefi ng – how to set

up a helicopter air ambulance landing site. At the time, there was no helicopter

air ambulance working in the province.

Th at’s changed now, with the advent of STARS helicopter air ambulance

serving southern Saskatchewan as of this past spring.

It also provides some reassurance, given that just as the major pipeline

project was hitting its stride, one of the nearest hospitals, in Arcola, had to shut

down its emergency room due to a lack of medical staff .

Th ere are three mobile treatment centres (MTC) on the job, each with

emergency medical technicians, according to Cindy Timinisky, safety inspector

for Enbridge.

“Th e response time needs to be within 20 minutes,” she said.

Th e MTCs follow the crews and keep an eye on high risk locations, such

as the main welding gang.

It’s important to have staff who know where to go. “Th e medics have to be

comfortable with shoefl ies and access roads,” she said.

A shoefl y is a pipeline term for a road that leads to the pipeline right-of-

way. Shoefl ies are typically numbered sequentially from the start of the project

(the “kickoff ”) to the end. Municipal ambulance staff may not be as intimately

familiar with the right-of-way as those EMTs working on the project. As a

result, the on-site EMTs will often transport injured workers off the line and

intercept an incoming municipal ambulance. Page B15

Enbridge project can now call on STARS if needed

Cindy Timinsky is Enbridge’s safety inspector for the Bakken expansion project.

James Ste enhagen conducts an orienta on with new hires for Surerus Pipeline Inc.MTC.


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Page B14Th e addition of STARS to the mix allows for another option. Enbridge

has registered landing sites to correspond with shoefl ies along the right-of-way.

Th is allows STARS pilot to fl y directly to the pre-registered site if needed.

It’s the fi rst major pipeline project in Saskatchewan that has had the capa-

bility of calling in STARS, if need be. While the site registration program, and

its corresponding medical advice assistance, has been around for a long time,

this is the fi rst time a helicopter can be called in this region.

Other safety pointsTh is project has seen the implementation of a new mandatory glove policy

for fi eld work. Enbridge also has a no-cellphone policy while driving. Not even

speakerphones are allowed.

Th ere are approximately 450 crossings, including roads, power lines, under-

ground cables and hotlines. All underground crossings are hydrovac to “day-

light them,” e.g. allowing them to be visible to workers.

Due to very dry conditions, they’ve had to be cognizant of fi re hazards,

with Timinisky noting even a truck’s exhaust can start a fi re.

A typical safety orientation takes about three-and-a-half hours, according

to James Steff enhagen, who’s the lead for safety for Surerus on this project.

“My orientations are all about history. Reading from a book is boring,” he

said.

While there’s a saying that goes, “keep it under your hat,” Surerus takes this

literally. Th ey require all employees to have a medical information in a plastic

pouch stuck inside their hard hats. Th at way fi rst responders have a medical

history at hand immediately should a medical emergency come up.

Steff enhagen said the policy came from an incident six years ago. Sure-

rus was working on a pipeline parallel to another contractor. An 18-year-old

working with that other contractor died on the job. Th e fi rst person called was

Surerus, because even though they weren’t the contractor this man was working

for, their signage was the most visible. After that, the superintendent wanted

identifi cation on everyone.

A mobile treatment centre could be found alongside the Enbridge right-of-way near Alida.

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Redvers – Th e second of a series of four hotels under construction in south-

east Saskatchewan opened just days before the start of construction of Enbridge’s

Bakken expansion pipeline project, with hundreds of workers coming to Redvers

to work for several months.

Th e Western Star Inn and Suites is located on the northeast corner of Red-

vers, in a new development that also houses a new John Deere dealership and

PTI’s Redvers Lodge. It was preceded by Carlyle’s Western Star earlier this year.

Esterhazy is expected to open in October or early November, and Stoughton is

slated for next spring. Th e three hotels, excluding Esterhazy, will form a string

along Highway 13 in one of the key areas of development for the Bakken.

Th e hotel has 64 rooms. Th at’s down one room from Carlyle, as they have

converted one room on the main fl oor into a commercial kitchen. Th e idea is to

off er clientele meal services akin to a camp, with three meals a day at an added

cost to the regular room rate.

It’s not a restaurant open to the public, however. Th e service is for guests only.

It will follow a weekly meal plan and be more of a smorgasbord in nature.

As for the guest rooms, there are 23 double queens with full kitchen, 12 kings

with full kitchens, four Jacuzzi rooms, four barrier-free rooms, and 21 double

queen standard rooms without cooking facilities.

“Kitchen rooms fi ll fi rst,” explained Carla Eagan, general manager of the

Redvers location. However, there are still request for standard rooms due to the

lower rate.

Th e hotel opened July 19, and a grand opening was held the following week.

“It was a huge success. We had a barbecue. We brought in a chef to prepare

dining,” Eagan said.

Just under $800 was raised for a playground in town.

Th e reception from the community was great, she added, with approximately

75 people attending. “Th e local people have been excellent. Th e town has been

exceptional. Th e response has been amazing.”

Business was slower in July, but got busy in August. “Now in September,

we’re fi lling up,” she said on Sept. 14.

“As the weather gets colder, we’ll see more people in trailers looking for

rooms.”

While there’s a major pipeline project in town with hundreds of workers,

much of their business has actually be coming from other clientele, such as frac

crews and tradespeople working on a new development in town. Weekends see

wedding clientele.

“Th e pipeline was only responsible for a steady 15 to 20 rooms,” she said.

Th e new hotel employs 10 to 12 people. Th ere was better local response this

time around, Eagan noted.

Western Star opens Redvers location in time for pipeline

The new Western Star Inn & Suites in Redvers is the second of four similar hotels being built in southeast Saskatchewan. This is the front desk of the Redvers Western Star Inn & Suites.

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Tyler Bradley is pictured at WestCap Mgt Ltd.'s downtown Saskatoon o ces. Photo by Josh Schaefer

Top Job

Job: Investment ManagerEducation/Training: Bachelor of commerce from the University of Saskatchewan, chartered nancial analyst candidate, technology commercialization post-secondary graduate internshipPrior Experience as an Investment Manager:Before working for WestCap Mgt Ltd., Bradley worked in a corporate nance roll with companies that were involved in the agricultural sectorAdvice on getting into this line of work:“I think it’s important to keep an interdisciplinary approach in terms of your education. It’s helpful to stay broad and if you can draw on multiple disciplines from geology and engineering to nance it really makes for a powerful combination.”

TylerBradley

By Josh SchaeferFreelance Reporter

Saskatoon – Th e thrill of the deal is what keeps Tyler Bradley of Westcap

Mgt Ltd. excited about his job from day to day.

Bradley is an investment manager for Saskatoon-based Westcap overseeing

a $60-million oil and gas portfolio, a majority of which represents the Sas-

katchewan oilpatch.

Westcap is a private equity fund manager with $500 million in assets under

management, that invests in small and medium-sized companies across a range

of industry sectors from health care and agriculture to manufacturing and

energy.

Page B19


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For the thrill of the deal Page B18

As an investment

manager, Bradley is

“constantly meeting new

people with fascinat-

ing business ideas and

working with them to

realize their vision.

“We invest in both

service companies and

exploration and produc-

tion companies,” Brad-

ley explained, noting

they typically invest in

the range of $1-million

up to $20-million per

company.

“In the oil and gas

sector, we focus mostly

at the start-up stage.

We’ll typically invest

with companies that are

raising anywhere from

$10-to $50-million

initially and work with

them to grow that com-

pany into a $100- to

$200-million enterprise

over a three to fi ve year

period and ultimately

sell it.”

Bradley spends a

large part of his time

researching emerging

oil plays in Saskatch-

ewan and Manitoba by

watching the land sale

and drilling activity, as

well as staying in touch

with his networks in the

oilpatch.

“We work closely

with our current or

prospective investee

companies that are

seeking capital,” Brad-

ley said, “and we spend

the time to understand

the economics of their

projects.”

A company will

usually seek Bradley

with a business plan

which he reviews. Once

he scrutinizes the plan

in detail to assess the

risk, it is benchmarked

against the market to

determine if it is a viable

deal.

“Th ere is a lot of

legal documentation

and fi nancial reporting

that comes with all of

that, so you need to be a

details-oriented person.”

Upon graduating

from the University of

Saskatchewan with a

bachelors of commerce,

Bradley was involved in

a post-graduate intern-

ship at Golden Oppor-

tunities Fund where he

was introduced to the

private equity business.

Since then, he has kept

corporate fi nance his

main line of work for

more than 10 years.

His primary focus

for the last fi ve years has

been the Saskatchewan

and Manitoba oilpatch,

but he continues to be

involved part-time in

the healthcare, agricul-

ture and manufacturing

sectors.

Although Bradley

now builds fi nancial

models in his downtown

Saskatoon offi ce, he

does have some hands-

on experience in the

oilpatch. While attend-

ing university, Bradley

worked for an oilfi eld

construction company

in Gull Lake, Sask.,

stringing and bucking

pipe for new pipelines.

“I’ve always had a

lot of interest in this

space and have built up

a knowledge base in this

sector over the past fi ve

years,” said Bradley.

Westcap under-

stands that the oilpatch

is cyclical and adjusts

their investment port-

folio weighting in the

energy sector and the

types of deals that they

are doing based on the

market.

“You need to un-

derstand the geological

and engineering side of

the business,” explained

Bradley, adding that

they rely on third-party

consultants to help as-

sess the risk on spe-

cifi c deals that they are

working on.

“From an invest-

ment point of view,

the one thing that sets

oil and gas apart from

any other industry in

Saskatchewan is the

magnitude of merger

and acquisition activity.”

Bradley explained

that there can be bil-

lions of dollars in oil

and gas related merg-

ers and acquisitions in

Saskatchewan every

calendar year.

“Th e oilpatch has a

strong culture of build,

sell, repeat and we’ve

been pretty successful as

a result of that business

model of build, sell,

repeat.


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Forth Worth, Texas – At the Williston Basin Pe-

troleum Conference in Bismarck, North Dakota in

May, IHS-CERA analyst David Hobbs projected

that the Bakken play as a whole would reach one

million barrels of oil production per day by 2020. It

was a reinforcement of a prediction he had made at

the conference held two years prior.

It seems that number has strong support,

because the railway that runs through much of the

North Dakota and Montana Bakken play an-

nounced Sept. 4 that it now has the capacity to ship

exactly that much oil by rail.

Fort Worth-based BNSF Railway (BNSF)

stated that it has increased capacity in 2012 to

enable the railroad to haul one million barrels per

day out of the Williston Basin in North Dakota

and Montana. Th is increased capacity will allow the

energy industry to continue the record expansion

of oil production in the Williston Basin and to ship

the new production to markets throughout the U.S.,

the company said.

Th at one million barrels per day capacity is

enough to handle every drop of oil expected to be

produced in North Dakota in the coming years. It’s

also enough to preclude the use of any oil pipelines,

despite the fact that Enbridge has been actively

expanding its pipeline network in the region and

TransCanada’s proposed Keystone XL pipeline is

supposed to have a “Bakken on-ramp.” Canadian

Pacifi c Railway also has crude-by-rail shipping

capacity in the North Dakota Bakken.

Th e BNSF expansion will also benefi t shippers

of other commodities, including agricultural prod-

ucts, according to the company.

“Historically, oil and gas producers have used

pipelines to transport crude from production to

refi neries and ultimately on to end users,” said John

Lanigan, BNSF executive vice-president and chief

marketing offi cer in a release. “Because this shale

development growth came about so quickly, there

has been a shortage of pipeline capacity to deliver

production from new unconventional sources to

coastal refi ners. BNSF has responded quickly to en-

able producers to move crude to the most attractive

markets and secure the best prices.”

Page B21

BNSF expands Bakken oil transport


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Today, through direct and inter-

line service, BNSF’s network reaches

all major coastal and inland markets,

and it directly serves 30 per cent of

U.S. refi neries in 14 states. BNSF

currently has 1,000 miles of rail line

in the Williston Basin area and serves

eight originating terminals with two

more scheduled to be completed by

the end of 2012. BNSF connects to

16 of the top 19 oil producing coun-

ties in Central and Western North

Dakota, and fi ve of the six oil produc-

ing counties in Eastern Montana.

“BNSF has been hauling Bak-

ken crude out of the Williston Basin

area for over fi ve years. In that time,

we have seen the volume increase

nearly 7,000 per cent, from 1.3 mil-

lion barrels in 2008 to 88.9 million in

2012,” said Dave Garin, BNSF group

vice-president, Industrial Products.

“We see this trend continuing and we

are committed to serving this growing

market now and in the future.”

BNSF has been able to achieve

this increase in capacity due to in-

creased investment, maintenance and

hiring eff orts.

BNSF is investing $197 million

in 2012 on projects in North Dakota

and Montana. Some of those projects

include 2,188 miles of track surfac-

ing, two new inspection tracks, raising

track at Devil’s Lake, replacement of

121 miles of rail and about 332,000

rail ties, as well as signal upgrades and

equipment acquisitions.

Since 2011, BNSF has hired

more than 560 new employees to

fi ll existing and newly created posi-

tions in North Dakota and Montana.

Th ese employees include crews to

help deliver the inbound freight that

supports drilling eff orts and the out-

bound crude to destination markets

throughout the U.S.

In addition to hiring new em-

ployees in the fi eld, BNSF has also

formed a dedicated unit energy desk

that works directly with customers to

help co-ordinate and plan unit train

movements to and from the Williston

Basin. With an expanded team, the

Unit Energy Desk provides customers

a single-source point of contact for

their rail operations planning needs.

BNSF has also employed numer-

ous effi ciency enhancements to in-

crease capacity on routes into and out

of the Williston Basin. Th ese include

working with customers to increase

train sizes from 100 to 104 tank cars

and in some cases up to 118 tank cars,

adding signalization and sidings along

key routes, and identifying and devel-

oping the most effi cient routes.

WestFire Energy

Ltd.’s average produc-

tion soared in the second

quarter, as did its net

income over the three-

month period year-over-

year.

Th e company’s

output during the period

climbed to 11,549 boepd

from 3,308 boepd dur-

ing the same period last

year. Net income during

the quarter rose sharply

to $17.51 million from

$4.39 million in the

prior year’s quarter.

During the second

quarter, the company

drilled 25 (21.6 net)

Viking horizontal oil

wells: 15 (12.6 net) at

Redwater, eight (eight

net) at Plato and two

(one net) at Lucky Hills.

Year-to-date, Westfi re

has drilled 82 (72.9 net)

Viking horizontal oil

wells: 47 (43.4 net) at

Redwater, 24 (24 net) at

Plato and 11 (5.5 net) at

Lucky Hills.

Drilling during June

and July was minimal as

required annual mainte-

nance and recertifi cation

of drilling rigs was being

performed. Th is pause

allowed the company

to fi ne-tune its capital

program with plans of

restarting drilling activi-

ties in August. Current

production exceeds

11,000 boepd.

In August, Guide

Exploration Ltd. and

WestFire jointly an-

nounced the acquisition

of WestFire by Guide

in an all share merger

transaction to become an

intermediate oil and gas

company renamed Long

Run Exploration Ltd.

(DOB Aug. 9, 2012).

Th e application of

WestFire’s internally

developed modifi ed hot

frac (MHF) technique

in its operated areas of

Redwater and Plato

has generated marked

improvements in pro-

duction rates for the

fi rst half of 2012. Th e

company has identifi ed

opportunities to use the

MHF technique to work

over a select group of

older marginal produc-

ing wells in the Redwa-

ter area. Five wells that

have been refractured

to date have shown an

average initial 30-day

production increase of

50 boepd per well to 75

boepd. WestFire expects

to use this workover

technique on other

underperforming wells

in its producing areas.

Th e company also ex-

pects to apply the MHF

completion technique

on its extensive drilling

inventory at Dodsland,

Saskatchewan, and

Provost, Alberta, once

the development activi-

ties are extended to these

areas.

WestFire presently

holds 244 undeveloped

net sections of land on

the Viking play contain-

ing in excess of 1,000 net

risked (3,800 unrisked)

prospective horizontal

development locations

representing an esti-

mated eight year (risked)

drilling inventory at the

company’s current rate of

activity.

WestFire applies modi ed hot frac with success


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volume of traffi c on

unpaved roads, he said,

noting some roads near

Killdeer, N.D. have 400

to 500 semi loads a day.

“Before, it was a

school bus. A busy day

was going to church on

Sunday,” Schwindt said.

Th e dust impacts

vegetation and people’s

safety due to visibility.

Mackenzie County has

a $1.3 million budget

for dust control alone.

As such, the re-

search council is looking

for solutions.

Some of the param-

eters include it must be

easy to apply and main-

tain, last a year, and be

cost-eff ective, preferably

inexpensive.

“Th is is a wish list,”

he said. “It has to be

safe for the traffi c and

environment.”

Existing methods

include using water,

magnesium chloride or

calcium chloride. Th ey

are also looking at soil

stabilizers, synthetic

polymers, enzymes,

petroleum emulsions,

lignin sulfonate, oilfi eld

brine, crude oil and

aggregate modifi cation.

Bio-based oils such

as those made from soy-

beans resulted in cows

trying to eat it.

Th ey are reviewing

the diff erent technolo-

gies and have applied

nine diff erent products

in half-mile test seg-

ments.

Some products

weren’t used, like the

aforementioned tasty-

for-cows soybean oil, or

they were very expen-

sive or diffi cult to use.

As for crude oil,

of which there is a lot

in North Dakota these

days, they tried mixing

it with aggregates and

clays. Th ey tried light

Bakken crude, medium

Red River crude and

heavy Tyler crude. Th e

Tyler was so heavy,

Schwindt said, “We had

to set it in a water bath

to warm it up.

Th ey found using

one to two per cent

crude by weight in a

gravel aggregate con-

trolled dust. But at 40

barrels per mile, and at

$100 per barrel, that

equates to $4,000 per

mile for dust control.

On the other hand,

magnesium chloride

was about $8,000 per

mile.

Another method,

using three to four per

cent scoria, by weight,

was needed. Scoria is a a

baked clay.

As for Bakken

crude, they found it

has too many volatile

fractions, and its scale

weight decreased as it

evaporated. Th ey needed

to test the ditches to see

if there was signifi cant

runoff of the oil.

“Good gravel is

scarce and we bet-

ter take care of it,”

Schwindt said.

“Magnesium chlo-

ride is the chemical of

choice. Scoria should

only be used on low

traffi c volume roads

such as well-pad sites,”

he concluded.

Keeping down the dust

Tyler heavy crude was tried as one method of controlling dust on roads. Francis Schwindt spoke about dust control methods being experimented with in North Dakota.

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Innovation Assured.Value Delivered.

Calgary – Western Plains Petro-

leum Ltd. has a good news-bad news

story to tell with the release of its

second quarter and six month fi nancial

and operational results of 2012.

Th e mixed outcome reported on

Aug. 23 is due to the fact that the

Lloydminster-based heavy oil producer

increased its fi nancial losses in the

quarter despite boosting oil production

and revenue.

Th e company reported a loss of

$452,973 for the three month period

ending June 30, 2012 compared to a

loss of $199,871 in the same period of

2011.

Th e increased loss was due in part

to a $95,779 increase in Crown royal-

ties to $243,377 in the second quarter

from $147,598 in the 2011 period, trig-

gered by higher volumes and prices.

Revenue for the second quarter

of 2012 increased to $915,504 from

$786,793 for the second quarter of

2011 due primarily to increased vol-

ume.

Th e company could have earned

more money in the quarter had it not

been for a decline in the average heavy

oil price of $60.20 compared to aver-

age oil prices of $71.79 in the second

quarter of 2011.

Th e company averaged 167 barrels

oil per day compared to an average of

120 bpd per day for the second quarter

of 2011.

Western Plains produced an aver-

age of 148 bpd in the fi rst six months

on 2012 compared to 121 bpd over the

fi rst half of 2011.

Th e increase in production came

from new wells drilled in mid-2011

and one (0.5 net) well drilled in the

Landrose area of Saskatchewan in the

fi rst quarter of 2012.

Production gains also resulted from

the reactivation of wells that were shut-

in for repairs or workovers in the fi rst

quarter of the year.

Th e repair costs completed in the

period from March to May 2012 in-

creased production costs leading to the

average of $39.97 per barrel for the fi rst

quarter of 2012 and $36.65 per bbl. for

the second quarter. Higher propane

and other winter operating costs also

contributed to the higher average in the

fi rst quarter.

In other fi nancial news, the com-

pany’s credit facility agreement with a

Canadian chartered bank consisted of a

revolving operating facility limit of $2.2

million with interest at bank prime plus

1.5 per cent at June 30, 2012.

Th e company also had a develop-

ment facility limit of $300,000 with

interest at bank prime plus two per

cent. Western Plains had drawn $1.63

million on the revolving operating

facility at June 30, 2012.

Western Plains found itself in

breach of the working capital covenant

prescribed in the loan agreement with

the bank at the end both quarters of

2012.

Th e covenant requires that Western

Plains maintain a working capital ratio

of 1:1, but the actual working capital

ratio was 0.85:1 on June 30, 2012.

Since May, the company has mini-

mized it capital expenditures, restricted

repairs and improvements and sold

some undeveloped land for $280, 000

to reduce debt and restore its working

capital ratio.

Th e company notes they have

insuffi cient cash infl ow to meet obliga-

tions as they become due.

Further operating cost savings

are likely to accrue with the expected

activation of a new water disposal well

in the Maidstone area in September for

the company’s wells in the area.

Western Plains announced in

February 2012 that its board of direc-

tors had appointed a special committee

of independent board members with

a mandate to undertake a process to

evaluate the various strategic alterna-

tives available to Western Plains with

the goal of maximizing shareholder

value.

Th ese alternatives may include,

but are not limited to, the spin out of

certain properties of Western Plains or

other business combinations.

Western Plains ponders future


(Daily Oil Bulletin) – Despite a long, wet spring breakup in Western

Canada, Canadian Energy Services & Technology Corp. (CES) posted higher

revenue and positive earnings in the second quarter and fi rst half.

At the same time, earnings in both 2012 reporting periods slipped from

comparable 2011 fi gures, something management attributed to higher taxes

and an increase in non-cash depreciation, amortization and stock-based com-

pensation during the period.

Revenue during the quarter rose 20 per cent, to $104.13 million from

$86.97 million in last year’s second quarter, helped by stronger sales of drilling

fl uids and related products and services, the company said.

Apart from PureChem Services based in Carlyle, its core business of drill-

ing fl uids and related products, CES has environmental and transport divisions.

Th e company operates in Western Canada and in various basins in the United

States, with a focus on servicing major resource plays.

In Western Canada, revenue from drilling fl uids-related sales in the second

quarter rose 13 per cent to $25.6 million from $22.6 million in last year’s pe-

riod. Average revenue per operating day for the quarter rose one per cent, rising

23 per cent in the year-to-date.

In the last several years, revenue per operating day has trended upward as

operators drill more complex, deeper, and longer horizontal wells in Western

Canada, management said in its second-quarter report. Th ey added that wells

require more fl uids, but also more technically-advanced fl uids in order to be

successfully drilled and cased.

In the U.S., the company’s revenue from drilling fl uids and related sales in

the second quarter rose 21 per cent to $72.7 million from $60.1 million in last

year’s period. Daily average revenue per operating day in the U.S. rose six per

cent from fi gures booked in last year’s quarter. In the year-to-date, the rise in

daily average revenue per operating day was 17 per cent.

Th e company’s transport division, EQUAL Transport, generated revenue

in the second quarter, gross of intercompany eliminations, of $3.5 million, up

42 per cent from the $2.5 million booked in last year’s quarter. Th e year-over-

year increase was due mainly to increased industry activity, management said.

CES’s environmental division, Clear Environmental Solutions, generated

$2.5 million in revenue in the second quarter, up $500,000 from the $2 million

reported in the 2011 period. CES also operates a U.S. subsidiary, AES Drilling

Fluids, LLC.

In releasing its second-quarter report, CES announced it had declared a

cash dividend of fi ve cents per common share to shareholders of record Aug.

31, 2012. CES expects to pay this dividend on or about Sept. 14.

In the three months ended June 30, 2012, the company’s earnings fell to

$3.37 million or six cents per share from $5.51 million or 10 cents per share in

last year’s quarter, representing a 39 per cent drop. Funds fl ow from operations

in the quarter slipped to $8.73 million or 15 cents per share from $9.88 million

or 18 cents a share in the earlier period. Capital spending in the quarter rose to

$5.16 million from $2.92 million in last year’s period.

In the six months ended June 30, 2012, earnings slipped to $17.07 million

or 30 cents per share from $17.32 million or 31 cents per share in last year’s

fi rst half. Year-to-date funds from operations fell to $26.56 million or 46 cents

per share from $28.64 million or 51 cents a share, while capital spending in the

half rose to $12.29 million from $8.47 million. Meanwhile, revenue in the half

rose to $260.69 million from $198.51 million.

CES books higher revenue despite long spring breakup


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• Fluid Levels• Dynamometers• Build-Ups • Fall-Offs• Foam Depressions• Casing Compressors

By Geoff LeeWainwright – Th e Western Canadian Spill

Services Oil Spill Co-op program can add a supply

of human sponges to its cache of initial response

resources in Area VR1.

Th ose sponges are the minds of 140 employees

of member licensees who soaked up the fall VR1

co-op spill training exercise at Riverdale Park north

of Wainwright on Highway 41 on Sept. 5.

Th e event was headed by Area VR1volun-

teer chair Dean Deck, with lead WCSS contract

instructor Trever Miller and equipment manager

Doug Gibson also on hand to demonstrate the

containment equipment. Page B26

Chad Anderson, le , from Pengrowth, teams up with CNRL’s Coby Parenteau and Jacques Vasser to a ach a boom to the Pedco skimmer on the Ba le River.

WCSS rehearsal


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Page B25 A group deployment ex-

ercise in the Battle River followed the introductory

remarks and equipment demonstrations.

“Th e purpose of the event is a training exercise

for the area membership in oilfi eld spill contain-

ment and recovery,” said Deck, who is compliance

co-ordinator for Talisman Energy.

“Th e lessons to be learned will be the deploy-

ment of the equipment and how it works, putting a

river boom into the creek and setting up the pumps

and skimmers to recover the fl uid that’s lost.”

Annual training is a mandatory requirement of

all licensees in the 18 WCSS spill co-ops includ-

ing companies in Area VR1 covering an area from

Wainwright to Cold Lake in Alberta and just east

of North Battleford in Saskatchewan.

Regulators from both provinces were on hand

to orient trainees to their respective spills documen-

tation and regulations and the need for licensees in

both provinces to report spills larger than two cubic

metres on a lease and any spill off lease.

Among those soaking up the content was Mike

Mills, a fi eld operator for Imperial Oil in Cold

Lake who attended the WCSS winter oil spill co-

op training exercise in Bonnyville in 2011.

“Working with Imperial Oil gives you the op-

portunity to work with other groups and learn to

deal with situations where there could be a spill on

water,” he said.

“I hope to take some experience back and share

it with my group back in Cold Lake. Th ese are im-

portant exercises. We care a lot about the environ-

ment and the people around it.

“It’s important to go through exercises like this

to keep up the safety for everyone and our environ-

ment.”

Rob Sawyer, an operator for Black Shire En-

ergy Inc. working near Ribstone northwest of Pro-

vost, was also stoked to be at the training exercise.

“We’ve had some other guys go, and it’s my

turn to come and participate again,” he said.

“Th ese are important. You never know where

the service will be needed in case of a spill. It’s a

good refresher as well, and I hope to learn some

new techniques that are out there.” Page B27

Annual training is mandatory

Volunteers li a Pedco skimmer into posi on to a ach to booms and a diesel pump. Pedco skimmers are designed to recover surface hydrocarbon in a creek or river with current. Photo by Geo Lee


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Page B26Member companies like Black Shire have access to more than $10 mil-

lion of spill recovery equipment including area caches at the Husky Pipeline

Yard in Lloydminster and from the Cenovus parking lot yard at La Corey near

Bonnyville.

“Basically, we are going to be utilizing some of the equipment that the

WCSS has in cache in and around the provinces,” explained Miller at the start

of the day.

Miller works with SWAT Consulting Inc. in Alberta, providing spill re-

sponse services to industry in Canada and, along with Gibson and administra-

tor Audrey Campbell, was contracted by WCSS to provide with spill response

services in Area VR1.

“WCSS was developed by industry for industry. So today, it’s basically

going through the spill response equipment that they have access to,” Miller

added.

Each year, WCSS trains approximately 1,500 potential responders

representing licensees of wells and pipelines in Alberta, northeastern British

Columbia and Area VR 1 in Saskatchewan.

“In this training exercise, we are going to be going through some diff erent

types of anchor sets, whether its trolley line anchor sets, in-stream anchor sets,

shore to shore anchor sets, and basically run out a full boom deployment on a

small river system,” said Miller.

“Th is is an exercise for everyone to keep their skills up, and for everyone

to get the chance to get some hands-on with the equipment, and get some

theory behind it.

“It’s a basic refresher hopefully for the majority of them.

“It’s to give them some theory, so we run through the dryland – we walk

through basically every piece so they understand the terminology with each

piece of equipment.

“It gives them an understanding of how it’s pieced together – where it can

fail and where it succeeds in the best applications – running through diff erent

types of scenarios,” he said.

Gibson and Miller steered the bulk of equipment demos ranging from

how to use a variety of shallow water, infl atable and conventional booms and

all types of anchor sets, to technical attachments such as a snatch block and a

hand line bridle.

Th e duo also led talks and demonstrations on the use of a weir-style

Pedco skimmer to recover surface hydrocarbons and a Turner Valley gate

designed to defl ect oil to a recovery area.

Th e available instruction gear included a diesel pump and a rubber raft

powered by an electric motor.

Some of the equipment was brought to the site from Lloydminster by Joe

Reid, assistant Alberta production co-ordinator with Devon.

Th e fall training exercise was centred around an incident command sys-

tem (ICS) base trailer in the staging area.

“Today, we will have about six diff erent exercises. Hopefully, with the

volume of people here, we will give everyone the chance for some hands on,”

explained Miller.

“We do the dryland, go through the theory and bust out into the incident

command structure and walk through it as if it were an event, and get the

individuals to complete the installation.”

Th e ICS centre posted a strategy map and a set of training objectives such

as the establishment of a trolley line across the river,

the set up of primary containment booms, a recovery

system, secondary containment and a straw boom.

WCSS manuals include the key control points along the river, which

Miller explained, is a point on the river where it’s going to force all of the oil

into which helps determine the incident strategy.

“You put up your boom to further direct it to an area of recovery,” he said.

“Th e critical control points are areas such as where we are at now, where we

know we have good access, and we know we have good staging.

“Within a river system such as this Battle River, you could have about 30

control points.

“What you want to ensure is to know where those critical control points

are. You will open your manuals up and fi nd where that control point is.

“Th ey will tell you where your next downstream point is and how far

downstream, and you start to mobilize your resources further downstream as

required.”


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BertSamuelson

Job: Dean of tradesEducation/Training: Journeyman welder (1991), Hourneyman heavy duty mechanic (1993), Chair position (2000).Experience: Over 25 years at Lakeland and countingQuote:

“One thing that I lived by while at

Lakeland is remem-ber, you are spend-ing your father’s and

your neighbour’s money, so look after

it and earn.”

Vermilion – Th e grass has never been greener anywhere than it is in Ver-

milion for Bert Samuelson, the dean of the trades and technology at Lakeland

College in Vermilion.

Samuelson was born and raised near Vermilion where he and his wife Terry

live and where they raised three daughters who are now grown-up.

As a young man, Samuelson graduated from Lakeland as a journeyman

heavy equipment technician and welder.

He went to the Northern Institute of Technology in Edmonton for his fi rst

apprenticeship training in automotive services only because Lakeland didn’t have

that training course in 1972 when he was student.

“I took some of my training at NAIT and some of my training at Lakeland

College. I am very proud of that,” he said.

His mission as the dean of trades and technology is to help mentor young

students to complete their apprenticeship training as he did at Lakeland.

The fountain of youth

“It’s a great job. I’ve been at this for a number of

years now at the college. I took the dean’s position at

the college four or fi ve years ago,” he said.

“It’s pretty exciting. I get to meet lots of new

faces.

“Th e position has provided me the opportunity

to contribute to the future of Alberta by mentoring

and supporting our learners.”

Students have their pick of eight apprenticeship

training courses for trades including carpenter, elec-

trician, heavy equipment technician, automotive ser-

vice technician, instrumentation, steamfi tter/pipefi t-

ter and welder.

Th e campus introduced a new parts technician

online learning course this fall. Th e fi rst year of ap-

prenticeship training as a gasfi tter starts in the spring

of 2013.

Th e need for apprenticeship training is driven by

the booming oil and gas economy in Western Cana-

da, but Samuelson said it’s two-way street.

“We have seen a growth in oil and gas, but also

I think Lakeland College has contributed quite a bit

to that as well. Our program succeeds.

“Students are very successful and we are drawing

students from other areas now. I think we are doing

very well and I am very proud of what we have done

in the past and what we are continuing to do.”

Page B29


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Page B28Samuelson said his purpose as a dean is to ensure

Lakeland provides all its students a quality educa-

tion so they are able to to compete in a fast-paced

economy.

“We need to understand how our new generation

learns, how they behave and what challenges they

may face,” he said

“At the college, we are committed to a high level

of standards, safe environments, responsible learners

and graduating prepared, self-suffi cient, disciplined

journeymen for our workforce.”

Th e trades program at Lakeland that Samuelson

oversees includes the popular pre-employment train-

ing in a variety of trades.

Samuelson has worked at the campus for over

25 years as a department chair, an instructor and an

employee at the campus service centre.

He has taught diff erent levels of heavy equip-

ment and welding supported by several years of work

experience in Vermilion in the automotive fi eld.

“It seems to be the natural progression. You work

in industry for a number of years and you want to

pass along a little knowledge and experience. Th e best

way to do that is to get into the education fi eld,” he

said.

“I am proud to have worked my way up the

system, starting off as an apprentice, a journeyman, a

mentor in education, and now as a leader.

“So it’s very exciting and I am not sure where I

am going next.”

In the short term, Samuelson will get behind

the wheel of a special trailer made to promote a new

street rod technologies program being off ered to

students across Canada starting next fall.

Th e eight month SRT program will train stu-

dents for careers in repairing and rebuilding hot rods,

muscle cars, roadsters and other modifi ed vehicles.

“It will be about custom and restoration. It seems

to be a pretty big business,” said Samuelson.

“Th ere’s no one in Canada that we know of that

teaches it in an institute.”

Th e course will likely stoke Samuelson’s own

passion and hobby tinkering with old trucks.

“Th at’s the next step,” he joked.

“When you get a little older, you have a little

more disposable income and maybe it’s on a new car.

“I am looking forward to it. It’s to do with auto

body, performance – it’s a new technology.

Welding and sheet metal fabrication will be

taught, along with metal prep and prepping for paint.

“Th ere’s seems to be quite a bit of expendable

funds out there so they are spending money on these

vehicles – we just want to teach them how to do it

correctly,” he said.

“I can kind of understand where students are

coming from. I spent a number of years in the fi eld

as an instructor and as a technician on the tools.

“Th at was my fi rst trade – the automotive fi eld

– so it kind of sticks with you. I am a truck guy,” he

said.

“I still have a number of trucks that I play with.

I do most of my own repairs and I have some older

vehicles that I work on.”


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ESTEVANESTEVAN

Edmonton – Th e Alberta government has rolled

out a long term land-use plan for economic devel-

opment in the Fort McMurray area with an eye to

environmental protection.

Th e Lower Athabasca Regional Plan could see

up to 19 oilsands leases being cancelled to accommo-

date conservation lands.

LARP sets strong environmental limits, con-

serves sensitive lands, and off ers numerous recre-

ational opportunities in the Lower Athabasca region.

Th e plans make no mention of how the province

will compensate the leases reportedly valued around

$29 million but aff ected companies have long known

about the potential to have their leases cancelled.

More than 10,000 Albertans, including individu-

als, Aboriginals, industry, municipalities, environmen-

tal organizations and other stakeholder groups, have

been engaged in land-use planning including three

years and three rounds of consultation on LARP.

Th e plan went into eff ect on Sept. 1 and will also

address infrastructure challenges and strategies to

plan for urban growth around Fort McMurray.

“Alberta has every advantage – abundant re-

sources in a beautiful and diverse natural landscape

– but in our busy province, we need to make smart

choices about the way we grow,” said Environment

and Sustainable Resource Development Minister

Diana McQueen.

“Responsible and long-term planning in this

dynamic region will mean vibrant and healthy com-

munities for families to live, work and play.

“Releasing this plan is a signifi cant step as

LARP recognizes the importance of the oilsands as

an economic driver while assuring environmentally

responsible development of the oil sands resource,”

said Canadian Association of Petroleum Producers

vice-president David Pryce.

LARP is the fi rst of seven regional plans com-

mitted to under Alberta’s innovative Land-use

Framework that provides environmental manage-

ment, addresses growth pressures and supports

economic development.

Th e plan commits to the development of tailings

management, biodiversity, and surface water quantity

frameworks and provides certainty for industry in

development of the oilsands.

LARP also supports diversifi cation of the re-

gional economy including tourism and, the potential

for further responsible development of energy, miner-

als, coal, surface materials, forestry and agriculture.

“As Albertans, we are fortunate to have good

job opportunities, live in vibrant communities and

enjoy a clean and healthy environment,” said Melissa

Blake, mayor of the Regional Municipality of Wood

Buff alo.

“I see this plan as a blueprint for dealing with

present challenges and opportunities, as well as one

that will ensure this important and sensitive region

continues to thrive well into the future.”

LARP is a major component of the province’s

eff orts to provide more openness and transparency to

environmental oil sands data.

Th is is being accomplished through the delivery

of the Oil Sands Information Portal and improved

engagement with Albertans on property rights issues

for land impacted by industrial development.

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October 2012

Story and photos by Geoff LeeLloydminster – Th e overriding message from the Lloydminster Heavy Oil

Show banquet is that heavy oil produced from the Lloydminster area will con-

tinue to play a more important role in fuelling the economy in Western Cana-

da.

Th at theme was backed by comments from Alberta Energy Minister Ken

Hughes to Pipeline News prior to his welcome speech at the show banquet held

at the Lloydminster Exhibition Grounds on Sept. 11.

“Heavy oil from Lloydminster and area is actually a really important piece

in the puzzle of the diverse off ering of oil products that we can sell from Alberta

and obviously from Saskatchewan as well,” said Hughes.

“We see people being really creative in how they develop the resources here.

Th is is a real centre of creativity and innovation in this corner of Alberta and

Saskatchewan.

“It’s a real important part of the oil industry in the province of Alberta in

our eyes.”

In a related issue, Hughes was pleased that Alberta contributed $10 million

toward cost of a new Petroleum Centre at Lakeland College that held its sod

turning ceremony earlier in the day.

“I am really delighted that the Alberta government is able to participate in

that and continue to support these excellent programs at Lakeland,” he said.

“I would say one of our biggest challenges in developing our resources

throughout Alberta is having the workforce to be able to do that.

“Growing the workforce here at home means that we’re more likely to have

people stay here. We all know those programs are oversubscribed by at least four

times already at Lakeland.

“Being able to increase the number of people that can be trained there is

a real important part of ensuring that we have the workforce that we need in

Alberta for the long haul.”

Hughes also believes that new thermal technology and research being intro-

duced by companies in the Lloydminster area will generate opportunities that

can be marketed to the world.

“Every time the industry starts to evolve a new understanding of how to

develop these resources, what it leads to is knowledge that can be deployed else-

where in the world,” he said.

“We see people coming here from other parts of the world. Th ey want to see

how we do it here. Th ey have similar resources.

“Th ere are similar kinds of heavy oil elsewhere in the world, but we’re the

ones who seem to be at the leading edge to actually develop it in a way that

makes sense and is economic.” Page C2

Standing for the singing of the na onal anthem are head table guests (l-r) Mark Bacon, chair of the Lloydminster Society of Petroleum Engineers (SPE), Andrew Oracheski, Lloy-dminster Oil eld Technical Society member; Mike McIntosh, outgoing SPE chair and oil show chair; Kevin Casper, vice president, produc on, Devon Canada Corpora on; Ken Hughes, Alberta Energy Minister; Larry Doke, MLA Cutkife/Turtleford and Lloydminster Mayor Je Mulligan.

Banquet fetes heavy oil’s impact

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Page C1Th e heavy oil industry is the only engine for growth in the oil and gas in-

dustry in Alberta and Saskatchewan, according to Kevin Casper, vice-president

production for Devon Canada Corporation based in Calgary.

“Th ere is still some conventional gas and conventional oil. Th e real mover

and shaker in the oil and gas business is heavy oil,” said Casper, minutes before

delivering his keynote speech on world supply and demand.

Devon has heavy oil operations in Lloydminster and Bonnyville and in the

Fort McMurray area.

Casper agreed that thermal production is rapidly gaining ground over

cold heavy oil production with sand or CHOPS in the Lloydminster area, but

added CHOPS still has potential for growth.

“Th ere is still a lot of opportunity in conventional heavy oil. It’s a bit re-

stricted in terms of land,” he said.

“I still think there is huge opportunity in improving the recovery factor on

CHOPS, but without a doubt, the thermal business is a freight train. It’s going

to continue to be so for some time.

“Th e thermal projects are like freight trains and they are going to keep on

rolling,” he said.

Lloydminster Mayor Jeff Mulligan told the audience he hopes the city can

continue to ride along with the speed and growth of the heavy oil freight train.

Without heavy oil he said, Lloydminster would just be a shadow of the fast

growing municipality that it’s become in the past decade.

“We wouldn’t have the prosperity, the friendships, families, and the contri-

bution to our economy, the donations, the sponsorship, the leadership and the

infrastructure,” he said to a packed audience.

“You continue to fuel our economy here and the economic well-being of

this country. Th is show puts Lloydminster on the map and on the world stage.

“We want to thank, on behalf of city council, the organizers, the com-

mittee, all of you for attending and particularly the vendors who continue to

demonstrate a level of innovation second to none in the world – and we can

call Lloydminster the heavy oil capital of the world.”

Alberta Energy Minister, Ken Hughes paid a surprise visit to the Lloydminster Heavy Oil Show banquet on Sept. 11. Hughes told Pipeline News that the heavy oil industry in Lloyd-minster con nues to grow and spread its reputa on for crea vity and innova- on.

Lloydminster Mayor Je Mulligan took to the podium to thank the heavy oil industry for contribu ng to the economic prosperity the city is experiencing.

Mike McIntosh, le , chair of the Lloydminster Heavy Oil Show and outgoing chair of the Lloydminster Society of Petroleum Engineers, receives an award from new SPE chair Mark Bacon in recogni on of his leadership role with the SPE.

Heavy oil is the mover and shaker

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By Geoff LeeKindersley – Kindersley Mayor Wayne Foster is campaigning for re-elec-

tion on a platform of managed growth and attainable housing for the upcom-

ing Saskatchewan municipal election on Oct. 24.

“Th e four years kind of scared me at fi rst, but I think there’s still lots of

things to do,” said Foster, who picked up his nomination papers on Aug. 28, the

day Pipeline News came knocking.

“It’s getting exciting. Th ere’s lots of development coming. I’d like to be a

part of that.”

Strong economic growth in the oil and gas and agricultural sectors in the

area is behind the drive for better long term planning. Th e need for attainable

housing of all types is at the forefront.

An asset management plan with an eye to scheduling and costing improve-

ments is also in the works to help the town identify its overall infrastructure

and servicing needs.

“It’s time to know what you’ve got, what it is worth and how you are going

to replace it,” said Foster.

“Th at would be my platform. If you run the town like a business, you can

keep the tax rate at a reasonable level and improve your community.”

Th anks to a booming oil and gas industry, Kindersley is nearing city status

with a population that has surpassed the 2011 census of 4,678 residents.

“We seem to be quite full. Th e campgrounds are full, the hotels are full. Th e

oil industry is just booming,” said Foster.

“Th e impression that I am getting from the people that I know is, it’s prob-

ably going strong for at least another three years – a big boom for three to fi ve

anyway.”

Foster said the agricultural industry is also experiencing an economic hey-

day in the region with four or fi ve bumper crops in a row.

“Th ey are doing well and the weather’s been very co-operative the last

number of years,” he said.

To help fund continued growth, the town overhauled its building and de-

velopment fee structure earlier this year and has generated more than $300,000

in revenue toward future infrastructure and development needs.

Page C4

Kindersley seeks relief from growth painsMayor Wayne Foster and new economic development manager Theresa Leinenweber are pu ng planning on the front burner to help Kindersley be er manage its rapid growth resul ng from ac ve oil and gas and agriculture sectors and to provide more housing to mee ng the demand for a labour.

The Kindersley Inn is adding this new suite of rooms just west of its exis ng footprint and sign along Highway 7. A total of four hotels are being built including two expansions to accommodate temporary oil eld workers and overnight visitors.

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Page C3A housing needs survey is under way to help attract potential developers to

build a variety of attainable housing to accommodate new oilfi eld workers and

families.

Th e survey is a follow-up to the 2010 Kindersley Housing Task Force fi nd-

ing that identifi ed the demand for all segments of housing focused on available

land in the Rosedale subdivision.

“Th ere are some projects coming up, but we haven’t signed the agreements

yet. We do have some developers looking at the Rosedale area,” said Foster.

Approximately 57 hectares are available for residential development in the

Rosedale subdivision area.

“We are off ering them land and saying that it can really be fl exible to a

number of diff erent housing styles, whether it be detached or single family or

multi-unit dwellings,” added Wayne Gibson, communications co-ordinator.

“It helps us to address the needs that actually satisfi es a number of diff erent

demographics.”

Representatives from Kindersley attended the HeadStart on a Home

municipal showcase and developer forum in Saskatoon this summer to help

jump-start new housing in their community.

Quick action is needed as the town’s infi ll housing program is coming to

an end in the downtown core and available lots are running out in the 22 lot

expansion of Rosedale that was developed and serviced by Kindersley in 2010.

“Th e developers that we have seen lately are interested in using some of the

provincial programs like the HeadStart program,” said Th eresa Leinenweber,

the town’s new economic development manager.

“It does help so they can get a little more profi t out of the development.”

Leinenweber said the demand for housing is largely driven by the oil and

gas and agriculture industries and related industrial, commercial and retail

developments.

Up to 57 temporary workers can be accommodated in trailer dormitories at

the Open Camp Lodge that opened its doors in January.

“Th e oil industry attracts a lot of single young males and they don’t always

have the wherewithal to stay in a fancy hotel,” said Foster.

“Th e camp will fi ll a niche because there is just a shortage of rental proper-

ties.”

Page C5

Housing task force

Mayor Wayne Foster stands by a for sale sign at a ready-to-move house in the Rosedale subdivision. The town is working with developers to build more a ainable housing of all types in the area to accommodate new workers and families moving to the area.


One Call Will Supply It All

Page C4As many as four new hotels are being built, including signifi cant expan-

sions underway at the Kindersley Inn and the Crossroads Motel near the inter-

sections of Highways 7 and 21 that bring high traffi c volumes to town.

“Some of the hotels are doing a suite concept so it’s pretty attractive to

the oilfi eld worker to have a kitchenette. It fi lls a need for the temporary oil

worker,” said Leinenweber.

Th e boom in hotel construction is well timed after the opening of the

$12.2 million multi-use arena facility this past February and the return of

hockey tournaments.

“It’s helping to revitalize the community and we are able to host as much

or more than we did,” said Foster.

Th e new arena replaces the Exhibition Stadium that burned in 2010 leav-

ing taxpayers to foot a $3.4 million cost overrun after the insurance payout.

Th e need for fi nancial assistance prompted the town to write an open letter

in April to Economy Minister Bill Boyd, the MLA for Kindersley, appealing

for provincial funding to ease the tax burden of the facility.

“We are still hopeful. We’ve had discussions with Mr. Boyd since then,”

said Foster.

“It’s already been to caucus and we haven’t heard anything more since

then.”

Phase 2 of the project calls for the construction of a $24-million perform-

ing arts theatre, an indoor swimming pool and a convention centre.

Approximately $500,000 has been raised in a new fundraising campaign.

Foster said the amenities are needed to attract new families and invest-

ments to the community and to replace the town’s aging pool and theatre

facilities.

“Th e economic spinoff that’s coming from being able to use an ice surface

has certainly made everyone a little happier,” said Foster.

“People are excited to see what’s going on in our community. Th ere is lots

of building, there’s lot of expansion and lots of talk.”

In 2011, the town generated a record $24 million in revenue from 51

building permits and 2012 is shaping up to be a strong year as well.

Construction is due to begin on the new 24 - hectare MacNash Industrial

Park on the west end and work is underway on new 16-hectare Holland Park

commercial business development fronting the north side of Highway 7.

Home Hardware recently relocated and upsized to the Kindersley Mall in

the space vacated by Zellers, and the local Co-op expanded their Home Centre

& Building Materials store.

Wal-Mart is the other major retail anchor in Kindersley that markets itself

within the West Central Enterprise Region.

Kindersley’s development profi le includes a list of recent municipal infra-

structure investments such as the $22 million Water West Regional Pipeline

with a state-of-the-art water treatment plant.

Th e town invested $935,000 in upgrading of facilities at the Kindersley

Regional Airport and $430,000 to upgrade a lift station at the water treatment

plant.

Kindersley is also spending $3.2 million in road and waterline upgrades

over the next three years, including $1.2 million in 2012.

Kindersley opened its the new $12.2 million mul -use arena facility in February a er the exis ng rink burned in 2010. The town is looking for funding from the provincial government to ease the burden of a $3.4 million cost overrun a er receiving $8.8 mil-lion in insurance. The town is already fundraising for a $24 million Phase 2 expansion that will include a performing arts theatre and an indoor swimming pool.


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COME AND SEE US AT LHOS BOOTH 317!

By Geoff LeeWainwright – Oil spills are an inevitable part of the oil and gas industry,

but due diligence and continual training can limit the scope and number of

incidents and protect the environment.

Th at was the key message from Alberta and Saskatchewan regulators at the

Western Canadian Spill Services Area VR1 oil spill co-op fall training exercise

held at Riverdale Park north of Wainwright on Highway 41 on Sept 5.

A total of 140 industry co-op trainees registered for an equipment deploy-

ment exercise on the Battle River and orientation messages from regulators

that underscored the need for training.

“It’s important to have these yearly exercises so everyone knows how to

handle these sorts of incidents,” said Kristen Kohlman, a fi eld inspector for

Alberta’s Energy Conservation Resources Board (ERCB).

“We’ve had a lot of them in the past few months here – some pretty high

profi le cases.

“Using these training opportunities is really going to help them out han-

dling these sorts of situations. We’ve had some major incidents throughout the

province. Th ese things are good exercises.”

Kohlman handed out ERCB brochures on Release Reporting Require-

ments in Alberta. Th e reporting limit of spills greater than 2 cubic metres on

leases and any spill off lease are now the same as Saskatchewan regulations.

“Th ere’s a few things that we’ve changed in our regulations to conform to

be more comparable to Alberta,” said Terry Brisbourne, a senior project special-

ist from Saskatchewan’s Energy and Resources petroleum development branch

n Lloydminster.

“Th e industry kind of wants that. We used to have a reporting limit of 1.6

cubes. We’re up to two cubes now. Th ere are defi nitely diff erences though.

“Th ey are diff erence provinces and diff erent rules and a diff erent lay of the

land. No doubt, everyone has to be aware of both regulations depending on

where their industry is residing.”

Area VR1 is one of largest WCSS oil spill co-ops in terms of area and

membership, making reportable spills from leases in both provinces in the zone

inevitable.

Page C8

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Page C7Kohlman agrees with an introductory statement

by WCSS contractor instructor Trever Miller that

oil spills are the nature of the beast in the industry.

“As much as you try to prevent them, they still

seem to happen, so it’s better to be prepared than

not having a clue how to handle them,” she said.

Brisbourne told the group there were 140 re-

portable spills on the Saskatchewan side of Lloyd-

minster in a 12 month period ending June 2012 –

an improvement over past years thanks to training.

“Th e 140 total is kind of a good number be-

cause we’ve seen numbers as high as 224 in other

years. It seems like the industry is becoming more

responsible,” he said.

Of the 140 spills, 44 per cent of them were at

well sites, 12 per cent at facilities and 13 per cent

were due to line breaks with 31 per cent classifi ed

as miscellaneous – what Brisbourne said are spills

usually related to truckers.

“To see 31 per cent for truckers is a really good

feature that we are seeing now because that number

used to be about 50 per cent. It’s nice to see that

number coming down,” he said.

“We are doing something right. Truckers are

becoming more aware of how they are operating.

“One hundred and forty is still a good num-

ber for a full 12 months. Th e material that’s being

spilled is pretty much 50/50 oil and water, trace

condensate and we have 59 cubes that are chemi-

cals.”

In his address, Brisbourne noted that Saskatch-

ewan also requires the reporting of spills of refi ned

products such as much as half a cubic metre.

“Th e Ministry of Environment also has limits

on refi ned chemicals and their numbers are diff er-

ent based on what you are spilling,” he said.

In Alberta, any release of refi ned products such

as diesel, gasoline, sulphur or solvents that “is caus-

ing or may cause” an adverse eff ect is reportable to

Alberta Environment.

A licensee must also be a member of an oil spill

co-op or submit its own spill response plan for its

special local operators to the ERCB for approval.

Co-op members in good standing attending

the Area VR1 training session fall also learned that

some spills can take months or years to be fully

cleared from the books.

Brisbourne noted there were 54 spills in Lloyd-

minster from previous years yet to be signed off .

“Th ere are some that are long-term spills, prob-

ably not as long as in the past, but they are linger-

ing a little bit, so we are still working on those and

hope to put the closure on remediation,” he said.

Reportable spills regulations in Alberta are

covered by Oil and Gas Conservation Regulations

Sections 8.050 and 8.051 and Pipeline Regulation

Section 77 noted in the ERCB brochure.

Page C9

It's better to be prepared

Area VR1 chair Dean Deck, le , listens to a presenta on on spills repor ng documenta on and regula ons in Saskatchewan by Terry Brisbourne from the petroleum development branch of the Ministry of Energy and Re-sources in Lloydminster.


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Page C8Brisbourne told the trainees representing

licensed companies in Saskatchewan to bone up on

their provincial Oil and Gas Conservation Regula-

tions that were revised this year.

Saskatchewan also has a new Spills and Inci-

dent Reporting Guideline GL 2011-01 that was

released in June 2011.

“It’s good to pull that guideline down as well,”

he said.

“Th ere are fl ow charts that tell you step-by-step

how to do reporting and what has to be reported.”

Th e Area VR1 equipment deployment exercise

took place during a day of intermittent rain showers

which helped to drive home Brisbourne’s plea for

members to check the integrity of their dikes this

fall.

“We have had huge amounts of rainfall this

year and the past couple of years. We are seeing the

dikes of our leases getting busted open or washed

away,” he said.

“I know it’s a hard thing we have to stay on top

of, but we do have to work on that quite a bit.

“If you go to our website and pull down the

S-01 guidelines for upstream storage standards, it

talks about the tank requirements and containment

and also about how to build our leases and contour-

ing our leases.

“Th ere is also a section on fresh water pump-

off procedures. With written land owner’s consent,

you have to do certain chemical tests to determine

if the water is fresh before you can pump it off . Do

not bust open the dike. It must be pumped up and

over,” stressed Brisbourne.

“Especially with winter coming, we want to

make sure our dikes are good so that when spring

comes we don’t have a lot of runoff that’s downhill.”

Th e reminders set the scene for the day of

equipment demonstrations and a deployment exer-

cise in the Battle River.

Th e lessons learned included the deployment of

the equipment, setting up a boom into the river, and

setting up the pumps and skimmers to recover the

fl uid that would be lost in a real spill.

“It’s commendable that everyone is showing

due diligence and a responsible attitude toward a

very serious issue with the potential of endangering

our water bodies and rivers,” concluded Brisbourne.

“On the Lloyd side, we do have a few pipeline

crossings that cross rivers. We have bridges. Truck-

ers can slide off and hit the river. Th ere’s a potential.

“We want to be able to be prepared for such di-

sasters and make sure that doesn’t become a bigger

problem than it really is initially.

“So it’s commendable that everyone is here.

We like to see participation and refl ecting that you

guys are showing an interest and being able to sense

a responsible attitude towards maintaining this

industry and promoting the economy.”

Rob Sawyer, le , from Black Shire Energy and Bernie Caoue e from Husky Energy, register for the start of the WCSS Area VR1 fall oil spill co-op training exercise at Riverdale Park north of Wainwright on Highway 41. One hundred and forty co-op members came to the event on Sept. 5.


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By Geoff LeeLloydminster – Oilfl ow Solutions Inc. uses the “seeing is believing” ap-

proach to demonstrate the ability of its Profl ux technology to unlock heavy oil

in wells, reservoirs and pipelines to trade show customers.

Th e Calgary-based company brought some jars of heavy oil mixed with one

of its water soluble polymers to the Lloydminster Heavy Oil Show for custom-

ers to shake and see how it mobilizes viscous oil into a free fl owing liquid.

“We call it a ‘shaky shake’ demonstration. It’s basically just some heavy oil

with a viscosity of about 70,000 to 80,000 centipoise mixed with a ratio of our

product,” said Lloydminster fi eld sales manager Greg Johnson.

“You can shake it up and see how it mobilizes the oil and turns thick heavy

oil into a very runny, coff ee-like substance.

“It’s very eff ective in that you can shake it up, mobilize it and then leave

it sit on the table in front of the customer for about 10 or 15 minutes and the

product will re-separate.”

Th e demonstration shows that the Profl ux product easily separates from

the oil and that it can be recycled and reused in a variety of heavy oil applica-

tions where viscosity is an issue.

Th e Profl ux fi eld strength chemical works by forming dispersion with

heavy oil that encapsulates heavy which is then easily separated with surface

equipment.

Th e Profl ux suite of commercial products includes Wellfl ux for wellbores

and Transfl ux for use in fl owlines and gathering systems in non toxic, biode-

gradable and recyclable formulations.

Th e company is also close to commercializing its Terrafl ux chemical solu-

tions for reservoir stimulation and enhanced oil recovery.

“Anywhere there is a viscosity issue or a producer is having viscosity related

problems, we have something that they should be considering” said Johnson.

Wellfl ux is the solution of choice for cold heavy oil production with sand

or CHOPS wells with high viscosity issues in the Lloydminster and Bonnyville

markets.

Th e product is injected through the annulus of the well and creates a low-

viscosity fl uid dispersion in the wellbore near the pump inlet.

Th e bottom hole fl owing pressure is reduced as a result of a more con-

trolled drawdown and reduced torque on the pump.

“It’s eff ective for situations where you have a high torque and the pump is

having a hard time turning in the heavy oil,” said Johnson.

“If a producer has a high fl uid level and they can’t speed the pump up and

they are running on a compensator, injecting this stuff drops the torque and

allows them to chase that fl uid level in the wellbore. Page C11

Oil ow repeats its shake demo at oil show

Greg Johnson, eld sales manager for Oil ow Solu ons in Lloydminster, is excited about the strong response to the company’s line of Pro ux technology for mobilizing heavy oil during the 2012 Lloydminster Heavy Oil Show Sept. 12-13.


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Greg Johnson holds up a Je lux product display for hori-zontal well cleanouts at the Oil ow Solu ons booth at the Lloydminster Heavy Oil Show. Image submi ed

Page C10“You can defi nitely upsize your pump. For some of our clients, we’ve had

some great success stories.”

Case studies in the Lloydminster area show that Wellfl ux is an eff ective

solution for reactivating previously uneconomic or high torque wells.

“Over the last seven or eight months, we’ve made some great inroads,” said

Johnson.

“In this area, the product is starting to take off . It is a very competitive

market. You can’t just jump in with both feet. You have to convince people that

the product is eff ective and does what we say it will do.”

Th e key to the company’s success is its research and development lab in

Calgary staff ed with PhD-level chemists, physicists and engineers who also

support fl uid screening tests conducted at fi eld bases in Lloydminster and

Peace River.

“Typically, if a customer has a candidate well, we will take a fl uid sample

from the well and test for compatibility,” said Johnson.

“It helps to put the customer at ease, and we will also be able to tell the ef-

fectiveness of the product on a client’s oil.

“We don’t want to sell the product for the sake of selling the product. We

want to make sure the customer has a success story.”

Oilfl ow Solutions is expanding its Profl ux technology into the Columbia

and Venezuela markets in a product supply agreement signed with MI-SWA-

CO, a Schlumberger company in June.

“It’s a company that we are very excited about. Th ere is a lot of heavy oil in

that area as well. Th ere will be Wellfl ux and Transfl ux and applications,” said

Johnson.

Th e company’s Profl ux technology was named the runner-up production

technology of 2011 by New Technology Magazine.

Oifl ow Solutions is also moving closer to the commercial release of Terra-

fl ux for enhanced oil recovery of heavy oil and bitumen.

Terrafl ux is touted as being an eff ective alternative to waterfl oods with

chemical formulations that can be injected into porous formations to enhance

oil recovery.

“We are working with some major producers and are hoping to kick off

some fi eld trials in the next six months. Th at would be a very large application

for us,” said Johnson.

“We’ve done some core samples with some major producers. We want to

have a little more research to back things up.”

Field trials are also being conducted on a new sand carrying version of

Wellfux for CHOPS applications called Wellfl ux S.

“It’s showing great success so far. We are not quite to a commercial level

with it, but we are hoping to take it to a commercial market within the next

three months or so,” said Johnson.

Oilfl ow is also having some success with Profl ux solutions on cyclic steam

stimulation wells at its Peace River outlet.

Staff from the Lloydminster and the Calgary locations were at the oil show

to answer viscosity related issues and explain how Profl ux technology works in

the shaky shake demonstration introduced during the 2010 heavy oil show.

“We’ve found that’s given us the best bang for our buck,” said Johnson.

“I would like anyone with questions to give us a call. If someone has an

issue with viscosity, we want to have a conversation with them and show them

how the product works.”


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By Geoff Lee

Vermilion – Th e

more things change,

the more they stay the

same for the School of

Trades and Technology

at Lakeland College in

Vermilion.

Enrolment is up

by 136 students at the

start of the new aca-

demic year along with

some new courses and

instructors to meet the

ever growing demand

for apprentices that is

led by the oil and gas

industry.

A record of 1,092

students are registered

for nine apprentice-

ship programs this fall

including the fi rst year

of a new online parts

technician course and

an upcoming fi rst level

gasfi tter course in the

spring of 2013.

Quotas are set

by the apprenticeship

board in April of each

year.

“Th e numbers

are up again this year.

Th ey keep increasing.

Industry keeps want-

ing more people,” said

Bert Samuelson, dean of

trades & technology.

“All the oil com-

panies are still look-

ing. Fort McMurray is

growing. Foster Creek

at Cold Lake is growing

quite a bit. Cenovus is

looking for about 1,500

more workers.

“Every area we look

at they are increasing

and wanting more ap-

prentices, more foreign

workers coming in – any

place they can fi nd some

employees.”

Extra seats are

likely to be added in the

coming weeks as was

the case last year when

the initial enrolment of

956 was bumped up to

1,020.

Th e electrician ap-

prenticeship program is

most in demand with a

total of 228 students en-

rolled in the four levels

followed by the four-

year heavy equipment

technician program with

192 students.

Carpentry is only

trades program with

slightly overall lower

numbers than last year,

but Samuelson said reg-

istration tends to go in

cycles for all of the ap-

prenticeship programs.

Interest is also

strong for a new third-

year class for instrument

technician with plans

to introduce the fourth-

year level course as early

as next fall.

“Th e curriculum is

set by Alberta Appren-

ticeship and Industry

Training,” said depart-

ment chair Roxene

Lockhart.

“Every year, it is

looked at by a commit-

tee to determine what

needs to be changed.

After that, the learn-

ing modules are also

changed.

Page C14

Lakeland College has hired new instructors for nearly all its appren ceship training courses including automo ve service technician training taught at the Vermilion campus. A street rod technologies course will be added to the mix next fall.

Record trades enrolment at Lakeland


A strong demand for skilled labour in the oil and gas industry has helped to drive up enrolment in a variety of appren ceship training courses at Lakeland College in Vermilion this fall including welding. Photo submi ed

Page C13 “For our auto service technician and our heavy

equipment technician program, we will have all new

learning modules this year because the curriculum

has changed substantially.

“Some equipment needed to be purchased to go

with our curriculum so we have purchased that new

equipment.”

Lakeland completed an $11.5 million renova-

tion of its Applied Engineering Building in No-

vember 2011 to make way for expanded welder and

steamfi tter-pipefi tter programs.

Registration for annual fall apprenticeship

courses opens in May. Th ere were higher than nor-

mal volumes this year as the economy in Western

Canada continues to grow.

“Th e demand is coming from construction

and oil and gas – more so from oil and gas,” said

Lockhart.

“Th e courses have been fi lling up faster than we

have experienced before, and also for March and

April’s intakes as well. We don’t normally see people

registering that far in advance.

“In electrical, we have wait lists for all four

years, and we are looking at increases for those

classes and also in heavy equipment.”

Lakeland is delivering the fi rst online training

period of the parts technician program this semes-

ter via eCampusAlberta. In a partnership arrange-

ment, Red Deer College that will off er the second

training period online.

Page C15

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Page C14Th e program runs

from September to the

end of June on a self-

study Internet basis for

employees working in

the parts business.

“Typically, parts

technicians don’t need

a lab component. A lot

of our feedback from

them is that they can’t

aff ord to leave their

current employment

to go to school,” said

Lockhart.

“We just felt the

parts technician was

the easiest to do online

– easier than any other

trade because they

don’t have to be here at

the school.

“If this is success-

ful, there could be the

development of the

third training period

so a student could do

all of their training

for a parts technician

online.”

Auto parts knowl-

edge will come in

handy next fall with

the introduction of

a one-year street rod

technologies program

for careers in vehicle

customization and

restoration.

“It seems to be a

pretty big business.

Th ere’s no one in

Canada that we know

of that teaches it in an

institute,” said Samu-

elson.

Samuelson believes

high disposable in-

comes and auto collec-

tors in the oil and gas

industry will generate a

market for automotive

welding, sheet metal

shaping and paint

prepping skills.

“We have sent

some staff to Laramie,

Wyoming for some

training, and we are

kind of mirroring that

up here in Canada,”

said Samuelson.

Lakeland will also

pilot a new 40-hour

solar installation Level

1 course starting in

January focused on the

application, design,

installation and opera-

tions of photovoltaic

systems.

Th e course will be

taught on weekends

and includes the North

American Board of

Certifi ed Energy Prac-

titioners entry level

exam.

Lakeland uses solar

energy at its Centre for

Sustainable Innova-

tion and the e-cabin

used by environmental

sciences students in the

renewable energy and

conservation program.

Th e campus is also

repeating its success-

ful 36-hour B-pressure

welding prep course

and exam for journey-

men welders through

continuing education

evening classes this

fall.

“We structured

around what the

industry needs are,”

said Eileen Arthur

Lakeland’s business

industry development

co-ordinator.

“We will run on

weekends, and we will

do a survey if that’s not

working, or if industry

comes to us and says

they want it specifi cally

for a week, we can tai-

lor it for their needs.”

More than 70

students are enrolled at

Lakeland in ongoing

pre-employment train-

ing leading to entry

level apprenticeships as

a welder, steamfi tter-

pipefi tter and instru-

mentation technician,

electrician and auto-

motive service or heavy

equipment technician.

“Th ere is strong

demand for that. It’s

one of our better

programs,” said Samu-

elson.

“It’s a good entry

level to get into the

business. Lots of stu-

dents come out of high

school, they don’t know

anybody or know to

get into industry. Th ey

can come here and take

our prep program.

“Th ere’s a practi-

cum component which

puts them out in

industry. About 90 per

cent of them get hired

on as apprentices.”

Th e Vermilion

campus also delivers

career and technology

studies in mechanics,

carpentry, electrical

and welding courses

along with teaching

equipment to regional

high schools and hosts

regional skills competi-

tions in trades.

Dodsland – Novus Energy Inc. reversed its net loss in the second quarter

from the same period last year and has expanded its Viking acreage position.

Net income for the three months ended June 30, 2012 was $1.09 million

versus a loss of $760,000 in the comparative period of 2011. For the six-

month period, net income was $3.93 million versus a loss of $2.09 million

during the same period last year.

In addition to the 124 net sections of Viking rights the company holds

in the Dodsland area of Saskatchewan, Novus recently amassed 46 net

sections of Crown lands prospective for Viking oil in the Provost area of

Alberta, on trend with its existing Dodsland assets. Th e acquired land is

proximate to historical vertical Viking oil production and recent successful

horizontal drilling activity on both sides of the Alberta/Saskatchewan bor-

der targeting Viking oil. Novus believes the assembled acreage meaningfully

increases the company’s future drilling and development inventory. Drilling

on these lands is planned for early 2013.

During the second quarter of 2012, Novus drilled 13 (13 net) wells,

all of which were Viking horizontal oil wells in the greater Dodsland area.

Eight wells (eight net) were completed by June 30. For the fi rst half of 2012,

Novus drilled 26 (26 net) wells, all of which were Viking horizontal oil wells

in the greater Dodsland area. Sixteen wells (16 net) were completed by June

30.

Novus has completed the installation of the main infrastructure in the

Flaxcombe area by adding 11 kilometres of emulsion lines that tie into the

main transmission line feeding its facility. Th irty-six wells currently have gas

conservation and are tied in, with new wells tied in as they are completed.

Load water recovered is being handled by the company owned disposal fa-

cility. Produced water coming into the main facility is injected into a second

well tied into the plant, while sales gas fl ows to a sales line, making it an

enclosed system.

Th e company has 625 net high quality risked Viking oil drilling loca-

tions on its 124 net sections of land in Dodsland based on an eight well

per section drilling density. Th is already signifi cant opportunity base does

not refl ect the ability to down space from eight to 16 wells per section or

the future potential to waterfl ood the reservoir. Novus believes that the

development of the Viking resource is in its early stages and that there is

further signifi cant upside to recovery factors by applying secondary recovery

methods. Th e 625 Viking locations do not include potential locations on the

company’s recently acquired Alberta Viking lands.

Novus turns things around


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By Geoff Lee

Lloydminster –

Lakeland College

scheduled the sod turn-

ing of its $17 million

Petroleum Centre at the

Lloydminster campus

for the start of the

Lloydminster Heavy Oil

Show.

Th e timing on the

afternoon of Sept. 11

helped to draw attention

to the growing student

and industry demand

for oil and gas program-

ming at the campus.

“Th is is a great day

for Lakeland College

and for energy pro-

gramming,” said Kara

Johnston director of

Energy, Entrepreneur-

ships and Aboriginal

programming.

“Th is is what we

have been working

for for the last couple

of years. Finally, that

dream is a reality and

we will be able to ex-

pand our programming

to increase our student

numbers and to respond

to industry in this area.”

Th e focal point

of the new Petroleum

Centre will be a large

power engineering and

heavy oil lab with three

steam boilers, water

treatment equipment, a

turbine generator and

breakout training spaces.

Th e lab will also

serve as a fully-func-

tioning power plant that

will heat the Lloydmin-

ster campus as it will

have the capacity to

produce 200 kilowatts

of power that will go

into the campus grid.

Th e sod-turning

ceremony took place in-

doors due to wind, with

industry representatives

on hand to talk about

the demand for Lake-

land-trained heavy oil

operations technicians

and power engineering

grads for thermal pro-

duction of heavy oil.

Page C17

Construc on of Lakeland College’s new Petroleum Centre in Lloydminster o cially kicked o with an indoor sod-turning event on Sept. 11. Holding shovels are (l-r), Kara Johnston director of Energy, Entrepreneurship and Aboriginal programming; Richard Starke, MLA Vermilion-Lloydminster; Milt Wake eld, Lakeland board chair; Melanie Harper, rst year power engineering student; Lakeland president, Glenn Charlesworth; Al MacLauchlan, Husky Energy’s vice-president upgrader complex, and Lloydminster mayor, Je Mulligan.

Industry cheers Petroleum Centre sod turning


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

Page C16“Over the last few

months, we started up

two new plants that

require a whole new

group of operations

people and the skill sets

that they need to bring

to the table have been

changing over time,”

said Paul Zorgdrager,

Husky’s vice-president,

production operations

for heavy oil in Lloyd-

minster.

“With more

thermal, there is much

more need for power

engineering, which is

exactly in alignment

with what this program

is doing.”

Husky Energy

donated $1.1 million

to Lakeland in May

for heavy oil train-

ing. Th e donation was

timed with the start-up

of its 8,000 barrel per

day South Pikes Peak

thermal project and its

3,000 bpd Paradise Hill

thermal project in 2012.

Husky currently

produces about 24,000

bpd from thermal

production with more

to come.

“Th is is not just

a Husky trend, but a

trend across the entire

industry in the Lloy-

dminster area,” said

Zorgdrager.

More students will

have the opportunity

to take energy related

programming to meet

industry needs thanks

to a $250,000 dona-

tion from the Gwyn

Morgan and Patricia

Trottier Foundation

that was announced at

the ceremony.

An endowment

fund will be set up to

generate at least three

annual awards to help

fund students in oil and

gas training at Lake-

land.

Th e fi rst Gwyn

Morgan Centennial

Award will be present-

ed in 2013 during

Lakeland’s centennial

year celebrations.

“We’re support-

ing Lakeland College

because of the college’s

focus on hands-on

training. Lakeland pro-

vides its students with

many real-world expe-

riences through labs,

practicum placement

and fi eld trips,” said

Gwyn Morgan, retired

founding president

and CEO of EnCana

Corporation in a news

release.

“Another important

factor is that Lakeland

off ers programming to

help people who cur-

rently work in the in-

dustry get the training

they need to advance

their career.”

Other industry

partners who have

made it possible to

construct the Petro-

leum Centre, develop

curriculum and fund

student scholarships

include Allan Mar-

kin, Canadian Natural

Resources Limited,

Archer Daniels Mid-

land Company, Husky

Energy, Cenovus En-

ergy Incorporated, and

Keyera Corporation.

Th e government

of Alberta contributed

nearly $10 million in

capital funding Con-

struction due to begin

in November when the

365 day countdown

begins for Lakeland’s

centennial in 2013.

“Th is is a very

signifi cant day and

marks an important

milestone in the history

of our college and our

economic region,” said

Lakeland president

Glenn Charlesworth.

“Together with the

support of partners, we

are pleased to be able

to proceed with the

construction of this

sophisticated facility

that specifi cally ad-

dresses the training

and educational needs

of the petroleum and

energy sector.”

Th e new Petroleum

Centre will include

equipment to simulate

heavy oil upgrading and

steam assisted grav-

ity drainage or SAGD

processes in the lab.

Lakeland was at

the Lloydminster oil

show and banquet to

showcase their facility,

programming and to

promote the need for

additional funding.

“Th ere’s defi nitely a

need for more funding,”

said Johnston.

“We are looking

at having top quality

innovative equipment

in our lab. Th e more of

that funding that comes

from industry the bet-

ter.

“We are taking

direction from industry.

If they want to buy it, I

will put it in there.”

Lakeland College president Glenn Charlesworth and Kara Johnston, director of Energy, Entrepreneurship and Ab-original programming break into smiles with the announcement of a $250,000 dona on from the Gwyn Morgan and Patricia Tro er Founda on.



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By Geoff LeeCalgary – TransCanada Corporation is poised

to construct two diff erent pipelines in Canada and

the United States, with both projects announced just

days apart earlier this summer.

TransCanada Corporation has been chosen

to build the proposed $660-million 90-kilometre

Northern Courier Pipeline.

Th e Northern Courier will transport bitumen

and diluent between the Fort Hills mine site and the

Voyageur Upgrader located north of Fort McMur-

ray, Alberta.

Northern Courier Pipeline is fully subscribed

under long-term contract to service the Fort Hills

Mine, which is jointly owned by Suncor Energy Inc.,

Total E&P Canada Ltd. and Teck Resources Lim-

ited and is operated by Suncor Energy Operating

Inc.

Th e announcement on Aug. 1 cautioned the

pipeline is conditional on the sanctioning of Fort

Hills by its co-owners and on receiving regulatory

approval.

“We appreciate the confi dence placed in us to

build, own and operate the Northern Courier Pipe-

line,” said Russ Girling, TransCanada’s president and

chief executive offi cer.

“With over 60 years experience in Alberta and

North America, TransCanada is a leader in provid-

ing safe, effi cient and reliable operation of energy in-

frastructure, while respecting the communities and

environments where we operate.

“We look forward to providing additional solu-

tions to meet the transportation needs of growing

crude oil production in Alberta."

TransCanada is also pleased to start the con-

struction of its 780-kilometre Gulf Coast pipeline

with the fi nal permit from the U.S. Army Corps of

Engineers issued on July 27.

“Receiving this fi nal key Army Corps permit for

the Gulf Coast Project is very positive news,” said

Girling.

“TransCanada is now poised to put approxi-

mately 4,000 Americans to work constructing the

US$2.3-billion pipeline that will be built in three

distinct ‘spreads’ or sections.

“Th e Gulf Coast Project will contribute mil-

lions in property taxes to counties in Oklahoma and

Texas, money that can be used to build roads, schools

and hospitals.”

Th e Gulf Coast pipeline is an extension of Tran-

sCanada’s main Keystone pipeline that will transport

crude oil from Cushing, Oklahoma to refi neries in

Texas.

Gulf Coast refi neries will be able to access

lower-cost domestic production and avoid paying a

premium to foreign oil producers, reducing cost and

U.S. dependence on foreign crude oil.

Th e U.S. Department of State is currently re-

viewing TransCanada’s application for a Presidential

Permit to proceed with the 1,897-km Keystone XL

pipeline from Hardisty, Alberta to Steele City, Ne-

braska and is expected to make a decision in the fi rst

quarter of 2013.

TransCanada also continues to work with the

Nebraska Department of Environmental Quality to

fi nalize a route that avoids the environmentally sen-

sitive Sandhills area in that state.

TransCanada has voluntarily agreed to 57 ad-

ditional safety procedures that will be incorporated

into the construction of its crude oil pipelines in the

United States and Canada.

Th e stepped up safety standards will include a

higher number of remotely controlled shutoff valves,

increased pipeline inspections and burying the pipe

deeper in the ground.

TransCanada also uses a technique called hori-

zontal directional drilling to drill under major rivers

to a minimum of 25 feet.

“Th is will allow us to bury the pipe deeper on

both sides of the river bank, off ering protection from

fl oods or high river levels,” said Girling.

“Th e pipe will be made of thicker steel as it

crosses rivers, will operate at a lower pressure and

be further protected by advanced non-abrasive coat-

ings.”

Keystone has safely transported more than 280

million barrels of crude oil from Alberta to markets

in the United States.

Th e proposed Northern Courier Pipeline will

complement TransCanada’s extensive operating ex-

perience in Western Canada.

TransCanada currently operates 24,200 kilome-

tres of natural gas pipelines across Alberta and 3,500

kilometres of crude oil pipelines through the opera-

tion of the Keystone Pipeline.

TransCanada expects to fi le its initial regulatory

application in late 2012.

Th e fi nal pipeline route will be determined with

Aboriginal and stakeholder input, as well as consid-

eration for environmental, archaeological and cul-

tural values, land use compatibility, safety, construc-

tability and economics.

TransCanada gets nod for two pipelines

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Lloydminster Heavy Oil Show & Symposium 2012Lloydminster Heavy Oil Show & Symposium 2012

Above: Kaz Matsumoto, le , and Dan Knapp from STARS, hold up a model of an air rescue helicop-ter while promo ng the service during the Lloyd-minster Heavy Oil Show. STARS opened a base in Regina in 2012 to be fol-lowed by a base in Saska-toon this fall.

Above: Riding the Red Tiger, the name of this Schlumberger cement truck on display at the Lloydminster Heavy Oil Show, are (l-r) Calvin Lonetz, Tyler Con-rad and Tyler Cur s.

Above: The Saskatchewan Resources booth was a popular des na on for visitors to the Lloydminster Heavy Oil Show. Picture at the booth are Minis-try of the Economy employees: (l-r) Jordan Utke, Brady Michel, Sco Lenz, Shaun Zun , and Lovyl Zweifel.

Dean Holoein, an on-highway trucks sales consultant for Regina-based Kramer Ltd., a aches the ag pole on the ladder of this 13 L Cat tank truck with help from co-worker, Ian Capnerhurst standing on top of the tank. The new 475 hp diesel powered truck is the rst Cat oil eld truck Kramer is marke ng to the industry in Saskatchewan. The ag helped to generate a lot of a en on at the Lloydminster Heavy Oil Show. Kramer is the Cat dealer for Saskatchewan.

Phil Huber from Hun ng Energy in Calgary shows a new hockey s ck that was signed by Phil Esposito to commemorate the 40th anniversary of the 1972 Summit Series to Sco Logan from Summit Liability in Calgary. The s ck was a draw prize at the Lloyd-minster Heavy Oil Show.

Elden Wa from Husky Energy gets the uno cial award for best cowboy hat at the Lloydminster Heavy Oil Show.

Wayne King, right, president of Grit Industries Inc., explains his company’s cold weather technology to a customer at the Lloyd-minster Heavy Oil Show. Grit has moved all of its manufacturing from Lloydminster to North Ba leford.

Le : More the 6,500 visitors toured the indoor and outdoor exhibits at the Lloydminster Heavy Oil Sept. 12-13. This year’s show was held in conjunc- on with the Heavy Oil Technical Sym-

posium.


Story and photos by Geoff Lee

Lloydminster – Baker Hughes expects to turn

the sod on a new multi-million complex in Lloy-

dminster this fall that will see its expanding area

operations consolidated under one roof.

News of the project was broken to Pipeline News by Rod Stearn, operations director for the

company’s upstream chemicals division in Calgary,

at the Lloydminster Heavy Oil Show Sept. 12-13.

“We have four diff erent locations in Lloydmin-

ster. We have a long history of doing business here,”

said Stearn.

“Looking ahead at the future of the industry

here and the opportunity, we felt it made sense to

consolidate the four properties into one location.

“We are going to be moving ahead with that in

the near future.

“Right now, we haven’t closed on our land, but

it looks like we are going to be in the northwest

portion of Lloydminster, in the industrial park

there.”

Th e selected building site is a 13 acre parcel of

the land in the Hill Industrial Park and will serve as

a one-stop base for the company’s manufacturing,

distributing and warehousing.

Page C23

Baker Hughes’ ar cial li sales team of Jason Higgins, le , Kris Welin, and Rod Stearn from Calgary were at the Lloydminster Heavy Oil Show to promote their company’s prod-uct and brand in their busy heavy oil market. The company will start construc on this fall on a new building in the Hill Industrial Park in Lloydminster in order to consolidate four growing loca ons into one complex.

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Page C22“It’s going to fairly substantial. It’s a multi-million investment for us,” said

Stearn.

Baker Hughes provides a wide range of heavy oil products and services for

drilling, formation evaluation, completion, and production in the Lloydminster

area.

“Lloydminster has been good to us. It’s a very steady environment to work

in. Th ere is a lot of upside,” said Stearn.

“Th e producers are very active. When we look ahead, we see it being a

strong market to be in for a long time.

“When we build facilities like this, we are looking at 20 to 30 years down

the road and making sure we are making the right choice.

“Lloydminster is an excellent place to ensure you have a strong foothold to

represent your brand and allows your company to grow.”

Stearn staff ed indoor and outdoor booths at the Lloydminster show to gain

product and brand exposure for Baker Hughes’ heavy oil solutions products and

technology.

“Today, you see us at the trade show representing the chemical product

line, pumps, completion tools, drill bits and wire lining. We have a full suite of

products to support in the oil industry in Lloydminster,” said Stearn.

“Obviously, the heavy oil aspect around here puts us in a position where

our marketing and research and development is skewed toward that. Th at’s

what you’ll see represented in Lloydminster.”

Th e U.S.-based company spends approximately $400 million a year on

research and development as a leading supplier of oilfi eld services, products,

technology and systems to the worldwide oil and natural gas industry.

“Continuous improvement is something that’s expected of us from our

customers. We fall in line with our customers, and are looking to be better

every single day,” said Stearn.

“We have some unique products that provide specifi c value to the Lloyd-

minster market.

“Our sand suspension products have made a signifi cant diff erence here.

Th at’s one thing that we are really showcasing here today as well and a lot of

things we have been able to accomplish with our pump business in Lloydmin-

ster.

“We want to showcase that and make sure people are aware of our brand.

“If there are questions about our product line or problems that people are

having in the fi eld, we are able to deliver some solutions to them.”

Stearn handed out information kits on the Baker Hughes’ line of progress-

ing cavity pumping systems for heavy oil including rod driven PC pumps and

electrical submersible PC pumps (ESPC).

Th e company also manufactures its proprietary LIFTEQ ESPC which

eliminates rods and expands the operating range of PC pump systems particu-

larly in deviated and horizontal wellbores.

Stearn said it’s a good time to be doing business in Lloydminster because

it’s an active market and the new building will help them to stay in line with

where their customers are going.

“Construction will start in the next month or so. We hope to be in by the

end of next year,” he said.

“Construction is a tricky business right now. It’s very active and it’s easy for

timelines to slide.

“We hope to break ground in the fall and have things going so we can

work through the winter on it.”

Stephanie Reiber, a Baker Hughes operator in the Provost, Alberta area, and Josh Brevnig, Provost sta on manager, manned this company wireline truck exhibit and some high resolu on Micro-Vert downhole casing inspec on tools in the foreground.


By Geoff LeeLloydminster – A hydraulic jet pump may be the choice of last resort to

improve the production of high sand content or deviated heavy oil wells, but it

works.

Th e jet pump has proven itself to be a viable rodless lift solution for dif-

fi cult to produce cold heavy oil production with sand or CHOPS wells in the

Lloydminster area.

Th at was the bottom line message of a presentation by Dean Gordon, a

hydraulic lift product line manager with Weatherford in Calgary, to kick off the

2012 Heavy Oil Technical Symposium held in the Prairie Room at the Lloyd-

minster Exhbition Grounds Sept. 12-13.

“It’s a method of artifi cial lift commonly used where there is rod wear,

deviated wellbores or deep and excessive gas production,” said Gordon.

“In the Lloydminster area, there is more sand, and in other areas it may be

high gas volume or depth.”

Other CHOPS challenges that can be overcome with a jet pump are

frequent rig intervention, lost production due to downtime, and viscous cold

heavy oil.

Gordon’s presentation focused on a reverse fl ow application of the jet

pump, whereby pressured “power fl uid” which is usually water or oil, is injected

down the annulus through a jet pump and co-mingles with produced fl uids and

solids which are pumped back to the surface. Page C25

Jet pump ideal for high sand CHOPS wells

The rst speaker at the 2012 Heavy Oil Technical Symposium held Sept. 12-13 was Dean Gordon, a gas li /hydraulic li product line manager for Weatherford in Calgary. Gor-don presented a case for using a jet pump as a rodless li solu on for cold produced heavy oil wells with high sand content in the Lloydminster area.


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Dean Gordon, a gas li /hydraulic li product line manager for Weatherford in Calgary, le , accepts a speaker’s gi from Mark Bacon, chair of the Lloydminster sec on of the Society of Petroleum Engineers at the 2012 Heavy Oil Technical Symposium Sept. 12-13.

Page C24

“It brings sand

with it – with no

moving parts as long

as you can keep the

fl uidity and velocity of

the fl uid high enough,

the sand doesn’t have a

chance to settle and it’s

all brought to surface,”

said Gordon.

Th e main compo-

nents of a jet pump

are the nozzle, mix-

ing tube throat and a

diff user that creates a

high discharge pressure

to return the com-

bined fl uid back to the

surface.

Jet pumping has

been around since the

early 1970s, but mod-

ern systems take liquid

from a surface reservoir

that is put through a

multiplex piston pump

or horizontal electrical

submersible pump to

increase its pressure.

Weatherford uses

its own triplex pump

which is manufac-

tured in Canada, along

with sheltered surface

equipment it designed

for cold winters.

Th e multiplex

pumps Weatherford

uses power the fl uid

to the jet pump under

pressure up to 4,000

pounds. One pump

can handle four or fi ve

wells depending on

horsepower and vol-

ume requirements.

In a standard fl ow

set-up, the pumps

inject the power fl uid

down hole through the

tubing string.

At the bottom of

the string, the power

fl uid is directed into

the nozzle of the jet

pump that can return

more than 30 per cent

sand content to the

surface.

“Th e maximum I

have seen is 30 to 50

per cent by volume,”

said Gordon, who

added that the system

has been working for

40 years.

“We inherited the

business and set it

up a few years ago in

Canada, and it’s been

growing and been suc-

cessful since.”

Th e power fl uid

can be pumped down

the annulus and heated

to lower the viscosity

of the fl uid more com-

monly on wells with

low water cuts.

“Specifi c applica-

tions in the Lloyd-

minster area are for

CHOPS wells with

a lot of sand produc-

tion and for deviated

wellbores.

“You can land

it at 90 degrees be-

cause there is no rod

wear. It’s not going to

compete against a PC

pump or a pumpjack

on a perfect well, but

that’s not its purpose,”

said Gordon.

“In some areas it’s

considered the choice

of last resort. Th e jet

pump always works.”

Other advantages

of the jet pump are

that it has a produc-

tion range up to 3,000

metres and operating

temperatures above

200 C.

In addition, one

surface unit can pro-

duce multiple wells or

well pad applications.

Th e system is ideal

for remote wells and

a range of heavy oil

applications including

some trial steam as-

sisted gravity drainage

or SAGD applications

that Weatherford plans

to pursue over the next

eight months.

Other potential

applications are

for cyclic steam

stimulation, steam

fl oods, and CHOPS

with diluents.


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Lloydminster – Saskatoon Boiler Manufacturing Co. Ltd. expects to build

up a head of steam from new business contacts made at its OTS series boiler

exhibit at the Lloydminster Heavy Oil Show.

Th e locally-owned, independent manufacturer of boilers and pressure ves-

sels based in Saskatoon is also stoked about the market potential for a new oil

drilling rig boiler to be fueled by fl are gas.

“We are just outfi tting a boiler on an oil drilling rig. It’s a 125 hp boiler

and we are outfi tting it with a combination diesel fuel and natural gas burner,”

said company president, Ray Graves.

Saskatoon Boiler is working on the project with a company in Calgary

to develop boilers for drilling rigs in southeast Saskatchewan and northwest

Alberta where fl aring is prevalent.

Graves said the partner company has developed a system whereby they

gather up the fl are gas from oil wells, compress it and then deliver it to oil

drilling rig customers.

“Th is gas ends up serving a useful purpose rather than being fl ared off ,”

said Graves.

“It’s a very exciting thing to be involved with. It represents a whole new

market for us.”

Graves said the product is “entering the market” in the Estevan area and it

will also be going to the northwest corner of Alberta on some other boilers.

Page C27

Saskatoon Boiler to tap into are gas

Ray Graves, president of Saskatoon Boiler, brought this 25 hp oil red boiler for oil eld steaming to the Lloydminster Heavy Oil Show. The independent manufacturer of boiler and pressure vessels is manu-facturing an oil drilling rig boiler to run o are gas. With roots da ng back to 1914 when it was known as the Saskatoon Welding Company, Saskatoon Boil-er will celebrate its 100th

anniversary in 2014.


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Page C26Graves was also eager to talk about his com-

pany’s boilers and the oil fi red 25 hp OTS series

boiler on exhibit with a sold sign on it.

“We make quite a variety of boilers. In

the context of the oil show, the boilers that

we are concentrating on and exhibiting are

the boilers that are used in the oil industry

specifi cally,” said Graves.

“Th e one that is on display would typi-

cally go on a truck van for servicing in the

oilfi eld. We build boilers for drilling rigs,

slop oil plants and everything that’s in-

volved in producing and operating oil.”

Th e OTS boilers go up 150 hp, with

the smaller unit having the “space miser”

option.

Th is option off ers a compact unit

consisting of the blowoff and condensate

return tank mounted underneath the boiler

to provide a compact package suitable for

situations of limited space.

Th e main oilfi eld application of the

25 hp boiler is for steaming wellheads and

valves in the winter months. Th e boiler is

installed in a mobile van.

“It’s fi t up diff erently than it would be

fi t up for a permanent installation,” said

Graves.

“Th e boiler has to be drainable in all fi t-

tings and pumps and things of that nature

because the boilers are going to freeze at

some time in travel so everything has to be

drainable so it can’t freeze up and cause any

damage.”

Graves said these portable boilers are

among his best sellers, with applications in a range

of industries for their full line of boilers.

“Here in Lloydminster, there a truck service

company that has one of our boilers; dry cleaning

plants have them – the ethanol plant at the North

West Terminal in Unity has a very large boiler of

ours,” said Graves.

“We supply Grit Industries with their small

boilers for their metering systems. We sell them a

couple of hundred boilers a year.”

Saskatoon Boiler produces fi retube boilers up to

1250 horsepower that are fi red by gas, oil and solid

fuels; pressure vessels; and custom fabricated large

sectional pieces weighing up to 60 tons.

Th e company has a full-fl edged factory in Sas-

katoon that Graves said is the only one like it west

of the Toronto area.

“We do all our own designs in-house.

We have a full engineering department.

We probably build a bigger variety of big-

ger styles of boilers than any other boiler

factory.

“We have an interest in a boiler fac-

tory in Mexico and they build some of

our boilers for us up to the hydro test

stage, and then we bring them up to Sas-

katoon and fi nish them off and test them

and ship them off .

“Th at has taken the place of building

a second factory.”

Saskatoon Boiler has distributors and

service depots throughout Canada and

the United States with the oil and gas

industry as its main client for worldwide

sales.

“Siberia has become a very good mar-

ket for us because we know how to outfi t

the boilers for cold weather,” said Graves.

Th e company will be celebrating its

100th anniversary in 2014 having origi-

nally been established as the Saskatoon

Welding Company in 1914.

Th e Graves family has been involved

in running the company since 1931 and

at the age of 78, Graves came to the oil

show to share his expertise and meet a lot

of familiar faces in the oil and gas indus-

try.

“We hope to see some of our existing custom-

ers. We have a lot of them in the Lloydminster area

and of course, we are trying to fi nd new customers,”

he said.

“We do all our own designs in-house. We

have a full engineering department. We

probably build a bigger variety of bigger styles

of boilers than any other boiler factory.”

- Ray GravesPresident Saskatoon Boiler


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Lloydminster – Paul

Sorensen is probably

the only exhibitor at the

Lloydminster Heavy Oil

Show who could have

brought a fresh fruit

basket or some wine to

share with customers.

Sorensen is a sales

adviser for Brutus Truck

Bodies by Nor-Mar In-

dustries Ltd. in Pentic-

ton, B.C. in the heart of

orchard country in the

sunny Okanagan Valley.

Handshakes had to

suffi ce as Sorensen came

to the oil show to sell

his basket of truck bod-

ies for oilfi eld use. Th ey

included service bodies,

welder decks, oilfi eld

decks and lube trucks.

“We build our ser-

vice bodies and service

decks for just about any

vehicle out there from

Ford to Dodges up to

Freightliners, Macs and

Peterbilts and anything

like that,” said Sorensen.

“We have a facility

in Penticton where we

manufacture our bodies.

We do build very large

vehicles as well – large

lube trucks as well. Th e

last one that went out

was on a tridem chassis.”

Th e Brutus Truck

bodies are designed for

the forestry, construc-

tion, mining, and oilfi eld

sectors and harsh

operating conditions in

Western Canada.

“Most of our oilfi eld

sales are in Alberta, Sas-

katchewan and North-

ern British Columbia.

We also service a lot of

the industry as well,”

said Sorensen.

“We send lot to

Fort St. John, Dawson

Creek, and we do a lot

of work for Finning

which is all over B.C.

“I would say the

oilfi eld is about 90 per

cent of our business. We

are very busy.”

Th e company’s

oilfi eld decks can be

built to any size chassis

from steel or aluminum

with high quality Fassi

Cranes from one tonne-

metre to 130 tm sizes.

Th ere is also a variety of

hitch options.

Brutus Truck Bod-

ies is the Fassi dealer

in B.C. and sells other

cranes such as Maxilift

and Cobra truck cranes

that were part of the

company’s oil show

exhibit with lots of visi-

tors dropping by.

“It’s a good oil

show here – lots of

people out, and we do

about three or four

shows a year,” said

Sorensen.

“We come to this

one every second year.

It’s a chance to meet

new customers and you

get to put some faces to

the voices that you talk

to on the phone.”

Th is was Sorensen’s

fi rst trip to Lloydmin-

ster and his impressions

about the industry and

the community were

favourable.

“It’s amazing. I

didn’t actually realize

the heavy oil industry

that was here. I didn’t

realize it was as big as it

is,” he said.

As for the fl at land-

scape compared to the

mountains back home,

he said, “It’s nice. I like

it. I like the open space.”

B.C. body builder bulks up for oil show Paul Sorensen was pleased to show o this new picker truck built by Brutus Truck Bod-ies by Nor-Mar Industries in Pen cton, Bri sh Columbia at the Lloydminster Heavy Oil Show. Approximately 90 per cent of company sales are to the oil and gas industry in Western Canada.

This collec on of Maxili and Cobra cranes at the Brutus Truck Bodies ex-hibit a racted a lot of interest from visitors to the Lloydminster Heavy Oil Show. The company is based in Pen- cton and relies heavily on oil show

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Lloydminster – A lot of people kicked tires at

the outdoor exhibits of oilfi eld vehicles and equip-

ment at the Lloydminster Heavy Oil Show with

Kenworth trucks attracting their fair share of hits to

the delight of Glen Armstrong.

Armstrong is a new and used truck sales rep-

resentative for Kenworth Lloydminster who was

eager to engage all tire kickers and rubberneckers

about the Kenworth lineup on display.

“We’ve got a few diff erent units. We’ve got a

C500 with a sleeper unit on it and a Lennox rig up

package (Lennox Welding & Supply Service) on it,”

said Armstrong.

Th e C500 is described as the “ultimate beast of

burden” by Kenworth marketers.

“We’ve also got a T800 that can be ordered in a

variety of diff erent confi gurations for on or off road

applications,” said Armstrong.

“It’s a pressure truck chassis which a customer

has ordered and put together for pressure work.”

Th e display featured another T800 with a 100

barrel oil tank on it from Advance Engineered

Products. It was to be sold as a crude haul body job.

Th ere was also a T800 with a tri-drive unit

sporting a hydrovac package on the back of it and

T370 steam unit rigged and ready for sale and work

in the oilfi eld.

“A lot of our products are sold for the oilfi eld.

It supports us very well and we are thankful and

grateful for that too,” said Armstrong who noted

the oil show is a great opportunity to meet new

people in the industry.

“Some of the people have been around for a

long time, and maybe just need a new look at the

product and a new look at us – it’s always good to

attract new business and keep your old business

going too.”

Armstrong said Kenworth is the most popular

oilfi eld truck on the market, with the T800 being

the best seller for oilfi eld use.

“Th e T800 is a multi-use truck. You see it on

the highway, but also it’s very well suited to work-

ing in the oilfi eld with the ride quality, the set back

front axle, and the good turning radius on it,” he

noted.

“It’s a truck that’s very visible – good visibility

out of it with a little bit of a slope to the hood.

“We also sell a lot of W900s.”

Th e W900 is known for its long haul power,

performance and reliability in the oil and gas indus-

try.

Th e Kenworth Lloydminster dealership is a

division of Edmonton Kenworth Ltd., which has

other locations in west and south Edmonton.

Edmonton Kenworth is touted as a full ser-

vice company providing new and used truck sales,

fi nance, parts, service, and body shop and leasing

services.

Th e company is on a sales and service roll again

in 2012 with the recovery from the 2008 downturn

in full swing.

“It’s been gradually picking up again to where

we are having a real busy year again this year,” said

Armstrong.

“Hopefully, there are a few more of them to

come.”

Kenworth Lloydminster works with a variety of

installers to put a variety of oilfi eld-related equip-

ment on the back end to be sold as a complete

custom package.

Customers can also purchase a stock truck and

handle their own custom packages that are available

at the Lloydminster dealership that is seeing a lot of

customer traffi c in a strong economy.

“It’s a busy spot – lots of equipment going

through it all the time, but of course, we’ve got a

full mechanical staff in the back shop to keep this

stuff working as it’s sold out in the oilfi eld or out in

the highway,” said Armstrong.

“It’s a full parts and sales and service facility,

and it keeps us hopping most days.”

Kenworth Lloydminster truck sales rep Glen Armstrong hopes this Kenworth T370 truck on display at the Lloydminster Heavy Oil Show will generate a lot of sales mileage in the coming months. The truck comes equipped with a steamer package. Photo by Geo Lee

Kenworth engages tire kickers at Lloyd showKenworth engages tire kickers at Lloyd show


Global Steel Ltd. is a private corporation founded in 1990. From modest beginnings Global Steel has grown to become one of North America’s most trusted distributors of premium Canadian Manufactured Oil Country Tubular Goods (OCTG). Today, this Calgary-based company enjoys an unmatched reputation for product quality, innovation and customer service.

Global Steel maintains key relationships with several major domestic steel mills. Strategic alliances with each mill guarantee reliable and secure access to a full range of high-quality ERW OCTG, Seamless OCTG and Line Pipe products. We are committed to providing oil and gas producers with exceptional service, high-quality oil eld tubular goods and personalized logistical support.

One call to Global Steel provides customers with competitively priced products and ef cient , safe dispatch to the job site. Global Steel currently maintains 18 inventory stock points strategically located across Canada. Each stock point is supported by veteran trucking companies specializing in oil eld transportation and providing 24 hours service.

An unwavering focus on operating and service excellence is what separates Global Steel from everyone else. It is a commitment that shows in our products and services. At Global Steel we are focused on your business.

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Fall classesOrienta on day for Lakeland College students star ng fall classes in the heavy oil opera ons technician and heavy oil power engineer programs at Lakeland Col-lege took place at the Lloydminster campus on Aug. 28. Both groups assembled for a group photo in a corner of the lab where a new boiler will be installed in September. Photo submi ed


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Calgary – Twin Butte Energy Ltd. plans to continue to grow its heavy oil

base in the Lloydminster area with a $127 million purchase off er for the assets of

privately held Waseca Energy Inc.

Th e Waseca acquisition will signifi cantly increase the size and scope of Twin

Twin Butte offers to purchase WasecaButte’s heavy oil lands and opportunities in the Lloydminster area.

“Th e acquisition of Waseca will provide Twin Butte with a low risk, high rate

of return portfolio of over 130 development heavy oil drilling locations as well as

over 30 exploratory targets providing signifi cant upside potential for long term

reserve appreciation,” said the company.

At closing, Twin Butte will acquire Waseca’s current production of 3,500

barrels of oil per day of conventional heavy oil with the majority of it being 100

per cent working interest.

Th e purchase will give Twin Butte a projected production rate of 19,000

barrels of oil equivalent per day with 89 per cent in oil and liquids up from the

current 84 per cent weighting.

Th e Twin Butte off er includes the assumption of approximately $7.5 million

of positive working capital after accounting for estimated transaction costs.

Th e deal announced on Sept. 3 follows the completion of Twin Butte’s $88.9

million amalgamation of privately-held Avalon Exploration Ltd. on Aug. 30.

To complete that transaction, Twin Butte issued approximately 24.6 million

common shares to acquire all of the outstanding securities of Avalon.

Th e acquisition of Waseca’s assets involves a cash off er between $32.2 mil-

lion and $58.9 million and 28.9 million to 39 million in common shares of Twin

Butte to be determined by Waseca shareholders.

Waseca shareholders choosing shares will receive 0.5133 Twin Butte shares

for each Waseca share.

Shareholders are expected to approve the amalgamation this November with

required approval from the Court of Queen’s Bench of Alberta under the provin-

cial Business Corporations Act.

Th e Calgary-based company will also increase its share dividend on closing

from $.015 to $.016 or to $0.192 per share.

“Th e Waseca acquisition is consistent with Twin Butte's historic strategy of

acquiring quality assets, with large resource potential within focus areas where

Twin Butte has expertise,” added the company.

“Twin Butte’s undeveloped land, seismic, and development and exploratory

drilling inventories have increased materially since the beginning of 2012 which

will lead to strong capital effi ciencies in its capital plan for many years.”

Waseca is owned 81.1 percent by Sprott Resource Corp. which is expected to

own approximately nine per cent of the outstanding Twin Butte common shares

on closing.

“We believe that Twin Butte's dividend plus growth business model focused

on low-risk, high-return Lloyd heavy oil is attractive and sustainable," stated

Kevin Bambrough, president and CEO of Sprott Resource Corp.

Th e acquisition will add Waseca’s 46,000 net acres of undeveloped land in

the Lloydminster area to Twin Butte’s holdings, bringing the company’s total to

approximately 220,000 net undeveloped acres.

Th e Waseca lands are contiguous to Twin Butte's existing lands in the Lloyd-

minster area.

Twin Butte will also receive a signifi cant seismic database of 2,500 kilome-

tres of 2D data and 16 square kilometres of 3D data.

Waseca has proved reserves of 4,420 mboe and proved plus probable reserves

of 7,950 mboe based on an independent reserve report eff ective Dec.31, 2011.


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All positions require previous experience in Pipeline Construction.

Previous experience on Pipeline Integrity projects is an asset.

Calgary – Shell Canada is developing the

fi rst carbon capture and storage facility tied to an

oilsands operation in Canada with $865 million

in combined CCS funding from the Alberta and

federal governments.

Construction of the Quest project has already

begun and will employ about 400 skilled workers

over nearly 30 months, peaking at about 700.

Quest is touted as a fully integrated project that

will demonstrate existing capture, transportation,

injection and CO2 storage technologies.

“Quest is another example of how we are using

technology and innovation to improve the envi-

ronmental performance of our oilsands operations,”

said John Abbott, Shell executive vice-president

of heavy Oil during the Sept. 5 announcement in

Calgary.

Th e sanctioning of the $1.35 billion CCS proj-

ect by Royal Dutch Shell was made possible with

$745 million over ten years from Alberta’s carbon

capture program and $120 million from Ottawa’s

Clean Energy Fund.

Th e balance of the cost will be funded propor-

tionately by partners in the Athabasca Oil Sands

Project with Shell Canada as the 60 per cent opera-

tor and Chevron Canada and Marathon Oil at 20

per cent each.

Quest CCS will be operational by late 2015 and

will reduce carbon dioxide emissions from bitumen

processed at Shell’s Scotford Upgrader near Ed-

monton by as much as 35 per cent per year.

Th e project will capture more one million

tonnes of CO2 per year from the upgrader and it

will be shipped 80 km north by an underground

pipeline to a storage site.

From there, it will be injected and stored

permanently two kilometers underground into an

impermeable Cambrian sands formation.

Abbott told the media the project would

only capture about 15 per cent of emissions from

the Athabasca Oil Sand Project which produces

255,000 barrels of bitumen a day.

Th e Quest CCS project fi ts the federal govern-

ment’s plans to reduce overall emissions in Canada

by 17 per cent from 2006 levels by 2020.

Ottawa earmarked a $1 billion Clean Energy

Fund in 2009 for CCS projects supported by a $2

billion in carbon capture fund set up by the Alberta

government in 2008 to improve the environmental

performance of province’s energy sector.

Th e Quest CSS project comes as a relief to both

governments after TransAlta Corp. and its partners

abandoned their $1.4 billion Pioneer CCS in April

despite $779 million of taxpayer support.

Th e company cited a lack of buyers for the CO2

and uncertainty over the value of reduced emissions

without a cap and trade program in place.

Project Pioneer would have captured and stored

a million tonnes a year from the 450 megawatt

Keephills 3 power plant in Edmonton.

“While we are disappointed that Project Pio-

neer will not go ahead, we now know the technol-

ogy works and we still believe there is a future for

CCS,” said chief executive Dawn Farrell in April.

Th e sanctioning of the Quest CCS project by

Shell has boosted the confi dence of the federal

government to continue funding CCS projects and

technologies in the oil industry.

“Th e Harper government will continue to invest

in innovative technologies such as the Shell Quest

project to help support high-quality jobs and re-

sponsible development of Canada’s energy resourc-

es,” said Joe Oliver, Minister of Natural Resources.

“Th e project will help demonstrate the potential

of carbon capture and storage technology in the oil

sands and highlight Canada's global leadership.”

In addition to Quest, Shell is involved in a

number of major CCS projects worldwide.

Shell approves oilsands carbon capture



ensignjobs.ca 1-888-367-4460 [email protected]

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Interested individuals can submit a resume via email or fax to Shannon Leibel at:

Email: [email protected]

Fax 306 634 1200 • Cell 306 421 3418


Your best choice for accommodations

in Carlyle, Sk.• Full kitchen and upscale extended stay

• Complimentary continental hot breakfast• Free high speed internet

• Meeting roomReservations: 306-453-2686

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Box 609 Bus: (306) 634-8084Carlyle, SK Cell: (306) 577-8833S0C 0R0 Fax: (306) 453-6075www.truetorq.ca [email protected]

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

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.

[email protected]

www.aspentrailer.com

Aspen Custom Trailers6017-84th 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 Wotherspoon

Regional Sales Manager

BIG D’S LEASE SERVICE

P.O. Box 544

Stoughton, Sask. S0G 4T0

(306) 457-7033(306) 457-7673

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LECLAIRTRANSPORT

Lyle LeclairCell: 306-421-7060

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TERRY DODDS(24 hrs.) (306) 634-7599

Cell. (306) 421-0316

“All Your Construction and Maintenance Needs”SPECIALIZING IN: ENGINES, PUMP UNITS, UNIT

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M.E.T. OILFIELDCONST. LTD.

Cordell JanssenCordell JanssenDistrict ManagerDistrict Manager

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Documents

Pipeline News October 2012