pipeline news november 2010

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Aboriginal Aboriginal Involvement In Involvement In The Oil Patch The Oil Patch Onion Lake Grows Onion Lake Grows With Oil Patch With Oil Patch Page A8 Page A8 White Bear White Bear Planning To Drill Planning To Drill Pages B5 Pages B5 Penn West Ramps Up Penn West Ramps Up Waskada Production Waskada Production Page C1 Page C1 PIPELINE NEWS Saskatchewan’s Petroleum Monthly Canada Post Publication No. 40069240 November 2010 FREE Volume 3 Issue 6 Roger Lewis, a safety Àeld manager for Onion Lake’s Askiy Apoy Hauling, stands in front of a lease site operated by Black Pearl Resources. Photo by Geoff Lee

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Pipeline News November 2010

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Aboriginal Aboriginal Involvement In Involvement In The Oil PatchThe Oil Patch

Onion Lake Grows Onion Lake Grows With Oil PatchWith Oil Patch

Page A8Page A8

White Bear White Bear Planning To DrillPlanning To Drill

Pages B5Pages B5

Penn West Ramps UpPenn West Ramps UpWaskada ProductionWaskada Production

Page C1Page C1

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

November 2010 FREE Volume 3 Issue 6

Roger Lewis, a safety eld manager for Onion Lake’s Askiy Apoy Hauling, stands in front of a lease site operated by Black Pearl Resources. Photo by Geoff Lee

A2 PIPELINE NEWS November 2010

NewsNotes

Briefs courtesy Nickle’s Daily Oil Bulletin

Weather turns drilling around

Saskatchewan’s drilling rig count had been

nudging into the 90s in the late summer until wet

weather pummelled that number down to 54 by

Sept. 24. However, a string of warm, windy days

in late September and early October turned that

around quickly, and with a couple of days of that

low point, the rig count jumped to 73 active drill-

ing rigs by Sept. 27, according to Nickle’s Rig

Locator (www.riglocator.ca). On Oct. 7, the day

before the Th anksgiving long weekend, that num-

ber had rallied to 87 active drilling rigs. On Oct.

19, that number was again 87 after a small dip.

Torquay doubles production

Torquay Oil Corp. says its southeast Sas-

katchewan production has doubled since its last

update in August.

Current corporate production is averaging ap-

proximately 550 barrels of oil equivalent per day

(an increase of 110 per cent since August).

Th e company plans to drill three additional

100 per cent working interest wells through the

remainder of the fourth quarter. Torquay also in-

tends to shoot a 32.5-square kilometre 3-D seis-

mic program on a new Mississippian prospect

prior to year-end.

In addition, Torquay recently secured fi nanc-

ing to help fund upcoming drilling operations and

for general corporate purposes.

Diaz announces purchaseDiaz Resources Ltd. has acquired a 45 per

cent working interest in a Dina heavy oil property

located at Macklin.

Th e company’s partners include Tuscany En-

ergy Ltd. (30 per cent) and Sharon Energy Ltd.

(25 per cent).

Th e property comprises 3,770 acres and in-

cludes four shut-in Dina horizontal oil wells, a

water disposal well and seven square miles of 3-D

seismic.

Diaz plans to reactivate the horizontal oil

wells and evaluate the 3-D seismic for future de-

velopment.

By Geoff Lee Pipeline News

North Battleford – A labour market partner-

ship between Empire Welding and Machining Ltd.

and the Saskatchewan Indian Institute of Technol-

ogy (SIIT) in North Battleford is working out just

swimmingly.

Empire employs

many new welding

apprentices from a

deepening pool of

First Nations’ pre-

employment grads

from the Battlefords

Industrial Career

Centre (BICC), ad-

ministered by SIIT.

“About 40 to

50 per cent of our

welding staff and

our fabrication staff

have a First Na-

tions background,”

said Don McGuire,

general manager of

Empire.

“A lot of those

students come in

as Level 1 welding

training, and they

are developing with

us now.

“Currently, we

are going into a new

production run and

we will bring more

employees in.

“We are pro-

ducing land rollers

mainly for the U.S.

market. We do a

large business pre-

dominantly in the

eastern part of the

U.S., all the way down

to Texas.”

Empire also manufactures oilfi eld products such

as a low-rider oil tank moving trailer and provides

custom manufacturing, fabricating and design ser-

vices along with exports of farm equipment to the

U.S. and Australia.

Empire’s plan initially was to take on one First

Nation student at the grass roots level, but the com-

mitment mushroomed after SIIT established a

BICC facility in North Battleford in 2005.

“We came into the area with a training system,

and we were looking for partners,” said Bill Iron-

stand, the regional project manager for SIIT and the

manager of BICC.

“Empire Welding was approached because they

are one of the largest manufacturing companies in

the Battlefords.

“A partnership was formed where we will bring

in entry level weld-

ers, train them and

then companies like

Empire will employ

them, and we will

help them through

their apprenticeship

through journeyman

status,” he said.

Ironstand be-

lieves it’s critical to

have partners like

Empire or GLM

Industries in Battl-

eford to take on an

apprentice.

“You can train

someone, but if

there isn’t a job or a

career at the end of

the line, there is no

point in doing the

training,” he said.

“We work with

industry to de-

termine what the

workforce needs

are and how we can

provide that type of

training.

Th ere are now

seven BICC loca-

tions in the province

including La Ronge,

Prince Albert, Sas-

katoon, Regina,

Yorkton, North Bat-

tleford and Meadow

Lake to provide

training in all types of trades.

“So far we have over 11,000 clients and we have

found 9,000 placements for work in training pro-

vincially,” said Ironstand, who notes interest in the

trades among First Nations people is peaking.

“It’s huge,” he said. “Predominantly, we are a

‘work with our hands’ type of people. Th ere is always

the entry level work, and now we are seeing the light

at the end of the tunnel is journeyman status in all

the diff erent trades.” Page A6

Empire grows with First Nations welding crew

Patricia Wolfe from Muskeg Lake First Nation takes a break from grinding a test weld to smile for a Pipeline News photo.

FULL FLUSHBY & PRESSURE SERVICES

BODY VACS,STEAMER/PRESSURE WASHER SERVICES

SALTWATER DISPOSAL PUMPING SERVICES

Ken McConnellOwner/Operator

24 HR Dispatch: 780-205-9001Mike #: 403*11*29001

Fax: 306-397-2697Box 238 Edam, SK

[email protected]

24 HOUR SERVICE24 HOUR SERVICE

Racken Enterprises.indd 1 8/21/08 1:00:06 PM

PIPELINE NEWS November 2010 A3

NewsNotes

Briefs courtesy Nickle’s Daily Oil Bulletin

Seawall plans Kindersley drilling

Seawall Energy Management Corp., a private

Alberta corporation, has announced a non-bro-

kered private placement off ering of approximately

$6 million.

Seawall plans to use the net proceeds to fund

its development drilling program in the Viking

resource play near Kindersley and to incur ex-

penses related to Canadian exploration expenses

and Canadian development expenses to satisfy the

company’s obligations regarding the fl ow-through

common shares.

Th e company intends to drill between two

and four horizontal wells by the end of this year.

Seawall is a private oil and gas start-up fo-

cused on low-risk oil plays using multi-stage frac-

ture techniques. Seawall president Douglas McK-

innon has served as founder and director of fi rms

such as 3 Martini Ventures Inc., Blue Denim Ex-

ploration Inc., Reece Energy Exploration Corp.

and Stoneworx Earth Sciences. Th e company’s

main land and drilling areas of interest are east-

central Saskatchewan and Alberta.

Queensdale test results

For its recent horizontal well in the Queens-

dale area of Saskatchewan, Sure Energy Inc. says

the Alida formation fl owed 1,164 bbls of 37 de-

gree API oil over a 42.5-hour test.

Th e fi nal restricted fl ow rate was 500 bpd on

a 0.875-inch choke with an average fl owing pres-

sure of 230 psi and an 11 per cent water cut.

Th e company expected the well to be on pro-

duction in early October, initially at a restricted

rate of 150 bpd.

Th e well is 100 per cent owned by the com-

pany and will qualify for the Saskatchewan gov-

ernment's horizontal oil well royalty incentive

rate of 2.5 per cent for the fi rst 37,740 bbls of oil

produced.

Th e company has a minimum of two 100 per

cent direct off set locations to this well and owns

fi ve sections of 100 per cent working interest lands

in the Queensdale area.

By Geoff Lee

Lloydminster – BAR Engineering may be con-

tracted to design and build a trophy case for itself

and for Grit Industries Inc. Grit could probably

build it.

Th e two Lloydminster businesses that are well

known in the oil patch are fi nalists for this year’s

Achievement in Business Excellence (ABEX)

Awards staged by the Saskatchewan Chamber of

Commerce.

BAR is nominated for a Growth and Expansion

Award, while Grit is in the running for an Export

Award and an Environment Award.

Th e ABEX awards presentation takes places in

Regina Oct. 30.

News of the nominations led to a round of ap-

plause for the two Lloydminster companies during

the 2010 Business Week Awards Gala held by the

Lloydminster Chamber of Commerce on Oct. 13.

“Bar and Grit have been trail blazers and leaders

in our community for a lot of years,” said Pat Tenney,

executive director of the Lloydminster Chamber, just

minutes before the gala got underway.

“Th ey will be acknowledged as being Saskatch-

ewan Chamber ABEX awards nominees, and we are

very proud of that.

“Tonight is for Lloydminster companies, and it’s

a time for prestigious awards for our community and

a celebration of business excellence.”

Knowing that Grit was nominated the local

Community Involvement Award, Tenney added,

“Th ey are great contributors to our community in

culture, sports and recreation.

“Th at’s what helps to keep the social fabric of

our community going. A healthy business commu-

nity makes for a healthy community overall.”

During the pre-show media scrum, Jim Spen-

rath, Grit’s chief operating offi cer, said his company

feels honoured to be nominated for a local chamber

award, and he was pleased to comment on the two

ABEX nominations.

“We were pretty fl attered. Th ere’s pretty good

company there,” he said about ABEX. “Th ere are

lots of really strong companies. It’s really an honour.

If we happen to win, it will even be that much more

special.

“In 1999 we were the award winner for New

Ventures so we have been around awhile. Th is is our

second time around at the ABEX awards, so it’s very

nice.”

Spenrath says being nominated for the Export

Award is in keeping with Grit’s sales of natural gas

line heaters through its Cold Weather division. Grit

also exports its A-Fire oil tank burner system for

heavy oil applications.

“We have a natural gas dry line heater that is all

over the U.S., especially the Northeast,” said Spen-

rath. “In fact, our heaters heat the natural gas going

into New York City.

“We also have a pilot project under way with the

United Kingdom. We have a large utility there. We

are building a prototype as we speak. Th at product

will be on the ground in 2011. We now we are ex-

porting across the ocean as well.

“It’s a high tech product. We manufacture the

product here in Lloydminster. It’s the heater, the

boiler the heat exchanger – the dry line heater – the

whole system.”

Th e ABEX Environment Award nomination is

an acknowledgement of the reduced greenhouse gas

emissions from Grit’s gas line heaters.

“Our products are environmentally friendly in

terms of the natural gas heating industry. We use

signifi cantly less fuel than conventional models,”

said Spenrath.

“It’s a very low NOX and low emissions, so some

of the advantages we have with some our products

are that they are environmentally friendly with a low

carbon footprint and ease of applications.

Page A7

Jim McCuaig, manager of Bar Engineering’s Building Systems Group, is delighted by Bar’s nomination for an ABEX Growth and Expansion Award by the Saskatchewan Chamber of Com-merce.

Two Abex nominees

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.

Pipeline NewsPublisher: Brant Kersey - Estevan

Ph: 1.306.634.2654

Fax: 1.306.634.3934

Editorial Contributions: SOUTHEAST

Brian Zinchuk - Estevan 1.306.461.5599

SOUTHWEST

Swift Current 1.306.461.5599

NORTHWEST

Geoff Lee - Lloydminster 1.780.875.6685

Associate Advertising Consultants:SOUTHEAST

• Estevan 1.306.634.2654

Jan Boyle - Sales Manager

Cindy Beaulieu

Glenys Dorwart

Kristen O’Handley

Deanna Tarnes

SOUTHWEST

• Swift Current 1.306.773.8260

Doug Evjen

Stacey Powell

NORTHWEST

• Lloydminster

Daniela Tobler 1.780.875.6685

MANITOBA

• Virden - Gail Longmuir 1.204.748.3931

• Estevan - Jan Boyle 1.306.634.2654

To submit a stories or ideas:

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for stories from our readers. To contribute please

contact your local contributing reporter.

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advertising needs.

Special thanks to JuneWarren-Nickle’s Energy Groupfor their contributions and assistance with Pipeline News.

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Fax: 306.634.1041

Published monthly by Glacier Ventures International

Corporation, Central Offi ce, Estevan, Saskatchewan.

Advertising rates are available upon request and are sub-

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Conditions of editorial and advertising content: Pipe-

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All of Pipeline News content is protected by Canadian

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Th e Glacier group of companies collects personal infor-

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we may contact you for purposes of research, surveys and

other such matters. To provide you with better service we

may share your information with our sister companies and

also outside, selected third parties who perform work for

us as suppliers, agents, service providers and information

gatherers.

Editorial

A4 PIPELINE NEWS November 2010 EDITORIAL

Th is month, Pipeline News chose to focus on

Aboriginal involvement in the oil patch, particularly

in Saskatchewan.

Th is paper tries very hard to focus on stories of

the individual entrepreneurs. We talk to more mom-

and-pop operations than we do Calgary CEOs. But

fi nding Aboriginal entrepreneurs in the patch was a

challenge, to put it mildly.

We spent several months digging here and there

for aboriginal entrepreneurs. In southeast Saskatch-

ewan, frequently one name was heard, the head of

Eagle Drilling Services, Derrick Big Eagle. His

company was featured prominently in last month’s

Pipeline News. But when asked about someone other

than Big Eagle, the answer was soon the sound of

crickets.

We did come across two organizations that have

money to invest with Aboriginal entrepreneurs and

organizations. Th e Clarence Campeau Development

Fund has $6 million of federal and provincial money

to invest with Métis people, specifi cally in the en-

ergy and resource sector, a fund that has just recently

become available. Westcap Management looks after

a $20 million First Nations and Métis Fund that has

been around for three years, but to date, has only

made two investments combining for a total of $4 to

$5 million. Th e seed money for the fund was provided

the Indian and Northern Aff airs Canada (INAC).

Westcap soon realized there was a need to ad-

dress governance within First Nations before the

next step of wealth creation can be taken. Th ey now

administer an $8 million program called BRIDG –

Business Ready Investment Development Gateway

-meant to build up the institutional basis for invest-

ment. Th ey were quickly fl ooded with applications for

the program.

Among the three programs, there is $26 million

for investment, plus another $8 million for governance

for Aboriginal people in Saskatchewan. However, on

the investment side, the uptake has been slow, too

slow, given how important and growing the Aboriginal

population is in this province.

Most of the people we talked to were group-based,

i.e. chiefs, associations, bands. Communal thinking,

basically. Even some of the investment fund strategies

are based on bands getting into business.

But the oilpatch is built on individuals. Th at may

not jive with a lot of native culture, but that is how this

industry works. Th at is the culture of the patch, from

the guy who works nights driving his water hauling

truck as a leased operator, to the CEO of a manage-

ment team that builds and fl ips oil companies. Th ey

have their own money invested, and are working hard

to make life better for themselves and their families.

Saskatchewan’s demographics are shifting to a

younger, growing Aboriginal population. Th is is our

future workforce. Th ese are our future entrepreneurs.

Th ere are jobs to be had. Each month, we hear of

companies looking for skilled workers. But there are

also opportunities to be had, as business people.

We hope that more First Nations and Métis

people make the leap to become entrepreneurs. Cre-

ate jobs, not only for yourselves, but others. Th ere is

lots of room to grow. But you have to be ready to take

that step, typically, on your own. It’s time to get in the

game.

Where are the Aboriginal entrepreneurs?

PIPELINE NEWS November 2010 A5

PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR ARE WELCOME.

Email to: [email protected]

Brian Zinchuk

From the top of

the pile

Opinion

Geoff Lee

Lee Side of Lloyd

I believe it was at the Williston Basin Petroleum

Conference in Bismarck last May where I heard a

speaker say, “Th ere’s no cure for low prices like low

prices.”

Th e implication was, with regards to natural gas,

low prices put a halt to drilling. With substantial

production decline curves, supply drops. Soon, sup-

ply becomes short, prices rise, and drilling picks up

again to take advantage of higher prices. Overpro-

duction results in too much supply, and prices fall

again. It’s a cycle that has repeatedly occurred in the

natural gas industry.

Th at cyclical pattern may now be broken, and

unfortunately for gas producers, it broke at the bot-

tom of the cycle.

Several times in the last two months I have spo-

ken to producers who are largely abandoning natural

gas production in favour of oil. Some were looking

to Saskatchewan for their company’s growth, as op-

posed to Alberta. Saskatchewan is more oily, whereas

Alberta is more gassy, they tell me.

When you look at Saskatchewan’s rig count

these days, it’s safe to say nearly all those rigs are

working on oil wells.

What was perhaps most telling was a conversa-

tion I had with the assistant deputy minister for pe-

troleum with Saskatchewan Energy and Resources

while attending the Lloydminster Heavy Oil Show

on Sept. 15. Ed Dancsok said that as of Sept. 3, only

81 gas wells had been drilled in Saskatchewan this

year. Only one year in his 28 years with the ministry

had seen lower gas drilling. In 1982, just seven gas

wells were drilled in Saskatchewan. In 2003, there

were 2,318.

Th e diff erence now, I believe, is that the cycle for

low drilling causing low supply has ceased to func-

tion. Th at’s because supply, on a continental basis,

is no longer low, and likely will not be considered

low for decades. Shale gas production in the eastern

United States and Texas has fundamentally changed

the game. While the production and transportation

infrastructure will take a long time to get caught up

to what is currently in place in Western Canada, at

some point, it will.

Th ere’s a big push for more natural gas usage.

Over the next several years, we’re going to see a large

changeover from coal to natural gas power production.

Currently in Saskatchewan alone, several peaking

power plants and one baseload power plant are being

built with natural gas feedstocks. While the peaking

plants are to be expected, in a province where coal

has been king, seeing a natural gas baseload station

is a bit of a switch.

Th is should be driving more drilling in Saskatch-

ewan, but it’s not. Th e province brought in horizon-

tal drilling incentives for natural gas in June, and so

far, they’ve hardly been touched. If those incentives

were meant to be the defi brillator paddles to shock

the drilling fl atline, they’re not working, at least, not

yet. We’re in danger of losing the patient.

We’ve got people like T. Boone Pickens push-

ing for a more natural-gas based economy in North

America. Th is would take advantage of domestic,

i.e. not Middle Eastern, energy sources, and reduce

the carbon footprint. Some people would like to see

fl eets of natural gas semis replace diesels in the com-

ing years.

Th is hinges on cheap natural gas and plenty of

it. Th e problem is, there is not going to be plenty of

it if no one is willing to pay for it. Th is is not like the

farming business, where for decades farmers have

struggled under low world prices because they had

no other option other than quitting farming. Com-

panies that have the expertise to produce gas can

shift to oil production, as I am already seeing.

We’ve now found ourselves on the wrong side

of the continent, shipping gas a long way to distant

markets. It’s tough to compete against gas they can

drill for within a few hours drive of the eastern sea-

board. If the math doesn’t work for Alberta and Sas-

katchewan gas, you can forget the Mackenzie Valley

Pipeline making fi scal sense in the next decade or

two.

We may now have large continental gas reserves

unlocked by new technology. Unfortunately, the

technology that is having a tremendous impact un-

locking previously unusable reserves like the Bakken

or breathing life into old fi elds like the Cardium is

killing off our local gas production industry. For that,

the answer for gas producers is going to be the same

thing they told farmers for years – diversify.

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

Gas price cycle fell apart

Suncor Energy will go down in history as the

fi rst oilsands company in Alberta to complete the

reclamation of a tailings pond.

Th e milestone was reached Sept. 23 with the

reclamation of a 220-hectare site known as Pond

1 and renamed Wapisiw Lookout at the ceremony

to honour the Aboriginal heritage of the region.

Pipeline News reported the milestone in ad-

vance in our September edition. Th e event scores a

major point for industry in the ongoing PR battle

over the environmental perception of the Alberta

oil sands as green or dirty.

Suncor and the Alberta government found an

ally in Chief Jim Boucher of the Fort McKay First

Nation who views the project as a positive sign.

“I'm really proud of this work that we’ve done

here and I’m hoping this will set the stage, this

will set the standard in terms of reclamation for

the oil sands industry and that what we leave be-

hind for future generations is something that the

community can use for traditional purposes and

something we can use to support a sustainable way

for our communities,” said Boucher.

Th e tailings pond milestone follows on the

heels of Suncor’s new tailings management system

called TRO reported at length in Pipeline News.Suncor expects to invest more than $1 billion

to implement the TRO technology over the next

two years, potentially reducing tailings reclama-

tion time by decades, and speeding the return of

oilsands mining sites to natural habitat.

Th e fi rst reclaimed tailings pond generated a

wealth of positive news for the province.

“Th e reclamation of this tailings pond is a his-

toric achievement, not only for this company, but

also for the oil sands industry, our province, and

our country,” said Alberta Premier Ed Stelmach

in a news release.

“I was happy and proud to be standing on the

solid ground of this former tailings pond today, as

it is evidence that tailings ponds can and will be

reclaimed.

“Th e existing tailings ponds will continue to

be a challenge for Alberta, but the challenges of

oil sands development have always been solved

through investment in technology and innova-

tion.

“Albertans are excellent innovators and I’m

confi dent that one day tailings ponds as we know

them will no longer exist."

Th e new technology will allow Suncor to meet

Alberta’s Directive 74 guidelines on mature tail-

ings fi nes.

Reclamation is destined to become a major

sustainable industry as oil companies have to re-

claim their expended mining operations as well.

So far they have barely scratched the surface.

Suncor for example, reports it has disturbed

more than 17,161 hectares of land since 1967 and

had reclaimed approximately 1,182 hectares by

2009.

Suncor expects to begin using its TRO tech-

nology this year on a commercial scale which will

allow it to speed up the reclamation of its nine

active tailings ponds.

More good environmental news will be fl ow-

ing from the oilsands in the coming months as

new reclamation success stories literally take root.

For the industry’s sake, let’s hope the word

spreads like weeds.

Reclamation is PR ammo for oilsands

Page A2

Th e Level 1 welding

program at BICC fol-

lows the SIAST applied

welding program and

credits students with

about 850 hours of ap-

prenticeship time during

a 20-week semester.

“We generally have

more people applying

than we have room for,

so we are looking to ex-

pand with more courses

and a bigger facility to

meet the demands of our

partners in the industry,”

said Ironstand.

Th ere are also plans

to off er the fi rst Level 2

welding program start-

ing Feb. 21, 2011 to

the delight of instructor

Dwight Doshen.

“We began this in

2005 so that’s been go-

ing six years that we have

been putting out Level

1s,” he said.

“Th ere are a lot of

‘ones’ that don’t want

to go to Saskatoon or

Moose Jaw to continue

their training. We fi g-

ured it was about time

we off ered a Level 2 here

to move them up the

ladder.”

Doshen says the

Level 1 program pro-

vides men and women

students with really good

hands-on experience.

“It’s over a period of

fi ve months so they come

out of well-rounded,”

he said. “At the end of

this program when they

graduate they would be

able to get on pretty well

anywhere as an entry

level welder.

“It gives them good

skills with torch cutting

and arc welding and the

mig welding which is

used quite a bit in the in-

dustry. Th ey have a pret-

ty good handle on things

when they leave here.

“What they need

to work on from here

is blueprint reading and

fabrication skills which

we don’t get into too

much here. It’s mostly

welding and cutting.”

BICC also has a

carpentry school and

provides all trades stu-

dents with a required

course in Construction

Safety Training System

(CSTS) basics.

“All of our clients

have to pass the CSTS

which is mandatory in

Alberta to get on a trade,

but not yet here,” said

Ironstand. “We want ev-

erybody to be safe when

they leave our offi ce be-

fore they go to a job.”

SIIT and BICC

also provide job men-

toring and coaching to

First Nations placement

workers.

“Our doors are al-

ways open,” said Iron-

stand, who sometimes

works as job coach to

new hires at companies

like Empire or GLM.

“A lot of times the

guys were unsure about

how to go about doing

certain things or what

their responsibilities or

rights were and we would

talk with them and iron

out the problems,” ex-

plained Ironstand.

“We act as an in-

termediary between the

companies and the em-

ployees. Seeing a famil-

iar face is always reassur-

ing for the guys.

“We help the guys,”

he said. “We usually

spend some time work-

ing on life skills and

what it’s like to make the

transition into the main-

stream workforce.

“In the past that has

been a huge barrier for

the First Nations, but

we are slowly overcom-

ing that. Our training

is changing every day to

meet the needs of the in-

dustry.”

Th e First Nations’

apprentices and Empire

can rely on SIIT’s career

job coach Earl Greyeyes

to assist with the inte-

gration and skills de-

velopment issues on the

job.

Empire has a non-

discriminatory policy at

work, but McGuire says

feeling welcome is the

key to success.

“With the combina-

tion of the job coaching

and the general spirit

of our workers and the

welders in the shop wel-

coming people – it’s a

big thing to be welcome.

You have to feel part of

the organization,” he

said.

Empire also allows

its First Nations’ welders

to attach a sticker to the

equipment they make

that includes the head-

ings “Building a Future

Together” and “1st Na-

tions Employment in

Saskatchewan.”

Empire has worked

with BICC to add fabri-

cation skills development

to the welding program

to meet its employment

needs for break and

shear operators, people

with machining abilities,

and people with fabrica-

tion skills.

Asked if this a good

time for First Nations job

opportunities, Ironstand

said, “Absolutely, the

door is open right now,

and we are busy train-

ing people and knocking

on doors and doing in-

terviews to let everyone

know that we’re here.

“Give us a call and

give us a chance. Com-

panies like Empire have

given us a chance and I

hope we have opened

their eyes that we are

every bit good as anyone

else.

“Th e First Nation

workforce is the larg-

est untapped resource in

Saskatchewan. We are

here, we are trained, we

are professionals – we

are ready to work.

“When all of in-

dustry starts to see that,

there will be a huge

impact here and across

Canada.”

A6 PIPELINE NEWS November 2010

Donald “Chief” Adams, left, from the Sweet Grass First Nation, talks with welding instructor Dwight Doshen about his test piece.

Bill Ironstand, left, who administers the Battl-efords Industrial Career Centre (BICC), poses with Don McGuire, the general manager of Em-pire Welding and Machining Ltd. About 30 to 40 per cent of Empire’s welding staff has a First Na-tions’ heritage.

Nearly half of welding crew is Aboriginal

Page A3

“Th e environment

side of it is one of our

targets. We wanted to be

environmentally friend-

ly. Going into Europe, it

has to be in order to be

successful.”

BAR EngineeringBAR Engineer-

ing’s ABEX nomina-

tion for the Growth

and Expansion Award

is not surprising given

the diversifi cation of

the Lloydminster-based

company.

BAR Engineering’s

projects cover everything

from heavy oil batteries

and gas compression to

electrical/instrumenta-

tion, municipal and re-

fi nery work.

“Well I think it’s

a great honour for our

company, and it shows

that our company is

growing and expand-

ing in the Alberta and

Saskatchewan markets,

so we are very honoured

to be nominated,” said

Jim McCuaig, manager

of Building Systems

Group.

“Our growth is on

a number of forefronts

chiefl y in Saskatchewan.

We just started up a

branch offi ce in Wey-

burn. We have two staff

down there, and we just

hired a receptionist last

week.

“We are doing a lot

of work with oilfi eld

clients, and we are also

doing work in our build-

ing systems groups and

structural groups down

there as well as doing

work with municipal

markets.

“Our latest projects

are with the Govern-

ment of Saskatchewan’s

Disaster Assistance Pro-

gram and doing a num-

ber of site inspections

down there,” McCuaig

said.

One of the biggest

steps taken by BAR

was the purchase two

years ago of PFM En-

gineering, a structural

engineering specialist in

Lloydminster.

“Peter Miler, the

former owner, was re-

tiring and it just made

good business sense to

purchase that company

and bring them into

BAR Engineering,” said

McCuaig.

“We started up the

Building Systems Group

last year because there

was a natural synergy be-

tween the structural en-

gineering. We were able

to bring in electrical and

mechanical engineering

to produce a complete

building systems pack-

age for our clients.”

BAR and Grit give a

thumbs up to the Lloy-

dminster chamber and

they encourage more oil

and gas related compa-

nies to become mem-

bers. Th e chamber cur-

rently has approximately

530 members.

“I would defi nitely

encourage some of our

member companies in

the area in the oilpatch to

go into the branch,” said

McCuaig. “Th e more di-

versifi cation we have to

go into the chamber – it’

s a win-win situation for

everybody.”

Ditto the enthusi-

asm from Lloydminster

Mayor Jeff Mulligan

who says the chamber

has a “pretty good repre-

sentation of our business

in the city,” but he notes

there is room for more

oil and gas companies.

“People think of the

chamber as a retail and

a services organization,

and they don’t extend

the thought out to our

manufacturing and oil-

fi eld service companies,”

he said.

“Th e business

knowledge that an oil-

fi eld entrepreneur could

bring to this chamber –

successful oilfi eld busi-

nesses in transportation,

exploration and oilfi eld

services – what they

could add to the cham-

ber would be immeasur-

able.”

Editor’s note: Results of the Abex awards were not available at press time. Please watch for next month’s Pipeline News to see how BAR Engineering and Grit Industries fared.

PIPELINE NEWS November 2010 A7

Two Lloyd companies up for ABEX awards

Grit and grin: Grit Industries representatives Janice Van Berkel, Jim Spen-rath, Claude Sylvestre and Jason King share a laugh during the 2010 Busi-ness Week Awards Gala put on by the Lloydminster Chamber of Com-merce. Grit is nominated for two Achievement in Business Excellence Awards (ABEX) by the Saskatchewan Chamber of Commerce.

A8 PIPELINE NEWS November 2010

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By Geoff LeeOnion Lake – Onion Lake Cree Nation is taking

its work commitments from Black Pearl Resources

and Canadian Natural Resources to the bank to buy

into the oilfi eld service business.

Th e plan to purchase a fl eet of service equipment

such as vac and pressure trucks follows the success-

ful startup of a band-owned fl uid hauling company

called Askiy Apoy Hauling.

“We have work commitments from Black Pearl

and CNRL so far for the vac and the pressure trucks,

fl ushbys, service rigs and mechanics and stuff – you

bet,” said general manager Larry Holman.

“We are moving forward on that. We are look-

ing at a big major expansion. It’s going to be good.

“It will be a division of Askiy Apoy. We haven’t

got a name picked out for it yet.

“Depending on funding availability, we are look-

ing at putting up a 14 to 16 bay shop about six kilo-

metres north of Onion Lake just before we get into

the heart of all the drilling.

“We will get the ‘full meal deal’ out of that shop.

It will be fully operational. I would guess there would

a dozen employees working,” Holman said.

Work commitments are also expected from Nu-

vista Energy that is drilling on reserve land and fuel-

ing optimism about new business and employment

opportunities for Onion Lake.

When fi rst interviewed at the Lloydminster

Heavy Oil Show on Sept. 16, Holman reported that

Askiy Apoy has gone into overdrive since he was

contracted to start the company for Onion Lake.

Holman worked for Standchuck Trucking for

eight years in his last job, and was ready for change

at the same time the band council was anxious to get

into the fl uid hauling business.

“I talked with the band council and they wanted

to hire me,” said Holman. “Th e impression I get is

that Onion Lake isn’t afraid to hire outside to get the

help they need. I like it. It’s been good so far.

“Th ey hired me on Jan. 5, 2009, and we hauled

our fi rst load on April 2 that year. We started out

with two trucks and one trailer.

“Since that time we’ve just been steadily expand-

ing. We have purchased approximately 33 trailers in

a year and a half,” Holman said.

Th e trailers are driven by owner/operator drivers

who are First Nations members from Onion Lake

and outlying reserves including Frog Lake First Na-

tion that wants to haul fl uid from its reserve as well.

“We are looking at another 10 trailers over there

just hauling fl uid,” said Holman from the band offi ce

located in the Onion Lake Business Development

Corporation building.

Page A9

Onion Lake to up its stake in

Larry Holman, general manager of Askiy Apoy Hauling owned by Onion Lake Cree Nation, is anked by safety eld managers Roger Lewis, left, and Wayne Waskewitch at the Lloydminster Heavy Oil Show. The company owns approximately 33 trailers drivens by First Nation owner/operators.

PIPELINE NEWS November 2010 A9

Page A8

“I would assume we would push our pressure and our vac work over there

too.”

Holman says the band has secured funding to train band members in fl uid

hauling and operating vac and pressure trucks through Lakeland College.

Askiy Apoy has also has its in-house training program under the direction

of Roger Lewis, band safety fi eld manager, and Wayne Waskewitch, who oversee

all safety concerns.

Keith Miller is the dispatcher who keeps track of all oilfi eld trucks operating

at Onion Lake on the Alberta and Saskatchewan sides of the reserve.

All fl uid from oil and gas production at Onion Lake is hauled off reserve.

“Water from Black Pearl goes over to a disposal near Tulliby Lake and water

from CNRL goes to Tanglefl ags,” said Holman.

“Oil goes to various places. Black Pearl’s oil mostly goes to Husky’s facilities.

CNRL’s goes to all CNRL facilities near Lloydminster and Tanglefl ags.”

When asked if he thinks the oil and gas industry on the reserve has given

the community an economic boost, Holman said, “You bet. Th ings are changing

every day.

“You will see lots of progress at Onion Lake if you drive up there. Th ere’s

new buildings going up and new housing. I started in January 2009, and things

have changed dramatically since then.

“In my opinion it looks good for the band.”

oil eld hauling and servicing

This is the site of Black Pearl Resources’ eld of ce at Onion Lake Cree Nation. All uid from Onion Lake is hauled off reserve by the band’s Askiy Apoy Hauling company and other private oil eld companies operating in the area.

Meridian Ring RoadPipeline News reporter Geoff Lee, middle, was presented with a ceremo-nial cheque for $500 on Oct. 7 for having the winning entry in a “Name That Road” contest involving four municipalities. Lee’s entry, Meridian Ring Road, was chosen by an intermunicipal panel of judges as the of -cial name of the ring road that routes oil eld and industrial traf c through four municipalities. Lee is anked on the left by Louis Genest, chief ad-ministrator of cer for the RM of Britannia, and by Richard Van Ee, reeve of the County of Vermilion River. On the right is Jeff Mulligan, mayor of Lloydminster and Darren Elder, chief administrative of cer, of the RM of Wilton. The cheque presentation took place at the intersection of 12th St. and Highway 17 that connects part of the Meridian Ring Road.

A10 PIPELINE NEWS November 2010

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BONNYVILLE / FORT MCMURRAY / CALGARY

Regina – Th e leaves have fallen

from the trees, but the rose has not

fallen from the bloom of Crown pe-

troleum and natural gas rights sales in

October.

Saskatchewan gained $34.5 mil-

lion in revenue from the October

sale pushing the land sale revenues

for 2010 to $406 million. Th at’s way

ahead of the $83 million in revenue at

the same time last year.

“Our oil and gas industry is on

an upswing in 2010, and these latest

results show the industry’s confi dence

not only in our resources but also in

our investment climate,” said Energy

and Resources Minister Bill Boyd.

“Th is is only the second time our

calendar year total for land sale rev-

enue has topped $400 million, so with

one sale to go, 2010 is proving to be a

great year indeed for the industry and

for the people of Saskatchewan.”

Th e October sale included 19 pe-

troleum and natural gas exploration

licences that sold for $20 million and

183 lease parcels that attracted $14.5

million in bonus bids.

Th e Weyburn-Estevan area

topped the province with sales of

$25.5 million. Th e Kindersley-Ker-

robert area was next at $4.9 million,

followed by the Lloydminster area at

$2.4 million, and the Swift Current

area at $1.7 million.

“Th e Bakken play continues to

grab the headlines, but it’s encourag-

ing to see new activity in emerging

plays such as the Birdbear Formation

between Moosomin and Carlyle,”

Boyd said. “Th e industry is casting its

exploration ‘net’ wider, and is being

rewarded for its investments.”

Th e highest price for a single

parcel was $7.1 million paid by

Prairie Land & Investment Ser-

vices Ltd. for a 2,562-hectare ex-

ploration licence near Moosomin.

Th e highest price on a per-hectare

basis was $9,344 while Aldon Oils

Ltd. bid $1.2 million for a 130-hect-

are lease parcel near Radville.

Th e next sale of Crown petroleum

and natural gas dispositions will be

held on Dec. 6, 2010.

Land sales summary (all numbers rounded up)

Weyburn-Estevan areaTh e total bonus received in the

area was approximately $25.5 mil-

lion, an average of $665/hectare. Th is

compares to $79,328,768 an average

of $3,551/hectare at the last sale.

Th e top purchaser of acreage

in this area was Prairie Land & In-

vestment Services Ltd. who spent

$17,280,528 to acquire six lease par-

cels and four licences.

Th e top price paid for a single

lease in this area was approximately

$1.6 million paid by Prairie Land &

Investment Services Ltd. for a 1,036

hectare parcel situated 10-km west of

the Amulet Ratcliff e Beds Pool, 6-km

north of Ogema.

Th e top price paid for a single li-

cence in this area was $7,056,021 paid

by Prairie Land & Investment Ser-

vices Ltd. for a 2,562 hectare block

situated 6-km north of the Park-

man Souris Valley Beds Pool, 23-km

southwest of Moosomin.

Th e highest dollar per hectare in

this area was received from Aldon

Oils Ltd., who paid $9,344/hectare

for a 129.50 hectare parcel located

one-km west of the Ceylon Bakken

Pool, 14-km west of Radville.

Kindersley-Kerrobert areaTh e total bonus received in the

area was approximately $4.9 million,

an average of $164 /hectare Th is com-

pares to $3 million and an average of

$339/hectare at the last sale.

Th e top purchaser of acreage in

this area was Teine Energy Ltd. who

spent $2 million to acquire two li-

cences.

Th e top price paid for a single

lease in this area was $239,308 paid

by Windfall Resources Ltd. for a 777

hectare parcel off ering split rights

and located within the Luseland Vi-

king Sand Gas Pool, 15-km south of

Denzil.

Th e top price paid for a single

licence in this area was $1.6 million

paid by Teine Energy Ltd. for a 1,101

hectare block situated adjacent to the

Dodsland North Viking Gas Pool,

25-km northwest of Rosetown. Th is

is the highest dollar per hectare in

this area at $1,479/hectare.

Lloydminster areaTh e total bonus received in the

area was approximately $2.5 million,

an average of $1,165/hectare. Th is

compares to $10.3 million, an average

of $378/hectare at the last sale.

Th e top purchaser of acreage in

this area was Plunkett Resources Ltd.

that spent $534,027 to acquire one

lease parcel.

Page A11

No signs of fall in provincial land sales

PIPELINE NEWS November 2010 A11

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Lloydminster – Cas-

terland rolled into the

Lloydminster Heavy Oil

Show to build its cus-

tomer base for its lines

of casters, wheels, glides,

heavy duty rollers and

handling equipment.

Fabrication, weld-

ing, manufacturing and

material handling shops

in the area are the prime

customers for Caster-

land’s MC Wheels Ltd.

outlet in Edmonton.

Marshall Paxton, the

general manager, held

court at the Casterland

booth Sept. 15-16 eager

to answer questions such

as, “What brings you

here?”

“A lot of our cus-

tomers are here. Th is

is our fi rst time at the

show, and we thought

we would check and see

what we could do for this

industry,” said Paxton.

“We have not really

penetrated the market

in Lloydminster, but

we will concentrate our

marketing eff orts more

on this area noting they

don’t do installations.

“We only do sales,

but we sell to people

who are in the business

of installations,” Paxton

said.

Casterland sells a

full range of specialty

tires and tubes for lawn

and garden vehicles,

ATVs, and trailers, but is

best known in Western

Canada for its wheeled

solutions for moving

heavy duty loads.

“Th e larger weight

capacity – we usually

have very good pricing

on that kind of thing,”

said Paxton. “We can

provide a product to

move it in almost any

application mostly inside

on concrete fl oors.

“Anything that needs

wheel on it – we can

supply any weight ca-

pacity from fi ve pounds

to 50,000 pounds.”

Hilman rollers allow

one person to move up a

three-ton load easily and

safely, with some models

capable of moving up to

100 tons.

Paxton says ease of

movement is the main

selling point of Caster-

land’s products, followed

by concerns for worker

safety.

“A lot of our equip-

ment is already approved

for that so people don’t

have to look farther. It’s

a no brainer if you want

to save your back,” he

said.

Casterland distrib-

utes its products from

locations in Winnipeg,

Edmonton, Calgary and

Vancouver.

Th e company is

owned by the Reid fam-

ily in Winnipeg and is

celebrating 35 years of

service this year.

Keeping oil and gas shops on a rollMarshall Paxton, gen-eral manager of Cas-terland’s MC Wheels Ltd. store in Edmon-ton, displays an LE se-ries twin caster with a 5,000 lb. capacity driv-en on urethane wheels on cast iron.

Page A10

Th e top price paid

for a single lease in this

area was $534,027 paid

by Plunkett Resources

Ltd. for a 259 hectare

parcel situated three-

km east of the Epping

Mannville Sands (Oil)

Pool, 16-km northeast

of Marsden.

Th e highest dollar

per hectare in this area

was received from Prai-

rie Land & Investment

Services Ltd. that paid

$7,401/hectare for a

16.19 hectare parcel lo-

cated within the Mars-

den North Sparky Sand

(Oil) Pool, 12-km west

of the town of Mars-

den.

Swift Current areaTh e total bonus re-

ceived in the area was

approximately $1.7 mil-

lion, an average of $582/

hectare Th is compares

to $2.5 million, an aver-

age of $387/hectare at

the last sale.

Th e top purchaser

of acreage in this area

was Ranger Land Ser-

vices Ltd. that spent

$429,603 to acquire two

lease parcels.

Th e top price paid

for a single lease in

this area was $390,010

paid by Scott Land &

Lease Ltd. for each of

two 259 hectare parcels

situated adjacent to the

Whitemud Shaunavon

(Oil) Pool, 15-km

southeast of Eastend.

Th is is the highest dol-

lar per hectare in this

area at 1,506 /hectare.

Provincial land sales

A12 PIPELINE NEWS November 2010

Lloydminster – Roblan Cook Agencies Ltd. gen-

erated a high voltage impact at the Lloydminster

Heavy Oil Show with demos of Meltric decontac-

tors that make motor change-outs and electrical

maintenance easier and safer.

Th e Calgary-based company is a manufactur-

ing representative agency that sells Meltric Corpo-

ration decontactors and other electrical equipment

to electrical companies in eastern British Columbia,

Alberta and Saskatchewan.

Th e Meltric decontactor is the only plug and

receptacle on the market that functions as a CSA-

rated switch.

“Th ey are a very well-known product now be-

cause a connection can be made and broken under

load without endangering the electrician,” said Ro-

blan Cook Agencies’ owner Delbert Cook, who has

been in business for more than 26 years.

“It can go onto any type of machinery – every-

thing from motors to power lines. We have done a

lot of temporary work up in the Fort Mac area.

“Th is year alone, we have done in the tune of

$500,000 to $750,000 of temporary power work on

major projects. Th at’s everywhere from Suncor to

Kearl Lake to Syncrude,” said Cook.

Meltric decontactors are a plug, receptacle and

disconnect switch in the same device, eliminating

the need for expensive switch and interlocks required

with competing connection devices.

Th e key parts are the male and female ends en-

cased within the body of the unit so there’s no live

parts exposed to any electrician installing it.

“Th e main benefi t is safety and it’s easy to in-

stall,” said Cook. “If you have a previous installation

of another product line or one of our competitors, all

we have to do is replace their male and female device.

We have adapter plates that go on to the existing

boxes.

“Some of our competitors actually buy our prod-

uct and put it downstream from their product, so

anything from the device down is protected.

“We have been promoting the product line to

any industry from water treatment plants to oil and

gas companies and the coal mining, forestry and

food processing sectors,” said Cook.

A major selling point of Meltric decontactors is

they are the only such products in North American

that are arc fl ash compliant to prevent shock, elec-

trocution and arc fl ash explosions.

“What that means is that no one can access any

live parts within our device,” said Cook. You can dis-

connect it in 15 milliseconds and it’s still locked. You

can’t access any of the live parts.”

Th e Meltric decontactors allow users to make

and break connections under full load. A quarter

turn of the device disconnects the male and female

components.

When disconnected, the decontactor provides

visual verifi cation power is off .

“You can lock the female side off and also pad-

lock it off , or you can also do the same thing with the

male end because we have a NEMA 4X (National

Electrical Manufacturers’ Association) waterproof

rated cap that goes over the top of that,” said Cook.

Decontactor makes a high voltage impactDecontactor makes a high voltage impact

Delbert Cook sells a lot of these Meltric decon-tactors to electrical companies in Western Can-ada.

Lloydminster – Air-

com Instrumentation

Inc. accomplished its

goal of increasing its

name recognition to

heavy oil customers dur-

ing the Lloydminster

Heavy Oil Show Sept.

15-16.

Th e strategy of fl y-

ing the corporate fl ag

at industry exhibits has

helped the Edmonton-

based specialty manu-

facturer of temperature

and pressure instruments

set another sales revenue

record for its fi scal year-

end on Sept. 30.

“Th e last three years,

including the recession

year, have been kind of

remarkable. We haven’t

had a drop in sales. We

have actually gone up in

sales,” said sales manager

Rick Hays, who manned

the booth with territory

manager Sean Lavin.

“We actually sur-

passed last year’s num-

bers. We are 1.8 per cent

higher than last year.

Th at’s three successive

record years in a row.”

In the Lloydminster

area, Husky Energy is a

major buyer of Aircom’s

instrumentation prod-

ucts, especially this year

with the ongoing main-

tenance turnaround at

the Husky Upgrader.

“Th ey have heavy

oil applications, gas ap-

plications, and a lot of

heavy oil well sites have

our temperature and

pressure products,” said

Hays.

Aircom also custom

manufactures tempera-

ture sensors and dis-

tributes products such

as pressure transmitters,

pressure and tempera-

ture gauges and temper-

ature transmitters.

“Th e equipment

would go into a lot of

SCADA or plant envi-

ronments,” said Hays.

“Many times, you are

trying to measure tem-

peratures or pressures

within a plant or in the

fi eld – that’s where our

products would go.”

Aircom Instrumen-

tation Inc. is one of two

divisions of Aircom In-

dustries along with Air-

com Specialty Services

Ltd. that provides spe-

cialty welding services.

Th ose welding ser-

vices include instrumen-

tation welding and pres-

sure welding on all metal

alloys along with overlay

and inlay work.

Customized manu-

factured instruments

include devices such

as thermocouples and

RTD sensors and a va-

riety of thermowells and

downhole sensors.

“Our typical deliv-

ery on a custom manu-

factured product will be

seven to 10 days,” said

Hays.

“However, more

often than not, we can

manufacture that prod-

uct in the same day and

have it shipped out the

next day.

“We do have quite

a bit of inventory. We

custom inventory a lot

of products for specifi c

customers and we do a

lot of custom manufac-

turing. We have a lot of

the raw materials ready

to use up.”

Products unique to

Aircom include boiler

tube block thermocou-

ples, break-to-length

RTDs and thermocou-

ples, and an injection

quill among others.

Aircom has been

in business since 1964,

and is currently owned

by Dan Harcourt with

20-25 employees on the

payroll.

PIPELINE NEWS November 2010 A13

of The BattlefordsIndependently Owned and Operated

FOR YOURREAL ESTATE NEEDSIN WEST CENTRALAND NORTHWESTSASKATCHEWAN:

Wally LorenzSales Associate

1391 - 100th St.

North Battleford, SK

S9A 0V9

Day or Night

Cell: (306) 843-7898Bus: (306) 446-8800

[email protected]

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Aircom instruments vital to heavy oil production

Sean Lavin, the Lloydminster territorial sales manager for Aircom Instrumentation Inc., dis-plays a CSA-approved temperature sensor at the Aircom booth during the Lloydminster Heavy Oil Show.

Rick Hays, sales manager for Aircom Instru-mentation Inc., holds a CSA-approved pressure transmitter in his hand.

A14 PIPELINE NEWS November 2010

Lloydminster – Dustin Fallscheer scored a quick

point about the portability of a Canmet hydrocy-

clone by holding one aloft to start his presentation

of the Lloydminster Heavy Oil Technical Sympo-

sium Sept. 15-16.

Fallscheer is a staff engineer with BAR En-

gineering in Lloydminster who spoke about the

Canmet hydrocyclone as an emerging technology

to treat produced water, slop oil and other oily ef-

fl uents.

It could replace conventional gravity-based free

water knockout vessels, API separators and settling

tanks that require long retention times to achieve

separation.

“It’s a tool to recover oil from produced water

and also to treat slop oil to recover as much oil from

waste streams as we can,” said Fallscheer, who says

the working principle is centrifugal force.

“What diff erentiates the Canmet hydrocy-

clone from other separator technologies is the large

amounts of G-force that is generated with these

tubes.”

BAR Engineering has the licence to market the

hydrocyclone technology developed and patented

specifi cally for heavy oil in Western Canada by Can-

met Energy Technology Centre in Devon Alberta.

“Canmet designed a hydrocyclone specifi cally

for separating heavy oil,” said Fallscheer. “Th ey have

been working on hydrocyclone technology for over

20 years.

“Th ey took the standard hydrocyclone that’s

been around since the 1960s, modifi ed it and pat-

ented it for use in heavy oil.”

Th e Canmet hydrocyclone produces centrifugal

force of 170 Gs compared to just 1G for a conven-

tional water separator and skim tank.

Th e device sits horizontally inside a vessel and

has no moving parts ensuring a minimal amount of

maintenance is required.

Fluid enters the tube though one of four open-

ings or involutes on the Canmet hydrocyclone ver-

sus one involute on a standard hydrocyclone.

In a nutshell, the way it works is fl uid is pumped

into a vessel and as it fl ows through the hydrocy-

clone centrifugal force speeds up to separate the oil

and the water.

“It’s based on Stokes’ Law which are the prin-

ciples for droplet velocity,” said Fallscheer. “If you

can increase the G-forces on those droplets, it will

speed up the velocity and you will get separation.”

Resident time for fl uid in a Canmet hydrocy-

clone is just two seconds compared to hours for

conventional gravity based systems. A single tube

can handle 50 cubic metres a day.

“Th ey are very cost eff ective and have a small

footprint,” said Fallscheer.

It is easy to relocate a hydrocyclone system, of-

fering a much higher salvage value.

Husky Energy has been using a Canmet hydro-

cyclone at its Lloydminster oil refi nery since 1999

to treat approximately 500 cubic metres a day of de-

salter effl uent.

“It can save money by not having to haul pro-

duced fl uids off site. Trucking waste fl uid is very ex-

pensive plus you lose your revenue from that oil,”

said Fallscheer.

Th e beauty of the technology is that is can be

used to separate any two liquids with diff erent den-

sities.

“Th is technology is being used in the Gulf to

separate oil from salt water. It’s a worldwide tech-

nology that’s not just limited to heavy oil.”

Th e liquid-liquid technology is not without

its limitations, most notably, the presence of gas in

the emulsion which can have an impact on perfor-

mance.

“Th ere is also reduced effi ciency with oil droplets

smaller than 10 microns,” said Fallscheer. “When

they are that small, they are diffi cult to remove.

“Th ere is also the diffi culty of handling the den-

sity of oil-wet clays.”

Fallscheer says Canmet originally intended the

tool for use only in de-oiling, but over the last 10

years they have adapted it for treating slop oil.

Testing determined the hydrocyclone works

best as a two-stage treatment to produce a stream of

overfl ow oil and a stream of underfl ow water.

Th e unit is designed with an adjustable overfl ow

orifi ce to target clean water with a smaller orifi ce

size for the fi rst stage, then clean oil with a larger

opening on the second stage.

With the Canmet unit, the diameter of the

overfl ow (oil) orifi ce can be changed during opera-

tion to add an element of performance control.

Canmet ran fi eld tests for de-oiling with a goal

to reduce the amount of oil from a skim tank or a

treater to 100 parts per million.

Th e average input feed from 14 tests was 1,700

ppm but after the two-stage treatment, the goal was

surpassed with an average of 172 ppm in the fi rst

stage and 62 ppm after the second.

“Th at proved the eff ectiveness of the hydrocy-

clone,” said Fallscheer. “Th e test was run with one

tube and 50 cubes a day of water.”

Canmet also determined the optimal operating

feed pressure is 150 psi.

Lab tests on treating slop determined the op-

timal concentration of oil in the hydrocyclone at

20 per cent which is achieved by “conditioning” the

feed stream with water.

Page A15

Canmet hydrocyclone storms

PIPELINE NEWS November 2010 A15

Suite 2, 6209-44 Street, Lloydminster, AB T9V 1V8 DISPATCH 780-808-3999 OFFICE 780-808-2994 FAX 780-808-6393

Let our team of professionalstake care of all your service needs.

BAR Engineering’s Dustin Fallscheer holds up a patented Canmet hydro-cyclone designed to treat large volumes of produced water and slop oil quickly and ef ciently.

into the heavy oil market Page A14

Fallscheer reported the fi rst bench

test used a feed of 15 per cent and “we

were able to concentrate that in our

outfl ow to 65 per cent oil with 99 per

cent recovery with a separation effi -

ciency of 65 per cent.”

Other tests ranged from 70 per

cent to 40 per cent effi ciency.

“With the success of this bench

test, Canmet was able to complete

a fi eld test at a heavy oil site,” said

Fallscheer.”

Th e unnamed company was haul-

ing 240 cubes of fl uid a month which

was costing them money.

Canmet used the two-stage hydro-

cyclone set up and added conditioned

water to the slop to reduce it down to

the 20 per oil concentration.

“During a month, they treated

236 cubes of slop and not one cube of

slop was hauled off site. It allows the

company to treat the oil on site,” said

Fallscheer who calculated the saving at

$26,000.

Petrostar signs $1.3 million dealPetrostar Petroleum

Corp. has accepted an

off er to purchase its

Maidstone and Lash-

burn heavy oil fi elds

near Lloydminster, from

Pavillion Energy Corp.

of Richmond, B.C.

Th e off er is for both

properties being sold as

a package for $1.3 mil-

lion. Th e closing date

for the deal was Oct.

15.

Petrostar said the

sale will allow it to fo-

cus on the development

of the company's Bak-

ken properties in south-

east Saskatchewan and

southwest Manitoba.

Proceeds of the

sale will be used to fur-

ther develop current

holdings in the Bak-

ken properties; look

for other possible land

acquisition or farm-in

opportunities; and re-

tire debt.

In addition, the

company announced it

has entered into the due

diligence phase with

Capital Corp. Merchant

Banking. Th is phase is

the fi nal step in procur-

ing the $5 million pre-

viously announced and

subsequent additional

funding of $15 million

upon a successful drill

program.

Petrostar has cre-

ated a wholly owned

subsidiary, Bakken Oil

Resources Inc., to facil-

itate this joint venture.

Twenty-three quar-

ter-sections of leased

land in Moosomin and

Kirkella areas will be

rolled into the venture,

and when the funding

closes, $5 million will be

contributed by CCMB

for a 50 per cent inter-

est in Bakken Oil.

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Lloydminster –

MTM Energy Services

Inc. will be remembered

for using their steel

BOS storage shed as an

outdoor booth, prod-

uct storage space and

weather shelter at the

Lloydminster Heavy

Oil Show Sept. 15-16.

Diversifi cation is

central to the growth

strategy of this Provost,

Alta., oilfi eld service

and supply business and

its owner Mike Den-

nehy, who has a shop in

Lloydminster too.

“We are a relatively

new company. We have

only been in existence

for three years so we

don’t know as much

about the market as ev-

erybody else who has

been around from 10 to

20 years,” said Dennehy.

“Provost has always

benefi ted from never

really having a huge

downturn. It’s been

slower the last couple of

years, but there’s been

enough market that it’s

kept most of the busi-

nesses going.

“It’s been a struggle

for a lot of people the

last couple of years, but

everyone is still mov-

ing forward and we are

growing,” he said.

MTM now has sev-

en employees and off ers

online shopping for a

variety of products from

automatic transmission

fl uid and wrench sets, to

bio med wash kits.

“Th e only reason we

are still here is that we

are innovative and we

are trying to diversify

into diff erent sectors,

and not just sticking

with one product or line

in mind,” said Dennehy.

To that end, MTM

provides mobile and

shop mechanical ser-

vices, all types of pipe

valves and fi ttings, and

oil, lubricant and chem-

ical supplies.

Th ey also operate a

picker truck with a 30-

ft. trailer for hot shot

deliveries and take on

maintenance work dur-

ing annual Energy Re-

sources Conservation

Board shut ins and sus-

pended well inspections

in Alberta.

“We rebuild a lot of

used equipment, and we

will refurbish it for the

oil companies as well.

We are diversifying as

much as we can,” added

Dennehy.

“We also sell oil fi l-

ters, service rig equip-

ment – everything – if

somebody needs some-

thing, we are going to

do our best to fi nd it

for them – from soup to

nuts.”

MTM is a distribu-

tor of the BOS storage

sheds imported from

Germany for use in

multiple sectors includ-

ing the consumer mar-

ket.

“Th rough the re-

search we’ve done on

the buildings, they are

a high quality,” said

Dennehy, who invited

booth visitors inside for

a peek.

“I think they are a

really good fi t and a di-

verse market, not only

for the oil and gas in-

dustry, but also into the

commercial and indus-

trial and mining sectors,

and even for storage

components.”

Th e sheds range in

size from two metres by

two metres, to two me-

tres by six metres with

available connector kits

to assemble and link

other buildings together

with quick lock fasten-

ers.

“We are utilizing it

here to stay out of the

weather,” laughed Den-

nehy, who came to the

oil show to gain expo-

sure for this company.

“We want to let ev-

erybody we are here and

we can talk about what

we can do, and what

services and products

we provide.

“You get to meet a

lot of people who you

don’t get to meet that

often to keep those re-

lationships alive.”

Dennehy also used

the oil show to announce

MTM has purchased

the rights to U-Save

Car & Truck Rental in

Alberta. In September

he noted plans to open

a kiosk at the Lloyd-

minster airport with a

tentative date of Oct.19,

and also operate out of

the Lloydminster shop.

“Th ere is a need for

a car rental in the oil in-

dustry,” he said. “Th ere

are a lot of trucks be-

ing rented out there

and people need diff er-

ent vehicles at diff erent

times. I hope to be able

to provide that service.

“It’s another add-

on to my business. Also,

due to the last two years

of tough economic

times in the oil and a

gas industry in Alberta,

it’s nice to diversify and

fi nd other markets. Th is

has come along and

hopefully, it will work

out for us.”

“It will be rentals

of cars, trucks and vans

and you name it – trail-

ers. We also have the

rights to resell vehicles

so we are actually going

to get into the leasing of

vehicles as well. It will

be long term rentals and

leasing.”

A16 PIPELINE NEWS November 2010

MTM raised in a downturn thrives by diversifying

Mike Dennehy steps out of his MTM Energy Ser-vices booth at the Lloydminster Heavy Oil Show. The booth happens to be one of the BOS (Best of Steel) sheds that he imports from Germany and sells to a diverse market. MTM is also launching a U-Save car and truck rental outlet in Lloydmin-ster.

PIPELINE NEWS November 2010 A17

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A18 PIPELINE NEWS November 2010

Lloydminster – Oil and gas companies in Saskatchewan looking for new

hires are invited by the Gabriel Dumont Institute in Saskatoon to tap into the

Métis labour pool.

A new federally funded Strategic Partnership Initiative aimed at proactive

marketing of GDI labour market programs and services to Métis across the

province ends on March 31, 2011.

One of those programs is a GDI Oilfi eld Orientation course for Métis work-

ers to be held at the Lloydminster Native Friendship Centre Nov. 22-26.

“What we are going to do is run a one week course, and for those Métis

people who fi t into certain jobs, we are going to place them in those jobs,” said

Jason Johnston, program co-ordinator.

Johnston estimates there are about 45,000 Métis in the province, many of

whom turn to the GDI to upgrade their training, education and job readiness

skills.

Th e Strategic Partnership Initiative also enables the GDI to work toward

bridging the gap between Métis and employers.

"We have a number of companies like Precision Drilling and Enbridge

Pipelines that are willing to work with Métis people in Saskatchewan," said

Johnston.

Page A19

GDI advocates jobs from Métis labour pool

Jason Johnston from the Gabriel Dumont Institute advocates jobs for Mé-tis workers in Saskatchewan. Johnston was at the Native Friendship Cen-tre in Lloydminster in October to encourage more Aboriginal workers to sign up for an oil eld orientation class that will be held Nov. 22-26.

PIPELINE NEWS November 2010 A19

Page A18“Employers tell us

students need to be work

ready. We tend to think

of that as the 3Rs – re-

liable, responsible and

respectful. Respectful

means respect for your-

self and the employer

you are working for.

“You need to un-

derstand the type of in-

dustry you are in – the

12 to 16 hour days and

for seven to 10 days at

a time. Th ose (3Rs) are

learned through experi-

ence on the job.”

Th e Strategic Part-

nership Imitative aims

to enhance and build on

existing GDI partner-

ships and programs in-

cluding a wage subsidy

that can makes hiring

a new Métis apprentice

aff ordable.

“We have a wage

subsidy program where

an employer can reach

out to us,” said John-

ston. “We pay a portion

of the salary and that

person gets placed.

‘It’s like a mini work

experience. It’s had a

lot of success with our

Crowns (corporations)

in Saskatchewan and

working with unions.”

Th e oilfi eld orien-

tation course will help

students get their base

safety tickets such as

H2S Alive and fi rst aid

through the Aborigi-

nal Skills and Training

Strategic Investment

Fund as part of Canada’s

Economic Action Plan.

“Th e students will

be working in Lloyd-

minster and within a

100-kilometre radius of

Lloydminster including

the Alberta side,” said

Johnston.

“With the industry

connections we have,

there is a need for up-

wards of 500 people

in the next four to six

months because of the

weather – the water.

“Companies can’t

get out with their service

rigs to service wells so a

lot of the companies are

going to be ramping up

here. Once the farmers

get done, they are going

to want to get back out

in the oilfi eld and pro-

vide those services.”

Johnston says the

oilfi eld labour market is

strong right now, from

Lloydminster all the

way south to Swift Cur-

rent.

“If you drew a line,

there is a lot of activity

from the service rig sec-

tor and all those services

that go with it – 3A li-

cences, hauling water –

hauling oil is still a big

need,” he said.

“Estevan is still an

untapped resource, but

fi nding a residence is

a problem. You need a

camper trailer. If you

can go down there, and

fi nd a friendly farmer

and camp out in his

yard, you are going to be

working tomorrow. It’s

very busy there.”

Despite all the

training and educa-

tion programs available

through GDI resources

and partnerships, John-

ston says there are no

guarantees of employ-

ment for Métis workers.

“From our offi ce, we

reach out to employers

and steer them in the

right direction so they

can consider Aborigi-

nal people to break any

myths and misconcep-

tions,” he said.

“For a company to

be Métis friendly or

Aboriginal friendly,

they need to have a

policy that outlines that

and says ‘we are Ab-

original friendly’ and

says ‘we need you to be

reliable, and responsible

and be respectful in the

workplace, and you can

have a fi ne career in our

company.’

“We will be mak-

ing public a specific

training to making

the workplace Métis

friendly and/or Ab-

original awareness

training for trades and

construction companies

and oil companies.”

Th e GDI is the only

Métis specifi c train-

ing institute of its kind

in Canada, combining

university, technical

skills, basic education,

publishing and social

justice programming.

GDI will mark its

30th year of operation

during an Anniversary

Celebration Culture

Conference Nov 18-19

in Saskatoon.

3R's are learned through experience on the job

A20 PIPELINE NEWS November 2010

Lloydminster – Welltec Canada Inc. has developed new intervention tools for

cleaning debris from oil and gas wells that can be deployed using conventional

electric wireline.

Th ose new tools called the Well Cleaner and the Well Miller were the sub-

ject of a presentation by Welltec’s Canadian sales manager Jeremy Ray at the

Lloydminster Heavy Oil Technical Symposium Sept. 15-16.

“Over the last several years, some unique intervention techniques have been

developed to remove debris using electric wireline,” said Ray in his opening re-

marks.

“Th e overall objective is to remove the debris to get the well under produc-

tion sooner and do it cost eff ectively.

“Not only is what you are going to see – the use of some cool tools – but they

are here to save you money and help you get your well going sooner.

“I will be speaking about reducing your surface access, reducing your inter-

vention personnel on site, increasing your production and reducing you capital

expenditures. Th is technology is adaptable to all well construction designs.”

Welltec’s technology can be applied in scaled tubing environments where

intervention snubbing is extremely costly, and surface sensitive areas where it’s

tough to get equipment on location.

Another application of the technology is in vertical, low pressure wells where

sand plugs off the perforations.

“Often with conventional methods using a service truck and coiled tubing

you are pushing the sand back into the perfs,” said Ray.

A conventional wireline truck with a single or multi conductor line and a

picker with suffi cient rig up height is all the equipment needed to deploy the

tools that can be handled by just four people on site.

Page A21

Jeremy Ray delivered a presentation at the Lloydminster Heavy Oil Technical Symposium about new tools developed by Welltec to re-move debris in wellbore.

Welltec’s new tools clean and mill on wireline

PIPELINE NEWS November 2010 A21

Page A20“You just need a wireline truck,” Ray told Pipeline News. “Th ere are probably

600 cased hole wireline trucks in Alberta, so using technology that’s available

and is low cost is the mandate for what we are doing”

A Well Tractor also developed by Welltec enables intervention tools to reach

the end of a horizontal or highly deviated well.

Th e Well Cleaner tool says Rays selectively cleans areas of the wellbore de-

ployed on electric wirelines and operates in dry and liquid environments.

He said the way it works is like a grain auger with the length of the tools

dependent on how much sand you are working with. Early tests showed it can

pick up 60 to 80 cubic metres of sand per run.

Welltec was challenged a few years ago to use it in a liquid environment in

a horizontal SAGD well in the Lloydminster area that had sand issues, high

temperature and variable viscosities among other extreme conditions.

“Over six days, we pulled out over 300 litres of sand with 22 runs in the

hole,” said Ray. “Th e tools were conveyed on a Well Tractor horizontally. We

cleaned down to 638 metres but hit asphaltenes and couldn’t go deeper.”

Ray says those early trials led the company to develop the second generation

Well Cleaner that he calls a power suction tool.

“We basically put a jet pump above the tool and we create an incredible

drawdown pressures at the bit. Debris stays contained within the tool.

“Th e best way to describe it is when you turn it on it creates a suction force at

the bottom of the tool and pulls debris into the bailer chambers which are then

retrieved on this wire.

Ray’s next subject was the Well Miller tool designed to remove downhole

obstructions such as isolation valves or barriers by milling or drilling on wire-

line.

“It allows you to mill scale while the well is producing,” said Ray, who notes a

tractor or a stroker tool or some sort of anchoring tool is used to hold the milling

tool in place from reactive torque.

“It uses various bits including a reverse circulation bit for cleaning and mill-

ing at the same time. Now we able to go in and mill cement plugs, bridge plugs

and retrieve the debris at surface.

Ray says with the reverse milling technology Welltec could have removed

the asphaltenes from that Lloydminster well he spoke about it earlier.

“It will bring back any obstructions in the well such as sand debris produc-

tion debris or debris from wellhead maintenance to pipe recovery or fi shing

operations,” he said.

Welltec has its international head offi ce in Copenhagen, Denmark, where it

developed heavy oil technology for North Sea oil operation.

Its Western Canada head offi ce is Calgary with branch locations in Estevan,

Bonnyville and Grande Prairie.

“Th e growth has been phenomenal,” said Ray. “In the last seven years from

we have gone from 3 or 4 fi eld employees to well over 80.”

“We are getting more into the StackFrac and gas market for milling obstruc-

tions from the well so companies can increase their production.

“At the same time, for the Lloyd type heavy oil SAGD area, we are work-

ing on technology to create more suction to pull more debris from the well in a

shorter amount of time.”

Th e company is also working on a tool for lower viscosity oil wells.

Getting the well under production

A22 PIPELINE NEWS November 2010

PIPELINE NEWS November 2010 A23

Lloydminster – Don

Cairns, the quarterback

of the Platinum Energy

Services Corp. booth at

Lloydminster Heavy Oil

Show, was well prepared

for a blitz of media ques-

tions.

Th e fi rst question,

regarding what Plati-

num does in Lloydmin-

ster, was the easiest to

fi eld.

“In Lloydminster,

we are one of the biggest

pump jack maintenance

shops and suppliers in

Canada,” said Cairns, a

petroleum engineer at

the head offi ce in Cal-

gary.

“We have 23 trucks

in Lloyd that go from

the maintenance side

and installation. We also

have service shops in

Kindersley, Provost and

Medicine Hat for pump

jacks.

“We carry every-

thing from Americans

to Luftkins. We just

brought in a new unit

called the Oil Boss that

has been very well re-

ceived so far.

“It’s only been in the

Canadian market for the

last six months. We’ve

has quite a bit of success

with that as well.”

Platinum is celebrat-

ing its 25th anniversary

this year, and Cairns was

eager to load up his me-

dia visitor with the latest

product literature while

commenting the show

has been good.

“Th ere are a lot of

people coming through.

It’s been very well re-

ceived,” he said.

Platinum markets

itself corporately as a

one-stop shop for pro-

duction and process

equipment with the

Platinum Compressor

Services Corp. division.

Th e company sold

its Control Technologies

Corp. division just days

after the oil show held

Sept. 15-16.

Platinum manufac-

tures and supplies a full

range of oil and gas pro-

duction products includ-

ing separators, tanks,

dehydrators, gas sweet-

eners, compressors, and

treaters and knockouts.

“We do everything

on the process side. Once

the well is drilled – any-

thing to produce it, we

can do it,” said Cairns.

Platinum operates

two fabricating facilities

in Calgary where they

make products such as

separators and treaters.

Th ey have a tank manu-

facturing plant in Red-

cliff near Medicine Hat

Alberta.

Platinum Compres-

sion Services Corp. sup-

plies new and used com-

pressor packages for all

applications and a full

range of screw and re-

ciprocating compression

packages.

Th e Lloydminster

pump jack shop pro-

vides pump jack main-

tenance services such as

gear box reconditioning

and it stocks parts for all

conventional pumping

units.

Asked if they are

busy in the Lloydmin-

ster area, Cairns said, “I

was just talking with one

gentleman here, and say-

ing this was probably the

busiest summer that I’ve

had in 10 years with the

oil price staying strong.

“Husky is one

of our bigger clients

around here and Talis-

man around Chauvin.

Th ere are lots of com-

panies around here that

use Platinum. We have

maintenance groups that

go out and do pump jack

maintenance.”

25 years as “the oil eld equipment people”Don Cairns, a petroleum engineer for Platinum Energy Services Corp., elded a lot of questions about his company’s oil and gas process and

production equipment during the Lloydminster Heavy Oil Show.

A24 PIPELINE NEWS November 2010

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of the Muscles.

Lloydminster – IntelliView Technologies Inc. has

raised the bar on security with its smart video sur-

veillance solutions for oil and gas companies to keep

an eye on their assets and who is onsite in real time

24/7.

Th e Calgary-based technology company com-

bines hardware and software on location to record and

analyze video images from installed cameras.

Each camera can select and apply up to 10 dif-

ferent pre-set rules or detection parameters such as

identifying if an object is taken away from a defi ned

area in camera view.

Once a rule has been broken, an automated alarm

is sent to the operator using cellular, radio, and satel-

lite or SCADA communications.

“Our software is our secret sauce,” said Ray Wil-

derman, a business development rep at the Lloydmin-

ster Heavy Oil Show Sept. 15-16.

“It’s able to take information that’s given, make

decisions, and pass those decisions on. It’s making in-

telligent decisions based on what it’s able to see in real

time.”

When an alarm has been triggered, operators can

also connect to onsite cameras through web access, a

BlackBerry application or monitoring stations.

Wilderman says one city bylaw unit in Calgary

is using an IntelliView system to detect and identify

graffi ti artists in the act and report vandalism in real

time so the culprit can be apprehended.

“It’s unique,” said Wilderman. “It’s the only one of

its kind in the world. It’s patented technology. Th ere is

nothing to compare it to in terms of its capabilities.

“You can use it to detect leaks or to detect if a

man is down. You can detect when staff are coming in

and off remote sites.

“It can also help prevent injury by detecting haz-

ardous threats such as sulphur fi res that can’t be seen

by the human eye.”

A standard analytics package comes with up to 10

rules that can be applied to each camera to generate

real time event notifi cations of what’s being detected.

Th e brain of the system is digital video technol-

ogy. It has plug-and-play functionality that allows

a multitude of technology to connect to it such as a

weather station, cameras, access systems and remote

control systems and a variety of sensors.

“We have also incorporated using fuel cells pow-

ered by ethanol to allow these systems to be powered

remotely for an extended period of time,” said Wil-

derman.

It uses the Global System for Mobile Communi-

cations to communicate and SCADA common to the

oil and gas industry.

“It’s a web-based system,” said Wilderman. “Th e

client logs into their device and is able to manage it.

Th ey can manage several hundred of these devices si-

multaneously. You can attach up to 16 cameras.”

Each camera can have its own program rules,

so from what it’s seeing, it is able to make decisions

based on those rules.

“Th e device is able to ‘make decisions’ and then

send those decisions on the applicable party through

e-mail, video clip or a static one shot photograph,”

added Wilderman.

Th e system can detect if an object is left behind

or if someone is loitering within the camera view for a

predetermined time.

It can also be used to detect faces, count people,

detect licence plate numbers, classify sounds and de-

tect oil spills in their early stages among other cus-

tomized capabilities.

IntelliView can detect trouble as it happens

IntelliView surveillance systems can keep an eye on oil and gas assets and personnel for bet-ter safety 24/7. Business development rep Ray Wilderman explained the software brain of the system at the Lloydminster Heavy Oil Show.

PIPELINE NEWS November 2010 A25

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• OILFIELD• HIGHWAY• FARM• CONSTRUCTION

Lloydminster – Com-

munity service is not a

competition, but Sand-

piper Truck Services

Ltd. edged out nomi-

nee Grit Industries for

a Community Involve-

ment Award at the 2010

Business Week Awards

Gala of the Lloydmin-

ster Chamber of Com-

merce.

Sandpiper was

founded in 1995 by Kim

and Lorne Olson as an

oilfi eld truck service

company with a com-

mitment to serve the

community.

Th e introduction of

Sandpiper at the gala

on Oct. 13 began by at-

tributing the company’s

successful leadership,

fi nancial practices and

a strong work ethic to

“great people and a vi-

brant, healthy commu-

nity.”

Th e rest of the intro-

ductory text about Sand-

piper projected onto a

screen at the Stockade

Convention Centre read,

“Sandpiper’s owners

Lorne and Kim Olson

have always attributed

their success to these

critical elements.

“It is not only a

privilege but an obliga-

tion for Sandpiper Truck

Services to do its part in

making Lloydminster a

great place to live, work

and play and do busi-

ness.”

Th at philosophy has

helped Sandpiper expand

its fl eet to more than 50

vehicles including semi

vacs, tandem vacs, pres-

sure trucks, coiled tub-

ing units, steam trucks,

fl ushbys, transport vehi-

cles and slop trailers for

the heavy oil market.

Choosing Sandpiper

for the award made sense

based on its lengthy list

of donations and em-

ployee volunteerism to

arts and culture, recre-

ation and amateur sport

organizations in Lloyd-

minster.

Th e list includes

support for the Lloyd-

minster Region Health

Foundation, the MS

Society, the SPCA, the

Lloydminster Rescue

Squad, and the Lloyd-

minster Heavy Oil Show

and Oilfi eld Technical

Society executive com-

mittees.

Th e Olsons were

unable to accept their

award due to personal

commitments, but veter-

an fi eld supervisor Lind-

say Hancheryk spoke on

their behalf with his wife

Gina at his side.

“We would like to

thank everyone involved

for contributing this

award, from the nomi-

nators to the selection

committee as well as

ATCO Electric for the

award sponsorship,” said

Hancheryk.

“We feel honoured

to have been nominated

alongside Grit Indus-

tries whose community

contributions are recog-

nized and appreciated.

“We believe that we

have a social responsi-

bility to contribute to

the continuance and en-

hancement of our com-

munity by supporting

those very organizations

that make Lloyd such a

great place to live and do

business.

“Quality health care,

good educational ser-

vices and a wide array

of recreation and cul-

tural opportunities make

Lloyd an attractive com-

munity in which to live,

play, and raise our fami-

lies,” Hancheryk said.

Sandpiper recognized for community involvement

Lindsay Hancheryk, left, a eld supervisor for Sandpiper Truck Ser-vice, with his wife Gina at his side, accepts the Community Involve-ment Award from ATCO Electric rep Dave Evans at this year’s Lloy-dminster Business Week Awards Gala.

A University of Saskatchewan scientist was one of six from across North

America will lead a provincial review of water monitoring data collected from

Alberta's oilsands region.

John Giesy is currently part of the Department of Veterinary Biomedical

Sciences and Toxicology Centre at the University of Saskatchewan and was re-

cently elected to the Royal Society of Canada. He is regarded as one of the

world's eminent ecotoxicologists (study of toxic eff ects, caused by natural or syn-

thetic pollutants, to entire ecosystems).

Th e focus of the committee will be to examine monitoring data and method-

ology of both government and academic research fi ndings. Th ey will also inves-

tigate whether data is consistent with historical values in the region and explain

the relevance of any diff erences and gaps that may exist. Th e process is expected

to be completed by February 2011.

Th e scientists bring with them expertise in a variety of areas: metal trans-

portation in fresh water, airborne pollution, eff ects of toxic chemicals on aquatic

organisms, environmental chemistry, ecotoxicology and trace metal loading in

the environment. Individuals were selected based on recommendations by both

Alberta Environment scientists and Dr. David Schindler, a water expert at the

University of Alberta.

U of S scientist named to Alberta panel

A26 PIPELINE NEWS November 2010

PIPELINE NEWS November 2010 A27

Lloydminster – Westcomm Pump &

Equipment Ltd. used a cutaway of a Roto

brand pump as a conversation icebreaker at

its booth during the Lloydminster Heavy

Oil Show in September.

Th ere was a lot to talk about as Kyle

Larson, a technical sales rep, explained West-

comm had just signed sales partnerships with

LEWA Pumps + Systems and Roto Pumps

Ltd. on Sept. 8.

“We now actually have a complete prod-

uct lineup for pumping equipment across

the board,” said Larson, who noted only the

model of the Roto pump was available in the

time for the show held Sept. 15-16.

“If you have an application that you have

to move fl uids through pipe, give us a call

because we have a product that will fi t it.”

Th e available LEWA pumps to be distributed by Westcomm are process dia-

phragm pumps for high pressure applications up to 17,500 psi for process indus-

tries.

Westcomm is a Calgary-based company that provides reliable pump and

compressor packages to the oil and gas, chemical processing, pulp and paper, and

municipal wastewater industries.

“Th e Roto pump is new to the North American market,” said Larson. “Th ey

are a very robust progressive cavity pump.

“At the moment, Roto makes a PC pump for surface process facilities only.

Th ey don’t off er a PC pump for downhole applications.

“Roto has been well received in Australia, Europe and Asia. We are excited to

be on the ground fl oor off ering this new product to the oil and gas industry.”

Th e claim to fame for Roto is its drive design that uses a double pin Cardan

universal joint known to be quite reliable and quite robust, enabling Westcomm to

off er a 24-month warranty.

Larson says what sets Roto apart from

competitors is the reliability of the drive sys-

tem and the maintenance friendly aspects of

the pump.

“You can access and maintain the stuff -

ing box, whether you have packing or me-

chanical seals,” he said.

“You can access it from the rotor and

stator end of the pump. Th at means you don’t

have to disturb the alignment of the power

into the motor.”

Larson took the opportunity to note

Westcomm distributes Goulds Pumps for

any centrifugal applications including fl uids

such as glycol and light hydrocarbons.

Westcomm also distributes Gorman-

Rupp rotary gear and self-priming pumps

for hydrocarbon applications, and is known for its ITT pump control and moni-

toring systems.

PumpSmart is the control system designed to prevent failures and improve

pump effi ciency.

“It is a dedicated system for pieces of rotating equipment that off ers protec-

tion features for the equipment it is controlling,” explained Larson.

“It’s a variable frequency drive with pump protection features added in.”

Th e ProSmart condition monitoring system provides 24/7 real time informa-

tion about the health of the equipment that’s running.

“It will monitor information such as vibration and temperature and upload

that by satellite to web-based servers that a maintenance person can access,” said

Larson.

“It provides real-time information to the operators of the equipment so they

can respond to problems. Th e two systems are complementary.”

Westcomm adds newpump makers to its lineup

Kyle Larson used a cutaway model of a Roto pump to prime con-versations at the Westcomm booth during the Lloydminster Oil Show

Onion Lake – On-

ion Lake Cree Nation

is studying an idea to

power its community

with energy from its

own garbage.

Onion Lake Busi-

ness Development Cor-

poration is working with

a California company

called Clean Earth So-

lutions to cost the con-

struction of a biomass

generator that would

covert municipal solid

waste to electricity.

“Th is is a municipal

solid waste (MSW) proj-

ect,” said BDC director

Jeff Ross. “We are look-

ing at developing a pilot

project at Onion Lake

with fi ve to 25 tonnes a

day of solid waste.

“What we would do

is take the MSW – we

don’t burn or incinerate

it – we actually we put it

through a steam agita-

tion process, and what

comes out the end is a

biomass.

“We can convert

that biomass to energy

to electrical energy and

an ethanol fuel.

“What we would do

is power the homes at

Onion Lake. Th e amount

of energy would depend

on the amount of MSW

we produce a day. With

25 tonnes a day we could

probably create energy

for the whole commu-

nity,” Ross said.

Currently, Onion

Lake’s 3,600 residents

produce about six tonnes

of household waste each,

day but more waste feed-

stock could be brought

in from surrounding ar-

eas.

Ross says the band

has met four or fi ve times

with Clean Earth and

has developed a business

plan for the project.

“We are in the pro-

cess of reviewing our

business plan and decide

from there where we

want to go,” said Ross.

A biomass generator

would follow several new

business and investment

opportunities for the

band, thanks to revenues

from oil and gas produc-

tion on reserve land.

Th e BDC oper-

ates band-owned utili-

ties and businesses such

Onion Lake Gas, Onion

Lake Energy and Askiy

Apoy Hauling.

“From the BDC’s

perspective, we would

like to take advantage

of the oil and gas play

at Onion Lake, but we

would also like to diver-

sify out of Onion Lake,”

said Ross.

“We want to create

the right business enti-

ties to create wealth for

the First Nation.”

Th e BDC is think-

ing out loud about the

possibility of building an

MRI clinic on a 65-acre

parcel of land the band

owns west of Lloydmin-

ster and east of the new

Th orpe Recovery Centre

on Highway 16.

“Th at’s one of the

things we are looking

at and reviewing right

now,” said Ross. “We

are also exploring other

business ventures for

that area too.

“We have a lot on

the go. Our goal is to be

a $200 million business

development corpora-

tion in the next couple

of years.”

A28 PIPELINE NEWS November 2010

Onion Lake mulling new investment ideas

Onion Lake Cree Nation has its own gas utility called Onion Lake Gas that is installing service to a new rental housing subdivision.

Photo by Geoff Lee

PIPELINE NEWS November 2010 A29

Lloydminster – Mathew Davis, an account man-

ager for Polycore Tubular Linings Corp., came to

the Lloydminster Heavy Oil show in September

prepared to pitch the benefi ts of his company’s ther-

moplastic liners to all comers.

Davis accomplished that goal for the Pipeline News with the aid of product samples to get his

points across in a quick three-minute interview.

“Our liner is basically a thermal plastic liner

that is inserted inside of production tubing,” said

Davis. “It’s meant to mitigate any sort of rod-on-

tubing wear or any type of corrosion issues you

might have.

“Our main applications are injection and dis-

posal wells as well as any sort of rod pumping ap-

plications, whether that’s a progressive cavity pump,

or a beam pump.

“We have been doing quite a bit of work with

some of the producers up here for some heavy oil

applications.

“We will be working in one of our fi rst SADG

wells in the Lloydminster area in coming weeks.”

Polycore’s thermoplastic liners are extremely

abrasion-resistant and chemically inert, eliminat-

ing concerns associated with wireline damage, coil

tubing mechanical damage, acid treatments, and

chemical treatments.

Polycore has its head offi ce in Calgary with a

manufacturing plant in Bow Island east of Medicine

Hat to easily service the Western Canadian oilfi eld.

“Our liners are made from various thermal plas-

tics,” said Davis.

“Our fi rst and oldest product line is made from

high density polyethylene. We add a proprietary

blend that makes it what it is today.”

Polycore also makes an Enercore polyolefi n lin-

er and an Ultracore polyphenylene sulphide liner for

higher temperature applications.

“Th e main purpose of our product is to main-

tain the life of the tube,” said Davis. “

“If we can maintain the life of the tube and keep

that asset rolling for any company, it saves them a

ton of money.

“It reduces their workover costs because it pro-

longs the life of the tubing and it keeps their pro-

duction going.”

Polycore can install the liner in a customer’s

tubing or off er a package price with the coupling,

liner and tubing ready to go.

“Our product will prolong the life of the well

and in essence have a very short return on invest-

ment for the customer,” said Davis.

“For what they invest – either the liner or the

liner and tubing as a package price, they are able

to pay that off in a very short period of time and

receive the cost benefi ts.”

Polycore is a sister company of Western Falcon

Inc., a U.S. company that developed tubular lining

technology with thermoplastic in the 1980s.

Polycore has product stocking locations

throughout the west from Virden, Man. to Fort. St.

John, B.C.

Davis says Polycore liners can also be used in

gas wells depending on the conditions and presence

of sour gas.

“We assess every single well. Every well we put

our thermal plastic tubing in, we make sure that

we talk with the customer and understand the well

depth, the well pressure, the temperatures, the con-

centrations of H2S and CO

2,” he said.

“We do a very thorough examination of every

application we run it in.”

Mathew Davis made umpteen sales pitches about the features and bene ts of thermoplastic tubular lining during the Lloydminster Heavy Oil Show on behalf of his Calgary-based company Polycore Tubular Linings Corp.

Polycore’s tubular liners t for SAGD wells

A30 PIPELINE NEWS November 2010

Lloydminster – Steven Winkler, president of

Quantum Downhole Systems Inc., will likely to

continue to speak positively about his experience at

the Lloydminster Heavy Oil Show Sept. 15-16.

“Th is is one the best shows, if not the best,” he

said at time. “I have been involved in the past and I

hope to keep being involved.”

Winkler was invited to make a presentation

about his new JetVak well bore cleanout and produc-

tion testing technology for horizontal wells at the

Lloydminster Heavy Oil Technical Symposium on

Sept. 15, and the talk went over well.

“I had quite a few people come over and ask some

questions and shake a few hands,” he remarked.

“Some people told me they would think of wells

a little bit diff erently now, and maybe even call and

ask us to do some work for them.”

Winkler also brought along a specialized coiled

tubing unit from Technicoil Corp. in Red Deer as

an outdoor exhibit, and stayed in the area for at least

two weeks of work for heavy oil customers.

Winkler says it’s not hard to prove the technol-

ogy works to customers even though JetVak is a new

technology solution on the market.

“Th rough our presentations and the information

we’ve got from the other work we’ve done, the proof

is there,” he said. “Th ey do believe that it works. Th ey

are quite receptive especially in this area.”

He described the reaction to it in Lloydminster

as “exceptional” and went on to say, “Th is technology

is needed in this area.”

What Quantum has done is to combine a spe-

cially engineered jet pump with newly designed

multiple conduit coiled tubing.

Th e new tubing is called the Flatpak, and it was

developed by CJS Coiled Tubing Supply Ltd. in

Lloydminster and Source Rock Energy Partners in

Calgary.

“Th e pump on the dual coil – part of it jets and

fl uidizes the sand ahead of it, and part of the pump

vacuums out the mixture all in one shot,” explained

Winkler.

Th e JetVak allows the operator to remove both

solids and/or fl uids from a well bore in an under-

balanced fashion.

“It’s very applicable to heavy oil. We are going to

be introducing some chemicals and some solvents to

emulsify the fl uids downhole so the heavy oil comes

out of the well easier and through the coil more ef-

fi ciently,” said Winkler.

Th e JetVak system is also applicable for post frac

cleanouts and produced sand cleanouts among other

applications in horizontal wells.

Quantum worked with Technicoil to make some

minor modifi cations to the coiled tubing unit used

to apply the JetVak tool into deeper wells.

“Up until a month ago we have been working

in wells up to 1,000 metres, but this rig is allowing

us to go over 2,000 metres which covers the major-

ity of wells nowadays, especially with the horizontal

types,” said Winkler.

“We’ve been doing work primarily in the

Kindersley area. Th e rig has not even been on the

road for a month yet.

“We have been in Kindersley and Th ree Hills,

and we have two weeks of work in Lloydminster

lined up, and maybe even more. Soon we are going

to Fort Mac.”

Quantum raises the bar in well bore clean-outs department

Steven Winkler from Quantum Downhole Sys-tems talks with a visitor at the Lloydminster Heavy Oil Show. They are standing beside a Technicoil Corp. coiled tubing unit.

PIPELINE NEWS November 2010 A31

A32 PIPELINE NEWS November 2010

Story and photos by Geoff LeeOnion Lake – Oil and gas explora-

tion and development at Onion Lake

is helping to put the Cree community

on the path of economic prosperity, led

by its own business development cor-

poration (BDC).

Black Pearl Resources, Canadian

Natural Resources and Nuvista En-

ergy Ltd operate more than 100 leases

on reserve land under the administra-

tion of Onion Lake Energy.

Onion Lake Energy is one of sev-

eral BDC businesses wholly owned by

Onion Lake Cree Nation that report

to the elected chief and band council

who act as corporate board members.

“We don’t negotiate leases but we

try to keep up to date on what’s hap-

pening out there,” said BDC director

Jeff Ross who has been on the job for

fi ve months.

“By doing that, we can identify

what parts of the oil and industry we

can take advantage of.

“Eventually, I would like to see the

BDC become a $200 million business

development corporation so we can

start to fl ow some of our profi ts back

to Onion Lake.

“I guess the catalyst for opportu-

nity is the oil and gas. It gives us the

opportunity here at Onion Lake to

look at other ventures,” said Ross.

“One of our success stories has

been Askiy Apoy Hauling (see Onion

Lake story on page A8).

“When the drilling program came

into play, Onion Lake First Nation

knew that the fl uid and the oil had to

be hauled to various batteries and the

Husky Upgrader.

“We identifi ed a need there – a

service which was trailers to deliver

the fl uid. We created Askiy Apoy that

now delivers the majority of oil from

the drilling sites to the upgrader.”

“We are looking at vacuum trucks,

pressure trucks and having mechanics

that can go into the fi eld and service

rigs.

“What we do is fi nd areas in the

oil and gas program where we can start

secondary businesses,” said Ross. “Th at

could be inside Onion Lake or outside

Onion Lake.”

Th e BDC has a number of band-

owned businesses under its umbrella

such as Meetah Building Supplies,

Onion Lake Enterprises, Beretta Pipe-

line Construction and Makaoo Mall

Development.

“We are kind of diversifi ed. We

would like to be a bit more diversi-

fi ed in case one industry takes a bit of

tumble. We are using proceeds from

oil and gas to fund these entities,” said

Ross.

“We get a certain percentage from

oil and gas and we use that as a lever-

aging point. We use a combination of

either our own equity or we look at

various fi nancial institutions that we

can use a mixture of our own equity

and borrow.”

In the case of Askiy Apoy, the

band purchased trailers and provided

equity loans to band members who

went to the Saskatchewan Indian Eq-

uity Foundation to fully fi nance new

trucks to haul fl uid.

Th e plan calls for novice oilfi eld

drivers to ride along with experienced

drivers until they are skilled enough to

become their own operators.

“In the case of the vac and pres-

sure trucks, we are looking at a course

at Lakeland College for vac and pres-

sure truck operators,” said Ross. “We

will probably follow the same model as

Askiy Apoy because it’s already proven

successful.

“We have brought in a couple of

people who have worked in the oil

trucking business for a number of years.

We have them on three year contracts

to set up Askiy Apoy until it’s running

smoothly.”

Th e band also met recently with

members from the Frog Lake Cree

Nation that has members who want to

drive for Askiy Apoy.

“We said we would be open to

working on some sort of arrangement

with them,” said Ross. “We own the

trailers and the individual operators

own their own trucks.

“It’s broken into a revenue split, so

we are looking at something like that

for Frog Lake.”

Th e key to Onion Lake’s business

aspirations from oil and gas develop-

ment on the reserves lies in securing

work commitments for band members

from oil and gas companies operating

on reserve land.

“We have met a couple of times

with a couple of the oil companies,”

said Ross. “What we are trying to get

from them is a commitment that there

is work for us.

“If I have a commitment for work,

it makes my job easier to secure those

funds. In the last couple of weeks, Black

Pearl and CNRL have agreed to that.

Th ey gave us commitment letters.

“Th e commitment letter is for ev-

erything right down to the mechan-

ics in the fi eld to service rigs and vac

trucks and an expansion of Askiy.

“We are looking at putting up a

building with about 15 bays for main-

tenance repairs and storage, with a top

fl oor for offi ce leasing. It’s good prog-

ress for us.”

Ross says the reaction from com-

munity members to new BDC initia-

tives has been positive, but he thinks

more support will be forthcoming once

BDC fulfi ls a commitment to publish

quarterly progress reports.

Page B2

PIPELINE NEWSSaskatchewan’s Petroleum Monthly

B-SectionNovember 2010

106 Souris Ave. N., Estevan, Sask.Ph: (306) 634-4087 • Fax: (306) 634-8817

E-mail: [email protected]

ASAS&& OILFIELD OILFIELD OPERATING LTD.OPERATING LTD.

Shelley Schroeder

• Construction Safety Of cer• Health & Safety Administrator

• External Safety Auditor

Cell: (306) 421-3351

Andy Schroeder

• Battery Operating/Oil eld Consulting • Construction & Pipeline

Supervision • Service Rig Supervision

Cell: (306) 421-9288

Riley ShaverLead Operator

421-8446

Nick MartinOperator

421-1881

Denille ShaverRelief Operator

421-2117

Dylan BeaulieuOperator

471-7020

Oil and gas funds business independence for Onion Lake

Jeff Ross, director of Onion Lake Business Development Corp., says oil and gas activities on the reserve are helping the band to create new busi-ness and employment opportunities.

B2 PIPELINE NEWS November 2010

[email protected]

See our online inventory atwww.brutusbodies.com

Page B1“A lot of it comes down to communication,” said

Ross. “Once we communicate what we are doing and

our success, we will probably get a lot more support

from the community.

“From the BDC’s perspective we would like

to take advantage of the oil and gas play at Onion

Lake, but we would also like to diversify out of On-

ion Lake.”

Ross says band Chief Wally Fox is also thinking

out of the box with long-term visions of Onion Lake

doing its own drilling.

“I also know he wants to get into refi ning here

so we can supply the province of Saskatchewan with

gas,” said Ross.

“He has mentioned there are about 70 First Na-

tion service stations in Saskatchewan. We would like

to be the supplier of fuel for them.”

In the meantime, Onion Lake and the BDC

want to maximize their business and employment

opportunities from continued oil and gas develop-

ment, but not at any cost.

“All the shareholders of companies like Black

Pearl want to make money and so does the company

and so do we,” said Ross.

“We are profi t-driven too, but we are also com-

munity-driven. We want to make our community

better and provide better infrastructure. As long as

those two goals can come together, it will make it a

win-win situation.

“Onion Lake is in a position to take advantage

of the oil and gas resources, and that could go to im-

proving the roads or houses for members and fund-

ing post secondary education costs.

“We are looking at building 100-plus homes

eventually, and about 60 in 2010.

“What we do is look at leveraging that royalty

and oil and gas revenues to borrow with a repayment

through oil and gas revenues.

“We have paved some roads and I know we are

looking at a new day care and paving more roads,”

Ross said.

Out of the box thinking

The Onion Lake Business Development Corp. operates several band-owned businesses in-cluding the new Makaoo Gas Bar next to the Makaoo Mall.

Nuvista Energy has approximately 13 wells at Onion Lake Cree Nation.

Oil eld traf c is steady north of the community of Onion Lake within the band’s reserve. The Onion Lake Business Development Corp. has launched its own uid hauling company called Askiy Apoy Hauling. A vac and pressure truck business is in the works.

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By Brian Zinchuk

Waskada, Man. – A sandy layer of siltstone called

the Lower Amaranth, about 900 metres deep, is driv-

ing a surge in drilling around Waskada, Man. Not

only is it increasing local production, it is having a

substantial impact on the overall petroleum produc-

tion for Manitoba’s relatively small oil patch.

Keith Lowdon is director of the Manitoba Pe-

troleum Branch, the division of the Department of

Innovation, Energy and Mines that looks after the

Manitoba oil patch. When Pipeline News fi rst talked

to Lowdon in late 2008 and January 2009, he char-

acterized the Waskada fi eld as not having much ac-

tivity at the time. Th ings sure have changed since.

On Oct. 14, Nickle’s Rig Locator (www.riglo-

cator.ca) listed nine rigs in the Waskada area. Penn

West Energy Trust had three rigs drilling. EOG

Resources had two. ARC Resources and Red Beds

Resources (a subsidiary of Tundra Oil and Gas) and

Surge Energy Inc. all had one rig each. One more rig

was listed as down near Waskada.

Just west of Waskada at Coulter, Australian-

based Molopo Energy Canada Ltd had a rig drilling.

A little further to the west, at Pierson, Lyleton Cor-

poration, Molopo and a Saskatchewan numbered

company all had a rig apiece. Another rig was listed

as down at Pierson.

Across the board, of the 21 rigs listed in Mani-

toba on that day, all active rigs were drilling hori-

zontal wells, and all but one were developmental in

nature. Molopo’s Pierson rig was on a stepout well.

Over the past two years, Manitoba typically has

had 10 to 12 rigs in the province at any given time.

For the past several months, that number has been

20 to 22, with typically more than 18 working at

any given time, sometimes as high as 20. It may be

small potatoes compared to Alberta numbers, but for

Manitoba, it’s huge.

Lowdon said the entire Waskada fi eld is 100 per

cent Amaranth. Near Goodlands, you see Mission

Canyon drilling.

Waskada“Waskada is this year, so far, moved into the

No. 1 spot for drilling activity, but not much further

ahead than Sinclair,” Lowdon said.

For 2010, Manitoba has had 468 wells licensed

up to Oct. 4. Th at’s a substantial increase from 292

the year before. By that date, 363 had been drilled.

“I wouldn’t be surprised if we’re over 500,” he

said the referring to the complete year. “For Mani-

toba, that’s huge.”

“You can see the emergence of horizontal drill-

ing,” Lowdon said.

For the same period of time, there were 482,000

metres drilled in 2009, with 672,000 metres drilled

in 2010.

Th e vast majority of Manitoba wells are now

horizontal.

Two years ago, EOG was really developing the

horizontal technology around Waskada, according

to Lowdon. Th ey developed a monobore technol-

ogy for Waskada that works, using cemented casing

in place all the way town. Packers are not utilized

much. It’s all done with individual fracs.

In March 2010, Manitoba saw an all-time high

of 32,000 bpd of production for the entire province.

Page B4

Waskada overtakes Sinclair eld

Manitoba DrillingWell counts up to Oct. 4, 2010

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• Tundra - 109• ARC Resources – 6• Petrobakken – 9

B4 PIPELINE NEWS November 2010

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Manitoba Petroleum Branch director Keith Lowdon, while touring a Preci-sion Drilling rig near Waskada, Man. The rig was working for Penn West on Sept. 28. Lowdon was part of a ministerial tour of Waskada’s re-ignited oil patch. Photo by Brian Zinchuk

Page B3However, the two

leading operators in

Waskada are looking at

production numbers that

will match that.

Penn West is plan-

ning on boosting its six-

inch Waskada to Cromer

pipeline from a capacity

of 7,500 bpd to 15,000

bpd by March, 2011,

and up to 23,000 bpd

within two years. EOG

Resources is planning

for production of 10,000

bpd by the end of the

year once its eight-inch

pipeline, currently under

construction, comes on

stream. Th at pipeline will

have a capacity of 40,000

bpd.

Lowdon noted that

production drops off on

new wells pretty rapidly,

and is cautious about

making projections. “I’d

like to see what happens

in the long term. We

know production is go-

ing up,” he said.

Really busyAs for the Petroleum

Branch during this period

of rapid growth, he said,

“We’re really stretched.

Everyone says, ‘We’re

really busy,’ regardless of

department and industry.

I think we have the stats

to prove it.”

Th e province is

looking at going online

with well licence appli-

cations, and has looked

into joining the Alberta

Petroleum Registry, as

Saskatchewan has done.

However, they are look-

ing for feedback from in-

dustry on that front.

Up until now, gas

production wasn’t really

much of a factor in Man-

itoba. Th e new wells at

Waskada are more gassy

than previous ones, how-

ever.

“Th ere’s really no in-

frastructure to move that

gas to market,” Lowdon

said.

At one point, there

was a gas plant at Waska-

da, but locals point out

it was pulled out in the

1990s. It used to truck

out natural gas liquids

like propane and butane,

and then fl are off what

was left.

Th ere is no seri-

ous gas infrastructure in

the area, save a seven-

kilometre four-inch line

EOG is currently build-

ing between batteries and

a small line in the Pier-

son area that runs into

Saskatchewan.

“We believe there’s

an opportunity to capture

that solution gas,” Low-

don said. “Realistically,

we want them to buy in

and have some alterna-

tives.”

On the groundLowdon has per-

sonal experience in the

Waskada fi eld. “I was in

Waskada in the ’80s,” he

said, where he worked as

a petroleum inspector for

the Petroleum Branch. “I

lived there in 1982.”

Th e big push in

Waskada was in the early

1980s. It had sustained

drilling, “but nothing like

this,” he said.

At the time, there

were four restaurants, and

two hotels, one of which

was trailer-based, by the

arena. “Th e restaurants

were so busy back then.

Th e hotel was fl ooded.”

Omega Hydro-

carbons discovered the

Lower Amaranth forma-

tion, he recalled.

Currently, the Petro-

leum Branch has one in-

spector, Lorne Barsness,

and one admin person,

Twila Jolly, working out

of their Waskada offi ce.

Lowdown hopes to ex-

pand that.

“Th ere’s too much

for one person to do.

Lorne’s a super inspec-

tor. We don’t want him to

wear out.”

Manitoba sees substantial growth in drilling

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By Brian ZinchukWhite Bear First Nation – If everything stays on

track, White Bear First Nation should be seeing sev-

eral wells drilled on its reserve land before the end

of the year. Th ese will be the fi rst wells drilled on the

land in several years, and will mark the First Nation’s

third go-around operating an oil producing com-

pany.

Th e wells will be part of a joint venture with a

startup Calgary-based petroleum producer. At the

time of writing, the name of the partner was not yet

public.

Brent McArthur is the president of Wabimusqua

Oil and Gas Ltd., the name of White Bear’s compa-

ny. It means “White Bear” in Cree. While he may be

president, he is very humble about that fact, and in-

deed, he repeatedly talks about group decision mak-

ing. McArthur has spent the last several years work-

ing on petroleum development for the First Nation.

Annette Lonechild is a council member. Much

of her work of late has been involved in the oil and

gas initiative. She and Francis McArthur are two of

the council members who spend a lot of their time on

the initiative, as does long-time Chief Brian Stand-

ingready.

“Th e big companies are too big. Our interests

aren’t important to them,” said Lonechild, when

asked why they went with a start-up company as a

partner.

“Just another asset,” is how Brent McArthur

characterized large company’s perspective on their

land.

“Th ey had the best proposal,” Lonechild said.

McArthur added that as a smaller company, they

were willing to negotiate.

White Bear has 2,346 members in total, of whom

approximately 800 live on reserve. Th e First Nation’s

land is in one 47 square-mile block. Unlike many

other First Nations in the province, White Bear has

not yet resolved its Treaty Land Entitlement addi-

tional acres, and has outstanding land claims issues.

Th e reserve is located just a few minutes drive

north of Carlyle, and is close to the heart of the ac-

tion in southeast Saskatchewan. Yet while drilling

has been taking place all over the region, and espe-

cially just north of the reserve in Moose Mountain

Provincial Park, there hasn’t been a well drilled on

White Bear since 2005.

Th at’s not to say there hasn’t been drilling in the

past. “Since the 1950s, we’ve drilled about 135 wells

on the First Nation,” McArthur said. Of that, about

115-120 were drilled in the period from 1993 to

2005.

In the 1980s, the First Nation owned White

Bear Resources Inc. for the purposes of joint venture

development. Th ere was a small program with Cana-

dian Hunter in 1987-88, but it wasn’t successful and

was uneconomic, according to McArthur.

Page B6

Pursuing Tilston, then Bakken

White Bear First Nation has been working hard on economic development for decades. In the early ’90s, it founded the movement of First-Nations run casinos, such as its Bear Claw Casino, seen here. Now it is getting back into the oil and gas game, and intends on drilling wells shortly.

Photo by Brian Zinchuk

B6 PIPELINE NEWS November 2010

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White Bear First Nation Page B5

After that, further

talks resulted in a 1993

agreement between Tri-

Link Resources Ltd. and

the First Nation’s second

venture, White Bear Oil

and Gas Ltd. Th is led to

the majority of explora-

tion on the First Nation.

In 1998-99, the price of

oil dropped, and TriLink

backed off development.

Th e last well was drilled

in 2005, just before the

Bakken rush would

sweep the region.

McArthur explained

that the level of success

for White Bear Oil and

Gas wasn’t minimal

or outstanding. Th ere

was reasonable benefi t

to the First Nation. A

gross overriding royalty

is still received from on-

going production. After

a number of ownership

changes, the existing

wells are now operated

by Harvest Operations

Corp., a subsidiary of

Harvest Energy Trust.

Harvest has recently

been acquired by Korea

National Oil Corpora-

tion.

Th e 1993 agreement

had run its course and

was allowed to expire.

Th e First Nation began

looking into opportu-

nities for a new agree-

ment in 2005. It took

several years of work

to get things lined up,

and the decline of oil

prices in 2009 set them

back many months. As

McArthur put it, there

were “many interesting

zigzags.”

Th ey had an agree-

ment on the table that

was “beautiful,” with in-

teresting terms in 2008,

but oil bottomed out,

and they needed those

prices to come back to

continue. “It probably

set us back 18 months,

but it gave us time to

focus on other things,”

he said.

Lonechild pointed

out the 10- year cycles

the oil patch seems to

follow, and that it is

coming out of the bot-

tom of one now.

Page B7

These wells were developed as part of a partnership with TriLink Resourc-es. That agreement expired in 2005, and there has been no further oil de-velopment on White Bear First Nation since then. That will soon change.

Photo by Brian Zinchuk

PIPELINE NEWS November 2010 B7

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This building on the White Bear First Na-tion is for post sec-ondary training and education. People under the age of 35 make up about a third of the White Bear population.

Photo by Brian Zinchuk

launching energy company Page B6 Th e First Nation got the feel of the

people regarding new development, and a poll re-

ceived favourable support. A new agreement was

signed April 1, 2010, and has a fi ve-year term.

“We’re looking at tapping into the Tilston,

which is what we have producing right now,” said

McArthur.

“We’re not producing Bakken yet,” Lonechild

added, but pointed out they will be targeting it in

the future.

Th e plan is for approximately 15 initial wells, but

that depends on the success of the fi rst few wells.

“We are doing some step out development right

now,” Lonechild said. Th at will be followed by ex-

ploratory drilling in early 2011.

“We’re trying to get at least three wells drilled

here by year end,” McArthur said.

On Oct. 7, a professional archeologist and an

environmental consultant were on site, doing foot

surveys of drilling locations and pipeline rights-of-

way.

Th e plan is to use pad drilling where possible,

in an eff ort to minimize land disturbance. “For us,

that’s number one,” McArthur said, noting the land

is used for cultural purposes, tourism and recreation.

“We live off the land,” Lonechild added, saying

there were lots of hunters who make use of it. Th ere

needs to be a balance of development and conserva-

tion, she explained.

Th e block of land is substantial and contigu-

ous. Th ere are certain areas on the north side that

are exempt from development due to outstanding

historical land claims issues. Th ere are approximately

11,000 hectares, or 27,200 acres available for devel-

opment. It’s one of the largest blocks available for

development in the region. Th ere are certain subsur-

face leases that will need to be worked around. Th ere

will also be buff ers around certain areas.

Asked if they were going to have local driller

Eagle Drilling Services doing the work, McArthur

noted they were already booked up. Th e First Nation

would prefer to align itself with Aboriginal com-

panies, and has a partnership with Beretta Pipeline

Construction, a Lloydminster outfi t owned by On-

ion Lake First Nation. Th e two First Nations have

been working together on a number of fronts, and

are among the leaders of First Nations bands who

are active in the oil and gas arena.

“I think there’s room for a start-up enterprise,

right on the First Nation,” McArthur said. “Th ere’s

room for business creation.”

“Th is is a diff erent era. Times have changes.

We’ve got a lot more willingness in industry and in

the corporate arena to have those opportunities.”

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By Brian Zinchuk

White Bear First Na-tion – When it comes to

economic development,

White Bear First Nation

has been at the forefront

for many years. In 1993,

it was the First Nation

that launched the whole

movement that led to

legalized First Nations-

owned and operated ca-

sinos in Saskatchewan.

A 36-room hotel has

just been re-opened as

part of the Bear Claw

Casino.

Th ere’s a 960 lot

resort on site that has

been an attraction since

the 19th century. A golf

course is nearby. Now

the First Nation is em-

barking on its third ven-

ture into the oil and gas

industry, with Wabi-

musqua Oil and Gas

Limited, and a joint

venture partner about to

start drilling wells be-

fore the end of the year.

White Bear First

Nation is an amalgam

of four First Nations,

Saulteaux, Cree, Na-

kota and Dakota. About

two-thirds of the band’s

nearly 2,400 members

live off reserve. Chief

Brian Standingready

has led the First Nation

for 24 years now.

Economic develop-

ment is important for

Saskatchewan’s fastest

growing demographic,

Aboriginal young peo-

ple. About one-third of

the First Nation’s mem-

bership is youth – peo-

ple under 35, according

to Standingready.

“We have a K-12

school on the reserve,

and a post secondary in-

stitution for skill train-

ing,” he said.

While they gradu-

ate a number of students

every year, “a lot of those

graduates are still on the

reserve.”

“Th e opportuni-

ties are out there, but

they don’t have access to

those opportunities so

far,” he said.

“We have such a

large potential work-

force in Saskatchewan

in the Aboriginal peo-

ple, especially young

people,” he said.

He noted that gov-

ernment caps on post-

secondary funding in

the early 1990s are still

having eff ects felt to-

day. Standingready is

concerned if current

education grants are

converted into a form

of student loan, it would

make higher education

unreachable for many of

their young people.

“If that’s the case,

there’s no way our stu-

dents can aff ord to

take out loans to go to

school,” he said.

Economic develop-

ment is important, he

said. “It a priority. If you

want to become self-suf-

fi cient and independent

from government, eco-

nomic development will

provide that. You can’t

always be dependent on

government.”

He noted the First

Nation’s economic devel-

opment initiatives have

all been through their

own fi nancial resources,

not from governmental

assistance.

Standingready noted

their future plans in oil

and gas involve devel-

opment not only on the

reserve, but off reserve as

well. He spoke of future

maintenance contracts

and providing auxiliary

services as part of their

initiative in the fi eld.

Page B9

White Bear focused on economic development

Brian Standingready, left, and council member Francis McArthur are work-ing on bringing prosperity to White Bear First Nation.

Photo by Brian Zinchuk

PIPELINE NEWS November 2010 B9

Create opportunity for individuals to build homes Page B8

“We’re in business

here not only in oil and

gas, but in tourism and

gaming. We depend on

our patrons. We value

their business,” he said.

He noted that White

Bear did not take part in

protests that occurred at

the beginning of con-

struction of the Enbridge

Alberta Clipper project in

2008. Th e result of those

protests led to some “set-

aside” contracts for First

Nations. Standingready

said they would rather

“compete on the outside

based on our ability to do

the job, as opposed to set-

aside contracts.

“We’re looking at

joint ventures with some

established companies,”

he said, referring to the

services side of the oil

patch. “It’s long term.”

Francis McArthur,

69, has been a council

member with the First

Nation for six year. He

noted, “Most of the work

is off reserve. Th at’s where

the action is.”

Standingready said

the First Nation has the

authority to impose or

not impose taxes.

“If anyone wants to

do business on White

Bear, we have the ability

to provide tax incentives,”

he said.

On the day Pipeline News visited White Bear,

an archeologist and en-

vironmental consultant

were surveying potential

drilling sites for cultural

signifi cance. “It is impor-

tant when you’re going

through development,”

Standingready explained.

“Sometimes, you run into

unmarked burial sites.

Also, there’s ceremonial

sites. Th ey have to be re-

spected. Th at’s part of our

culture and practices.”

He said violating that

would be akin to build-

ing a pipeline through a

church. Provisions have

to be made to go around

sensitive sites.

It is important to

honour these sites, he

explained. “You make ev-

ery eff ort not to disturb

them.”

Th e First Nation is

looking into signing up

with Saskatoon-based

Westcap Mgt’s BRIDG

program. It’s designed

to assist First Nations in

improving governance so

that they are better able to

get into business. In order

for business to succeed,

you need good corporate

governance and training,

according to Standin-

gready.

“You have to separate

the politics from business.

Governance is important,”

he said.

“We haven’t really

gotten into it [BRIDG]

yet. We still have to sit

down and detail it out.

Once the full board is in

place for Wabimusqua,

that will be their deci-

sion.”

While petroleum

revenues from new devel-

opment will be welcomed,

the band does not have

direct access to them, and

there are restrictions on

what it can do with the

money. Th ose revenues

are regulated by the In-

dian Act, McArthur and

Standingready explained.

Under the Indian Oil

and Gas Act, those royal-

ties go into a trust account

in Ottawa. McArthur

said, “We cannot invest

back into the community

any revenues from [our]

oil and gas account.”

“Th e use of our rev-

enues is really restricted,”

Standingready said.

Th e de facto default

position has become

general payouts to band

members of a certain per-

centage of revenue in the

account, when triggered

by a band council resolu-

tion. It is generally done

before Christmas.

“Our people are

now expecting annu-

ally payouts,” McArthur

explained. However, in

2009, a down year in the

oil patch, there was no

payout.

“If there’s no money,

there’s no money,” the

chief said.

McArthur said per

capita payouts are seen by

the federal government as

a way for all member to

get benefi ts, and to “cover

their butt.”

Th ese payouts cannot

be more than 50 per cent

of the revenue.

Money in the ac-

count can be used for

capital initiatives, like

housing, or building roads

or commercial buildings,

or sewer and water.

McArthur would like

to see some control over

new revenue anticipated

from new development,

and have that focused to

economic development.

He noted that Wabi-

musqua Oil and Gas Ltd.

will be able to re-invest

into itself.

He would like to

build infrastructure and

provide opportunities for

members to have the op-

tion to build their own

homes, as opposed to

living in band-provided

housing.

“Give people oppor-

tunity to have something

to work for – build a

home of their own, create

value for them,” he said.

Standingready con-

cluded, “From the com-

pany side, we’re open for

business.”

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Ottawa - Many people may not realize that

First Nations bands do not have complete con-

trol over the development or funds that come

from oil and gas production on their reserve

lands. That’s were Indian Oil and Gas Canada

(IOGC), a federal agency, comes in. According

the to the IOGC website (www.iogc-pgic.ca), it

is “an organization committed to managing and

regulating oil and gas resources on First Nation

reserve lands. It is a special operating agency

within Indian and Northern Affairs Canada.

“IOGC is responsible for oil and gas on First

Nation reserve lands across Canada, but only a

handful of reserves exist north of the 60th paral-

lel. Therefore, practically all of IOGC's work is

south of the 60th parallel, with most of that in

the Western Canada Sedimentary Basin.

“IOGC's general responsibilities are to:

• identify and evaluate oil and gas resource

potential on Indian reserve lands;

• encourage companies to explore for, drill

and produce these resources through leasing ac-

tivity;

• ensure equitable production, fair prices and

proper collection of royalties on behalf of First

Nations;

• and secure compliance with and administer

the regulatory framework in a fair manner.

“IOGC operates pursuant to the Indian Oil and Gas Act and Indian Oil and Gas Regulations, 1995, as well as other relevant legislation and

guidelines. Oil and gas activity on First Nation

reserve lands depends on agreements involving

First Nation band councils, oil and gas compa-

nies, and Indian Oil and Gas Canada.”

IOGC controls O&Gdevelopment on reserves

White Bear First Nation – Francis McAr-

thur, 69, was in the oil

business before he got

into First Nations poli-

tics. Th e six-year mem-

ber of White Bear First

Nation’s council used to

work in the service in-

dustry.

“I was in the oil

business before I got

into politics,” McArthur

said. “Prior to that, I was

with the federal govern-

ment in Alberta with

HRDC in Lethbridge.”

McArthur was the

owner/operator of Gee-

gee Oilfi eld, based at

White Bear First Na-

tion. It was a general

oilfi eld maintenance

company, doing this like

setting up pumpjacks

and working with sur-

face lines.

“We did that for

about six years until the

bottom fell out of the

industry,” he recounted.

He had fi red up in

1995, based on some

information put up by

TriLink Resources, the

company White Bear

Oil and Gas Ltd. had

partnered with to de-

velop oil properties on

the reservation.

“I had three trucks

with all the tools, gin

poles, hydraulic lifts,

BobCat and a backhoe.”

“We were the odd

guys out,” he said when

things dried up, result-

ing in him slowly get-

ting out of the business.

Now he is one of

a number of people on

White Bear working to

advance the First Na-

tion’s oil and gas oppor-

tunities.

“I’m working with

her [Annette Lonechild],

Brian [Standingready],

Brent [McArthur], and

Bruce Standingready,”

he said.

Brian Standingready

is the long-serving chief

of the First Nation,

while Brent McArthur

heads up petroleum de-

velopment and is now

director and president

of Wabimusqua Oil and

Gas Ltd., the First Na-

tion’s new oil and gas

company. Bruce Stand-

ingready heads up lands

and resources for the

First Nation.

In the oil businessbefore politics

PIPELINE NEWS November 2010 B11

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Waskada, Man. –

Waskada, Man., has

seen a substantial boom

of drilling this year. Th e

oilpatch fi rst came to the

community with a boom

in the early 1980s, and

that is now being repeat-

ed nearly 30 years later.

EOG Resources

Canada Inc. is one of

two producers that are

primarily driving this lo-

cal boom. Th e company

is currently building an

eight-inch pipeline from

Waskada to the En-

bridge Mainline termi-

nal at Cromer, and has

several rigs drilling in

the area.

A large-cap inde-

pendent producer, EOG

Resources is based in

Houston, Texas. Th e

company has operations

in Canada, the United

States, China, Trinidad

and Tobago, the East

Irish Sea and North

Sea around the United

Kingdom.

Paul Arnott, vice-

president and general

manager of EOG Re-

sources Canada Inc.,

took part in Manitoba

Innovation, Energy and

Mines Minister Dave

Chomiak’s Sept. 28 tour

of their Waskada facili-

ties and pipeline con-

struction project.

When asked for an

interview, EOG’s pub-

lic relations department

referred Pipeline News to

its pipeline application

fi ling with the Manitoba

government.

According to its ap-

plication to build the

pipeline, EOG has been

operating in the Waska-

da area for over 25 years.

At the time of fi ling

(March 22, 2010), the

company had 329 wells

in the area, made up of

272 oil producers and 57

injectors. EOG drilled

10 wells in 2008 and 28

in 2009. As of March,

their plans were to drill

an additional 100 wells

in 2010, another 100

in 2011, and then 50 in

2012.

Page B12

Paul Arnott, EOG Resources Canada Inc. vice-president and general manager, and Adrian Neu-mann, pipeline project manager, were on hand Sept. 28 to take the Manitoba minister of Innova-tion, Energy and Mines on a tour of their facili-ties and pipeline project around Waskada. This photo was taken at the camp, north of Waskada, which has been necessary to handle the in ux of workers in the area.

EOG builds pipeline from Waskada to Cromer

B12 PIPELINE NEWS November 2010

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Page B11Th e application

noted, “EOG anticipates

to ship approximately

10,000 bpd of oil by

the end of 2010. EOG

is currently trucking oil

from the existing EOG

Waskada batteries to the

existing Enbridge facility

near Cromer. Trucking

has signifi cant issues, in

addition to contribution

to air emissions, which

will be eliminated upon

installation of a pipeline.

Other issues related to

trucking include: main-

taining suffi cient supply

of trucks to meet up with

capacity expectations;

potential safety issues as-

sociated with large-truck

traffi c to local communi-

ties, including the use of

bus routes; ongoing road

usage and potential im-

pacts to highways; road

ban restrictions (i.e. tim-

ing, weight and load re-

strictions) which impact

delivery outcomes and

access to Cromer.

“EOG considered

utilizing the existing

Penn West pipeline be-

tween Waskada and

Cromer but deemed this

unsuitable as the exist-

ing Penn West pipeline

does not have the ca-

pacity to accommodate

EOG’s anticipated pro-

duction. Current capac-

ity of the existing Penn

West pipeline is 5,700

bpd at a derated MOP.

Th e proposed pipeline

will have a capacity of

40,000 bpd. Th e design

of the proposed pipeline

allows for capacity to

be increased in the fu-

ture with the addition of

booster pumps or valve

stations. Th e pipeline

design allows for the ac-

commodation of third-

party production which

will further reduce oil

trucking on Manitoba

highways.”

Th ey included a chart

that showed at 10,000

bpd production, 37,960

total trips per year would

be needed with 30 cu-

bic metres per load. Th e

pipeline is designed to

sour specifi cations.

Th e routing for the

pipeline was designed

to minimize crossings

of wetlands, lakes and

sloughs. It paralleled

existing rights-of-way

or linear developments

where possible.

“Th e Waskada to

Cromer pipeline will in-

clude design features for

corrosion control, spill

prevention, leak detec-

tion and emergency

shutdown. Two forms

of protection from ex-

ternal corrosion will be

utilized: the pipeline will

be protected with yellow

jacket coating and the

pipeline will be cathodi-

cally protected. Internal

corrosion protection will

be accomplished through

chemical inhibition,” the

application noted.

EOG a driving force behind local boom

PIPELINE NEWS November 2010 B13

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White Bear First Nation – Patrick Young, a pro-

fessional archeologist with Golder Associates in

Saskatoon, pointed out one thing in particular while

doing a foot survey of potential right of ways and

leases on White Bear First Nation. Nearly all of

Saskatchewan’s archeological sites are Aboriginal in

nature.

He was looking for bones, stone fl akes, stone

tools, any indication of past human activity on Oct.

7. He and environmental consultant Doug Terry

were doing preliminary work at White Bear before

drilling could start. Th at drilling is anticipated to

have three wells in the ground before the end of the

year, and another dozen next year, if all goes accord-

ing to plan.

Earlier in the day, Young and Terry were speak-

ing with band council member Annette Lonechild

and Brent McArthur, director and president of

Wabimusqua Oil and Gas Ltd. Th ey were seeking

elders they could consult with to fi nd out if there

was anything of signifi cance in the areas the work

was planned for.

While on foot, Young performed a series of

“shovel tests,” literally walking around with a shovel

and digging down into the topsoil, looking for clues.

If a test is positive, a grid search is done around it at

regular intervals until you get a sterile test.

If it is a signifi cant site, it would have to be miti-

gated somehow, he noted. Th e fi rst option might

be to move the lease or divert the pipeline, he ex-

plained.

Young worked in heritage consulting for Sas-

katchewan and Alberta companies, getting experi-

ence in the fi eld. He realized he needed more educa-

tion to advance.

“You need a master’s degree to hold a permit,” he

said, referring to an archeological investigation per-

mit. Young received his master’s from the University

of Saskatchewan in 2006, after completing his un-

dergraduate degree in 1995, also at the U of S.

Asked how he liked his job, Young responded,

“Love it.”

“You get to see pretty much every corner of the

province.”

He has worked from Northern Montana to

Nunavut, and from Manitoba to British Columbia.

Young has been with Golder Associates for fi ve years

now.

Archeologist Patrick Young performs a foot sur-vey of land planned for oil and gas development on White Bear First Nation.

Photo by Brian Zinchuk

Most archeological sites in Most archeological sites in Saskatchewan are AboriginalSaskatchewan are Aboriginal

B14 PIPELINE NEWS November 2010

Dan O’ConnorOperations Manager

204-748-5088

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By Brian ZinchukSaskatoon – Federa-

tion of Saskatchewan In-

dian Nations Chief Guy

Lonechild frequently

speaks of a co-ordinating

role the FSIN can serve

between the petroleum

industry and First Na-

tions.

Pipeline News spoke

to Lonechild briefl y on

Oct. 15, during a week

when the chief had spent

a lot of time with the

resource sector on his

mind. Specifi cally, the

FSIN would like to see

a portion of potash re-

source revenue shared

with First Nations.

Pipeline News asked

about First Nations par-

ticipation in the oil and

gas industry.

“I think we have

some involvement in the

oil patch in Saskatch-

ewan,” Lonechild said.

He pointed to suc-

cessful drilling company

president Derrick Big

Eagle of Eagle Drilling

Services and White Bear

First Nation’s eff orts in

the patch.

Th e Saskatchewan

Indian Institute of Tech-

nologies has also been

working on creating

sustainable jobs in the

North Battleford area,

he added. Th ere are also

First Nations pipeline

inspectors.

Asked if the FSIN

had a similar stance with

regards to the oil patch

that they were taking

with potash, he said,

“Th e oil patch has some-

thing to teach of what

we’re trying to do with

the potash industry.”

“Th e oil and gas sec-

tor has some success sto-

ries we can build upon.”

Lonechild has per-

sonal experience in the

oil patch.

“I was a land admin-

istrator for TriLink Re-

sources,” he said, where

he worked as a manage-

ment trainee. He worked

with surface and mineral

leases.

TriLink developed

wells on the White Bear

First Nation in the 1990s.

Lonechild is a member

of White Bear First Na-

tion.

“I believe First Na-

tions people need to

know what those op-

portunities are in the oil

patch,” he said, noting

that is the fi rst step.

He said perhaps an

annual gathering of op-

erators in the province

with First Nations lead-

ers might serve both.

He has spoken to two

FSIN vice-chiefs about

it and suggested some-

thing “will spill out quite

shortly.”

Saskatoon-based

Westcap Mgt Ltd. op-

erates the First Nations

and Métis Fund which

is designed to allow Ab-

original entrepreneurs

and organizations access

to venture capital. How-

ever, there has been a low

level of uptake with the

fund. Lonechild said the

FSIN will take a leading

role in bringing Westcap

together with interested

parties.

“We will play a co-

ordinating role,” he said.

Sustainable economy “We’re talking about

building sustainable

economies in the re-

source sector,” Lonechild

said.

Asked about the

growth of the young

First Nations popula-

tion, he said, “It’s about

reaching out to industry

to hire these people.”

He spoke of the

“sheer challenge to inte-

grate First Nations youth

into sustainable careers,”

and strategies to train

them for such jobs. Key

to that is the Saskatch-

ewan Indian Training

Advisory Group. He

also said First Nations

and tribal councils will

choose courses they will

fund.

Th ere are opportu-

nities in water hauling,

vacuum trucks, and pipe-

line projects, he off ered.

“Maybe what we

need to focus on is a

newsletter to highlight

opportunities,” he said.

While the start of the

Enbridge Alberta Clip-

per project in 2008 was

stalled by First Nations

protests, Lonechild said,

“Th ere are much better

ways to get our voices

heard than protest.”

Th ere needs to be

strategic planning, he

said.

“We fi nd success

when industry realizes it

needs to supply advance

notice, such as at the

National Energy Board

stage. Th ose who do it

early fi nd more success.”

Regarding the idea of

hiring quotas, Lonechild

said hiring “needs to be

based on merit, the abil-

ity to perform.”

He hedged that by

saying there needs to be

an understanding that

not all First Nations

may have the capacity to

compete in these proj-

ects. Th ere is a training

role. Foresight and col-

laboration between in-

dustry, First Nations and

the province is needed,

according to Lonechild.

FSIN Chief Guy Lonechild

FSIN can co-ordinate between industry and First Nations

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Saskatoon – Th ere’s

an investment fund in

Saskatchewan targeted

specifi cally at Aborigi-

nal-owned business cre-

ation. It’s been around

for three years and has

begun to place a portion

of the $20 million it has

for investment.

It’s called the First

Nations and Métis

Fund, and is managed by

Saskatoon-based West-

cap Mgt Ltd. Westcap

is probably best known

as the manager of the

Golden Opportunities

Fund, a Saskatchewan-

based labour-sponsored

investment fund. West-

cap manages approxi-

mately a quarter-billion

dollars in funds.

“It’s an initiative to

recognize the changes

going on in First Na-

tions and Métis coun-

try,” said Grant Kook,

president and CEO of

Westcap. “Twenty years

ago, we talked about so-

cial development with

First Nations, then over

the last 10 years, we

talked about economic

development. Today, it’s

about wealth creation.

As First Nations com-

munities create more

wealth, they become

more independent and

self-suffi cient.”

BRIDGIn seeking invest-

ment opportunities, the

fi rm has found a need

to assist many First

Nations in sorting out

their governance before

proceeding, so that the

First Nations can make

sound investments. Th us

the Business Ready In-

vestment Development

Gateway was born.

It’s known as

BRIDG, and focuses

on governance, business

readiness and strategic

planning.

“We have to go back

and fi x the governance

to create better clients

increasing the probabil-

ity of business venture

success,” Kook said.

Th e fund spawned

BRIDG, according to

Kook.

“We recognized,

early on, that although

we’ve only done a few

transactions, and they’ve

been successful by all ac-

counts, that we needed

to go back and put bet-

ter governance in place

for First Nations com-

munities,” he said.

To that end, they

were able to obtain $8

million from the fed-

eral government for the

BRIDG program.

“Sixteen First Na-

tions communities in

the program are saying

‘We want to do better.

We want better gover-

nance. We want to learn

and need mentorship.’”

Kook explained.

Th e program is set

to run over three years.

Some of the First

Nations partnering in

BRIDG include Th un-

derchild, Ahtahkaoop,

Birch Narrows, and

Carry the Kettle.

“We’re working with

Carry the Kettle on the

next generation of oil

and gas ventures,” said

Tyler Bradley, an invest-

ment analyst with West-

cap whose responsibili-

ties include this fund.

Kook said they went

throughout the province,

seeking First Nations

that were interested.

Th e idea is to sepa-

rate business from poli-

tics. Bands cannot be

in third party manage-

ment to apply, and have

to have $25,000 “skin in

the game,” as Kook put

it.

Th ey had 30 appli-

cations, accounting for

almost half of the First

Nations bands in the

province. Not everyone

that was interested got

in. “It’s a tremendous

story in terms of the

First Nations communi-

ties that are saying, ‘We

want it in, and we want

to make change, and

we have opportunities

that are knocking at the

door.’”

Th e ultimate test, he

said, will be completing

a wealth-creating trans-

action in the future that

succeeds.

If a First Nation de-

cides not to carry on with

the program, that money

will be reallocated to an-

other First Nation or

Métis participant.

Each BRIDG pro-

gram participant needs a

CEO in place, “a cham-

pion on the ground,”

Kook said. “We men-

tor the CEOs, and hold

regular meetings with

them.”

Th at CEO cannot

be a chief or councillor

of the band.

Page B16

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Page B15

Th e idea is to set up

a development corpora-

tion for the First Na-

tion.

Th e program pays

for the legal setup of the

corporate entities and

assists with the early

legal infrastructure and

governance. Th en they

evaluate various business

opportunities.

“Each participating

community is at a dif-

ferent level of develop-

ment,” Kook said.

Many of these par-

ticipating First Nations

are in mineral or oil and

gas country, according to

Kook.

FundKook talks about

the next wave of wealthy

First Nations in the prov-

ince. “Th ere are success

stories today. We have

to increase those success

stories. We have to take

those fi ve to 10 commu-

nities that are successful

and make that 20, then

30, then 40; no diff erent

than what we’ve done

with Saskatchewan en-

trepreneurs in the non-

First Nations sector.

“At Westcap, we

have a team that is dedi-

cated to running a fund

that is $20 million in

size to help First Nations

participate in the wealth

of this province, in terms

of managent buyouts,

resources, oil and gas,

as well as a program

like BRIDG that helps

with better governance

and get them business

ready.”

Th at $20 million was

funded by the provincial

government, and the

fund is now three years

old. To date, approxi-

mately $4 million has

been committed while

they roll out BRIDG

and the governance and

infrastructure fi rst. Th ere

has been a lot of activity

in the Fund as of late, ac-

cording to Kook, and he

expects additional trans-

actions to be announced

soon.

Oil and gas is one

area the fund can invest

in, but it is not limited to

that sector.

Page B17

Grant Kook is president and CEO of Westcap Mgt Ltd., the rm that manages the First Nations and Métis Fund. File photo

PIPELINE NEWS November 2010 B17

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Waskada, Man. –

Spearing Service L.P. is

building a shop just south

of Waskada to support its

burgeoning business in

the area.

“We bought 20 acres

of property there to de-

velop,” said Ken Mc-

Clement, Spearing’s op-

erations manager based

in Oxbow. Th e company

is a subsidiary of Mullen

Group Ltd.

“We’ll be in our

shop within 90 days,” he

said on Oct. 19. “Th ey’ve

started her now.”

Th e company is

building an 8,000 sq.-ft.

shop which will include

eight doors arranged for

drive-through access. A

wash bay will be part of

the shop. Offi ce space

will also be part of the

package.

Th e location will

have a mechanic as well

as offi ce staff .

Th e company will

move in some wellsite

trailers for temporary ac-

commodations for staff .

“We need some

lodging for some guys,”

McClement said.

“We’ve got up to

20 guys there most days

now,” he said of the cur-

rent Waskada workforce.

Some are locals, some are

staying in locally rented

homes, some are trav-

elling from Pipestone,

Man.

Th e earlier wet

weather meant some

changes to the founda-

tion, but otherwise Mc-

Clement said, “It’s been

really good.”

In the area it’s pretty

common to see Spear-

ing’s horizontal frac trail-

er tanks on local wellsites

during fracturing opera-

tions.

“We have over 60

of the frac trailers down

there now,” McClement

said.

Th e yard will allow

for storage, plus a place to

clean and restore them.

Th e company has

been building up its fl eet

of frac trailers. “We have

178 altogether now,” he

said.

Spearing Service LP builds Waskada shop

This site is rapidly turning into a new shop location for Spearing Service L.P., just south of Waskada, Man.

Page B16Any First Nation or

Métis organization, com-

munities or entrepreneurs

can apply for access to the

fund. Th ey have to have

51 per cent ownership of

the enterprise.

“We’ve done a couple

transactions, successful by

all accounts,” Kook said,

but noted they were early

on.

“We bridge a whole

new side,” Kook said.

Th rough Westcap’s

experience and connec-

tions as one of the leading

investment fund manag-

ers in the province, they

are able to bring deal fl ow,

management teams, in-

vestors and, probably most

importantly, business acu-

men in the acquisition

and investment space.

It’s possible, for in-

stance, to work with them

to develop joint ventures

with good management

teams, such as the “top-

tier oil and gas manage-

ment teams,” Kook likes

to refer to.

“We can come to the

table with them on their

behalf,” Kook said. “Th at’s

our business, helping

them vet [business op-

portunities],” he said.

Westcap, he said, has

their interests at heart,

and can be aligned by

investing alongside with

them in the venture.

“Our deal size is be-

tween $1 million to $3

million. If it needs more,

we can partner with

Golden Opportunities, or

other oil and gas partners

we know,” Kook explained.

Th at can be leveraged into

a $10 million deal.

“We’re pretty excit-

ed,” he said.

“We’re looking at

management buyouts,

service, manufacturing,

value-added ag. We’ll

look at mineral plays.”

One of the companies

they have partnered with

is Eagle Vision Mulching

out of Big River.

Some companies see

opportunities butting up

on First Nations lands,

Kook noted in reference

to oil and gas develop-

ment. Th ere are some

inherent opportunities,

not only from a taxation

perspective, but through

lands that have been ac-

cumulated through the

Treaty Land Entitlement

process.

Whereas historically,

the First Nations may not

have come to the table

with capita, the fund can

help them with that now.

As fund managers,

Westcap can bring advice

at the board level.

“We know it’s ulti-

mately about manage-

ment,” Kook said.

Th e two programs

– BRIDG and the First

Nations and Métis fund,

are connected because of

what they do at Westcap,

Kook explained. Th ey are

driven to see that First

Nations are not left be-

hind in creation of wealth

and the resource develop-

ment that’s occurring this

province.

“Th e fund’s fi rst

mandate is to help create

wealth for First Nations

and Métis. If you’re cre-

ating wealth, you’re creat-

ing sustainable long term

jobs.

“It’s about job cre-

ation,” he said, noting there

are no hiring quotas.

Improving governance before investment

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Waskada, Man. –

Hannah’s Tank Rentals

has been through the

busy times and the slow

times in Waskada, Man.,

fi ring up during the fi rst

oil rush in the commu-

nity and now seeing the

second.

Clayton Hannah,

proprietor, said they

started up, “Oh, about

25 years ago, way back in

’84-’85.”

Clayton’s wife, Fran,

is the other half of the

company, whose role is

administrative work.

“I started the last

time the oil patch was in

Waskada,” said Clayton.

At the time, he was

an agent for Circle D

Tanks. “When they left,

I bought a couple tanks

and started building if

from there,” he said.

Th e company is

pretty focused. Th ey

handle tank rentals, and

only tank rentals. Of

that, you can have any

size you want, as long as

its 400 barrels. “Th at’s all

I rent,” Clayton said.

“It’s my main thing.

I’m retired from farm-

ing. It’s a full-time job

for me,” he said of the

rental business.

Th e company now

has 35 tanks, slowly

building up in number

over the years.

Over the past year,

Hannah said, “It’s been

busy. Th is week, it could

have been busier. Th ere

are six tanks in the yard.

“Last week, there

weren’t any,” he said on

Oct. 6.

Th ose tanks could be

seen lined up along the

west side of a yard that

could best be described

as park-like, something

Clayton attributes to

Fran. He’s also pretty

conscientious about hav-

ing drivers keep the place

neat and orderly.

As tanks come in,

they are cleaned by an

outfi t brought in, then

aligned on the row ready

to go out.

“It was so quiet here,

I actually subleased my

tanks to an outfi t in Sas-

katchewan in the early

’90s. Th ings have been

a steady increase for

me,” Clayton said. “Th e

last two years, it’s really

picked up.”

“Th ey’ve been good

to support us and the

local companies,” Fran

added.

“It takes a lot of time

to expand,” Clayton said.

“Tanks are not avail-

able at a drop of a hat.

It takes four to six weeks

to make one. We try to

add two to four a year,”

he said.

In the early days,

they had a truck to haul

tanks. He decided to get

rid of it, and let oth-

ers worry about hauling

them.

“If my boy decides to

come home, and some-

day, he might,” Clayton

responded when asked

about hauling their own

tanks. “It’s a young man’s

game, rolling 16 hours a

day.

“Right now, it’s

tough to fi nd a good

man to work for you,” he

said.

Clayton said they

hope to get about 10 to

12 years of life out of a

tank, but that depends

on what they are used

for.

“Th ese wells have

more gas. We’re start-

ing to epoxy coat them.

We hope to get an extra

three to fi ve years,” he

said.

Hannah’s been around for both booms

Clayton and Fran Hannah have been operating Waskada-based Hannah’s Tank Rentals since the rst oil boom hit the small Manitoba community in the 1980s.

PIPELINE NEWS November 2010 B19

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Rider fan maybe?Saskatchewan Roughriders fan Michael “Huge” Blair paid $200 for the custom paint job on his hardhat. The Rider Pride motorhand could be found working on Precision Drilling’s Rig 205 near Waskada, Man. on Sept. 28.

Photo by Brian Zinchuk

Waskada, Man. –

Th ere are a lot of new

faces working in and

around Waskada, Man.,

these days. One of those

new people, for a short

time at least, was Daryl

Schienbein, relief chef at

PTI Group’s Waskada

Lodge, while another is

Weyme Teeter, fi rst chef.

Schienbein had just

arrived at the camp when

Pipeline News visited on

Sept. 28.

“I was up in Baf-

fi n Island, doing DEW

Line cleanup,” he said,

referring to the continu-

ing decommissioning

process of the cold-war

era Distant Early Warn-

ing line of radar stations

in the high arctic.

Schienbein was fi ll-

ing in for Terry Kluke,

the regular camp cook.

PTI cooks typically

work three weeks on and

one off , requiring a relief

cook to fi ll in during the

off week.

“I’m a bit of a Gypsy

right now, but I guess

Vancouver was where I

was raised,” said Teeter

while making the fi nal

preparations for lunch.

“I’m kind of a Gypsy,

too,” added Schienbein.

“I was born in Saskatch-

ewan, and I’m a Riders

fan. Does that count?”

His family moved to

British Columbia when

he was two.

Th e camp has re-

cently doubled its capac-

ity, and will soon have

nearly 200 people stay-

ing there.

“Right now, we’re at

100. Th at’s 300 meals a

day,” he said.

Th e camp allows

walk-in traffi c for meals.

With a fl at rate for each

meal, a person has ac-

cess to everything on

that menu. Asked how

he factors for that vari-

ability, Schienbein said,

“I will calculate 1.5 pork

chops per person,” he

cited as an example.

Orders are done

weekly, and as the camp

population climes, they

order accordingly.

Schienbein attended

Vancouver Community

College, and has his Red

Seal chef papers.

While chef train-

ing may focus on fancy

French cuisine, Schien-

bein said, “Out here,

you’re doing mom and

pop cooking – comfort

food.”

Teeter, 27, said she

fell into cooking after

high school. “Here I am,

10 years later.”

Schienbein, 44, has

been with PTI for six

years. He had worked

in hotels and restaurants

on the West Coast, and

had been a sous chef on

Vancouver Island be-

fore joining PTI. “I al-

ways wanted to check

into camp life. I called a

friend, and it was ‘When

can you be here?’”

He’s found it’s bet-

ter money than work-

ing on the island. “Th is

has worked out well. Th e

pay’s good, job’s good.

Camp life’s not for ev-

erybody, but I don’t mind

it.”

Much of his work

has been around Fort St.

John, B.C.

“It’s really pick and

choose. Go where the

jobs are. Wherever they

have work, they send

you.”

Cook lives life of a Gypsy

Daryl Schienbein, relief chef at PTI Group’s Waskada Lodge, serves up lunch.

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Waskada, Man. –

Wherever there’s action

in the oilfi eld, you’ll fi nd

CE Franklin supply-

ing all the necessities to

get the job done. After a

long hiatus, the company

is now back in Waskada,

Man., taking part in the

local boom that is oc-

curring around the small

village.

“We set up mid-

April, and opened the

start of May,” said Scott

Wilson, 35, manager of

the CE Franklin’s Vird-

en, Man., location. “We

were here once before,

in the fi rst boom in the

early 1980s.”

At that time, the

company operated out of

ATCO trailers. “I used

to work here in those

trailers,” he said. Th e

Waskada branch closed

in December 1998, dur-

ing a low time for the

oil patch. As Wilson

explained, “Oil was $11

a barrel and there was

nothing going on. We

needed a new building

and there was no main-

tenance [going on].

“When we closed

Waskada, I went to Fort

St. John for eight years,

then Calgary for three

and a half years.”

He has since ended

up looking after the

Virden location. Wilson

noted they didn’t want to

close in 1998, and when

he returned to the re-

gion, he was consistently

asked to set up a supply

store at Waskada. Now

he’s assisting Virden-

local Jason Wickham

get the store up and run-

ning.

Wickham, 37, start-

ed in April, and has fi ve

years previous experi-

ence with a local oilfi eld

maintenance crews. His

father, Don, owned the

building they are now

set up in. It used to be an

agriculture supply store

and at one point a lum-

ber yard.

“Th ey even used to

sell curling equipment

here for a little while,”

Wilson said.

Living three miles

from Waskada, Wick-

ham tried his hand at

farming, but it didn’t

work out. Like many

others, that’s how he

found himself working

in the oil patch.

“I was a plumber by

trade,” he said, but found

himself working on wa-

ter drilling rigs for low

wages. As a local, he’s

seen the ups and downs

in the patch. His father

used to be an operator.

“When the oilfi eld

died, Waskada died with

it. Houses sold for cheap.

We probably had eight

good homes moved out

of town,” Wickham said.

“Guys would buy a house

and lot for 1,000 bucks.

Th at’s changed now,

with activity levels caus-

ing a recently established

camp to double in size to

200 beds. It’s been driv-

en by some of the local

players in the Waskada

area including ARC Re-

sources, PetroBakken,

Molopo, Red Beds (a

subsidiary of Manitoba’s

biggest oil producer,

Tundra Oil and Gas),

Penn West and EOG

Resources. Th e last two

are defi nitely the largest

operators in the area. In

early October, there were

six rigs active within just

a few miles of town.

Regarding the lo-

cal activity level, Wilson

said, “I can see 1,200 to

1,600 wells within fi ve

years in the Waskada

area, and possibly more.”

Page B21

CE Franklin returns to Waskada

CE Franklin has re-established its presence in Waskada, Man. On the left is Jason Wickham, who looks after the Waskada store, and Scott Wilson, who manages the Virden location.

PIPELINE NEWS November 2010 B21

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Jason Wickham, left, and Scott Wilson, can be found at the Waskada CE Franklin location. Wilson is the the manager for Virden, while Wickham operates the Waskada location. Wilson used to work in Waskada several years before.

Rope, soap and dope supplied Page B20

Th ere is talk of a gas

plant in the area.

“It’s the price of oil

and new technologies.

Th en years ago, they

abandoned a tonne of

wells. New drilling and

fracking technologies

have surged in this area.”

For their business,

he said, “It’s improving

every month. We’re get-

ting used to customer

requirements, building

inventory according to

local needs.”

Being in Waskada,

just a few minutes drive

from a lot of the action,

makes a big diff erence,

according to Wilson.

“If an operator needs

a $2 fi tting, it saves them

an hour running there

and back,” he said of the

next closest supply store.

“Most of the drill-

ing activity is within 25

minutes of Waskada.”

Wilson explained

the company has fi ve

building blocks of its

business. Th ey include

artifi cial lift; mainte-

nance, repair and op-

erations supply, or MRO

(also known colloqui-

ally as “rope, soap and

dope”); actuation and

automation; tubular; and

major projects. Locally,

artifi cial lift and MRO

are the main focus at

Waskada. Th ey also have

some tubulars outside

the building.

Th e company has

also locally partnered

with Virden-based Safe-

ty Source, a safety sup-

ply store (see story page

C16). Th e partnership

provides them with per-

sonal protective equip-

ment to off er. Wickham

noted they will be carry-

ing air pack systems as

clients call for them.

One thing they both

point out is the diffi -

culties of logistics for

the Manitoba oil patch.

Even though Virden is

not far away and on the

TransCanada Highway,

overnight service does

not occur, especially for

products coming out of

Edmonton. “It’ll drive

right past us on the way

to Winnipeg,” Wilson

said, pointing out there

is no trucking depot in

Virden. While they are

working on it, he ac-

knowledged, “Freight is

one of our biggest ex-

penses and problems.”

“I’m a home boy

through and through,”

Wickham said. In the

’80s, it was such a quick

little boom. Everybody

made their money and

left. I hope some day

this isn’t just a one man

store,” Wickham said.

He wants jobs in

town, and besides, they

need more kids to play

hockey with his kids.

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Onion Lake – When opportunity knocks, the

Onion Lake Cree Nation’s Business Development

Corporation (BDC) is ready to open new businesses

under its administrative umbrella.

Meetah Building Supplies is the latest in a grow-

ing list of companies managed and operated by the

Onion Lake BDC.

Th e new venture is one that general manager

Jim Chisholm says currently employs eight band

members and meets the needs of a booming housing

market.

“For 2010, we have 59 new houses being built at

Onion Lake and another 50 renovations,” he said.

“Th e business is supplying building materials.

We have a very active housing business here in On-

ion Lake. We build a lot of houses here.”

Construction is under way on a new 10,000 sq.

ft. building behind the BDC offi ce to house building

supplies such as all types of lumber, drywall, roofi ng

and siding materials.

Th e old hockey arena adjacent to the BDC of-

fi ce is currently being used to store product inven-

tory until the Meetah Building Supplies centre is

complete.

Th e new steel frame building will share space

with an existing glass shop in Onion Lake that

could morph into a manufacturing centre for sealed

windows.

“We do other things as well and we have wid-

ened our product group,” said Chisholm. “We sup-

ply furniture, appliances and all that sort of thing to

our new houses and to our social assistance group

here.

“Th ere’s a lot of potential there.”

Chisholm says Meetah Building Supplies was

created in 2009, but didn’t really get going until the

beginning of December.

“Th e idea came up that rather than give the

profi ts in building materials to people outside the

community, that we would create our own build-

ing supply company and keep the profi t within this

community,” he said. Page B23

Onion Lake grows its own Onion Lake grows its own building supplies businessbuilding supplies business

Cliff Keller, a contract driver for Askiy Apoy Haul-ing, takes a break along with dispatcher Keith Miller, and Jim Chisholm, the general manager of Meetah Building Supplies. The band’s Busi-ness Development Corporation of ce is shared by several Onion Lake businesses.

PIPELINE NEWS November 2010 B23

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Page B22Chisholm also credits the progressive attitude

of the BDC as well as band Chief Wally Fox and

his band council for helping to get Meetah Building

Supplies off the ground.

“We have a very business-driven community, and

we are always looking for opportunities,” he said.

“Th e longer term vision is to widen the econom-

ic base of this community and not be so dependent

on oil and gas. Th e plan is to diversify and spread our

wings and try to create businesses.”

Other BDC companies include, Makaoo Mall

Development, Onion Lake Gas, Askiy Apoy Fluid

Hauling, KRP Radio, Onion Lake Energy and On-

ion Lake Enterprise.

“Our business development group that Mee-

tah Building Supplies is part of is owned by Onion

Lake,” said Chisholm.

Onion Lake also owns Beretta Construction,

based in Lloydminster.

“Th e ultimate objective is as Meetah Building

grows is to expand the business outside of Onion

Lake to other First Nations in and around Onion

Lake,” said Chisholm.

“We have only been in operation for roughly 10

months, and in those 10 months we have done quite

a bit of business outside of Onion Lake.

“We are supplying materials for houses being

built at Saddle Lake First Nation (Alberta) and we

have also supplied some lumber products to the Paul

band outside of Edmonton.”

While Chisholm is delighted with the early

success of the new business, he cautions the BDC

doesn’t want it to grow too quickly.

“Our takeoff has been excellent. We are very

happy with the progress that we’ve made,” he said.

“In the building supply business, everyone sells sup-

plies. We have to sell service.

“We can’t take on more than we can comfortably

handle. Building a reputation is really important.”

Jim Chisholm points to a display of all the businesses managed by the Onion Lake Cree Nation Business Development Corporation.

Progressive attitude helps business get started

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VERMILION AB

Story and photos by Brian Zinchuk

Waskada, Man. – Penn West En-

ergy Trust is one of two of the most

active companies on a major push to

increase production around the small

village of Waskada, Manitoba. Th eir

oil production at Waskada has quin-

tupled in one year, from 500 bpd to

2,500 bpd. But the company is plan-

ning to ramp that production up by al-

most a full order of magnitude within

the next two years, to 23,000 bpd.

Put in perspective, the Manitoba

Petroleum Branch’s website notes,

“Th e month of March 2007 had the

highest production on record 120,087

m3 (755,740 bbls) or 24,379 bpd.”

In other words, Penn West expects

to nearly match the entire province’s

peak oil production of nearly four years

ago by itself within two years. Manito-

ba’s all time high for production was in

March, 2010, at 32,000 bpd, according

to Petroleum Branch director Keith

Lowdon.

Penn West’s company-wide aver-

age production at the end of the sec-

ond quarter was 164,141 boepd.

At Waskada, their gas production

went from 100,000 cubic feet per day

to one million. However, due to a lack

of collection infrastructure, at present,

it is all being fl ared off .

“Right now it is all being fl ared

because there is no infrastructure in

the area,” said Tim Buchanan, Penn

West’s local production foreman in

Waskada.

Currently Penn West has the only

oil sales pipeline in the Waskada area

which connects to the Enbridge Main-

line system at Cromer, Man. It’s a six-

inch line, with a 7,500 bpd capacity.

Much of that capacity is currently be-

ing used by EOG Resources, accord-

ing to Buchanan. However, Penn West

is soon going to need all of that capac-

ity for itself, plus more. Th at’s one of

the reasons EOG is building its own

eight-inch oil pipeline from Waskada

with a maximum capacity of 40,000

bpd. A seven-kilometre four-inch gas

pipeline is also under construction for

EOG.

Penn West projects it will have

production to completely use up the

7,500 bpd capacity of its pipeline, and

then will ramp up to 15,000 bpd by

March 2011, and eventually 23,000

bpd within two years. Th is will be ac-

complished by adding booster stations

to the pipeline to max out its capacity.

Th e company is also looking at us-

ing natural gas for electrical co-gen-

eration, which may help alleviate the

pressure on the power infrastructure

locally.

A battery a few kilometres south

of Waskada is currently being substan-

tially expanded to 7,500 bpd, and will

have a second phased added in short

order which will bring it up to 15,000

bpd. Phoenix Industrial is doing the

construction work.

Buchanan said, “We’re looking at

$28 million at this facility alone to get

ready for the production for the next

two years.”

Penn West is currently spending

approximately $800,000 to $1 million

per day in the Waskada region, accord-

ing to Buchanan.

Th ey currently have three rigs

working around Waskada, two doubles

from Ensign Big Sky, Rigs 37 and

89, and a super single from Precision

Drilling. When Manitoba Minister of

Innovation, Energy and Mines Dave

Choniak visited on Sept. 28, Preci-

sion’s Rig 205 was working just a few

kilometres southwest of the commu-

nity.

Page C2

PIPELINE NEWSSaskatchewan’s Petroleum Monthly

C-SectionNovember 2010

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Penn West Energy Trust has been using pad drilling to minimize surface disturbance. This was their rst ve-well pad in the area.

Penn West massively ramping Penn West massively ramping up Waskada productionup Waskada production

Penn West is currently spending

approximately $800,000 to $1 million per day in

the Waskada region.

C2 PIPELINE NEWS November 2010

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Head Of ce:Estevan, Sask.

Tel: 634-3411 Fax: 634-6694Ray Frehlick, Manager

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Page C1

Th e rig was working

on the company’s fi rst

fi ve-well pad in the area,

with several wells already

completed. At the time,

it was typically drilling a

hole 900 metres deep in

an average of 2.8 days.

With the rig move in-

cluded, they were aver-

aging about fi ve days per

horizontal hole.

Th e company has

just under 180 produc-

ing wells in the area.

Th ey drilled 13 hori-

zontal wells in 2009,

and in 2010, had put in

approximately 50 hori-

zontal wells by the end

of September. About

70 are planned for the

whole year. Ten of those

new wells were ready for

fracking at the time of

the ministerial visit.

Kelvin Luedtke,

Penn West’s produc-

tion superintendent for

southeast Saskatchewan,

Manitoba and North

Dakoka, said of the super

single rig, “Th ey are very

effi cient to move. Th e top

drive makes them more

effi cient while drilling.”

Th ey also have fea-

tures that improve safety.

Th ere is no monkeyboard

that the derrickhand has

to work on. Hydraulic

equipment does nearly

all of the pipe handling.

He noted the

Waskada wells are rela-

tively shallow, at 900

metres into the Amarath

formation.

“We’re drilling right

in the middle of it. You

get two wells here for al-

most the price of one at

Estevan,” Luedtke said,

primarily due to depth.

With a large number

of existing vertical wells,

there is an opportunity

to convert some of those

into horizontals. In-

deed, three have already

been re-entered and had

horizontal legs drilled,

according to Don Van

De Sype, who heads up

completions in the area

for Penn West. “We’re in

the frac mode with them

now,” he said.

Th eir completion

strategy is to use a packer

system with an abrasive

jet-cutting tool, he said.

B.J. Services has been

handling the company’s

hydraulic fracturing.

“We usually book in

eight to 10 fracs,” Van

de Sype said. Th at results

in about 22 to 25 people

with 12 hour shifts.

A week after the

ministerial visit, several

frac operations could be

seen in various stages

at Penn West locations

west of Waskada. Each

had numerous horizontal

frac tanks neatly aligned,

supplied by Spearing

Service L.P. of Oxbow.

Spearing is currently

building a location just

south of the community.

Van De Sype said

he prefers the wheeled,

horizontal form of tank.

“I’ve got 43 here,” he

said.

Th ey are cost ef-

fective for moving, and

more portable, he ex-

plained.

“We’re hauling any-

where from 800 to 1,000

cubic metres of water per

well,” he said. Th at water

is coming from the town

on a temporary basis.

Th ey plan to use pro-

duced water soon.

“A lot of farmers

want to sell their water,”

he added.

“Th e town is good

with us, we’re good with

the town,” he said.

Th e company has

trailers set up in the

northwest corner of

town for staff .

Production expected to rise 9 fold in two years

Kelvin Luedtke, production superintendent for Penn West Energy Trust for southeast Saskatchewan, Manitoba and North Dakota, talks to Twila Jolly during a rig tour. Jolly does the paperwork for the Manitoba Petroleum Branch in Waskada.

Manitoba Minister of Innovation, Energy and Mines Dave Chomiak, left, is shown Penn West’s new battery, under construction, south of Waskada.

PIPELINE NEWS November 2010 C3

From AboveFrom AboveWaskada, Man. – Fast Trucking of Card-nuff had its helicopter in the Waskada area on Oct. 6. The company was kind enough to provide Pipeline News editor Brian Zinchuk, Waskada Mayor Gary Williams, and Manitoba Petroleum Branch adminis-trative secretary Twila Jolly for an airborne tour of some of the action happening around the southern Manitoba boomtown. Photos by Brian Zinchuk

Fast Trucking of Carnduff now has a Robinson

R44 Raven II helicopter, seen

here at Waskada.

Left: Ensign Big Sky Drilling Rig 37 could be found northeast of Waska-da.

Right: A very small com-munity, Waskada is now in the middle of a boom. You can see evidence of its previous boom in the ’80s, with a blue pump-jack on the right side of the park. On the top left corner, wellsite trailers provide lodging for Penn West workers. The little blips in the elds to the north are pumpjacks.

BJ Services conducts a fracking operation on a Penn West well west of Waskada. The blue horizontal frac tanks, supplied by Spearing Service L.P., have become popular in the area.

EOG Resource’s pipeline project is in the pro-cess of lowering in and back ll as seen here. If you look closely, you can see both the eight-inch oil pipeline, and a four-inch local gas pipeline in the ditch.

C4 PIPELINE NEWS November 2010

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Waskada, Man. – It’s

not every day that a heli-

copter lands in the clear-

ing across the street from

his store, but Waskada

Mayor Gary Williams

saw just that on Oct. 6.

Fast Trucking was

working in the area, and

management had taken

the company helicopter

from their base in Car-

nduff earlier that day.

Th ey were kind enough

to give the mayor, an

offi cial with the Mani-

toba Petroleum Branch,

and Pipeline News a ride

around the community

in the chopper.

“Th ere’s something

you won’t see everyday,”

Williams said, pointing

to the helicopter.

Th ings are looking

up for Williams and his

town, in this case, quite

literally.

On that fl ight, Wil-

liams had a chance to

over fl y two drilling rigs

and several frac opera-

tions going on within

just a few kilometres

of the small village of

about 200 souls. A pipe-

line right-of-way run-

ning along the east side

and off to the northwest

buzzed with activity.

“It’s an exciting

time,” Williams said ear-

lier that morning.

He recounted hav-

ing lunch with a friend

at the local restaurant.

Th e friend asked if Wil-

liams knew the man sit-

ting by himself at a table.

It turned out, the mayor

didn’t know any of the

customers.

“I looked around. I

never say anyone here

before. Th at’s not some-

thing I’m used to.

“Th ere aren’t many

empty houses in town,

and some of them, we

don’t know how many

people are in them,” he

said. “Anything that goes

on the market is being

snapped up.”

Housing prices are

much stronger, he said.

Th ings have been turn-

ing around for the past

fi ve years, with a trend

of people moving out of

the city.

Th e last year, howev-

er, is when some serious

fuel has been added to

the fi re. “Of all reports,

it’s going to become

more active,” he said.

EOG Resources is

currently building an

eight-inch pipeline to

Enbridge’s terminal in

Cromer, Man. Th at will

complement the exist-

ing Penn West Energy

Trust six-inch line that

will be upgraded from

7,500 bpd to 15,000

bpd, and eventually

23,000 bpd.

“Th is pipeline will

remove a bottleneck for

production,” Williams

said of EOG’s new

line.

“It’s challenging for

a small village coun-

cil to address this and

meet the needs of the

people,” Williams said.

He spoke of devel-

oping infrastructure –

water, sewer and roads

– to handle develop-

ment.

He is looking to

when production levels

out. “People will hope-

fully raise their families

here,” he said.

Page C5

Riding the new wave of drilling

His store is an eclectic assortment. In one corner you can buy gifts, another a notepad, with insur-ance in the third corner and a bottle to keep you happy in the fourth. Waskada Mayor Gary Williams is seeing his town boom following a rebirth of the local oil patch due to new drilling and completion technologies.

PIPELINE NEWS November 2010 C5

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Page C4Indeed, like many town in rural Canada, Waska-

da has struggled. Th ere was an oil boom in the early

1980s, but that petered out substantially, and much

of the added economic activity dried up. Th e rail line

was pulled out about a decade ago. Th e restaurant had

closed for several years, until a local couple decided to

purchase it and re-open it.

Williams pointed out the K-12 school, the small-

est of its type in Manitoba, wasn’t always a foregone

conclusion. Th e community coughed up extra funds

to add 0.5 of a position, so that they could retain one

more staff member. However, enrolment is up 15 per

cent for the school that had 75 kids last year.

Th e oil industry is why they still have a school,

he said.

Two oil patch safety companies that are providing

mobile treatment units in the area have come forward

and off ered their services to assist in case of medi-

cal emergencies until the regular ambulance arrives.

Williams said that came into play during the previous

week, with a collision near the community. Th ere’s a

huge reduction in response time as a result, he said.

Bob Radcliff e, a councillor for the RM of Brenda

that surrounds Waskada, walked into Williams’ store,

Griffi th Agencies. It’s an eclectic place where you can

get your licence plates renewed, pick up a notepad, a

gift, and a bottle of whisky.

“It’s exciting. Everything is going full bore,” Rad-

cliff e said.

At one point he counted 88 vehicles going past a

point near the town in 45 minutes. Th at’s easily a 10-

fold increase from last year, he added.

“You should have been here at quarter to seven,”

he said.

In addition to the drilling going on in the area,

Spearing Service is building a new shop south of

town. PTI Group doubled the size of its camp, estab-

lished last spring, to 200 beds. Th e camp is now as big

as the village.

Campers can be seen near the edge of the south

side park, and wellsite trailers occupy the northwest

corner of town.

Radcliff e had seen the boom of the ’80s, but said,

“Now it’s on a large scale. Th ey’re spending a fair bit.”

He has heard 10 new operators are going to be

needed in the area, and that there is an extreme hous-

ing shortage.

Another man, this one in fi re-retardant coveralls,

walked into the store.

“Th at fellow worked here in the fi rst boom, went

to Alberta, and is now back as a consultant,” Radcliff e

said.

In the Waskada area, as is common throughout

Manitoba, there is a high percentage of freehold min-

eral rights. Williams pointed out that quite often,

those rights are not held by the current owners of the

land, however, and may have been passed down within

families and spread out to descendents.

Williams said, “We have a pretty vibrant ag econ-

omy. Th e farmland here is as good as any. A little on

the dry side, famers have generally done well here.”

A hemp processing plant is under construction

on the south side of town.

Th e former rail land in the centre of Waskada is

now open for development. A camp company had ex-

pressed interest in it, but Williams noted a preference

for more permanent buildings.

“We’re trying to steer this ship through waters

that are pretty uncharted. In 10 years, if we can grow

our population by 25 per cent, and maintain a store,

post offi ce, hotel and credit union, we will have done

as well as we can.”

Second boom revives once- agging villageBob Radcliffe, a councillor the Manitoba RM of Brenda, has been counting vehicles due to the in ux of oil business in the area. In one place, the traf c is 10 times what it was a year ago. The RM of Brenda surrounds the village of Waskada.

C6 PIPELINE NEWS November 2010

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Manitoba, Saskatchewan, AlbertaManitoba, Saskatchewan, Alberta

Story and photos by Brian ZinchukWaskada, Man. – Dave

Chomiak was on a mis-

sion in late September,

visiting Manitoba’s two

most prominent oil plays.

On Sept. 28, he, along

with several of his minis-

terial staff , visited the hot

Waskada area.

Chomiak is Mani-

toba’s minister of Innova-

tion, Energy and Mines.

While having a lunch

at the PTI Waskada

Lodge camp set up this

past March just north of

the community, Chomiak

told Pipeline News it was

his fi rst “mission like this

in this part of the coun-

try.”

“Yesterday, we spent

the day with Tundra at

the Sinclair fi eld,” he said.

Tundra Oil and Gas is the

largest oil producer in the

province, with signifi cant

operations near Sinclair,

Man. While there, he vis-

ited the company’s carbon

dioxide fl ood pilot project.

“We still see poten-

tial,” he said of it.

At Waskada, the min-

ister saw construction

of EOG Resources’ new

pipeline from Waskada

to Cromer, Man., where it

joins with the Enbridge

mainline system.

He discussed their

operation and plans

for the future. “Th ey’re

pretty bullish,” Chomiak

said of EOG.

“It is amazing.

Th ere’s a lot of things

going on in Manitoba

nobody knows anything

about,” he said.

In the afternoon,

Chomiak was taken to

Precision Drilling’s Rig

205, a super single doing

a fi ve-well pad for Penn

West Energy Trust. Be-

fore heading out, he and

the ministry staff were

given a brief safety ori-

entation at the local

town hall. Th ey were told

of Penn West’s fi ve-fold

expansion in production

in the past 12 months, and

plans to go up by almost

another order of magni-

tude over the next two

years, to 23,000 bpd pro-

duction.

“By March, we’ll

match our production here

to the whole Williston Ba-

sin,” Tim Buchanan, Penn

West’s local production

foreman, told the minister

later in the day.

At the rig they were

shown how the rig uses a

hydraulic arm to handle

pipe. Th ey were also shown

how the rig utilized a me-

chanical connection device,

known as “power wrench,”

a form of iron roughneck.

Later they were taken into

the geologist’s shack and

shown drill cuttings.

After a quick stop

at some completed well

sites, they next visited the

Penn West battery that is

under construction. Phoe-

nix Industrial, the com-

pany working on the site,

stressed the importance of

having a local workforce

with the proper oilfi eld

training, including items

like fi rst aid and H2SAlive,

and their diffi culties in fi nd-

ing people with those quali-

fi cations. Th ey were also

being challenged by strain

with local utilities, particu-

larly for hydro and telecom-

munications. Page C7

Manitoba minister tours Waskada area

Stan Keyowski, right, of Penn West, describes the operation of the Precision Drilling super single rig to Manitoba Minister of Innovation, Energy and Mines Dave Chomiak on Sept. 28.

PIPELINE NEWS November 2010 C7

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Workforce and infrastructure needs highlighted

Manitoba Minister of Innovation, Energy and Mines Dave Chomiak, second from left, is shown a graphic representation of the well being drilled by Penn West just west of Waskada on Sept. 28. On the left is Twila Jolly, who works in the ministry’s of ce in Waskada. Stan Keyowski, right, of Penn West, offers an explanation.

Page C6On the plus side,

the minister heard they

were being welcomed by

the community and local

service providers were

being very accommodat-

ing.

“You know where

my 19-year-old is going

now,” the minister joked,

implying he was going

to send him to Waskada

to fi nd work.

“When I come

out here and see all the

pumps going, it’s mind-

boggling,” Chomiak

said.

Penn West gathered

much of its local work-

force to meet with the

minister at the hall at

the end of the day. “Th is

oil patch is a little jewel.

Th ere’s real energy in it,

no pun intended.”

Several things were

pointed out to the min-

ister in terms of infra-

structure needs. Cell-

phone coverage was top

of the list. Nearly every-

one Pipeline News spoke

to brought up the poor

cell phone coverage.

Many people use boost-

ers in their trucks, but

that is useless outside of

the truck. Lack of cell

coverage is a safety con-

cern as well.

Indeed, a voicemail

and text message Pipeline News left for a ministry

offi cial at 10 a.m. was

not received by that per-

son until several hours

later. Th e message was

both sent and received

on Blackberry devices.

Line locates were

another issue. Th e bat-

tery builders noted it can

take several weeks to get

a line located, as opposed

to 48 hours in Saskatch-

ewan or Alberta, a sig-

nifi cant issue when do-

ing construction work.

As well, hydro in-

stallation and capacity

were brought up.

Chomiak acknowl-

edged the issues and he

would be bringing them

up in the future. “Th ey’ll

get the hydro,” he said.

Assistant Deputy

Minister John Fox said

they are looking into

having well licences ad-

dressed in a timely man-

ner, and were looking at

additional staff for ap-

provals and inspection.

He noted next year will

likely be as busy as this

year or even busier.

Troy Phillips, a fi eld

operator with Penn

West, told the minister

he had spoken to some-

one from Portage la

Prairie who had no idea

of what was going on in

the area. He personally

had started with Penn

West in March, after

two years with Tundra.

“Like every trip, I

learned a lot. Until you’re

on the ground, you don’t

have any comprehension

of how dynamic the fi eld

is,” Chomiak told Pipe-line News at the end of

the day.

“Just about every-

thing is happening in

Manitoba, but we don’t

talk about it. We don’t

boom, and we don’t bust.

Because our economy is

diversifi ed, we just chug

along.”

Chomiak pointed

out aerospace, hydro,

and a new mine near

Flin Flon as some areas

of growth in Manitoba.

C8 PIPELINE NEWS November 2010

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By Brian Zinchuk

Waskada, Man. – When Keith and Margie Han-

nah bought the Waskada Genesis Inn three years

ago, it had been closed for several years. Th e fi rst year

and a half were tough, and the next year and a half

have been extremely busy. Now, they’re hoping some

younger people will come along and take over the

business.

Th e Genesis Inn is a diff erent sort of building.

At one end, the local credit union has its branch. At

the other end are four hotel rooms. In the middle is

a restaurant and bar.

Margie was a teacher long before she became a

restaurant and hotel owner. “I taught in a one room

country school, then a two-room school.”

However, a family meant an end to her teach-

ing career. “Back then, there was no such thing as

maturnity. leave, and

there were oodles of

teachers.”

“We farmed. We

have a century farm on

the edge of Waskada,” said Keith, who has lived

there his whole life.

Th ey rented the farm out two years ago and start-

ed another company called Farm Genesis, owned by

32 farmers. It’s an initiative to process hemp into a

variety of products. Th eir food processing plant is

being built on the south side of town. It will handle

eight diff erent products, including protein powder,

hemp milk, toasted hemp seed, hulled seed and en-

ergy bars. Th ey hope to be in operation by the spring,

after having started construction last April.

Indeed, Keith was speaking to processing hard-

ware suppliers just before meeting with Pipeline News. Page C9

Keith and Margie Hannah have retired from farming, and would like to retire from the hotel and res-taurant business. Their restaurant, the only one within the village of Waskada, Man., is a hopping place these days due to the in ux of people and the local oil boom.

Business is great. Can we retire now?

PIPELINE NEWS November 2010 C9

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This hemp processing plant should be completed by spring time. Keith Hannah has been one of the prime promoters of the business, which should employ 20 people once in full operation. Finding that many work-ers in a village stretched for labour is another story.

Page C8Th e company has spent the last two and a half years developing a market.

Initially it looked into biodiesel. “We found out it wasn’t going to work,” Keith

said.

“We will employ around 20 people,” Keith said with confi dence. Th at’s a tall

order in a community of 200 when all the other business people talk of extreme

labour pressures. Yet Keith is a very strong booster of the community, noting it’s

crime-free, and has a school you can get a Grade 12 education in. “We’re sitting

in a great location – 90 miles from Brandon, Minot; 200 miles from Winnipeg

and Regina.”

Margie, head of the local chamber of commerce, piped up regarding chil-

dren, “Th is is the place to raise them.”

“We’ve got to have a positive attitude, or we’re going nowhere,” Keith

stressed.

Indeed, it was this spirit of civic pride that inspired the couple to buy the

defunct restaurant and hotel three years ago.

“We bought this place. It was closed for two years. Th e town was dying,”

Margie said.

Smorgs, smorgs and more smorgsNow their restaurant is the only place to eat in the small village, excluding

the new camp several miles north of town. “She’s a busy spot here,” said Keith.

Th ings are so busy now, smorgasbords are the order of the day in the restau-

rant until further notice. Th ey simply can’t get the staff to handle individual or-

ders for all customers right now. It’s hard to compete against oil patch salaries.

An eff ort to bring in three Filipino workers was fl ummoxed at the airport.

“We had three Filipinos waiting at the airport in Manila to come. Th e pro-

vincial government okayed it, the federal government turned it down,” Keith

explained.

Th at was a $2,500 expense down the tubes. Due to the housing shortage,

the Hannahs, like other business people in Waskada, have a house in town for

workers.

Margie is putting in long hours in the restaurant, so long that she said, “I

haven’t been in my house for three years. I want to spend time with my grand-

children and elderly mother.”

“We’ve got it so it’s a good business. We’d like to see younger people take it

over,” Keith said.

“[Before,] we wished people would come in. Now we’re very busy,” Margie

added.

In the early days, they had to try special meals like seniors’ meals or smorgs,

or a band, something to pay the bills, to keep things going. Th e whole commu-

nity would come on those special days. Unfortunately, you can’t have a special

day every day.

Oil has been the saving grace.

“Th is place lost money for the fi rst 18 months we were here, until the oil

activity got going,” Margie said. “Our local people have treated us wonderfully.

Restaurant going strong

Th e oil people have been great to work with.

“Th e bar scene is picking up. If we promoted it, it would be tremendously

busy. Th ey guys wanted a karaoke, but we don’t have the staff to do it.”

C10 PIPELINE NEWS November 2010

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Onion Lake – On-

ion Lake Enterprises

has been cleaning up

in more ways than one

during the Lloydmin-

ster Husky maintenance

turnaround that is under

the administrative eye of

Sylvia Carter.

Carter is the gen-

eral manager of Onion

Lake Enterprises, the

company that has the

janitorial contract for

Husky Energy facilities

in Lloydminster and the

Northern Blizzard offi ce

formerly occupied by

Nexen Inc.

Onion Lake Enter-

prises bids on the con-

tract every three years

and that includes all

turnaround work.

Th e 2010 Husky

turnaround, expected

to be over by the end

of October, has swelled

the ranks of Carter’s

janitorial troops from

43 regulars to an army

of approximately 160

workers, mostly all from

the Onion Lake Cree

Nation.

Th e expanded crews

work two 10-hours

shifts throughout the

turnaround and revert to

an eight-hour afternoon

shift with the regular

workforce when the

turnaround ends.

“We go through all

of the offi ce buildings

and all of the plants,”

said Carter. “It’s a daily

task.

“Right now, we have

the major turnaround,

and we are cleaning

maybe 160 work trailers.

It’s detailed work.”

Workers travel to

the job site on an On-

ion Lake shuttle van or

arrange their own trans-

portation.

“We have crews

working seven days a

week and nights right

through the turnaround.

“Th e turnaround is

supposed to last until

the 15th of October, but

I don’t know – with the

rain and all that, it kind

of puts it back,” Carter

said during an interview

on Oct. 5.

Th ere is no extra

money during the turn-

around for Carter as a

salaried employee, but as

a safety co-ordinator she

feels a need to be onsite.

“I also make sure

everybody is there and

trained,” said Carter.

“Workers have to

have H2S awareness,

WHMIS – whatever the

requirements are,” she

said.

“It’s kind of a high

risk place that we work

in at so we have to make

sure employees are aware

especially with H2S. We

all wear H2S monitors at

the plant.

“Our workers are

covered by the WCB. So

far, it’s been pretty good

as far as keeping our

workers safe.

“Safety is a big pri-

ority. I am in the offi ce

doing my paper work in

the morning and the rest

of the afternoon I spend

with my staff . I try to

make myself visible at all

the sites.

“Right now, I have

been really been focus-

ing on the turnaround,

so I spend a lot of time

there,” said Carter.

Page C11

Onion Lake janitorial service

Sylvia Carter, GM of Onion Lake Enterprises, and assistant manager Sylvia Pahtayken, take a break on sunny October morning outside the business development corporation of ce.

PIPELINE NEWS November 2010 C11

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booms during Husky turnaround

Page C10

Carter’s assis-

tant manager Sylvia

Pahtayken holds the fort

in Onion Lake during

her absence.

“You have to be out

there and work as if

the company were your

own,” said Carter. “Th at’s

why it’s a success, be-

cause I care about what

happens to Onion Lake

Enterprises.

“Husky is a very im-

portant contract and I

will do anything to keep

it. When the turnaround

is over, we go back to our

regular contract.

Th e deal calls for

Onion Lake Enter-

prises to provide its own

cleaning materials while

Husky provides all of

the paper products such

as toilet paper and hand

towels.

“We have scrubbing

machines and buff ers,

and all of our cleaning

supplies are environ-

mentally friendly,” said

Carter.

“We don’t use harsh

chemicals. We think

about our people, who

we work for, and en-

sure employees are not

inhaling chemicals. We

try and think safety and

provide environmentally

friendly work.”

During the last fi ve

years as a general man-

ager, Carter has helped

the company to land

new janitorial contacts

at Onion Lake with a

couple of schools, the

building development

corporation building,

the band offi ce and the

community maintenance

building.

“Since I came on,

we have extended our

contracts to our own

community which was

not there before,” said

Carter.

“Th ere is a lot of

work in the community.

We still have a lot more

to get. Th ere are about

fi ve more buildings we

would like to get.

“I do try and get

other contracts. We take

contracts for clean-up

jobs – like we did the

Frog Lake band offi ce.

We did the initial clean-

up. We do big contracts

to make it worthwhile

for our time.”

Carter describes her

job roles as hiring, fi ring,

co-ordinating, staff in-

voicing and controlling

spending.

“It’s steady work and

we are always needing

workers,” she said. “It’s a

hard job to fi ll – janito-

rial. People get tired of

it because all they do is

clean.

“I have a high turn-

over of staff . Sometimes

transportation is a big

problem for some work-

ers and some have prob-

lems supporting their

families with sitters.”

Carter’s own work-

load just got deeper as all

business managers at the

BDC offi ce have a new

mandate to fi nd other

business opportunities

and create employment

for band members.

“So my task – I

will be renovating one

of the local restaurants

Kihteyak (Elders) here

at the Makaoo Mall,”

said Carter.

“Th at is one of my

tasks to get that restau-

rant going. It’s going

right now, but I have to

renovate it and bring in

new management and

new staff and make it

better. We will be hav-

ing a grand opening No-

vember 1.”

Sylvia Carter holds an H2S monitor that she and her janitorial staff wear for safety while cleaning at Husky facilities.

C12 PIPELINE NEWS November 2010

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“We’ve got two projects on the go: a 100 well

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to Kelly Gillam, owner and president of Pipeworx

Ltd., the contractor doing the work for EOG Re-

sources.

Pipeworx is based in Acheson, Alta, west of

Edmonton. Th e company came about through the

merger of Gillam Pipelines and Horseman Energy

Services, two players of approximately equal size.

Pipeworx then purchased Wolf Projects in 2008.

As of Oct. 4, the company had about 70 people

working on the projects, with subcontractors bring-

ing the total between 75 and 80. All were staying

locally in the area, but the company was not making

use of the camp north of town, he noted.

“It’s more economic to stay in town,” he said.

At that time, the company was ditching and

lowering-in the pipeline. Additional crew were dis-

patched to assist the right of way and lowering-in

crews and get the pipe in the ground.

“We want to get it in before freeze-up,” Kel-

lam said. “We want to beef up the right-of-way and

lowering-in. Stringing, bending and welding make

good time.”

Four excavators and a wheel ditcher were added

just a few days before.

“We’ve been battling rain all year, everywhere,

actually,” he said, noting that wet weather had been

an issue on their Alberta projects as well.

Th e company has been active in Saskatchewan

in the past, but not at the present time. Gillam said

they have done a lot of work for PetroBakken and

Crescent Point in the past, and had just submitted a

bid for another project.

“We’re currently running 14 spreads. We have

400 people going right now,” according to Gillam,

who said they do a lot of work in northeastern Brit-

ish Columbia, in addition to current work in Alberta

and Manitoba.

Some of their major clients include Talisman,

Conoco, Cenovus, Encana and EOG Resources.

Page 13

Pipeline contractor running at 130 per centPipeline contractor running at 130 per cent

Pipe is strung out for a eight-inch oil pipeline near an EOG Resources battery, northeast of Waska-da. A short four-inch gas pipeline is also under construction.

PIPELINE NEWS November 2010 C13

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Page C12 With depressed natural gas prices, “in the tank,” as Gillam put it,

it’s odd that they should be so busy on gas projects.

“I can’t explain why we’re so busy right now,” he said. A lot of that work is on gas

projects in the Horn River and Montney plays of British Columbia. “We own 65

pieces of heavy equipment. We probably have another 30 rented now.”.

Th at’s running about 130 per cent of their usual capacity, he added.

Th at rented equipment includes iron from North Battleford-based Spence Equip-

ment and Regina-based Kramer Ltd.

In early October, they were in the clean-up phase of 24 km of 18-inch pipe, an

oddball size, he said. Usually pipelines jump from 16 inches to 20 inches, and it’s quite

rare to have an in-between size.

“We specialize in anything from two-inch to 16-inch," he said.

Pipeworx welds two pipelines, a large oil line, and a gas line, south of an EOG Resources Battery near Waskada, Man.

Stretching out capacityStretching out capacity

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Waskada, Man. –

PTI Group Inc. opened

its Waskada Lodge, 10

km north of the com-

munity, in March with

two dorms. In Septem-

ber, it doubled its ca-

pacity, adding another

two dorms, bringing its

capacity to 200 people.

“It is a 200-man

camp today. Pretty

soon, we’ll be full.

We’ve got 130 clients

now,” said, Laurelie

McMahon, camp man-

ager.

McMahon lives in

Edmonton, but used to

live in Winnipeg. She’s

been with PTI for six

years, having worked

at the Kinosis and An-

zac open camps near

Fort McMurray prior

to being the inaugural

manager for Waskada

Lodge.

“It ’s going great.

PTI is a great com-

pany to work for,” she

noted.

At first, business

was slow, but it got

steady. There was a rush

to add the additional

dorms, which had ini-

tially been planned for

the winter.

“We would be jam-

packed, if it wasn’t for

the weather,” she said.

To add impact to

her claim, outside the

kitchen, a man who

sells matting was work-

ing on his diesel truck,

absolutely coated in

mud. A large puddle

was present on site

nearby.

The clients are

primarily “pipeliners

and riggers,” she said,

including drilling and

service rigs, frac crews

and the like. “Anything

to do with the rigs,

they’re here.”

The camp is an

“open camp.” McMa-

hon explained, “An

open camp is like a ho-

tel. If you come in off

the street, you can stay

for the night. You pay

all at once, not sepa-

rately at the restau-

rant.”

Indeed, anyone can

come in for a meal,

which is a flat rate.

“We will not refuse

anyone for a meal,” she

said.

It ’s best to call in

ahead if you’re coming

in, but they take people

on the spur of the mo-

ment, too. The locals

have taken advantage

of this, particularly at

supper time.

“We give tours if

you want to see what

the camp is like.”

PTI Waskada Lodge doubles in size

The camp staff at PTI Group Inc.’s Waskada Lodge are, from left: Weyme Teeter, Lee Bridge, Nasir Ali, Mark Lura, Laurelie McMa-hon, and Daryl Schien-bein.Photo by Brian Zinchuk

PIPELINE NEWS November 2010 C15

BERT BAXTER TRANSPORT LTD.

301 Kensington Ave.301 Kensington Ave.Estevan, SK.Estevan, SK.

Phone: (306) 634-3616(306) 634-3616

3902 - 75th Ave.3902 - 75th Ave.Leduc, AB.Leduc, AB.

Phone: (888) 835-0541(888) 835-0541

www.bbaxtertransport.ca

KENDALL'S AUTO ELECTRIC LTD.1020 6th Street, Estevan • 634-2312

Open 6 days a week 6 am - 6 pm, Mon. - Sat.

Start your vehicle - from anywhere,with your Blackberry!

• Oilfield Graveling

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TOLL FREE 1-888-532-5526Creelman, Sask.

Larry AllanCell: (306) 421-9295

Shop: 433-2059; Fax: 433-2069

Waskada, Man. – Jolly Construction is a long-established family earthmov-

ing business that has been operating out of Waskada, Man. for decades. Now

in the middle of a strong local oil boom, the company is in high demand for its

services.

Sterling Jolly runs the business with his sister, Sherry Louttit. Th e patriarch

of the family, Jack Jolly, passed away this past summer. Th e earthmoving compa-

ny was started in 1946. Jolly’s wife, Twila, works as the administrative person in

the two-person Manitoba Petroleum Branch offi ce on Waskada’s main street.

Sterling Jolly is extremely busy these days. Pipeline News collared him for an

interview during a quick lunch before he had to head out on a backhoe for the

afternoon.

Th is past year has been very busy, according to Jolly. “Th at sums it up. Very,

very busy.

“We’ve increased our size, added a few more dozers, hoes and employees.

We’ve gotten quite a bit bigger.”

Lease construction is a major component of Jolly Construction’s operation.

Th ey also do earthmoving and gravel hauling. Jolly notes that they just can’t keep

up with the demand.

Th ere are a few other contractors in the area, too. “Th ey’ve all been very

obliging. I’ve had hundreds of calls I’ve had to turn away because I had no more

men or equipment.

“We always just worked in our area. I was comfortably busy. Today, with all

the work, the costs are higher, you’ve got more men, and are paying more for

fuel.”

Jolly is community focused.

“I like to keep as much of my business local as I can,” he said.

“At this point, I’m just going to hold my own, but there is a possibility I will

be getting bigger again,” he said, adding, “it’s tough to get workers. We advertise

all over. I’ve got people working for me from all over.”

In other industries, it’s enough for a company to off er someone a job. But

Jolly has found, as have a lot of contractors in southeast Saskatchewan, you have

to provide housing as well if you need workers. “I’ve got some in a house in town.

Th e rest are driving the distance.”

Th ey have put some in the camp north of town.

Th e camp, established in the spring of 2010, has been benefi cial. “It’s helped

us out. It’s taken the worry out if we do fi nd workers.”

In addition to the extra iron added this year, the company has also picked

up a new technology, a frost cutter. “Th at’s been good for us,” he said, noting he’s

considering adding a second. Th e deciding factor, he said, “is that thing called

money.”

You’ll fi nd Jolly out there, pulling levers himself quite often. “Every day and

most nights,” he said. “If someone doesn’t show up, I’m the man that will fi ll the

seat.”

Asked if he was concerned over a boom and bust cycle, he responded, “I

never look at it that way. We’ve been through two booms. We’ve always made it

work.”

Jolly added he is trying not to overextend himself, something many of the

operators have cautioned him about. Oil could drop, he noted.

“If you worry about too much stuff , it’ll put you in

the hospital,” he said. “It could be here three to 10 years,

but if the price of oil changes, that can all change.”

Earthmover in high demand

Sterling Jolly’s pretty busy these days, with high demand for Jolly Con-struction’s services.

C16 PIPELINE NEWS November 2010

Leading the industryin production

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Estevan: 634-7627HWY 39 West(#10 Lamoro St.)

Carlyle: 453-6494HWY 9 North

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Curly’s Picker Service Ltd.Curly’s Picker Service Ltd.Mark T. (Curly) Hirsch

1595 Dieppe Cres.Estevan, Sask.S4A 1W8

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Phone: (306) 634-7399 Fax: (306) 634-6989 E-Mail: [email protected] 58 Devonian Street Estevan, Saskatchewan PO Box 667 S4A 2A6

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Box 245South Railway Ave.WASKADA, MB R0M 2E0

Kenneth L. AustinOwnerPh: (204)673-2689Cell: (204)522-5151Home: (204)673-2512Fax: (204)673-2208

Waskada, Man. –

Virden, Man.-based

Safety Source has set

up a satellite operation

in Waskada, Man. It is

the third location, after

Redvers and the base of

Virden, that the com-

pany has established in

recent years.

Th e company is set-

ting up shop in an area

that has become a hot-

bed of drilling in Mani-

toba’s oilpatch. While

small compared to Sas-

katchewan or Alberta,

what’s happening in

Waskada is big news for

the province. In the next

couple of years, the area’s

production is expected

to match what the entire

province puts out today.

“We’ve set up an

agreement with CE

Franklin,” said Dale

Lewis, one of the own-

ers of Safety Source. “It

looked like a good fi t

for both of us. So far, it’s

been working out.”

Th ey began off ering

their product in Waska-

da in the latter half of

July, carrying a full line

of safety gear. Th at in-

cludes clothing, gloves

and gas monitors as a

partial list.

“Our plan is to hold

some training sessions

down there as well,”

Lewis said. Th ose cours-

es will include H2SAlive,

confi ned space, ground

disturbance, and stan-

dard fi rst aid. He said

they would try to service

the need as best as they

can.

Th at need is pro-

nounced. On Sept. 28,

the builders of a battery

for Penn West just south

of town told Manitoba’s

Minister of Innovation,

Energy and Mines Dave

Chomiak that they had

a hard time fi nding lo-

cal workers who had the

requisite safety train-

ing, and had a hard time

getting people to off er

training.

“Th e plan is to in-

crease our training pres-

ence there,” he said, not-

ing they need to get the

word out they are avail-

able for training.

Asked if they will

they plan to establish

their own stand-alone

store at Waskada, Lewis

responded that business

has been promising in

the few months they’ve

been there.

Safety Source sets up satellite

These are some of the safety products Safety Source is now offering at its satellite location in Waskada, Man.

SURFACE BIT RENTALQUALITY RERUN & RETIP

24 HR SERVICECELL: 306-421-3726RES: 306-634-7538

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PIPELINE NEWS November 2010 C17

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VPAT Dozers in Stock

White Bear First Nation – Annette Lonechild

has spent the last several years working on advancing

White Bear First Nation’s oil and gas development

opportunities. She is one of 12 members on the First

Nation’s band council, and works on a task team to

co-ordinate oil and gas initiatives.

Lonechild has been working on that front three

years.

Currently they are in the process of putting to-

gether a professional board for Wabimusqua Oil and

Gas Ltd., the First Nation’s new production com-

pany that is just getting off the ground as part of a

joint venture with a startup producer.

“Depoliticizing is very important to ensure long

term success,” she said.

Lonechild attended the Southern Alberta Insti-

tute of Technology in 1994, and has a certifi cate in

land administration.

“I did some training with the partners we had

at the time, but not directly with industry,” she ex-

plained.

“Prior to that, I was trained in the INAC (In-

dian and Northern Aff airs Canada) land manage-

ment program.”

Lonechild has been involved with dealing with

the First Nations Oil and Gas Moneys Management

Act, which according to INAC, is “an optional leg-

islation that allows a First Nation to opt out of the

moneys management provisions of the Indian Act

and provide for the release of capital and revenue

moneys under the management and control of the

First Nation.”

She took part in a meeting with the Indian Re-

source Council of Canada. “At the time, we managed

to convince the minister, through his special advis-

ers, it was important to have decision making at the

community. Prior to that, it had been with Indian

Oil and Gas Canada,” she said.

Lonechild stepped up to run for the band coun-

cil after her father retired. “My dad was a councillor

for 22 years,” she said.

“I believe in collective decision making. We have

a team. No one goes outside the collective plan,” she

Environmental consultant Doug Terry of MWH, left, professional archeologist Patrick Young, and White Bear Council Member Annette Lonechild discuss plans for archeological surveys of proposed drilling locations and pipeline rights-of-ways on Oct. 7. Terry and Young asked to be referred to el-ders they could work with to ensure protection of cultural sites.

Photo by Brian Zinchuk

Council member trained in land administration

said.

Noting the vigilance needed to keep things on

track with the new oil and gas company the First

Nation has set up, Lonechild said, “It’s important for

this initiative to succeed. In the long term, it’s im-

portant there be a business focus.”

C18 PIPELINE NEWS November 2010

Genset / Light TowersGas Powered Pumps

Telescoping Fork & Scissor LiftsBackhoe / Trenchers / Trailers

Temporary Power Cable

Oil eld, Industrial, CommercialPh:(306) 634-9888 ELECTRIC MOTOR DIV.

New/Used SalesComplete Rewinding & Repair

REPAIR SHOPTrash Pumps, Lights, Heaters,

Generators, Compressors, Converters

White Bear First Nation – Brent McArthur jokes

about fl ying under the radar. Indeed, only after two

hours talking with him does one realize he is act-

ing as director and president for Wabimusqua Oil

and Gas Limited, White Bear First Nation’s third

venture over the past 25 years into the oil and gas

exploration and production sector. He stresses he

prefers to be humble, and believes in collective de-

cision-making.

McArthur spent several years in White Bear’s

Petroleum Land Administration department, both

as a surface landman, and during the last three years,

as the manager. Now he’s working on getting Wabi-

musqua Oil and Gas Limited off the ground, with a

depoliticized board, and focused on development.

“I’ve been involved in the oil and gas sector in

various capacities since 1994,” McArthur said.

He used to be a production operator during his

fi rst fi ve years in the business. In 2000, he started

working for the First Nation’s petroleum land ad-

ministration. While with the nation’s Petroleum

Land Administration department he has taken part

in the co-management of the White Bear First Na-

tion’s resources alongside Indian Oil and Gas Cana-

da. He has been involved in First Nations oil and gas

regulatory and administrative change in that capac-

ity. In 2009 he became director of Wabimusqua Oil

and Gas Limited.

“I think the outlook is very optimistic in the cur-

rent times,” he said. “Our immediate area is consid-

ered to be underdeveloped. Is there room for growth?

Of course there is. I believe our opportunity is much

greater now than it was ten years ago.”

Fifteen years in oil and gas

Brent McArthur is heading up efforts to get White Bear First Nation back in the oil production game. However, he’s quite humble about that fact.

Resources Resources GuideGuide

PIPELINE NEWS November 2010 C19

TERRY DODDS(24 hrs.) (306) 634-7599

Cell. (306) 421-0316

“All Your Construction and Maintenance Needs”SPECIALIZING IN: ENGINES, PUMP UNITS, UNIT

INSPECTIONS, PIPE FITTING, TREATERS AND PRESSURE TICKET WELDING

Box 1605, Estevan, Sk. S4A 2L7Cell. (306) 421-3174, (306) 421-6410, (306) 421-2059

Fax: (306) 634-1273

M.E.T. OILFIELDCONST. LTD.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]

a l t u s g e o m a t i c s . c o m

Specializing in well site and pipeline surveys

Yorkton

306.783.4100

Weyburn

306.842.6060

Regina

800.667.3546

Swift Current

306.773.7733

Lloydminster

780.875.6130

Medicine Hat

403.528.4215

Edmonton

800.465.6233

Calgary

866.234.7599

Grande Prairie

780.532.6793

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

The teamBrent Gedak Welding held its grand opening of its new facility on Oct. 6. The shop was built on the west side of Estevan, in the RM of Estevan, and opened early this year. Skid packages are the company's main bread and butter product, but they offer more such as vessels, headers and pressure piping systems, mobile rig repairs, casing bowls, mobile airless painting, pipeline eld service, sandblasting and coating, insulated buildings and spray foam. From left: Brent Gedak, Janelle Gedak, Joanne Schulte, Dustin Tangjerd, Jarett Mosley, Jarred Dumain, Chris Grif n, Harold Karren, Britt Gedak and Bill Curtis. Two men in the back are Jayden Doan and Nathaniel Dumaine.

Photo by Norm Park, Estevan Mercury

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][email protected] • www.nov.com

3D MaintenanceCell numbers: 483-8024, 483-7024, 483-8148

Home: 486-2143 • Fax: 486-4855

Box 12 Frobisher, SK. S0C 0Y0

[email protected]

[email protected]

Aspen Custom Trailers

6017-84th Street S.E.

Calgary, AB T2C 4S1

[T] 403 236 2244[F] 403 236 8829[C] 403 813 6319[Toll Free] 877 236 2244

Lance Wotherspoon

Regional Sales Manager

General Oilfield Hauling

LECLAIRTRANSPORT

Lyle Leclair - Cell: 306-421-7060Larry - Cell: 306-421-7131

Calgary Carlyle403-264-8206 306-453-2533

www.millenniumdirectional.comHorizontal • Directional • Well Monitoring

CareerCareerOpportunities

Resources Resources GuideGuide

Resource Guide - continued

C20 PIPELINE NEWS November 2010

• Pressure Vessels• Well Testers• Frac Recovery• Wellbore Bleedoff• Ball Catchers• 400 bbl Tanks• Rig Matting

Dale (306) 861-3635 • Lee (306) 577-7042Lampman, Sask.

• Complete Trucking Services

Saskatchewan Owned & Operated

Bulk Agency

912 6th Street, Estevan

634-7275Toll Free: 1-866-457-3776MIDWESTMIDWEST

INDUSTRIAL SERVICESINDUSTRIAL SERVICES

• HYDROVAC & VACUUM TRUCKS• HOT OIL & PRESSURE SERVICE• SANDBLASTING & PAINTING WE DO IT ALL! IN SHOP OR MOBILE

• TANK & VESSEL, CLEANING AND LINING• 4WD DRYSTEAM AND

PRESSURE WASHING TRUCKFOR SERVICE YOU CAN DEPEND ON CALL 204-727-0555

Box 208 Estevan, SK S4A 2A3

461-8471 • 461-8472 • 461-8473

Call: Clinton Gibbons

Picker OperatorsWanted For Full Time Position

• Class B or A licence required• bene t package offered to quali ed applicants

• wages negotiable based on experience• Safety tickets an asset

Fax resumes to

306-634-2123

Fax resume to 634-6949 or email to:

[email protected]

Needed Immediately:• CAT Operators

Must have all required tickets related to positions. Must be experienced at building leases, lease cleanups and road building. Competitive salary negotiable with experience.

WantedWinch Truck Driver

Must have valid class 1A & H2S & First Aid Certi cates2 years experience

Send resumes to Connor Kirby Trucking Ltd.

Box 298Torquay, SK

S0C 2L0

CONNOR KIRBYTrucking Ltd.Trucking Ltd.

Boom TruckClass A Operator

Required

Must have Class 1A Licence and Safety Tickets. We offer a bene t plan & top wages.

Submit resume to:Box 730 H

Estevan, SK S4A 2A6or fax 306-634-3934

Brady Oilfield Services LP.

3A & 1A Drivers/Owner Operators/

Mechanics

Weyburn, Halbrite and surrounding area.Oil eld Safety Certi cates an asset but not

necessary. Bene ts package available.

Mail or Fax Resume and Drivers AbstractP.O. Box 271 Midale, Sask. S0C 1S0

Fax: (306) 458-2768

Transport Company in South Eastern Saskatchewan requires a Full time certi ed diesel mechanic.

• The eet of 20 trucks and trailers are involved in moving of uids, experience in uid pumping systems is an asset.• Must be able to work unsupervised and take directions from superiors.• Responsibilites include maintenance of a eet of 20 trucks, and trailers.• Record keeping of schedule maintenance, of each unit, and part installa-tion.• Competitive wages, depending on experience, Health plan.

Interested applicants can apply in person, e-mail, fax or phone cell: Forget, SK

Cell: 306-577-8553Fax: 306-457-2735E-mail:[email protected]

Fax resume to 634-6949 or email to:

[email protected]

Needed Immediately:• Picker Operators

Must have all required tickets related to positions. Must be experienced at building leases, lease cleanups and road building. Competitive salary negotiable with experience.

OIL / INDUSTRIAL / AGRICULTURAL / AUTOMOTIVE

352-7668

1404 SCARTH ST., REGINA, SASK.website. www.continentalengine.ca FAX 525-8222

[email protected]

TOLL FREE 1-877-778-7460WEEKDAYS

7:30 A.M. - 5:30 P.M.SATURDAYS9 A.M. - 1 P.M.

STOCKING ENGINE PARTS

Box 609 Bus: (306) 634-8084Carlyle, SK Cell: (306) 577-8833S0C 0R0 Fax: (306) 453-6478

Career Career OpportunitiesOpportunities

PIPELINE NEWS November 2010 C21

EMPLOYMENT OPPORTUNITY

for Tank Truck Operators

E-mail resumes to: [email protected]

or fax them to306-453-4404

5-1

Our People Make the Difference!

Do you want to work for a progressive company who takes safety seriously and who uses today’s newest technologically-advanced equipment? If your answer is “yes”, we are interested in talking to you!

We are currently seeking EXPERIENCED FIELD PROFESSIONALS (Weyburn Area)

Well Servicing Division (Class 3A or Class 1)

- Rig Managers - Drillers - Derrickhands - Floorhands

All applicants must have a valid driver’s license as well as all of the required industry training for the position they are applying for.

We offer higher than industry standard wages, an exceptional employee benefits package, several employee incentive programs and unlimited opportunity for advancement.

If you want to grow with a company where you are known by your name and not your employee number, please forward your resume to:

Box 427 405 – 19th Avenue

Weyburn, SK S4H 2K3 Phone: 306-842-4360

Fax: 306-842-4369 E-mail: [email protected]

Quality People Delivering Quality Service

Bulk Plant Personnel and Shop HandNitrogen OperatorsHeavy Duty MechanicsParts Person

Fax: (780) 872-5239

C22 PIPELINE NEWS November 2010

Growing Calgary based services industry company seeks a sales engineer with 5 to 10 years experience in PCP and top drive speci cation and sales.

The successful candidate will have experience with progressive cavity pumps and top drive sizing, selection, installation and troubleshooting.

Experience with VFD driven units and SCADA systems will be a de nite asset. Must be able to travel throughout Alberta, Saskatchewan and internationally.

Equal Opportunity Employer. M/F/D/V are encouraged to apply.

No phone calls from agencies or applicants.

We thank you for applying, only the most suited for the position will be contacted.

Please send resumes to: [email protected]

is an industry leader in Safety Services and is currently seeking

Safety Personnelto keep up with increasing customer demands.

If you are interested in becoming part of the TargetTeam and enjoying our growth with us, let us know!

Employment Opportunity

Please forward resume with copies of tickets to:

[email protected] or fax to780-870-5359

Permanent Full-TimePenta Completions requires a

Service Tech Traineefor our Estevan operation.

Duties Include• Field installation of berglass & steel rod strings

• Pump off controllers + VFD’s• Dynamometer data collection

• Shipping & Receiving• Inventory control

• Invoicing• Some on call work is required

Requirements• Valid Class 5 drivers licence

• Computer experience would be an asset• Successful candidate will earn applicable

safety tickets

Submit resume including references to:Penta Completions Supply & Services Ltd.

58 Devonian Street P.O. Box 667Estevan, Sk. S4A 2A6Fax: 1-306-634-6989

or Email: [email protected]

Motor Mechanic * Experience an asset but will train.

* Must have mechanical abilities. * Permanent full time position

* Competitive wages, full bene t package

Pump Unit Mechanics * Experience necessary

* Must be able to work with little or no supervision* First Aid, H2S, WHMIS & TDG certi cates an asset

* Valid driver’s license required* Competitive wages, full bene t package

Safety Co-ordinator * Duties include all aspects of preparing and

maintaining our safety program for all personnel & ensuring all employees have required safety classes.

Co-ordinator must schedule classes & truck maintenance, and keep complete records.

* Experience in the safety eld would be an asset.* Working hours are 7:00 am to 4:00 pm with some

overtime required.* Hank’s offers very competitive wages and

full bene t package.* Must be able to work with little or no supervision

- would report to key management.

Apply in person or

fax resume to 306 634-7090

Hank’s Maintenance & Service Co. Ltd.

410 Mississippian DriveEstevan, Sask. S4A 2H7No Phone Calls Please!

Flint is an industry leader in facility and pipeline con-struction and maintenance providing the highest level of safety and quality in the oil and gas sector. From more than 60 locations across North America, Flint’s 10,000 employees plan, fabricate, transport, build, and maintain customer projects from well tie-ins to the complete construction of major infrastructure projects.

We are currently seeking applicants for the following positions in Estevan: • Supervisors • Labourers • Heavy Equipment Operators • Labour Foremen • Pipe tters • Portable Welders • Apprentices (Pipe tting / Welding)

Flint offers a competitive and comprehensive pay and bene ts package.If you are interested in one of the above positions, please call Nick Steinke at 461-4148. All inquiries will

be kept con dential.

Energy Services

HEAVY-DUTY MECHANICFrontier Peterbilt Sales Ltd is looking for full-time Service Technicians in Estevan to work on the premier product in the industry and the newest dealership in the city. We have opportunities for Service Technicians, from 3rd year apprentices to Journeymen.

Skilled Journeyman Technicians will earn the top dealer-ship wage in Southern Saskatchewan ranging from $32.00 to $39.00 per hour.

We require people that are meticulous, results-driven and customer service oriented. We offer excellent pay as well as an extensive employee bene t package and the opportunity to progress within the Company.

Quali ed applicants are encouraged to apply in person at the dealership to Jerrod Tedford, Shop Foreman or by email or fax to:

Mark ThompsonHuman Resources Manager

E-Mail [email protected] 306-664-3386

www.savannaenergy.com

Search jobs and submit your resumeOnline at: http://savanna.appone.comEmail to: [email protected]

Savanna offers competitive rates and a comprehensive benefits package effective

on your first day of work.

SS a v a n n a

Are you looking for a great opportunity to join a rapidly growing, innovative energy services company? Do you want to join a team with room for personal and professional growth? Then look no further!

Savanna Energy Services Corp. is a premiere contract drilling and well servicing company operating in the oil and gas sector internationally and throughout Western Canada. Our goal is to demonstrate a values-based culture through our people, innovation and technology.

Join Savanna’s team and let our successes become yours!

We are looking for great team members to join our Drilling and Well Servicing divisions. Opportunities are available for the following positions: RIG MANAGERS, DRILLERS, DERRICK-HANDS, MOTORHANDS, FLOORHANDS & LEASEHANDS

PIPELINE NEWS November 2010 C23

Star® anhydride cured epoxy line pipe has the highest long term hydro-static strength of any FRP product on the market.

Call to discuss installertraining (API / ASME B31.3), new taper tools, and general design orinstallationquestions.

Fibreglass Solutions…. Because Rust Never Sleeps!

Red Thread® II (2”-24”) pipe and fittings can be used for produced water, salt water, hydrocarbon and H2S vapours. Other sizes & ratings are available in the Green Thread® product line.

Calgary Sales

Tel: (403) 801-2009 John Kohlman

Regina205 Hodsman Tel: (306) 525 8881

Justin MacMillan

Estevan294 Kensington Tel: (306) 636 2002

Tim Beatty

Please contact us for friendly service, fair pricing, and technical support & training that is beyond comparison!

www.frpsolutions.com

Authorized Distributor

STAR® • SMITH • FIBERCAST®

Woodstock Burlington Estevan Regina Calgary Edmonton

Field Service & QC

Tel: (403) 861 9801 Allen Routh

Edmonton 14505—130 Ave

Tel: (866) 243-2298 Jared MacKinnon

Tony White

Check out the new Model 2306 electric taper tool.

Get consistent tapers on 2”,3”,4”, & even 6”

Green Thread® &Red Thread® II

pipe in seconds!!!

Product data, support details, installation literature, anddesign software are all available for download at our website.

Make up lost time, and save money while doing it! Specify and install Red Thread® II and Star® Anhydride 8-rd line pipe

from an authorized NOV Fiber Glass Systems distributor. You’ll be glad you did.

Star® Fibreglass standard & API design high pressure anhydride cured epoxy line pipe, fittings, and flanges are on hand to meet the delivery requirements of any project, large or small.

C24 PIPELINE NEWS November 2010

Supplementing both the Drilling and Production sectors of the Oilfield Industry around the clock safely and efficiently. We specialize in transporting Salt Water,

Crude Oil, Completions, Contaminated Mud, & Fresh Water!

Office 1-306-453-4470Fax 1-306-453-4404Toll Free [email protected]

Donnie Lesage 1-306-577-9960Blaine Dahl 1-306-577-9801

Our Full Commercial Truck Wash & Service Centre is

NOW OPEN

Jason Waugh - Division Manager306-577-9900 (Carlyle)

Trevor Van Alstyne - Field Supervisor306-421-0344 (Estevan)

Ryan Toms - Field Supervisor306-452-8182 (Redvers)

Victor VanDresar - Warehouse Manager306-577-9934 (Carlyle)

“Serving The Oil and Gas Industry with 24 Hour Drilling Fluid Service”

Specializing inNon DamagingBiodegradableDrilling Fluids

Designed forHorizontal

Drilling

PO Box 32, Carlyle, Saskatchewan S0C 0R0Phone: (306) 453-4411 Fax: (306) 453-4404

E-Mail: [email protected]