Welcome | North American Oil & Gas Pipelines · Taming the Tiger Michels Pipeline Construction uses McLaughlin cradle bore machines to speed up a pipeline project. By Curt Grandia

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

ON THE COVER: Enbridge Inc. operates one of the most expansive oil and gas pipeline networks in the world and continues to expand its system throughout North America, focusing on safety and reliability. The company expects a big year in 2012 and already has a slate of projects under way.

18 Bridging the Energy Gap Three Enbridge executives discuss the company’s mission to build safe

pipelines to serve North America. By Bradley Kramer

FEATURES

24 Clearing Pipeline Rights of Way — the Right Way

Go Green provides turnkey, environmentally friendly land-clearing solutions for pipeline installation contractors. By Randy Happel

28 Taming the Tiger Michels Pipeline Construction uses McLaughlin cradle bore machines to

speed up a pipeline project. By Curt Grandia

32 Tape it Up How to properly install a pipe wrap and tape to repair oil and gas lines.

By Jim Tolly

36 Site-seeing by Video Immersive Video Solutions uses aerial cameras to capture pipeline data.

By Kenn Kadow

DEPARTMENTS8 News

17 Project Roundup

42 Product Showcase

44 Events Calendar

COLUMNS6 Editor’s Message

46 Pipeline Perspectives

MARKETPLACE44 Index of Advertisers

45 Business Cards

January 2012Volume 5 Issue 1Published by Benjamin Media, Inc.

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

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


Publisher Bernard P. Krzys

Associate Publisher Robert D. Krzys

Editor James W. Rush

Associate Editor Bradley Kramer

Contributing Staff Editors Sharon M. Bueno

Keith Gribbins Pam Kleineke Kelly Pickerel

Creative Director W. M. Conley

Marketing Director Kelly Dadich

Regional Sales Managers Ryan Sneltzer

Dan Sisko

Audience Development Manager Alexis R. White

Web & Interactive Manager Mark Gorman

Conference Event Coordinator Vicki Losh

Editorial Advisory Board

Cortez Perotte Pipeline Product Engineer/Industry Representative,

Caterpillar Inc.

Todd Porter Vice President of Business Development,

New Century Software Inc.

Eric Skonberg Principal Engineer, Trenchless Engineering Corp.

Don W. Thorn President, Welded Construction LP

Kevin Waschuk Vice President, Waschuk Pipe Line Construction Ltd.

Bob Westphal Senior Vice President, Michels Corp.

Editorial & Advertising Offices

1770 Main St., P.O. Box 190 Peninsula, OH 44264 USA

(330) 467-7588 • Fax: (330) 468-2289 www.napipelines.com

e-mail: [email protected]

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Editor’s Message

New Year, New AdditionsHappy New Year and welcome to our first issue of 2012.

As you know, North American Oil & Gas Pipelines will be com-ing to you six more times this year, now that we have be-come a monthly publication. In the effort to better cover the oil and gas pipeline industry, we have also made some additions to our already strong Editorial Advisory Board.

Joining our team are Kevin Waschuk, vice president of Waschuk Pipe Line Construction Ltd., based in Red Deer, Alberta, and Don W. Thorn, president of Welded Construc-tion LP, based in Perrysburg, Ohio. Both of these fine gentlemen are longtime veterans in the pipeline sector and have been heavily involved with industry organizations, serving in leadership positions.

Waschuk started working for the family business full time in 1977. Waschuk Pipe Line Construction was started by his father in 1965. In the beginning, he worked in the field and held various labor, operating, parts and warehouse, and field office positions, enabling him to gain knowledge of the pipeline construction business. Waschuk is past president of the Pipe Line Contractors Association of Canada (PLCAC) and a current member of the association’s board of directors.

Thorn entered the industry in 1967, work-ing all over the world until joining Welded in 1982. He is a member of the API-AGA Joint Committee on Oil and Gas Field Welding Prac-tices. He serves on the board of directors for the U.S. Pipe Line Contractors Association (PLCA), for which he was president in 2009, chairman of the Safety Committee from 2010 to 2011 and is now a member of its Labor Committee. Thorn also serves on the Interstate Natural Gas Association of America (INGAA) Foundation Safety Committee, acting as the 2012 vice chairman.

Both men bring strong leadership to the Editorial Advisory Board and will be great additions to help guide our editorial coverage. Over the next year, you’ll hear from our board members in the form of the Pipeline Perspectives column, starting this month with Todd Porter, vice president at New Century Software. Porter discusses the important issue of pipeline integrity and the role of GPS tech-nology in recording essential baseline data.

Integrity management and safety will continue to be hot topics in 2012, as regulators impose more scrutiny on new projects and force companies to become proactive in maintaining reliable pipelines and facilities.

Pipeline companies are facing an environment of heightened awareness about energy infrastructure. This month’s cover story focuses on Enbridge, one of those companies working to develop new pipelines and facilities under the micro-scope of regulatory oversight. The company’s vice president of major projects, Byron Neiles, says he welcomes the increased attention because it has resulted in improved “safety culture” at Enbridge.

Safety is paramount in the pipeline industry, and that emphasis must carry over across all levels, from the suppliers, transporters, distributors and the con-tractors who build their facilities. We’re looking forward to a strong year.

Brad KramerAssociate [email protected]

Kevin Waschuk (left) and Don Thorn bring decades of experience to the

Editorial Advisory Board.


North America News

Chesapeake Energy Corp. has enlisted the help of a French energy company in a joint venture to develop its holdings in the Utica shale formation.

Total E&P USA Inc., a wholly owned subsidiary of Total S.A. based in Paris, has acquired an undivided 25 percent interest in approximately 619,000 net acres in the liquids-rich area in Ohio as part of a joint venture worth about $2.32 billion. Of the acreage included in the deal, approximately 542,000 net acres were con-tributed to the joint venture by Chesapeake and ap-

proximately 77,000 net acres were con-tributed by Houston-based EnerVest Ltd. and its affiliates. The joint venture area covers all or a por-tion of 10 counties in the eastern part of the state.

The transaction, which closed on Dec. 30, 2011, resulted in a combined value of approximately $2.32 billion, of which ap-proximately $2.03 billion was received by Chesapeake and approximately $290 million by EnerVest. Approximately $610 million was paid to Chesapeake in cash

at closing and approximately $1.42 billion will be paid in the form of a drilling and completion cost carry, which Chesapeake anticipates fully receiving by year-end 2014.

Chesapeake will serve as the operator of the joint venture and will conduct all leasing, drilling, complet-ing, operating and marketing activities for the proj-ect. The agreement provides that Total will acquire a 25 percent share of all additional acreage acquired by Chesapeake in the area. Total will also participate with Chesapeake and EnerVest in midstream infrastructure related to production generated from the assets with a 25 percent interest.

“We are pleased to extend our existing relationship with Total as a … partner in the Barnett shale to now include the Utica Shale,” said Aubrey K. McClendon, Chesapeake’s CEO. “We believe that the Utica shale is a world-class asset with world-class returns and now we

have a world-class partner to help develop the play more aggressively than we could have with our own resources. This Utica transaction is our seventh significant [joint venture] and in these seven [joint ventures], Chesapeake has sold approximately 1.5 million net acres for total leasehold consideration of $14.8 billion while retaining 3.6 million net acres as of the [joint venture] date with an indicated value … of $45.7 billion.”

Chesapeake Energy is the second-largest producer of natural gas, a Top 15 producer of oil and natural gas liquids and the most active driller of new wells in the United States. Headquartered in Oklahoma City, the company’s operations are focused on discovering and developing unconventional natural gas and oil fields onshore.

“Total is delighted to be building on our technical successes with Chesapeake in the Barnett shale [joint venture] and to expand into the liquid-rich Utica shale play in Ohio,” said Yves-Louis Darricarrere, president of Total E&P. “This is consistent with our strategy to develop positions in unconventional plays with large potential and, in this case, with value predominantly linked to oil price.”

Total is one of the largest integrated oil and gas companies in the world, with activities in more than 130 countries.

Paris-based Company to Help Fund Utica Shale Project $2.3 Billion Deal to Allow Chesapeake to Expand Drilling in Ohio

Chesapeake Energy and Total E&P USA have joined forces to continue developing shale gas plays in Ohio.

With this $2.3 billion deal, Chesapeake will be able to drill for more wells on more than 500,000 acres included in the joint venture.

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

API Urges Energy Discussion in Election Campaigns

The American Petroleum Institute (API) wants to get out the vote about energy this election season. API president and CEO Jack Gerard announced the group’s “Vote4Energy” campaign to encourage voters to make energy an important issue in this year’s elections and to get U.S. energy policy on the right track.

“It’s going to take more than tweaking current policies at the margins,” Gerard told an audience on Jan. 4, at the Newseum in Washington, D.C. “It’s going to take a course correction. We must engage the American people on these issues and make energy an important part of our national debate this year.”

The state of American energy can be strengthened, Gerard said, bringing such benefits as generating millions of new jobs, producing billions of dollars in additional government revenue and improving the country’s energy security. He added that sound policies should encourage all forms of energy.

“We must abandon energy rhetoric that pits one resource against another,” Gerard said. “We need all of our resourc-es — oil and natural gas, coal, nuclear, wind, solar, biofuels and more. Only through smart, realistic deployment of all of America’s energy assets can we realize our goal of keeping this country energy secure.”

API worked last year to encourage consideration of energy issues in policy discussions in several early primary states. Gerard said this election year is the perfect oppor-tunity to continue and enlarge that discussion. He said Vote4Energy will “help Americans understand what’s at stake and why energy issues should figure prominently in their voting decisions.”

EPA Releases Findings of Wyoming Ground Water Investigation

The U.S. Environmental Protection Agency (EPA) has found indications that natural gas production practices may have led to the contamination of ground water in a Wyoming community.

The EPA released a draft analysis of data from its Pavil-lion, Wyo., ground water investigation. At the request of Pavillion residents, the agency began investigating water quality concerns in private drinking water wells three years ago. Since that time, in conjunction with the state of Wyoming, the local community and the owner of the gas field, Encana, the EPA has been working to assess ground water quality and identify potential sources of contamination.

EPA constructed two deep monitoring wells to sample water in the aquifer. The draft report indicates that ground water in the aquifer contains compounds likely associated with gas production practices, including hydraulic fractur-ing. EPA also re-tested private and public drinking water wells in the community. The samples were consistent with chemicals identified in earlier EPA results released in 2010 and are generally below established health and safety stan-dards. To ensure a transparent and rigorous analysis, EPA is releasing these findings for public comment and will submit them to an independent scientific review panel. The draft findings announced are specific to Pavillion, where the fracturing is taking place in and below the drinking water aquifer and in close proximity to drinking water wells — production conditions different from those in many other areas of the country.

Natural gas plays a key role in the United States’ clean energy future, and the Obama administration is commit-ted to ensuring that the development of this vital resource occurs safely and responsibly. At the direction of Congress, and separate from this ground water investigation, the EPA has begun a national study on the potential impacts of hy-draulic fracturing on drinking water resources.

“EPA’s highest priority remains ensuring that Pavil-lion residents have access to safe drinking water,” said Jim Martin, the EPA’s regional administrator in Denver. “We will continue to work cooperatively with the state, tribes, Encana and the community to secure long-term drinking water solutions. We look forward to having these findings in the draft report informed by a transparent and public review process. In consultation with the tribes, the EPA will also work with the state on additional investiga-tion of the Pavillion field.”

Analysis of samples taken from the agency’s deep moni-toring wells in the aquifer indicates detection of synthetic chemicals, like glycols and alcohols consistent with gas pro-duction and hydraulic fracturing fluids, benzene concen-trations well above Safe Drinking Water Act standards and high methane levels. Given the area’s complex geology and the proximity of drinking water wells to ground water con-tamination, the EPA is concerned about the movement of contaminants within the aquifer and the safety of drinking water wells over time.

The EPA also updated its sampling of Pavillion-area drinking water wells. Chemicals detected in the most re-cent samples are consistent with those identified in earlier EPA samples and include methane, other petroleum hy-drocarbons and other chemical compounds. The presence of these compounds is consistent with migration from ar-eas of gas production. Detections in drinking water wells are generally below established health and safety stan-dards. In the fall of 2010, the U.S. Department of Health and Human Services’ Agency for Toxic Substances and Dis-ease Registry reviewed the EPA’s data and recommended that affected well owners take several precautionary steps, including using alternate sources of water for drinking and cooking, and ventilation when showering. Those recom-mendations remain in place and Encana has been funding the provision of alternate water supplies.

Ohio Halts Operation of Drilling Waste Injection Well

After 11 earthquakes in eastern Ohio over the last year, the Ohio Department of Natural Resources ordered a stop to the operation of a fluid injection well near Youngstown that is suspected for causing the rumbles. While conclusive evidence cannot link the seismic activity to the well, depart-ment director James Zehringer has adopted an approach re-quiring prudence and caution regarding the site used for natural gas drilling waste from western Pennsylvania.

“Our top priority is the health and safety of the public and the protection of Ohio’s natural resources,” Zehringer said. “We are going to make sure this process is done right and won’t hesitate to stop operation of disposal sites if we have concerns. And while our research doesn’t point to a clear and direct correlation to drilling at this site and seis-mic activity, we will never gamble when safety is a factor.”

The Class 2 injection well is owned and permitted by Northstar Disposal Services LLC of Youngstown. Following a series of low-level seismic events during the past year in the area surrounding the Youngstown Township injection

well, the ODNR invited Columbia University’s Lamont-Doherty Earth Observatory to position four seismometers in the area to capture more detailed information about seis-mic activity.

“Information freshly obtained from the Columbia Uni-versity scientists, and further analyzed by ODNR geological experts, indicates that an earthquake occurred on Dec. 24, approximately two miles below and within a mile of the injection site,” Zehringer said. “As a precautionary measure we’ve reached agreement with the well’s owner to halt in-jections until we are able to further assess and determine any potential links with recent seismic events.”

So far this year ODNR’s seismic monitoring network has documented 10 seismic events occurring in 2011 within two miles of this injection well. Each of these events reg-istered at 2.7 magnitude or lower. Generally, only earth-quakes that register above 4 magnitude are known to cause surface damage. As a relative measure, a 4 magnitude event would release approximately 40 times the energy of a 2.7 magnitude event.

There are 177 Class 2 deep well injection sites operating in Ohio.


An injection well in eastern Ohio, used to store waste related to shale gas drilling in Pennsylvania, was ordered closed by the Ohio Depart-ment of Natural Resources after a series of earthquakes in the area

were linked to the well.


Marcellus Shale Group Applauds Safety MeasuresAdvocates of the Marcellus shale natural gas developers cheered pipeline

safety legislation authored by Pennsylvania State Rep. Matthew Baker and signed in December by Gov. Tom Corbett, as well as the federal pipeline safety bill.

“The American natural gas industry values the safety of our workforce and our communities above all — from the initial development of the resource to the delivery of this clean-burning fuel to consumers,” said Marcellus Shale Coalition (MSC) president Kathryn Z. Klaber. “Rep. Baker’s and Rep. Shus-ter’s measures establish important safety standards for Pennsylvanians and all Americans, preserve competitive markets and further encourage the develop-ment of our nation’s shale gas resources. Passage of these bills is yet another unmistakable sign of the sustainability of the natural gas industry here in Pennsylvania and throughout the United States.”

INGAA Applauds U.S. Pipeline Safety Law

The U.S. interstate natural gas pipe-line industry is hard at work building on Congress’s efforts to enhance the nation’s pipeline safety through an aggressive safety program, anchored with an overarching goal of zero pipe-line incidents.

“Given the increasing role that natu-ral gas will play in fueling our econo-my, ensuring the safety and reliability of our vast delivery network of pipe-lines is paramount. The pipeline safety legislation signed into law (Jan. 3) by the President represents a balanced, bi-partisan accomplishment that will sig-nificantly improve the safety of natu-ral gas pipelines and bolster public confidence in our nation’s energy in-frastructure,” said Greg Ebel, Interstate Natural Gas Association of America (INGAA) chairman, and president and CEO of Houston-based Spectra Energy. “We commend Congress, committee leadership and their staffs in both the House and Senate, as well as Secretary (Ray) LaHood and the Department of Transportation for their tremendous effort in seeing this vital piece of legis-lation enacted.”

Ebel noted that INGAA continues to take a leadership role in pipeline safety, and its members have committed to a series of voluntary steps to improve an already strong safety record.

“Our goal is continuous improvement of the nation’s pipeline infrastructure,” Ebel explained. “While pipelines are rec-ognized as the safest mode to transport energy across the country, the industry believes even a single incident is one too many, and we will continue to work every day to further improve our perfor-mance.”

To that end, INGAA and its member companies have instituted a full-scale pipeline safety effort that, among oth-ers, includes a commitment to expand pipeline integrity management prin-ciples to the entire onshore natural gas transmission system operated by IN-GAA members and to enhance efforts to communicate with the public, land-owners, first responders and pipeline safety advocates.

“As the Department of Transporta-tion’s Pipeline and Hazardous Materi-als Safety Administration implements the provisions in the enacted pipeline safety legislation, INGAA looks for-ward to playing a lead role in support-ing the continuous improvement of our nation’s pipeline infrastructure,” Ebel said.

The MSC testified in favor of Baker’s legislation in a Penn-sylvania House Consumer Affairs Committee hearing in February last year. Separately, the U.S. Congress has passed the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 with broad bipartisan support.

The coalition board of directors on Jan. 4 elected 41 members to lead the organization’s committees and sub-committees in 2012. MSC committees craft and commu-nicate responsible practices for shale gas development in Pennsylvania, Ohio, West Virginia, New York and Maryland and are comprised of professionals from the MSC’s more than 250 member companies.

“Our committee work is at the core of the coalition, and our committee leadership is the source of our most im-portant accomplishments,” said MSC chairman Dave Spi-gelmyer. “Most importantly, it has been the work of these committees and their collaborative efforts with regulators that have placed Pennsylvania as a leader in setting indus-try leading operating practices for shale gas development. It is particularly gratifying to see a broad spectrum of MSC member companies represented in our committee leader-ship in 2012 than in any previous year, once again under-scoring the dynamic nature of our coalition and our entire industry, from producing and midstream companies to ser-vice providers and other firms across the natural gas indus-try’s diverse supply chain.”

Petroleum Demand Slips in November Total petroleum deliveries (a measure of demand) fell 1.1

percent in November 2011 compared with November a year earlier, pulled down by a 1.8 percent decline in motor gaso-line demand to an 11-year low for the month, according to the American Petroleum Institute.

Deliveries of distillate fuel and jet fuel were strong, with distillates up 4.3 percent and jet fuel up 7.5 percent. For the first 11 months of 2011, total petroleum deliveries were down 0.7 percent from the same period in 2010.

“Flagging gasoline demand suggests the consumer sec-tor of the economy is still treading water,” says API chief economist John Felmy. “But the distillate numbers show the industrial sector is faring better. While the latest Fed-eral Reserve data report a decline in manufacturing activity from last year, they show healthy growth in the mining and utilities sectors.”

U.S. refinery gasoline and distillate production were at record highs — up 2.1 percent and 6.8 percent respectively — for any November and on a year-to-date basis. Jet fuel production increased by 1.8 percent while residual fuel pro-duction slumped 11.7 percent in November. Refinery in-puts recovered from the year-over-year declines in Septem-ber and October. Total inputs were up 1.6 percent compared with November 2010.

Total petroleum imports were down for the month of No-vember from 2010 by 2.7 percent, at 10.8 million barrels per day. Crude imports in November jumped by 4.7 percent to 9.1 million barrels per day while product imports fell by 29.5 percent to 1.7 million barrels per day. Exports of petro-leum products jumped 35.4 percent against November of 2010 to reach 3.5 million barrels per day.

Crude oil production declined in November by 2.1 per-cent to 5.4 million barrels per day, although it was still at the second highest November level over the past eight years. On a year-to-date basis, production was up by 2.8 per-cent. The total number of oil and gas rigs remained above 2,000 in November for the second month in a row but at

2,011 were slightly below November 2010, according to the latest Baker-Hughes Inc. report.

Compared with November 2010, crude oil and refined product inventories declined this November. Crude oil stocks at the end of month were at 334.9 million barrels, down 5 percent from last November and down 1.5 percent from Oc-tober 2011. Gasoline inventories were up 3.2 percent from October and up 0.8 percent from November 2010.

Williams Separates E&P Business Williams has completed the process of separating the

company’s businesses into two stand-alone, publicly traded corporations. The company’s former exploration and pro-duction business, WPX Energy Inc., began trading on the New York Stock Exchange under the ticker symbol “WPX,” as of Jan. 3.

The separation process was completed with the Dec. 31 distribution of one share of WPX Energy common stock for every three shares of Williams common stock held by Wil-liams shareholders.

Williams, including its assets held through Williams Partners LP, is now an energy infrastructure company focused on connecting North Ameri-ca’s significant hydrocarbon resource plays to growing markets for natural gas, natural gas liquids (NGL) and olefins. Williams’ operations span from the deepwater Gulf of Mexico to the Canadian oil sands.

“We’ve now fully executed on our plans to create two separate and strong companies, each with a clear

focus,” says Alan Armstrong, Williams’ president and CEO. “This effort has been all about unlocking value for share-holders and creating the best possible growth prospects for our businesses.

“Williams now has an intense focus on providing our customers with the reliable infrastructure services that will help them optimize the value of North America’s signifi-cant and growing resource plays.”

On Dec. 22, 2011, Williams Partners announced its acqui-sition of the Laser Northeast Gathering System and other midstream businesses from Delphi Midstream Partners LLC for approximately $750 million. Delphi Midstream Partners, LLC is owned by American Securities LLC and management.

The Laser Gathering System is currently comprised of 33 miles of 16-in. natural gas pipeline and associated gathering facilities in Susquehanna County, Pa., as well as 10 miles of gathering pipeline in southern New York. The acquisition is supported by existing long-term gathering agreements that provide acreage dedications and volume commitments. As production in the Marcellus increases, the Laser system is expected to reach a capacity of 1.3 billion cubic feet per day (Bcf/d).

“The acquisition of the Laser system continues our strat-egy of safely and reliably serving producers through large-scale midstream infrastructure in the Marcellus Shale and other basins,” said Rory Miller, senior vice president of Mid-stream for Williams Partners.

Williams Partners plans to fund the purchase price of the acquisition with a combination of $300 million cash and approximately 7.5 million Williams Partners common units. Williams Partners expects the transaction to close in first-quarter 2012.


Armstrong


Houston Ship Channel. The remaining 2 percent share of the project will be held by a customer at the BOSTCO facility.

The first phase of the project currently includes construction of 52 storage tanks that will have a capacity of 6.6 million barrels for handling residual fuel, feed stocks, distillates and other black oils. Terminal service agreements and let-ters of intent have been executed with customers for almost all of the capacity.

“The project will include one of the deepest vessel drafts in the Houston Ship Channel and position Kinder Morgan extremely well for the growing trend of exporting petroleum related products overseas,” said Kinder Morgan Terminals president Jeff Armstrong.

BOSTCO is expected to be accretive to cash distributable to Kinder Morgan Energy Partners unit holders when the first phase of the project comes online in the third quarter of 2013. The first phase of the project is expected to be completed by the first quarter of 2014.

Ohio Shale Conference Promotes Job Growth

Banking on the booming natural gas development in eastern Ohio, the Re-gional Chamber of Youngstown and Warren hosted a conference to promote the state’s role in the Marcellus and Utica shale plays.

Billed as Ohio’s Utica and Marcellus shale play conference and exposition, the YOUNG 2011 event took place at the Covelli Centre in Youngstown, Ohio, on Nov. 30, 2011. With a wide range of exhibitors from financial insti-tutions to transportation contractors, the sold-out expo attracted thousands of attendees.

During the event, V&M Star, a pipe manufacturer that has been expand-ing its presence in Youngstown, made a major announcement that the company will invest another $57 million and add 100 full-time jobs at its facility.

The common theme of the event cen-tered on job creation for the local econo-my, which is already seeing a boost from the work in the Marcellus shale and po-tential in the Utica fields.

Kinder Morgan Buys 98 Percent Share of BOSTCO Project, Begins Construction

Kinder Morgan Energy Partners has purchased a bigger stake in the Battle-ground Oil Specialty Terminal Co. (BOSTCO) project and has begun con-struction. Kinder Morgan bought Trans-Montaigne Partners’ 50 percent interest in the project and now owns 98 percent of BOSTCO.

Although the deal was announced Jan. 4, Kinder Morgan began construction Dec. 14, 2011, on the approximately $430 million oil terminal located on the

The YOUNG 2011 Conference and Expo on Nov. 30, 2011, attracted attendees interested in

the development of Ohio’s shale gas plays.

Appalachia Midstream Fined for Erosion, Sediment Violations in PA

The Pennsylvania Department of Environmental Protec-tion (PA DEP) has fined Appalachia Midstream Services LLC of Horseheads, N.Y., Chesapeake Energy’s pipeline division, $19,510 for numerous erosion- and sediment-control viola-tions originally found last winter at its compressor station in Albany Township, Bradford County.

“Appalachia Midstream did not correct the violations documented in February by the Bradford County Conser-vation District until August, which is far longer than need-ed,” DEP North-Central regional director Nels Taber said. “We continue to work to ensure that the companies DEP regulates take their compliance obligations seriously.”

Inspections by the conservation district and DEP’s oil and gas staff in February and May found that Appalachia Midstream had failed to implement and maintain effective best-manage-ment practices to control erosion and sediment runoff during excavation for construction of a compressor station.

Best-management practices are measures used to mini-mize soil erosion and sedimentation to protect the quality of surface and groundwater in the area. They include vari-ous devices, such as silt-filter socks, as well as constructing diversion channels, sediment basins and stabilized slopes.

The inspections revealed violations of the Pennsylvania Clean Streams Law, Dam Safety and Encroachment Act and state regulations. A notice of violation letter was sent to the company on March 28, 2011, and a DEP inspection on Aug. 16, 2011, verified that Appalachia Midstream had corrected all the violations.

BP Launches National Ad Campaign on Gulf Spill Recovery

Nearing the two-year mark after the devastating Deepwa-ter Horizon incident, which resulted in the spilling of mil-lions of barrels of oil in the Gulf of Mexico, BP has launched a new nationwide television advertising campaign to up-date the American people on the progress being made to clean up and restore the Gulf Coast region.

The initial advertisement in the series, which debuted on Dec. 26, 2011, marks the first time since late 2010 that BP has gone on the air nationally with ads providing such an update. It comes as the cleanup phase of the Gulf of Mexico oil spill response is nearing completion and the first set of early restoration projects is preparing to move forward.

“We made a commitment not only to restore the Gulf, but also to keep the American people informed of that ef-fort,” said Geoff Morrell, BP America’s vice president for communications. “We’ve made significant strides over the past year and believe it’s a good time to provide a progress report to the nation.”

Shortly after the Deepwater Horizon accident, BP launched its “Voices of BP” campaign, featuring employ-ees committing to the American people that the company would clean up the spill and help the Gulf Coast recover. BP’s next ad campaign, “Voices of the Gulf,” featured local business and community leaders promoting tourism along the Gulf Coast.

Like the original “Voices of BP” campaign, this newest ad once again features BP employees, such as New Orleans native Iris Cross, a 29-year veteran of the company who manages external affairs in Louisiana. In the ad, Cross re-ports on BP’s progress in the 20 months since the spill. She reminds viewers of the $20 billion fund BP established for economic and environmental recovery and the $500 mil-lion dedicated to scientific research of the Gulf ecosystem. She also reports that all Gulf beaches and waters are open and the economy continues to show improvement, with many areas along the Gulf Coast marking 2011 as one of the best tourism seasons in years.

BP is expanding this new advertising campaign into so-cial media channels, including YouTube, Facebook and Twitter with additional custom content.

“We are proud of the progress that has been made this year along the Gulf Coast, but we know our work is not yet done,” Morrell said. “We are committed to seeing it through and providing updates to the public along the way.”

Baker Hughes New CEO Martin Craighead Assumes Role

Martin Craighead has assumed the role of Baker Hughes’ president and CEO. Craighead will build upon the success-ful seven-year tenure of Chad Deaton, who will remain chairman of the board of directors.

“During Chad’s tenure, Baker Hughes has undergone a significant transformation positioning us well to execute in the marketplace,” Craighead said. “It is an honor to succeed him as CEO. The combination of the Baker Hughes geo-market structure, our talented workforce and our com-mitment to deliver the innovative products and solutions required to help find and produce hydrocarbons all contribute to meeting our prom-ise to shareholders.”

Craighead, whose tenure with the company dates back to 1986, most recently served as Baker Hughes’ president and chief operating officer since 2010, its chief operating officer since 2009 and senior vice president from 2009 to 2010. Prior to that, Craighead had various global and regional operational and management responsibilities for an array of the company’s business units. He has worked in North America, Latin America and Asia Pacific.

“With Martin at the helm, I am confident that Baker Hughes has the right management team going forward,” Deaton said. “Martin is a strong leader with an excellent technical and commercial acumen. With the board of di-rectors, we have been working on this transition for some


Almost two years after the 2010 oil spill in the Gulf of Mexico, BP continues to promote its recovery efforts in the region.

(Photo courtesy of © BP p.l.c.)

Craighead


time, and we are confident that Martin’s knowledge of Baker Hughes’ business and depth of experience within our company will serve our investors and customers well.”

As Baker Hughes’ CEO, Craighead will oversee operations in more than 80 countries and more than 53,000 employ-ees. Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company also provides industrial and other products and services to the downstream refin-ing, process and pipeline industries.

Craighead has a bachelor’s degree in petroleum and natu-ral gas engineering from Pennsylvania State University and a master’s degree in business administration from Vanderbilt University. The recipient of the 2010 C. Drew Stahl Distin-guished Achievement Award at Penn State, Craighead serves his community in a variety of charitable organizations.

Clean Air Council Blasts PA DEPAfter delaying compilation of a Marcellus shale emissions

inventory for a year, the Pennsylvania Department of En-vironmental Protection (PA DEP) requested the data nec-essary to compile a 2011 inventory in December. PA DEP must submit a statewide inventory of emissions from all stationary sources to the U.S. Environmental Protection Agency (EPA) by Dec. 31, 2012.

PA DEP notified potentially affected Marcellus shale owners and operators of the new reporting requirements on Dec. 6, 2011 and indicated that the data is due by March 1, 2012. While PA DEP officials reported that they notified 99 owners and operators, they counted each company up to four times for each address they sent the notification to and failed to send the reporting requirements to many large op-erators in the Marcellus shale. According to state law, only those owners and operators who have been advised by PA DEP to submit a source report are required to do so.

The Clean Air Council submitted an inquiry to PA DEP secretary Michael Krancer, requesting clarification on how PA DEP identified potentially affected owners and operators and how they intend to meeting the deadline for reporting to the EPA if the data is incomplete.

Emission inventories are fundamental building blocks used to develop air quality control strategies on a local, regional and national level. Emission inventories are also used to track accountability and assess air quality program effectiveness.

“Each stage of Marcellus Shale operations emits harm-ful air pollution and an emissions inventory is as essential tool to protect Pennsylvania’s air quality,” said Joseph Otis Minott, executive director of the Clean Air Council, “It is unclear how PA DEP can impose monitoring and reporting requirements upon a portion of the Marcellus Shale indus-try at the end of 2011 and expect a complete inventory.”

Aegion Corp. Awarded Offshore Shell ProjectShell has tapped Aegion Corp. subsidiary The Bayou Cos.

for a pipeline coating project in the Gulf of Mexico. The contract comprises approximately 80 miles of 16- and 18-in. diameter oil and gas pipelines for the Shell Mars B deep-water development.

In January, Bayou began inner-diameter coating, outer-diameter coating, concrete weight coating and anode and buckle arrestor installation for the project. The Mars B de-velopment, which includes “Olympus,” Shell’s second ten-sion leg platform on the prolific Mars field, will export oil and gas to West Delta 143, a hub facility for deepwater oil

and gas production located 90 miles off the coast of New Orleans. At this facility, the pipeline will tie into an exist-ing pipeline that will then transport the oil and gas into Fourchon, La.

Bayou’s previous experience completing deepwater proj-ects for Shell includes the fabrication of pipeline end ter-minations in some of the deepest pipelines in the world and the internal and external fusion bond epoxy coating of water injection lines, flow lines and export lines. These coatings provide corrosion protection to steel pipelines op-erating in a saltwater environment.

“Bayou has worked with Shell in the past and we look forward to this opportunity to provide protective coatings on this significant project,” said Dorwin Hawn, senior vice president of Aegion’s Energy & Mining Group, “Our logis-tics capabilities in New Iberia, La., which include the ability to simultaneously load barges at four sites, will enable us to effectively manage this project. In addition, Bayou recently achieved ISO certification. We believe our improved pro-cesses and quality controls will provide additional benefit to Shell throughout this project.”

Aegion is a global leader in infrastructure protection, pro-viding corrosion mitigation for industrial pipelines and for the rehabilitation and strengthening of sewer, water, energy and mining piping systems and buildings, bridges, tunnels and waterfront structures. Bayou, a subsidiary of Aegion Corp., is a leading provider of cost-effective solutions to onshore and offshore energy and infrastructure companies primarily in North America and the Gulf of Mexico.

Stockholders Approve Energy Transfer, Southern Union Merger

The merger of Energy Transfer Equity and Southern Union Co., which was first announced July 19, 2011, has now received the backing of the shareholders. On Dec. 9, 2011, during a special meeting, 98 percent of Southern Union stockholders voted to approve the proposed merger.

According to the agreement, Energy Transfer will acquire Southern Union for $9.4 billion, including $5.7 billion in cash and Energy Transfer common units. Under the terms of a revised agreement, which was unanimously approved by the boards of directors of both companies, Southern Union shareholders could elect to exchange each outstand-ing Southern Union common share for $44.25 of cash or one Energy Transfer common unit.

The merger is expected to be consummated in the first quarter of 2012, subject to regulatory approval.

Energy Transfer Equity LP is a publicly traded partner-ship, which owns the general partner and 100 percent of the incentive distribution rights of Energy Transfer Partners LP (ETP) and approximately 50.2 million ETP limited part-ner units; and owns the general partner and 100 percent of the incentive distribution rights of Regency Energy Partners LP (RGP) and approximately 26.3 million RGP limited part-ner units.

Southern Union Co., headquartered in Houston, is one of the nation’s leading diversified natural gas companies, engaged primarily in the transportation, storage, gathering, processing and distribution of natural gas. The company owns and operates one of the nation’s largest natural gas pipeline systems with more than 20,000 miles of gathering and transportation pipelines and one of North America’s largest liquefied natural gas import terminals, along with serving more than half a million natural gas end-user cus-tomers in Missouri and Massachusetts.

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

Miller Pipeline Corp. was awarded a contract by Williams Midstream to install 6.8 miles of 10-in. pipeline in Fayette County, Pa. Headquarters is Uniontown, Pa. The superintendent is Keenon Snow. Approximate start date: Jan. 3.

Price Gregory International Inc. was awarded a contract by Anadarko Petroleum Corp. to install 3 miles of 12-in. pipeline in Clinton County, Pa. Headquarters is Beech Creek, Pa. The superintendent is Mike Phillips. Approximate start date: Jan. 3.

Sheehan Pipe Line Construction Co. was awarded a contract by Mark West to install 30.9 miles of 10-in. pipeline and associated fabrication in Marshall and Wetzel counties, W.Va. Headquarters is Glen Dale, W.Va. The superintendent is Joe Parrish. Approximate start date: Jan. 3.

Price Gregory International Inc. was awarded a contract by Chief Gathering LLC for the installation by horizontal directional drilling of 30 miles of 24-in. pipeline with multiple HDD crossings in Luzerne County, Pa. Headquarters is unknown. The superintendent is Rex Green. Approximate start date: Jan. 1.

Snelson Cos. Inc. was awarded a contract by Enterprise Products Co. to fabricate an undetermined length of 20-, 24- and 30-in. piping in Sublette County, Wyo. Headquarters is Pinedale, Wyo. The superintendent is Trevor Thayer. Approximate start date: Dec. 12, 2011.

Schmid Pipeline Construction Inc. was awarded a contract by XTO Energy/Mountain Gathering to install 10,400 ft of 12-in. pipeline in Butler County, Pa. Headquarters is Callery, Pa. The superintendent is Lyle McDowell. Approximate start date: Dec. 9, 2011.

Laney Directional Drilling Co. was awarded a contract by U.S. Pipeline Inc. to install 600 ft of 8-in. pipeline via directional drilling in Burlington County, N.J. Headquarters is on the jobsite. The superintendent is T.J. Strickland. Approximate start date: Dec. 7, 2011.

Miller Pipeline Corp. was awarded a contract by Williams Midstream to install 2.9 miles of 10-in. pipeline in Greene County, Pa. Headquarters is unknown. The superintendent is Mark Carpenter. Approximate start date: Dec. 6, 2011.

Laney Inc. was awarded a contract by Troy Construction for road boring on 37 miles of 20-in. pipeline in Johnston and Wayne counties, N.C. Headquarters is Selma, N.C. The superintendent is Grady Keller. Approximate start date: Dec. 5, 2011.

Latex Construction Co. was awarded a contract by Atlanta Gas Light Co. to install approximately 750 ft of 12-in. pipeline, prefabricate three regulator stations and install one regulator station in Cobb County, Ga. Headquarters is Mableton, Ga. The superintendent is Bill Burt. Approximate start date: Dec. 5, 2011.

Minnesota Ltd. Inc. was awarded a contract by Wisconsin Pipeline Co. for integrity digs in Portage, Wood, Clark, Eau Claire, Pepin and Pierce counties, Wis. Headquarters is Big Lake, Minn. The superintendent is Chad Piescher. Approximate start date: Dec. 5, 2011.

Rockford Corp. was awarded a contract by Williams Midstream to install 250 ft of 8-in. pipeline, 3,000 ft of 10-in. pipeline, 3,600 ft of 12-in. pipeline and 2,000 ft of 20-in. pipeline in Susquehanna County, Pa. Headquarters is Montrose, Pa. The superintendent is Mickey Langston. Approximate start date: Dec. 5, 2011.

Sheehan Pipe Line Construction Co. was awarded a contract by ONEOK Partners to replace 6,085 ft of 30-in. pipeline in Will County, Ill. Headquarters is Channahon, Ill. The superintendent is Dale Kennedy. Approximate start date: Dec. 5, 2011.

R.L. Coolsaet Construction Co. was awarded a contract by Sunoco Pipeline to install approximately 1,100 ft of 22-in. pipeline in Wood County, Ohio. Headquarters is unknown. The superintendent is Joe Elliott. Approximate start date: Dec. 1, 2011.

Phillips & Jordan Inc. was awarded a contract by Price Gregory International Inc. to install 8.55 miles of 24-in. pipeline in Wetzel County, W.Va. Headquarters is St. Clarksville, Ohio. The superintendent is Mark Smith. Approximate start date: Nov. 29, 2011.

Price Gregory International Inc. was awarded a contract by Carnian Energy to install 8.4 miles of 24-in. pipeline in Wetzel County, W.Va. Headquarters is Lumberport, W.Va. The superintendent is Buck Hines. Approximate start date: Nov. 29, 2011.

U.S. Pipeline Inc. was awarded a contract by PSE&G to replace 2,210 ft of 8-in. pipeline in Burlington County, N.J. Headquarters is Mansfield, N.J. The superintendent is Eugene Weber. Approximate start date: Nov. 29, 2011.

Biglnch Fabricators and Construction Inc. was awarded a contract by Kinder Morgan to install 26- and 36-in. mainline drips in Keokuk County, Iowa. Headquarters is Montezuma, Ind. The superintendent is Frank Ayers. Approximate start date: Nov. 28, 2011.

BigInch Fabricators and Construction Inc. was awarded a contract by Panhandle Eastern to install 3,600 ft of 8-in. pipeline in Randolph County, Mo. Headquarters is Moberly, Mo. The superintendent is Steve Enerson. Approximate start date: Nov. 28, 2011.

North American Pipeline Project Roundup

Listings Contributed by


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

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

Bridging the Energy GapEnbridge Builds Safe Pipelines to Serve North AmericaBy Bradley Kramer

Ever since the company began in 1949, Enbridge has been on a rapid path toward dominance in the North

American oil and gas pipeline industry. Starting as the Interprovincial Pipe Line Co., the company changed its name to Enbridge in 1998.

The Interprovincial pipeline was originally designed to transport crude oil from Leduc, Alberta, to refineries in Regina, Saskatchewan, but over the ensuing decade the sys-tem expanded to serve markets in Ontario and Wisconsin. At more than 1,800 km, the pipeline at the time was the longest ever constructed in the world, forming the back-bone of Canada’s energy transportation network.

Today, Enbridge ships more than 2 million barrels of oil per day and delivers more than 400 billion cubic feet of natural gas each year. The company operates the longest oil and liquids pipeline system in the world, with approximately 13,500 km of pipelines in Canada and the United States. And now, Enbridge is screening a pipeline project that will open up access to the Asian market for western Canada’s oil supply.

The Northern Gateway system would include two 1,177-km pipelines from Alberta to the British Columbian coast-line, with associated storage tanks and terminals, at a cost of $5.5 billion. Crude oil could then be taken by ship to the Pacific Rim countries, where demand rocketed upward over the past few years. The Canadian National Energy Board (NEB) began hearings about the project on Jan. 10.

Meanwhile Enbridge continues to expand its pipeline network with the majority of its slated projects located in northern Alberta, the U.S. Midwest and the Gulf Coast re-gions, according to Byron Neiles, senior vice president of the major projects group for Enbridge.

“All throughout our mainline system, there are various expansion efforts, whether it’s twinning, looping or adding tanks or horsepower to a pipeline,” Neiles says. “In regions like Oklahoma, we’re very dominant.”

The major projects group is responsible for cost estima-tion and project development for major pipeline and facili-ties construction projects with a price tag of $50 million or more in Canada and the United States. Once the project is commissioned, the group is responsible for its execution.


Byron Neiles heads up major projects for Enbridge. In 2012, he expects the company to employ thousands of people between management personnel and mainline contractors in the United

States and Canada.

The oil sands in Alberta continue to be a driving force for system expansion, but Enbridge has also experienced strong growth in its Bakken shale development in the Williston Basin region straddling the borders of Saskatch-ewan, Montana and North Dakota. From the natural gas side, the company has a strong presence in the Gulf Coast region, especially in Texas and Oklahoma, with the shale plays there.

Safe CrossingsAs Enbridge continues to expand its oil and gas pipelines

and facilities, the industry as a whole has experienced in-creased scrutiny from the public and governmental regula-tors with an intensified focus on safety.

Over the past two years, a series of unfortunate events in the energy industry resulted in more stringent regulatory oversight. In July 2010, Enbridge was at the center of atten-tion with a leak to its Lakehead system in Marshall, Mich. Enbridge was quick to respond and worked to restore the environmental damage.

These events led to a heightened public awareness of oil and gas transportation infrastructure and construction. In response, Enbridge has increased its investment in quality programs and improved its safety procedures.

“It has meant, first of all, when a project goes to a regula-tory proceeding, there’s more scrutiny on design, on qual-ity inspection, on integrity and all the evidentiary informa-tion,” Neiles says. “We welcome that.”

Enbridge has also advanced its companywide “safety cul-ture” to improve all aspects of project development.

“While we’ve always had vendors with a robust qual-ity record, we’ve gotten better at embedding our own inspectors with our vendors as belts and suspenders to support those processes and up our investment in quality control.”

From a safety perspective, Enbridge must also consider the contractors it hires to build its pipelines. The company must ensure it properly vets the people who work on the jobsites.

“One of the implications of growth in 2012 forward is that we will surpass our record of capital spent during the peak of 2008 and 2009, which means we’ll be employing more main-line and facilities contractors than we ever have in our histo-ry,” Neiles says. “The challenge in advancing Enbridge’s safety culture will not just be with the contractors we know, but also the new companies we’ll be working with.”

Enbridge has implemented a set of “leading indicators” and life-saving rules that the company requires its contrac-tors to adopt as a prerequisite of working for Enbridge. Ad-ditionally, the major projects group has joined forces with DuPont Sustainable Solutions to help them get beyond just having a low incidence rate, but to create an environment where workers independently intervene in an unsafe situa-tion vs. looking to management for direction.

“It’s not good enough to reach an excellent total record-able frequency (TRF),” Neiles says. “Veterans can become complacent. We want to end unsafe behavior, and we don’t want younger workers to adopt it. We want to nip com-placency in the bud and make sure it’s not exacerbated by younger workers.”

Enbridge has found that a majority of the contractors it is working with are already on the same page regarding its safety culture.

“They’re of like mind and know it’s not a cake walk,” Neiles says. “The contractors that are going to work with us are adopting our leading indicator behavior.”

Aside from ensuring that its employees adopt strong safe-ty values, Enbridge must also be a good steward of the envi-ronment, says Mark Maki, senior vice president of Enbridge and president of the company’s master limited partnership Enbridge Energy Partners.


Enbridge continues to expand its pipelines and related facilities, holding onto its position as one of the biggest pipeline operators in North America.


Put Your Bakken to itOver the past decade, the Bakken shale region on the

border between the United States and Canada has become an increasingly strong resource for light, sweet crude.

North Dakota has become the No. 3 producer of oil in the United States because of the Bakken formation, says Kevin Hatfield, senior director of gathering systems for Enbridge Pipelines (North Dakota).

“That oil is not only important to the Williston Basin, but to North America’s overall energy security, allowing for

“The challenges of this more stringent regulatory environ-ment are that we have got to be fair to land owners and fair to the states we’re dealing with,” Maki says. “Safety has to be par-amount in the processes we use in developing these resources. We have to be a safe and responsible operator, we have to be a good neighbor to the state where we’re doing business and we have to be good neighbor to the land owners. Safety is job No. 1 for any pipeline operator, plain and simple.”

In that effort, Enbridge has developed a comprehensive public awareness program to communicate with the public, emergency responders, excavators and local governments about pipeline safety. The company provides information on warning signs of potential pipeline emergencies and how to respond, as well as information about one-call noti-fication requirements to help prevent third-party damage. The U.S. Department of Transportation’s Pipeline and Haz-ardous Materials Safety Administration (PHMSA) conducts periodic audits of this public awareness program to make sure it meets regulatory requirements.

Give Us Some GasEnbridge has been aggressive in the natural gas market,

developing pipelines and facilities in the Southwest. The company’s footprint in this sector is predominantly in Texas and Oklahoma, with three large gathering systems in eastern Texas, northern Texas, the Texas Panhandle and western Oklahoma.

Natural gas accounted for about 35 percent of Enbridge’s earnings last year, Maki says, and the company is commit-ted to further developing these systems.

“In the long run it’s a very important growth platform for the company,” Maki says. “There will continue to be an increased use of natural gas in North America for energy and hopefully in transportation. Natural gas is going to be a major source of energy for North America going forward. We hope to leverage that into our long haul pipes.”

Although Enbridge remains strong with established natu-ral gas reserves in North America, shale gas is becoming an ever-increasing supply source for the company.

“We’ve built a lot of pipelines to service shale gas, espe-cially in the Haynesville region, where we have 20- to 36-in. pipelines to serve the residential market,” Maki says. “In the Barnett shale, we’ve built processing plant additions. And in the Anadarko region, there’s a lot of construction and a lot of development of facilities to access emerging plays.”

Enbridge is focused on education with its public awareness program, says Mark Maki, senior vice president at Enbridge. The company works to communicate with the local residents and governments

about pipeline safety and what to do in case of an incident.

Enbridge is uniquely positioned to capitalize on the developments in the Bakken shale, says Kevin Hatfield, senior director of gathering systems for Enbridge Pipelines (North Dakota). The company has

tripled its capacity in the region since 2005.

less reliance on foreign oil,” Hatfield says. “Bakken has been taking on a huge amount of growth in the last five years.”

Enbridge purchased two legacy systems in the Williston Basin in the early 1990s. The gathering pipelines straddled the Canada-U.S. border, one serving southeastern Saskatch-ewan and Manitoba and the other serving western North Da-kota and northeastern Montana. The two systems had served the region for 50 years. Enbridge was fortunate that the foot-print of these gathering lines overlaid the Bakken formation.

“We’re uniquely placed to capitalize on the growth of the Bakken development,” Hatfield says. “Speaking from the North Dakota perspective, the current trend is going to continue. We’re seeing a ramping up of production, 20 to 30 barrels per day, month over month. I see that continuing in 2012.”

In the last six years, Enbridge has tripled its capacity in the North Dakota system. Up until 2005, the gathering system had a capacity of 80,000 barrels per day. Through a series of six expansions, the company increased capacity to 210,000 barrels per day. The company just announced a rail project to provide interim capacity until another expansion pipeline can be built to further open access to its Bakken system.

Bridge to the Future Enbridge is preparing for more expansion in 2012.

Last winter, the company was preparing for a down year after a record three years of expansion. A number of its customers had delayed projects for 2011, and Enbridge was looking for areas to redeploy people or possibly enact layoffs.

“But all of a sudden after Christmas, oil prices rose and led to projects kicking off,” Neiles says. “So we started 2011 far more active and more optimistic than at year-end 2010.”

Neiles sees the oil and gas industry trending upward in 2012, but he notes that the increased regulatory scrutiny on projects has caused some major projects, like TransCan-ada’s Keystone XL pipeline, to be delayed, which affects the

supply chain and could cause a tightened labor market in Canada and the United States. Still, he expects Enbridge to add more personnel this year.

“When we look at the forecasts from a number of sources, industrial capital expenditures will increase across all lines of business,” Neiles says. “We will need to hire at least 200

more people in the coming year. That doesn’t include the mainline contractors we’ll be employing. All told, we’ll be engaging thousands of people for projects on both sides of the border.”

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


Enbridge Continues to Expand CapacityProjects Serve Gulf Coast and Bakken Shale

Enbridge continues to expand its energy delivery infrastructure in the rapidly growing Bakken region, as well as in the Gulf Coast. Two recent project announcements will greatly expand its oil delivery capacity in North America.

On Dec. 22, 2011, the Canadian National Energy Board approved the company’s Bakken Pipeline Project Canada, which will extend an existing pipeline from Berthold, N.D., to Steelman, Saskatchewan, by constructing 124 km of 16-in. diameter pipeline to transport crude oil between a new Bakken Pump Station, near the existing Enbridge Westspur Steel-man Terminal, and the existing Enbridge Pipeline Inc. Cromer Terminal, near Cromer, Manitoba. The U.S. segment of this pipeline is currently owned by Enbridge Pipelines (North Dakota), a subsidiary of Enbridge Energy Partners.

While progress continues at expanding pipeline capacity in the Bakken region, Enbridge will also build a $145 million rail facility near the Berthold station. This expansion will increase takeaway capacity from Berthold by 80,000 barrels per day.

The rail project includes the construction of a double-loop unit-train facility, crude oil tankage and other terminal facili-ties adjacent to its existing facilities near Berthold. The system will have the ability to stage three unit-trains at Berthold at any given time. An initial start-up phase will begin at 10,000 barrels per day of export capacity in July 2012, with the full export capacity scheduled to be in-service by early 2013, before completion of Enbridge’s Bakken Expansion Program.

Down South, Enbridge will proceed with its Gulf Coast Access project, which the company announced on Dec. 20 that it has secured sufficient capacity commitments from shippers. The project will offer crude oil transportation from its terminal at Flanagan, Ill., to the U.S. Gulf Coast. Enbridge also announced that in response to shipper requests it will hold a second open season early in 2012 to provide an opportunity for shippers to subscribe for additional capacity.

The Gulf Coast Access project will involve construction of an additional line from Flanagan south to Cushing, Okla., following Enbridge’s existing Spearhead Pipeline right of way. This line is expected to be in service by mid-2014 at an estimated capital cost of approximately $1.9 billion. From Cushing, crude oil will move to Houston and Port Arthur, Texas, on the Seaway Pipeline system owned by a joint venture between Enbridge and Enterprise Products Partners.

Enbridge bought ConocoPhillips’ 50 percent share of the Seaway system in November 2011, and the new partners soon after decided to reverse the flow of crude oil to better serve the Gulf region.

Enbridge requires its contractors to adopt the company’s robust safety culture to ensure pipelines are built responsibly and dependably.

James Dixon and Terrell Sims had been working in the mulching business for more than a decade when an op-

portunity came to build their own company assisting ener-gy contractors in clearing the way for pipeline installations. So the two land-clearing gurus enthusiastically embraced the chance to play a more intimate role alongside the new owner of an established wood-processing company — Go Green Services — when the former principal decided to pass the torch on to new leadership.

College Station, Texas-based Go Green Services was re-organized with specializations in pipeline right-of-way and location pad clearing for energy companies, serving as both general contractor and subcontractor for pipeline installers. With 18 employees and an impressive fleet of

environmental and wood-processing equipment, the com-pany is currently well positioned for future growth … and Sims is optimistic about what lies ahead for the newly re-organized entity.

“Go Green Services is more than a collection of laborers and a man with a plan,” Sims says. “Our goal is to fashion ourselves as an industry leader and turnkey land-clearing solutions company. We’re able to handle projects of vary-ing sizes and complexity — many of which are time-sensi-tive, primarily for exploration and production companies — by providing the reliability that a lot of other folks can’t.”

According to Dixon and Sims, the Go Green Services fleet of equipment is instrumental in helping their crews complete time-sensitive projects with greater efficiency.


Clearing Pipeline Rights of Way — the Right Way

Go Green Provides Turnkey, Environmentally Friendly Land-Clearing Solutions for Pipeline Installation Contractors

By Randy Happel


plan of attack. The job was the second phase of a 147-mile (236.6-km) pipeline install that spanned 51 miles (82.1 km) and necessitated clearing a swath approximately 90 ft (27.4 m) wide — the equivalent of approximately 550 acres (222.6 hect-ares) for the total project. The woody mass prevalent there was comprised primarily of mesquite, blackbrush and hackberry, all of which are very hard woods and difficult to grind.

Mesquite is an extremely hard wood that can reach a height of 10 to 15 ft (3.0 to 4.6 m), although in most of its range tends to remain shrub size. Eradicating mesquite is often difficult because the plant’s bud regeneration zone extends down to 6 in. (15.2 cm) below ground level and can regenerate from a piece of root left in the soil. Mesquite, in combination with the bushy, shrub-like blackbrush, is often difficult to remove and also hard to grind. In addition to the tough wood fibers, the Go Green Services team also en-countered wetlands, rocks, water crossings and occasional roadways along the route, all of which tend to inhibit pro-duction efficiencies.

The first and second phases of the job were completed by Pumpco Inc., a pipeline construction contractor based in Giddings, Texas. With more than three decades of expe-rience in the pipeline construction and right-of-way busi-ness, Pumpco has established a loyal customer base pri-marily of energy companies, including Texas-based Energy Transfer Co., project owner of the project completed by Go Green Services and Pumpco, originating in McMullen County, Texas. Energy Transfer owns and operates a diversi-fied portfolio of assets in the natural gas, natural gas liquids and propane sectors that comprise more than 17,500 miles of pipeline and related facilities in several states.

Headliners include two Vermeer HG6000 horizontal grind-ers, supported by a cast of nine mulching rigs, two haul trucks and a track hoe.

“The grinders we own are awesome machines,” Sims says. “These machines allow us to serve on larger-scale proj-ects with increased efficiency versus just having mulching machines or tractors to rely on for the bulk of the work. It’s pretty awesome to watch.”

51 Miles, 550 Acres, 40 DaysGo Green Services recently completed a right-of-way

land-clearing job in South Texas for a 30-in. (76.2-cm) natu-ral gas pipeline installation with stringent time constraints that necessitated a well-coordinated and highly efficient

Go Green Services selected one of its horizontal grinders to serve as the workhorse for the project, with additional support from two mulching units. The project owner and contractor also jumped into the act, providing dozers and excavators for pushing the woody mass off to the side and subsequently feeding the fallen material into the Vermeer grinder with an excavator.

The 51-mile (82.1-km) Phase II stretch of the project was installed using the open-cut trench method. Pumpco select-ed a regiment of Vermeer tractor trencher models — includ-ing the T1055, T1155 and T1255 Commander 3 series tren-chers — to carve the route for the 30-in. (76.2-cm) diameter line through the tough South Texas terrain. With produc-tion rates moving along at a favorable clip, Go Green Ser-vices was able to complete the land-clearing portion of the project in an astonishing 40 days.

“This was a very fast-paced job, simply because of the production rates we needed to achieve in order to com-plete the project in the specified timeframe,” Dixon says. “The contractor played an important part in helping main-tain efficiencies by assisting with removal. But the capacity of the Vermeer grinder was more than enough to keep pace, and it performed well. We were actually clearing about 22 acres (8.9 hectares) every day. Our experience has proven the HG6000 grinder to be a very reliable machine.”

A 4-in. (10.1-cm) screen was selected to convert the hard woody mass into a mulch amendment that was later reap-

plied to the top of the soil surface. The mulch plays an im-portant sustainability role by providing organic matter and helping to control erosion. Mulch also helps protect what little moisture does fall in the region of South Texas and provides a firm base for new grass to take root as ground cover. In addition, the mulch provides valuable organic nu-trients for the soil — something that is crucial for regrowth, as approximately 2 ft (0.6 m) of topsoil is usually stripped away at the point where the pipeline is installed.

“It never rains down here, so anything we can do to preserve what little moisture we do receive here is very beneficial,” Sims says. “Bringing the mulch back and applying it to the stripped topsoil helps heal the surface wounds.”

Sims estimates the HG6000 grinder was fully operational approximately eight hours every day, with periodic time-outs for inspection and servicing. He says proper servicing is critical for achieving maximum production rates and ad-vises fellow land-clearing contractors to remain diligent in taking good care of equipment.

“We’ve been really pleased with the reliability and toughness of our grinders, yet even the best equipment is going to break down,” Sims says. “But the frequency of such malfunctions can be minimized with proper servicing and maintenance. At the end of the day, it’s also important to have a dealer and manufacturer to rely on when something happens that can’t be fixed here.”


Go Green Services used its stout fleet of grinders, mulchers, trucks and track hoes to clear a right-of-way route rife with tough Texas mesquite, an extremely hard wood that can reach a height of 10 to 15 ft, which provided one of many challenges along the terrain that

also included wetlands, rocks, water crossings and occasional roadways.


Environmental Role ModelsA great deal of the growth Go Green Services has real-

ized since the company was reinvigorated at the capable direction and vision of Dixon, Sims and the new owner can be attributed to their collective dedication to building customer relationships and responsiveness. But Sims is also quick to point out that much of their success is linked to an operational philosophy that focuses on environmental responsibility. He credits the capabilities of today’s land-clearing and wood-processing equipment for allowing their crews to operate in a sustainable way.

“While a certain amount of soil excavation is required for installing the actual pipelines, there is really no need to bulldoze the entire right-of-way,” Sims says. “We focus on land-clearing approaches that are the least environmentally invasive way to clear property. The capabilities and efficien-cy of our grinders and the ability to yield a product that allows for reincorporation into topsoil as a soil stabilizer are changing the way people look at land clearing.

“It’s a step in the right direction and definitely a feath-er in the hat for Vermeer and the other companies that manufacture and supply us with such good-quality, reliable equipment,” Sims continues. “Mulching and grinding are becoming the norm, whereas five, 10 years ago, it wasn’t all that popular because bulldozing, burning and burying were the norm. The land-clearing tide has certainly turned.”

One might say that the Go Green Services approach is the right way for clearing rights of way.

Randy Happel is a features writer for Two Rivers Marketing, based in Des Moines, Iowa, who provided this article on behalf of Ver-meer Corp., of Pella, Iowa.

After Go Green Services cleared the right-of-way, Pumpco Inc. used a tractor trencher to carve the 51-mile route for the 30-in. diameter pipeline through the tough South Texas terrain.

Taming the Tiger

Michels Uses Cradle Bore Machine to Speed

Pipeline ProjectBy Curt Grandia


In the southern United States, where natural resources are abundant and the domestic energy they provide is more

and more important to meeting the nation’s demands for fuel, pipeline projects must be fast-tracked and online as quickly as possible to begin paying back the large invest-ment in infrastructure. The $1 billion Tiger Pipeline provides a good example of the speed required on major pipeline projects. Construction began in May 2010 with a firm target service start date of Dec. 1, 2010, so contractors had about six months to install 175 miles of 42-in. natural gas pipeline, stretching from the Carthage, Texas, area to Perryville, La.

The new pipeline’s route followed two existing pipelines for approximately 98 percent of its path. It has a capacity of 2 billion cubic feet per day (Bcf/d), with future commit-ted expansion plans to 2.4 Bcf/d. Ultimately, the Tiger Pipe-line will carry natural gas to seven interstate pipelines and one intrastate pipeline supplying natural gas to the Midwest and Northeast.

Working for Energy Transfer Partners, Michels Pipeline Construction, a division of Brownsville, Wis.-based Michels Corp., was one of two contractors on the project to handle under-road bores. The company’s work consisted of approxi-mately 50 bores in northeast Louisiana, beginning at Delhi and continuing west to the Washita River near Monroe. The stretch covered more than 50 miles. Work began in early July and finished in September. To speed its work, Michels’ crews used three McLaughlin CBM 48 cradle boring machines.

“I’ve been around cradle boring machines since I started in the pipeline business, but this is the first time I’ve used a McLaughlin machine,” says Marty Layton, a foreman for Michels. “It takes a lot of power to turn that 42-in. auger, and the McLaughlin cradle bore machines were great on this project. We’ve had cradle rigs and track rigs and different

Working for Energy Transfer Partners, Michels Pipeline Construc-tion handled under-road bores during the installation of the Tiger Pipeline in northeastern Louisiana. The stretch covered more than

50 miles with approximately 50 bores, using McLaughlin cradle boring machines.


types of boring rigs, but a cradle boring machine in this part of the country is just the fastest, most efficient way to go.”

The McLaughlin CBM 48 cradle boring machine can in-stall steel casings ranging in diameter from 10 to 48 in. and can install casing sections up to 120 ft in one pass.

The cradle boring method helps save pipeline contrac-tors time because it’s not necessary to set up the project as a construction pit, which is often necessary with pit-launched auger boring. Using a track auger boring machine is effective for bores longer than 200 ft and where rock is prevalent. But for shorter bores, like the under-road bores performed by Michels’ crews, cradle boring is ideal. In cra-dle boring, the crew excavates a trench the length of the casing and the cradle boring machine and casing are sus-pended in the trench using pipelaying or sideboom equip-ment. The reduction in setup time helps pipeline contrac-tors complete more bores per day.

“We completed an average bore in one day and that was for a 100-ft bore,” Layton says. “To actually bore, we would pull about 18 in. a minute, so a 90-ft bore would only take about an hour and the rest of the time was spent setting up the site.”

Speed Boring“The first step in cradle boring is to create the approach

to the road crossing by excavating dirt to attain the cover required on the project, which in this case was 5 ft,” Layton says. “The crews used two backhoes to excavate approach areas and attain the required cover.”

At the surface, auger flighting is inserted into each sec-tion of a dummy steel casing and the casings are welded to-gether to form a continuous string. A jacking lug, or “dead man,” is installed crossways over the top of the bore pit entrance to provide reaction force for a winch used to pull the assembly forward into the bore.

Then the dummy steel casing is attached to the cradle boring machine by placing the casing string into a cradle on the front of the machine. The auger flighting is at-tached to the machine and three chains running over the top of the casing secure the string to the cradle boring machine.

The chains are attached to hydraulic cylinders, which provide even pressure on the casing to ensure a secure fit throughout the bore.

Michels had three crews on the project, each of them equipped with a McLaughlin CBM 48 cradle boring ma-chine, two backhoes and two sidebooms. The crews used the backhoes and sidebooms to lower the casing string and cradle boring machine into the trench and help maintain the direction and grade of the bore. A powerful 32.5-ton hydraulic winch pulls the machine forward in the trench as the auger flighting removes spoil.

After sufficient pipe is installed to provide support and maintain line and grade, the casing cradle is removed and only the boring machine is supported. Spoil from the bore is removed by the auger flighting inside the casing back to the machine and deposited into the trench or pit.

Once the casing is installed, the cradle boring machine is disconnected and the auger flighting is pulled back through the installed casing to remove any remaining spoil from the dummy pipe. Then the dummy pipe is extracted and the permanent pipe is installed using the cradle boring machine.

“The McLaughlin machines are getting pretty popular,” Layton says, “especially when installing larger diameter pipe. And that’s because they’re such a strong machine. Completing 50 bores within three months is no easy feat, but the cradle boring machines made that possible.”

Curt Grandia is a features writer for Two Rivers Marketing.

After sufficient pipe is installed to provide support and maintain line and grade, the casing cradle is removed and only the boring ma-chine is supported. Spoil from the bore is removed by the auger flighting inside the casing back to the machine and deposited into the

trench or pit.

During summer 2011, Farwest Corrosion Control sup-plied a field-applied tape coating system for a pipeline

relocation project in Southern California. While not in-volved in assisting with the coating specification, Farwest has long-standing relationships with the contractor and the pipeline owner.

Two new 12-in. pipelines were built. The fittings and some of the girth welds were field-coated with Amcorr Viscotaq Coat Wrap ST for corrosion protection and then followed with Polyken tape for mechanical protection. Visco-Elastic tapes aren’t new to the market, but it’s within the past few years that their popularity and use have started to rise.

Typical field-applied tape coatings require a number of meticulous steps, time and patience for successful applica-tion. The first step is cleaning the pipe to meet the manu-facturer’s requirements. This usually means a wire brush, a power wire brush or abrasive blast cleaning. Applying a primer is the next step. Tape application can begin after the primer has sufficiently dried. When tape is spirally wrapped

around pipe, uniform tension must be held on the tape roll and each successive wrap must overlap the previous wrap, meeting the project specifications relative to the number of tape layers. If a wrinkle is created, the tape should be pulled off the pipe and repositioned, ensuring that the tape back-ing is smooth. The tape should adhere to the pipe and itself, creating an airtight and watertight bond. If wrinkles aren’t removed, they can and will create a path for water to find its way to the pipe surface.

Visco-Elastic tapes are atypical. They require minimal pipe surface preparation. A wire brush cleaning is usu-ally sufficient, therefore no specialized tools or equip-ment are required. The adhesive is mastic-like. It’s very soft, tacky and aggressive, negating the need for a primer. It easily fills the irregularities of the pipe surface substrate. When applied, the tape requires minimal overlap and tension on the tape roll. Contractors and inspectors can be trained in proper application in a relatively short time period as was the case with this project.


Tape it UpProper Installation of a Pipe Wrap and TapeBy Jim Tolly


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Some Visco-Elastic tape manufacturers make these claims:• If a wrinkle is created when applied, it needs to only

be pressed down or smoothed out, avoiding possible water migration to the pipe surface.

• Visco-Elastic tapes are self-healing to a degree. If the tape incurs a relatively small damaged area, the adhesive will cold flow to cover it.

• If the tape fails due to sheer or soil stress, the adhesive will pull apart but some adhesive will remain on the pipe surface, providing corrosion protection.

• Visco-Elastic tapes will remain flexible for decades. They won’t crack or become brittle over time.

The following procedure took place on the girth welds and fittings that required coating. A clean, solvent-soaked rag was used to wipe down the area. The bare steel was abra-sive blasted to a near white metal degree of cleanliness. The plant-applied coating was lightly sanded where it would be overlapped. Viscotaq Coat Wrap ST tape was meticulously wrapped around the pipe. Polyken tape was applied over the Viscotaq tape. The tape coating was visually inspected and holiday tested. No repairs were necessary.

Established in 1956, Farwest Corrosion Control Co. is a world-class leader in cathodic protection products and equipment, plus cathodic protection engineering services and installation services. The company is known for pro-tection of submerged metallic structures such as pipelines, storage tanks, offshore structures and marine vessels, but the Farwest serves a wide range of industries such as oil and gas, the building industry, water distribution, wastewater, power generation, communications and agriculture.

Jim Tolly is a corrosion control coatings specialist for Farwest Corrosion Control Co.

The above images show the proper installation of a field-applied pipe wrap and tape. Farwest Corrosion Control Coatings conducted the pipe repair during a relocation project in California in summer 2011.

As North America awaits the spring, the northern territories will just have to suffer through the cold. But that doesn’t mean the pipelines have to freeze.

One company has developed a solution to protect pipe from freezing temperatures and rapid thawing environments. Salt Lake City-based Powerblanket has just released a pipe wrap product that fits nearly any size pipe and features the company’s patented GreenHeat Technology, which provides an environ-mentally friendly heating solution in oilfield and other industrial applications. These lightweight wraps can be used to heat pipes, manifolds, pumps, hoses and other temperature-sensitive equipment.

The Powerblanket Pipe Wraps are also suitable for use in water treatment plants, paper mills, mining op-erations and other sectors.

Powerblanket’s “all-in-one” product design substan-tially reduces installation time, eliminates the need for multiple product procurement and significantly re-duces labor costs. The end result is an efficient, cost-effective heating solution with unlimited possibilities. Installing Pipe Wraps on long sections of pipe will maintain flowability and maximize production even in harsh winter conditions.

The new Pipe Wraps can be provided in sizes rang-ing from 1- to 78-in. diameters to accommodate a va-riety of pipe sizes. The wraps are equipped with ad-justable straps that ensure a secure fit to maximize

heating performance. Powerblanket wraps feature GreenHeat Technology, a heat spreading system that uses aerospace heating designs to deliver a highly ef-ficient and uniform distribution of heat while only con-suming low levels of energy.

Powerblanket Pipe Wraps consist of heat trace, heat-spreading carbon fiber material, an insulation barrier and an outer vinyl shell — all-in-one package — allowing for fast and simple installation. By contrast, traditional heating processes involve labor-intensive installation of similar separately procured compo-nents, configurations that force heat into long sections of tents or glycol — each of which are time-consum-ing, expensive and have potentially destructive envi-ronmental impacts.

Certified to all applicable UL and CSA safety stan-dards, Pipe Wraps are powered by regular 120V electricity and are safe to use on metal or plastic pipes and hoses. The wraps are also UV-stabilized and are wind and water resistant, allowing flow within piping to continue even in temperatures as low as minus-58 F.

Powerblanket provides heating solutions for a multitude of applications, including ground thawing, concrete curing, industrial and manufacturing tem-perature control and oilfield services, to name a few. Visit the company online for more information online at www.powerblanket.com.


Heated Pipe Wraps Provide Freeze Protection and Rapid Thawing

Wouldn’t it be great if pipelines were built and operated right outside the office window so that any time we

had a question we could just grab our coffee cup, call up everyone with questions and head out the door? One of the ways this is now being done is through the use of geospatial 360-degree video technology. Only instead of going out the door, companies are heading up the hallway to the confer-ence room or anywhere with a computer screen.

Through the development of technologies such as Google Earth and Street View, digital still photography is now ubiq-uitous and the pipeline designers, builders and owners of today are coming to expect ready access to new forms of visual data to support their construction and operational needs. After all, in their everyday life they read the news online, look up information on Google or use other forms of electronic information. They’re used to seeing video, computer generated graphics and other forms of imagery to clarify and expand upon the location or event.

An increasing number of consulting, design and pipeline operating firms are finding reasons to incorporate geospa-tial video capability into their daily workflows, and compa-nies such as Immersive Video Solutions LLC (IVS) are pro-viding the content. One of the cameras that IVS uses is the Dodeca 2360 camera in the collection of 360-degree aerial and ground based imagery of proposed, under construc-tion and existing pipeline corridors around the world. The system records high resolution, 360-degree spherical video

allowing the end-user to look around with a mouse, so vir-tually nothing is missed as they move along a route, around a facility or other areas of interest.

There are a few types of spherical cameras on the market with basic differences being the number of lenses, record-ing rate, picture resolution and end-user software. The Do-deca system is built on the principle that the most efficient way to divide a sphere equally is into 12 pentagons (think of a soccer ball). The camera uses 11 of these segments as lenses with the 12th spot as the mounting post and external microphone location. This ensures that 95 percent of the sphere is captured in each frame of video.

GPS coordinates are collected for each frame of video and that data is used to show the location of the camera in vari-ous mapping software. Collecting imagery at 30 frames per second, the camera takes a spherical picture every 2.4 ft at 50 mph.

Software such as ESRI’s ArcMap and IVS’s GIV 2.0 allow users to integrate necessary GIS mapping tools and data with the imagery so that project staff can see not only where they are over a photo or topographical layer (and look around), but add layers of information such as envi-ronmental data, mileposts, valve and facility station infor-mation, proposed sites and other useful planning informa-tion to the map pane.

Integration of content such as names, lists, narration and other information into the spherical picture is also


Site-seeing by VideoImmersive Video Solutions Uses

Aerial Cameras to Capture Pipeline DataBy Kenn Kadow

possible and often done in order to add to the informa-tion displayed on the map pane for the Web and public stakeholder efforts. Software includes mapping features with options that allow the user to point at a location in the video, export a digital photo with GPS coordinates and then download data on a stream crossing, proposed facility site, access road, pipe valve or other feature bringing all the relevant information to one place. This gives the informa-tion context by placing it in the spherical picture, which al-lows users to look around at the entire area, not just a single picture. Narration can be added to the video by recording cockpit and external audio or by inserting a voiceover dur-ing post production.

The costs and logistical challenges associated with send-ing people to a location are considerable and not everyone who would benefit from a visit is going to be able to go out on site. Scheduling a helicopter airlift to hold the proj-ect team that could benefit from a review of the corridor is unrealistic. Even if you could get them all together on the same day, it may be rainy and foggy. All of us can remember at least once when getting someone out in the field to eval-uate a situation or gather information was really important.

The use of 360-degree GIS-linked spherical video is quickly becoming the best way to ensure that everyone is working from a common understanding of the area and issues. Measurable cost savings are realized when users of the geo-referenced 360-degree video imagery hand a copy of perhaps 2, 20 or 200 miles of proposed routing to new team members rather than sending them out on a week-long road trip. Helicopters are expensive and can only hold a few people; a single flight with a spherical geo-referenced


With 11 lens segments, cameras are able to collect imagery and the corresponding GPS coordinates at 30 frames per second,

taking a spherical picture every 2.4 ft at 50 mph.

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camera can provide the trip information to all those who would benefit from seeing the corridor.

The potential Alaska Gas Line project runs approximate-ly 1,700 miles from Alaska’s North Slope over the Brooks Range, across the Yukon and several other rivers, along exist-ing right of way, crossing numerous land ownership lines,

the U.S.-Canada border and eventually into Alberta. In ad-dition to the primary route, there are numerous alternative route sections, facility sites and off-take locations to be evalu-ated. Virtually the entire route is in unpopulated, remote and challenging areas. People are working on the project from a variety of organizations and in numerous places around North America. However, by using geo-referenced spheri-cal video, the entire pipeline route can be displayed in their conference rooms and desktop screens. By using the video, they’re all able to fly to a certain location as identified by the GPS and look at the subject of the meeting.

Meetings with regulatory agencies, local communities and other stakeholders often involve the discussions of par-ticular areas or issues. Being able to say in a presentation, “That’s a good point, let’s fly up the route a bit and look it over,” means users have the best available technology to work toward a decision, not adding an action item for the next field trip. Spherical video is a very engaging speaker’s tool, as it demonstrates that the user has a good under-standing of the issues and surrounding area.

Placement of immersive video on project or client web-sites is shown to be a useful way for companies to com-municate with large audiences such as when sharing proj-ect news with the general public. Research has shown that when users have the ability to look around, they spend more time at the website, thereby allowing for more

narration about what’s being seen in the video. You can direct the viewer through narration, but you’re still giving them the option to look around.

Other advantages of immersive video imagery include the pre-deployment support of field and survey crews. No longer are teams going to come back from two weeks in the woods and the first thing they say is, “Well, that would have been nice to know.” Teams can be briefed on the loca-tion of staging areas and worksites, general ground condi-tions and other travel restrictions. The maps and old photos said it was a creek; the video showed it’s a 250-ft wide sea-sonal flood plain. That kind of information matters to field teams packing equipment.

Emergency responders are seldom very familiar with the area where they’re mobilizing to. This increases the risks and can limit the effectiveness of their efforts. Through the use of spherical video, response managers and field responders all have a similar understanding of what the emergency means in terms of access, approach and tactics. Safety briefings are only as good as the infor-


Software allows users to integrate necessary GIS mapping tools and data with the collected imagery so that project staff can see not only where they are over an image, but add layers of information such as environmental data, mileposts, valve and facility station infor-

mation, proposed sites and other useful information to the map pane.


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mation they have at the time and being able to fully look around, at and over the area before a team deploys means they can respond with the correct equipment, manpower and tactics. Logistics staff can navigate to a section of the video, look around and make more accurate decisions about what equipment to send out (20 ft of containment boom and an anchor won’t cover that 250-ft flood plain). Planning staff are able to see locations and make better decisions about additional resources and future tactics. Response managers can take audiences to the scene and instill an understanding of the events by saying, “Here’s the section of pipeline we’re responding to, and this is what we’re doing about it.” Immersive geo-referenced video is often used as a training aid for equipment de-ployment and positioning as well as in support of “spill contingency plans” to catalog pre-identified contain-ment, staging and other important sites.

As the developments around 360-degree video and its interface with GIS data continue to grow, more and more applications are being identified in support of the pipeline industry. With the ability to see 360 degrees and look all around, a single pass along a route, through a facility site, shoreline or other area with a spherical video supports many of the necessary functions and steps in the building and operating of pipelines.

There will always be a need for the traditional forms of imagery such as high altitude ortho-photography and Lidar. The information provided by those forms of imagery is im-portant to the overall efforts. However, sometimes what we really need is just to get the sense of the area, to be able to look around as if we’re onsite. That may be in a helicopter, in

a truck along the right of way or a backpack, but if we were looking at it, we could make a lot of decisions about it.

Kenn Kadow is principal at Immersive Video Solutions and has 25 years of experience in crisis planning and response for marine, pipeline and exploration activities. He’s one of many who has often stood at a site and thought how nice it would be to have a few more pictures and a little bit more information before deciding what to do.

By attaching a 360-degree camera to a helicopter, a pipeline route or facility can be mapped and stored digitally for project

owners to optimize planning.

It’s not a pipe dream– Watch for 12 issues of North American Oil & Gas Pipelines this year!

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Cat PL83 and PL87 Pipelayers Cat pipelayers have long set the standard for performance, safety, re-

liability, operator comfort and global dealer support. Those standards now have been elevated by the new PL83 and PL87. These new models, while retaining the solid basic design of their predecessors, answer cus-tomer needs for increased lift capacity, enhanced slope capability, ease of operation, performance and transportability. The PL83, replacing the 583T, has a rated lifting capacity of 160,000 lbs — a 14 percent increase over the previous model. The PL87, replacing both the 587T and 587R, has a rated lifting capacity of 214,000 lbs for a 6 percent boost in lifting capacity. Both new models use the Cat C15 ACERT engine, with a net horsepower rating of 310 hp in the PL83 and 366 hp in the PL87. These machines retain the field-proven Cat drive train, including a rugged 3F/3R powershift transmission, high-efficiency torque divider, elevated final drives and the exclusive Cat differential steering system. The in-creased lifting capacity for the PL83 and PL87 results from undercarriage and counterweight changes. The track roller frame on both machines has been lengthened and the rear idler repositioned, yielding higher lift capacity and enhanced stability when the machines work on slopes. In addition, counterweight packages have been reconfigured to improve weight distribution for increased lifting capacity and to provide a re-duced profile for even better forward and right-side visibility. Counterweight segments (13 for the PL83 and 15 for the PL87) are splined to counterweight assembly for positive retention and ease of removal. A new low-profile, heavy-duty Pullmaster winch in the hook drawworks simplifies transport and aids visibility. Improved hydraulics offer greater response and more precise control for greater machine productivity. Boom and hook drawworks use independent winches with oil-disc brakes that ensure smooth operation and secure retention of position. Boom choices for the PL83 and PL87 include 24- and 28-ft versions, each fabricated with high-tensile strength steel for durability to handle added payload. A new block-set design enhances sightlines to the pipe, and a new bolt-on block horn on the frame of the tractor’s radiator guard secures the block for transport. The PL83 and PL87 feature well-appointed operator stations with a redesigned joystick that places all boom, hook and counterweight functions in a single right-hand control lever. Two push buttons at the top of the joystick allow adjusting engine speed up or down in small increments for precise control. Both machines are available with either an open-ROPS or enclosed cab.

Midwestern Mfg. Co. Hydraulic Sidebooms Midwestern designs and builds a complete line of safe, efficient hydraulic winch-operated sideboom attachments mounted on mainline

and distribution-sized crawler tractors; articulated loaders and backhoe loaders for Cat, Deere, Komatsu and other model tractor bodies with 10,000 to 230,000 lbs lifting capacity. The company builds hydraulic conversions for mechanical pipelayers, and it builds and markets a wide range of pipeline construction products, including trailer and skid-mounted hydrostatic testing units and tail-end winches. Based in Tulsa, Okla., Midwestern Mfg. Co. is an internationally known pioneer in pipelaying equipment. Midwestern began in the 1950s designing, engineering and manufacturing small sideboom attachments to convert oilfield tractors into side lifting machines known as “baby boom-

ers.” Over the years, Midwestern sidebooms increased in size and diversity of the tractor models and brands that it could convert into pipelayers. Today the company offers more than 140 models of rubber tired and track machines. Lifting capacities range from 10,000 to 230,000 lbs. Its custom-designed side-booms attach to Caterpillar, Deere, Komatsu and other manufacturers’ models of equipment. From its modern factory facility, Midwestern ships annually half of its products to international customers. Midwestern is known worldwide for its reliable, high quality designed sidebooms and has produced more than 7,125 sidebooms since its inception. Midwestern sidebooms fill a niche in pipeline construction equipment by enabling the conversion of a used tractor into a pipelayer at a substantially lower cost than a new pipelayer, while still achieving the safety of 100 percent hydraulic control. There continues to be a worldwide imbalance in the supply and demand of hydrocarbon raw materi-als. To meet this market demand, Midwestern has increased its production by more than 500 percent. Most of its sidebooms are attached to used tractors since pipelayers are not subjected to as high operating stress on the jobsite

as right-of-way and back fill dozers. For example, a pipeline construction contractor can elect to replace its older right-of-way dozer fleet with new dozers and convert its existing dozer fleet into urgently needed pipelayers by attaching a new hydraulic Midwestern sideboom. This is an important option, as it reduces capital outlay and extends useful life of existing assets.


Superior Mfg. SPX-Series PipelayersThe Superior SPX-460, SPX-660 and SPX-960 rate among the industry’s top pipelayers in terms of size and lifting capacity. These ma-

chines are remarkably easy (and safe) to operate, and the simplicity of the design will ensure a long life. Some of the main features are: a state-of-the-art hydrostatic system, which ensures safety and reliability and is especially efficient when working on steep grades; a new design that makes the counterweight sys-tem easy to assemble and disassemble; hydraulic winches proven after more than 15 years of use in Superior’s conversion kits, which have converted many mechani-cal Cat, Fiat and Komatsu pipelayers to hydraulic; and new ATP-Plus anti-tipping system with in-cab display by which the operator can read from his gauges the degree of boom overhang and the actual weight being lifted. With only two joysticks, the operator can control both winches, in-crease/decrease the engine’s throttle and control the machine’s travel. There are two extra pilot levers for the transmission, which can assist the operator in making precise maneuvers, such as turning in a steep hill or making pinpoint movements to couple the pipes. The LCD display shows relevant information in a pleasing, easy-to-read graphical interface. Superior Mfg. was founded in the mid-1990s and specializes in the manufacturing of pipe-line specialty equipment and accessories. Superior has two main facilities: one in Parma, Italy, where most of its equipment is manufactured, and one in Houston, where much of the assembly and maintenance, as well as manufacturing of certain equipment, takes place. This equipment is marketed through the Worldwide Machinery Pipeline Division, which also offers on-site service and support around the world.

Volvo PL3005D Pipelayer The patented design of the Volvo PL3005D pipelayer represents a major technological advancement when compared to tradi-

tional sideboom dozer based pipelayers. With its excavator-based configuration, the machine offers a 360-degree swing with full lifting performance and smooth, precise and efficient load positioning and functionality at all radius positions — a highly productive solution unattainable with conventional sideboom pipelayers. These pipelayers also feature a mechanical, upper-structure swing lock when working on severe grades. A high-pull planetary winch ensures precise control and smooth lifting. An anti-two-block

device automatically prevents the hook and load block from making harsh contact. The Volvo PL3005D is fitted with a modern onboard load management system (LMS) that uses wireless communication to inform the operator what can be safely lifted, the position of the upper frame relative to the slope, and the incline on which the ma-chine is operating. Load charts are updated constantly for 360-degree rotation and infinite machine positions up to a 35-degree grade slope. The operating weight of the Volvo PL3005 is 78,350 lbs. Maximum tipping capacity is 112,000 lbs. Maximum rated capacity is 68,340 lbs. When not being used for pipelaying, the Volvo PL3005D can be converted into a high-production excavator for standard excavation by swapping the boom in a short period of time. The Volvo Care Cab fitted to the new Volvo PL3005D improves visibility around the jobsite, inside the trench and to the load management instrumentation. Side- and rear-mounted video cameras take jobsite visibility to a new level of safe performance and execution. Ergonomi-cally positioned controls are easy to access and can help

reduce operator fatigue and improve productivity. The state-of-the-art Volvo CareTrack telematics system is now standard. Care-Track manages a machine’s productivity and maximizes its availability for work by reading a wide range of machine data, such as location, fuel consumption and service reminders.


North American Oil & Gas Pipelines Calendar

January

18-19Pipe Tech Americas SummitSugar Land Marriott Town SquareHoustonWeb: www.pipetechamericas.com/program

23-17API Exploration & Production Winter Standards MeetingAmerican Petroleum InstituteRenaissance Worthington HotelFort Worth, TexasWeb: www.api.org

24-26API/AGA Oil and Gas Pipeline Welding Practices MeetingAmerican Petroleum Institute/American Gas AssociationRenaissance Worthington HotelFort Worth, TexasWeb: www.api.org

24-26 Underground Construction Technology (UCT) International Conference & ExhibitionHenry B. Gonzalez Convention CenterSan AntonioWeb: www.uctonline.com

February

3-8DCA Annual ConventionFairmont OrchidKohala Coast, HawaiiWeb: www.dca-online.org

6-9 International Pipeline Pigging & Integrity Management Conference(Plus Training Courses and Exhibition)Marriott Westchase HotelHouston Web: www.clarion.org/ppim/ppim12/main.php

21-25PLCA Annual ConventionPark Hyatt Aviara Carlsbad, Calif.Web: www.plca.org

29-March 4APCA Annual ConventionThe CloisterSea Island, Ga. Web: www.americanpipeline.org

March

6-8API Conference & ExpoMarina Bay Sands HotelSingaporeWeb: www.apiexpo.org

6-8CGA Excavation Safety Conference and ExpoRio HotelLas VegasWeb: www.cgaconference.com

9-14PCCA Annual ConventionHyatt Regency Hill Country Resort & SpaSan AntonioWeb: www.pccaweb.org

11-15NASTT’s 2012 No-Dig ShowNorth American Society for Trenchless Technology (NASTT)Gaylord Opryland Hotel & Convention CenterNashville, Tenn.Web: www.nodigshow.com

12-16NUCA Annual ConventionRenaissance Worthington HotelFort Worth, Texas Web: www.nuca.com

13-17AGC of American Annual ConventionHilton Hawaii Village Beach Resort & SpaHonoluluWeb: www.agc.org

Submit events to [email protected] with “Events Calendar” in the subject.

The Events Pipeline Conferences, Meetings & Trade Shows

Advertiser Website Page #

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

Benjamin Media Online Buyer’s Guide .........www.napipelines.com/buyers-guide.............37

Benjamin Media Resource Center ................www.benjaminmedia.com/book-store ....33, 39

Denis Cimaf Inc ......................................... www.deniscimaf.com.................................27

E-Z Line Support Company Inc ................. www.ezline.com .........................................35

Fecon Inc. .................................................. www.fecon.com .........................................13

Girard Industries ........................................ www.GirardIndustries.com ........................19

Horizontal Technology Inc. ........................ www.horizontaltech.com .............................5

IPLOCA ...................................................... www.iploca.com ........................................45

JB Transport .............................................. www.JBHeavyHaul.com ............................31

Laney Directional Drilling........................... www.laneydrilling.com ...............................39

Mattracks ................................................... www.mattracks.com ..................................25

Advertiser Website Page #

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

Michels Corporation .................................. www.michels.us .........................................29

NACE ......................................................... www.nacecorrosion.org ...............................7

NASTT’s 2012 No-Dig ............................... www.nodigshow.com ...................................3

Pipeline Inspection Co. ............................. www.picltd.com .........................................11

PPIM .......................................................... www.clarion.org .........................................47

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

StraightLine HDD ...................................... www.straightlinehdd.com ..........................23

Superior Tire & Rubber Corp..................... www.tracj-pads.com ....................................9

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

United Association .................................... www.ua.org ................................................41

Wounded Warrior Project .......................... www.woundedwarriorproject.org ...............15

Advertisers Index


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I’ve had a number of discussions over the course of 2011 related to determining the accuracy of pipeline position. The basic question of “How accurate is my pipe centerline?” persists. My background is deep root-ed in navigation and positioning, and all the survey systems and methods that wrap around the technology to provide accurate position information for a feature, structure or events. In this article, I’ll provide perspec-tive on the pipeline positioning spectrum: the technol-ogies, methods and value to the ultimate goal of safe and reliable delivery of hydrocarbon energy through pipeline integrity management (PIM), as well as the processes for assessing and mitigating pipeline risks in order to reduce both the likelihood and consequences of incidents. As industry professionals, we understand PIM as a systematic, comprehensive process designed to provide information to effectively allocate resources for appropriate prevention, detection and mitigation activities. Simply stated, this involves extensive spatial (where), geometric (what), condition (when), repair (how) and hopefully not the “who” when an incident takes place. Any valid baseline includes accurate posi-tion of the pipeline.

Let’s first define accuracy as the sum of precision + reli-ability; repeatable and correct to some standard. Absolute accuracy is with respect to a regional or global datum, such as the North American Datum (NAD83). This is the survey standard reference, which closely approximates the World Geodetic System (WGS84) to which the GPS system is related. This is what our latitude, longitude and elevation, or State Plane Coordinates, are based on. Relative accuracy, however, is based on a local reference: a mile post, girth weld, road crossing or any feature to which we can pull a survey tape from to locate a defect or area of interest. Relative accuracy will be discussed later when I review inline inspection mapping methods. Now you’re ready to challenge your staff or contract surveyors with this practical knowledge.

With the evolution and innovation of GPS technol-ogy, we tend to teeter between consumer and commer-cial systems, i.e., which combination of cellular phones or ruggedized GPS units will best serve and survive field conditions, make economic sense and will be adopted (and standardized) by demanding user groups across the organization. There are many grades of GPS receiv-ers and modes of operation, including GPS-enabled cell phones. To improve accuracy, there are differential sur-vey methods and real-time correction services, integrated pipe locating technology and inline inspection mapping systems. This provides opportunity for accuracy and consistency across the pipeline asset base to continu-ously collect field data, tag it with coordinates and im-prove the accuracy and resolution of the pipeline and features. The point is to include some metadata about

the methods used in collection of the data — process, accuracy, etc. — to enable conflict resolution at some future date when the question arises: Which data is correct or more accurate?

As most of us have experience with legacy systems (i.e. not recent or new pipeline construction), a primary challenge is relating aboveground position and condi-tion data to the buried pipeline that typically is linearly referenced (stationing, odometer). I’ll spend the balance of my word space discussing inline inspection mapping systems (ILI-MS), which offer a means to accurately cor-relate underground features to where the backhoe needs to dig, where a root cause analysis becomes more cer-tain and where engineering design includes monitoring. The essential electromechanical elements of an ILI-MS are gyro-accelerometer cluster for measuring orienta-tion and movement changes, a synchronized clock and odometers. To cut the story short, complex post-process-ing is employed to compute high resolution position and curvature for the pipeline using cluster, odometer and aboveground marker (AGM) and feature (valves, etc.) position data. The PIM engineer needs to understand the benefits and limitations of this technology in the operations and technology dimensions.

Operationally, there is no better means to integrate position with ILI condition assessments when the tool is run in tandem. ILI vendors are providing reliable and cost effective combination tools (MFL, UT, caliper), thus reducing the operator to the risk and expense of multiple tool runs. Technically, ILI-MS is a relative survey tool. Its accuracy is pegged to the last known position on the pipeline. For example, many vendors quote 1:2,000 posi-tional accuracy. This equates to an error of 1 ft for every 2,000 ft from the closest known point such as an AGM or valve, which have accurate GPS positions. It’s important to note that there are many factors that affect the ILI-MS accuracy: cluster grade (tactical or navigation), AGM spacing and tool detection, tool velocity profile, degree of horizontal bends and odometer reliability. These all contribute to the final outcome.

We have the opportunity to improve pipeline position accuracy on a continual basis. How much accuracy do we really need — a foot, meter, half the right-of-way width? The answers lie in resolving congested space conflicts, matching and aligning data, enabling root cause analy-sis with precise 3D pipeline geometries and increasing the overall confidence in the PIM system. Cost-benefit should consider all internal stakeholders, and whichever means are used, be sure to include the metadata describ-ing how it was derived.

Todd Porter is vice president at New Century Software Inc. and is a member of the North American Oil & Gas Pipelines Editorial Advisory Board.

Pipeline Perspectives

Baseline Integrity Management By Todd Porter

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Welcome | North American Oil & Gas Pipelines · Taming the Tiger Michels Pipeline Construction uses McLaughlin cradle bore machines to speed up a pipeline project. By Curt Grandia