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PIPE LINE CONTRACTORS ASSOCIATION OF CANADA “Building Canada’s Pipeline Infrastructure for Over 60 Years”

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Page 1: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

EXECUTIVE OFFICE Suite 201

1075 North Service Road WestOakville ON L6M 2G2

Tel: 905-847-9383 Fax: 905-847-7824

Email: [email protected]: www.pipeline.ca

Neil G. Lane, Executive Director

PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

“Building Canada’s Pipeline Infrastructure for Over 60 Years”

Page 2: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

EXECUTIVE OFFICE Suite 201

1075 North Service Road WestOakville ON L6M 2G2

Tel: 905-847-9383 Fax: 905-847-7824

Email: [email protected]: www.pipeline.ca

Neil G. Lane, Executive Director

Page 3: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

Who We Are .......................................................................................... 1

About PLCAC .......................................................................................... 2

Our Members ........................................................................................ 3

Our Pipeline Milestones ........................................................................ 5

Our Pipeline Careers .............................................................................. 7

Our Labour Partners .............................................................................. 8

Canadian Pipeline Advisory Council ...................................................... 9

Key Facts: North American Pipelines ................................................... 11

Key Facts: Canada’s Pipelines .............................................................. 12

Key Facts: Building a Pipeline .............................................................. 13

Key Facts: Pipelining Under Waterways .............................................. 14

Alberta’s Athabasca River Challenges HDD Crews ............................... 15

Environmental Conservation: Every Day on the Right of Way! ............ 17

Fact vs. Myth: The Canadian Pipeline Industry .................................... 18

Contents

Page 4: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

Who We Are

Emerging out of the original Trans Mountain Pipeline project of the mid 1950s, for more than six decades the Pipe Line Contractors Association of Canada (PLCAC) has provided continuous industry leadership and a forum for Canada’s unionized contractors in matters of labour relations, safety, training and quality.

Canada’s Authorized Employer Organization (AEO)

for unionized contractors, operating on behalf of

41 regular members for harmonious, effective labour

relations, provincially and across Canada.

A key partner in serving members who have built and

maintain most of Canada’s National Energy Board

(NEB) — regulated transmission pipeline network.

A key point-of-contact for stakeholders to engage on questions and concerns about the

Canadian industry’s enduring commitment to sensible

solutions for quality, reliability and integrity of Canada’s

extensive Transmission and Distribution networks.

Canada’s single-window industry association for 94

associate members, who lead the world as innovators and solution-providers of supply and services for safe, reliable

and well-maintained pipelines.

The management partner with four international pipeline trade unions in one of Canada’s most innovative and responsive

joint-union management structures, the Canadian

Pipeline Advisory Council.

1.

PLCAC is... LEADERSHIP

MEMBER RELATIONS INNOVATION

PARTNERSHIPS INDUSTRY ENGAGEMENT

Page 5: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

About PLCAC

Established in 1954, with national executive offices maintained (at various times in Edmonton, British Columbia and Ontario) over six decades.

Co-ordinates, negotiates and administers more than a dozen Collective Bargaining Agreements (CBAs) for the construction, maintenance and service of Canada’s Mainline (transmission) and Distribution pipeline systems through a National Labour Relations Committee structure, and through a partnership-based philosophy with four international building trade unions.

Since 1969, ongoing Labour Relations innovation and leadership in the Canadian construction industry, through a joint union-management Canadian Pipeline Advisory Council (CPAC), which has established and maintains an Alternative/Appropriate Dispute Resolution (ADR) mechanism called the Pipeline Industry Grievance Panel (PIGP).

Provides employer-union check off dues that fund initiatives for independent industry training facilities for pipeline-specific craft and trade skills in Canada.

Assures the security of skilled labour and services for strategic pipeline construction and renewal projects through co-operative approaches to pre-project engagement, planning and coordination.

Canada’s voice with global peer-organizations, including the World Federation of Pipeline Industry Association (WFPIA) and the International Pipe Line & Offshore Contractors Association (IPLOCA).

A founding sustaining corporate member to the Canadian Standards Association (CSA) Z662 standard, with a standing Pipeline Standards Committee of the Board.

Co-founder and leader of Canada’s, mandatory Pipeline Construction Safety Training (PCST) program which is maintained and offered by PLCAC’s partner, BuildForce Canada.

A leader in pipeline safety through a standing Safety Committee of the Board which maintains and oversees a suite of workplace safety education materials and videos.

An investor in tomorrow’s Canadian leaders through a broad-based post-secondary Student Awards Program that has distributed over $500,000 to more than 200 students over 40 years.

A leader in social responsibility, investing in local initiatives including donations of more than $580,000 to the victims of the historic Fort McMurray fire, $10,000 to the Royal Canadian Legion and $10,000 to the YWCA in Banff.

2.

Page 6: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

Regular Contractor Members Any contractor who is an employer of employees, whether an individual corporation, company, partnership or enterprise engaged in contracting for the construction, installation, treating, reconditioning or maintenance of pipelines for the purpose of transporting liquids, vapors, slurries or solids, or any phase thereof shall qualify for consideration as a regular member.

The PLCAC is proud of its 41 contractor members whose drive for continuous improvement provides the most responsible and safe pipeline construction process and the 94 supplier members who deliver the highest technological advanced products to help make it all happen.

Our Members

3.

Page 7: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

Our Members

Associate Supplier Members Any supplier who is an individual, firm or corporation engaged in the business of manufacturing, selling, renting or transporting of materials, supplies, equipment, insurance or bonds for the construction or maintenance of pipelines shall qualify for consideration as an associate member.

4.

Page 8: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

May 1980 Hon. Marc Lalonde

delivers “Canada’s Energy Efficiency” keynote at

PLCAC Convention ushering in the National Energy

Program (NEP) era

April 1954Pipe Line Contractors Association Founded in

Edmonton AB at the Macdonald Hotel

January 1969Formation of

Canadian Pipeline Advisory Council

April 1978Parliament creates Northern Pipeline

Agency, the federal regulator

of the Alaska Highway Gas

Pipeline in Canada

July 1983Pipeline Agreements

for Canada split into Mainline

and Distribution Agreements

November 1959Parliament

creates National Energy Board

January 1966Health benefits introduced into

UA Pipeline Agreement for

Canada

September 1962

Alberta Oil and Gas Conservation Board

approves Great Canadian Oil Sands

project

June 1970Alberta Gas Trunk Line

announces plans for Mackenzie Valley gas pipeline

Alberta Gas Trunk Line was later renamed Nova, an Alberta Corporation and merged with

TransCanada in 1998

September 1974Foothills Pipe Lines Ltd. founded to construct Canadian portion of Alaska Natural Gas

System

Foothills Pipe Lines Ltd. is now a subsidiary of

TransCanada

October 1980

September 1984PLCAC office moves from Vancouver BC to Mississauga ON

May 1981PLCAC members

experience the one and only legal labour strike in

their 6 decade history

1977Alyeska Pipeline completes

construction of its Trans Alaska Pipeline System

January 1974Cal Callahan

Memorial Bursaryestablished to

financially assist students with

post-secondary studies

1957TransCanada PipeLine begins construction on a natural gas pipeline

across Canada

June 1956Construction

of TransCanada PipeLine is granted

by Canadian Parliament

February 1961BC government approves

an application by Westcoast Transmission for a $30 million pipeline through the British

Columbia interior

1981Foothills Pipe Lines Ltd.

begins transporting natural gas from central Alberta to

the US border

February 1955

First Annual Convention is held at Empress Hotel

in Victoria BC

November 1954Pembina Pipeline system is

constructed to transport crude oil from the Pembina field near

Drayton Valley AB to Edmonton AB

Under the direction of Prime Minister P. Trudeau, the federal government introduces the National Energy Program (NEP)

April 1969First PLCAC Newsletter

is published

April 1968PLCAC is incorporated

as a federal corporation

February 1958

First pipeline construction

safety manual is created

April 1978Highest attendance ever recorded (571) at PLCAC convention held at the Bayshore

Inn, Vancouver BC

April 1978Highest attendance ever recorded (571) at PLCAC convention held at the Bayshore

Inn, Vancouver BC

April 1978Highest attendance ever recorded (571) at PLCAC convention held at the Bayshore

Inn, Vancouver BC

April 1978Highest attendance ever recorded (571) at PLCAC convention held at the Bayshore

Inn, Vancouver BC

19541960

19651970

19751980

1985

Our Pipeline Milestones

5.

Page 9: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

Our Pipeline Milestones

May 2001Northern Pipeline

Projects Inc. is created to engage local residents

with future pipeline projects in Northern

Canada

September 1990

The only ‘wildcat’ strike of

significance by the UA

shuts down all mainline

projects across Canada

May 1999Construction begins on the Maritimes &

Northeast gas pipeline

June 1999PLCAC’s “Professional

Leadership Development

Program” is introduced

February 1993

Safety video “Being Your Best” first edition

is released

March 2007

Founded in 1954, the Pipe Line Contractors Association of Canada has been a continuous leader in helping ensure the safety and integrity of Canada’s pipeline infrastructure.

March 2011Mackenzie Valley pipeline is finally granted federal

cabinet approvalover 35 years after

being first proposed

February 2011TransCanada Pipelines Ltd. begins transporting crude oil on Keystone pipeline from Alberta

to Oklahoma

October 2013PLCAC expands the Student

Bursary Program to financially assist more post-secondary students of employees of

association members

June 2013

April 2014PLCAC turns 60!

PLCAC goes on-line at www. pipeline.ca

February 2001

January 1995Jack Cressey Future Leader

Award is established to recognise employees who

have not yet attained executive status and have

developed leadership qualities of significance to

their company

The mandatory Pipeline Construction Safety Training (PCST) is developed

by PLCAC and other stakeholders and administered by Buildforce Canada

July 1998PLCAC office moves from

Mississauga ON to Oakville ON

July 2008 Edmonton &February 2009 Toronto

PLCAC’s “Professional Leadership

Development Program”, coordinated by PLCAC,

runs in Western Canada and Eastern Canada

April 2010Wayne McArthur Memorial Award

established recognizing a student that demonstrates hard work, dedication and

leadership within the community

April 2010 Enbridge Alberta Clipper Pipeline

becomes operational

January 2009 Pipeline Workforce Attraction Project was established to bring information

regarding the four pipeline craft labour and skilled trade roles to

potential future pipeline workers

January 1996Newsletter is renamed “Canadian Pipeliner”, the voice of Canada’s pipeline supply and

service industry

The Safety Guide undergoes a complete overhaul keeping current with industry while continuing to be provided to every worker on every pipeline job

December 2013

1990-1991 Gas pipeline laid to Sunshine Coast

and Vancouver Island from mainland

May 2016 PLCAC responds to the historic Ft. McMurray fire and raises over $580,000 in funds and services for the victims.

PLCAC records busiest year on record with over 10.3

million person hours worked

May 2012PLCAC and the four pipeline craft unions

develop a memorandum of understanding to construct the Enbridge Northern

Gateway pipeline and pumping stations 240300

360

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120

180 420

480

540

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July 2016PLCAC and the 4

pipeline craft unions sign a memorandum

of understanding with TransCanada to construct the

Energy East Pipeline

November 2016

PLCAC and the 4 pipeline craft unions spend a ‘Day on the Hill’ outreaching to over 70 Members of Parliament and

Senators where P.M. J. Trudeau approvesthe Line 3 and TMX

pipelines

19901995

20002005

20102015

6.

Page 10: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

Our Pipeline Careers

Industry OverviewBuilding and maintaining all pipelines requires specialized construction processes. Career opportunities exist in transportation, logistics, equipment operating, welding, pipelaying and a range of construction craft labour occupations.

Transporting and Logistics Trucking and logistics personnel provide essential transportation and logistical services. Among other things, transportation and warehousing crews:

Move, unload and later reload and remove heavy equipment Move pipe to the pipeline construction area Safely transport and support hundreds of crew members daily Maintain inventory control and ship supplies from portable warehouses

Operating EquipmentHeavy equipment is the backbone of a pipeline construction project. Heavy equipment operators are required for excavators, graders, bulldozers and dozer-like pipelayer machines called sidebooms as well as a range of other specialized equipment. Among other things, equipment operators:

Prepare access roads and set aside top-soil at right-of-way areas Unload sections of large pipe from trailers Dig precise trenches where the finished pipeline will rest Backfill completed pipeline trenches and help in reclaiming the land to its natural state

Welding and PipelayingWelding and pipelaying sets the pace for the entire pipeline construction process. Many welders and journeyperson pipelayers are used in a highly-coordinated, focused assembly line process.Among other things, welders and journeyperson pipelayers:

Collaborate with labourers in bending pipes to align with the contour of the land Prepare pipe sections for traditional hand arc or automatic welding Coordinate the final set-up and clamping of pipe sections prior to welding Complete tie ins used to connect finished sections of pipe with other pipelines

Construction Craft LabourConstruction craft labour is the glue that binds different pipeline construction processes together through an extensive deployment of general and skilled labour. Among other things, labourers:

Clear the narrow tracts of land in forested areas where pipelines are built Construct fences to protect and separate land owners and livestock from construction crews Place pipe sections according to engineering/survey information Operate special cold bending machines and sand blasting equipment

7.

Page 11: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

Our Labour Partners

Our labour partners provide a reliable supply of competent, qualified and highly skilled workers. The value of their skills, productivity and ability to mobilize is a key strength for responsibly building and maintaining major pipelines across Canada.

The Pipe Line Contractors Association of Canada (PLCAC) partners with four building trades unions throughout Canada:

United Association of Plumbers and Pipefitters (UA Canada).

International Union of Operating Engineers (OE). Labourers International Union of North America (LiUNA). Teamsters Canada (Teamsters).

Collectively these unions represent over 350,000 Canadian skilled tradespersons and have over 135 local offices to mobilize qualified and highly skilled workers to major projects.

Investment in Training and Economic Development Invests over $80 million dollars on training programs in

Canada annually. Maintains over 93 local training facilities across Canada. Delivers safety, skills and journeyperson training meeting

provincial and trade standards. Provides 10 significant specialized pipeline training

programs coast to coast. National Pipeline Safety Construction Safety Training

(PSCT) standard established for all trades persons in pipeline industry.

Provides provincial safety training including: Basic Construction Safety; WHIMIS; Construction Safety; Working at Heights; Confined Spaces; First Aid and CPR; and Hoisting and Rigging.

Social and Economic Profile Engagement and skills development programs with

Indigenous Peoples in Canada. Mobility and Partnership Agreements across local,

provincial and national boundaries. Participation in Helmets to Hardhats which is an

organization dedicated to transition veterans of the Canadian Forces to new career opportunities in the skilled trades.

Build Together, a program that offers encouragement, mentorship and support to women in the unionized building trades.

8.

Page 12: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

Canadian Pipeline Advisory Council

Since 1969, the Canadian Pipeline Advisory Council has provided ongoing Labour Relations innovation, leadership and stability in the Canadian pipeline construction industry, through a joint union-management body made up of PLCAC directors and senior international union representatives from the four building trades unions, which:

Maintains harmonious relations through mutual respect, balanced governance and collaboration.

Establishes and maintains an expedited Alternative Dispute Resolution (ADR) mechanism called the Pipeline Industry Grievance Panel (PIGP).

Participates in employer-union check off dues that fund independent Training Trust Fund facilities for pipeline-specific craft and trade skills training in provinces throughout Canada.

Assures security of skilled labour and services for strategic pipeline construction and renewal projects through co-operative approaches to pre-project engagement, planning and coordination.

Reviews jurisdictional disputes as they arise and relate to the assignment of work; ensure steady work continuation without slow down and/or work stoppage.

Participates in industry promotion and outreach with stakeholders including client, government, public relations and Indigenous Peoples engagement.

Provides industry career pathway tools and toolkit for educators, labour and member firms.

Is funded through employer contributions based on the hours worked under the pipeline agreements across Canada.

9.

Page 13: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

CANADIAN PIPELINE ADVISORY COUNCILPartnering for Canadian Prosperity

Careers

Advocacy

Partnerships

Training

10.

Page 14: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

Key Facts:North American Pipelines

11.

Page 15: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

Key Facts: Canada’s Pipelines

$

3.5 M

PER DAY IN 2013

6.1 M

PER DAY BY 2040

32% 2015

2040

31%

1990 2014

KEY FACTS ON CANADA’S PIPELINESSafe and reliable pipeline systems are critical to ensuring that our natural resources reach their destined markets

and that our energy sector remains resilient and sustainable.

1 CANADA’S PIPELINE INFRASTRUCTURE

2 CANADA’S PIPELINES 3 OIL AND GAS – EMPLOYMENT AND GDP

4 OIL AND GAS – GOVERNMENT REVENUE

5 EXPORTS 6 OIL PRODUCTION

7 WORLD ENERGY DEMAND 8 GHG EMISSIONS

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2016

More than73,000 kmare regulated by the National Energy Board throughout Canada

* Source: Natural Resources Canada calculations, based on National Energy Board data.

Sources: NRCan’s Energy Markets Fact Book 2016-2017.

Source: 5 year average of Statistics Canada, CANSIM Table 180-0003 (tax), Statistics Canada special tabulation (royalties), Canadian Association of Petroleum Producers - Statistical Handbook, Table. (land sales)

Source: Statistics Canada CANSIM Table 126-0001, National Energy Board Web site: Natural Gas Imports, Exports and Liquefied Natural Gas Statistics

Source: National Energy Board, Canada’s Energy Future 2016: Energy Supply and Demand Projections to 2040.

Source: International Energy Agency: World Energy Outlook 2015. Source: Natural Resources Canada calculations, based on Environment Canada data.

1.3 billionbarrels moved per year

99.999

of OIL MOVED SAFELY

%and

of liquids released in the past 3 years by federally regulated pipelines were recovered*

100%

These pipelines carry over$100 billion

of natural gas, oil and

petroleum productseach year

Canada’s pipelines safely and reliably deliver the energy Canadians need to:

heat their homes

drive their cars

run their businessesPetroleum products are also used to make everything from the

electronics we use to the clothes we wear

The oil and gas sector

contributes to the strength of Canada’s economy,

directly and indirectly

EMPLOYING ABOUT

710,000PEOPLE

8%of GDP in 2015

and generating almost

The oil and gas sector

contributed an average of

$20.3 Bbetween 2010 and 2014

taxes, royalties andfees to government

money that helps to support public pensions, provide health careand build schools as well as hospitals, housing and highways

Canada currently has one major export customer for our oil and gas

In 2015

100%

natural gas exportsoil exports99%

went to theUnited States

Canadian oil production is expected to continue to grow from about

The oil sands isprojected to account for

79%of production

in 2040

The International Energy Agency projects

that, by 2040, the world will need

32% more energy than is beingproduced today

Oil sands greenhousegas emissions per barrel decreased 31% between

1990 and 2014

The oil sands sector

represents 9.3% of

Canada’s total GHG

emissions and 0.1% of

global emissions

Safe and reliable pipeline systems are critical to ensuring that our natural resources reach their destined markets and that our energy sector remains resilient and sustainable.

12.

Page 16: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

Key Facts:Building a Pipeline

Not all activities will occur at every location sequence may change on occasion

1. Surveying and Staking2. Clearing and Grubbing3. Topsoil Stripping and Grading4. Drilling and Blasting Trench Rock5. Pipe Stringing6. Trenching7. Pipe Bending8. Welding9. Non-destructive Testing

10. Coating of Field Welds11. Coating Inspection and Repair12. Boring Beneath Roads, Rail and Select Crossings13. Lowering-in14. As-built Surveying15. Padding, Backfill and Rough Grading16. Hydrostatic Testing and Final Tie-ins17. Replacing Topsoil, Final Clean-up and Restoration18. Reclamation

A pipeline construction project looks much like a moving assembly line and is typically broken into manageable lengths called “spreads.” Each spread is composed of highly qualified crews and specialized equipment, each with its own responsibilities. As one crew completes its work, the next crew moves in. In Canada a spread at peak will employ 700-800 workers and will typically construct a 100+ km of pipeline in either the summer or winter. The PLCAC unionized labour force comes from all provinces and territories across Canada with over 30% from eastern Canada.

13.

Page 17: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

Key Facts:Pipelining Under Waterways

Stage 1: Pilot Hole Directional Drilling

Stage 2: Reaming and Pulling Back

HorizontalDrilling Rig

Entry Point

Exit Point

Entry Pit with Berm

Drill Pipe Pilot Hole

Direction of Pilot Hole Drilling

DesignedDrill Path

Exit Pit with Berm

Profiles(Not to Scale)

HorizontalDrilling Rig

Entry Pit with Berm

Direction of Progress Reaming

Exit Pit with Berm

Watercourse

Watercourse

Drilling Fluid Returns

Reamer

HorizontalDrilling Rig

Entry Pit with Berm

Drilling Fluid Returns

Direction of Pull Back

WatercourseExit Pit

with Berm

Swivel

PrefabricatedPull Section

14.

Page 18: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

napipelines.com APRIL 2016 | North American Oil & Gas Pipelines 31

Alberta’s Athabasca River Challenges HDD Crews

Michels Completes 7,200-ft Crossing to Install Gas Line

By Jeff S. Mueller and Patrick O’Donoghue

Long before a drill bit bores into the ground, a contractor’s expe-

rience and comprehensive planning process help to determine

the probability for success on a boundary-stretching horizontal

directional drill (HDD) project.

Michels Canada Co. recently completed a challenging 7,200-ft

(2,195-m) bore for the installation of a 42-in. pipe under

the Athabasca River near Fort MacKay, Alberta, about

40 miles north of Fort McMurray. The 1.36-mile

installation is a record length for 42-in. diam-

eter pipe for Michels and considered to be

one of the longest 42-in. installations done

in the world.

15.

Page 19: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

32 North American Oil & Gas Pipelines | APRIL 2016 napipelines.com

The project has several unique ele-ments that, when combined, made it an exceptional achievement in pipeline construction. As an inter-national leader in HDD and trench-less construction, Michels has com-pleted some of the longest and most challenging projects in the industry at a variety of diameters. Michels’ operational leadership team lever-aged that experience when devel-oping an effective strategy for com-pleting the Athabasca River project. The crossing was one of seven 42-in. installations Michels is completing on TransCanada’s Northern Courier Pipeline Project, a 56-mile pipeline system that will transport bitumen and diluent products between a mine and bitumen extraction facil-ity in Fort Hills to a tank farm near Fort McMurray.

The mammoth scale of the 42-in. project required Michels to tap into its abundant resources and techni-cal knowledge. An initial design for a shorter crossing of about 6,000 ft was set aside because it would have required drilling in a sensitive area, as well as getting access close to the Athabasca River. Instead, the cross-ing was redesigned and extended to pass under both the Athabasca River and the mine site highway.

Due to the length of the align-ment, the design utilized a pilot hole intersect method and then set up Michels’ 1.2 million-lb drill rigs on each side of the river for reaming operations.

The subsurface conditions were challenging as crews encountered geology that included oil sands, hard limestone, sandstone and siltstone. Michels utilized a variety of drilling tools and paid special attention to the engineer-designed drilling fluid pro-

gram to manage the four substantial-ly different formations. Both entry and exit side utilized surface casings to quickly reach more favorable for-mations. To ensure drilling accuracy, Michels used a combination of gyro steering and ParaTrack navigation tools for guidance with annular pres-sure monitoring.

Adhering to the designed drill path was as critical as it was de-manding. Because the 42-inch pipe will contain a thermally grouted 24-in. pipeline, the installation needed to maintain specific gradients to ad-here to the grouting plan.

The pilot hole was bored at 12 ¼ in. in diameter. Next, the hole was reamed in stages to the final diam-eter of 54 in.

Maintaining the path was one of several challenges. In addition to the HDD crew, Michels Can-ada provided pipe support and welding services.

Prior to pullback, the string was assembled and welded into one sec-tion and placed on rollers. Due to site limitations, the colossal pipe string was curved along 70 percent of its laydown length. To safely and efficiently handle the pipe, Michels utilized 10 cranes, five side booms and three excavators. The steep en-try angle required the pipe-handling crew to hoist the pipe a soaring 47 ft into the air.

Michels Canada also worked with project owner, TransCanada, to en-sure there was proper contingency for the pipe installation phase by utilizing one of Michels’ 1.2 million-lb drill rigs to pull and a 750-ton Herrenknecht Pipe Thruster at exit. Michels has utilized a similar con-tingency strategy on previous large-scale projects and, once again, it paid

off. The pipe thruster was occasion-ally engaged to assist the pullback along the alignment. In fact, the pullback was challenging right from the start when a hefty 380,000 lbs of pull force was needed to achieve ini-tial movement

Michels has completed trenchless installations in all environments, from some of the most densely pop-ulated to some of the most remote, and utilized that experience to pre-pare to work in the isolated north-eastern Alberta area.

The 30-member crew stayed at nearby work camps, a necessary step to accommodate the 24/7 schedule. They encountered typical Alberta weather that ranged from highest near 90 F to lows of -4 F.

Keeping essential tools and sup-plies nearby was of critical impor-tance, given the remote location and very limited options for receiv-ing deliveries in a timely manner. In addition to determining which pieces of equipment, tools and sup-plies were necessary to begin con-struction, the Michels project man-agement team also arranged to have adequate backup pieces on hand for immediate use should their need arise.

In the end, Michels’ planning and processes paid off. The installa-tion was completed on schedule in November. In addition to accurately following the required alignment, the installation was completed without any lost-time injuries and without any inadvertent fluid releas-es along the environmentally sensi-tive crossing.

Jeff S. Mueller is Michels Directional Crossings Operational Manager. Patrick O’Donoghue is Michels Trenchless Crossings Manager.

Michels Canada installed 1.36 miles of 42-in. pipe under the Athabasca River near Fort MacKay, Alberta, as part of a 56-mile pipeline system to transport bitumen and diluent products.

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PLCAC contractors, including the team at Waschuk Pipe Line Construction Ltd., take conservation of the environment seriously. Waschuk Pipe Line Construction Ltd. is currently working on the Norlite Pipeline Project for Enbridge Ltd. in Alberta. When completing

any pipeline construction project there are many environmental considerations such as; streams, undefined drains, wetlands, weed control, topsoil preservation, and wildlife protection. Whether it’s starting the project late, due to nesting birds, or a Western Toad sweep, there is an astute awareness and intention to minimize the construction impact and steward the environment into which the pipeline is integrated.

Nesting birds are a major concern in summer/fall work. The Waschuk Pipe Line Construction Ltd. management team worked closely with their client (Enbridge Ltd.) on this project to communicate work activity locations to the front line and plan the best course of mitigation to avoid high risk areas. A nest sweep is conducted prior to the commencement of work to ensure construction activity will not endanger any hatchlings. If active nests are found, a buffer area (anywhere from 15m up to 1000m for some species) is set up and entry is restricted in the area until the nest is clear. The current spread had a 6 week late start in order to minimize impact on hatchlings and avoid shut downs during active construction.

This year’s project also encountered a knot of Western Toads on the construction right of way. Western Toads are a species at risk, so considerable measures are taken to ensure a successful relocation. Amphibian sweeps are regularly conducted prior to access and construction. Working alongside biologists, the Waschuk Pipe Line Construction Ltd. team performed a complete isolation of the determined toad habitat on the right of way. Biologists then trapped, counted, and safely relocated the endangered toads so work could continue.

One of the biggest concerns when building a pipeline is crossing waterbodies. Highly experienced managers, environmental consultants and construction foremen at Waschuk Pipe Line Construction Ltd. properly recognize, identify and plan for the most environmentally sound and effective crossings. With years of experience, the team is well-versed in the many different classifications when it comes to watercourses including; fish bearing, nonfish bearing, ephemeral streams (no water present), and undefined drainages (no bed or banks). Waschuk Pipe Line Construction Ltd. designs, issues and implements a crossing plan for both vehicles and pipe that is unique for each situation. The plan is reviewed and adjusted through onsite meetings with an environmental inspector to ensure minimal environmental impact. In addition, the Right of Way is minimized to the smallest width possible for safe work conditions. Waschuk Pipe Line Construction Ltd. has a solid history of restoring water courses to natural conditions, often strengthening banks to avoid future erosion.

Finally, when construction through the agricultural land (white zone) is required, the two most important issues are topsoil handling and weed mitigation, including club root. This has to be done correctly. Every single landowner involved on the project has been contacted in regards to weed prevention, machine cleaning and topsoil handling procedures. Weed cleaning stations are built along the Right of Way to reduce the spread of weeds and bleach is also used to mitigate club root. Topsoil handling is carefully tracked, to ensure all the topsoil is separated and to avoid the admixing of clay with topsoil. The division between topsoil and clay (A and B horizons) can be difficult to separate; therefore a transition zone is developed. An extra 10cm of soil is removed and stored separately, by storing it separately we lose approximately two metres of Right of Way but the topsoil that is returned is improved.

At Waschuk Pipe Line Construction Ltd. they have a simple environmental message to all their employees and contractors; “If this was your backyard what would you do?”

Article reprinted from the Canadian Pipeliner, December 2016, Vol. 31 #4

Western Toad

Environmental Conservation: Every Day on the Right of Way!

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FACT: Over 70% of Canada’s energy demand is currently met by natural gas or crude oil.

FACT: Only 2.2% of the world’s energy was derived from renewables in 2015, while 30.4% came from oil and 27.9% from natural gas.

FACT: Pipelines are necessary to deliver fuel for Canadians to heat their homes, drive their cars and travel by bus, ship, train and airplane.

FACT: The International Energy Agency projects that by 2040, the world will need 32% more energy.

FACT: About 1.3 billion barrels of oil are moved by pipeline each year, with a 99.999% safety record.

FACT: Over 3000 “integrity” digs (excavation of a section of pipeline for inspection) were done in 2015.

FACT: In 2015, 67% of natural gas and liquids incidents occurred in facilities, not on pipeline routes.

FACT: Over 31,000 km of “inspection runs” were conducted in 2015 using small submarine-like devices which travel inside a pipeline to diagnose potential issues.

MYTH NO. 1

We don’t need oil.

MYTH NO. 2

Pipelines are unsafe.

MYTH NO. 3

The pipeline industry doesn’t care about the environment.

FACT: Oil sands greenhouse gas emissions decreased 31% per barrel between 1990 and 2014.

FACT: Only 9.3% of Canada’s total greenhouse gas emissions and 0.1% of global emissions come from the oil and gas sector.

FACT: Our industry uses many reclamation techniques to reduce and eliminate a pipeline’s environmental footprint and return the pipeline route to its natural condition.

FACT: Canada’s second largest wind power producer is also a pipeline company.

About our Industry Approximately 97% of Canadian natural gas and crude oil is transported by transmission pipelines.

The oil and gas sector directly and indirectly employs approximately 740,000 people in Canada (for comparison, Canada’s 20 or so manufacturing industries collectively employ about 1.7 million people).

Our sector generated almost 8% of Canada’s GDP in 2015 (compare to manufacturing at 11%), and currently has one major export partner for its oil and gas – the U.S.A (at 100% and 99%, respectively).

Canadian oil production is expected to continue to grow from about 3.5 million barrels per day in 2013 to 6.1 million barrels per day in 2040.

Fact vs. Myth:The Canadian Pipeline Industry

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Fact vs. Myth:The Canadian Pipeline Industry

FACT: Remotely-controlled pipeline valves can shut off the flow of product at a moment’s notice.

FACT: Close to 400 emergency response exercises were practised with first-responders in 2015.

FACT: Of the 1.3 billion barrels of oil moved by pipelines in 2015, the equivalent of nine average sized bathtubs was spilled (and the companies involved were 100% responsible for response, cleaning and restoration).

FACT: Pipeline companies are closely audited to ensure emergency preparedness, but are more focused on ensuring incidents don’t occur in the first place.

FACT: Canada has had pipeline rules and guidelines in place (The Pipelines Act of 1949) for almost 40 years longer than it’s been required to wear seat belts in cars.

FACT: If a pipeline crosses provincial or international borders, it’s typically regulated by the National Energy Board (NEB).

FACT: The NEB currently regulates 73,000 km of pipeline throughout Canada.

FACT: Pipelines that operate within a province/territory generally fall under the provincial/territorial regulator’s authority – examples include the Alberta Energy Regulator, British Columbia Oil and Gas Commission and the Ontario Energy Board.

FACT: When pipeline operators want to put in a new pipeline or expand an existing one, they will always talk to a variety of stakeholders.

FACT: Farmers who own agricultural land through which a pipeline is routed are referred to as “landowners” and considered to be partners in delivering energy.

FACT: In urban communities, pipeline companies try to lay pipelines along roads or other existing utility routes.

FACT: To promote safety and prevent damage by third-party excavators (like construction crews or homebuilders), all Canadian provinces have a “One-Call Centre” and/or a “Call or Click Before You Dig” program.

MYTH NO. 4

Leaks happen and no one is prepared.

MYTH NO. 5

Pipelines aren’t adequately regulated.

MYTH NO. 6

Pipeline companies don’t care about local communities.

DID YOU KNOW?A train would have to be 4200 cars long (or 85 km) to move the 3.4 million barrels of crude oil transported by pipelines in Canada everyday!*With information from the Canadian Energy Pipeline Association and Natural Resources Canada.

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Page 24: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA · PDF fileEXECUTIVE OFFICE Suite 201 1075 North Service Road West Oakville ON L6M 2G2 Tel: 905-847-9383 Fax: 905-847-7824 Email: plcac@

EXECUTIVE OFFICE Suite 201

1075 North Service Road WestOakville ON L6M 2G2

Tel: 905-847-9383 Fax: 905-847-7824

Email: [email protected]: www.pipeline.ca

Neil G. Lane, Executive Director

PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

“Building Canada’s Pipeline Infrastructure for Over 60 Years”