pipeline news may 2013
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Pipeline News May 2013TRANSCRIPT
PIPELINE NEWSSaskatchewan’s Petroleum Monthly Canada Post Publication No. 40069240
May 2013 FREE Volume 5 Issue 12
This wind turbine, and the white metal boxes containing large lithium-ion ba eries could be a harbinger of things to come for wind energy produc- on. Back row, from le : Juan Cor ez, Sa , Jacksonville, Fl.; Wayne Powell, Sa , Jacksonville, Fl.; Ryan Bunge, Sa , Jacksonville, Fl.; Javier Men-
doza, ABB, Montreal; Olivier Gaugain, Sa , Bordeaux, Fr.; Kirk Simonson, Pentec, Saskatoon; Ryan Jansen, SRC, Saskatoon.Front row, from le : Rod Neufeld, Willms Engineering, Saskatoon; Mike Sula sky, SRC, Saskatoon. See story Page A3. Photo by Brian Zinchuk
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INSIDEA2 PIPELINE NEWS May 2013
PIPELINE NEWSNEWSSaskatchewan’s Petroleum Monthly
June 2013 FocusContact your Sales Rep
to be a part of the focus edition
SE & NW SK and SW Manitoba • Phone: 306.634.2654
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SECTION A5 CanGas conver ng rigs to burn natural gas
6 Editorial
7-8 Opinion
16 Irish arrivals spawned by 2012 job fair
17 Alterna ve energy has to make sense: SaskPower CEO
23 Bonnyville show catering to exhibitors
SECTION B1 Sun powered doghouses worth a howl
4 New NDP leader Q&A
9 Small Meota upgrader planned
10 NRGreen builds new cogen plant
SECTION C1 Cenovus open house
4 Sask. resource credit reduced
10 SETI job fair
16 Estevan OTS bonspiel
19 Jim Arthurs on natural gas engines
22 Land sale results
PIPELINE NEWS May 2013 A3
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By Brian ZinchukPipeline News
Cowessess First Nation – “If you truly want to
change the world, solve storage,” said Scott Tinker,
the man behind the documentary Switch, during
the 2012 Williston Basin Petroleum conference in
Bismarck, N.D.
Th is is the message the man with PhD in
geological sciences and the Edwin Allday Endowed
Chair in Subsurface Geology tells young people
when talking about energy production and specifi -
cally renewable energy like wind and solar. Storage
of energy for intermittent power sources like wind
and solar is the key challenge for alternative energy.
Now, an endeavouring Saskatchewan First
Nation is seeking to do just that – solve storage.
Cowessess First Nation launched a unique proj-
ect just east of Regina in early April. While a tall,
gleaming light-grey wind turbine may not seem
like a big deal, what it is connected to is. Th is wind
turbine is connected to likely the biggest battery
you will likely ever come across. Th e idea is to cap-
ture energy when the wind is blowing, and release it
when it is calm.
Chief Grady Lerat spoke with Pipeline News on April 9th about the project, one that has taken
several years to get off the ground.
“We’re trying to prove out a battery system.
Th e wind blows, but it’s intermittent. One turbine
doesn’t aff ect the (electrical) grid, but 50 to 100
does,” he said.
Lerat has been chief for three years and on the
band council for nine prior to that. Band elections
on April 27, after press time, will determine if he
stays on in that capacity.
Th e band has approximately 3,800 members,
with approximately 750 residents on it reserve.
Th e First Nation community worked with nu-
merous agencies to make the wind project happen,
the most important of which is the Saskatchewan
Research Council. SaskPower was also a key player
as the purchaser of the power generated.
Th e wind turbine is made by Germany-based
Enercon. Th e hub height is 76 metres, and its ro-
tors are 48 metres in diameter. Th e height allows
the turbine to capture high winds, not just surface
winds. Th e turbine was chosen in part due to its
simplicity of design. With no gearbox, there is very
little maintenance.
But wind turbines are by-and-large proven,
mainstream technology now. Th e important thing is
the battery system, and it’s a big one. Lerat said it is
approximately six feet wide, 12 feet long and seven
feet tall.
“We got two, in case something should ever
happen,” he said.
Batteries to store wind power on the Prairies
are not new by a long shot. Decades ago, lead acid
batteries in glass vessels were used to store energy
on Saskatchewan farms before electrifi cation. But
batteries these days are much more advanced, and
have much more storage capacity. Th e batteries
Cowessess chose are lithium-ion, the same type of
composition used in modern cellphones and digital
cameras. Th ey have high energy density compared
to other battery compositions. Th ey also don’t have
a “memory eff ect,” which is why Tesla Motors uses
them for their high-end performance electric cars.
One of the reasons lithium ion was chosen was
it is believed to be safer environmentally, according
to Lerat.
As for the amount of energy that can be stored,
Lerat said they were shooting for 20 per cent, but
might be able to go as high as 40 per cent.
Th ere’s a fi ve year testing period planned. Th e
battery is expected to last up to 20 years.
Site selectionIn choosing the site, the First Nation decided
to go with land it had just outside of Regina, as
opposed to its primary reserve in the Qu’Appelle
Valley, north of Broadview. Th e project is between
Highways 1 and 33, just east of the Queen City.
“We have three quarters in a row,” said Lerat,
noting seven acres were used for the project.
“We could probably put another nine turbines
with the same capacity,” he said of the site.
Th ere was a conscious decision to not put it in
the valley for esthetic reasons. Plus, putting it on
the open prairie near Regina results in a better wind
resource. Th e visibility of the project is important
too, and perhaps a bit inspiring for band members.
One doesn’t just put up a wind turbine and
hope it’s going to blow enough to make the proj-
ect economical. Wind resource studies are done to
ensure there’s enough oomph in the air at the site
before a turbine ever goes up. An 18 month wind
study was done to ensure the location was right.
Lerat said, “We found the wind resources were
conducive to doing more, maybe to do a wind
farm.”
Th e First Nation had been actively working on
developing a wind farm, partnering with TransAlta.
Sites around Willow Bunch and Swift Current
were considered. Th ey missed out on recent larger
scale wind project contracts with SaskPower, how-
ever. Algonquin Power was the successful bidder.
Lerat mentioned initial talks about wind de-
velopment as far back as 2004. It began in earnest
several years later.
“We started in 2008. Nothing but good things
to say about all those involved,” he said.
Th ere were many organizations involved,
including Natural Resources Canada, Aborigi-
nal Aff airs and Northern Development Canada,
Saskatchewan Research Council, SaskPower, and a
multitude of others.
Natural Resources Canada contributed $2.8
million, while the provincial Go Green Fund put
in $1.4 million. Cowessess First Nation paid $1.8
million. Aboriginal Aff airs and Northern Develop-
ment Canada contributed approximately $236,000
and another $180,000 came from the Saskatchewan
Research Council. Page A9
These two white containers are actually very, very large lithium-ion ba ery systems. Combined, they have a us-able output of about 600 kilowa -hours. They are the key to the new wind project Cowessess First Na on has embarked upon.
Cowesses First Nation launches its High Wind and Storage Project
A4 PIPELINE NEWS May 2013
BRIEFS
Briefs courtesy Nickle’s Daily Oil Bulletin
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By Brian ZinchukRegina – Th is April Cowessess First Nation began opera-
tions of its High Wind and Storage Project just a few kilome-
tres east of Regina, between Highways 1 and 33. Th e innovative
project uses massive lithium-ion batteries to supply power to the
grid when the wind dies down. Th e First Nation’s key collabora-
tor on the project is the Saskatchewan Research Council.
Sheldon Hill is business unit manager of the alternative
energy business unit with the Saskatchewan Research Council
(SRC). He explained what their role has been, and some of the
technical details.
SRC has a role as project manager, service provider and col-
laborator, according to Hill. Th e technical support side is key.
Th ey have been involved from the very beginning, conducting
the fi rst wind study for Cowessess a number of years ago. SRC’s
fi rst involvement was in 2004, doing wind resource assessment.
“Th e Saskatchewan Research Council was responsible for
the design and project management,” Hill said.
SRC focused on setting the performance specifi cations for
the wind turbine and battery system as part of their involve-
ment.
While wind power generation is proven technology, the
battery system used to bolster power output when the wind dies
down is fresh.
“It is very unique. Th ere’s been a lot of talk and interest
about how energy storage can tie-in with variable energy re-
sources like wind and solar,” Hill said. “It’s one of the fi rst large-
scale projects demonstrating the combination.
“It’s a pilot project. Th ere’s certainly hope it will go forward
with replication and going ahead on a larger scale.
“We will know a lot in about one year’s time,” he said. Af-
ter that, remaining questions will focus on items like long-term
durability of the battery.
Lithium-ion batteries were chosen as a “multiple best
choice.” Th ose factors included life of the battery, the number of
charge and discharge cycles and the depth of discharge, cost of
batteries and “round-trip effi ciency.”
Hill said, “Several of the battery systems pose more of an
environmental risk. (Cowessess First Nation) didn’t have a lot of
tolerance of environmental risk. Taking care of the environment
was very near to their hearts.
Lead acid batteries, those used for automotive batteries,
have been used on submarines ever since the invention of sub-
marines over 100 years ago. In diesel-electric submarines, diesel
generators charge the batteries while operating near the surface,
and then the boats operate on electrical power deep under wa-
ter. However, this type of battery was not a contender for this
project.
“When you use it on a daily basis, and discharge signifi -
cantly, you don’t get any life out of them.”
He explained that for a backup power generation system,
lead-acid works work fi ne, but not for discharging on a daily
basis.
Other battery compositions discounted included nickel-
cadmium and nickel-metal hydride. Sodium-sulphur was the
leading contender with lithium-ion, but Hill noted that one of
the factors to consider was the maturity of the technology and
availability of product.
“It might be good on paper, but how mature is the technol-
ogy? How commercially proven is it? What is the product avail-
ability? Can you get it in the size and quantities that’s needed.”
Page A10
The technical side of Cowessess’ wind project
The Regina re nery can be seen in the distance, several kilometres northwest of the new wind turbine belonging to Cowessess First Na on.
PetroBakken Energy
Ltd.’s board of directors is
proposing to change the name
of the company to Light-
stream Resources Ltd.
In an April 23 press re-
lease, the company explained
that PetroBakken was initial-
ly chosen to refl ect the focus
of its asset base in the Bakken
and the ownership structure
within the Petrobank Energy
and Resources Ltd. group of
companies.
Since that time, although
the Bakken continues to be a
core part of its strategy, the
company has diversifi ed its
asset base to include other
signifi cant operating areas,
such as the Cardium busi-
ness unit, which is focused on
central Alberta assets.
“Th e company also is
no longer majority owned
by Petrobank following the
distribution of Petrobank's
ownership interest to its
shareholders at the end of
2012. Given the changes to
our asset base and owner-
ship structure, the company
believes that the adoption of
this new name is appropriate
to accurately refl ect our busi-
ness,” PetroBakken said in
the release.
“Th e name Lightstream
Resources Ltd. was chosen
to refl ect our commitment to
the innovative development
of long life, light oil plays
which deliver growth and a
stable dividend to our share-
holders.”
Th e name change is sub-
ject to shareholder approval
and will be voted on at the
company’s annual and special
meeting of shareholders to be
held at May 22, 2013, at the
Telus Convention Centre in
Calgary.
PetroBakkenname change
PIPELINE NEWS May 2013 A5
BRIEFS
Briefs courtesy Nickle’s Daily Oil Bulletin
Longview Oil
Corp. drilled 29 (19 net)
wells with 100 per cent suc-
cess in 2012, adding initial
30-day production produc-
tion of about 1,591 boepd
(90 per cent crude oil and
natural gas liquids) repre-
senting an onstream cost of
around $28,000 per boepd.
Output was fl at with
2011, however, and the com-
pany recorded a net loss.
During 2012, Longview
recognized an impairment
of oil and gas properties of
$31.9 million (Dec. 31, 2011
- nil) related to crude oil and
natural gas producing assets
in west-central Alberta.
Crude oil prices were
challenging during much of
2012 due to weakened WTI
pricing, and wide diff erentials
between WTI and Canadian
realized pricing that resulted
in lower funds from opera-
tions compared to the prior
year, the company wrote in a
release.
Due to weaker-than-an-
ticipated commodity prices
and higher diff erentials, the
company reduced the year’s
capital expenditure program
in the second quarter of 2012
to $46 million from $73 mil-
lion.
Th e company spent
$44.49 million on property,
plant and equipment and ex-
ploration and evaluation as-
sets, which included spending
of $24.2 million in Saskatch-
ewan, $8.1 million at Nevis,
$5.2 million at Westerose,
$3.4 million at Brazeau and
$2.1 million at Sunset, with
the remaining spending for
miscellaneous projects.
Longview bit by prices
By Brian ZinchukCalgary – It’s hard to wrap your head around it, but one of
the key areas for greenhouse gas emissions improvements in the
oilpatch could end up being drilling rigs.
CanGas Solutions, a division of CanElson Drilling, has been
developing a system to convert drilling rigs to use both diesel
and natural gas as fuel. Th eir intention is to capture fl are gas and
use it to fuel drilling rigs. Th e result is taking a waste product,
fl are gas, and using a cleaner-burning fuel in high consumption
scenarios. While there may be environmental benefi ts, the most
important factor is another form of green – as in dollars.
A drilling rig can use up 4,500 litres of diesel or more on a
cold winter’s day, when boilers are running to keep everything
at the proper operating temperature.
CanElson is in the process of converting the majority of its
Canadian rigs to burn both diesel and natural gas, a confi gura-
tion they refer to as “bi-fuel.” Four of its 14 Saskatchewan rigs
have already been converted, and they are in process of switching
over the rest. Four more are undergoing conversion this spring.
Rob Logan is president and CEO of Calgary-based Can-
Gas, while Greg Loewen is vice-president of operations. Th e
company was founded in 2006, Loewen and Fraser got things
going in earnest in 2009. Logan came over recently from
CanElson.
Fraser, business development manager with CanGas, said
the company initially focused on trucking captured fl are gas.
Th ey came up with a process to capture gas that would other-
wise be fl ared, compress it, and store it on semi-trailers.
Th eir fi rst project was south of Estevan, at a location that
could not be connected by pipeline to a gas gathering system
due to the coal mines. Th ey’ve since captured gas at other loca-
tions in Saskatchewan and then Alberta.
Th e company’s fi rst project was with PetroBakken. “Th ey’ve
helped us out tremendously,” Loewen said. “We have taken that
success and multiplied it with other producers and in other ap-
plications.”
Images on the CanGas website show a compressed natural
gas trailer on a PetroBakken lease near the coal mines southeast
of Estevan.
“We look to design and implement innovative solutions to
optimize raw and compressed natural gas to displace diesel in a
variety of applications,” Logan said.
Liked it so much, they bought the companyCanElson talked to CanGas about trucking gas. It ended
up being a situation where they liked the idea so much, they
bought the company in May 2012.
Th e conversion cost varies per rig, according to Logan. “Th e
Saskatchewan rigs are more of a kit,” he said.
A Saskatchewan rig is about $100,000 to $120,000 for the
mud motor and generator, and another $30,000 for the boiler,
for $150,000 all-in. Alberta rigs will have two mud pumps and
two generators, so there is more work involved.
“With these conversion kits, we can displace up to 70 per
cent (of the diesel that would otherwise be used). Th e average
displacement is about 50 per cent,” Fraser said.
Boilers are converted such that they can be switched over to
100 per cent natural gas.
Natural gas is considerably cheaper that diesel, with an
eight-to-one spread for raw gas to diesel. In other words, the
fuel alone, not counting operating costs and equipment, is
roughly one-eighth the cost of diesel. Th is system can displace
1,500 to 3,000 litres of diesel per operating day. Th at adds up to
a lot of dollars down the road.
Th e concept is designed to take gas that might be otherwise
fl ared 10 miles down the road, and use it for drilling.
Th e irony of the situation is that if the gas is fl ared, no roy-
alties are paid on it and it’s essentially free. But if you capture it
and use it, you have to pay for it.
“It’s a funny conundrum,” Fraser said. “When they burn it,
you don’t pay royalties. But if you conserve it, you may have to
pay royalties. As soon as it leaves the lease, you have to pay.”
SaskEnergy siteSaskEnergy has installed a compressed natural gas station
at its site just north of Weyburn on Highway 35. CanGas will
be trucking gas from that site for now. In mid-April, fi nal work
was being done on the fuelling site. Page A12
John Kadar, opera ons manager for CanGas Solu ons, is overseeing the conversion of four more CanElson Drilling rigs to a bi-fuel arrangement. This will allow the rigs to supplement their diesel consump on with much less expensive compressed natural gas. Here Kadar shows the compressed natural gas system for the mud pump motor.
Converting rigs to burn natural gas
A6 PIPELINE NEWS May 2013
Publisher: Brant Kersey - Estevan
Ph: 1.306.634.2654
Editorial Contributions: SOUTHEAST
Brian Zinchuk - Estevan 1.306.461.5599
SOUTHWEST
Swift Current 1.306.461.5599
NORTHWEST
Geoff Lee - Lloydminster 1.780.875.5865
Associate Advertising Consultants:
SOUTHEAST & NORTHWEST
• Estevan 1.306.634.2654
Cindy Beaulieu
Candace Wheeler
Kristen O’Handley
Deanna Tarnes
Teresa Hrywkiw
• Carlyle 1.306.453.2525
Alison Dunning
CENTRAL
Al Guthro 1.306.715.5078
SOUTHWEST
• Swift Current 1.306.773.8260
Stacey Powell
MANITOBA
• Virden - Dianne Hanson 1.204.748.3931
• Estevan - Cindy Beaulieu 1.306.634.2654
CONTRIBUTORS
• Estevan - Nadine Elson
• Saskatoon - Josh Schaefer
• Virden - Harley McCormick
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NEWSPIPELINE
Mission Statement:Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people.
EDITORIAL
Some of our loyal readers might wonder why our
front page this month features a wind turbine. After
all, this is Pipeline News. Shouldn’t there be a drilling
rig, service rig, or maybe a pipeline on the cover?
One might think that, but in reality, this new
wind turbine, just outside Regina, may be the harbin-
ger of things to come, and could indeed lead to more
work for those drilling rigs, service rigs, and pipelin-
ers.
Cowessess First Nation, in April, brought into
operation the culmination of nearly a decade of work
trying to get a wind project going. While the blades
are now spinning, this project is far from over. It’s just
beginning.
Instead of just putting up a wind turbine and
selling power, the forward-thinking First Nation has
partnered with the Saskatchewan Research Council
and several other agencies to address one of the most
signifi cant questions in the energy mix – how do you
make variable power sources like wind and solar work
in a grid that needs predictability? What happens
when the wind stops, or the sun goes behind a cloud?
Can you level out the power production curves with
large batteries?
Th eir project uses two giant batteries to store en-
ergy when the turbine is turning, and release it when
the power generated by the wind drops off . It’s not a
total solution. It won’t fi ll in for a whole night. Th e
batteries will only give a few hours replacement at full
output. But, if successful, it will make it much easier
for utilities like SaskPower to integrate more wind
What’s up with the wind turbine?
into their grids.
Th is is where the relationship to the petroleum
sector comes in. Utilities need to backstop wind power
generation with dispatchable power generation for the
times when the wind is not blowing. Th e natural fi t is
natural gas turbines. Th ey can be spun up and down
as needed, addressing not only peak power demands,
but also replacing variable sources like wind when they
aren’t putting out.
Th at, in turn, means more markets for Saskatchewan
natural gas. In recent years, SaskPower has built several
gas turbines throughout the province. Additionally, it
contracted power that will be generated by Northlands
Power’s new North Battleford natural gas power station.
More gas burned here hopefully means more drill
bits turning, and more pipelines connecting the new
holes. Saskatchewan’s natural gas industry has been de-
scribed by at least one offi cial as “fl atlined,” so any new
market is welcomed.
Alternative energy, our focus this month, isn’t an
enviro-nut conspiracy. Mankind’s energy sources have
continued to evolve – from wood to whale oil to coal to
oil. Th e resurgence of natural gas may be the next step
in that continuum. When paired with wind, it could
have a profound impact on our world. It will never
totally replace oil, but it may give us more options for
the future.
So think of it this way – for every wind turbine that
goes up, they’re probably going to have to drill a few
holes to back it up with fossil fuels. One way or another,
it’s all related.
PIPELINE NEWS May 2013 A7
OPINIONFrom the Top of The Pile
By Brian Zinchuk
I’m in McCarran International Airport in Las
Vegas, looking for a magazine for the fl ight home,
when I see the distinctive yellow border of my old
favourite – National Geographic.Th e front page photo is a fl are pit, with the text
saying, “America Strikes Oil – the Promise and Risk
of Fracking.” Th is looks promising. Th e photo is near-
ly identical to one I shot several years ago on my way
back from the Williston Basin Petroleum Conference
in Bismarck.
Opening it, that promise withered.
Th e story starts by telling the tale of Susan Con-
nell, a produced water hauler. She’s from Montana,
but lack of construction work there for both she and
her husband meant they were about to lose their
house, so she went to fi nd truck driving work in
North Dakota.
At fi rst no one would hire her because she was
a woman, so she found work hauling grain. A little
later, she got her chance and started hauling produced
water, substantially increasing her income.
Th e second paragraph of the story, however,
brought a chill to my spine. It read:
“Just don’t pass out on me,” Connell says, half in jest. We’ve scaled a steep stairway to a narrow steel catwalk 30 feet above the ground, but she’s not referring to the height. She says that one of the fi rst times she opened the hatch atop a dirty water tank, she was overcome by fumes. “I fell to my knees.” No one had warned her about the dozens of chemicals in the water, including hydrogen sulphide, H2S, it’s rotten egg odor created by bacteria growing inside wells. In high enough concentrations, it can be poisonous, even lethal.
Ironically, the gas poses the greatest risk when it deadens your sense of smell, another safety lesson Connell
had to learn on her own. Eventually someone gave her an H2S detector, which she clipped to her collar whenever she approached a well that turned “sour” enough to be hazard-ous. Once she was pumping dirty water from her tanker truck when the detector sounded. She scrambled away, thinking she’d escaped harm. But hours later, she felt stab-bing pains in her stomach, the prelude to a weeklong bout of vomiting. Her next purchase was a gas mask.
Th is account made me sick to my stomach. If this
is how the American oil and gas industry is operat-
ing, no wonder people are protesting pipelines in the
streets.
Th e above account could, and should, be used as
an Enform case study of exactly how not to operate in
the oilfi eld. Last year Enform trained 149,000 people
in H2SAlive in Canada. It was clear she had no prior
safety training. Her employer failed miserably on that
front. She was not provided with the proper safety
training, nor the personal protective equipment such
as a gas detector or self-contained breathing appara-
tus. I doubt a “gas mask” would do her much good.
She suff ered two knock down events and still the
company did nothing? Did she report these events?
Did the oil producer know about this?
I read this account to Chris Neitling, who is a
professional HSE consultant, specializing in oil and
gas pipelines and facilities. A Preeceville boy, he’s ap-
peared in Pipeline News several times. Neitling said,
“Given the level of inaccuracy in the story, it is no
wonder the American people are becoming progres-
sively anti-oil. I am further perplexed why National Geographic would not have taken the time to verify
the validity of such an account, as that account direct-
ly indicates violations at the local, state and national
level, labour laws, requirements and responsibilities
and regulations.”
He added, “From an OH&S perspective, Canada
is 10 years behind Europe, and America is 10-15 years
behind Canada.”
Th ere’s no question of that from the article. Th e
photos tell the tale. First, there are the fl are pits, which
have been gone from Saskatchewan for many years.
Th ree years ago, when I last reported on them, nearly
all have since been cleaned up.
Th en there’s the giant dug pit with a liner to
store “rainwater and borehole waste.” Where are the
tanks?
Th e two-page photo of a service rig has the rough-
necks in jeans. I highly doubt they’re fi re retardant.
While the article says Connell, herself, wears
fi re retardant coveralls, the photo of her loading her
truck puts lie to that statement. Her FRs are hanging
around her waist. Nice ball cap, by the way, and such
nice eyes without pesky safety glasses.
I’m not saying Canadians are perfect. Far from it.
A lot of people get lax, and smarten up as soon as they
see me show up on the lease with a big camera. But
on the whole, Canadian operations are tremendous-
ly further advanced than what National Geographic showed in North Dakota. If nothing else, we would
expect everyone setting foot on a lease would have
had their H2S training.
And one would expect they wouldn’t be buying
their own “gas mask.” Proper self-contained breathing
apparatus should be on site.
Th e magazine may have had a yellow border, but
the article was a big black mark for our industry.
Brian Zinchuk is editor of Pipeline News. He can be reached at [email protected].
Two knockdowns and no training. Just lovely
One Woman’s Perspective on Life, Liberty and the
Pursuit of Land Locations By Nadine Elson
Shifting Shifting GearsGears
Spring in the oilpatch is all about training, tak-
ing advantage of the annual road bans to renew var-
ious safety courses. My friend Leanne, who works
in the patch in the area of pipe inspections, and I
had done that. We were now attending training of
a diff erent type - motivational training.
We were laughing and chatting when we fi rst
heard the sound. It was a muffl ed roar, swelling in
intensity. Soon, vibrations could be felt underfoot.
I was nervous.
Leanne looked around incredulously. “Th e
building is actually moving,” she said in awe. I
looked up at the ceiling. Would the roof hold? Th e
province had seen more than a 150 roofs collapse
this winter due to snow.
Th e building in question was Saskatoon’s Cred-
it Union Centre. Leanne and I had driven up to
Saskatoon to spend “An Evening with Oprah Win-
frey.” We weren’t alone. Th e building was packed
with a sold out crowd of 14,000 women and 50
men who had come to see Oprah in person and
hear her inspirational message. It was the last stop
on her eight-city Canadian tour. Th e building was
literally vibrating with the stomping of female feet
and the applause that greeted Oprah when she fi rst
entered the arena.
“Why are you here?” Oprah asked the crowd.
“You know I don’t dance and sing, right?”
Collectively, we laughed. But it was a philo-
sophical question, as the queen of talk asked us
to consider our purpose in life. She was easily the
most glamorous motivational speaker I had ever
seen, wearing a fl oor-length sequinned gown and
killer high heels.
“I am here,” she said, “to share parts of my life
with you so that when you leave here tonight, you
will live more forcefully and turn up the volume on
your life. Turn it up so loud, so loud, so that you will
know what you were called to do and be about the
business of doing it. Because the ultimate question
for all of us is - Why are you here?”
She told us that every day we get to express
ourselves through our work and through our life
experiences much like a painter adding shadows, or
erasing by painting over things, or adding more vi-
brancy to the canvas of our life.
“I say - why are you here? You are here because
you’ve been called!” Oprah told us and for the next
two hours she talked. Biographical in part, the
main point of the evening was that we were “wast-
ing time” if we did not know our calling in life, our
purpose, something she has sometimes struggled to
know herself.
We clapped, we cheered, and some wept as
she told both personal stories and life lessons. At
the end of the evening, Leanne and I fought the
crowds, got back into the van and drove the fi ve
hours home, arriving around 3 a.m. It had been a
long day for a once in a lifetime opportunity. No
problem, though, for an off -duty hotshot driver!
Several days after returning from Saskatoon,
I entered an oil company building. “Why are you
here?” the receptionist asked. I looked at her sharp-
ly. Did she know that I had been considering that
question for days since the evening with Oprah?
“Now that is an excellent question,” I respond-
ed and paused before I replied. “I have been called,”
I answered simply and smiled.
Nadine lives in Estevan with her husband and family, and shifted gears a few years ago, becoming a hot shot driver for the oil patch. Her people skills are put to good use in the patch as she delivers the goods quickly and effi ciently. Contact her at [email protected] with comments or questions.
Why are you here?
A8 PIPELINE NEWS May 2013
Are You Covered?By Harley McCormick
Alternative or renewable energy, while still a
small player, has increased its presence in the Prairie
provinces over the past few of years. A variety of
alternatives are available, including but not limited
to: wind, solar (PV and thermal), biofuel plants,
waste to energy, landfi ll gas recovery, algae, geo-
thermal, and tidal power.
Because we don’t have a great number of
commercial alternative energy projects, I am
going to discuss a few of the diff erent options
available to homeowners. Th ere are several types
of renewable electricity generating projects you can
install at your home: solar, wind and water power
projects. To date, solar panels have proven to be the
most popular with homeowners, although geother-
mal (water) heating and cooling has increased in
popularity.
Solar energy is the energy developed by har-
nessing the radiant light and heat of the sun. Th is
can be done through both solar photovoltaics or
PV (electricity production) and solar thermal (heat
energy) technologies.
PV starts with a module that is comprised
of multiple solar cells assembled in a protective
weather enclosure (the solar panel). Th ese panels are
linked together into an array and typically mounted
on the roof of your home with or without a tracker
that can tilt panels to the most ideal angle to the
sun. Next, an inverter will convert the DC current
to an AC current allowing the electricity to be used
in your home.
Th ermal cells are similar to that of PV. Th e sys-
tem itself does not create direct electricity though;
instead the energy is collected through the heating
of water or glycol circulating through the panels
that can then be converted to electricity.
Costs for solar energy installation can start for
as little as $1,500 for a very small system and can
quickly increase to $30,000 or more for equipment
and labor for larger systems.
Geothermal systems rely on an energy ex-
change between the air above ground and the
ground itself. Below 10 feet the ground tempera-
ture is fairly constant. During the summer, when
the temperature of the building exceeds that of the
ground, heat pumps are used to pump heat from
the building into the water or glycol, and then
pumped through pipes into the ground. In the win-
ter the process is the reverse, heat pumps extract
heat from the ground and bring it into your home.
Th e installation of a geothermal heat pump can
reduce a home’s annual heating use by 50 to 70 per
cent. Th e system is also capable of reducing cool-
ing costs upwards of 40 per cent and water heat-
ing costs up to 25 per cent. Th e costs to install a
geothermal system typically run $20,000 - $30,000
depending on if, and how many, water wells need
to be drilled. Typically, a geothermal system will
pay for itself in 6-10 years.
No matter what option you choose, each has its
own special insurance considerations. For example,
you may need coverage for the following scenarios:
Loss or damage to any solar panels, geothermal
pumps, or wind equipment on your property due to
theft, fi re, wind or other perils;
Loss of income due to the interruption of the
generation and sale of energy caused by loss or
damage to your property (sometimes income is
derived if the owner has developed their own wind
power generation);
Liability for any potential loss or damage to a
third party, such as a solar developer or renewable
energy installer, or the local energy distribution
company.
Renewable energy projects add signifi cant
value to your property, and this has additional
insurance implications. Most comprehensive home
policies require reporting any renovations or up-
grades that impact the value of your property. It is
important to speak to your broker before construc-
tion begins to make sure that you are adequately
protected in the event that you suff er loss or dam-
age to your home.
Harley McCormick is a Virden, Manitoba based insurance broker with 10 years in the industry. He can be reached at [email protected].
What happens if your alternative energy power system goes out?
PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR ARE WELCOME.Email to: [email protected]
Lee Side of LloydBy Geoff Lee
Publicly-funded
colleges and universities
are bearing the wrath of
a $6.2 billion reduction in revenue during Alberta’s
2013-14 budget year, mainly due to the so-called
bitumen bubble.
Th e bubble means bitumen is selling for a dis-
counted price, compared to North American and
global benchmark prices, resulting in a huge loss in
projected royalties.
Total revenues for 2013-14 are estimated at
$38.6 billion, $5.4 billion lower than the budget
forecast in 2012.
To help balance the books, the government has
cut $147 million from base operating grants of col-
leges and universities from this year’s budget.
Instead of a two per cent increase in operating
grants promised in the 2012 budget over the next
three years, publicly-funded colleges and universi-
ties are looking at 7.3 per cent cut to their grants
this year.
For institutions such as Lakeland College in
Lloydminster and Vermilion, that means 30 to 40
employees will be losing their jobs to make up for a
$3 million shortfall in revenue.
At a time when the federal government is
making job training a priority to fi ll needed posi-
tions in the oil and gas industry in Alberta and
Saskatchewan, any cuts to education don’t make
sense.
Lakeland College, for instance, is the only
post-secondary institution with heavy oil pro-
gramming developed by industry to train the next
generation of power engineers and specialists that
are in short supply in Alberta.
Th e cuts might impair the ability of Lakeland
to proceed with its $17.5 million Petroleum Centre
expansion as rising construction costs stay ahead of
private fundraising.
Th e Petroleum Human Resources Council
of Canada has repeatedly issued well researched
labour market information reports indicating as
many as 9,500 oilfi eld workers are needed by 2015
to fi ll positions due to industry growth and retire-
ments.
Cutting operational grants will also lead to
program reductions as educators scramble to keep
the lights on and their heads above water.
At the same time as the government is cutting
back on operational grants, they have committed
$500 million over the next three years to build new
schools and modernize a slew of others.
Why not properly fund existing colleges and
universities today and prevent hundreds of valued
employees – voters – from being laid off through
no fault of their own?
Under the leadership of Premier Alison Red-
ford, Alberta teachers won’t get any pay increase
this year. Th ey are not in the same camp as public
servants, doctors, and other health care workers
who are hardly punished by the salary freeze.
Some austerity program eh? It’s on all the
backs of colleges and universities where companies
from all sectors look to hire graduates to meet their
recruiting needs in a competitive job market.
To add insult to injury, Alberta plans to bor-
row $4.3 billion in the 2013-14 budget to pay for
infrastructure projects.
How about a couple of extra mere million
for Lakeland so they can fi nally build that Petro-
leum Centre that trains the workers who feed the
economy and the coff ers of Alberta?
What is pathetic about the budget is the
feigned surprise of the government, dating back at
least a year, to widening price diff erentials due in
part to well-publicized pipeline access issues and a
growing U.S. supply of oil.
Th e 2013 forecast price for conventional oil
(West Texas Intermediate) is $92.50 a barrel and
$68.21 a barrel for bitumen (Western Canada
Select).
Th e Redford government also needs to share
the pain of its mismanaging the province’s fi nances.
Here are other free pointers for the premier:
How about cutting the salaries of our well-paid
civil servants, but do it without layoff s?
How about diversifying the economy and stop
counting your chickens before they hatch on pro-
jected oil and gas royalties? How about an aff ord-
able tax hike on corporations?
How about the premier and elected MPs quit
wasting million of dollars on overseas travel jun-
kets? Invite the world here instead.
How about not fi nancing the province on a
credit card if you can’t aff ord operational grants to
colleges and universities?
Redford’s budget axe misses target
PIPELINE NEWS May 2013 A9
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Jacksonville, FL. – Saft, a leading
designer and manufacturer of high
technology batteries for industry, has
been selected by Cowessess First Na-
tion (CFN) to design, produce and
install a battery energy storage system
(ESS) including two Intensium Max
20E lithium-ion battery containers as
part of the High Wind and Storage
Project near Regina.
Th e French company’s lithium-
ion batteries are used in applications
from weather satellites and U.S. Army
ground combat vehicles to “smart grid”
applications in train stations.
Th e Regina project is the fi rst
wind power application for Saft in
North America. Th e grid-connected
ESS system will help optimize re-
newable wind power performance by
increasing reliability and decreasing
volatility by as much as 70 per cent
over the 15-year lifespan of the system.
Each Li-ion ESS includes a state-of-
the-art, 400kW power conditioning
system for use in conjunction with an
800kW utility scale wind turbine.
“Th is project builds on Saft’s
earlier successes integrating energy
storage batteries with wind generation
and will demonstrate the benefi ts of
lithium-ion energy storage in enhanc-
ing the value of wind energy,” said
Jim McDowall, business development
manager at Saft’s Energy Storage Sys-
tems Business Unit in Jacksonville, Fla.
in a Nov. 7, 2012 press release.
Th e system is designed to harness
intermittent wind power and provide
a more continuous and predictable
output for both on-grid and off -grid
applications. Th e High Wind and
Storage Project will also reduce green-
house gas emissions, reduce electrical
production costs, provide more renew-
able power to the grid and potentially
lower electrical rates since the battery
can be charged during off -peak periods
and dispatched during periods of peak
usage.
“Th is is an extremely important
project that will increase the amount
of renewable generation we can deploy
on the grid,” said Cowessess Chief
Grady Lerat. “It’s critical tohave Saft
providing state-of-the-art technology
to make the High Wind and Storage
Project successful.”
Saft has demonstrated that
this base system can perform wind
smoothing and achieve a maximum
ramp rate of ten percent per minute of
the rated power output of the 800kW
wind turbine while also providing up
to 400kwh of peak shaving capability.
Th e fl exibility and scalability of Saft’s
solution also allows the energy content
to be increased in 124kwh increments
up to 992kwh if additional peak shav-
ing capability is desired.
Th e installation began operations
in April 2013.
Page A3About half the cost
is the battery system,
and the other half is
the wind turbine. Lerat
said it was about “$4.6
million in iron, if you
will,” Th e rest was in
engineering and other
expenses.
Cowessess First Na-
tion is the 100 per cent
owner of the project.
Cutting edgeLerat said they want
to prove out a system,
carving out a niche in
fi nding a sustainable
way to make more wind
power available. Th is is
by smoothing out the
power production cycle
and storing energy.
“It’s on demand, if
we have enough stor-
age,” he said.
“It’s cutting edge.
Th is is the fi rst of its
kind in North America,”
Lerat said.
He sees promise in
such technology helping
northern communi-
ties which used diesel
generators for backup
power.
Lerat keeps things
in perspective, noting,
“Th is may or may not
be the system that can
work.”
“Down the road
we’re hoping it will lead
to better things,” Lerat
said.
“Th e future’s there.
We have to go out and
get it.”
Saft lithium-ion battery energy storage system
“The future’s there. We have to go out and get it.”
- Chief Grady Lerat, Cowessess First Nation
A10 PIPELINE NEWS May 2013
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Page A4“We wanted one of the leading technologies to
get the package in the size needed, from a reputable
company, meeting all the performance requirements
we established.
Th e potential for lithium-ion batteries costs to
go down in the future due to mass production was
another consideration.
“Th ere may actually be a market for the batter-
ies for hybrid vehicles.”
Th e idea is that in the future, batteries from
hybrid vehicles that no longer meet the capability
of the vehicle could be repurposed in this sort of
less-demanding application.
“It’s not necessarily about picking the leading,
or best, battery technology. Th ey’re all in a state
of development. What looks like it was best last
year might not look like it’s the best choice next
year. What’s more important for us is moving the
benefi ts of energy storage, combined with variable
energy resources like wind, and the integration
strategy and power strategy to make them work
eff ectively together.”
Solving the riddle of bulk energy storage is
dear to Hill’s heart, storing many megawatt-hours
of energy storage. One of the projects the SRC
is working on includes using compressed air for
energy storage.
“Th e most important thing is to prove the ben-
efi ts of energy storage.”
Th e wind turbine is rated at 800 kilowatts.
Th e “name plate capacity” of the battery system is
775 kilowatt hours. Hill said, “We have 600 useful
kilowatt-hours under that system.”
“Th is is a very good depth of discharge com-
pared to most batteries.
“You can produce 600 kilowatts of power for
one hour only. Th at’s not producing 800 kilowatts
of its potential. But if it was averaging 260 kilowatts
from the wind turbine, in that case, we would be
able to run two-and-a-quarter hours at the average
output capacity of the wind turbine.”
Page A11A large crane li s the blades in place.
Photo courtesy Saskatchewan Reseach Council
SRC acts as project manager, service provider and collaborator
PIPELINE NEWS May 2013 A11
Page A10Th at’s not enough to make up for the lull overnight, when the wind typi-
cally dies down. “Th is battery does not fi rm up the wind energy and turn it
into something that looks like a base load. It won’t turn it into a continuous
output. What it does is it makes this variable energy source
something that can be very manageable by utilities in
terms of the generation they have to manage. It improves
the predictability of the power output. If you have a wind
farm, and you have some energy storage tied to it, and the
wind dies off , you can all of a sudden notify the utility, ‘Hey,
we’re giving you advance notice our system is coming offl ine
in 30 minutes, or one hour, or whatever it is. We’re going to be
ramping down our power at a controlled ramp rate so we don’t
mess up your grid.’
“It makes it manageable. It gives the utility time to bring on oth-
er generation sources to fi ll that gap. It removes the
volatility and it makes it easier
to schedule
and manage your entire power generation mix.”
“We’re trying to establish there are benefi ts to tying this to variable en-
ergy resources like wind. Otherwise, you become very limited in how much
your energy generation mix can absorb in terms of wind and solar.”
SaskPower is aiming for 8.5 per cent wind power. In Europe, wind
power generation is has high as 20 to 25 per cent.
“Even that tends to be a real challenge when they get there,” Hill said.
“A common number (for percentage of wind) is around 15 per cent (where)
it starts to become a real management issue, because your loads are variable.
If you get power generation that’s also variable, things can go badly for you
in terms of matching generation to load.”
Large scale energy storage combined with wind generation allows for
higher penetration of variable energy resources like wind and solar, Hill
explained.
“Th ere may be other benefi ts to the utility beyond simply provid-
ing a more manageable generation mix. We want to explore some of
those things as well,” he said.
In a province that has long, cold winters without a lot of sun-
light, is solar power an option? Hill thinks so.
“Th e cost of photovoltaic (solar) has dropped sub-
stantially, and we do have a lot of sun. We are seeing a
major increase of photovoltaic projects. Th e people who
have typically viewed photovoltaic as something that’s not
going to be viable here, that may not be true. It may be
viable in Saskatchewan.”
“It’s a great story of what Cowessess First Na-
tion is accomplishing. Th ey really have tremendous
leadership, commitment and vision from their
leaders, and support from their entire First Na-
tion,” Hill said.
“As much as we are interested in the
technology development side of things, we
are also excited to be involved in a project
that has potential for economic develop-
ment in Saskatchewan.”
Th e project did have contributions from the provincial and federal
governments. Th e replication model would be diff erent, with multiple
turbines and batteries. Th ey haven’t determined what model is best yet.
This 800 kilowa wind turbine re-cently went up just east of Regina. It is owned by Cowessess First Na on.
A12 PIPELINE NEWS May 2013
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Page A5 SaskEnergy has compressed natural gas refi lling stations
throughout the province, but the one in Weyburn will be a more substantial.
“We’re going to be trucking gas from that station,” Fraser said.
“Th is is a lot bigger. It’s the fi rst large-scale station that’s being put in,” Fraser
said, noting it will be able to fi ll a large semi-trailer with compressed natural gas
in less than three hours. It would take 12 hours at a conventional station.
“We can turn these trucks around very quickly.
Th e company has more than 20 trailers. “We’re building them all the time.
It’s a continual process,” he said.
Th ey are planning to build 30 trailers to run the 14 CanElson rigs in Sas-
katchewan. Logan noted they are going to have 50 modules in service by the end
of the year.
Compresses natural gas station at WeyburnEach loaded trailer has the energy equivalent of thousands of litres of diesel.
Th ere’s a variety of sizes.
CanGas has projects in British Columbia, Alberta and Saskatchewan.
Th ese trailers can also be used as a gas supply in situations where the normal
gas supply may be cut off due to items like maintenance. Th ey can be used as a
pipeline backup to feed gas plants or fi eld compressors.
“We did three of those last fall with SaskEnergy, Fraser said. Th ey main-
tained gas supply during maintenance, he noted.
Similar work has been done in Alberta as well, and CanGas has supplement-
ed a pipeline network in B.C.
Flare gasYou can’t just put any gas in a trailer and then hook it up to a rig to run the
engines, at least not in southeast Saskatchewan.
“Th e issue with gas in southeastern Saskatchewan, particularly the Bakken
gas, is it’s very rich, with heavier hydrocarbons in it. Very rich gas is very diffi cult
to use directly in an engine without some processing to reduce the heavy hydro-
carbons,” Loewen said. “We are in the process of looking at that, but we don’t
have anything in place right now.
In some areas of Saskatchewan, like the west-central area, it’s possible to take
gas directly from the wellhead and use it. Not so in southeast Saskatchewan.
Page A13
Don Baran with IMW In-dustries does some nal prepara on work for the new industrial-sized com-pressed natural gas com-pressor for SaskEnergy north of Weyburn. CanGas Solu ons will use it as its fuelling point to provide compressed natural gas for drilling rigs. This site will hopefully be the rst of many CanGas can draw upon.
PIPELINE NEWS May 2013 A13
One Call Will Supply It All
Page A12 CanGas has captured fl are gas in Saskatchewan. Th at
gas was taken to a gathering system, however, not directly to a rig engine to be
burned.
“We’re hoping this spring to try out a system we’re developing right now,”
Loewen said. Th ey are still fi nalizing equipment for drying the gas.
Some “light conditioning” is needed at certain locations.
Th e ultimate goal is to capture gas at a wellhead, do some light condition-
ing at the wellhead, compress it into a truck and bring it to a rig for consump-
tion.
Loewen said, “In an ideal world, that’s what will happen.”
Looking beyondAsked about plans to off er natural gas conversions to drilling companies
beyond CanElson, Loewen said, “As long as they have the right motivation,
we’re very interested in bi-fueling the rig. Our plan of attack is to go to the
producers and convince them of the benefi ts, and have the producers suggest
strongly to the contractors they would prefer bi-fuel rigs and these are the guys
to work with.”
Logan said, “As an early adopter of bi-fuel CanElson currently holds an
advantage. Ultimately drillers will be judged based on their comparative ability
to cost-eff ectively maximize the amount of diesel displaced by natural gas.”
But as for CanGas, the senior management of CanElson have directed
Logan to build CanGas as a stand-alone business.
“We have a great opportunity to use CanElson as a beta test site, and we’ve
learned a tremendous amount about what works and doesn’t work, and refi ning
our business model. Now, post-breakup, we’re going to start coming out and
doing business with other people under terms that will be mutually benefi cial.”
Ideally, they would like to see new rig engine packages built with their
bi-fuel system. So far, they’ve been converting operating rigs in the middle of
winter. Logan said, “We’re saddle training running horses. It’s not optimal.”
Since the rigs have been busy, he noted, “We’ve been kitting them up on
the fl y, trying to be as minimally invasive as we can.”
So far, seven rigs have been converted, including the four already done in
Saskatchewan.
Th ey see bi-fuel rigs as a selling feature for drillers.
“CanElson got a nice new contract based on bi-fueling a four-rig package,”
Logan said.
In other words, bi-fuelling their rigs has already shown results for CanEl-
son.
“We’ve lined up two contracts for CanElson, and potentially a third, in a
pretty diffi cult environment right now,” Logan said.
Explaining the diffi cult environment, Logan said, “It’s tough to get long-
term commitments from producers for new rigs. Th e fact they have bi-fuel
capabilities and a bi-fuel culture has allowed them to win contracts.”
Who gets the savings from substantially less expensive natural gas as fuel?
“Th e whole idea is to generate savings. Right now, In the CanElson model,
it’s shared between the producer and CanElson. When we start working
outside of CanElson, it will be shared between ourselves (CanGas) and the
producer. We think that’s the model that has legs.
“Th at way the producer is incented to do two things: maximize displace-
ment, and minimize trucking costs, all sorts of ancillary costs that we can help
manage and they can help manage together. If we don’t work together, there’s
no savings.” Page A14
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Page A13 A producer with their own gas could use it to partially
fuel rigs drilling for them, displacing much-more expensive refi ned diesel. Ironi-
cally, it’s a model not far off from the 100-mile diet, consuming locally produced
food, except in this case, producers would be using locally produced gas.
“We’d love to talk to them about creating an industrial gas CNG station at
the tail end of their gas plant, and we’ll sell gas to anyone and everyone in the
region as well,” Loewen said.
Logan said, “We’ve been refi ning our in-the-fi eld model with CanElson to
be sure we can deliver profi tably. In the next couple months, we’ll be putting our
marketing hats on.”
Loewen said they do have a natural gas source now at Weyburn. Th ey would
like other sites in Saskatchewan. In the southeast, he noted they would need at
least two or three sites, and possibly as many as four or fi ve, but not much more
than that. Weyburn is a good site, but at the very western edge of the Bakken
development and high-activity area, it’s a long ways from Redvers, for instance.
Trucking costs are an important factor, they note. “If you mismanage it, it
will sink you,” Logan said.
Th e other critical factor is volume – using as much of the fuel on a trailer as
possible without running out, all the while you don’t want to return trailers for
refuelling that still have a lot of compressed natural gas on board.
“Part of our business is the logistics side – trading out that trailer when it’s
near-empty, and you’re not leaving too much gas on it, and you’re not leaving the
rig burning 100 per cent diesel because the new trailer hasn’t been able to get
there,” Loewen said.
In late 2011, the industry saw diesel shortages due to a fi re at the Regina
refi nery. Having diversity of fuels somewhat lessens the dependency on diesel.
However, while natural gas usage will reduce diesel consumption, a bi-fuel rig’s
engines cannot run on natural gas alone. “You need diesel in the mix,” Logan
said.
Loewen said probably at least 30 rigs in Canada and another 50 rigs in the
United States have been converted to run in bi-fuel setups with natural gas. But
they are usually connected to pipelines. Loewen said, “What’s unique about what
we’re doing is all the other rigs in Canada are pipeline connected. Th ey don’t have
the gas trucked into their rig. Th ey’re taking it off a pipeline. Th at’s great if you’re
on a pad site where the rig’s going to be there for six months. But for 95 per cent
of the drilling done in Western Canada, you can’t do that. Th e only alternative is
trucking gas in.”
One other benefi t of having an infrastructure set up to compress natural gas
for rig usage is that it will allow producers to convert their fi eld vehicles to run
on natural gas as well. From producers whose fi eld operators will typically put
hundreds of kilometres on their pickups each day, this can be a real savings. In
this case, 100 per cent displacement is possible. All the major manufacturers are
coming out with CNG trucks that can run 100 per cent gasoline or 100 per cent
natural gas.
Trucking logistics crucial
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Carlyle – John Kadar, operations manager for CanGas Solutions, has his
work cut out for him during this spring’s breakup. He’s overseeing the conver-
sion of four CanElson Drilling rigs in Carlyle to burn both diesel and natural
gas.
“We tie into the engine central control system. We talk to it via our com-
puter system and we monitor the engine exhaust temperatures, vibration and
high and low temps,” he said.
Th e engines, originally confi gured to run on just diesel, will use a diesel-
only fuel mixture at both the low and high ends of the power band. In the
middle, it runs a mixture of diesel and natural gas.
“Diesel has a higher BTU than natural gas,” Kadar said, explaining why
diesel is needed at higher RPMs.
“Th is kit is a dual fuel bank. It’s a V-engine, and we have to control both
sides.
Th e mud pump engine on the rig in question is a V-2000 Detroit. Th ey
convert the mud pump and generator engines on the rigs, but not the fl oor
engine.
“We don’t do the drawworks engine. It’s not a big consumer of fuel,” he
said. Much of the time the drawworks engine is running at idle.
“We’re doing gen sets, and pumps, and in the future, top drives as well. Rig
10 has a top drive.
Rigs have diesel tanks as part of their design. Th e compressed natural gas,
however, is stored on a semi-trailer. It has to be connected by an overland hose,
protected by a drive-over ramp. If the lease is too muddy and it’s not matted,
there may be times when running natural gas is not an option. One doesn’t
want to take a chance with the connecting hose being damaged due to soft ter-
rain. So far, it hasn’t been an issue.
Converting a drilling rig to burn natural gasTypically the trailer will be 50 metres from the well.
Th e natural gas fuel line enters the mud pump shack. From there, another
line goes overhead to the gen set in another shack.
“We have to meter all the gas that comes in,” Kadar said.
Th eir system reduces the pressure of the natural gas substantially before it
reaches the engines.
Th e gen set confi guration is already in its second generation, with more
computerized controls and improved electrical harness.
Th e system is designed for wireless control. “We can monitor our system
through cell or satellite and control it from a chair,” Kadar said.
It takes two to three days to do an installation per engine, about a week to
do both the mud pump and gen set with three people working on it. One is a
pipefi tter, the other two are technicians.
“It’s better for the environment. It’s cleaner burning fuel. It’s the responsi-
bility of big business to improve how we do business. How do we get natural
gas prices back up? Either we put it in a boat, or come up with new ways to use
it.”
A16 PIPELINE NEWS May 2013
Carlyle – In March 2012, 27 Saskatchewan employers took part in recruit-
ment fairs in Dublin and Cork, Ireland. A substantial number of those busi-
nesses were in the Saskatchewan oilpatch. Th e employer-driven mission that
included both Premier Brad Wall and Advanced Education, Employment and
Immigration Minister Rob Norris, is still seeing results.
On April 15, two more Irish tradesmen came over to Canada for work.
Pipeline News encountered them on April 19, in the muddy yard of CanElson
Drilling in Carlyle, assisting in the conversion of drilling rigs to run on both
diesel and natural gas.
Tommy Owens and Aodhan Brown both left
jobs in Ireland to come to Canada.
“I’m going to be a roughneck. Originally I was
a mechanical design engineer, designing medical
devices,” said Owens. “I wanted a change, a change
of scenery.
“I left a good job at Randox Laboratories of
four years.”
Owens has his professional certifi cation as
engineer, but he has chosen to now work with his
hands.
“I feel like putting it on the back burner for a
while. I can always go back to it,” he said.
Unattached, the 30-year-old Owens came to
Canada on a two-year work visa with his friend,
Brown. Th ey came over the pond at the same time,
and are now staying at Moose Mountain.
Brown, 22, said, “I’m a hydraulic fi tter, a diesel
mechanic.”
He has his trade certifi cation, having completed
his apprenticeship two years ago.
“At home you stay on and go to college, or you
go to work. Th e status is not good for apprentice-
ships,” he said.
Asked why, Brown said, “Th e recession. Th ere’s
no jobs. It’s the whole of Europe.”
He attended one of the job fairs Saskatchewan
took part in.
“It was brilliant,” he said, but then found disap-
pointment in the follow-up. He had no replies from
job inquiries, not hearing back from the prospective
employers. However, they found another way.
Owen’s brother was already in Calgary, where
he met someone from CanElson Drilling.
“At home, there’s a lot of people out of work,”
Brown said.
Having been in Canada for less than a week,
he noted, “Th e country is very friendly. We’ve been
looked after since getting here.
His personal drive was evident. Brown noted
how a person in Ireland could remain in a stagnant
position for a career. He wants to work and advance.
“We’re not here for a party. If you come to
Canada, you can make something out of it.”
Irish arrivals Irish arrivals spawned by 2012 spawned by 2012 job fairjob fair
Seen in red, Aodhan Brown is only 22 years old, and he’s already completed his mechanic appren ceship two years ago. Brown is now working with CanElson Drilling. Here, he’s learning how to install natural gas conversion kits onto drill-ing rig generators and mud pump engines. Brad Jones, eld technician with Can-
Gas Solu ons, assists.
Tommy Owens’ brother met a se-nior person with CanElson Drilling, and now he and his friend, Aodhan Brown, have come to Canada to work on drilling rigs. Owens has put his career as an engineer on hold to be-come a roughneck.
PIPELINE NEWS May 2013 A17
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Alternative energy has to make sense
By Brian ZinchukRegina – While “alternative energy” has become a global buzzword, in Saskatch-
ewan the reality is, if SaskPower isn’t doing it, it’s not going to happen. However, for many years the Crown corporation, which relies primarily on coal, hydro and natural gas for its power generation, has been adding alternative energy sources to the mix. We now have wind turbines and cogeneration plants scattered throughout the prov-ince. Additionally, one of its most signifi cant eff orts is to turn “dirty coal” into “clean coal,” being the fi rst power utility in the world to use carbon capture technology on a commercial scale.
On April 4, SaskPower President and CEO Robert Watson spoke with Pipeline News regarding the Crown’s alternative energy initiatives. His key message: Sask-Power wants alternative energy, but it has to make economic sense.
Pipeline News: How important is alternative energy to SaskPower’s plans?
Robert Watson: It’s important to SaskPower and it’s important to our
customers. We have growth in the province over the next 10 to 40 years and
it’s going to be unprecedented. We need to fi nd energy that we can supply on
a reliable, aff ordable basis to our people. We have the traditional energy that
we’re looking to maximize. We do have some hydro in the north – true run-of-
the-river – with less environmental impact, that we’re looking at and want to
develop.
We will be adding wind power to the system as our baseload increases.
We want to get to the 8.5 per cent level, which is the industry best practice for
wind power.
Biomass – we have the 36 megawatt Meadow Lake facility that we’re
looking forward to coming online (valued at approximately $160 million). And
we’re looking at any sort of biomass, although it becomes limited because of
the fi bre you need to do that.
Another thing we are very encouraged about is geothermal in the south-
ern part of the province, with anywhere from two to fi ve megawatt facilities
throughout the southern part of the province. We’re looking at an initial test
site for that. Page A18
SaskPower president and CEO Robert Watson explains that SaskPower wants alterna- ve energy, but it has to make economic sense. File photo
A18 PIPELINE NEWS May 2013
SEWEURODRIVE
www.kelro.com
You build the plant, we buy its power Page A17
Last but not least, for alternate energy. Th ere’s
no real solar capacity in the province yet, however,
as the technology advances, it would probably
become more advantageous for us to have a look at
it. Right now we’re still at a winter high-load for
the province. Unfortunately, it gets real cold and not
too light in the wintertime here and therefore solar
would be diffi cult as a main baseload for us. It could
be something possibly in the future for comple-
mentary supply.
PN: How much of your total generation capacity do you see from alternative energy in our power mix over the next 10 years?
RW: Th at’s a real good question. Right now,
The Boundary Dam clean coal project was announced in April 2011. This year, the project will be commissioned. SaskPower president and CEO answered ques ons at the ini al announcements. File Photo
we’re about 55, 54 per cent comes from coal, about
20 per cent from hydro, about 20 per cent from gas,
and the rest is a mixture. Over the next 10 years we
won’t be adding much more new capacity because
we’ve already got new capacity lined up. We’re
adding 260 megawatts of gas generation. We will
be adding more wind power into the grid to get it
up to the 8.5 per cent. And we will be adding more
hydro to the grid. We’ve got a 50 megawatt facility
at Elizabeth Falls that we will be looking at devel-
oping. It’s a fair-sized run-of-the-river.
We’ll be adding on a marginal basis over the
next 10 years. We’ve already got lined up all our
capacity right now.
PN: What projects are you doing in this re-
gard? What’s next on the agenda?RW: For the longer-term aspect, part of our
alternate energy capacity is our Boundary Dam
carbon capture facility, where we’ll be capturing 90
per cent of the CO2. It’s the world’s fi rst full-pro-
duction carbon capture facility. Th at’s the equivalent
of taking approximately 250,000 cars off the road.
Th at’s our banner, fl agship facility that we plan on
making successful and showing the world you can
be responsible in burning coal and to make it as
clean as possible.
PN: Can you tell us about the Red Lily project at Moosomin, how is that working out?
RW: Th e Red Lily project is in co-operation
with Algonquin Power. It’s a fantastic facility. It’s a
wind facility and a great one.
PN: What about SaskPower wind projects? Or are you going to pursue a model of purchas-ing power rather than in-house when it comes to alternative energy?
RW: Our next big one is Chaplin, with 170
megawatts coming on, a wind farm near Chaplin.
Th at was done in an open, competitive bid. We will
look at doing one or two open competitive bids in
the future.
(Chaplin’s) to be up and running in 2017.
Chaplin’s between Regina and Swift Current.
It’s a great wind area, down there, a sustainable
wind area.
It’s a private project. A private company is
building it, and we’ve signed a long term power
purchase agreement with it.
We have a model right now where, essen-
tially any new power generation, we’re looking for
partners. If it’s something we’re rebuilding on one
of our existing plants, or adding onto one of our
existing plants, then we’ll do that ourselves. We
don’t build anything. Everything’s done by outside
parties. We just become project managers. We don’t
have contractors we employ, all of it’s done by pri-
vate contractors.
For wind, we decided to do that entirely by
third parties, by RFQ and third party bids. We’ll
agree to a long-term purchase agreement with
them, and they go out and fi nance the wind farms.
With gas plants, we’ve done the same. We’ll
look for private partnerships for gas plants. Either
a private company builds it, and we’ll sign a long-
term contract, or we will be the project manage-
ment and build it with SaskPower. Page A19
PIPELINE NEWS May 2013 A19
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Page A18Th e last wind RFQ we did was an excellent
model. We’re looking for this much capacity, tell us
where you want to build it. We give them guide-
lines, of course, because we want them fairly close
to our transmission facilities. You tell us how much
you want to charge us per megawatt-hour on a
long-term contract, and we’ll sign with you. Th ey
build it. Th ey fi nance it, and we sign a long term
contract.
PN: Th is is all on competitive rates? You’re not doing feed-in-tariff s, like Ontario did?
RW: No feed-in. It’s competitive rates. It’s a
completely open and transparent bidding model.
We’re not suggesting we follow Ontario’s
model, no. We fi nd that an open and competitive
process for gas plants, wind farms and geothermal
and most of those projects can get good, long-term
pricing for it.
PN: Regarding geothermal, what are you talk-ing about?
RW: It’s still in its infancy stage. We’re talking
about doing a test for a geothermal site somewhere
in southern Saskatchewan. Th e geology in the
southern part of the province is supposed to be very
good for geothermal. We’re interested in trying a
test site down there to test that out, quite frankly.
PN: Can you tell us about the recent Cow-essess First Nation wind project?
RW: Th e Cowessess First Nation is doing wind
power with storage. We’re supporting it, of course.
It’s their project. It’s better for them to talk to
you about it. It’s a good project. We said we would
take the power from them.
PN: Alliance Pipeline’s NRGreen cogen is one recent source of additional power for Sas-kPower. Do you see more co-gen opportunities coming like this in the future? What about small scale co-gen, such as SAGD projects or fl are gas?
RW: We’re quite open to all that, absolutely.
Our model is, we’ve got to be very responsible do-
ing price comparisons. We’ve got to be looking for
the most reasonable price to purchase, build-to-buy,
or build-to-own power as we possibly can. It’s got
to be responsible. Th at’s why we don’t do feed-in-
tariff . Th at’s why we don’t supplement any power re-
quirements. We look for competitive power to have
built for us, or to have somebody build and we buy
as competitive as possible. Th at’s our base model. So
fl are gas, cogen, cogen in a facility like potash, we’re
completely open to that stuff .
PN: When buying bulk power, what are we looking at, ballpark, for kilowatt hours?
RW: We go for a range. Th ere are two things
we look at.
First of all, we look at, do you need power right
now? You don’t want to buy power too far ahead
of time, because then you’re paying for it and not
using it. One of the aspects of that is unfortunately,
when you’re building a plant, it comes on in lumpy
stages. You add 300 megawatts on in a lump. But
you need to have it over the next two years, so you
have to do it that way.
We look for, in the future, to de-risk our supply.
Gas, we’re going to add to the fl eet to protect our
coal fl eet. We’re going to add hydro to the fl eet.
We’re going to add geothermal, small amounts, and
run of the river.
We look at both aspects, diversifying the fl eet,
and cost aspects.
We have North Battleford (Northland Power)
coming in in the next couple of months. We like to
run about 15 per cent extra capacity into the grid
for emergency reasons, for peaking and stuff like
that. When Northland comes on, it will take us up
to 20 per cent, but it will quickly come down to
what our target is.
Th ere’s requirements. We belong to the North
American Energy Group, which has very specifi c
requirements that you have to have to interact with
other jurisdictions. It’s very strict, so we have to pay
attention to that.
January 2013 we had another peak, about 3,400
(3,379 MW to be exact) megawatts peak.
PN: Is there anything else you would like to add?
RW: We have a good plan for at least the next
10 years, and we’re putting together our thoughts
for what we need for the next 40 years. We will be
looking at all options in order to ensure we have the
power at an aff ordable price for the province.
SaskPower president and CEO Robert Watson
A20 PIPELINE NEWS May 2013
A larger Kramer Cat to prowl in Battleford
By Geoff LeePipeline News
Battleford – It’s too early to order a grand opening cake, but Kramer Ltd.
president and CEO Tim Kramer is celebrating the ongoing construction of the
new Kramer Caterpillar dealership in Battleford.
Th e 40,000 sq. ft. complex is expected to be completed this fall and will
replace the existing dealership located on Highway 4 in North Battleford.
“We’ve always had high expectations when we do buildings. Hopefully,
we’ll be there by the fall,” said Kramer by phone from Regina.
Th e existing location acquired in 2006 has already run out of room to
handle growth in Kramer’s parts, sales and service operations.
“We’re growing. Th at whole northwest has been fantastic,” said Kramer.
“We’ve been very lucky. Oil and gas has been part of it, and agriculture is
also strong.”
Kramer Ltd. operates seven Caterpillar dealership locations in Saskatch-
ewan that sell and service a range of equipment for the agriculture, lift, energy,
truck, heavy construction, mining, and compact construction markets.
Th e company also operates Kramer Rents – the Cat Rental Store in Saska-
toon and Regina.
Th e North Battleford dealership was initially
acquired to serve the agriculture market, but as
soon as the sign went up, so did the demand for the
Caterpillar line of construction equipment.
It’s the same story told at some of Kramer’s
other locations in Saskatchewan, as the province’s
economy is fi ring on all cylinders.
“Th e Kramer Kindersley branch was originally
opened as an agriculture store, and the fi rst thing
that comes rolling in is a D8,” said Kramer.
“Th at’s just how it is. As soon as we put a sign
up, people just start bringing in their equipment.
Th ey show up because we’re available.”
Kramer has benefi ted from strong growth in
construction activity in the Battlefords.
Page A21
Ledcor Construc on Ltd. is building this new Kramer Cat dealership in Ba leford along Highway 16. The new 40,000 sq. . facility will be an economic generator with new high skilled employees in demand for sales, parts and service opera ons. It will have service road access from Highway 4 in Ba leford.
The Kramer Cat dealership in North Ba leford sold and serviced a ton of Cat motor graders for snow removal and construc on jobs this past winter. Heavy construc- on sales consultant, Jim Barks is looking forward to
reloca ng this fall to a newer and larger facility in Bat-tleford.
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Page A20Th at growth is refl ected in building permits valued at nearly $6 million
that were issued by March 2013 in North Battleford. Th is compares to approxi-
mately $7 million for the same period in 2012.
Also helping to drive sales of Cat equipment is robust oil and gas construc-
tion activity in the region.
Husky Energy, for example, is constructing a 10,000-barrel per day steam
assisted gravity drainage project at Rush Lake, just north of Paynton about 70
kilometres to the east.
Th e strong regional economy is supported by a population gain of 10.3 per
cent for Battleford in the last census in 2011 and a 6.3 per cent increase for
North Battleford from the previous population count in 2006.
“We should have been there 25 years ago,” said Kramer about the Battl-
eford area.
“We’ve been really fortunate. We’ve got a really fantastic team there.
Th ey’ve adapted well from agriculture to heavy construction.
“Our employees are looking forward to the new facility. It’s a real boost for
morale, and it’s a real boost for the morale of our customers.
“Th ey’re the ones who are going to win with our new Battleford facility.
Customers have to win every time,” added Kramer.
Th e new dealership will be ideally located to attract agricultural and indus-
trial traffi c from all points on the compass serving the Battlefords.
Th e facility is being built by Ledcor Construction Ltd. on a 153-acre parcel
of land with Highway 16 frontage, north of the Battleford West subdivision.
“I’m a land developer now and I don’t want to be,” said Kramer with a
laugh.
“I only need about 30 acres, but I had to buy the whole thing to get the
piece that I wanted.”
Th e site will be accessed from Highway 16 from the west or from a new
service road that will connect the facility to Highway 4 in Battleford.
“We’re developing it. We put the road in and the water. We’re going to
make it into an industrial park,” said Kramer.
Th e project is well timed with the completion
last August of the twinning of Highway 4 through
Battleford, south of Highway 16 to the Battle River
Bridge.
Th at highway accommodates upward of 7,100
vehicles per day.
Kramer borrowed from the real estate mantra
of location, location, location to explain the reasons
for selecting the Battleford property for the new
dealership.
“Exposure, exposure, exposure,” said Kramer.
“You can’t beat the location.
“Th e new Kramer Cat dealership will be the
fi rst thing people see coming in from the west.”
Th e new facility will include a huge service
department, a parts department and some offi ce
space along plenty of room outdoors to display and
park equipment.
“We’re not much for showrooms. Our products
are sold from the dirt,” said Kramer.
Kramer Caterpillar owes a lot of its success to
servicing what it sells including to local customers
such as Strike Energy Services Inc. in Battleford
which operates a fl eet of Cat construction equip-
ment.
“Parts and service sell everything. Without
service you can’t go anywhere,” said Kramer.
“Customers are demanding more and more. As
the equipment evolves and becomes more sophisti-
cated, the local guys won’t be able to fi x it. Custom-
ers will have to bring their equipment to a dealer.”
Kramer Ltd. doubled the size of their Estevan
dealership in 2012 and their Swift Current facility
in 2010. Page A21
These Cat skid steers are popular sellers among the construc on and industrial equip-ment o erings at the Kramer dealership in North Ba leford. The dealership is relocat-ing this fall to a new 40,000 sq . facility in Ba leford.
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Page A21In 2010, Kramer built a 35,000 sq. ft. addition to its Regina service facility
where they provide environmentally friendly air fi ltration cleaning and indus-
trial radiator services.
Kramer Ltd. represents numerous other product brands and manufacturers
including Agco (RoGator, TerraGator and SpraCoupe application equipment
plus Challenger tractors) and Bourgault (precision seeding systems).
Th ey also sell Mitsubishi, JLG, Lexion, and Master Craft equipment in a
diverse product mix.
“Th e market is moving. If you don’t move with the market you die,” said
Kramer.
“Whatever our customers tell us to do, that’s we do.”
Kramer anticipates the new Battleford dealership will help to boost the
local economy.
“Absolutely, we’re going to have a huge impact. I am sure we will do our bit.
Battleford has been very good to work with,” said Kramer.
Kramer Ltd. bought the land in 2011 when Chris Odishaw was the town’s
mayor and a leader who Kramer called “an interesting young man.”
“He was a real promoter,” said Kramer in reference to a pro business at-
titude that sold him on the decision to acquire the land in Battleford.
“We’re fortunate. Everything’s humming along like it’s supposed to be.
We’re lucky. It’s all luck,” said Kramer about being to grow along with the
region.
“Now that we’re there, business has really picked up. Everybody’s expand-
ing. With all the oil and gas business going in that area, it’s humming.”
Th e new dealership will also be hiring a lot of new employees in a com-
petitive market for skilled labour.
“Th at’s a challenge for us. We’re growing so darned fast. Acquiring the
people we need and developing the footprint to match – it’s really a struggle
sometimes,” said Kramer.
“Our company is always on the lookout for certifi ed journeyperson techni-
cians. We also partner with SIAST through their apprenticeship program.
“Our recruitment eff orts have taken us around the world in search of
the highly skilled workers needed to continue to build our qualifi ed team at
Kramer.
“Our ‘Huge Careers’ campaign and our new employment website will help
us with that challenge.
“Expansion of our facilities and team members will continue to play a part
in the overall well-being of the communities in which we live and work. Th e
future looks bright for all of us,” Kramer said.
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PIPELINE NEWS May 2013 A23
By Geoff LeeBonnyville, Alta. – It’s not often you get to
make a second fi rst impression, especially if the
original one still works in your favour.
Bonnyville show catering to exhibitorsOliver who is also the executive director of the
chamber.
“We learned there are so many people that
travel to see the show.”
At the 2011 show, more than 68 per cent of
exhibitors also originated from another region.
“We have electronic ‘invites’ for our exhibitors
that are going to be customized for them. Th ey can
send them to their customers to invite them to at-
tend the show as well,” said Oliver.
Page A24
Co-chairs of the 2013 Bonnyville & District Oil and Gas Show, Tanya Oliver, le , and Robyn Ducharme, are ca-tering to exhibitors’ needs based on feedback from the 2011 show. This year’s show will be held June 19-20 at the Centennial Centre in Bonnyville.
Th at’s the challenge for organizers of the 2013
Bonnyville & District Oil and Gas Show who are
going all out to provide exhibitors with an even
bigger bang for their buck based on feedback from
2011.
“We’ve got high expectations. We did, I think,
a fantastic job in 2011. It was our fi rst show. We
defi nitely got a lot of great feedback,” said event co-
chair Robyn Ducharme who is also president of the
Bonnyville & District Chamber of Commerce.
“We are taking care of the areas our exhibitors
and attendees told us we need to focus on.”
Th is year’s show will take place June 19-20
inside and outside the Centennial Centre in
Bonnyville with lots of improvements in store.
Tweaks are being made to everything from
registration, networking opportunities and shuttle
services to increasing the number of quality visitors.
“We are absolutely taking care of all of those
concerns,” said Ducharme.
“We will defi nitely be looking for feedback
again this year to see how all of that ended up
working out.
“I think our biggest focus is absolutely getting
the number of attendees increased. Last time, we
had just over 1,200 attendees. Our goal this year is
to double that to 2,400 attendees.”
One of the visitors could be Albert Energy
Minister Ken Hughes, who has been invited to at-
tend the show and banquet.
Organizers are partnering with the JuneWar-
ren-Nickle’s Energy Group to advertise the show in
their print and online energy publications.
“We’ve also expanded our radio campaigns
to cover most of the province rather than just the
immediate surrounding area,” said co-chair Tanya
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Page A23
All potential visitors who pre-register online at the oil and gas show website will have a chance to win a $3,500 travel voucher.
Organizers have also contracted the services of Conexsys, an event reg-
istration provider of lead retrieval systems, to enable exhibitors to track their
networking contacts.
Exhibitors can pay to use a hand-held scanner to capture unique customer
information from a barcode on identifi cation badges worn by all registered
showgoers.
“Th e bar code is unique to each person and exhibitors can just scan it on
the badge,” said Oliver.
“Instead of having to collect business cards, they can just scan. At the end
of the show, they will get the database of the people they met.”
Th e information will include the person’s name, their company, their posi-
tion, and contact information number among other data.
Changes have also been made to the popular Oilmen’s Room Reverse
Tradeshow.
Th e reverse tradeshow allows exhibitors to discuss business opportunities in
private with representatives from companies such as Canadian Natural Re-
sources, Devon Energy, Husky Energy Ltd., Osum Oil Sands Corp., and Shell
Canada with heavy oil operations in the region.
“We found a lot of exhibitors didn’t know it was happening in 2011. We
are expanding it to two days,” said Oliver.
“Exhibitors will be able to pre-register and pre-schedule their appoint-
ments.”
More booth space is available this year inside the Centennial Centre with
many fi rst time exhibitors onboard that will give a fresh look to this year’s
show.
“We are expanding
on our reach with dif-
ferent companies. Word
of mouth helped a lot
last time,” said Ducha-
rme.
“Just having the
second show, you are
going to have that
much more exposure
and that many more
people talking about it.
Page A25
Osum Oil Sands Corp. will host an evening barbecue recep on for exhibitors, a endees and the media at Moose Lake on June 18, the night before the start of the Bonnyville and District Oil and Gas Show to be held June 19-20.
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Page A24
“I think that’s why we are getting new exhibitors as well.”
Th e show will kick off like it did last time, with an evening barbecue and
social on June 18 sponsored by Osum Oil Sands at Shaw House on the shore
of Moose Lake.
Th e event is open to exhibitors, show visitors and the media with shuttle
bus service provided.
“It was a fantastic barbecue last time. It’s really showcasing the beautiful
Lakeland District that we have here,” said Ducharme.
“It’s a great place to live and raise a family. It enables us to showcase to
these exhibitors from all over the province. What a beautiful area we have.”
Bonnyville is also a good place to do business these days with companies
such as Cenovus Energy, Imperial Oil Ltd, and Osum Oil Sands construct-
ing and expanding heavy oil thermal projects in the region.
Th e show is well timed as the increased oil and gas activity in the area
continues to trigger growth since the last show in 2011.
“We actually had a quite a few success stories from the last show, people
attributing contacts that they made at the show as the reasons why they de-
cided to open new branches in our area,” said Ducharme.
“Th at’s what we’re there to do. We are the chamber of commerce. We are
there to spur economic growth in our area.
“If we get a couple of good stories from a show this size, then absolutely
it’s all worth our ef-
forts.”
Visitors can also
expect to hear up to
four speakers during
two breakfast sessions
and two luncheons
inside the Centennial
Centre.
“Th at’s going to
be something new this
year rather than having
it in the theatre,” said
Oliver.
Exhibitors will also
be encouraged to make use of a new on-demand shuttle service to and from
hotels to allow more visitors to drive and park at the show to boost atten-
dance.
“We did have shuttles last time that were running on a loop that were
very underutilized,” said Oliver.
“Th is year, we have some larger shuttles fi rst thing in the morning. At any
point, an exhibitor can call us for a ride to the Centennial Centre and we will
be there to pick them up right away.”
Oliver and Ducharme both burst into laughter when asked if there was
much work left for their committee to do done before the doors open.
“Th ere’s still lots of details to be worked out. We are still working on get-
ting sponsorships,” said Oliver who interrupted her maternity leave to pitch
in.
“We have opportunities available and we’re working on our programs. It’s
a really big show. Th ere’s lot of stuff to do. Th at’s why I came back early.”
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Lloydminster – Who needs a men’s green jacket when you can play golf for
diamonds as a woman?
Diamonds on the Green is the alluring slogan of the 8th annual PWM
Steel Petroleum Golf Classic organized by the Ladies of the Patch committee.
Th e event will once again be played at the 18-hole Rolling Green Fairways
in Lloydminster on May 24. Th ere will be sponsored diamond earrings at each
hole up for grabs.
Th ose fabulous prizes will be contested by up to 288 women this year com-
pared to 156 a year ago, thanks to a new par 3 format that should put an end to
the perennial waiting list.
“A par-3 allowed to us to include more golfers in the tournament because
we’ve got such a long waiting list each year,” said lead organizer Debbie Hor-
bach.
“We thought we’d try that to see if we could accommodate more golfers.”
Th e count was just over 240 and rising when Horbach was contacted on
April 15.
“We knew that was going to happen because we’ve had such an extensive
waiting list every year and now everybody’s happy that they can get in,” she
added.
Unlike last year, when Horbach headed into the event fresh from a golfi ng
vacation, she admits she will be coming in cold this time around.
“I haven’t had a stick in my hand since last fall. We didn’t go golfi ng this
year, unfortunately,” she joked.
Scores and skill are secondary for all of the players who are motivated to
support the event as a charity fundraiser for the Lloydminster Sexual Assault
Centre that received $25,000 in 2012.
Even more money could be raised this year thanks to a $10 hike in regis-
tration fees to $160 per player and the usual strong sponsorship support for the
cause from oil and gas companies that comes as no surprise to Horbach.
“I think the big reason is that this is the only event that is held for women
that work in the oilpatch,” she said.
“I think that they understand the value that women contribute to the
oilpatch. Th ey are more than happy to contribute and make sure this event is a
success.”
Th e switch to the par-3 format is well timed with the off -season construc-
tion of a new banquet hall at the golf club that can accommodate up to 350
people for large functions such as weddings.
“We couldn’t get more girls before because nobody had a big enough build-
ing to house us for the supper,” said Horbach.
“Th ey put up a new structure out there this year to accommodate that
many people. Everything just worked in our favour.”
Fingers are also crossed that offi cials will have the course ready in time –
weather permitting.
“Th ey can only promise what they can promise. Th ey have to wait for
Mother Nature and hope like heck she co-operates,” said Horbach.
“Last year, there was lots of water, but the weather was warm. We’ve had
snow, we’ve had sleet, we’ve had rain, we’ve had everything.
“Let’s hope for some sunshine for a change.”
Flower power worked for these golfers at the 2012 PWM Petroleum Golf Classic at Roll-ing Green Fairways in Lloydminster. Pictured from le to right are Lana Thiessen, Ten-nille Tiedeman, Katherine Hemsworth and Danielle Morgan. This year’s event will be a par-3 with up to 288 women golfers taking part compared to 156 last year. Everyone is hoping for a repeat of warm, sunny weather for the May 24 toruney. File photo
Diamonds in the rough for women golfers
Lloydminster – Are you as safe as you think? Th at’s the theme of the 2013
North American Occupational Safety and Health (NAOSH) Week, May 5-11.
It’s also a question for employees, employers and the public to ask them-
selves during NAOSH week with the focus on the importance of preventing
injury and illness in the workplace and at home.
According to the Alberta Workers’ Compensation Board, 145 workers in
the province died as a result of workplace injury or illness in 2012.
WorkSafe Saskatchewan recorded 60 workplace deaths in 2012.
NAOSH week follows the annual global Day of Mourning held on April
28 for all workers who have been injured or killed at their place of work.
Th e City of Lloydminster chose to pay tribute to injured or fallen work-
ers during a Day of Mourning ceremony at City Hall on April 26 with fl ags
lowered at half mast and a moment of silence.
NAOSH activities in Lloydminster will be led by Atco Electric and the
Lakeland Regional Safety Committee that are providing workplace safety
information during an open house and free barbecue for the public.
Th e event will be held at the new Atco building at 6202-63 Street on May
10 from 11 a.m. to 2 p.m.
Any local organization or company is invited to participate and set up a
table promoting awareness, products, services and safety related messages.
NAOSH week is now into its 17th year and is celebrated in Canada, the
United States and Mexico to highlight the importance of reducing injuries and
illness in the workplace, at home and in the community.
Th e event is managed by the Canadian Society of Safety Engineering, the
Canadian Centre for Occupational Health and Safety, the labour program of
Human Resources & Skills Development Canada, and the American Society
of Safety Engineers.
Atco Electric to host NAOSH BBQ
PIPELINE NEWS May 2013 A27
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Brent Ma ce, general manager and owner of Northern Truck & Industrial Supplies Ltd. an associate Napa Auto Parts store in Bonnyville, has teamed up with local entrepreneur Eugene Prochinsky to launch B.E. Solar Solu ons Ltd. dur-ing the Bonnyville & District Oil and Gas Show June 19-20. Ma ce stands in front of an Aurora 1530 solar powered LED ligh ng system for o -grid oil eld sites. On the le , is the pole for an EnerGen 1720 solar ligh ng unit for residen- al use. Both units are made by Carmanah Technologies Corpora on.
By Geoff LeeBonnyville – Visitors to the Bonnyville &
District Oil and Gas Show June 19-20 can watch a
new business launch taking place at Booths 534 and
535.
Entrepreneurs Brent Mattice and Eugene
Prochinsky are counting down the days to offi cially
lift off their B.E. Solar Solutions Ltd. their product
utilizes solar energy to power doghouses, outdoor
safety lighting and security trailers.
“We think the product we have is something
that’s going to be looked at quite seriously by many
companies, not only for safety concerns, but for
lighting situations in areas that are impossible to
run grid lighting to,” said Mattice.
“Th e oil show is going to be a good thermom-
eter to feel where we can take this company to. I
have no doubt this is going to be a strong viable
company in the area.”
B.E. Solar will be a separate business for Mat-
tice, the general manager and owner of Northern
Truck & Industrial Supplies Ltd., which oper-
ates as an associate Napa Auto Parts store, and for
Prochinsky, who owns Breday Trucking Inc.
“We want to walk before we run and see what
kind of interest the oil show generates for the com-
pany and really use it as our launch,” said Mattice.
Mattice has been selling solar systems for
recreational vehicles at Northern Trucking while
Prochinksy has the equipment to haul doghouses
into the shop where those initial installations have
taken place.
“We work with Ensign Rockwell and we are
working with some other local service rig compa-
nies,” said Mattice.
Th e idea for a separate business was born after a
service rig manager from Rockwell wanted to know
if Mattice could install a solar panel that would just
run his laptop.
“Th at’s when I suggested ‘why don’t we try to
put a solar system on the doghouse?’ We were suc-
cessful in doing the fi rst one, and we have done 11
so far,” he said.
“When we laid out the benefi ts we thought we
could produce, that became a smart business deci-
sion for them as well.”
Th e solar system generates 450 watts of contin-
uous power to run the lights, coff ee pot, microwave
and a computer, saving the client about $1,500
a month in fuel and maintenance costs to run a
generator.
Page B2
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“We just felt we could put a solar
system on a doghouse to eliminate the
use of running the big generator,” said
Mattice.
A typical doghouse will burn
about 250 gallons of diesel fuel a
month, while solar can be used for
six to seven months a year before the
generator is needed for heat.
“Th ere’s huge savings for a com-
pany, both on the wear and tear of the
generator, and there is also the quiet-
ness of the unit,” said Mattice.
“You can go in the doghouse and
have lunch and not have the roar of
the generator.”
A doghouse solar package in-
cludes three solar panels installed on
the roof, and they are hooked to three
batteries, a solar charge controller and
an inverter similar to an RV installa-
tion.
“We install the system in our
automotive shop so we can bring the
whole unit inside and put it together
in about a day. It’s an eight hour
install,” said Mattice.
“We put an automatic generator
start in the doghouse. With the in-
verter, we tie into the electrical panel
in the doghouse. Everything looks
like a factory install.”
Th e complete system costs about
$9,000, with a payback period over
the fi rst six to eight months of use.
“Th ere are a lot of service rig
companies out there that run dog-
houses. Once they see what we can
do, I’m pretty sure that we’ll probably
get a phone call,” said Mattice about
the sales potential.
Page B3
The yellow components in this solar-powered doghouse include, le , an automa c generator starter and on the right, a charge controller on top of an inverter and three 12V AGM ba eries. On the roof are three solar panels. Photo submi ed
Why run a gen set to power a coffee pot
PIPELINE NEWS May 2013 B3
Page B2All of the solar products to be sold by B.E. Solar are powered by new
AGM (absorbed glass mat) sealed batteries.
An AGM battery has the electrolyte absorbed in a fi breglass mat separator
and no silica gel is necessary.
Th e glass mat absorbs and immobilizes the acid while still keeping the acid
available to the plates. Th is allows a fast reaction between acid and plate mate-
rial.
Th e batteries are perfect for the company’s solar-powered oilfi eld safety
lights that are equipped with motion sensors. Called the Aurora 1530 or the
1720 EnerGen residential light is made by Carmanah Technologies Corpora-
tion.
Th e 1530 is ideal to light up lease sites or disposal sites or any remote
facility off the power grid. Th e solar panels and LED lights are optimized for
northern latitudes.
“We can put a light in the middle of nowhere. You’ve got a place to work
without having to use a fl ashlight,” said Mattice.
“It’s a safety tool and a comfort to have light.”
Lighting for farms and acreages are other potential applications for the
1530 solar system.
Th e solar panels and batteries are mounted on a pole that attaches to a
screw pile anchor base that can be easily uninstalled when operations relocate
with minimal ground disturbance.
Th e 1730 solar powered LED light can be used for a variety of applica-
tions such as parking lots and walking trails – anywhere grid power become too
expensive to consider.
B.E. Solar can’t fi t a doghouse into their oil show booth, but a mobile solar
powered surveillance, lighting and communication system from Ensol Systems
will be the attention getter.
“Solar security trailers are an innovative product for the oilpatch that have
not been seen in this part of the county yet,” said Mattice.
“We have mobile security trailers that are run 100 per cent solar. Th ey are
compact trailers that we can move anywhere because we have both cellular and
satellite communications.”
Th e units come with a high defi nition IP (Internet protocol) camera with
pan, tilt and zoom capability, high intensity LED lighting and remote viewing
capability by smart phones and computers.
“Vandalism and theft in the oilpatch is at a point now where, in a lot of
cases if a rig fi nishes a well and there is no a job for that rig for a week or two,
they can’t leave it on the site because of vandalism,” said Mattice.
“We can put a trailer in front of that rig and it’s being watched 24/7 with-
out the expense of having to move that rig to a secure location.”
Th e trailer, itself, can’t be taken easily by thieves since it has a GPS system
and the wheels can be locked.
“It would take them longer to fi gure out how to hook up the trailer to the
truck before security got there,” said Mattice.
Mattice has owned Northern Trucking for 16 years. Northern Trucking is
where he and Prochinsky will operate B.E Solar this fall as a standalone shop –
if their launch hits the target market.
“I think Alberta has been a little behind the rest of the world in regards to
solar energy because of the abundance of natural gas and fuel that realistically,
until the last few years, have been pretty easy to aff ord,” said Mattice.
“I think the world is looking more to the green side, and I think we have a
really good solution for the oilpatch to look at.”
This solar-powered doghouse was installed at Northern Trucking & Industrial Supplies Ltd., an associate Napa Auto Parts store in Bonnyville. A complete installed system costs about $9,000, with a quick payback up to eight months if installed in April to get the maximum use from it during the rst year. The system can save up to $1,500 a month in generator fuel and maintenance costs.
Photo submi ed
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Strength In Our Resources
By Brian Zinchuk
Regina – On March 10, Saskatoon MLA Cam Broten was elected leader of the Saskatchewan New Democratic Party. Broten replaces previous leader Dwain Lin-genfelter and interim leader John Nilson.
At 35 years of age, Broten represents a generational change for the NDP. All the competitors for the leadership were similarly aged. Broten won over Ryan Meili by 44 votes. MLA Trent Wotherspoon also ran for the leadership, while economist Erin Weir dropped out of the race prior to the fi nal convention.
While Lingenfelter was an executive with Nexen between his many years in elected offi ce, Broten does not have similar experience with the oilpatch.
Twelve years younger than Premier Brad Wall and with likely a long political career ahead of him, Broten is in a special position. Only one permanent leader of the Saskatchewan NDP prior to him has not become premier at some point. Th at was Dwain Lingenfelter.
Pipeline News met with Broten in his offi ce at the legislature on April 11 to discuss his energy policy plans for the future.
Pipeline News: Where are you from and what do you do? What riding do you represent?
Cam Broten: I’m Cam Broten. My home is in Saskatoon. I represent the
constituency of Saskatoon-Massey Place. Born in Regina, I grew up in north-
ern Saskatchewan and in Saskatoon. I went away for school out of province for
a while. I came back to Saskatchewan and did schooling here too. I’m married,
and my wife is from the Swift Current area, a family farm. Her parents still
farm, and so we get down to the southwest corner regularly.
PN: Do you have any energy sector experience?
CB: No. I think the best experts in the energy sector are the individuals
who are working in the energy sector every day. Th e approach to leadership I
bring is listening to experts and listening to good ideas wherever they come
from. Th at’s the approach I’ll be bringing as leader. I look forward to learning
more and listening more, and having a really constructive relationship.
PN: What is your plan for Saskatchewan’s energy policy?CB: My approach to politics is where things are working, not to change
them. Th at’s an important point.
If we look at the success the energy sector has had over the last years, for
the most part, it’s from the royalties put in place by the NDP prior to 2007,
and I think generally it’s served the province quite well.
Page B5
New NDP leader discusses energy policy
Cam Broten is the new permanent leader of the Saskatchewan NDP. All of his predeces-sors, save one, eventually occupied the premier’s o ce in the Legislature.
Photo by Brian Zinchuk
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Page B4Th at’s an important point to make. Th ere are places where the government
can be doing better, doing more. We look at innovation, and the necessity to
do more R&D. Obviously the private sector is best at doing R&D, but there’s
a role for government to facilitate that, to foster that, to ensure carbon capture
projects are successful over the long term.
As well as investments in training; we looked at more support for appren-
ticeship and trades programs so that companies have the ability to expand as
they need to, to create the jobs they need to create, and to allow the sector to
do well.
For policy on energy, Saskatchewan people want, and I support this, they
want a better long-term plan when it comes to energy, actually meaning a
green and better future – taking real action on climate change, and ensuring
we are being as responsible as we can. A lot of that will be through R&D, as I
mentioned. It’s also working with industry on improvements that can be made
– reducing fl aring and venting, things that industry also sees the benefi t in do-
ing. Th ese are things the government can work together with industry to ensure
we’re taking constructive steps.
PN: Former leader Dwain Lingenfelter expressed a desire for the prov-ince of Saskatchewan to get back into the oil and gas industries a la SaskOil, especially with regards to gas production. What is your take on this?
CB: Th at’s not a proposal I’m advancing. I think the private sector, last
year, did a good job in developing our resources and bringing benefi ts to Sas-
katchewan people, creating jobs. Th at’s very important. It’s necessary to contin-
ue to support that work. I believe in a strong private sector in the energy sector,
that’s very, very important.
And I believe in strong Crown corporations, too. I think the Crowns that
we have should be strengthened, and improved. It’s about striking the right
balance.
Tied to the second question, it’s about a long-term, sustainable plan.
PN: In the fi rst nine months of 2012, Saskatchewan drilled all of nine natural gas wells, down from over 2,700 fi ve years before. What, if anything can, or should, the province do about these low numbers?
CB: I think the decrease in drilling is largely tied to the world price for
natural gas. As we see a change in price, we’ll inevitably see a change in the
activity. Th at’s a positive thing. I have an open ear and open door to listening
to good ideas, wherever they come from. If there are good ideas that we should
be considering, I’m looking forward to having those discussions, listening and
seeing how those plans could improve the situation.
I haven’t had explicit recommendations on this, but I’ve also had this job
for about one month, and have many more people to meet and talk to and
build relationships with. We’ll see what happens.
PN: What is your take on federal NDP leader Th omas Mulcair’s asser-tions that Western Canada’s strong energy sector has resulted in a case of “Dutch Disease?” What impact does this have on Saskatchewan, if any, and is there anything you would do about it?
CB: I’ll let economists have the economic debates about jargon and sort
that out. What I want, and what Saskatchewan people want, is sustainable de-
velopment of our resources. We recognize they bring benefi ts, bring jobs, bring
profi ts to our province, and recognizing we need to do better when it comes
to a long-term plan for sustainability and actually improving the environment.
Th ose are the realities.
Let the economists sort out the debates, but the energy sector is hugely
important to Saskatchewan, and to the entire country, bringing positive out-
comes all over Canada. I think that’s very important to recognize.
PN: Now that Cenovus has bought Oilsands Quest’s assets, Saskatch-ewan oilsands development seems much more likely. What is your stand on this?
Page B6
B6 PIPELINE NEWS May 2013
Page B5
CB: We need to develop our resources in a
sustainable, responsible way. Th at obviously applies
to oilsands as well.
Th e exploration permits were actually done
under the NDP government in 2005. Th is is some-
thing we have supported. In 2010, I chaired our
policy review process as a party. We discussed oil-
sands. What people in the party have said, and what
I have said, is if you develop the resource, you need
to do it right. You have one chance to do it right.
You need to avoid some of the missteps Alberta
has made. We need to do a better job of it. It needs
to be done with the most stringent regulations,
the best triple-bottom line, in ensuring the overall
strategy, the overall discussion of hour we’re creat-
ing a greener future, how we’re going to address
climate change and greenhouse gases.
Th e Saskatchewan situation is unique, and
for that reason, we need a unique Saskatchewan
response. Th e take-home message, and the predom-
inant message that I have and the Saskatchewan
people have had, is we have one chance to develop
our resources and we need to do it right. We need
to be thinking long-term. We need to have respon-
sible development, keeping the environment in
mind, and also ensuring we’re bringing good ben-
efi ts to Saskatchewan and we’re using the benefi ts
of the wealth created in a responsible way.
Page B7
No return of SaskOil considered; supports private sector
Cam Broten is the new permanent leader of the Saskatchewan NDP. All of his predecessors, save one, eventually oc-cupied the premier’s o ce in the Legislature. Photo by Brian Zinchuk
PIPELINE NEWS May 2013 B7
Page B6Something the party supports and I support is
the creation of a Bright Futures Fund, a sovereign
wealth fund similar to Norway, so that we’re think-
ing long term. We’re ensuring that Saskatchewan
people now and for generations to come will benefi t
for the resource.
PN: In regards to a sovereign wealth fund, do you have any specifi c ideas? What is your vision?
CB: We need to start with the process. It’s not
something that can be entered into lightly. We need
a good plan, because, yes, it has eff ects on debt pay-
ment, on the provincial situation. But if we look at
jurisdictions where it has worked well, like Norway,
they took early action. Th ey had a clear plan of
where they wanted to go. It’s brought huge benefi ts
to the country, and has allowed them to have the
type of education, health care and roads that they
want.
We’re continuing to do work as a party on this.
I want to do more work myself. I think it needs to
be a priority. Th e predominant message I hear from
Saskatchewan families is we need a smart growth
plan. We need long-term, sustainable thinking.
PN: Th e Saskatchewan Party has essentially said, “We need to pay the mortgage fi rst, then we’ll put stuff in savings.” Do you think a sover-eign wealth fund should wait until Saskatchewan’s debt has been retired, or do you think we should start doing something now?
CB: I think we should start looking at earlier
options in a constructive way. Good habits with
spending are started earlier on. We need to ensure
we’re making the right decisions. We’ll be doing
more work as a party, we’ll be talking to many more
people in the province and determine the best way
forward. I keep hearing from Saskatchewan people
this is a priority.
It’s a key model (Norway) that we’re looking at
for lessons learned. It’s not the only example. But
as with every situation, I’ll listen to ideas wherever
they come from, and that’s the approach we’ll be
taking.
PN: Where do you stand on the proposed Keystone XL and Northern Gateway pipelines?
CB: On Keystone, the longstanding caucus
position we have is that we support Keystone. We
think there’s a responsibility in our province to
have the highest return for our resources. We think
Keystone would help us receive more for what we’re
producing, and the fact there has been a triple-
bottom line assessment. Th at’s absolutely vital to
highlight. Based on that, our position is we support
Keystone because it will bring great benefi ts to the
province.
Gateway is a very diff erent situation. In my
view, there are too many unanswered questions
about the pipeline, and especially about the ship-
ping, along the precarious West Coast. Th ere hasn’t
been the assessment that’s required. Th ere are too
many reservations I have to support Gateway.
Th e reservations I have, based on environmental
concerns, are too great to support it at this time.
Th ere are too many unanswered questions.
Th is isn’t a Saskatchewan pipeline. It goes
across other provinces, and we need to talk to those
provinces as well and (they will) make the best
decision for them.
PN: But if Cenovus develops the Saskatch-ewan oilsands, that will have to go into a pipeline, Keystone, or Alberta Clipper or Enbridge main-line or one of the others.
CB: Th e Gateway situation is diff erent, with
respect to environment, the assessments that oc-
curred, and with respect to the destination of the
product and how it can be safely shipped. It’s a very
diff erent situation.
PN: Right now the TransCanada natural gas mainline is running half-empty. Th ey’re looking at converting one of those pipelines to oil usage to ship to Eastern Canada. What do you think of that prospect?
CB: Th e west-east pipeline is something we
support in principle, recognizing that the rigorous,
triple-bottom line assessment needs to occur. In the
same way we think Keystone can bring benefi ts, a
west-east pipeline could as well. But there needs to
be the proper environmental control. We need the
highest assessments in place.
Th ere’s the added benefi t of value-added jobs in
Canada, which is a possibility to recognize also.
Page B8
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Page B7PN: You’ve mentioned triple-bottom line several times. How do you
defi ne a triple-bottom line?Environmental, economic and social. When we look at projects, there’s a
good economic basis for them, and that it brings a net benefi t to the economy.
Environmental; recognizing that the right controls are in place, the right
regulation, and the right plan to ensure that it’s safe and done in a responsible
way.
Social; the fact we need jobs in our communities and there needs to be
benefi ts for people.
PN: All four leadership candidates represented a substantial genera-tional shift for the Saskatchewan NDP. What does that mean from your perspective?
CB: It’s a new generation of NDP leadership. It’s really exciting because,
when we went through the leadership process, we had tons of young people
come into the party and be active. Young people, combined with the veter-
ans that have been around for a while, is a great mix for the party. I think it’s
exciting. Th ere’s a feeling, a mood within the party, that we’re on the move, that
positive things are happening. We want what’s best for this province, develop-
ing it so that it brings benefi ts to people, that families can do well, and that
we’re responsible to the environment.
PN: Do you have any alternative energy policies?CB: Th is is part of the overall plan for sustainable thinking and a long-
term strategy. We need to do better as a province in ensuring we have a greener
future, in addressing climate change, in reducing greenhouse gas emission. In
an earlier question, talking about a strong private sector and a strong Crown
sector, I think there are things we can do with Crowns, where SaskPower can
provide a stronger leadership with respect to expansion into renewables.
Doing things like fi xing the net metering program, so there’s a better
incentive for individuals to feed into the grid – those are some of the steps we
could be taking, SaskPower could be taking.
PN: What is your take on the recent budget and oil revenue assump-tions?
CB: When we talk about a policy on energy, the important thing is to have
an approach with no surprises. It’s a problem when there are signifi cant chang-
es introduced in the budget, without the proper communication and relation-
ship with the industry.
What the industry needs to do well is stability and predictability so a com-
pany can operate its business, plan for expansion, create new jobs, plan for the
development of our resources and do the R&D that is needed. When there’s a
change to the royalty structure is a surprises to industry (referring to the Sas-
katchewan Resource Credit), it causes concerns. Th at’s not predictable. Th at’s
not stable. We need to run the correct, no surprises approach.
It speaks to an approach. Th e approach that is needed is one of no sur-
prises, one of communication and allowing for the proper communication to
occur.
Triple-bottom line to be considered for pipelines, oilsands
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By Geoff LeeCalgary – Bayshore
Petroleum expects to
complete a 350-barrel
per day heavy oil facility
near Meota Saskatche-
wan this year to convert
heavy oil into light oil
products.
Th e US$9.5 to $10
million pilot project
will utilize a proprietary
catalyst developed by
CCC CanSino Corp., a
Canadian research and
development company
in Calgary.
Th e catalyst can
work to convert heavy
oil to diesel quality light
oil as fuel products or as
diluents.
Calgary-based Bay-
shore anticipates that
due to its simple design,
the pilot upgrader could
be in operation by late
summer or early fall.
Th e company has
signed a Memorandum
of Understanding with
CanSino for a 10-year
licence agreement to use
their catalyst in oilsands
applications to upgrade
bitumen to diesel qual-
ity light oil, synthetic
gas and clean sand/coke.
If the catalyst works
in Meota as planned,
it will help Bayshore
achieve its strategy to
acquire and operate an
oilsands property in
Alberta in conjunction
with a state owned or
private Chinese investor.
Bayshore currently
has conventional and
unconventional oil and
gas prospects in West-
ern Canadian.
Th e laboratory tests
on the catalyst that were
conducted in China on
Athabasca oilsands and
other oilsands in the
world, delivered excel-
lent oil and gas yield
according to the report.
Tests show the cold
catalytic cracking pro-
cess can be operated at
normal pressure through
low temperature heating
and leaves only clean
residue sand, in addi-
tion to the light oil and
synthetic gas after the
upgrading process.
CanSino said
the low temperature
catalytic process does
not require hydrogen
addition and is a simple
pyrolysis process with
reaction time less than
three hours.
Th at company also
reports the catalytic re-
torting process can yield
10 barrels of diesel qual-
ity light oil treating with
a 0.2 ton of catalyst per
10 tons of oilsand.
CanSino believes
that high yield of the
diesel quality light oil
which has a higher
economic value, and
the low catalyst cost,
makes the process a very
profi table and aff ordable
technology for oilsands
applications.
In addition, they
believe the catalytic
process can be used
to replace diluents to
upgrade the bitumen/
heavy oil into valuable
fuel oil on site.
Th e fuel oil, in turn,
can replace more expen-
sive commercial diesel
fuel. Th e processed
diesel can also be used
as a diluent in the heavy
oil industry.
Th e process can also
provide a source of dry
synthetic gas onsite for
future steam-assisted
gravity drainage or
SAGD thermal opera-
tions in the oilsands.
At Meota, Bay-
shore has an MOU
from a private Saskatch-
ewan heavy oil producer
to purchase heavy oil
from them and process
it into diesel fuel quality
product oil.
Bayshore will
construct the upgrad-
ing facility to permit
capacity expansion to
1,000 barrels of heavy
oil (10 API) per day in
conjunction with the
operator’s fi eld develop-
ment plan.
Th e company also
has until July 31 to
purchase up to 50 per
cent of the heavy oil
lands that total 9,600
acres.
The cost of the
full build-out is $50
million according to
Bayshore’s project cost
estimates for 2013-14.
The total cost
would include acquir-
ing existing reserves
and land from the pri-
vate operator and the
cost of participating
in exploratory drilling
with the operator.
Bayshore began
the first quarter of
2013 with one drilled
and cased light oil
well near Radvillle in
southeastern Saskatch-
ewan and had plans to
drill four more wells in
the area by July.
Each well will
have the potential
productivity of 75-80
barrels per day.
In December, the
company also an-
nounced plans to
acquire some medium
oil properties from a
private company in the
Manitou Lake area.
Bayshore Petroleum plans to use a cold cataly c cracking catalyst to convert heavy oil produced near Meota, Sask. into diesel quality light oil.
Catalyst to turn heavy Catalyst to turn heavy oil to light oiloil to light oil Photo
submi ed
B10 PIPELINE NEWS May 2013
By Brian Zinchuk
Calgary – Lessons learned in Saskatchewan are
being implemented in Alberta as NRGreen Power
implements another heat recovery power generation
system, this time at Alliance Pipeline’s Windfall
compressor station, near Whitecourt.
Alliance is the pipeline system, while NRGreen
is an independent power producer that handles
power generation created from its co-generation
installations on Alliance compressor facilities.
In 2009, NRGreen Power built its fi rst heat re-
covery power plant at Alliance’s Kerrobert compres-
sor station in response to a SaskPower green energy
program. Over 2010 and 2011, that program was
expanded to the three other Alliance compressor
stations in Saskatchewan at Loreburn, Estlin and
Alameda. NRGreen built all four heat-into-power
units using Israeli technology, and each is capable of
generating fi ve megawatts of power.
“All told, we make 20 megawatts of green
power,” said Jim Walsh, vice-president of operations
for NRGreen and vice-president of system optimi-
zation for Alliance.
Alliance requires approximately 400 kilowatts
per compressor station site, with a total draw in
Saskatchewan of 1.5 to 1.6 megawatts. Th at means
nearly all the power NRGreen generates more than
off sets Alliance’s needs and is available for sale.
Walsh explained that the heat from the com-
pressors is what drives the system. “All (compres-
sors) utilize gas turbines and generate a consider-
able amount of heat in exhaust,” he said.
A gas turbine is essentially a jet engine. Th is
form of engine is not only used in planes and heli-
copters, but also in compressors and M-1 Abrams
main battle tanks. As one can imagine, the heat
coming off the exhaust is intense.
A 2007 SaskPower request for proposals for
green energy got the ball rolling for the Kerrobert
project.
While the system is now running well, provid-
ing “good baseload power” with 99 per cent utiliza-
tion rate in the fi rst quarter of 2013, it wasn’t always
that way.
“We had some lining-out issues,” Walsh said,
adding such issues are normal.
Th e Israeli technology, from Ormat Technolo-
gies, was primarily used for geothermal applications
in warmer climates, drawing hot water from the
ground, and feeding heat exchangers with a pentane
loop. Some companies had used the system to re-
cover heat energy from gas turbines. Th ere was little
cold weather experience. Page B11
Environmental regulations drive NRGreen cogen project
Construc on is underway at the Alliance Pipeline Windfall compressor sta on near Whitecourt, Alta. Alliance is im-plemen ng it’s h heat recovery power genera on system on its mainline, with NRGreen Power as the operator.
Photo submi ed
PIPELINE NEWS May 2013 B11
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Page B10Th e primary components are exposed to the elements in the Saskatchewan
installations. Th ey ended up with premature failures of some components,
including seals, bearings and disks.
Colder air is also denser air, which means a turbine can produce more
power because it essentially has more fuel. Th is is why a helicopter can carry a
heavier load in a cold weather environment than over a hot desert. Th e result
was the possibility of overpowering the turbines in the compressor stations.
Th e system used to recover heat from turbine exhaust is based on the or-
ganic Rankin cycle, eff ectively the same system used in refrigerators. A closed
loop pentane cycle brings heat out of the exhaust and then runs through a large
heat exchanger, supplying heat to a thermal oil cycle. Th is, in turn, powers the
electricity-producing generator.
“In cold months, you have a lot of condenser power,” Walsh said. Th ey have
since implemented condenser controls.
“We have all this behind us,” Walsh said.
Alberta installationNow in Alberta, NRGreen is installing a much larger power generation
system at Windfall. Th at site is key, because it’s the point in the Alliance Pipe-
line where much of the gathering system comes together, and the compressed
natural gas is sent down the mainline to Aux Sable, near Chicago. Th ree pipes
come into the station, the largest being 42 inches across. Th ey are combined
into one, and the gas leaves the station in a 36-inch diameter pipe at a much
higher pressure. Gas coming into the plant is at 700 psi suction pressure, and is
discharged at 1,740 psi.
Page B12
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Th e Windfall project is a few months from
commencing operations. It is expected to be in
service in July. Th is time, NRGreen went with a
General Electric system. Th e three units being in-
stalled at Windfall will generate a total of 14 MW
of electricity per hour, enough power for 14,000
average homes, with no new emissions or water use.
Th e Alliance Pipeline was designed with much
thicker and tougher steel than a typical mainline
gas transmission line. Th is means it normally runs
at 1.325 bcf/d, but can handle much more than
that. If market conditions warrant, additional com-
pressor stations can be added at the half-way points
between each of the existing compressor stations.
Th ey were built 120 miles apart, with the system
designed for option of adding compressor stations
so that they would be spaced 60 miles apart. Th at
would bring the capacity of the system up to over
two bcf/d.
Additional stations would also mean the pos-
sibility of additional power generation. If they are
to ever be built, Walsh said, “We would defi nitely
look into that.”
Simple things can be done during initial con-
struction of new faciltiies that would facilitate more
co-generation power opportunities. But with the
depressed price of natural gas, and a strong push to
ship additional production to the West Coast for
liquefi ed natural gas exports, such expansions are
unlikely at this time.
Th e main driver for the Windfall installation is
not so much making money from the sale of elec-
tricity as it is addressing greenhouse gas emissions
regulations and concerns. Such projects are “very
capital intensive,” according to Walsh. Th e Windfall
project is pegged at approximately $70 million.
Some of that money is coming back to
NRGreen however, in the form of a program de-
signed to encourage greenhouse gas reductions. Th e
Alberta government, over the past several years, has
required large greenhouse gas emitters to pay into
the Climate Change and Emissions Management
Fund. Payments are based on their level of emis-
sions and how much improvement they have made
to their system to address emissions.
Alberta Environment and Sustainable Resource
Development’s web page notes, “Companies that
are required to meet the provincial reduction target
for greenhouse gas emissions can choose to pay $15
a tonne into the fund for emissions over the target.
Th e Alberta government is responsible for collect-
ing this money for each compliance year.”
Since the Alliance Pipeline only went online
in 2000, its technology is relatively new and there
isn’t much room for optimization. As a result, the
company has been paying about $1 million into the
fund a year for the past seven years.
Th e Windfall project will allow NRGreen to
extract its previous payments and use it for the
development of the clean energy project.
Alberta’s power system is very diff erent from
Saskatchewan’s, in that its deregulated system
means companies can buy or sell power to anyone
they want on the grid. NRGreen has entered into a
10-year power purchase agreement for most of the
power to be generated at Windfall, with the re-
mainder to be sold on the open market.
Saskatchewan lessons used in Alberta cogen projects
PIPELINE NEWS May 2013 B13
crescentpointenergy.com
Crescent Point is proud to be part of the community
Sharing the Energy
Bonnyville – Carmanah Technologies Corporation is on the right side of
global eff orts to develop low carbon energy sources to limit global warming.
Th e Calgary-based company manufactures and distributes an increasing
volume of solar systems for the RV market and has developed a new hybrid
solar system for oilfi eld doghouses that resemble RVs.
Th e worldwide expansion of renewable technologies such as solar and wind
power are credited in the International Energy Agency’s annual report on April
17 for helping to curb the growth of greenhouse gases.
Th e IEA noted that all other energy sources are failing to limit global
warming to a target of less than 2 C this century as power generation continues
to be dominated by coal and other fossil fuels.
Th e report notes that from 2011 to 2102, solar voltaic and wind technolo-
gies grew by a whopping 42 per cent and 19 per cent, respectively.
Th e trend is in keeping with sales of RV solar kits in Alberta manufactured
by Carmanah, which distributes them to installers such as Northern Truck &
Industrial Supplies Ltd., an associate Napa store in Bonnyville.
Carmanah’s mobile solar systems division makes a complete line of solar
chargers, inverters, controllers and power accessories to deliver electricity where
grid-power is inaccessible or unavailable.
“Within fi ve years there are going to be more registered RVs in Alberta
than from Saskatchewan to the Bay of Fundy,” said Doug Grafton, sales man-
ager for Carmanah who was reached at the Bonnyville store.
Page B14
Carmanah’s oil eld solar re ects global trend
This three ba ery hybrid solar system designed by Doug Gra on, a sales manager for Carmanah Technologies Corp., features an automa c generator starter to recharge the ba eries and provide extra power to work the compost toilet.
Photo submi ed
B14 PIPELINE NEWS May 2013
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hy Shangri-La?
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Page B13“In Alberta, there is no cottage country. Ev-
erybody goes camping here. Everybody has trailers
but less than 10 per cent of places have plug-ins, so
there has always been a very popular demand for
solar energy.”
Grafton sees a potentially even bigger market
for a hybrid solar system that he designed for an
Ensign Rockwell doghouse that, he says, is essen-
tially an RV.
Th e fi rst system for Rockwell was designed and
commissioned in September 2011.
“Each one of these doghouses has a 20,000 or
25,000 watt diesel generator,” said Grafton.
“Th ey run this 25,000 watt generator to heat
lunches up for the guys on the rig and to run a
laptop and a coff ee maker.”
A typical monthly consumption of diesel fuel
for the doghouse generator was 1,000 litres of fuel.
“I designed a solar and an inverter system, so
there will be three solar panels on the roof and an
inverter and a transfer switch,” said Grafton.
“Between May and September, they can shut
that generator off . Solar is charging the batteries
and the batteries run the inverter, so now they run
the microwave and heat up all the lunches. Th ey can
use the laptop all day long.”
One of the major selling points of the hybrid
system is the quick return on investment as the
return is realized over one short season.
“Just based on the cost of diesel fuel with the
unit installed, the return is less than one summer
season,” said Grafton.
“Also, generators that typically had to be
replaced because their life duty cycle was every
three years – we’re now doubling the lifespan of the
generator because it’s not getting run during the
summertime.
“I designed an automatic generator starter for
a 25,000 watt generator, so if crews are on the rig
and out working, and there is 25 to 30 per cent of
battery life remaining, it automatically starts the
generator.
“It runs for three hours until the batteries are
replenished and shuts itself off . Th e system is turn-
key.
“It’s nice and quiet, it’s green power, and it’s
extending the life of the generator. Th ey’re saving
fuel. In less than one season, it’s paid for, so the cost
savings over the next few years are incredible.”
Carmanah has gone on to sell approximately
12 hybrid systems to Rockwell. It is hoped sales to
other companies set to soar thanks to the upcom-
ing launch of B.E. Solar Solutions Ltd. during
the Bonnyville & District Oil and Gas Show June
19-20.
Grafton will be at the B.E. Solar booth to pro-
mote the benefi ts of solar to a widening oil and gas
market that includes RV owners who need solar at
oilfi eld work sites and off grid camping.
“People who have RVs and know how solar is
going to enhance their camping experience – they
can translate it now from working in that dog-
house,” said Grafton. Page B15
Using solar to save fuel
PIPELINE NEWS May 2013 B15
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Carmanah Technologies Corp., a manufacturer of solar power products, is tapping into a poten ally lucra ve market with a hybrid solar system for doghouses.
Photo submi ed Page B14
B.E. Solar is owned by Northern Truck & Industrial Supplies owner Brent
Mattice and by Eugene Prochinsky, who owns Breday Trucking Inc.
Th eir new solar company will sell and install Carmanah solar products for
safety lighting, security trailers and for doghouses.
Th e doghouse installations will be done at the B.E shop that is to be
located at Northern Truck & Industrial Supplies, where RV installations have
been taking place for over 15 years.
With solar there are no worries about running out of power after a few
overnight stays where there are no electrical plug-ins.
“Th e addition of a single solar panel would double or triple your time there
without any battery worries,” said Grafton.
Grafton said Carmanah will be looking at expanding the doghouse solar
market to other distributors in Western Canada, including the Grande Prairie
and Fort McMurray areas.
“Th is year is going to be the breakthrough year spreading out to diff erent
companies.”
Carmanah also makes a variety of solar products to run remote SCADA
equipment and instruments in the oilfi eld.
B16 PIPELINE NEWS May 2013
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Battleford – Corey Chmelnyk is a gung-ho
member of a special strike force of cyclists called
the Benevolent Bikers on a mission to conquer
cancer this summer in a 200-kilometre ride.
Chmelnyk is the area manager for Strike
Energy Services Inc. in Battleford. He will cycle
with the Benevolent Bikers in the Enbridge Ride to
Conquer Cancer in Calgary June 22-23.
Joining Chmelnyk on the team will be Megan
Gerber, Geoff Adams, Char Irani, Dustin Moore,
Almereau, Prollius, Deanna Ripley and Michael
Tumback – representing Strike’s 14 locations in
Western Canada.
Th e eight-person team had raised nearly
$20,000 by the beginning of April toward their goal
of $29,600 for the cancer ride.
Th is year’s ride to conquer cancer is billed as
an epic two-day bike ride on new course through
the foothills from Calgary to Okotoks that will
have a life-changing impact for cancer survivors in
Alberta.
Page B17
Strike force to beat cancer on bikes
High ves, st pumps and smiles. This is the type of scene that a team of cyclists from Strike Energy Services Inc. will experience at the end of their 200-kilometer ride in the 2013 Enbridge Ride to Conquer Cancer in Calgary June 22-23. These cyclists pictured in 2012 were among 1,854 par cipants in the two-day event that raised more than $8 million for cancer research and treatment. Strike has an eight person team called the Benevolent Bikers with a fundraising goal of $29,600. Photo submi ed
PIPELINE NEWS May 2013 B17
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Page B16
In 2012, 1854 cyclists and crew members took
part in the ride raising more than $8 million for
the Alberta Cancer Foundation.
Chmelnyk said event caught the imagination
of Strike Energy who put out an invitation to
managers to hop onboard for a good cause.
“I thought to myself, ‘Geez it would be a darn
good thing for me to go into something like that,’”
said Chmelnyk.
“For one thing, it helps out your health and it’s
a good thing for everyone. Cancer is a bad thing.
Anything I can do to help – I want to help out as
much as I can.
“It’s my fi rst year. It’s new to me. Everyone
gets jerseys and you have to have a good bike of
course. It’s going to be an overall good weekend.”
Chmelnyk owns a mountain bike but he may
rent a road bike instead of buying one for the two-
day ride.
Cyclists will camp overnight in Okotoks on
the fi rst day of the ride then bike back to Calgary.
Enbridge is the national title sponsor of the
event that has raised more than $88 million for
cancer research treatment and care facilities across
Canada.
Chmelnyk is on track to raise the minimum
$2,500 in donations that each rider commits to
when they register for the ride.
“I’m sitting at around $2,000. I’m pretty close.
I have still have three months to go. I’m going to
get it pretty easy. It’ll be no problem,” he said on
March 27.
Readers can contribute to Chmelnyk or any of
his teammates by logging onto the website (con-
quercancer.ca) and clicking the donations page for
further links.
“I’ve got donations from some inspection
companies and I’ve asked a couple of our clients,”
said Chmelnyk.
“It sounds like they going to be giving me
something. It’s kind of from everyone – clients
and third party people.
“Th e donation thing is pretty easy – it’s the
training that comes with it.”
“It’s a 200-kilometre bike ride and it’s not go-
ing to be the easiest.”
Weather permitting, Chmelnyk may be able
to squeeze in two months of outdoor rides on his
mountain bike before the event, but until then he’s
training on a spin bike and a race bike indoors.
“I’ve been keeping up with it as much as I
can. Trying to do it around work and stuff , it’s
been a challenge, but I am managing to get by,”
he said.
Corey Chmelnyk, area manager of Strike Energy Services in Ba leford, is training on an indoor spin bike and race bike to get in shape to join seven other corporate em-ployees in the 200-kilometre Enbridge Ride to Conquer Cancer event in Calgary June 22-23. His team is called the Benevolent Bikers.
B18 PIPELINE NEWS May 2013
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By Brian ZinchukEstevan – If the turbine and generator are the heart of a power station,
then Boundary Dam is getting a heart transplant, at least for Unit 3.
In the main gallery, one can see the guts of what used to be the “power
island” for Unit 3 – the rotor portion of the turbine. From an angle, it looks
like a fi sh skeleton, with a spine and thin bones sticking out. Th ose “bones” are
actually the blades of the turbine that kept the lights running in Saskatchewan
for over half a century.
Its replacement will keep the lights burning for another half century.
On April 12, Pipeline News had a chance to tour the Boundary Dam Power
Station and carbon capture facility, one of a series of tours documenting the
progress of the $1.24 billion project. Th e last time was in late December, just
before the workers had gone home for Christmas. A lot has changed since
then.
“Right now, on the power island side, the demolition started the fi rst week
of March for the old turbine and generator,” said Mike Zeleny, project man-
ager, clean coal transition to operations. Zeleny had been the plant manager
for Boundary Dam Power Station until late last year. Now the nearly-40-year
SaskPower veteran’ job is to get the Carbon Capture project up and running.
Th at demolition is nearing completion. Th at area is now being prepped for
fi nal placement of the new turbine and generator. Th ey’ve already lifted it into
place to make fi nal measurements, before moving it aside again to make adjust-
ments. Th e lift required both of the large overhead cranes that run along the
ceiling of the building. Page B20
A heart transplant for a power plantA heart transplant for a power plantA welder adjusts his hardhat before pu ng it back on. This maze of pipes picks up heat from the inside of the boiler, to the le .
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Page B19A lot of action is taking place within and around the boiler. Holes are opened
up in the corners, and large slabs of ganged-together piping are being installed.
“We’re starting to install new steam headers on the boiler,” Zeleny said.
Th e massive 14 story boiler has been divided into two levels, so that work can
take place in both at the same time. A massive red crane positioned on the south
side of the building has been lifting components in and out of the roof. On the
north side, another crane lifts pieces up to the south wall, where a large hole has
been made to allow the large components of the old power island to be lifted out
and new components to be brought it.
“On the capture island, the last phases of construction are occurring,”
Zeleny said. “Most of the work is electrical apparatus and fi nishing pipe work.
Th ere are two buildings that make up the capture island. Th e main building,
to the south, has seen extensive additions to it. Th is is the fl ue gas cooler that
will receive the hot gases from the boiler via the massive duct works that were
manufactured by SaskArc of Oxbow. Th e new vent pipe is also in place on top
of the carbon dioxide absorber.
A series of struts are in place between the main power station building
and the main capture building. A large, rectangular duct has been built along
the southeast corner of the power station. Th e struts will enable this ducting to
continue to the capture building. Essentially, it’s the exhaust pipe for Unit 3,
much in the way your truck has an exhaust pipe leading from the engine to the
back of the vehicle.
Inside the main capture building, it doesn’t appear a lot has changed since
December, even if in fact, it has. Most of the major components were in place
by that time, now the work is putting it all together. Many of the process areas
are considered proprietary secrets, and photos are not allowed.
Th e north building was but a shell in December. Th at has changed consid-
erably. A large compressor sits atop a massive network of piping. Th ere are eight
stages of compression, and between each stage one fi nds intercooling apparatus.
A two-storey electrical room houses the transformers necessary to power the
facility. Th e compressor and other large components draw upon 13,800 volt
power, while the rest of the plant uses 480 volt.
“Virtually all the components are in place. A few left are in the heat rejec-
tion building,” he said. Th e heat rejection building contains the new cooling
tower, necessary to deal with the large amounts of heat generated and used by
the capture process.
“Along with the formal construction completion, a lot of other processes
are underway so we can start up the facility in time,” Zeleny said. “Our train-
ing program has been up since February. A large segment of staff training
is underway – process training and safety training, and later, environmental
training.
“Every aspect that needs to be done has been worked on for a while.”
Two organizations are being put in place to handle the commissioning –
one for the power island, another for the capture island. Th ey are composed
primarily of SaskPower personnel, but also include vendor staff .
Staffi ng peakTh e crunch is on right now, with manpower at its peak. “We’ve had to
build a lot of parking lots,” he said. New lots stretch to the north towards the
access highway coming into the plant. Lunchrooms made of the same sort of
shacks seen on lease sites have been hoisted to the roof of the east end of the
power station, allowing workers to have a lunchroom without leaving their
work area.
“We’re still between 1,100 and 1,200 contractors on site.”
Th ey’re running two shifts now, mostly 10 hours long.
SaskPower has resorted to running a large ad in the Estevan Mercury,
seeking housing for its permanent staff .
“We knew it would be a challenge for a while, with pressure from the oil
industry. We booked rooms at the ATCO camp and a number of hotels.
“Th ey (contractor employees) seem to have found a place to stay. A lot of
people took in boarders. A lot of local people have been willing to step up and
take in people and let them stay. Th at’s the only way this was accomplished.”
PTI Group is currently constructing a large lodge northeast of the city.
Th ey were not, however, contracted by SaskPower. “Th ey’re coming on their
own volition,” he said, adding PTI did receive communication about construc-
tion numbers and timeframes. “Th ey were free to bid earlier on (the) accommo-
dations proposal. Page B21
The boiler is so tall, they divided it in half ver cally so that work could take place on two levels. When opera ng, the large volume inside this boiler is probably the closest thing to hell re on earth, with coal ground as ne as our being injected along with air to create heat.
Unit 1 retired, Unit 2 next to goUnit 1 retired, Unit 2 next to go The compressor building por on of the capture plant is nearing comple on.
The salmon-coloured cylinder on the le is the new generator for Unit 3. The rotor from the old Unit 3 turbine is in the lower right.
Photos by Brian Zinchuk
B22 PIPELINE NEWS May 2013
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Page B21Zeleny expects that in May and June, activities will start to conclude on the
capture side. In July or early August, there will be a sharp decline in personnel
working on the power island.
SaskPower is still looking for people for permanent positions. Since Dec.
1, they have hired over 50 new, permanent employees for the carbon capture
project as well as replacements due to normal attrition like retirements.
Still on time, budget“We’re still on time and the projected start up is still the same as it was for
the last year. And we’re still on budget,” Zeleny said.
“Unit 3 will start up in mid-September.”
A few weeks are expected to be needed for tuning and testing. He expects
fl ue gas to be sent to the capture island in mid- to late-October.
Th e large smokestack will remain. Large dampers will divert Unit 3’s
exhaust from going up the smokestack into the large, horizontal ducting previ-
ously mentioned, taking it to the capture island.
“Th e stack will still be required for times of outage for the capture island,
or if Cenovus can’t take captured CO2.
SaskPower’s approach would be to use Aquistore if Cenovus for some rea-
son is unable to receive the CO2. Should neither of those options be available
then the stack would be used. However, this is not the project’s intentions, but
rather a last resort. Th e plan is to capture CO2 all the time, once operational.
With two suppliers of CO2, Cenovus will have more fl exibility should there be
any interrupts with either.
Older unit being retiredOn May 1, Unit 1 will be retired.
“Unit 1 was commissioned in 1960. We did an assessment if it could be
converted to carbon capture,” Zeleny said. Th e conclusion: it was too small to
retrofi t.
Under recently implemented federal environmental regulations, coal-fi red
units have to retire after 50 years. SaskPower would have had to spend a lot of
money to keep it running. At 66 megawatts, it wasn’t worth it.
Unit 2, which had a major overhaul two years later than Unit’s 1’s last
major overhaul, has slightly longer to go. It will be retired July 1, 2015. It is also
66 megawatts.
Since it would be very costly to rip these older units out. Th erefore they
will be decommissioned, disconnected, and made safe for people and the envi-
ronment. Th en they will just sit there.
SaskPower has in recent years added natural gas turbine capacity, including
a plant of its own in North Battleford, and another contracted from Northland
Power, also near North Battleford. Th ey will, in part, make up for reduction in
generating capacity.
On time, budgetOn time, budget
David Pruden wears a face mask while working in the boiler area.
PIPELINE NEWS May 2013 B23
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Estevan – When
your business is exca-
vation and concrete,
your new shop should
show off some of your
work. So when you walk
through the offi ces of
the new location for
Turnbull Excavating
and Turnbull Redi-
Mix, you soon notice
the gleaming polished
concrete fl oors.
“You see it in big
stores now, saw cut and
polished. Why would
you put tile on this? It
catches everyone’s eye.
It’s a real selling tool,”
said Ed Turnbull, owner.
Th e Turnbull opera-
tion moved into their
new location east of
Estevan last September,
shortly after the new
concrete plant got go-
ing. Th ey hit the ground
running, because the
new concrete plant had
to supply the continu-
ous pour for the new
Pioneer elevator that
was under construction.
Th ey also had work at
the clean coal project at
Boundary Dam Power
Station in short order.
Th at plant went up
quickly. “We didn’t start
until April 1. In four
months, we were up
and running,” he said.
Th e concrete plant was
working by August 1. A
grand opening was held
March 28.
Even though Turn-
bull Redi-Mix still had
its old plant on the west
side of Estevan last fall,
he said, “We used the
new one for everything.
It can load a truck in
four minutes. We can
push out 15 trucks an
hour. Th ere (the old
plant), we were barely
getting six.
“It allows us to
have a fairly big pour
on the go and look after
the little guy doing a
driveway.”
“Every load, we
can change the blend,”
Turnbull said. “It’s all
computerized. Th e new
system is as up-to-date
as we can fi nd. If the
computer goes down, we
can still manually oper-
ate. On the old plant,
if the computer went
down, you were done.”
Th e new concrete
plant has been very
reliable, running “pretty
much 100 per cent.”
Th ey only had one
hiccup all last fall, and
that was only for an
hour.
“Life has been a lot
easier as far as the stress
level for everyone with
the new plant,” he said.
Moving to the other
side of Estevan makes
a big diff erence for the
company’s operations.
Most of their ag-
gregates, for instance,
originate east and north
of the city.
“Th is eliminates
truck traffi c through the
city. Any traffi c through
town now is to a job.
“It’s a few miles, but
close to 15 minutes site
to site.”
When you add up
those 15 minutes times
dozens of truck trips
each day, it amounts to
substantial savings.
“It was a huge im-
provement in effi ciency.
Th at was the whole mo-
tive to move here.”
Th e new location is
also just off the planned
new truck bypass for
Estevan, which is still
several years from
fruition despite being
announced in 2008.
“We’re excited
about the bypass, for
sure,” Turnbull said.
Need more space, again“We were cramped
for space at the old
facility,” he added. “We
have a 22-acre site here.
“We’re selling the
(old) plant. It’s out of
the building and on the
market for sale. Th e ce-
ment building is being
renovated and will be
used by a local trucking
company.
Page B24
Ed Turnbull visits with guests during the grand opening of the new Turnbull Redi-Mix plant.
Turnbull Excavating moves to new, larger shop, again
B24 PIPELINE NEWS May 2013
Hydrovac
Moving to east side reduces truck traf c through Estevan
Page B23Th e offi ce and shop building took a bit lon-
ger to move into, as the focus was on the concrete
plant. Th ey have 4,200 square feet of offi ce space
and 15,000 square feet of shop space in the primary
building, and another 6,000 square feet in an addi-
tional building that is used as heated storage space
to keep equipment warm. Th ey like to keep most of
the fl eet indoors during the winter.
“Th e fl eet has almost doubled in the last three
years,” Turnbull said. “We employ three full-time
mechanics. We hired our third when we moved
here. We have our fourth coming from Ireland. Last
summer we had 10 Irish people working here.
Another 16 are coming from the Emerald Isle
between April and May.
“We’re going to grow from the low 40s to
around 60 people by the middle of May,” Turnbull
said.
“Our operations are managed by a team of
people with Rob Gatecliff as concrete plant man-
ager, Dave Mack as operations manager, Christa
Morhart as controller, Chloe Sands in reception,
Tyson Turnbull as manager of day to day operations
and Jim Neufeld as maintenance manager.”
With 27 years in business, Turnbull Excavat-
ing has made a habit of outgrowing facilities. Th is
is their seventh relocation over that time. Th eir fi rst
location is currently occupied by Penta Comple-
tions. Th ey did some work for Penta’s recent expan-
sion.
“My fi rst two full-time employees are still here,”
he said.
Over the years, the strategy has been simple –
sustainable growth. “We’ve never bought anyone
out. A lot of companies buy out their competition.”
Page B25
Pat Boyle pokes his hand into the sand, warmed by a “dry steam” sys-tem. Hea ng the sand makes a big di erence when making concrete in the winter.
PIPELINE NEWS May 2013 B25
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Th ere’s something diff erent about this pile of aggregate – on a cool late-
March day, with lots of snow around, putting your hand in the sand is like
burying it on a warm Florida beach.
Steam-heated aggregate is one of the key features of the new Turnbull
Redi-Mix plant which held its grand opening on March 28.
“It costs some money, but it really works well,” said Ed Turnbull, owner.
Th ey’ve also included a chiller for water to lower the concrete temperature
during hot weather. Th at feature will be installed in June.
Pat Boyle, project manager for the new concrete plant, was guiding tours
during the grand opening.
“Th is is a state of the art facility. It’s a brand new plant from Quadra in
Vancouver. It’s fully automated. You’ve got indoor aggregate storage. Diff erent
aggregates are loaded from the outside onto conveyors.
“Everything has a backup support. Th ere’s overhead storage for rock and
sand. Th ere’s enough indoor storage to do 130 cubic metres of concrete without
refi lling – about 16 trucks. We load those trucks in four minutes,” he said.
On a platform one fi nds tanks for initial water storage for batching. Th ere’s
a large boiler for hot water, necessary for winter-time production. Without it,
the concrete won’t cure, Boyle said. Th e water system has a weight measuring
system as well.
Indoor bins feed a weight hopper equipped with a government-regulated
meter. Th e product is loaded into the truck outdoors on the west side of the
building.
Concrete has four components – sand, rock, water, and cement powered –
all of which are measured precisely.
Th e cement powder is stored in three 150 tonne bins. Th ey have two types
of cement powder in addition to fl y ash.
Automation makes the process greatly simplifi ed for the operator, accord-
ing to Boyle.
Rob Gatecliff , plant manager for Turnbull Redi-Mix, has a commanding
view from his offi ce. From the window beside the operator’s desk, one can peer
down directly to the cement trucks as they are loaded. “I can tell by the sound
of the product going it if it’s going to plug or run smoothly,” he said.
Outside, the steam system pumps “dry steam,” with 60 per cent of the
moisture content of regular steam, into the sand storage. Th at way it provides
heat, but less moisture than regular steam.
“It’ll hold heat for two weeks,” Boyle said. Th ey will run the heating system
for a weekend, and the sand stays warm for half a month.
Page B24
“Th ere’s no real
guarantee in this busi-
ness beyond maybe the
year ahead. You can’t ask
for much better, with
SaskPower, coal and
oil, and farming at your
doorstep. In years where
the oilpatch was slow,
we still had stability
from the coal and power
plants to keep our
economy moving.”
Heating aggregate makes for better concrete
Rob Gatecli , plant manager for Turnbull Redi-Mix, has a commanding view from his o ce. The window beside the operator’s desk allows a person to peer down directly to the cement trucks as they are loaded. The new Turnbull Redi-Mix plant can load a cement truck in four minutes.
B26 PIPELINE NEWS May 2013
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Bonnyville – It won’t be long before heavy duty AGM sealed lead acid
truck batteries outsell regular fl ooded lead acid batteries in the oilfi eld trans-
portation market.
Th at’s the belief of Michael Aspinwall who works for the electrical sales
group at Napa Auto Parts distribution centre in Edmonton. He sees the para-
digm shift taking hold in the market.
“A lot of the manufacturers are switching over now. Th ere are European-
made vehicles that have been using AGM battery technology since 2004,” said
Aspinwall.
“Nothing’s going to happen overnight, but as we are seeing more and more
vehicles coming with AGM batteries, it’s going to be natural changer.”
AGM stands for absorbed glass mat, which is a battery with the electrolyte
absorbed in a fi breglass mat separator between positive and negative plates.
Th e glass fi bre immobilizes the electrolyte, preventing it from spilling if the
battery is tipped over.
“It’s like a gel cell variant type of battery. It’s spill-proof and leak-proof. It’s
basically a gelled electrolyte,” said Aspinwall.
“It’s better for the environment, absolutely.”
During April sales visit to the Northern Truck & Industrial Supplies Ltd.,
an associate Napa store in Bonnyville, Aspinwall spoke about how AGM tech-
nology is turning the battery industry on its head.
He said the word is spreading quickly throughout the oilpatch that AGM
batteries are more resistant to freezing or cracking than standard lead acid bat-
teries.
AGM battery use trends upward
“It’s basically a dual purpose battery that allows the cold cranking amps
that customers need to start their vehicles,” said Aspinwall.
“It also gives them the beauty of a deep cycling type battery so that they
can run all of their electronics.
“Th is is why the manufacturers are switching, because of all the electronics
that are on the newer vehicles. Th e regular leaded batteries just can’t up with
the draw.”
East Penn Canada distributes more than 35 diff erent models of AGM
batteries to Napa, including versions of the 12-V Extreme FX with 925 cold
cranking amps (CCA) that are used by heavy duty trucks.
Th e deep cycle battery is designed to provide a steady amount of current
over a long period of time.
Th e True North Trail Off Highway Club in Grande Prairie recently posted
a testimonial from a member about the charging abilities of his new Extreme
FX battery on a club forum.
Page B27
Michael Aspinwall from Napa Auto Parts electrical sales group in Edmonton shows o the heavy duty Group 31 Extreme FX 925 AGM ba ery in stock at Northern Truck & In-dustrial Supplies Ltd., an associate Napa store in Bonnyville. AGM ba eries are catching on in the oil eld with their dual purpose ability to provide plenty of cold cranking amps while func oning as a deep cycling type of ba ery. Photos by Geo Lee
PIPELINE NEWS May 2013 B27
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Page B26“Picked up a Group 34 Napa Extreme FX
today,” wrote the member under the user name
Northernmedic.
“Tired of having to keep charging the Jeep ...
may as well have been a hybrid – 950 CCA, and
120 amp reserve capacity.
“Not cheap, but should work better than the
stocker for winching and the extra lights I have.”
He bought that AGM battery after reading an
earlier endorsement on the forum by a person with
the user name of HMFI.
“Napa has a new battery that they sold me for
my one-ton for the high current demand and rough
roads,” wrote HMFI.
“Night and day diff erence compared to factory
and AC Delco one I had in there. Th ey were $250
each with club discount, but they seem to be good.”
Aside from being resistant to vibrations, AGM
batteries don’t give off any gas during recharging.
Th e batteries also have a higher charge accep-
tance during recharges and have a longer service
life.
Aspinwall also noted more and more vehicle
manufacturers are off ering start-stop engines for
improved fuel economy and they require an AGM
battery to make them work effi ciently.
Th e start-stop technology popular in hybrids
idles the engine when the vehicle comes to a stop
and restarts the engine when the driver releases the
brake or engages the clutch.
“Because the manufacturers are not aware of
who is going to be driving where, and how many
times they’re going to stop, then an AGM is stan-
dard under the hood,” he said.
“It will also have a smaller AGM, maybe side-
ways underneath the left or right fender, to supple-
ment the starter and help all the electronics that are
in these vehicles.”
In Bonnyville, the Northern Truck Napa store is
also selling a variety of solar-powered products using
AGM batteries sourced from Carmanah Technologies
Corporation.
“We spec’d a little higher capacity AGM batteries
because they have much more resistance to the cold,”
said Aspinwall.
“When we put those batteries in, they take the
charge a little bit quicker so the solar panel doesn’t
have to be nearly as large to maintain AGM batteries.”
Driven by the demand by the oil and gas indus-
try, batteries of all types are the number one seller in
Canada for Napa’s electrical sales group
“In Fort McMurray, where temperatures are a wee
bit colder, the cold aff ects the batteries,” said Aspin-
wall.
“Our business in batteries up there has been
growing steadily every year for 10 years. It’s a double
digit increase every year.
“Bonnyville is the same thing. Th ere is a lot of
industry that requires good heavy duty batteries. Our
store in Bonnyville has a great stock of all the heavy
duty batteries that they require.”
Th e AGM batteries sold at Napa have a lead acid
base electrolyte so they are recycled to keep them out
of the landfi lls.
“Most of the distributors in the automotive mar-
ket have core recycling programs. We went to that in
October 2008,” said Aspinwall.
“It’s good for everyone all the way around because
the more lead we can return to our manufacturers, the
less they have to buy in the marketplace. It keeps the
price of batteries reasonable.”
“Th e batteries are collected by East Penn at all
Napa store locations on a regular scheduled route.
“We stock them in the store on proper pallets
with the proper separators.
“We’re only allowed to have so many in storage,
so East Penn does a really great job for us making
sure that they pick them up in a timely fashion,”
said Aspinwall.
Michael Aspinwall from Napa Auto Parts electrical sales group in Edmonton talks with Brent Ma ce about new AGM ba eries for solar-powered applica ons.
B28 PIPELINE NEWS May 2013
HDD Directional Drilling
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Servicing Southern Saskatchewan & Manitoba
Moosomin – You may not have heard of Algon-
quin Power Co., but your light switch has. Th at’s be-
cause a small fraction of the juice running through
it is coming from wind turbines operated by Al-
gonquin. In the future, even more of your everyday
electricity will come from them by way of long-term
power purchase agreements.
Algonquin runs the Red Lily Wind Farm near
Moosomin. Homer Lensink, director of energy proj-
ects in their business development group. He looks
after new power generation.
In 2010, they built the Red Lily project. In the
coming years, they will be building Saskatchewan’s
next two wind projects, substantially adding to our
provincial wind power generation.
Asked of the origins of Red Lily, Lensink said
in 2007 SaskPower ran a renewable power program,
soliciting bids. About a half-dozen contracts were
signed, including one wind contract.
“We were successful in winning a 25-year power
purchasing agreement, for a 25-megawatt power
project near Moosomin, just north of Highway 1,”
Lensink said.
Th ere was a slight revision to the contract with
the change of Saskatchewan’s government. In 2009,
they had their environment, zoning approval from
the municipality, and interconnection issues with
SaskPower resolved.
“We began building the summer of 2010,” he
said.
Th ere are 16 turbines, each 80 metres tall to cen-
treline of the rotor. Th e top dead centre of the rotor
is 121 metres tall.
Each unit is a Vestas V82, manufactured in Den-
mark in 2008. Lensink said, “Th ey came to the port
of Houston, Texas. Th ey came north to Saskatch-
ewan on a combination of rail and truck.”
Construction took place in the second half of
2012. “We went online, delivering electricity Febru-
ary 2011,” Lensink said.
“Each turbine has a rating of 1,650 kilowatts,”
he said. Th e result is just over 26 megawatts in total.
Twenty-fi ve megawatts is roughly equal to 35,000
horsepower. Th at power is generated “When the
wind is blowing strong, i.e. 10 metres per second or
35 kilometres per hour, then the needles on those
16 turbines pinned at the max and we’re making 26
megawatts.”
Page B29
Red Lily Wind Farm rst of several projects for AlgonquinRed Lily Wind Farm rst of several projects for Algonquin
This is the St. Leon wind farm in late summer. File photo
PIPELINE NEWS May 2013 B29
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Page B28Capacity factor
One of the criticisms of wind power genera-
tion is the variability of wind strength. While they
don’t always get that much wind, Lensink noted,
“In Saskatchewan, it blows very well, thank you very
much.”
Th e capacity factor describes how much ca-
pacity is produced on an annual basis. Th is factor
depends on location. He explained, “In Ontario,
we say the average capacity factor is 30 per cent. In
Saskatchewan, the number is actually 40 per cent
capacity factor. Sixteen megawatts is the average
output for the year.”
Lensink noted that technology is now fi ve years
old, and there have been continual improvements.
“Th e capacity factor for wind turbines is get-
ting better and better. Th e rotors are getting bigger
and bigger, the towers are getting bigger. Th e swept
area is increasing, and we’re seeing generally better
capacity factors,” Lensink said.
New turbines for 2014 might see a capacity fac-
tor of 42 to 45 per cent.
“Wind power is very much an evolving tech-
nology,” he noted. Coal-fi red plants, in contrast, get
100 per cent capacity, in that they always put out
power when turned on.
Manitoba experience calms worriesAlgonquin owns and operates the St. Leon
Wind Farm southwest of Winnipeg on the Pem-
bina Escarpment. It was developed in 2005. It uses
exactly the same turbines as the Moosomin project.
It had 100 megawatts worth of turbines built in
2005, and a further 20 megawatts added in 2012.
Th ey also see a 40 per cent net capacity.
Asked if they would be adding more turbines
in at Moosomin or St. Leon, Lensink said, “If the
market conditions are favourable, certainly.”
It was very helpful to have a similar wind farm
a few hours drive down the road from Moosomin
when they proposed the Red Lily project. Initially
they had some concerns expressed. “We organized
some three-hour bus rides to St. Leon. Th e durum
farmers from Moosomin went to see the canola
farmers in southern Manitoba and said, ‘How’s it
going?”
“Th ey were the best ambassadors for our proj-
ect, because they lived with it for four years. Th ere
wasn’t a peep.”
Th e Saskatchewan people spoke to the people
in St. Leon, which has a turbine just outside the
small community.
“Some even apologized to us,” Lensink said
after the tours were complete.
Two more projects coming in Sask.
“We have two more wind projects in Saskatch-
ewan,” Lensink said.
Th e fi rst is being done under GOPP – Green
Options Partners Program – with SaskPower. Th e
program used a lottery system to award a number of
contracts for hydro, solar and wind projects.
Th e next one will be another 25 megawatt
project near Morse. “It will look and feel almost
exactly like Red Lily at Moosomin. It will be spread
out like that. It will be just south of Highway 1,
between Moose Jaw and Swift Current.” he said.
Construction at Morse will begin to take place
in July or August of 2014.
Th e next project is the big one, at Chaplin.
“SaskPower ran another RFP (request for propos-
als) for 175 megawatts of wind.”
SaskPower has been taking heat for burning a
lot of coal, he noted.
Th is project will run fi ve to six kilometres north
of Highway 1 near Chaplin near where SaskPower
will be building a big new transmission line in 2015
It’s just east of the Morse project, and is scheduled
to come online in late 2016.
ConstructionWith such tall, narrow structures and massive,
spinning rotors, foundation construction is very im-
portant. Th ere are three kinds of foundations used.
Th e fi rst is a spread foundation, similar to the foot-
ings of a house, with a wide footprint. It’s 20 feet
deep and 65 to 75 feet across. It’s a combination of
rebar, cement and embedded anchor bolts.
Th e second type is used where bedrock is close
to the surface. It uses 80- to 90-foot long post-
tension anchors. Th at works in Ontario and south-
east Manitoba, but not in Saskatchewan, where the
bedrock is several kilometres deep.
Th e third kind was used at St. Leon and for
parts of Red Lily. Lensink described it as a “big
pop can,” giant pile 40 feet deep and 18 feet across.
Concrete is used to fi ll the inside.
Page B30
The Vestas V82 wind turbines at Moosomin were built with technology that was current ve years ago. In the me since, the capacity factor of wind turbines has grown several percentage points for new wind turbines. This turbine, an iden cal model, is at St. Leon, Man. File photo
B30 PIPELINE NEWS May 2013
Page B29 It takes three to four days to dig a foundation, and
then they must install forms and pour the cement. Classic Portland cement
takes 28 days to cure to full strength. On day 14, they can start putting on the
fi rst of four 20 metre tall sections of the tower. Th e next few sections can go up
between days 14 and 28. After the fourth week, it can go full height. Generally
it takes fi ve to six weeks from start to fi nish, and connection to SaskPower oc-
curs about two-and-a-half months in.
Co-ordinating all this over numerous sites spread over many miles, all with
curing schedules, can be a challenge.
“Th e whole construction cycle is a bit of a dance,” Lensink said.
Moosomin tipped out at about 85 workers, including tradespeople, su-
pervision, quality assurance and safety. Th ey used one massive erection crane.
Chaplin will likely require three erection cranes.
How long will they last?
Th e power purchase agreements have been signed for 25 years. But what
happens next?
“Nobody’s casting a vision of what they’re going to be like in 20, 25 years,”
Lensink said.
In that time period, the industry may have turned to hydrogen or fuel cells.
In year 26, they may need to do gearbox replacement, blade repair or replace-
ment. “It’s like managing any other long-term asset. Th e engineer says those
things have a certain life. Be prepared to put more money in.
“Th ere will be some revenue stream from that asset. It’s not like it’s going
to fall over.
“Someone’s going to want our power.”
Lensink looks back at past experience. In the early 1980s, three locations
had numerous sub-megawatt wind turbines installed, running 50 to 60 metres
high, with lattice towers. Th ose towers, 30 years later, “are done,” he said.
Th e industry is now “repowering,” taking old turbines down and replacing
them with new, fewer, larger and more effi cient machines. Lensink said, “Th at
is happening now.”
Factbox:
On March 21, Algonquin Power Co. announced it had acquired from
Kineticor Renewables Inc. all of the assets related to two proposed adjacent 10
MW wind energy development projects in Saskatchewan. In addition, a further
adjacent 5 MW was developed by Algonquin independently, bringing the total
development to 25 MW.
Th e projects will be developed with support from Kineticor during the
development phase, which is expected to be completed in late 2013.
Th e total annual energy production for the projects is estimated to be
93,000 megawatt-hours, and they are to be constructed near Morse, Sask., ap-
proximately 180 km west of Regina and 400 km west of the Phase I Red Lily
Wind Project. It is contemplated that the projects will be situated on 1,120
acres of private lands, with additional land under lease or option in order to
facilitate future expansion of the projects.
Acquisition grows Algonquin’s wind energy footprint in Saskatchewan
Red Lily (Moosomin)
Size: 16 turbines
Power: 25 megawatts
Cost: $70 million
Morse (2014)
Size: 10 turbines
Power: 25 megawatts
Cost: $70 million
Chaplin (2016)
Size: 77 turbines
Power: 177 megawatts
Cost: $355 million
Constructing a wind farm can be like a dance
PIPELINE NEWS May 2013 B31
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Edmonton – Th e governments of Alberta and
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mer meeting in Utah on a “Rocky Mountain High”
over the prospect of a cleaner energy future.
Saskatchewan Premier Brad Wall could join his
peers from Alberta and Colorado in Park City UT
June 28-30 as he has done in previous years.
Th e Alberta and Colorado governments aim to
strike a working group between provinces and states
at that meeting to pursue clean energy initiatives.
Th e two jurisdictions skirting the Rockies
agreed to work together after Colorado Governor
John Hickenlooper and Alberta International and
Intergovernmental Relations Minister Cal Dallas
toured the oilsands in late March.
“We welcomed the opportunity to explore eco-
nomic development opportunities for Colorado and
see fi rst-hand the operations in Alberta’s oilsands,”
said Governor Hickenlooper.
“Expectations are high for North American
energy producers and governments to continue to
raise the bar on environmental management.
“Colorado looks forward to building a co-op-
erative relationship with Alberta that will see both
jurisdictions excel as continental leaders in respon-
sible energy development.”
More than 28 Colorado companies provide
equipment, parts and services to the oilsands.
Th e Colorado delegation of more than 30
people also toured Edmonton’s world-class Waste
Management Centre and met with several business
leaders.
Alberta exports approximately $2.27 billion in
products yearly to Colorado. Th e state’s economy is
driven by the energy and agriculture sectors similar
to Alberta’s.
Dallas commended Hickenlooper for recently
spearheading an initiative between a number of
American states to increase the use of natural
gas vehicles in an eff ort to reduce greenhouse gas
emissions and increase fuel effi ciency, which would
result in a lower cost to consumers.
A company called Pioneer Natural Resources
in Denver, Colorado, for instance, plans to com-
plete the transformation of its entire fl eet of oilfi eld
trucks and pickups that number over 2,000 to
natural gas by 2015.
Th eir Peterbilt trucks are powered by natural
gas engines developed by Cummins Westport in
Vancouver, B.C.
Dallas said it’s worth a serious look to see
whether under the Canadian Energy Strategy,
Alberta and other provinces can forge a similar
agreement using natural gas.
“We applaud Governor Hickenlooper’s vision
and eff ort to address emissions,” he said.
“Colorado and Alberta have similar goals and
show leadership on environmental actions. Alberta
is very proud of its leading environmental actions.
However, we are fully committed to push the bar
higher.”
Alberta is currently waiting for feedback from
carbon emitting industries in the province about a
plan being fl oated to increase the carbon tax to $40
from $15.
Currently, large industrial polluters must reduce
carbon emissions intensity by 12 per cent or pay a
$15-per-tonne tax.
Under the proposed plan, they would have to
reduce emissions intensity by 40 per cent or pay a
$40-per-tonne tax.
Th e so-called 40/40 plan is led by Alberta
Environment Minister Diana McQueen who con-
siders it to be a compliance tool since companies
always have the option to reduce carbon emissions
or trade credits.
Th e carbon tax has generated $312 million for
Alberta’s clean technology fund. A total of $181
million has already been committed to 49 clean
energy projects.
Th e fund is in addition to a $1.3-billion invest-
ment in carbon capture and storage projects in the
province.
Colorado, Alberta shake on clean energy
PIPELINE NEWS May 2013 B33
East sideThere are plenty of racked rigs on both sides of Carndu .
Photo by Brian Zinchuk
B34 PIPELINE NEWS May 2013
Calgary – An oil tank terminal will be built in Saskatchewan if TransCan-
ada Corporation gets the support it needs to build its 4,400 kilometre Energy
East pipeline to carry crude oil from Western Canada to Eastern Canada.
Right now, the Calgary-based company is holding an open season to
obtain commitments from potential crude oil shippers to use the pipeline that
would transport up to 850,000 barrels of oil per day from Alberta and Sas-
katchewan.
“At this point, we know that this project is technically and economically
feasible,” said the company in an April 2 announcement.
“Our discussions with prospective shippers have been very positive and
lead us to believe that there is suffi cient demand for this project in the market.
“Th is open season is to secure the commercial underpinning from our cus-
tomers that will allow us to proceed with developing the pipeline.”
Th e season began April 15 and runs to June 17 and, if it’s successful,
TransCanada will proceed with regulatory applications to construct and
operate the pipeline with a potential in-service date of late 2017.
Th e Energy East pipeline proposal involves converting natural gas pipeline
capacity in approximately 3,000 kilometres of TranCanada’s existing Canadian
Mainline to crude oil service.
It also involves the construction up to 1,400 kilometres of new pipeline in
Alberta, Saskatchewan, Eastern Ontario, Québec and New Brunswick, along
with associated facilities.
Pump stations, tank terminals and marine facilities will be constructed in
order to successfully move the crude oil from Alberta to New Brunswick and
beyond.
Th e oil tank terminal in Saskatchewan will be one of three terminals built
along the line including one in Québec City and one in the Saint John, N.
B.area.
Th e terminals in the Québec City and Saint John areas will include facili-
ties for marine tanker loading.
Th e project will also include delivery to existing Québec refi neries in Mon-
tréal and near Québec City as well as the refi nery in Saint John.
Page B35
Saskatchewan to feed Energy East pipeline
PIPELINE NEWS May 2013 B35
Page B34
A new tank terminal will also be built in
Hardisty, Alta. where the pipeline will begin.
TransCanada said the project will benefi t Ca-
nadians economically across the country by creating
jobs and ensuring a stable, secure supply of oil.
Th e Energy East pipeline has the support of
politicians across the country who view it as a mar-
ket for Western producers.
Many leaders also see it as a way to eliminate
Canada’s reliance on higher priced crude oil cur-
rently being imported.
In 2012, Canada imported more than 600,000
barrels per day to supply its Eastern refi neries
On his Facebook page, Saskatchewan Premier
Brad Wall called it “a positive development” after
hearing the news on CTV.
New Brunswick Premier David Alward said on
CTV news: “Th is is a critically important project
that will benefi t all Canadians.”
Joe Oliver, Canada’s minister of Natural
Resources held a briefi ng for reporters in Ottawa
when TransCanada broke the news that it had
enough support to proceed with the open season.
“Our government strongly supports initia-
tives to construct energy infrastructure to transport
Western Canadian oil to the east,” said Oliver.
“It is in the national interest to replace higher-
cost foreign crude with lower-cost Canadian crude
to consumers and refi neries in Québec and Atlantic
Canada.”
Reducingdependence on imported oil
Watch that sledDeer in Carndu watch one of the many snowmobile rides of the season on April 19. Photo by Brian Zinchuk
B36 PIPELINE NEWS May 2013
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PIPELINE NEWS May 2013 B37
Calgary – Th e Canadian Association of Oilwell
Drilling Contractors was quick off the mark to
commend Finance Minister Jim Flaherty for giv-
ing skilled trades training a priority in the federal
government’s 2013 budget.
CAODC president Mark Scholz issued a same
day news release as Flaherty’s budget speech on
March 21 in support of a Canada Jobs Grant next
year and $241 million over fi ve years for First Na-
tions’ skills training.
“CAODC members welcome the federal gov-
ernment’s choice to promote the trades in its Eco-
nomic Action Plan 2013,” said Schultz on behalf of
Canada’s drilling and service rig industry.
Th e Canada Jobs Grant will replace the current
labour market agreements in the 2014-2015 fi scal
year and will provide up to $15,000 per person for
short-term jobs training.
Only $5,000 will be contributed by the federal
government, with matching contributions from
province and employers.
It’s the federal government’s way of dealing
with the growing number of jobs that are going
unfi lled, despite unemployment remaining around
seven per cent.
COADC pumped by training budget
Tempco Drilling in Nisku is a member of CAODC represent-ing Canada’s drilling and service rig industry. The organi-za on has voiced its support of the federal government’s 2013 budget focus on training skilled workers needed in the oil eld. Pictured is Tempco’s Rig 2 that underwent a retro t in 2011. File photo
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Th e training, which is projected to help 130,000
people, will be delivered through colleges and union
organizations including CAODC rig technicians or
motorhands who operate oil and gas drilling rigs.
Rig technicians maintain drilling rig engines,
transmissions, heating systems, diesel electric
generators and motors, hydraulic systems and other
mechanical equipment.
Th e drilling industry’s rig technician trade is
standardized across provinces, a feature that the
2013 budget aims to encourage in more trades.
CAODC said employers in the industry have
also been challenged in attracting under-represent-
ed groups such as aboriginals and newcomers.
Scholz welcomes the federal government’s
$241 million investment to help First Nation youth
across Canada access skills and training they need
to participate in the industry.
“Th e budget off ers some good bridging op-
portunities between jobseekers and industry,” said
Scholz.
“We support the reallocation of $19 million
over the next two years to inform young people
about the trade opportunities within the drilling
and service rig industry.
“Th is is an important demographic to educate
and attract into the industry as our labour demands
continue to grow.”
B38 PIPELINE NEWS May 2013
Calgary – Husky Energy Inc. has contracted
MicroSeismic Inc. to provide real time monitoring
and mapping of its hydraulic fracture operations
in its unconventional oil and gas and shale plays in
Western Canada.
MicroSeismic, based in Calgary, will install its
40th BuriedArray surface microseismic monitoring
program for Husky for an unspecifi ed application
or location.
“Th is is another milestone for MicroSeismic as
we celebrate our 10th year in business,” said Peter
Duncan, founder and CEO of MicroSeismic in a
March 21 news release.
“We were the fi rst to commercialize near
surface microseismic acquisition in 2009 with the
BuriedArray.”
MicroSeismic pioneered the use of surface
microseismic monitoring to listen to the naturally
occurring, low-energy seismic noise emitted from a
reservoir during hydraulic fracturing stimulation.
Utilizing surface and near-surface arrays, Mi-
croSeismic helps oil and gas companies understand
how the reservoir responds to stimulation and its
impact on economics.
“Th e rapid adoption of the solution by custom-
ers helps demonstrate its value,” said Duncan.
“It is an excellent solution for companies who
want to cost eff ectively improve fi eld development
plans and not extrapolate from single well results.
“We are pleased to work with Husky to assist
them in achieving their production goals.”
More than 95 per cent of the wells drilled by
Husky in Western Canada in 2012 targeted oil.
Drilling and well completions were optimized
to increase productivity and reduce costs.
Th e company is also continuing to advance it
liquids-rich resource portfolio in the multi-zone
Ansell and Kaybob areas of west central Alberta.
Th e BuriedArray service is ideal for operators
like Husky that need to monitor multiple wells or
require monitoring through the life-of-fi eld.
MicroSeismic’s BuriedArray data acquisition
service deploys a permanent array of geophone
strings installed in the near surface and can monitor
areas of more than 500 square miles.
Th e BuriedArray monitoring service uses pat-
ented passive seismic emission tomography (PSET)
technology to provide results that show how frac-
tures are propagating during the well treatment.
In addition, by determining source mechanisms,
PSET processing provides a greater understanding
of the eff ectiveness of the stimulation treatment.
Th e wide area coverage provides economies of
scale. As more wells are monitored under the same
array, costs decline relative to other microseismic
acquisition techniques.
MicroSeismic said the ability to monitor large
areas repeatedly with the same equipment leads to
more strategic fi eld planning and development and
the ability to monitor re-fracs.
U.S. based MicroSeismic Inc. expanded to Calgary several years ago and has grown in sync with hydraulic fracking primarily in shale oil and gas plays in Western Canada. The company has secured a contract with Husky Energy using BuriedArray technology to provide real me monitoring and mapping of Husky’s hydraulic fracture opera ons. This is a le photo taken during MicroSeismic’s presenta ons at a Society of Petroleum Engineers’ annual Technical Confer-ence and Exhibi on in Denver, Colo. in October 2011.
Real time mapping of hydraulic fracturing
PIPELINE NEWS May 2013 B39
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B40 PIPELINE NEWS May 2013
NEWSPIPELINE SECTION C
May 2013
By Brian ZinchukTorquay – It’s literally the missing link when it
comes to the carbon capture and storage plan for
Saskatchewan, but it’s a link that is soon to be built.
Th is summer, Cenovus will build a 10-inch
pipeline from Boundary Dam Power Station, 65 ki-
lometres to its CO2 manifold just east of its main
Goodwater facility.
Th e new pipeline will do several things, includ-
ing providing SaskPower with an outlet for it soon-
to-be captured carbon dioxide other than the Aqui-
store injection well adjacent to the Boundary Dam
Power Station. While the price for the CO2 is being
kept private, it will mean a revenue stream for Sask-
Power from the sale of CO2.
For Cenovus, it will give the company a diversity
of sources for carbon dioxide. If it encounters any
supply issues with its up-until-now only supplier,
Dakota Gasifi cation in Beulah, N.D., it won’t be left
high and dry until the CO2 can begin fl owing again.
But there’s one more thing that hasn’t, until recently,
been explicitly said to the public. Th e addition of the
new SaskPower-sourced CO2 will allow Cenovus to
dramatically expand its CO2 fl ood enhanced oil re-
covery operation in the south Weyburn fi eld.
Right now, Cenovus takes delivery of approxi-
mately two million tonnes of CO2 per year from Da-
kota Gasifi cation. SaskPower’s planned one-million
tonnes per year will be close to a 50 per cent boost.
Rhona DelFrari, Cenovus director of media re-
lations, spoke to Pipeline News at a open house held
in Torquay on April 9. Attendance was light, with
roughly 30 people in total present, including several
representatives from Cenovus and SaskPower.
“It’s an opportunity for people in the area to
learn more about the new carbon dioxide pipeline
that we have planned,” she said of the open house.
“At our Weyburn operation in Saskatchewan,
we’ve been injecting CO2 to enhance our oil recov-
ery. Since 2000, we’ve been getting all our CO2 from
Beulah, North Dakota, from a coal gasifi cation plant
there. When SaskPower created the opportunity
to have CO2 with their new capture project at the
Boundary Dam Power Station, they off ered us the
opportunity to purchase the CO2 that they are cap-
turing there.”
Th e agreement to purchase was announced just
before Christmas 2012.
“What this does for Cenovus is provide us two
sources of CO2. Th at reduces the risk. For example, if
one of the sources had to be down for maintenance
for awhile, we have another source, so our operation
can keep open.
“It gives us more options for expansion of our
CO2 fl ood. Currently we have about 60 per cent of
our Weyburn operation under CO2 fl ood, and we
would be looking at in the future potentially expand-
ing that.
“Th at’s always been part of our plans. We’ve al-
ways known there was great potential across the res-
ervoir at our Weyburn operation for additional CO2.
Potentially in the future we would move our CO2
fl ood out to diff erent areas, beyond that 60 per cent
that it’s currently covering.
“One other thing we would use that CO2 for is
to optimize our current fl ood. Our reservoir engi-
neers took a good look at the reservoir; they sug-
gested injecting more CO2 into certain areas of the
current fl ood area that we might be able to get a little
more oil out of the ground there. ”
Th e current fl ood is seeing a recovery factor of
40 per cent or more. When asked how much of an
increase this could mean to recovery factors, she said,
“We don’t know yet. Th at’s what they want to check
out by injecting more CO2.
DelFrari stressed the main reason for the pur-
chase of CO2 from SaskPower was diversifi cation of
supply.
“Right now our plans is to take from both sourc-
es. We think we can handle that right now.”
Page C2
Cenovus spokesperson Rhona DelFrari explained the details of the new pipeline.
Cenovus to expand CO2 ood by almost 50%Pipeline to connect Boundary Dam project to CO2 ood
C2 PIPELINE NEWS May 2013
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Page C1“It gives us more options for expanding the
fl ood and for putting more into the current area for
optimizing.”
Th e pipeline will run 65 kilometres from a
custody transfer station at the edge of SaskPower’s
property surrounding the Boundary Dam Power
Station. SaskPower will have its own pipeline run-
ning a few kilometres from the power station to the
transfer point. Th at route had not been fi nalized as
of early April.
According to Doug Nixon, associate manager
for integrated carbon capture and storage project
Boundary Dam Unit 3, two routes were being
considered. One runs south of the capture plant and
to the west, hooking northwest past the Aquistore
well to transfer point. However, this route would
cross a lot of existing infrastructure and could be
problematic if plans for future additional carbon
capture capacity go ahead. Th e other route takes the
line straight north and then due west, parallel to
Highway 18. A spur line would run to the Aquis-
tore well.
Th e Aquistore injection and observation wells
were drilled last summer and fall. Th e deepest wells
in Saskatchewan, they make up a research project
administered by the Petroleum Technology Re-
search Centre. Th ey will be used for deep saline
aquifer storage of carbon dioxide. Th e injection well
will see a lot of action during the commissioning
of the carbon capture plant, and again whenever
CO2 is being captured, but Cenovus is not able to
receive it. Th is could happen during maintenance
operations, for instance. Otherwise it is SaskPower’s
intention to deliver all its captured CO2 down this
new pipeline to Cenovus.
Roughly two-thirds the new pipeline will fol-
low the route of the existing Souris Valley Pipeline
that is currently supplying CO2from Beulah. Th at
line is owned by Dakota Gasifi cation, but the new
line will be owned by Cenovus.
“We’ve been talking to landowners along the
way.”
About 65 landowners are aff ected.
Th e diff erence between the two sources is the
gas from Dakota Gasifi cation is sour with several
per cent H2S, but the gas from SaskPower will not
be.
“Other than that it has the same amount of
purity,” she said.
Twila Walkeden, also of Cenovus, said there
has been no opposition to the new line, and noted
that there’s a level of comfort due to the fact there’s
an existing line in place.
“I think the people of this community should
be pleased to see Cenovus is investing even more
into this community. We have a great amount of
confi dence in our operations here in that we’re
planning for the future,” DelFrari said.
“Initially we said injecting CO2 into the fi eld
would extend its life 20 to 30 years. Now we say,
‘Who knows?’ As technology develops, in any kind
of oil industry we’re able to get more oil out of the
ground and keep operating longer. So who knows?
“It’ll be a few decades, for sure.
GOODWATER
TORQUAY
Cenovus UnitBoundary
Grid
Roa
d #6
06
Long Creek Railway
Highway #18
Rafferty CO2 Pipeline Route
Proposed Interconnect Pipeline Route
Boun
dary
Res
ervo
ir
MAINPRIZE PARK
CENTRALRECEIVINGTERMINAL
BLOCKVALVE
CUSTODY
STATIONTRANSFER
AQUISTOREWELLS
SPCPOWER
STATION
TABLELANDRAFFERTYOUTRAM
ESTEVAN
Highway #39
Rafferty Reservoir
ISSUEDMAR.12/130
REVISIONSDESCRIPTIONDATENo.
Altus Geomatics
Rafferty CO2 Pipeline Route12-12-2-9 W2M to 06-34-5-13 W2M
Scale 1: 50,000
= Rafferty CO2 Pipeline Route
RGE 10 RGE 9 RGE 8RGE 11
RGE 12RGE 13
TWP
1TW
P 2
TWP
4TW
P 5
TWP 3TWP 2
TWP 3
TWP 2TWP 1
TWP
3
TWP 4TWP 3
TWP 5TWP 4
RG
E 1
2R
GE
11
RG
E 1
3R
GE
12
RG
E 1
1R
GE
10
RG
E 1
0R
GE
9
RG
E 9
RG
E 1
1
= Proposed Interconnect Pipeline Route= Primary Roads= Cenovus Unit Boundary
LEGEND
= Railway
RGE 8
Souris-Moose Mountain MP Ed Komarnicki, le , discuss-es the new CO2 pipeline with Trevor Bors, manager, facil-ity engineering, with Cenovus.
Grid
Roa
d 60
6
EstevanTorquay
Goodwater
Weyburn unit
SaskPower Boundary Dam station
Highway 18
Cenovus Energy proposed Rafferty CO2 pipeline project
Proposed pipeline is expected to be approximately 66 kilometres long
Open house held in Torquay for CO2 pipeline project
PIPELINE NEWS May 2013 C3
Reeve of the RM of Cambria Darwin Daae (le ) and Torquay Mayor Michael Strachan checked out the Ceno-vus open house.
Lorne Hanson, centre, already has one CO2 pipeline on his property. He will soon have two.
Filling the gymnasium of Torquay’s defunct
school, now a community centre, Cenovus had
numerous displays at its open house on April 7
detailing its planned CO2 pipeline from Boundary
Dam Power Station to its Goodwater plant.
While there wasn’t a large turnout, many elect-
ed offi cials were present. Souris-Moose Mountain
MP Ed Komarnicki was present almost the entire
evening. Komarnicki was a player in getting federal
funding for the carbon capture project.
Torquay Mayor Mike Strachan was one of
those checking out the project, along with Darwin
Daae, Reeve of the RM of Cambria.
“I think it’s good for the area,” said Strachan,
who works as a coal miner.
“Any growth is good,” said Daae.
Strachan referred to recent changes in green-
house gas emissions regulations, saying, “With new
environmental regulations, this is the way to go.”
His biggest concern was housing workers for
the project.
For the RM, Daae said, “We talked to Cenovus.
It was just minor little things.”
Cenovus is meeting all the rural municipalities’
concerns, he said.
Lorne Hanson is one of the landowners af-
fected. He already has the existing Souris Valley
Pipeline crossing his land, taking CO2 from Beulah,
N.D., to Goodwater.
“It’s good for cleaning up the old oilfi eld and
jobs, and cleans the air at the power plant,” Hanson
said.
“It’s the consumer that pays the cost of it all;
farmers buy fuel at one hell of a price.”
Th e only concern he raised was drainage. Once
a pipeline is in the ground, you can’t dig a ditch
across it. “A few years ago when it was wet, we
couldn’t trench deep enough.”
He added, “We probably could be paid better
for it.”
Local reaction to CO2 pipeline
C4 PIPELINE NEWS May 2013
3D3D MAINTENANCEMAINTENANCECell numbers: Cell numbers: 483-8024, 483-7024, 483-8148483-8024, 483-7024, 483-8148
Home number: 486-2143 • Fax: 486-4855Home number: 486-2143 • Fax: 486-4855Box 12 Frobisher, SK. S0C 0Y0Box 12 Frobisher, SK. S0C 0Y0
[email protected][email protected]
By Brian ZinchukRegina – It didn’t get a lot of attention when announced as part of the
2013 provincial budget, but there was one line item that has indicated a change
in policy for the Saskatchewan Party government.
Ever since they were elected in 2007, the Saskatchewan Party, through
speeches by either Premier Brad Wall or his ministers, has said time and time
again they would not touch the royalty regime brought in by the predecessor
NDP government. Yet on page 10 of the Budget Summary, it was noted the
Saskatchewan resource credit (SRC) would be reduced by a quarter point.
Th e change is small, relatively speaking, on a very distinct set of criteria.
For oil and gas, it doesn’t aff ect any wells newer than 2002. But it is a change.
Th is reduction of a tax credit is, in eff ect, an increase in the taxes collected
on natural resources. It did not receive mention during Finance Minister Ken
Krawetz’s budget address delivered in the legislature on March 20.
He noted, “Mr. Speaker, as I mentioned, this budget is a balanced budget.
At a time when most other jurisdictions continue to struggle with large defi cits
and mounting debt, Saskatchewan’s fi nances remain sound.
Page C5
Is a reduction of a resource credit a change in royalties?
Kent Cambell, deputy minister of the economy, explained changes to the Saskatchewan resource credit. File photo
PIPELINE NEWS May 2013 C5
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Th e strip price for natural gas over the next fi ve
years that the provincial budget forecast in March is
pretty dismal. Th at will have implications on natural
gas drilling, according to Deputy Minister of the
Economy Kent Campbell.
“We think if prices remain as low as we’re
expecting, we’re not going to see a lot of natural gas
drilling in Saskatchewan. It’s just not competitive –
minimal drilling and production – almost nothing.
“In terms of number of wells, less than 50, and
those are probably to hold onto properties.”
Prospects for natural gas drilling very poor
Page C4“Th at said, it’s no secret that resource revenues
are down. So in order to achieve that balance, our
government has to control spending.”
Kent Campbell, deputy minister of the econ-
omy, explained the change to the Saskatchewan
resource credit to Pipeline News by phone.
“It’s not a royalty in itself. It is a credit against
Crown royalties and production taxes payable on
the production of oil, natural gas, potash, uranium
and coal. It’s really meant to compensate for the
resource surcharge, which is a tax – three per cent,
on the value of sales, on all mineral and resource
production. Th ree per cent of your sales, you pay in
a resource surcharge to Finance,” he said.
“Th at’s been in place in various levels since
1988. Th e Saskatchewan resource credit is a credit
against that in the royalty system. You pay the re-
source surcharge, and you deduct the credit against
your royalties payable.”
It was part of the corporate capital tax, but it
now just applies to resource sectors.
“Th e change that was made as part of this
budget was reducing the value of the credit by 0.25
percentage points. When it comes to oil and gas,
the value of the credit was either one per cent or 2.5
per cent of the value of production, depending upon
the type of well and when it was drilled.
“Any production after September 2002 doesn’t
receive credit at all. We made some royalty changes
back in 2002 and got rid of the credit altogether
and worked it into the royalty curves.”
It will have no implications for future drilling
or anything drilled after 2002.
Wells drilled prior to 1998 that fi t the criteria
had a one per cent credit, and those drilled from
1998 to 2002 had a 2.5 per cent credit. A 0.25 per
cent reduction of the credit in fact means wells
drilled prior to 1998 will see a one-quarter reduc-
tion in the credit, and those drilled from 1998 to
2002 will see a one-tenth reduction in value of the
credit.
“It’s not a lot,” Campbell said. Th e increase
to the provincial revenue is expected to be $22.3
million, of which $7.4 million is from the oil sector
and $300,000 from the gas sector. Th e remainder
will come from potash, uranium and coal.
Overall, the province is expecting royalty
revenue and projected land sales to come in at $1.5
billion for the 2013 fi scal year. Th at’s down from
the $1.9 billion that had been projected for the
2012 fi scal year.
Last year’s budget set oil’s expected price at
$100.50/bbl. for WTI. Th is year, that number is
down to $92.50, based on at least 10 private sector
forecasts. Natural gas is done the same way.
“It was a very tight budget, and one of the
priorities was a balanced budget. Th at’s very impor-
tant,” Campbell said regarding the adjustment to
the SRC.
In the same budget, the ethanol grant was
scaled back by a third. Th at grant will eventually be
phased out entirely. But there was no interested in
adjusting royalties rates themselves, he said.
While there was no consultation with industry
regarding the change to SRC, Campbell said sig-
nifi cant changes in royalties would have extensive
consultations.
C6 PIPELINE NEWS May 2013
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Regina – Deep in the March 20 provincial budget is a reduction of one-
quarter of a percentage point of the Saskatchewan resource credit. It’s an
obscure tax credit that, in the oil and gas sector, only aff ects wells drilled prior
to 2002. Th e change will result in the oil and gas sector paying an additional
$7.7 million to the province, pocket change on $1.5 billion in natural resource
revenues. But the New Democratic Party opposition has picked up on it, espe-
cially the symbolism.
Energy and Resources critic Buckley Belanger, MLA for Athabasca, was a
minister when the current royalty regime was put into place, having formerly
held the positions of minister of Environment, Northern Aff airs, Community
Resources and Highways and Transportation.
“(Premier Brad) Wall has said on numerous occasions, probably a thousand
times, they wouldn’t touch royalties at all. ”
With no prior signals to the industry, Belanger said, “We’re surprised at
this. Page C7
Wall said they wouldn’t touch royalties, NDP point out
Buckley Belanger, MLA for Athabasca, is the NDP cri c for energy and resources. Photo submi ed
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Page C6“We have to see the math on this.
“Th e process has to be more transparent. We need to know these things.
Th ese kinds of surprises are quite frankly a shock.
“From our perspective, even though it’s an obscure move by the Saskatch-
ewan Party, consultation is always the fi rst step.
“We need to see them coming.”
Th e change did not see a lot of reporting in the media in the immediate
aftermath of the budget.
“Our research team found this after after a number of hours,” Belanger
said.
“It’s a really a mixed signal. You need to know these things. You can’t be
surprised by things of this sort.”
“Th e whole issue is, generally you should be able to count on the word of
the premier when he makes statements on a continual basis. He’s indicated this
time after time.
“It is prior to 2002, and the changes are going down .25 of a percentage
point,” he said, ackowledging the changes were relatively small.
NDP values oil sector“Th e NDP knows the oil sector is very valuable. We understand that 100
per cent. We’ve always been supportive of Keystone XL pipeline.
“Th e NDP is supporting the Keystone XL pipeline.”
“We know the value to the province as a whole.
“We know how valuable a booming economy is to the province. People are
going to work, they are moving to the province, they’re making investments in
the province.
“It’s all common sense. Th e oilpatch provides opportunity not only for the
working man and woman, but also for the economy as well. We need to be very
clear on that front,” Belanger said.
“Th e industry is the fi rst player you would consult. ‘Look folks, we’re going
to do this.’ I’m sure this surprised the industry overall.
“December is when the budget is determined. It’s still a signal to industry.
At the very least, industry should have been consulted before the budget is
drafted. Th is way, there’s no surprises,” he said.
Does this open the door for more changes in royalties?
Belanger responded, “Th e main thing is the process needs to be transpar-
ent. I can appreciate the industry wanting to invest in the province. Without
industry, Saskatchewan can’t do it alone. Th at’s why important for people, not
just in the oilfi eld sector, but in potash, coal and uranium. All these big oppor-
tunities we have as a province – we know, and we embrace the private sector’s
role in this. When we talk about, is this the opening for a new era, one of the
fi rst things we would say is consultation is always the fi rst step. It’s a respectful
step to take.
“Th e second thing, from my perspective, when I look at the oilpatch as
an NDPer, I feel there’s incredible economic opportunity. I’m not just talking
about the jobs, and the injection to government coff ers. Th ere’s a real, solid
value in the oilpatch. Th e only thing I think we get a bit criticized for is when
we look at the environmental challenges attached. We can fi x those together.
Th e fi rst thing we should do as a party and a province and a government is
consult with the impacted parties.
West-east pipelineBelanger is strongly in favour of the plan to convert part of the TransCana-
da mainline system from gas to oil service, shipping crude to Eastern Canada.
“If there’s some way we can work together with the industry, I know we’re
losing millions of dollars shipping our crude to the States, and it’s quite a ways
with the Keystone XL pipeline. If we can somehow look at the west-east con-
nect, we’re looking at billions of dollars, I’m not exaggerating, billions of dollars
in revenue for the oil and gas companies and the government as well. As we in-
crease the coff ers for the companies, we increase it for the government as well.
“Not only are you not sending raw product to the States, you’re prepar-
ing for what happens if the U.S. stops taking our crude oil. And start look-
ing at your own source of oil – you can add value to your crude oil. With our
own eastern-based companies, that can do a lot of the value-added,” Belanger
concluded.
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Estevan – Th e Desk and Derrick of Southeast Saskatchewan members got
a chance to see how the other side lives on April 15, when they toured Estevan
Wellsite Trailer Rentals.
Estevan Wellsite is owned in part by Desk and Derrick member Brenda
Noble. She and her husband Virgil, along with Randy and Susan Olney, are
partners in the rental outfi t that has been around for 18 years.
“We incorporated in 1995. We bought two trailers,” said Noble prior to the
tour.
Th e company would buy a few at a time to build up the fl eet over the years.
“In the last year, we bought six. We’ve sold four already.”
“I’ve never spent one night in a trailer,” Noble told her compatriots, but
added that Randy Olney will spend much of a year in one in his capacity as a
wellsite drilling consultant. “He knows what the industry requires,” she said.
“We have four types of trailers,” Noble said.
One design is the 50/50, which is often used for engineers and consultants
or geologists. Th e geologist side has a heated sink.
Th ey have several four-bed units, with four separate bedrooms. Each has its
own entrance, bed, TV and bathroom. Th ere’s a common laundry area.
A command centre, she said, is “all offi ce.”
Finally they have a few “super singles,” which are used primarily by wellsite
consultants. “Randy lives in one 300 days a year,” she said.
Access to television is important to the clients. Noble said, “We have 10
trailers and 24 satellites.” Th at engendered a lot of laughs from the women in
attendance.
Th e units, also known as “shacks,” are made by Tru-Co at Nisku, Alta.
Th e trailers have been used by several of the larger operators in southeast
Saskatchewan.
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Estevan – Th e Saskatchewan Energy Training
Insitute’s (SETI) fi rst job fair was well received by
the companies in attendance, but several wished the
timing had been a little diff erent.
Th e event was held on April 3 during the Eas-
ter break, meaning high school students were not in
class. Th at, in turn, meant a lower turnout, as those
students were scattered to the winds.
Classes were on at SETI, however, and those
outside the education system came in as well. Th e
number of people who attended each booth varied.
“My count was around 70,” said Susan Mack of
Canyon Technical Services towards the end of the
day.
SETI holds its rst job fairSETI holds its rst job fair“We got quite a few prospects.”
“A lot of our men are on rotation. We want to
hire as many locals as we can,” said Shawn Maclean,
base manager for Canyon, adding they will return if
the event is repeated.
Shayne Fenrick, a motorhand on Panther Drill-
ing Rig 1, talked to many of the interested people.
His counterpart, Shannon Leas, who does human
resources and safety work for Panther, said, “It
helped having someone to talk to.”
She added it was a slow day and they would
have preferred the event had been held during
school days.
Jodie Pratt with PetroBakken said they got a
few resumes. Some people went directly to their
offi ce to drop off resumes. Th ey are looking for
operators and administration staff .
Chris Mack, manager of production systems
division with Weatherford in Estevan, said, “Expe-
rienced people are hard to fi nd. We’re pretty much
fully staff ed in my division. We’ve got some good
people, and we do what we can to keep them.”
Damon Vincent spoke to Macey Menzies and
Sandra Chadney with CanElson Drilling. He said,
“I’m seeing what’s available. I just moved here from
Moose Jaw.”
Originally from Oxbow,Vincent said, “Th ere’s
lots of opportunity here. I’m 21. I have experience
in construction, not so much in the oilfi eld.”
Sherritt Coal’s Monty Blomberg said they are
looking for at least 10 equipment operators, plus
tradespeople like electricians and welders.
Mike Waldner, general foreman with Sherritt,
said they’re also looking for administrative staff .
“We never turn down if the right person walks
in the door and the credentials are there.”
SETI campus manager Sheen Onrait said,
“SaskPower came in and hired our power engineer-
ing class, all that weren’t already hired.”
Konstantin Toroshchin spoke to Onrait about
educational opportunities. “I moved here two years
ago from St. Petersburg (Russia).”
He fi nished a hotel management program, and
was working at the Hilton in Niagara Falls, but he
was making only $11 an hour. He moved to Este-
van last August, and has since worked on service
rigs and on wireline. Now he’s looking to pick up a
trade.
Onrait said, “Th is is our fi rst attempt at a job
fair. We had an advisory meeting in December.
Companies asked for it.”
Th ey wrestled with the timing – should it be
during a school break or not?
Upwards of 100 people attended. Companies
were charged a nominal fee for a booth.
Will there be another job fair at SETI next
year? “Absolutely,” Onrait said.
Damon Vincent, right, spoke to Macey Menzies, le , and Sandra Chadney with CanElson Drilling.
PIPELINE NEWS May 2013 C11
Montreal – How much wind power can our grid take? Th at’s a good ques-
tion, according to Jean-François Nolet who is vice-president, policy and gov-
ernment aff airs, with the Montreal-based Canadian Wind Energy Association
(CanWEA). He said utilities are conservative, and that’s a good thing.
“We ask them to be conservative.
“I think we’re learning. Wind is very new in Canada. We’re seeing coun-
tries in Europe with penetrations of 20, 25, 35 per cent. We can increase our
wind penetration in Canada. Currently we have two to three per cent total
electricity consumption in Canada. Clearly wind can grow.”
Provinces like British Columbia, Manitoba and Quebec can tolerate a lot
of wind, because they can use their large hydro assets to back stop the turbines
when the wind doesn’t blow. “Th e dams act as a battery,” he said. “When the
wind doesn’t blow, you release water.”
Provinces that rely more on coal have more of a challenge.
Prince Edward Island has 11 to 12 per cent penetration. Quebec will hit
between fi ve and six per cent by 2016. British Columbia, on the other hand,
only has 390 megawatts installed capacity. Saskatchewan is aiming for 8.5 per
cent wind.
“Saskatchewan is clearly a leader on that front. Ontario will be around four
to fi ve per cent.
Th e optimal wind penetration in Canada is a question that will be ad-
dressed over the next two or three years, he noted. Work is underway in the
United States to integrate up to 20 per cent wind.
To increase wind usage, however, provinces will need to invest billions into
their grids, upgrading old infrastructure.
Wind power generation in Saskatchewan has hardly had a whisper of
resistance, compared to Ontario, where the provincial government has pushed
hard to develop wind power generation.
“It’s a completely diff erent experience,” Nolet said of Ontario, pointing out
that province has thousands of megawatts of wind turbines being developed.
Ontario has a great wind resource in the north. But where projects are being
developed in the southwest, there’s a “fairly high level of population density.”
Ontario has had a controversial feed-in tariff for wind development, mean-
ing that a premium will be paid for wind-generated energy. But SaskPower
does not have such a tariff for current wind projects.
In Ontario, he said, “Our industry has learned a great deal.”
Do you have to have a feed-in tariff to make wind competitive?
“No, it’s a very simple answer. Feed-in tariff is an eff ective way to procure
renewable energy,” Nolet said, citing Germany, Denmark and Ontario. But
other than a small project in Nova Scotia, feed-in-tariff s are not being used in
the rest of Canada. Over 1,500 megawatts of wind power generating capacity is
installed in Quebec, and it will reach a 4,000 megawatt target, without a feed-
in-tariff .
Canada currently only generates two to three per cent of its power from wind.
Photo courtesy SaskPower.
How much wind power generation can we use?
“Wind can compete on its own,” Nolet said, adding, “currently, it’s cheaper
than coal. Th e only source that is cheaper to develop is combined cycle gas, due to
the historical low prices in North America. We don’t know what’s going to be the
price of gas in 10, 15, 20, 25 years.”
Wind generation is procured by call for tenders for wind specifi cally, or for
renewable energy, he said.
SaskPower has developed several natural gas turbine plants, either its own,
or contracted out to third parties, to backstop wind turbines for times when the
wind doesn’t blow.
“Gas and wind are a very, very good match. Th e same thing for large hydro.
Wind alone is not an option,” he said.
C12 PIPELINE NEWS May 2013
Battleford – If area manager Corey Chmelnyk could train his new shop
dog, Finn, how to drive a dozer or a BobCat, it would be on the payroll at
Strike Energy Services Inc.
Th at’s how busy it has recently been lately for Strike Energy in Battleford
which has seen a lot of two legged help hired to keep up with the demand for a
growing volume of pipeline construction and facilities work in the area.
“We actually ramped right up this winter and had a fair amount of staff
going,” said Chmelnyk.
“We had some really good crews out there – some good manpower and
some good experienced guys.
“Th at’s the key, is having those types of guys. Your jobs go a lot better and,
of course, they are safe. At the end of the job you turn over some profi t.”
Th e Strike Battleford branch is coming off a strong fi rst quarter in 2013
and a record year in 2012 for the corporation with 14 locations in Western
Canada.
“It’s been excellent. Basically, we doubled our sales budget for the fi rst
quarter already,” said Chmelnyk as Finn’s tail wagged in approval.
“Th ings are looking really good for the rest of the year as well.
“We had an excellent January, February and March. We’re very happy and
hopefully, it continues like that through the rest of the year.
“In talking with all our clients, everyone’s pretty positive they’re going to be
doing a lot of work.”
Most of Strike’s workload this year is being driven by the need for pipe-
lines for water disposal and water injection sites by
clients including Husky Energy, Canadian Natural
Resources and Northern Blizzard.
Most of their pipeline and facilities work is tak-
ing place in the busy Vawn, Edam, Turtleford, and
Maidstone areas, about 70 kilometres west of the
Battlefords.
Cat dozers and excavators are used to trench
composite pipe such as fl ex steel or fl ex pipe along
with some steel pipe lined with high density poly-
ethylene.
“A lot of times we are running dual lines, so
they’ll run a water line along with a fuel gas line,”
said Chmelnyk.
“We have been ditching it all in the past – not
much plowing going on.”
Page C13
Strike hits the ground running in 2013Strike hits the ground running in 2013
Corey Chmelnyk, area manager for Strike Energy Services in Ba leford, takes a phone call. Strike is o to a ying start in 2013 with loads of composite pipeline work for water disposal and water injec on facili es.
PIPELINE NEWS May 2013 C13
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Page C12 Strike is also doing a lot of work for at Husky’s staged
10,000 barrels per day steam-assisted gravity drainage or SAGD project at
Rush Lake, north of Payton, where with fi rst oil is expected in 2015.
A second well pair is being advanced to production in the second quarter
of 2013 following the 1,000 bpd performance from the initial single well-pair
pilot in 2012.
Water for the steam project is being sourced from water wells near the
North Saskatchewan River.
“We tied in a whole of bunch of water wells just recently for Husky, just
west of Edam down at the river. All that water is going to feed the Rush Lake
SADG project,” said Chemlnyk.
“Th ere’s a 12-inch pipeline coming up. We’re hoping to get that this sum-
mer. Th ere’s a big facility job with it. We’re hoping to get a bunch of people to
work on that project.
“Some of our other projects in that area have been with Northern Blizzard
and CNRL, so it’s looking really positive.”
“I think we have enough work with our main clients. Just from talking
with their engineers and their project managers, they have enough for us to
keep us going throughout the year.
“We’re going to concentrate on keeping some good guys working with
them and keeping them happy.”
Strike can also draw from its other locations and services such as electrical
and instrumentation, fabrication, major project construction, module assembly
and maintenance and turnarounds.
“We are able to do the whole project right
from the ground up,” said Chmelnyk.
“Being a company like Strike, you can pull
guys from other districts to help out when you
shorthanded. It works out very well for us.”
Chmelnyk said his long-term plan for sustain-
able growth is to work with their main clients and
to also “grab some of these smaller type compa-
nies that are coming up” and are and are not so
junior anymore.
“We want to work for everyone. We like to
keep everyone happy and do a little bit for every-
one. Th at way all of our eggs aren’t in one basket,”
he said.
Back in 2011, Strike was focused on oil and
gas pipeline construction in the area, but new oil
recovery methods led by SAGD and commodity
prices have opened new doors in the Battlefords.
Page C14
Finn, the new shop dog, keeps his master and area manager Corey Chmelnyk on his toes a ending to his every need inside and outside the shop.
C14 PIPELINE NEWS May 2013
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Page C13 “Th e majority of it is all water and water disposal, and
water injection, and you name it,” said Chmelnyk.
“Th ere hasn’t been a whole of gas. Th e shallow gas stuff has kind of crashed
out. Gas prices haven’t been too strong.”
Snow was also a commodity this winter and it helped to keep Strike’s
workforce busy with contract plowing for 24/7 heavy oil operators in the area
such as Baytex Energy Corp., Husky and CNRL.
During a freak blizzard that swept through the northwest on March 20-
21, Strike deployed eight dozers to clear roads and leases for those companies
and others in the region.
“Th ey were happy with how we did it and the quick response we had to
get their production levels going again,” said Chmelnyk on a cold, late March
morning when there was still plenty of snow still on the ground.
“Th e breakup this year, I think, is going to be very challenging.
“I think with all this snow, we are going to see a lot of wet areas. It could
be one of our longer breakups than anticipated.”
Looking ahead, Strike hopes to secure some facility and fabrication work
for the construction of a 350 barrel a day pilot project being carried out by
Bayshore Petroleum. It will convert heavy oil to diesel-quality light oil as fuel
products or as diluents.
Bayshore has entered into a 30-year agreement with the China Foreign
Economic Cooperation Centre to license the catalytic upgrading technology to
convert heavy oil into light oil in Canada.
Th eir fi rst facility will be located in Meota,
about 43 kilometres northwest of North Battleford
on Highway 26.
“Th at’s within a half hour of us. We are really
looking forward to what they’re going to have for
us,” said Chmelnyk.
“We’ve been back and forth with their engi-
neers and stuff . I think it looks pretty promising to
start pretty quick.
Page C15
Welder Blair Lauinger dry ts another sec on of a new rail for a welding deck before drilling some pilot holes into the piece prior to the nal assembly.
Snow proved to beSnow proved to beworthy commodityworthy commodity
PIPELINE NEWS May 2013 C15
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Page C14“Th e way it sounds right now, it would be
facility work and a lot of fabrication work and in-
shop welding. Th ere might be a little bit of pipe-
line with it.”
Th ere is a lot of economic growth and pros-
perity on the minds of area business managers
like Chmelnyk this year as North Battleford holds
their centennial birthday party on May 1.
“It’s been good. Th ere’s lots of good positive
attitude. North Battleford has been expanding –
lots of developments going on here,” said Chmel-
nyk.
Th e entire $60 million Credit Union CUplex
in North Battleford which features a performing
arts centre, an aquatic centre, a curling rink and a
fi eld house, was up and running by the fi rst week
in March.
“Th ey’ve got the new multiplex (CUplex) so
it’s been pretty exciting, especially it being their
Strike Energy expects there will be plenty of me for maintenance and repairs during what could an extended spring breakup period due to lots of snow this winter and early spring.
100th year and us been situated here – it’s pretty
good,” said Chemlnyk.
Strike plans to expand the Battleford shop to
accommodate more fabrication work and to make
room for module assembly currently focused at
Strike’s Crossfi eld and Bonnyville locations in
Alberta.
“We’re thinking we could set up a shop here
and do the same thing and keep about 40 guys
working all winter long just on those things,” he
said.
Every which you look, there are new houses
and buildings under construction in the area.
“It’s starting to boom. You can see it all
around. We’re trying to grow with it and like I say,
we’re going to expand,” said Chmelnyk.
“Th ere are other businesses that are doing
the same. We’re looking forward to growing with
them.”
PIPELINE NEWS May 2013 C17C16 PIPELINE NEWS May 2013
The winners of the A-Event were Brent Gedak Welding. From le are lead Jare Mosley, second Brad Orsted, third Jessie Rosengren and skip Brent Gedak. Brent Gedak Welding beat out Southern Corrosion 5-3 in the nal on March 24.
The B-Event went to Ep-ping Energy, a team of fathers and daughters. The team was made up of, from le , lead Shelby Dunnigan, second Chael-ynn Kitz, third Brent Dun-nigan, and skip Shane Kitz.
Estevan Meter took the C-Event. From le are lead Kyle Skuce, second Jarrad Skuce, third Carey Eagles and skip Trent Walter.
Top: Jamie Holitzki with Enerplus curled with C&N Oil eld. Photo by Katrina Zinchuk
Right: Greg Kallis, centre, nishes up as his rock enters the house.
Top: Logan Skuce, le , Ty Eagles, Rex Eagles and Zoe Eagles, front, were some of the shorter spectators at the bonspiel.
Right: From le , Terry Houst, Murry Fulkerth, Norm Mack and Aaron Pahl put in a team e ort.
C18 PIPELINE NEWS May 2013
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Regina – Th ere
comes a time when
every little birdie has to
leave the nest. Th at was
essentially the conclu-
sion of the provincial
government after a
mandated review of the
$24 million grant paid
out to ethanol blenders
each year. In the 2013
budget announced on
March 20, the grant
was cut by a third, from
15 cents per litre to 10
cents per litre.
Th at cut brings it
in line with our neigh-
bouring provinces,
Alberta and Manitoba,
which have also charted
courses for ending their
per litre subsidies to the
ethanol industry, ac-
cording to Kent Camp-
bell, deputy minister
for the Saskatchewan
Ministry of the Econ-
omy. Manitoba is on a
path to eliminate theirs
by 2015, and Alberta
in 2016. Saskatchewan
is now on a similar
path, winding down the
program, but Campbell
said he is not sure when
that will be.
Th e reduction in
the grant will result in
an $8 million per year
savings to the province,
bringing the grant paid
out down to $16 mil-
lion in the 2013 fi scal
year.
Asked if the
industry will be able
to survive without the
subsidy, he said, “I
think they can,” but
added there are other
factors in the econom-
ics of the business,
including high wheat
prices.
Th e Lorne Calvert
NDP government
sought to expand its
ethanol industry. Th e
provincial government
mandated that a per-
centage of all gasoline
sold in Saskatchewan
be ethanol. Initially
it was two per cent in
early 2005, but that
rate rose to 7.5 per cent
six months later. At
the time, the grant was
brought in to encourage
growth of the industry
in the province.
Th e ethanol fuel
grant provided dis-
tributors with a 15
cent per litre grant for
ethanol purchased from
Saskatchewan ethanol
producers and blended
in automotive fuels
distributed within the
province.
In 2005, then-
Industry and Resources
minister Eric Cline
said, “Ethanol is only
one piece of a much
larger puzzle. Ethanol
and other biofuels are
21st century fuels. Eth-
anol use is increasing
across North America
and around the world.
Alternative fuel sources
are only going to grow
in importance over the
long term."
Saskatchewan now
has six blenders and
fi ve ethanol producing
facilities.
Th e mandated eth-
anol content percentage
will remain, Campbell
explained.
It was never the
intent for the program
to be “lifelong,” he
noted. “I guess we’ll see
how these companies
fare.”
Fly little birdie, y!Ethanol grant cut by a third, more cuts to come
PIPELINE NEWS May 2013 C19
Well Service• Acid
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Vancouver – An abundant supply of low cost natural gas in North American
from shale gas discoveries is cranking up sales and interest in natural gas truck
engines of all sizes.
Vancouver-based Cummins Westport Inc., 50 per cent owned by Cummins
Inc. and Westport Innovations Inc., introduced its newest 12-litre natural gas
engine in April for the commercial truck market.
“Th ere are a lot of economic benefi ts driven by the shale gas revolution. We
have an engine that burns a lower cost fuel,” said Jim Arthurs, president of Cum-
mins Westport.
Full production of the new ISX12 G engine is scheduled to start in August
in the United States.
Th e ISX12 G natural gas engine is based on the Cummins Westport ISX12
diesel engine platform and it runs on compressed natural gas or liquefi ed natural
gas, both of which are cheaper than diesel. Page C20
Cheap fuel drives natural gas enginesJim Arthurs, president of Cummins Westport in Van-couver, is stoked by the sales poten al of his com-pany’s new 12-litre natural gas engine for Class 8 re-gional truck hauling mar-ket. A Class 8 truck has a gross vehicle weight above 33,000 pounds. A larger 15-litre engine is produced by Westport Innova ons Inc., a 50 per cent owner of Cummins Westport. Sales are being driven by the low cost of natural gas and the introduc on of LNG refuelling sta ons in North America. Photo sub-mi ed
Trucks powered by natural engines made by Cummins Westport and their 50 per cent owner, Westport Innova ons Inc. got a boost in Western Canada in March when Shell Canada opened Canada’s rst public LNG refuelling sta on at the Shell Flying J truck stop in Calgary. Two more refueling sta ons are planned in 2013 in Red Deer and Ed-monton. Photo submi ed
C20 PIPELINE NEWS May 2013
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Estevan, SK
www.gillisspowertongs.com
Tel: (306) 634-6768Fax: (306) 634-6738
Sales & Safety:
Ryan Wallington
421-7011
Manager:
Dylan Gilliss
421-8158
Sales:
Logan Gilliss
421-8481
Gilliss Casing Services Inc. handles casing sizes from 2 3/8” up to 20”
Page C19 Both new model engine
types meet North American greenhouse gas emis-
sions standards for 2014 but sales and the develop-
ment of natural gas engines are motivated by the
lower price of natural gas.
“We don’t have a huge environmental benefi t
against a brand new diesel anymore,” said Arthurs.
“Most people today who are buying a natural
gas vehicle are really doing it because of the cost
savings associated with the fuel. Th at’s the big deal.
“What we see is the heavy duty trucking indus-
try burns a lot of fuel.
“Typically, over the life cycle of a class 8 truck,
80 per cent of the cost is fuel versus the truck itself.
If you have a $125,000 truck, it will go through
$600,000 to $700,000 worth of fuel.
“If truckers can take a big bite out of the fuel
costs, that’s very attractive.”
Westport Innovations produces a 15-litre natu-
ral gas engine for the heavy haul truck market and
estimates customers can expect savings of US$1 to
$2 per diesel equivalent gallons.
Th e new Cummins Westport ISX12 G natural
gas engine utilizes their proprietary spark-ignited
stoichiometric combustion with cooled exhaust gas
recirculation technology.
Th e so-called SEGR technology was intro-
duced with their ISL G 9-litre natural gas engine
that has gained an approximate 20 per cent market
share of the continental transit bus market.
“More recently, we’ve got between a 40 and 50
per cent share of garbage collection trucks. Th at was
where the 9-litre engine really made sense,” said
Arthurs.
Larger engines like the new ISX12 G will help
Cummins Westport improve its share of the class 8
truck market that is less than one percent today.
In 2012, Cummins Westport and Westport
Innovation combined sold 1,500 9-litre and 15-litre
natural gas engines in a market of 200,000 class 8
trucks sold in North America.
Th eir total natural gas engine sales in North
American were around 5,000 and have nowhere to
go but up.
“Bringing out this 12-litre engine is really
opening up the heavy duty trucking for us,” said
Arthurs.
“It’s really one of these things that are relatively
new for them to have larger engines that are avail-
able.”
Wesport is introducing a new 120 gallon LNG
tank system to U.S. customers on a trial basis with a
350 to 450 mile refueling range.
A company called Clean Energy in the U.S.
has installed 70 natural gas refueling stations across
that country as more fl eets switch to cold or warm
LNG.
“LNG fueling station networks will be estab-
lished in response to market demand in Canada,”
said Arthurs.
“Investments in natural gas liquefaction facili-
ties are required to bring LNG into the trucking
market.” Page C21
Ian J. Sco , execu ve vice president at Westport, has oversight of Westport’s market development ac- vi es in North America.
Sco spoke at a public event held at the Westport Kentucky Integra on Cen-tre on March 19.
Photo submi ed
Heavy duty trucks
PIPELINE NEWS May 2013 C21
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Page C20 Shell Canada opened the fi rst public LNG refueling station for heavy duty
haulers in Canada on March 7 at its Flying J truck stop in Calgary with two
more stations to open this year in Red Deer and Edmonton.
Shell is also building Canada’s fi rst non-utility LNG production facility
west of Calgary to serve the growing market.
As many as fi ve new LNG processing plants could be in production by
2020 in British Columbia from shale gas production in the northeast part of
the province.
“We are fi nding all this shale gas now at relatively low cost, so it off ers the
North American economy the opportunity to reduce the cost of transportation
by using a lower cost fuel and becoming much more energy independent,” said
Arthurs.
“Historically, the interest in natural gas 10 years ago was around emissions
reduction.
“Now it’s really about the economic benefi ts – the lower cost of fuel and to
some extent energy independence.
“We do hear people, especially in the U.S. say, that they like burning do-
mestic natural gas versus imported diesel fuel. Th at comes up.
“Th e commercial trucking industry is all about the dollars and cents.”
Cummins Westport 9-litre and 12-litre natural gas engines and natural gas
engine are available in Kenworth, Freigthliner, Mack, Navistar, Peterbilt and
Volvo trucks used in oilfi eld.
Westport’s large 15-litre engine is only available on Peterbilt and Ken-
worth trucks.
“We do see oilpatch and oilfi eld companies move in this direction,” said
Arthurs.
“We do think we will see pretty good growth in the business in the next
numbers of years.
“We expect to see it across the whole class 8 truck market where we’ll go
from less from 1 per cent share to anywhere from 10 to 50 per cent of the
market share.”
Sales may also benefi t from new harmonized environmental standards for
Canada and the United States that aim to reduce greenhouse gas emissions by
23 per cent for 2018 model year heavy duty trucks.
“Natural gas is inherently cleaner burning,” said Arthurs which helps with
maintenance of the after treatment system.
“With the SEGR system, we don’t need a heavy duty after treatment to do
the remaining cleaning up of the exhaust.
“A diesel engine these days will use a selective catalytic reduction system
and a diesel particulate fi lter, so they are quite complex to clean up the diesel
emissions.”
Because the ISX12 G natural gas engine is based on the Cummins ISX12
diesel engine, 80 per cent of the parts are identical.
“We basically make a version of that engine that runs on natural gas rather
than diesel,” said Arthurs.
“We change the fuel system and we add a spark ignition system to the
engine and we change the after treatment and a few things.
“Most of the maintenance requirements are very similar. We do try to
change the oil a little more frequently with natural gas.
“We have spark plugs that you need to change every once and a while
too.”
C22 PIPELINE NEWS May 2013
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Forget, Saskatchewan
The Safety Association for Candada’s
Upstream Oil and Gas Industry
Regina – Energy and Resources Minister Tim
McMillan reached back to 2008 to explain why the
latest April sale of petroleum and natural gas rights
generated just $7.7 million for the province.
“While land sale activity has been compara-
tively quiet over the past year, if you consider the
all-time record set back in 2008, it is to be expected
as industry concentrates on drilling the huge inven-
tory of land that has been acquired,” said McMillan.
“Th ere are a signifi cant number of leases up for
renewal in the next few years, and we expect that
much of that land will revert back to the Crown
and, as a result, there could be increased land sale
revenue.”
Th e April sale in 2012 contributed $16.4 mil-
lion in revenue for Saskatchewan, but it’s costing
more to acquire lands, with prices averaging more
than $900 per hectare at this year’s sale.
Th e Weyburn-Estevan area received the most
bids with sales of $5 million followed by the Lloyd-
minster area at $1.1 million.
Th e Swift Current area generated $1 million,
while the Kindersley and Kerrobert area brought in
$623,103.
Th e April land sale boosted the total revenue
for the year to $19.7 million as oil and gas compa-
nies continue to tap into their existing lands at a
steady pace.
“Drilling activity is steady, and with major
investments by industry in secondary recovery
projects that have the potential to increase produc-
tion from the Bakken, the future looks bright for
Saskatchewan’s oilpatch,” added McMillan.
Th e highest price paid for a single parcel of
land in April was $3.1 million.
Federated Co-operatives Limited acquired this
807-hectare exploration licence near Corning.
Th e highest price on a per-hectare basis was
$25,525, paid by Scott Land & Lease Ltd. that bid
$826,252 for a 32-hectare lease parcel located west
of Shaunavon.
Th e next sale of Crown petroleum and natural
gas dispositions will be held on June 3 2013.
Weyburn-Estevan area (numbers rounded off )Th e top purchaser of acreage in this area was
Federated Co-operatives Limited which spent $3.8
million to acquire one lease parcel and one explora-
tion licence.
Th e top price for a single lease in this area was
$678,182 paid by Federated Co-operatives Ltd.
for a 259 hectare parcel situated three kilometres
east of the Wauchope Alida-Tilston Beds Pool, 13
kilometres west of Redvers.
Th e highest price paid for a single licence was
$3.1 million, paid by Federated Co-operatives Ltd.
for a 807 hectare block located partially within the
Viewfi eld Bakken Sand Oil Pool, three kilometres
southwest of Corning.
Th e highest dollar per hectare in this area
was received from MinRich Energy Ltd., which
paid $4,463 per hectare for a 16.19 hectare parcel
located within the Ingoldsby Frobisher-Alida Beds
Pool, 13 kilometres north of Carievale.
Lloydminster areaTh e top purchaser of acreage in this area was
Husky Oil Operations Limited that spent $308,480
to acquire three lease parcels.
Th e top price paid for a single lease in this area
was $183,561, by Husky Oil Operations Ltd. for a
80.94 hectare parcel situated within the Marsden
South Sparky Sand Oil Pool, 5 kilometres south-
west of Neilburg.
Th e highest dollar per hectare in this area was
received from Ranger Land Services Ltd., which
paid $8,132 for a 16.19 hectare parcel located
within the Mervin South Waseca Sand Oil Pool, 15
kilometres southeast of Turtleford.
Th e highest dollar per hectare in this area was
received from Plunkett Resources Ltd., which paid
$403 for a 64.75 hectare parcel located 20 kilome-
tres southwest of the Verendrye Viking Sand Oil
Pool, four kilometres southeast of Eatonia.
Swift Current areaTh e top purchaser of acreage in this area was
Scott Land & Lease Ltd., which spent $826,252 to
acquire one lease parcel. Th is 32.37 hectare parcel
is situated within the Clintonville Shaunavon Oil
Pool, seven kilometres west of the town of Shau-
navon.
Th is is the highest dollar per hectare in this area
at $25,525.
Kindersley-Kerrobert area Th e top purchaser of acreage in this area was
Standard Land Company Inc., that spent $161,331
to acquire 3 lease parcels.
Th e highest price paid for a single lease in this
area was $92,538 by Standard Land Company Inc.
for a 259 hectare parcel situated 3 kilometres west
of the Onward North Basal Mannville Sand Oil
Pool, 15 kilometres west of Kerrobert.
Land sale weak but set to rebound
PIPELINE NEWS May 2013 C23
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C24 PIPELINE NEWS May 2013
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By Geoff LeeNorth Battleford –
You ain’t seen nothing
yet.
Th e title of that
’70s song by Bachman-
Turner Overdrive could
be a theme for the city
of North Battleford
as it celebrates growth
and a bright future
during its offi cial 100th
anniversary bash on
May 1.
Th e day will be
marked by a free public
romp in Central Park
in the downtown core,
complete with enter-
tainment and cake
followed by a formal
evening gala at the new
Dekker Centre for the
performing arts.
No doubt there will
be a round of applause
that night for the cen-
tre itself that is part of
the $60 million Credit
Union CUplex centen-
nial project that also
includes a standalone
aquatic centre, fi eld
house and curling rink.
“A $60 million
investment is defi nitely
something that has
doesn’t happen every
day in Saskatchewan,
especially for a commu-
nity of this size,” said
Denis Lavertu, director
of business develop-
ment for the City.
“Th ose facilities
are going to be around
for another 60 to 100
years.”
Th at project is in-
dicative of the growth
and investment taking
place in the area that
is putting everyone is a
party mood throughout
the 2013 centennial
celebrations.
“Th e committee
has done a great job in
providing some events
in the community,” said
Lavertu.
“We have busi-
nesses here, especially
in our downtown, that
have celebrated gen-
erations of family
business.
“I think it’s a good
sign that in our centen-
nial year we’re continu-
ing to grow and we are
a still a very vital and
vibrant community.
“All of the auto
dealerships over the
last couple of years
have invested in their
facilities. Th at goes to
show there is growth
in the region,” added
Lavertu.
Today, North Bat-
tleford is a city with an
increasing and diverse
population, renewing
infrastructure, massive
capital projects, rising
interest in business and
residential investment
and increasing eco-
nomic participation by
First Nations.
In April, city
council passed a bylaw
designating the historic
downtown core as a
business improvement
district to help mer-
chants attract business
and customers to the
revived shopping area.
Th e city is also
planning to form a new
regional Greater Battl-
efords Marketing Alli-
ance in 2013 to pro-
mote the city and the
region for new tourism
and business marketing
opportunities.
Th e availability
of labour in the area
prompted Grit Indus-
tries Inc. to move its
manufacturing base
from Lloydminster to
North Battleford in
2012.
“Th e labour force
in Lloydminster was
such that we were
competing constantly
with the oilpatch for
every tradesperson
and labourer,” said Jim
Spenrath, Grit’s chief
operating offi cer.
“In North Battle-
ford, what we’re fi nding
is the number of avail-
able people is signifi -
cantly better for us.
“We are being con-
tacted by a lot of peo-
ple that were originally
from North Battleford
or who have family in
North Battleford and
were working away.
Th ey were quite anx-
ious to return to stable
employment right in
North Battleford.
“We’ve had quite a
bit of success recruit-
ing those types of folks.
Th ese are people with
roots in North Battle-
ford and are very happy
to be there.”
Grit currently em-
ploys over 60 workers
in the manufacture of
natural gas line heaters
and secondary contain-
ment systems.
“Business has been
really strong. Our
backlog of orders will
keep us busy well into
the future,” said Spen-
rath.
“We anticipated a
high level of activity,
and we’re certainly see-
ing it here.”
Th e City of North
Battleford went out
of its way to woo Grit
to its location in the
Parsons Industrial Park,
off ering certain tax ex-
emptions to help off set
the capital cost of new
equipment and renova-
tions.
“Th at’s going to
help them make those
further investments in
that facility and contin-
ue to grow out there,”
said Lavertu.
“It is really a
phenomenal company –
just the innovation and
their forward thinking.
Th ey’re always look-
ing at what’s the next
innovation for their
company.”
Page C25
North Battleford to kick up its heels May 1North Battleford to kick up its heels May 1
Wayne King, president of Grit Industries Inc., added this Panasonic Mig robo c welder to his new manufacturing shop in North Ba leford. The City of North Ba leford provided Grit with tax exemp ons to o set the cost of reloca ng their manufacturing facili es to Parson’s In-dustrial Park from Lloydminster. Grit has found available labour in North Ba leford, along with a ordable housing for new employees. File photo
PIPELINE NEWS May 2013 C25
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Page C24
Other large indus-
trial companies such as
Mifab Manufacturing, G
& C Asphalt (LaFarge),
Kindersley Transport,
EnviroSafe Chemicals,
Anderson Pumphouse
and Unicon Pipeline
have set up shop in
North Battleford.
Th e city is also home
to Cargill Ltd. and other
major grain handling
companies that oper-
ate inland terminals to
support the strong grain
industry in the area.
“Defi nitely agri-
culture is still a huge
industry for us here and
the off sets from that as
well,” said Lavertu.
Th e Canadian Feed
Technology Research
Facility, owned by the
University of Saskatch-
ewan, was issued a $4.8
million building permit
in February to construct
an addition and do some
renovating.
Increased heavy oil
and gas activity in the
region is adding to the
industrial mix, creating
new investment op-
portunities to an already
diverse economy.
“Oil and gas is
defi nitely picking up and
getting closer. Th ere are
investments both north
and south of us,” said
Lavertu.
Earlier this year,
Husky Energy sanc-
tioned a 10,000 barrel
per steam assisted grav-
ity drainage project at
Rush Lake near Payn-
ton, which is about 70
kilometres west of the
Battlefords.
Bayshore Petroleum
Corp plans to construct
a $9.5 to $10 million
pilot plant near Meota,
35 kilometres northwest
of the city, to turn heavy
oil into diesel quality
light oil.
In response to those
projects, Grit is using
North Battleford as a
secondary location for
its Lloydminster-based
A-Fire division heavy oil
products.
“We do a lot of work
down in the Kindersley
area. To the north is the
Edam and Turtleford
area where there has
been a lot of activity,”
said Spenrath.
With these develop-
ments in mind, Lavertu
went out on a limb to
predict North Battleford
will double or triple its
current size by the time
the city turns 200.
“Our strategy is to
be the regional centre for
northwest Saskatchewan
– a centre of service,
health and agriculture
and oil and gas and
transportation,” he said.
His crystal ball
statement contained in
the 2013 city budget also
points to a rosy future
for the city.
“Our future looks
bright, with forecasts
for strong retail growth
and development of
our abundant resources
and agriculture in the
region,” he said.
“Th is plan sets a
path for North Bat-
tleford to adapt and
respond to the needs of a
growing, more complex
community and region
we serve.
“Th e city will deliver
on its plan to invest in
our commercial and
industrial neighborhoods
and build a thriving
future for business.
Th e next centen-
nial celebration will take
place during Canada
Day, which will double
as another call for home-
coming.
“It’s bringing back
people from across
Canada. We’ve had
people from B.C. say-
ing they are coming
home for July 1 cele-
brations,” said Lavertu.
“We’ve had some
other seniors that have
come home for the
seniors’ tea from out of
province.”
Th e all-year cen-
tennial party will come
to an end with a clos-
ing ceremony on Dec.
31.
North Ba leford is holding a centennial gala on May 1 at the new Dekker Centre for the performing arts. The centre is part of a $60 million Credit Union CUplex centennial project that includes separate aqua c centre, eld house and curling rink. File photo
C26 PIPELINE NEWS May 2013
Doing it RIGHT Doing it ON TIME!
PIPELINE NEWS May 2013 C27
CAREER Gu de
COIL TUBING PERSONEL,NITROGEN SUPERVISORS,
PRESSURE TRUCK OPERATORS,CRANE OPERATORS,
& SWAMPERS
FULL TIME HEAVY DUTY MECHANIC for our Carlyle Shop. Experience on oil eld equipment an asset, but not necessary. Bonuses paid on performance.
SHOP FOREMANDuties include managing mechanicals, eet services & parts.
Wages negotiable on experience. Bene t package available.
For further info please contact Randy at either 453-2226 or [email protected]
EMPLOYMENT EMPLOYMENT OPPORTUNITIESOPPORTUNITIES
Applied Industrial Technologies LP. a group of industrial distribution companies located throughout Canada, and we are currently seeking qualified individuals to fill the position of:
Customer Service RepresentativeEstevan, Saskatchewan
Responsibilities include but may not be limited to:
• Providing service to branch customers and managing assigned product lines or customers. • Active involvement in company’s Quality Management process as evidenced by continuous improvement in processes directed toward reducing costs, increasing sales/gross profit and customer satisfaction. • Carries out policies and procedures as defined in the company policy manual. • Continuous development through reading, seminars and on the job training. • Provide a high level of customer service to branch customers including timely, accurate responses to inquiries. • Cross train to assist or fill in when fellow team-mates are absent or their workload volume is high • Work with distribution centre to expedite special requests as necessary • Engage in direct sales actives • Provide telephone support for outside sales force • Meet or exceed sales performance targets • Ensure accurate, timely order processing through the computerized order processing system • Maintain cooperative and productive inter-departmental relationships • Attend branch meetings as required • Take personal responsibility for and actively engage in product systems and skills training and development • Maintain highest regard for safety and housekeeping • Perform other similar or related duties as assigned by the branch manager or supervisor.
Preference will be given to candidates with the following qualifications and attributes:
• High School or equivalent • Related industry experience or 3-5 years industrial inside sales experience preferred • Bearing and power transmission experience is a definite asset • Proficient computer skills, experience with SAP is an asset • Sales and customer service experienced • Mechanically inclined • Ability to work independently • Analytical and problem solving capability • Enthusiastic and exhibits a positive attitude and desire to succeed
Applied Industrial Technologies offers competitive salary, comprehensive group benefit plan, company sponsored RRSP/DPSP, ongoing opportunity for training and development and promotion within the company. Send your resume to [email protected] or fax attn.. Chris Babyak 403-214-1423.
Calgary – Oilfi eld
safety and careers go
hand in hand and now
they will be thanks to
a decision by Enform
Canada to take the Pe-
troleum HR Council of
Canada (Council) under
its organizational wing.
Th e merger went
into eff ect on Apri1 1
and consolidates the
safety and training ser-
vices of Enform and the
human resources ser-
vices of the Council into
one integrated national
entity serving Canada’s
oil and gas industry.
“Th is is a positive
initiative for Canada’s
oil and gas industry,”
said Cheryl Knight,
executive director and
CEO of the Council in
a March 25 announce-
ment.
“It will re-organize
important industry
services within one or-
ganization, and provide
new opportunities to
meet industry needs”,
she said.
Th e move is de-
scribed by Enform as
an acquisition made
on March 31 with the
merger of the Council
taking eff ect the follow-
ing day.
“We are looking
forward to this new
relationship with our
Council colleagues,” said
Cameron MacGillivray,
president and CEO of
Enform.
“Th is move will be
good for both orga-
nizations and for our
industry.”
Th e Council has a
long-standing close re-
lationship with Enform,
which supports and pro-
motes the highest safety
standards in Canada’s
upstream oil and gas
industry through inno-
vative training, certi-
fi cations, services and
resources.
Both organizations
share many of the same
core relationships with
industry associations,
leaders and enterprises,
as well as with govern-
ment organizations.
Th e two organiza-
tions have worked side-
by-side for many years
out of the same offi ce
facilities.
“Th is move just
makes sense and the
time is right,” said
Knight.
Th e main programs
and services of the
Council will continue,
primarily focusing on
two key areas of priority.
“Th e most impor-
tant of these are our
Labour Market Infor-
mation and Careers in
Oil and Gas programs,”
said Knight.
“Industry has been
clear about the ongo-
ing importance of this
work.”
Th e consolidation
should also enable En-
form to better service its
members in the oil and
gas industry with safety
training and careers
information.
“Th e acquisition
gives us access to valu-
able information and
expertise to better align
our training and safety
services to industry
workforce issues,” said
MacGillvray.
With the acquisi-
tion some unfunded
work of the Council will
be dropped in response
to funding shifts and
operating as part of
Enform.
“We are becoming a
more-focused organiza-
tion,” said Knight who
noted all active pre-ac-
quisition projects would
be completed.
“Over the spring
and summer of this year,
we and our colleagues
at Enform will work
together with industry
and other stakeholders
to review our programs
and structures as one
integrated entity,” she
said.
“Our standard will
always be how to best
meet the needs of Cana-
da’s oil and gas industry.
“Over the years,
the Council has ac-
complished many great
things for Canada’s oil
and gas industry. We
look forward to con-
tinuing these contri-
butions from within
Enform,” added Knight.
Enform merges with industry HR body
C28 PIPELINE NEWS May 2013
CAREER Gu de
CONSTRUCTION LTD.EXCAVATING, SAND AND GRAVEL • REDI-MIX CONCRETE
Glen Peterson Construction Ltd.
314 - 6th Street, Estevan, SK S4A-2V7
Ph: 306•634•2741 Fax: 306•634•4643
E-mail: [email protected]
Wanted for outdoor work in the oilfield,
combination of walking, standing and bending.
Attention to detail, hand-eye coordination and
willingness to learn are definite assets.
H2S and First Aid/CPR required, employer
willing to train.
Apply in person to:
Quest Line Locators Ltd.104C Perkins Street or email
101 Supreme St. (Shand access road)
Class 1A & 3A PreferredAbove Industry Wages
Benefits PackagesOpportunity for Advancement
Email: [email protected]
Fax 306 634 1200 • Cell 306 421 3418
SERVICE RIG PERSONNEL
PIPELINE NEWS May 2013 C29
Applied Industrial Technologies LP. a group of industrial distribution companies located throughout Canada, and we are currently seeking qualified individuals to fill the position of:
Shipper ReceiverEstevan, Saskatchewan
The successful candidate will be responsible for:
• Receiving and shipping all branch product in an accurate and timely manner • Sort material, stock shelves, pick orders, package and label materials • Handle lost shipments as an enhancement to customer service • Organize and maintain all applicable records and files • Maintain up to date knowledge of the company’s service offerings • Maintain cooperative and productive inter-departmental relationships to deliver exceptional customer service • Take personal responsibility for and actively engage in product, systems and skill training and development
Preference will be given to candidates who possess the following qualifications:
• Customer service driven • Experience in shipping and receiving • Forklift operation experience • Proficient computer skills • Detail oriented • Organized • Basic mathematical aptitude • Self-motivated • Can work independently or in a team environment
Applied Industrial Technologies offers competitive salary, company sponsored RRSP/DPSP, career development opportunities and a full benefit package. Please submit resume in confidence via email to [email protected] or fax to 403-214-1423 attn. Chris Babyak.
Field Service TechnicianCanGas Solutions Inc. is an Alberta based oilfield service company and a wholly owned subsidiary of CanElson Drilling Inc. The two main services provided by CanGas are capturing and monetizing raw natural gas that is currently being flared or vented by the energy industry and transporting processed natural gas for use as a fuel to displace diesel or propane.You will be responsible for the support and maintenance of bi-fuel conversion kits on diesel engines used in field based equipment including drilling rigs and generators. CanGas is currently hiring for field based positions in both Alberta and southeastern Saskatchewan.
Duties and Responsibilities-Troubleshooting and maintenance of bi-fuel conversion kits on diesel engines.- Move and setup unloading equipment from well to well as the drilling rig moves.- Coordinate natural gas trailer deliveries to the drilling rigs and other locations contracted for gas supply. - Ensure that Company and government safety, policy and regulatory standards are met.
Qualifications- Minimum of 5 years strong technical expertise in the maintenance and operation of natural gas piping and distribution equipment.- Preference will be given to applications who also possess experience with repairing and maintaining diesel engines.- Hold valid oilfield tickets — H2S, First Aid, CPR certificates.- As a minimum, hold a valid Class 5 drivers licence with preference for applicants having a Class 1 licence.- Proficient in the use of computer based programs.- Ability to work in a team environment and possess excellent communication skills to deal with customers and field staff.
Other InformationSalary will be commensurate with qualifications and experience. Please forward your cover letter and resume, in confidence, to:
Human Resources DepartmentCanGas Solutions Inc.2010, 444 - 5th Ave. SWCalgary, Alberta T2P 2T8Email: [email protected]
Please visit our web site at www.cangassolutions.com for additional information about our company. We thank all applicants, however only those selected for an interview will be contacted.
Peace ofmind knowingwork is steady
and secure
Worry aboutnot being ableto pay your billsA girlfriend/wife
who is happy andthinks you rock!
Brochure forreally cool stuffthat you can’tafford to buy
A thin walletand stretchedbank account
Envy for theother guy’s
happy girlfriend
Really coolstuff you canafford to buy
A fullwallet and
healthy bankaccount
A job at vs. the other guys
Where would yourather be working?
Eagle operates thenewest fleet of rigs, hassafe operations, and offerssteady work – that meansmore cash in your pocket,and a whole lot more!
Phone: (306) 634-8235, Fax: (306) 634-8238, Email: [email protected]
www.eaglerigjobs.com
ELECTRICIANS &INSTRUMENTTECHNICIANS
Carlyle and Estevan, SKSouth East Electric LTD. is looking for trade certified Electricians and Instrument
Technicians to provide a complete range of electrical services to our oilfield,
commercial and agricultural cutomers. Strong troubleshooting skills, excellent
communication, customer service skills and the ability to work independently
and well under pressure are essential.
We offer competitive wages and benefits. Valid drivers license is required.
Interested candidates should submit their resume via email to the attention of
C30 PIPELINE NEWS May 2013
Your best choice Your best choice for accommodations
in Carlyle, Sk.in Carlyle, Sk.
• Full kitchen and upscale extended stay• Complimentary continental hot breakfast
• Free high speed internet• Meeting room
Reservations: 306-453-2686
sssssssssssssssssssssssssssssssssssssss
RICK CORMIERManager
Box 609 Bus: (306) 453-6111Carlyle, SK Cell: (306) 577-8833S0C 0R0 Fax: (306) 453-6102www.truetorq.ca [email protected]
JUSTIN WAPPEL - Division Manager
401 Hwy. #4 S. Biggar, SaskatchewanPO Box 879 S0K 0M0Ph (306) 948-5262 Fax (306) 948-5263Cell (306) 441-4402 Toll Free 1-800-746-6646Email: [email protected]
Dwight G. Blomander, CFP, CLU, CH.F.C., CHS• Life Insurance• Disability Insurance• Critical Illness Insurance• Employee Bene t Plans
Tel: (306) 359-2015 • Fax: (306) 359-3034E-mail: [email protected]
Toll Free: 1-855-359-2015 • Cellular: (306) 421-1935Life Licence sponsored by The
Great-West LifeASSURANCE COMPANY
105, 335 Hoffer Drive, Regina, SK. S4N 6E2LECLAIRTRANSPORT
Lyle LeclairCell: 306-421-7060
General Oilfi eld Hauling
Cordell JanssenCordell JanssenDistrict ManagerDistrict Manager
DownholeDownhole
93 Panteluk Street, Kensington Avenue N93 Panteluk Street, Kensington Avenue NEstevan, SaskatchewanEstevan, Saskatchewan
PHONE:PHONE: 306-634-8828 • 306-634-8828 • FAX:FAX: 306-634-7747 [email protected] • www.nov.com
Lloyd Lavigne • Kirk ClarksonOwners/Managers
6506 - 50th AvenueLloydminster, AB
Phone: (780) 875-6880
5315 - 37th StreetProvost, AB T0B 3S0
Phone: (780) 753-6449
Fax: (780) 875-7076
24 Hour ServiceSpecializing in Industrial & Oilfield Motors
RESOURCE Gu de
PIPELINE NEWS May 2013 C31
C32 PIPELINE NEWS May 2013