pipeline news november 2012
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Pipeline News November 2012TRANSCRIPT
PIPELINE NEWSSaskatchewan’s Petroleum Monthly Canada Post Publication No. 40069240
November 2012 FREE Volume 5 Issue 6
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SECTION A3 Millennium S mula on to launch
4 McMillan visits Panther 4
6 Editorial
7 Opinion
9 Cenovus buys Oilsands Quest assets
10 Range One poised for growth
INSIDE
SECTION C1 Sun Country Well Servicing
3 Long Creek Railroad grand opening
6 40 years for John Kmita Ltd.
11 Keeping down me to a minimum
SECTION B1 Matrix o to phenomenal start
3 Birds challenge pipeliners
8 Arne & Burgess tackles Vantage Pipeline project
12 Steady growth for Rearden
22 Shi ing Gears: Key to business success
Stacey [email protected]
PIPELINE NEWSNEWSSaskatchewan’s Petroleum Monthly
Dec. 2012 FocusContact your Sales Rep
to be a part of the focus edition
SE Sask and SW Manitoba - for all of your advertising needs contact:Ph: 306.634.2654 Fax: 306.634.3934
Cindy BeaulieuSales Manager
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MADE IN CANADA
A2 PIPELINE NEWS November 2012
PIPELINE NEWS November 2012 A3
TOP NEWS
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Story and photoby Brian Zinchuk
Pipeline News
Estevan – Mike
Heier is at it again. Th e
founder of Trinidad
Drilling Ltd. is now
launching an Estevan-
based frac company.
Th e outfi t will be
known as Millennium
Stimulation Service.
I guess you would
call me the founder,”
Heier said while visiting
their new yard where a
shop is going up.
“I’m on the board
of directors, CEO and
president.”
CEO is a position
Heier knows well. He
was founder and CEO
of Trinidad, a company
that now has over 3,000
employees and more
than 135 drilling rigs.
He stepped back from
the chief executive posi-
tion fi ve years ago, but
remains chairman of the
board. Lyle Whitmarsh
took over as CEO in
January 2012.
Heier founded
Trinidad back in 1995.
He ran it privately until
2000, then took it into
a trust, and was one of
the fi rst to come out
of the trust corporate
structure.
Along the way, he
was chairman of Al-
terNRG, a company
that acquired a huge
coal deposit and sought
to use gasifi cation
technology to exploit it.
However, he noted, “Th e
markets were unwinding
in front of our faces.
“I would suggest the
next economically viable
energy forms would
come through gasifi -
cation of low-quality
organic material – coal,
biomass, municipal
waste – converted to
syngas and coverted to
fuel.”
Heier resigned from
AlterNRG’s board in
April this past year to
pursue Millennium. “I
still own a sizeable piece
of it.”
Heier’s also involved
with Smart Completion
Technologies, a small,
private oilfi eld services
company.
Originally a mill-
wright, Heier’s experi-
ence includes a seismic
company and running
an oil company.
As for the origins
of Millennium, Heier
said it was the people
behind Smart that got
him going.
“Within a year of
being on that board,
the guys asked me,
‘Hey Mike, would you
consider starting a frac
company?’”
Th at was May 2011.
He started doing
research that summer,
and spent the fall of
2011 putting together
the management team.
Heier sought out a team
of which the majority
had worked together
before.
“It’s a people
gig. It’s all about the
people,” he said. “Poor
quality assets with good
people will outperform.
Th is always has been,
always will be, a people
business.
“We work hard at
creating an almost cult-
ish environment within
the fence.”
One of the results is
a low turnover of staff .
Page A8
Mike Heier
BOARD OF DIRECTORS
The experience level of Millennium Stimulation Services is deep, to say the least. Here’s their bios, taken from Millennium’s website.
Paul Colborne - Chairman- President, StarValley Oil and Gas Ltd.- Founder, director & former CEO, Crescent Point Energy Ltd.- Chairman, Legacy Oil & Gas Inc.- Chairman, Surge Energy Inc. Michael Heier- Chairman and founder, Trinidad Drilling Ltd., one of the largest and most successful Canadian drillers currently operating over 140 drilling rigs and employing over 3,000 people in three countries. E. Craig Lothian- CEO & president, LEX Capital Management Inc.- CEO & president, Keystone Royalty Corp.- Director, PetroBakken Energy Ltd. Kevin Bennett- Independent Businessman- Former chairman, Crescent Point Energy Ltd.- Former director, Trinidad Drilling Ltd. Ken Strickland- Chief legal and business development offi cer, TransAlta Corporation- Director, Trinidad Drilling Ltd. Ron Dahl- CEO & president, Smart Completions Ltd.
Millennium Stimulation Service to launch in Estevan
A4 PIPELINE NEWS November 2012
BRIEFS
Briefs courtesy Nickle’s Daily Oil Bulletin
Close to 50 per cent of
the rig fl eet in Western Cana-
da was busy as of Oct. 17, Rig
Locator records show.
For much of the late sum-
mer and fall, the active utiliza-
tion rate has remained within
a tight band between 47 and
50 per cent. In September
2011, active utilization rates
approached 70 per cent dur-
ing most of the month.
At the nine-month mark,
the average utilization rate for
2012 stands at 48 per cent, off
from 54 per cent in the com-
parable period last year.
Saskatchewan's rig utili-
zation rate stood at 63 on Oct.
16. with 85 active rigs and 52
rigs down. Over the fi rst nine
months of the year, an average
of 68 rigs have been busy in
the province compared to 77
a year ago.
British Columbia's rig
utilization rate as of Oct. 17
of was 68 per cent – 34 rigs
at work out of the total fl eet
of 50. An average 38 rigs have
been active in the January-
September period versus 55 a
year ago.
In Alberta, 261 rigs were
busy on that day (45 per cent
utilization rate). To the end of
September, an average of 265
rigs have been working com-
pared to 293 a year ago.
Rig utilization in Mani-
toba ran at 69 per cent with
18 active rigs and eight racked
rigs. Th at 18 was a jump of
seven rigs from two weeks
earlier. To the end of Septem-
ber, an average of 12 rigs have
been busy compared to 10 in
the January-to-September
period of last year.
Th e most active driller
on Oct. 17 was Husky En-
ergy Inc., which had 28 rigs
at work.
Rig utilization rate remains stagnant
Story and photo by Brian ZinchukWeyburn – Although he worked on service rigs in his younger
days, Minister of Energy and Resources Tim McMillan hadn’t
stepped on a drilling rig until Oct. 5. He had his chance at Wey-
burn’s Panther Drilling on Oct. 4, where the company was put-
ting the fi nishing touches on its brand new Rig 4.
Driller and relief push Morgan Griffi n led a tour that in-
cluded McMillan, Weyburn MLA and Minister of Health
Dustin Duncan, and Estevan MLA Doreen Eagles, as well as
several shareholders in the company.
McMillan asked how long it takes to clompete. Bernie
Bjorndalen, salesman for Panther, responded that work had
started in February, but planning began prior to that.
In the generator room, Griffi n said, “Th is is the heart of the
rig.”
Without electricity, nothing runs.
Th e tour progressed through the pumphouse, where two
pumps could be found side-by-side with an open wall between
them.
Eagles asked Griffi n how he got into it the business. “I
was working my way to an apprenticeship carpenter. I’m from
Churchbridge. I came with some friends, and they wouldn’t
take me home on Sunday.”
Th e group progressed through the various parts of the rig,
eventually looking over the mud tank, blowout preventor sys-
tem, substructure, drilling fl oor and doghouse.
“Th is is the most amazing machine in the world. It’s a fas-
cinating industry,” Matt Cugnet, a geologist who is part of the
ownership group, told the politicians.
Th ey were given the opportunity to have their hand on the
brake and run the hook up and down. “Look at the size of that
hook,” Eagles said, wide-eyed, as she brought the brake down.
After the tour McMillan said, “When I was young, my
uncle owned a service rig, and I was called to duty from time-
to-time when someone didn’t show up. But I never set foot on
a drilling rig. It was extremely interesting. I’ve watched them
from the side of the lease many times.”
Asked about the three to fi ve new drilling rigs that get
launched each year in southeast Saskatchewan, McMillan com-
mented, “I think the oil industry is an amazing one for entre-
preneurship. Th e group that saw Panther as an opportunity,
that started investing six, seven years ago, is just an amazing
Saskatchewan story of entrepreneurs meeting the needs of the
great industry here in the southeast.”
“We talk so much about the price of oil and how many wells
are being drilled. All those are very important, but they all help
the others in the industry – the service side – rigs being built
here in Saskatchewan. Th at’s as big a part as anything.”
Minister tours Panther’s new rig
Saskatchewan’s Minister of Energy and Resources, Tim McMillan got to tour Panther Drilling’s Rig 4 on Oct. 5. It was his rst me on a drill-ing rig. He was joined by Minister of Health Dus n Duncan and MLA Doreen Eagles. McMillan represents Lloydminster, Duncan represents Weyburn, and Eagles takes care of Estevan. From le : Dan Cugnet, Ken Cugnet, Corey Hicks, Doreen Eagles, Tim McMillan, Dus n Duncan, Morgan Gri n, Ma Cugnet and Bernie Bjorndalen.
PIPELINE NEWS November 2012 A5
BRIEFS
Briefs courtesy Nickle’s Daily Oil Bulletin
Alberta Star Develop-
ment Corp. reports an ex-
cess of oil in mid-continental
North America. Due to in-
creased production in North
Dakota, Alberta and Texas,
as well as insuffi cient pipeline
capacity to transport this oil
south to major markets, it has
negatively impacted the com-
pany’s oil production revenue
this summer.
Th e company states this
oil glut has resulted in Cana-
dian product being sold at a
discount to the West Texas
Intermediate (WTI) bench-
mark crude oil price, as rising
production cannot fi nd pipe-
line capacity. Th is discount to
WTI has been even greater
for heavy oil such as Alberta
Star’s.
In spite of the reduction
in netback from the sale of its
heavy oil, Alberta Star made
dramatic overhead reduc-
tions to enable the company
to maintain a strong working
capital position of approxi-
mately $5.5 million. Fixed
general and administrative
expenses were reduced to ap-
proximately $36,000 a month
in September – a decrease
of 62 per cent over the same
month a year prior.
In its Oct. 15 news release,
which provides an update of
corporate development activ-
ity since the implementation
of management and board
changes in July, the company
states its management re-
viewed a number of advanced-
stage investment opportunities
in the precious metals sector,
taking advantage of new direc-
tor Tom Ogryzlo’s extensive
experience in the fi nancing,
engineering, construction and
operation of mining projects
on a worldwide basis.
Alberta Star dealing with crude oil glut
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Pipeline News got some one-on-one time with Energy and
Resources Minister Tim McMillan after he toured Panther
Drilling’s Rig 4, asking his thoughts on some of the items in
the news regarding energy policy and development. Here are
his responses:
Regarding Saskatchewan’s position on the proposed North-
ern Gateway pipeline, McMillan said, “We’ve been in favour,
we have been very supportive of any new pipeline capacity. We
think capacity is a constraint. We see the diff erentials between
West Texas and Brent crude, and a large portion of that is ca-
pacity, not just here, but down around Cushing as well. We have
publicly said we think Keystone XL is something that is good
for industry, and a gateway to the west is good as well. If it meets
all the environmental requirements, we will be in support of it.
On B.C. Premier Christy Clark’s assertion her province
won’t even hook up the Northern Gateway project to the elec-
trical grid, McMillan said, “I think there’s a lot of things going
on in the political sphere at this time in British Columbia. Th e
reality is, interprovincial trade is governed by federal law. Re-
source responsibilities were transferred to the provinces back
in the thirties. It’s constitutional. Saskatchewan has said we’re
not interested in the constitutional issues around energy. We
think those issues are established. For the good of Canada, they
should remain established as they are.”
As for how much this aff ects Saskatchewan, he said, “I
think our oilfi eld is in the middle of a continent with markets
we want to serve in other places, largely. We have 115,000 bar-
rels per day refi ning capacity. We produce over 440,000 barrels
per day. We know that fi nding those markets is going to be very
important immediately and in the medium term. Very interest-
ing things are going with oil by rail that is meeting demand
of refi neries on the East Coast. Potential pipeline reversals are
helping. But as the oilsands continue to grow, as production in
Saskatchewan continues to grow, we need more export capacity,
and we’re looking at all directions.”
Asked if shipping crude-by-rail will have an impact on Sas-
katchewan’s royalties, McMillan responded, “I think, big picture,
yes. Finding the most effi cient way to transport our products in-
creases the revenues in the pockets of our industry, and increases
the revenues to government for the products they ship.
“I had a chat with the Irving refi nery manager from New
Brunswick. Th ey are importing a very large volume of their oil
from Western Canada, some of it from Saskatchewan. Instead
of paying a Brent price of $118 a barrel, going back a few weeks,
they were sourcing prairie oil for the West Texas price. About an
$18 diff erential at the time, they were paying $7 for the pipeline
cost and still coming out $11 dollars ahead of what they could
get Brent for, which was their lead supplier previous.
“I think it’s a good part of the advantage we have. Entre-
preneurs are always searching for the least cost to produce the
products.”
Oilsands Quest’s assets had recently been sold to Cenovus.
McMillan commented, “We weren’t involved with the transfer.
Th ere was court-appointed offi cials that made those decisions.
Now that it’s been stated who has made the purchase, it’s a com-
pany that has big fi nancial capacity. We know the Saskatchewan
side of the border has slightly diff erent geological challenges to
what is being produced in Alberta. But Cenovus has the adjoin-
ing property on the Alberta side of the line of what they just
purchased, and they are working on bringing it into production.
A company like Cenovus has the capacity to develop the tech-
nology and bring it into production. We think that’s very good
for Saskatchewan.
“We have a world that needs more energy, and we have
70,000 square-kilometres of potential. I think at some point yes
(there will be production).”
McMillan talks pipelines and oilsands
Minister of Energy and Resources Tim McMillan takes the controls of Panther Drilling Rig 4. Behind him is Minister of Health Dus n Duncan. Between them, McMillan’s ministry is responsible for bringing in the most money to the province’s co ers, and Duncan’s spends by far the most. They, along with MLA Doreen Eagles, toured the new rig on Oct. 5 as it neared comple on.
A6 PIPELINE NEWS November 2012
Publisher: Brant Kersey - Estevan
Ph: 1.306.634.2654
Fax: 1.306.634.3934
Editorial Contributions: SOUTHEAST
Brian Zinchuk - Estevan 1.306.461.5599
SOUTHWEST
Swift Current 1.306.461.5599
NORTHWEST
Geoff Lee - Lloydminster 1.780.875.5865
Associate Advertising Consultants:SOUTHEAST
• Estevan 1.306.634.2654
Cindy Beaulieu
Candace Wheeler
Kristen O’Handley
Deanna Tarnes
Teresa Hrywkiw
CENTRAL
Al Guthro 1.306.715.5078
SOUTHWEST
• Swift Current 1.306.773.8260
Stacey Powell
NORTHWEST
• Lloydminster Randi Mast 1.780.808.3007
MANITOBA
• Virden - Dianne Hanson 1.204.748.3931
• Estevan - Cindy Beaulieu 1.306.634.2654
CONTRIBUTORS
• Estevan - Nadine Elson
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NEWSPIPELINE
Mission Statement:Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people.
EDITORIAL
An interchange during the Oct. 16 U.S. presiden-
tial debate focused heavily on energy. More impor-
tantly for us, there was some important talk about
Canada.
Specifi cally, Republican candidate Governor Mitt
Romney slammed Democratic President Barrack
Obama on the “pipeline of oil from Canada.”
Romney said, “Let's take advantage of the energy
resources we have, as well as the energy sources for the
future. And if we do that, if we do what I'm planning
on doing, which is getting us energy independent,
North America energy independence within eight
years, you're going to see manufacturing jobs come
back. Because our energy is low cost, they are already
beginning to come back because of our abundant
energy. I'll get America and North America energy
independent. I'll do it by more drilling, more permits
and licences.
“We're going to bring that pipeline in from
Canada. How in the world the president said no to
that pipeline? I will never know.”
He hit the point again a few minutes later, say-
ing, “If the President's energy policies are working,
you're going to see the cost of energy come down. I
will fi ght to create more energy in this country, to get
America energy secure. And part of that is bringing in
a pipeline of oil from Canada, taking advantage of the
oil and coal we have here, drilling off shore in Alaska,
drilling off shore in Virginia where the people want it.
Th ose things will get us the energy we need.”
Obama’s answer on the pipeline issue was opaque.
He’s all for pipelines, but he didn’t say much about
That “pipeline of oil from Canada”
that pipeline from Canada.
Obama said, “What I want to do is to create an
economy that is strong, and at the same time produce
energy. And with respect to this pipeline that Governor
Romney keeps on talking about, we've – we've built
enough pipeline to wrap around the entire Earth once.
“So, I'm all for pipelines. I'm all for oil production.
What I'm not for is us ignoring the other half of the
equation. So, for example, on wind energy, when Gov-
ernor Romney says ‘these are imaginary jobs.’ When
you've got thousands of people right now in Iowa, right
now in Colorado, who are working, creating wind power
with good-paying manufacturing jobs, and the Repub-
lican senator in that – in Iowa is all for it, providing tax
breaks to help this work and Governor Romney says
I'm opposed. I'd get rid of it.
“Th at's not an energy strategy for the future. And
we need to win that future. And I intend to win it as
President of the United States.”
Th at says a lot to the Canadian oil industry. If
Obama was all for pipelines, Keystone XL would have
been built already. Enough pipelines have been built to
circle the Earth, but apparently crossing the 49th south
of Shaunavon is just a little too far.
Some people think that that no matter who wins the
election, that pipeline will get the go-ahead, and soon.
But listening to Obama, can we really believe that?
Canadians, at least those who realize that we still
need fuel to put in our cars, have been scratching their
heads at that. It seems President Obama is still more in-
terested in importing oil from the Middle East, because
Canadian oil isn’t good enough.
PIPELINE NEWS November 2012 A7
PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR ARE WELCOME.Email to: [email protected]
OPINION
Lee Side of LloydBy Geoff Lee
From the Top of The PileBy Brian Zinchuk
Th e fall of 1998 stands out very clearly in my
mind. I spent three months that year standing in
swamps. When I came home, my then-girlfriend,
now-wife noted I had a perfume of “eau-du-swamp”
about me.
It was so much fun, in fact, that by the time Oc-
tober came, standing in wet swamps with a howling
wind and not getting enough sleep resulted in me
getting pneumonia for a week. It was bad enough
that my foreman said something along the lines of
“Your mom lives 90 miles from here? Go home to
mom.”
Th at bout of pneumonia and one on the subse-
quent job has meant ever since then, when I get a
chest infection, it lasts a month, not a week, so it’s
something I don’t easily forget.
During that 1998 job, I was an oiler on an exca-
vator that was tasked with digging out all the swamps
on the Enbridge mainline right-of-way between
Regina and the Manitoba border. We were given
swamp mats, large 12x12 timbers bolted together, to
ensure the excavator wouldn’t sink into the ground.
At times, my operator was digging with water up to
the top of his tracks.
Th e idea was to dig out the ditch, and instead of
casting the spill to the far side of the right-of-way,
we cast it onto the ramp side – the side of the right-
of-way where you drive and weld the pipe. Th is made
a bridge through the wetland for the other crews.
We worked well ahead of them to ensure the spill
had time to dry.
If the water was too deep, pumps were used to
lower the water level, often pumping water from one
slough to the neighbouring slough.
Th is past month I spent time on two major proj-
ects, both National Energy Board-regulated. One is
the new Vantage Pipeline, which runs about 600 km
from south of Bengough to the Alberta border at
Empress. Th e other is the Bakken expansion project
for Enbridge.
What struck me in particular while riding
up and down these rights-of-way was the lack of
“swamp ditch” similar to what I worked on. A very
large number of these wetlands are being bored in-
stead of open cut.
Th at’s a huge change from just 14 years ago,
and at tremendous expense. Senior management for
both of the contractors I spoke to made competing
claims that they were working on one of most tech-
nical pipeline projects in Canada, despite the fact
that, compared to building pipelines in the Canadi-
an Shield, muskeg, or mountains, the Saskatchewan
prairie used to be considered fairly easy going.
Th e technical aspect has everything to do with
the much more stringent environmental regulations
their NEB permits have stipulated. Th ey are willing
to work within those permits, I must stress, as both
pointed out they must meet those requirements.
So instead of sending a Cat 345B excavator wad-
ing into the swamp with swamp mats and simply
digging a ditch, now,
especially on the Enbridge job, they are bringing in
a boring crew, a much more expensive proposition.
Th en on each end of the wetland, they must do a
tie-in weld, which necessitates a bell hole on each
end (and much more dirt moved). Tie-ins and bor-
ing are generally much more expensive than simply
digging open cut work. But that is the name of the
game now.
I should note that on the Enbridge job, almost
all the “wetlands” I saw were shoughs dry enough
to walk through without getting your boots wet, yet
they are still boring.
Back in the 1990s, we used to build pipelines
in June, July and August – the driest, and warmest
months. But due to concern over disturbing migra-
tory birds, that doesn’t happen anymore. Th e best
months for dirt work construction are now essen-
tially off -limits. Th e NEB would prefer workers deal
with ice and snow instead of working during the
most amicable months to build, all because of envi-
ronmental concerns over birds.
Th is is the reality pipeline builders must live
with today. So for all those who have been protest-
ing against new pipelines, perhaps they should open
their eyes to the current reality. Environment is fi rst
and foremost.
Brian Zinchuk is editor of Pipeline News. He can be reached at [email protected]
Th e winds of
change are blowing
through Alberta’s
energy sector with
the upcoming
completion of the province’s largest wind farm in
the village of Halkirk, east of Red Deer.
Th e $357 million project being developed by
Edmonton-based Capital Power Corp. will pro-
duce 150 megawatts of electricity. Th at will come
from 83 turbines over a 60 square kilometre area
straddling Highway 12 between Halkirk and Castor
upon completion in November.
Th e project will produce enough power to sup-
ply 50,000 homes and raises Alberta’s electricity
output from wind energy to approximately 1100
megawatts a year, third best in the country.
By comparison, Saskatchewan has a total wind
power capacity of 198 MW with plans to procure
another 177 MW of wind power by 2017.
SaskPower, Saskatchewan’s Crown electric util-
ity, is targeting approximately 8.5 per cent of its fu-
ture power supply to be provided by wind energy.
Ontario leads the nation with 2000 MW in op-
eration with another 3,600 MW being built includ-
ing some projects by Capital Power through On-
tario’s feed-in tariff .
What makes the Capital Power Corp. remark-
able is that Alberta is the only deregulated energy
system in Canada and doesn’t pay a higher price for
renewable energy like most provinces do.
Energy produced by the Halkirk project will
be sold into the Alberta spot market for electricity.
In addition, Capital Power will sell renewable en-
ergy credits (RECs) to the Pacifi c Gas and Electric
Company (PG&E) under terms of a 20 year-fi xed
contract.
Th e Halkirk project benefi ts from a California
law that requires every power company to produce a
certain amount of green energy, a condition that can
be met by purchasing green credits.
Th e power capacity of the Halkirk project
is based on the wind blowing 30 per cent of the
time as it surely must in the windy Estevan area of
Saskatchewan which is near the site of $1.24 bil-
lion coal-fi red carbon capture project at Boundary
Dam.
Th e Boundary Dam project includes plans to
capture and store one million tonnes of carbon di-
oxide a year, but wind power is renewable and gen-
erates no air emissions.
According to Environment Canada, 18 per cent
of Canada’s greenhouse gas emissions are created by
burning fossil fuels to generate electricity.
Th e Canadian Wind Energy Association esti-
mated using wind to produce enough power for over
200 homes of electricity instead of burning coal will
leave 900,000 kilograms of coal in the ground and
reduce annual greenhouse gas emissions by 2,000
tonnes.
Th e association believes wind energy can satisfy
20 per cent of Canada’s electricity demand by 2025
with installed capacity currently at 5,511 MW – 2.3
per cent of Canada’s total electricity demand.
Alberta’s Capital Power project will create 14
permanent jobs in Halkirk which has a population
of 122. It will generate additional annual tax rev-
enue for the county and the town.
Th e project will also pay an annual lease fee to
dozens of landowners who have been compensated
for the use of their land for access roads and tur-
bines.
Th e Halkirk turbines need a minimum wind
speed of just 11 kilometres per hour to produce
electricity with the optimum wind speed of 60 km/h
which puts a lot of the province in the running for
wind farms.
Major wind power projects would be well suited
to southeastern Saskatchewan where there are strong
reliable winds near available transmission lines.
It’s only a matter of time before the winds of
change blow a little stronger in Saskatchewan as the
economies of scale make wind power profi table as it
will for Capital Power in Halkirk, Alberta.
Environment trumps all when pipelining through wetlands
Can wind energize Saskatchewan too?
A8 PIPELINE NEWS November 2012
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www.synergycu.ca
Page A3Heier goes with the “birds of a
feather, stick together” concept, with
high performing, high quality people.
Th e culture is almost “quasi-military,”
he said, which would be in keeping
with the fact he noted, “I’m ex-army.
I was a master corporal when I was
done. I routinely go back to that.”
“When you join me, you’re almost
taking a blood oath. I have laid my
career and future down for people. I
stand by where the value is created, by
the people.”
He called it a brotherhood, or a
sisterhood, if you will.
Dean Hillenga is his No. 2, as
chief operating offi cer.
Many of the management staff
were once part of the Century Oil-
fi eld Services (another frac company)
team before it was acquired by Calfrac
a number of years ago.
“I sought out a pre-existing team,
one that had worked at the same
place. Th ey jumped at the opportunity
to do it over again.”
“Probably 80 per cent of the
money spent in the energy industry
is spent creating the wellbore and
completing it. Th ese days, most of the
wells are multistage frac horizontal
wells. Not too long ago, two thirds of
the money was spent on drilling. Th e
drilling side has become much more
effi cient.”
Th ere are 20 diff erent things that
have made drilling more effi cient, he
said, including the use of polycrystal-
line diamond cutter bits. Trinidad set
records in numerous basins, he noted.
But since drilling is now more effi -
cient, completions are a larger portion
of the spending pie.
FinancingTh e response to their fi nancing
drive was surprising, to say the least.
“I expected to be on the road for
six weeks,” Heier said, noting they
were seeking $28 million.
“We closed the book in a week
with $45 million in deals. Basically,
we went viral. Th e other deals on the
street got pulled, ours went viral.
“I was somewhat humbled.”
Th e company is privately held
with over 240 investors. Some are in-
stitutions. But the largest shareholder
is two million of 28 million shares.
Directors and management have the
largest holdings.
Th ere is one minor fl y in the oint-
ment, however. Th ere’s not as much
Saskatchewan content as he would
have liked. Th at was a result of being
oversubscribed.
Spreads“Currently we’re building two
5,500 horsepower frac spreads,” Heier
said. Each will have two 2,750 horse-
power pumps plus all the support
units.
“We have under construction a
coil tubing support unit,” he added.
Th e equipment is due to show
up at the end of November or early
December.
“We’ll be operational by Q4, a bit
early,” he said. “Th e coil tubing unit
will show up early Q2.”
An 18,500 square-foot shop is
under construction. “We’ll be expand-
ing it by another 7,000 square feet in
a few years,” he said.
Th e location is a 10-acre parcel on
Shand Road, southeast of Estevan.
“Th ere will be more things we
will bring to the table our competitors
do not,” he promised.
Estevan base“Th is Estevan facility is Millen-
nium’s master service centre. Th is is
where we’re going to go from. Any
growth will be supported from here.
Asked why Estevan was chosen,
he said it was the centre of the Cana-
dian side of the Williston Basin. He
was also born and raised in Estevan.
“We’re going to try to get as
many people as possible to move here.
We’ll recruit from this area. Every-
thing below the executive level will be
in Estevan. Headquarters will be in
Calgary.
“We’re here to build a local cul-
ture. Th is is the frac home for Mille-
nium. Th is will never be a satellite.”
By the end of the year, they ex-
pect to have a staff numbering in the
low- to mid-60s.
“Th ey can’t wait to get here, in
fact. We found a lot of personnel very
eager to join our team, people who
will buy into the culture we are trying
to create. But not everybody fi ts our
culture.”
Housing is an issue, something
they are “still talking about.”
“We don’t want to rent the com-
munity. Th is is our community,” Heier
said, referring to the common prac-
tice of frac workers often being from
somewhere else, and not setting down
roots.
Smaller fracs“We’re not going to chase after
big gas. We will go after smaller, oil-
based fracs, smaller tonnage jobs that
are less controversial.”
As CEO, Heier said he’s looking
fi ve to six years into the future, several
years ahead of the team. He would
eventually like to build “10ish” frac
spreads, deployed in three areas, “as
far south as the Permian Basin or as
north as north-central Alberta.”
“We’re going to go where we’re
wanted, fi rst. Th ere’s always room for
top performers.”
Lesser performing companies are
“scraped off the edge,” he said.
While the booming North
Dakota market is tempting, working
across the border from Canada is not
an easy challenge, according to Heier.
However, Trinidad’s U.S. operations
account for 60 per cent of its rev-
enues, he pointed out.
Mike Heier, CEO and president
of Millennium Stimulation Services
and chairman of Trinidad Drilling
Ltd. has put a lot of thought into the
importance of the skills developed in
stimulation in southeast Saskatch-
ewan, and its future impact on the
world. Th e centre of excellence for
coil fracking, he said, is right here, in
Estevan.
“Th is is the centre of the world
for coil fracking, just as it was for
horizontal drilling. Some of the more
fi nesseful skill sets for coil fracking
were developed here.”
He pointed out that shale oil at
similar depths exist all over the world.
“North America has seven per
cent of the boe of global world
production, yet we consume about 75
per cent of global land-based drilling
and completion services chasing that
seven per cent.
“Th is is the centre of excellence.
Th is is the centre of expertise. What
do you think will happen when the
other 93 per cent of the global boe
want to do what we have been doing
here for the last 20 years?”
“Until someone either uses less
fuel, ha! Or fi nds some miracle new
fuel that’s not out there, we have no
choice. All these eco-terrorists who
want to shut everything down, sorry,
our global consumption keeps going
up.
Th e peak oil theory is real. We’ve
already gone over the peak. Th e peak
isn’t about one day oil shuts off . It’s
about the peak stuff is gone. It’s way
behind. We had that fundamental
shift fi ve, six years ago. Th e marginal
barrel produced right now is $65 a
barrel. Th at’s the replacement cost.
A short time ago it was 30 bucks a
barrel, and a short time before that, it
was $15.
“We’re in this hyperbolic curve
now. It’s not a linear curve anymore.
Th ose replacement numbers that
come on are very expensive. Th at’s the
kind of stuff we’re doing all around.
People want cheap oil? Just be happy
you’re going to get supply.”
“Going back to that 93 per cent
of the global boe, when they start
doing the things we started doing 20
years ago, optimizing existing oil-
fi elds, they’ve been down that path.
Now they have to start working on
the tough stuff . Th e services that do
that do not exist. Th e expertise does,
but in small quantities. If you under-
stand what we’re doing here, this is
an exercise in building for the future.
Th e kind of people train here today,
ten years from now, are going to be a
global expert.”
“Th ere’s nothing like a good ’ole
Saskatchewan farm boy somewhere
in the Middle East to get something
done. Farm kids from Saskatchewan,
Manitoba and Alberta built the in-
dustry,” he concluded.
Fracking centre of excellence
Rebuilding a pre-existing team
PIPELINE NEWS November 2012 A9
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control equipment. We offer the largest selection of new BOP’s, Drilling choke and kill manifolds as well as stack valve assemblies. Our
Control Systems (Accumulator) are designed & manufactured to API 16D 2nd edition. Boasting 50,000+ square feet of manufacturing
and service facilities, 100+ employees, the largest number of fi eld service technicians and specialists in the industry with a designated fi eld
service fl eet consisting of 8 units including light oilfi eld pickers through 1 ton 4 x 4’s. Control Technology Inc. has dedicated employees for
our Quality Management System and Safety Program; both of which are top priority in all aspects of our service offerings.
COME AND SEE US AT LHOS BOOTH 317!
Calgary – Cenovus Energy Inc.
purchased the remaining assets of
bankrupt Oilsands Quest for $10 mil-
lion with the approval of the Alberta
Court of Queen’s bench on Oct. 2.
Th e Calgary-based oilsands
explorer had been operating under the
Companies’ Creditors Arrangement
Act since November 2011 and was
actively seeking to sell off its assets in
Saskatchewan and Alberta.
Th e majority of the sale assets
are located adjacent to Cenovus’s
proposed Telephone Lake oilsands
project in northern Alberta.
“We are pleased to acquire these
assets at such a reasonable price,” said
John Brannan, Cenovus executive
vice-president and chief operating
offi cer in a news release.
“Th is is a good bolt-on acquisi-
tion that has the potential to add
value to one of Cenovus’s next big
emerging oilsands projects.”
Th e purchase and sale agreement
for the company’s assets was signed
with Ernst & Young, the court-ap-
pointed monitor overseeing Oilsands
Quest’s liquidation and closed on
Oct. 12.
Oilsands Quest fi led for creditor
protection in November 2011 after it
failed to fi nd a buyer for its Wallace
Creek property in Alberta.
Th e company had hoped to sell
its Wallace Creek property in 2011
for $40 million cash at closing and
an additional $20 million, “subject
to certain future events” and use the
proceeds to develop its Axe Lake
property in Saskatchewan toward
commercial development.
Oilsands Quest fi rst became
involved in Saskatchewan's oilsands
industry in the fall of 2004 when it
acquired oilsands exploration permits
in the northwest region of the prov-
ince.
In early 2010, Oilsands Quest
submitted an application to the
government of Saskatchewan for a
SAGD pilot project that would be-
come the fi rst stage of a 30,000 barrel
per day commercial oilsands develop-
ment at Axe Lake.
Th e company prepared detailed
plans for that pilot project, but put
the plans on hold late in 2010 while
seeking a partner or other strate-
gic alternative, given the signifi cant
capital expenditures associated with a
commercial oilsands facility.
Th e acquisition by Cenovus
includes three oilsands leases cover-
ing approximately 59,000 hectares in
Alberta and Saskatchewan that adjoin
Cenovus’s Telephone Lake property.
Cenovus submitted a joint regula-
tory application and environmental
impact assessment late last year for an
initial 90,000 barrel per day project at
Telephone Lake.
Th e company expects Telephone
Lake will become another cornerstone
project like Foster Creek or Chris-
tina Lake, Cenovus’s two producing
oilsands assets.
Th e acquisition includes a 34,000
hectare oil shale lease (Pasquia Hills)
in east-central Saskatchewan, as well
as various surface assets, such as a
work camp and assorted vehicles and
equipment.
It does not include any of Oil-
sands Quest’s corporate assets or
shares.
Cenovus buys Oilsands Quest assets for $10M
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ISN and Complyworks member & valid SECORCorrection
It looks like we got a little colour blind last month. In our photo spread
of the Lloydminster Heavy Oil Show on page C20 we mistakenly identifi ed
a Halliburton cement truck as belonging to Schlumberger. In the photo were
Calvin Lorentz, Tyler Conrad and Tyler Curtis. We’ll try to keep our reds and
blues square next time, and regret any confusion this may have caused.
A10 PIPELINE NEWS November 2012
Global Steel Ltd. is a private corporation founded in 1990. From modest beginnings Global Steel has grown to become one of North America’s most trusted distributors of premium Canadian Manufactured Oil Country Tubular Goods (OCTG). Today, this Calgary-based company enjoys an unmatched reputation for product quality, innovation and customer service.
Global Steel maintains key relationships with several major domestic steel mills. Strategic alliances with each mill guarantee reliable and secure access to a full range of high-quality ERW OCTG, Seamless OCTG and Line Pipe products. We are committed to providing oil and gas producers with exceptional service, high-quality oil eld tubular goods and personalized logistical support.
One call to Global Steel provides customers with competitively priced products and ef cient , safe dispatch to the job site. Global Steel currently maintains 18 inventory stock points strategically located across Canada. Each stock point is supported by veteran trucking companies specializing in oil eld transportation and providing 24 hours service.
An unwavering focus on operating and service excellence is what separates Global Steel from everyone else. It is a commitment that shows in our products and services. At Global Steel we are focused on your business.
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By Geoff LeePipeline News
Lloydminster – Range One Oilfi eld Services is now equipped to provide its
heavy well servicing customers with coil rod change-outs and installations.
Th e Lloydminster-based company took delivery of a new truck mounted
X-celerator in late October to diversify its core well services including comple-
tions, workovers, stimulations, recompletions and pump changes.
“We just found that it would fi t well with our service rigs,” said Gerry
Nygren, CEO and majority owner.
“Th ere are times when we can’t get our hands on one, so the rig shuts down
early or maybe has to start late the next day waiting for one.”
Th e X-celator was purchased from C-Tech Design & Manufacturing in
Edmonton and will put Range One in a more competitive position utilizing its
current fl eet of three single double mobile service rigs.
“We thought if we had one around, it would make it more available to the
rigs,” said Nygren.
“It would increase the rig utilization for us. It will cut down on downtime,
and it should stand on its own too.”
Th e decision to purchase the X-celator coincides with Range One’s plan
to house its equipment and offi ce in a new 10,000 sq.-ft. building that is under
construction in the Hill Industrial Park.
“We plan to move in the spring or summer of 2013,” said Nygren. “We
may not utilize the whole thing to begin with.”
Currently Range One has use of an offi ce at L & L Oilfi eld Construction
Ltd., which owns a minority share in the company.
“I think the new building will kick us ahead. We’re going to have to have a
place to park our X-celerator unit anyway,” said Nygren.
“Th at’s kind of a demand that we can’t get away with this time.”
Without a building, the company has been basically parking its equipment
wherever it fi nishes for the day.
Nygren started Range One 10 years ago and learned the importance of
diversifi cation and having a measured growth strategy when the demand for
well servicing dropped off in the 2008 downturn.
“It’s been a real slow climb back up. Th is year it’s okay – we’re doing good. I
wouldn’t say we are doing great, but we are doing good,” said Nygren.
Range One services heavy oil customers within a 100 mile radius of Lloy-
dminster with workovers and recompletions topping the list of well services
most in demand.
“Th ere’s also typical pump changes. We produce a lot of sand here, and
that’s hard on the pumps,” said Nygren.
“We do horizontal and vertical wells, but we are not geared toward direc-
tion or slant wells.”
Th e decision by Range One to purchase the X-celerator and construct a
new facility follows a trend for well servicing companies to position themselves
for success as one-stop shops.
“I think a lot of companies are going that way. Th e start-up companies
obviously haven’t gotten into that,” said Nygren. Page A11
Range One poised for growth
PIPELINE NEWS November 2012 A11
Kenilworth Combustion Main Offi ceContact Heine Westergaard 1-780-744-3974
Nomad Electric in Northern AlbertaContact Clint Ferriss 1-780-624-2447
Pronghorn Controls in Southern and Central AlbertaContact Stan Neu 1-403-501-4895
CCR Combustion in East Central AlbertaContact Kevin Moan 1-780-872-0706
MAIN OFFICE 1-780-744-3974 FAX 1-780-744-2242
www.kenilworth.ca
Gerry Nygren, CEO of Range One Oil eld Services, stands near his Rig 3 that is ready for service a er a maintenance checkup. The company has just purchased a new truck mounted X-celerator and plans to move into a building by the summer of 2013. Photo by Geo Lee
Page A10“We’re not that further along either yet. We’re not that large of a company,
but we are moving that way.”
Nygren got his start in the oil industry over 30 years ago as an entry level
fl oorhand on service rigs and has lots of experience working for larger compa-
nies such as BP, Encana and Talisman.
“I also did contract operating and consulting. I’ve kind of worked my way
around the industry and I’m back full circle where I started on the rigs,” he
said.
Nygren oversees a staff of 16 employees including three fi ve man crews and
a supervisor, and he thrives on the daily challenges of managing the business.
“It keeps you awake every day. Th ere’s always something new. Diversifi ca-
tion is probably one of the biggest ones for me right now – which direction do
I take?” he said.
“I look at it as a lot of opportunity. I can see several diff erent directions I
can take. It’s trying to pick which one.
“Th is year, it was getting a truck mounted X-celerator unit. Th at was the
direction for this year.
“Next year, it’s going to be the building. We’ve already taken that plan.
What else next year brings I am not sure. It’s one step at a time,” Nygren said.
A12 PIPELINE NEWS November 2012
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780-875-9571 toll free-877-575-9575 • www.millgeo.ca
Millennium Geomatics Ltd. is a progressive Professional Surveying and Geomatics fi rm specializing in serving the oil and gas sector within Alberta and Saskatchewan.
Troy Illingworthcell: 780-205-1858
Tim Sharpcell : 780-871-1276
Offi ce: 780-847-4666Fax: 780-847-4661
Box 82 Marwayne, ABWelders, Service Crews, Lease Mowing
& Bobcat Service
Story and photos by Geoff Lee
Lloydminster – Reliance Industrial
Products Ltd. is gaining some unex-
pected publicity for its new service
rig division with a client rig up taking
place behind their Lloydminster shop
in the Hill Industrial Park.
Reliance won the contract to rig
up the fi rst service rig made for On-
ion Lake Energy by Kobes Welding
Ltd. in Lloydminster.
“It’s really good for us because
you can see that rig from anywhere on
the truck route,” said Michelle Strass-
burger who manages the new rig divi-
sion launched locally in January.
“Th at tells everyone ‘oh my God,
look, they’ve got well servicing there
now!’”
Th e service rig division sells ev-
erything from tube and rod elevators
and power tongs to spiders, tubing
bailers and rubber products and ac-
cessories.
“Th e rig up is an opportunity to
sell all the products we supply,” said
Strassburger.
“Our safety division sold them all
the safety equipment for the rig. We
are making the hoses for them here
too.”
Page A13
Reliance adds supply lines for service rigs
Reliance service rig manager Michelle Strassburger grips a rod elevator part for a service rig. To the le is a larger tubing elevator. In the box is a silver coloured swivel joint.
PIPELINE NEWS November 2012 A13
Page A12
Reliance specializes in hose as-
semblies and services for all industries
including high pressure hose testing.
Th ey also sell and service a com-
plete line of Scott breathing apparatus
and related safety supplies.
Th eir niche is selling everything
from the ground up in oilfi eld sup-
plies and safety equipment, and
Reliance has become a one-stop shop
with the addition of the service rig
division throughout its Western Ca-
nadian and U.S. locations.
Th e company also started a drill-
ing division at its Nisku location a
couple of years ago to further diversify
their oilfi eld supply and safety prod-
uct off erings.
“I think they want expand a little
bit and make this a one-stop store
where you can buy everything from
rope, dope and soap to hoses and
safety equipment,” said Strassburger.
“We sell tongs, elevators and
blocks and all that kind of stuff . Ev-
erything kind of goes together.”
Th e service rig product catalogue
reads like a phone book, covering
every product for well servicing from
pipes, valves and fi ttings to blowout
prevention equipment and mud test-
ing products. Page A14
It was a snowy day when Mike Bernard posed for this photo by the site of this ongoing rig up of Onion Lake Energy’s rst service rig at the Reliance shop in Lloydminster.
Here Bernard overlooks the Reliance warehouse and shop for oil eld supply and safety products and services. The top oor serves as a storehouse for the company’s new service rig division.
A14 PIPELINE NEWS November 2012
• EXHAUST • BRAKES
• SHOCKS • FRONT END
• WHEEL ALIGNMENT
• SUSPENSIONS
• AB & COMMERCIAL INSPECTIONS
P.O. Box 1443, S9V 1K4 • 3705-52nd Street Close, Lloydminster, SKPhone 306-825-5933 • Fax 306-825-5935 • Email [email protected]
Page A13Th e Onion Lake service rig up is a sales coup for the new division that has
led to the recent hire of Mike Bernard as a full-time outside sales representa-
tive.
“It’s very exciting. I have 13 years of drilling experience and a little bit of
well servicing experience,” said Bernard who sees the rig up as a training expe-
rience.
“Working in supplies, you sell everything, but you don’t get the opportunity
all the time to see where it gets put, and how it’s used. It’s a good learning tool.
“I will be basically selling everything that’s out of this branch and work-
ing with Michelle to promote the well servicing side. Th at’s where Michelle’s
expertise is.
“I am probably going to be pushing the supply demand on the well servic-
ing side with companies around town – not really a specifi c product brand, but
push the company and the service,” he said.
Th e ongoing rig up at Reliance is a sales booster for Strassburger who came
into the job with more than 15 years of experience selling oilfi eld supplies in
the Lloydminster area.
Her industry contacts helped Reliance to outbid the competition for On-
ion Lake Energy’s fi rst single double service rig for heavy oil applications.
“We’ve got that service rig in our backyard now. It’s set up there,” said
Strassburger.
“Th ey are putting their equipment on it. Th ey are bringing their doghouse
in, and we are loading them up and giving them all of their supplies out there,
so that they can set it up and get it out to the fi eld.
“We are supplying 90 per cent of the parts. Th ey are buying everything
from rope, soap, dope and BOPs to travelling blocks, all the hoses, all the safety
supplies – everything.”
Strassburger and branch manager Ken Pacula were at the Lloydminster
Heavy Oil Show in September where they had an exhibit of products such as
cam locks, hydraulic hoses and Cavins oil well tools.
“We also carry a wide variety of fl anges, fi ttings, pipe nipples, pipe – a wide
gamut of industry specifi c products for the well servicing and drilling industry,”
said Pacula.
Th e oil show was also a great opportunity for Strassburger to let her former
clients know about her new ground fl oor opportunity with the Reliance service
rig division.
“Th e funny thing about the oil show is that it worked out well for me
because people say ‘oh there you are, what are you doing here’ – oh, the same
thing,’” said Strassburger with a smile.
Rigging up their rst service rig
PIPELINE NEWS November 2012 A15
One Call Will Supply It All
Cose e Green, business and industry liaison with AlbertaWorks, handed out a lot of these orange tote bags for job seekers at a Lloydminster and re-gion fall job fair on Oct. 11. More than 40 employers were on hand for the event.
Story and photos by Geoff LeeLloydminster – Oilfi eld service companies were out in force at a Lloydmin-
ster and region fall job fair that drew more than 150 job seekers in the fi rst two
hours.
More than 40 area companies including CWC Well Services, Precision
Well Services and Matrix Well
Servicing were eager to meet new
employee prospects at the Lloy-
dminster Exhibition Grounds on
Oct. 11.
Th e job fair was sponsored by
AlbertaWorks in partnership with
the Lloydminster Chamber of
Commerce. Th e event was held with
the purpose of helping a variety of
local businesses fi ll needed positions
in a tight labour market.
“We had employers with a
large employment gaps needing
to fi ll positions getting desperate,”
said Cosette Green, business and
industry liaison with AlbertaWorks
in Lloydminster.
“Typical techniques were not
working – radio ads – you name it
were going out.
“We were doing mini job fairs
in our AlbertaWorks offi ce and
employers said ‘they were successful,
let’s do a bigger one’ to draw people
from further away.
“People are willing to drive a
greater distance if they know they
can meet 50 employers rather than
fi ve.”
Th e fair was scheduled on the heels of a Statistics Canada labour report for
September showing Alberta with the lowest unemployment rate in Canada at
4.4 per cent, followed by Saskatchewan at 4.7 per cent.
“Our oil companies are feeling the need. Many are saying that they could
use 50-plus employees,” said Cosette.
“When we talk to them about
hiring needs, their biggest chal-
lenge is to be able to get away to
do the hiring.
“Hopefully, today this will help
suffi ce – they will do some hiring,
attract some people and then they
can get busy.”
Th at was the goal of Jill
Cooney, fi eld employee develop-
ment co-ordinator at Halliburton’s
oilfi eld cementing operations in
Lloydminster.
“We are recruiting for fi eld
operators for cement trucks,” said
Cooney.
“We are looking for OAs
which are operator assistants, heavy
truck drivers and mechanics and
pretty much everything to do with
the fi eld services.”
Page A16
Job fair draws 150 job seekersJob fair draws 150 job seekers
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Page A15A Halliburton career bulletin
explained cementing is the process
of mixing and pumping cement with
high pressure pumps to bond the cas-
ing to the formation.
A fi eld operator is responsible for
mixing water and powder cement and
pumping the mixing to the rig fl oor
using a high pressure pump.
“We’ve got quite a few good
resumes – a lot of really good poten-
tials, that’s for sure,” said Cooney at
her booth.
“It’s actually turned out better
than we thought. We’ve talked to
some really good folks, and we are
quite impressed with the turnout that
we’ve had so far.”
Attending the job fair was a no-
brainer for Katherine Hemsworth,
human resources recruiter at Fore-
most Universal LP.
Th e fast-growing company
employs about 400 employees at its
nine business units in Alberta includ-
ing about 100 workers at its two tank
manufacturing facilities in Lloydmin-
ster
“Our company is looking for a
wide variety of local positions – ship-
per/receiver welders – Level 2 and 3
journeymen and B pressure. We are
also looking for a pipefi tter,” she said
during a break in the action.
“Th e reaction has been pretty
good. We’ve had quite a few resumes
come in – lots of labourers looking to
start apprenticeships.
“We are still looking for more of
the higher level guys – the journey-
men and the B pressure.”
Foremost Universal recently
opened a new offi ce at the Lloydmin-
ster shop to keep pace with increased
activity in the region.
“We’ve got that whole yard
behind Universal that we’ve been ex-
panding. We’ve got contracts that are
extending into 2015 already,” added
Hemsworth.
“We are hoping to get a lot of
guys coming out for this recruitment
fair.”
As one of the world’s largest
oilfi eld service companies, it was no
surprise Weatherford was in the mar-
ket for regional employees.
“We are looking for a variety of
diff erent positions. We have six facili-
ties within the city of Lloydminster,”
said Tanya Walker, human resources
adviser.
Page A17
The AlbertaWorks employment crew of Darius Jensen, Cose e Green and Kelly Poitras welcomed visitors to the Lloydminster and region job fair at the Lloydminster Exhibi on Grounds on Oct. 11. The event was sponsored by AlbertaWorks in partnership with the Lloydminster Chamber of Commerce.
PIPELINE NEWS November 2012 A17
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Walker was hoping for fi ll openings for wireline
operators, PC pump manufacturing assemblers,
pump technicians, rig assistants and shop hands at
the local divisions.
“We are looking for candidates with a positive
work ethic and someone with a positive attitude
that really wants to develop and grow with the
company,” she said.
“Th e response has been really overwhelming.
We’ve got really good candidates. It’s only about
11:30, and I have about 20 resumes sitting with me
already. It’s been really good today.”
URS Flint Energy Services, National Oilwell
Varco, Global Fusion Coating and Integrated
Production Services, and Relay Distributing also
had recruiters at the fair that was planned to allow
employers to meet candidates in person.
“It’s better that way because questions can be
asked, and you can have a face to face with people
which I think is always better,” said Pat Tenney,
executive director of the Lloydminster Chamber of
Commerce.
“We have employers and members of the
chamber in our community who are desperately
seeking employees” she said.
“When AlbertaWorks said they had some
funding we said ‘okay we will do the work and put
the job fair on’.
“We did the management and administration
and AlbertaWorks promoted it to through their
networks.”
Personnel recruiter Jennifer Miller from Precision Well Servicing in Lloydminster, pro-vided informa on to job seekers about job openings.
Jill Cooney, eld employee development co-ordinator for Halliburton’s cemen ng op-era ons in Lloydminster, answers ques ons about local job openings.
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Lloydminster – It took three diff erent carriers
to deliver the new $750,000 teaching boiler and
components for installation in the power engineer-
ing lab at Lakeland College in Lloydminster.
Th e longest and most important drive was
made by Daryl Mackai who parked his Peterbilt
truck and trailer carrying the boiler in front of the
campus the morning of Oct. 2 after a fi ve day ride
from Dallas, Texas.
Th e trip was Mackai’s fi rst visit to Canada as a
driver for STS or Specialized Transport Service in
San Antonio and Dallas, and he was eager to talk
about his experiences and itinerary upon arrival.
“I left Dallas Friday morning (Sept. 28), loaded
in Oklahoma on Friday afternoon, and got up into
Wichita, and pretty much ‘come up’ Friday after-
noon, Saturday, Sunday and Monday, and here I
am, and I believe it’s about 10 o’clock on Tuesday
morning,” he said with a smile.
“It’s just shy of 2,000 miles. I picked up the
boiler in Collinsville, Oklahoma which is pretty
much straight north of Tulsa.
“I am came up to Canada through North Portal
in North Dakota off Highway 52.”
As for his route through Saskatchewan, Mackai
said, “I came up 39 to 1 to 2, so I came up through
Moose Jaw, and then I took 2 north up to 11 to 16.
“I had to do a little detour here (Lloydminster)
coming down 40th Street to 12 Avenue and then
come back up north on 59 Ave.
“It’s very easy to not get lost out here. Th e roads
were pretty clearly marked, and it’s pretty simple.”
Among the cheerleaders was Greg Shalay who
teaches power engineering courses at the campus
and was most thrilled to see the boiler fi nally arrive.
“Today is a quite a milestone that it’s actually
here,” he said. “We will be teaching more students
to a higher standard of power engineering to fi ll the
jobs that are all around Lloyd.
Th e boiler will be installed and commissioned
in November prior to the countdown to Lakeland’s
centennial year celebrations in November 2013.
“Our department centennial project is to up-
grade the old lab and build a new lab so it’s impor-
tant to us,” said Shalay.
Th e offi cial sod-turning ceremony for Lake-
land’s new $17 million Petroleum Centre took place
at the campus on Sept. 11.
Th e new boiler was made by Victory Energy in
Oklahoma and the controls were made by Process
Combustion Systems in Calgary.
“Th ere’s going to be a couple of shipments.
Th ere’s another truck tomorrow following this
truck,” said Shalay.
“It’s coming from Oklahoma too. It’s got the
piping and the stack and the platform. Th ere are at
least three diff erent carriers.”
Mackai said he has been long hauling for STS
for nearly 12 years – since he was 21 – and never
made it across the border until he got the call to
drive to Lakeland College.
“I am originally from Wisconsin, so I’ve been
close, but never actually came across the border.
“I was kind of shocked at how many hay haul-
ers were coming south over the border. I know
we’ve got enough down by us, that’s for sure.
Page A19
Lakeland teaching boiler arrives in style
Lakeland power engineering instructor Greg Shalay is dwarfed by the new teaching boiler that was transported to the Lloydminster campus from Oklahoma and in a protec ve plas c wrap. It took three carriers to deliver all of the parts from Oklahoma and Calgary.
PIPELINE NEWS November 2012 A19
Page A18“I was shocked how much oil work is up here.”
As for Canadian highways Mackai said, “Th ey’re a little rough – a little
bouncy, but Texas and Oklahoma can pretty much beat you to death too.”
Mackai did take notice of the Tim Hortons outlets along the way and
although he’s a self-confessed Coke drinker, he found the Canadians he met to
be friendly and helpful without having to order a coff ee.
“I got messed up
yesterday and I made
a wrong turn and a
guy helped me out and
backed me right onto
to the road and gave me
proper directions and
everything,” he said.
“It was wonderful.
You would never get
that in the States, that’s
for sure.”
Mackai said he
drove all the way by
himself and likes it that
way.
“I always have. I’ve
never ran with any-
body.”
STS is a family-run
business that operates
specialized transporta-
tion of oversized and
overweight equipment
including oilfi eld equip-
ment in 42 states.
Th e company has
six trucks in Dallas and
three in San Antonio.
“We’re a heavy-haul specialist company. We can haul regular small equip-
ment all the way up to – we have 13-axle trailers,” said Mackai.
“We do a lot of equipment movement not specifi c to the oilfi eld, but we do
a lot of construction and everything that’s affi liated with the oilfi eld.
“Th e trailer that I have has a Murray trunnion. Down in Texas, it’s good for
60,000 (pounds) on the back. My truck is set up right now – I can do 20,000
on the steers and ‘60 on the drives’ and ‘60 on the trailer.’”
Mackai said he would probably sleep in the cab overnight in readiness for
the unloading of the boiler and components the next morning.
He added that he might pick up a load to carry back across the border
when the job was done.
“If we fi nd one – I have no clue yet – most likely, but probably not, but we
will see what happens,” he said.
Th e plan called for a Prairie Crane to unload the boiler and roll into the
power lab at the campus for assembly.
“We hope to have it running in about a month,” said Shalay.
“It’s a D-type
industrial water tube
boiler that can produce
10,000 pounds an hour
of steam. Mainly it’s a
training boiler.
“It’s brand new.
It’s the fi rst one of this
series and design in the
province. Th ere are oth-
er D-type boilers in the
province but this one is
specifi cally designed for
teaching.
“When we build
the new lab then we
will expand the capac-
ity of the boiler to heat
the college and provide
electricity for the col-
lege.”
Th e lab will be a
construction zone with
restricted access during
the installation period,
but Shalay hopes to
schedule some student
visits during breaks to
monitor the progress of the hookup.
“I am sort of co-ordinating between the college and the engineers and the
contractors that are putting it together,” he said.
“Students are quite interested in watching the process as it’s installed and
especially as it’s started up.
“Th e students will be involved in the lab once it’s hooked up and we’re go-
ing through the commissioning process.
“We are making arrangements for sneak peeks at the assembly process. We
will arrange times when the job is a little bit quieter so we don’t have welders
welding while students are in the room,” Shalay said.
The stacks for Lakeland’s new boiler were trucked by Alberta contract driver Dean Nagy (le , in ball cap) from Snowy River Transporta on Inc. on behalf of Landstar Inway Inc. from Jacksonville, Florida. Forkli driver Nolan Winder from Strathcona Mechanical Ltd. helps crewmates Jeremy Peebles, an appren ce plumber, and supervisor Chris Havenor to unload the shipment from the at deck.
A20 PIPELINE NEWS November 2012
Phone: 780.614.2113Phone: 780.614.2113Fax: 780.614.2115Fax: 780.614.2115
Luc Cell: 780.210.0635Luc Cell: 780.210.0635email: [email protected]: [email protected]
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PIPELINE NEWS November 2012 A21
Lloydminster – Enrolment gains for the current fall term at Lakeland Col-
lege are being led by increases in energy and petroleum technology and trades
and technology classes.
Lakeland’s fall enrolment has increased for the third year in a row with
2,500 full-time and part-time credit students registered in classes at the
Lloydminster and Vermilion campuses, an increase of 5.8 per cent from 2011
numbers.
Th ere are currently 834 full-time and 117 part-time students at the Ver-
milion campus, 705 full-time and 165 part-time students at the Lloydminster
campus, and 100 full-time and 579 part-time students in online and off -cam-
pus programs.
Energy and petroleum technology, trades and technology, sign language
studies, and human services have gained the most new students this fall accord-
ing to a 2012 enrolment report released on Oct. 5.
Th e report was prepared by Phil Allen, vice-president of advancement and
student services at Lakeland College who credited some of the growth to the
introduction of a new heavy oil power engineering diploma program this fall.
Energy powers enrolment at LakelandHe also noted there are increases in apprenticeship students, and a large
jump in part-time enrolment in power engineering, educational assistant and
early learning and child care courses.
Th ere are also 53 high school students taking dual credit courses at the
college.
Th is year’s class includes students from every province and territory in
Canada but for Nunavut.
Th ere are also international students from United States, Finland, Barba-
dos, Jamaica, Bahamas, Japan and Australia.
Th ese numbers are a snapshot of the college’s enrolment up to early Octo-
ber with additional intakes expected in apprenticeship technical training, fi re
and emergency services, practical nurse, university transfer, business throughout
the year.
Last year, Lakeland served 7,500 full-time and part-time students during
the academic year.
Edmonton-based Capital Power celebrated the construc on progress of its 150 mega-wa Halkirk Wind project on Sept. 19 in the village of Halkirk in east Central Alberta with a public to tour of the 10,000 hectare site. Photo submi ed
Big wind
A22 PIPELINE NEWS November 2012
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Henk ten Wolde, trade commissioner at the Alberta Netherlands Trade O ce, Consulate of the Netherlands in Edmonton, spoke to the Lloydminster Rotary Club in September on how Alberta and the Netherlands can do business in each other’s region. The Dutch have opportu-ni es in their downstream natural gas industry and their heavy oil ac vi es near the German border.
By Geoff LeeLloydminster – Th e Lloydminster Rotary Club
enjoyed a Dutch treat at their September lunch
presentation by Henk ten Wolde, trade commis-
sioner Alberta Netherlands Trade Offi ce in the
Consulate of the Netherlands. His topic covered
opportunities for trade in both regions, and the suc-
cess to date in areas such as bioenergy, agriculture,
environment, food and infrastructure.
Ten Wolde was invited to speak at the Lloyd-
minster Exhibition Grounds by the rotary club and
the Lloydminster Economic Development Corpo-
ration.
“Th e economic development group within the
community has connections to Henk, and because
of that we invited him to speak at rotary,” said Les
Harper, rotary president following the talk and slide
presentation at the Prairie Room.
“You can tell by the things he said today, there
are a lot of connections between what they do and
potential opportunities in our community and vice
versa.”
New opportunities are opening up for Alberta
and Dutch companies in energy, soil and water
technology, education, construction and oilsands
research.
Ten Wolde said several Lloydminster oil service
companies have already jumped at the chance to
help the Netherlands unlock their heavy oil reserves
in a shared reservoir near the border with Germany.
“Th ey are bringing in products for pumps and
that kind of stuff . We hope we can pump faster
with your pumps than the Germans can on their
side of the border,” he said.
Th e Dutch have a total of 34.3 billion cubic
metres of oil reserves, he said the doors are open to
heavy oil production expertise from Lloydminster
through ANTO.
“I have friends on a regular basis go to Holland
to do service work in that oil patch,” said Harper
who owns Elliott Petroleum that manufactures
heavy duty lubricants in Maidstone.
“Some of the pumping units and some of the
continuous tubing trucks are out of this community
and being used in the oilpatch in Holland.”
Harper said his company doesn’t export to the
Netherlands right now, but he noted “we do some
things that other companies in the world don’t do,
so I think maybe that’s a chance to reciprocate.”
Th e Netherlands has one of the world’s largest
natural gas industries and it is also generating op-
portunities for Albertan companies such as Vermil-
ion Energy in Calgary.
Th e trade offi ce in Edmonton assists Dutch
companies that desire to conduct business in
Alberta by linking them to Alberta companies,
government and organizations.
For Alberta companies that want to conduct
business in the Netherlands, ANTO will act as liai-
son between the Alberta companies and the Neth-
erlands Foreign Investment Agency (NFIA).
“We can help especially when you look at niche
markets. In niche markets, we have raw commodi-
ties,” said ten Wolde.
“For instance, it’s really strange and nobody
knows, but the Netherlands is exporting kerosene
out of the Port of Rotterdam to Canada for air-
planes.
Page A23
Dutch seek business pipeline to Alberta
PIPELINE NEWS November 2012 A23
Change your REALITY
&Change others’ PERCEPTION
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Grant Stegan 403-548-1231
For Demonstration Contact:
Les Harper, president of the Lloydminster Rotary Club, thanks Henk ten Wolde, trade commissioner at the Consulate of the Netherlands in Edmonton, for speaking to a mixed business audience at the Prairie Room in the Lloydminster Exhibi on Grounds on Sept. 24.
Page A22“Th at’s something we are specialize in – downstream we are strong – we
are looking more to the market – where is the market – maybe we can be of
good assistance there.”
Th e country boasts two huge LNG facilities in Rotterdam with the capac-
ity to store nine billion cubic metres and pipelines that connect to Europe’s
hinterland.
Th e Netherlands also has enough gas reserves for 25-50 years at current
consumption levels.
Th e Netherlands supports a substantial oil and gas infrastructure industry
and there are 37 companies in the Association of Dutch Suppliers in the oil
and gas industry.
Th e Port of Rotterdam is the world’s second biggest importer and exporter
of refi ned oil products and is the primary gateway to the European market.
“We are the biggest trading partner in Europe from Alberta and it’s very
unique,” said ten Wolde.
“Everybody thinks it’s Germany or France or the United Kingdom, but no,
it’s the Netherlands because of our port in Rotterdam.
“Out of Alberta through the port of Montreal go thousands and thousands
of tons of goods every year to the Netherlands, and we distribute them all over
Europe. We have a market for 500 million consumers.
“When you have a product here and you want to distribute to Europe, we
are the country to work with.”
Ten Wolde listed several new opportunities to stimulate more trade be-
tween the two regions in areas such as water, energy, food, environment, educa-
tion, construction and oilsands technology.
Dutch food companies for instance, are particularly interested in importing
more Alberta beef while Alberta is keen to tap into Dutch expertise on value
added products, logistics and food processing.
Th e Netherlands is the second largest food exporter in the world. Th e
country also has the expertise to share in related areas of bio-energy, converting
manure to energy, and biomass fuel technology.
Dutch oil and gas companies are also looking for help from some Alberta
companies to help their own downstream facilities to lower the cost of mainte-
nance to prevent shutdowns especially with refi neries, and heat exchangers.
“It’s very specialized stuff they bring in, but they do a good business in
Houston, Texas, so I think there will be some business opportunities here too,”
said ten Wolde.
“What I would like to see is a good partner in Alberta with a company
from the Netherlands to team up, and there you go.
“Th e company in Alberta knows the market; the technique is coming from
the Netherlands, and there you have a winning couple.”
Some of the major companies working in Alberta include Royal Dutch
Shell with a $2 billion investment in the oilsands, Mammoet, Van Leeuwen
Pipe and Tube Group and Damen.
Dutch researchers are also working in the lab on new technology to sepa-
rate bitumen from sand, applied water purifi cation and treatment technology
and soil remediation.
Ten Wolde said his presentation in Lloydminster is in keeping with
ANTO’s mission to increase awareness in both the Netherlands and Alberta
on how to do business in each other’s regions.
“It’s networking to see if people are interested in something,” he said.
“When they have some interest in some issues, maybe I can help them.
Th at’s what I am always interested in. Th e fi rst thing I always bring is the lack
of awareness.
“What you saw in the video about the Netherlands, you never knew before.
Th at’s the fi rst thing I have to do because everyone thinks we live in windmills
behind a dike, walk on wooden shoes and eat tulips and that’s not true any-
more.
“We are a very knowledgeable, research-oriented country at this moment,”
ten Wolde said in conclusion.
A24 PIPELINE NEWS November 2012
PIPELINE NEWS November 2012 A25
SEWEURODRIVE
www.kelro.com
Lloydminster – Frontier Power Products Ltd.,
based in Delta, British Columbia, hopes to make
hay with a new service rig application for its 13.5
litre John Deere diesel engine used in farming and
industrial equipment.
Power Frontier is a Western Canada distributor
of John Deere and Kubota engines and other makes
and machinery. Th e company has branch locations
in Calgary, Edmonton and Winnipeg.
Th e Edmonton shop brought a 13.5 litre engine
to the Lloydminster Heavy Oil Show Sept. 12-13
to generate interest among service rig manufactur-
ers.
“Th e reason the engine is in the show is that
we want to talk about service rig applications,” said
Rob Crosbie, territory manager for equipment sales.
“We’ve developed a wet back end for an Allison
5000/6000 series transmission.
“So we will move into the service rig business
fi rst, and after that, we want to go after other ap-
plications in the oilfi eld.”
Th e engine is well suited as a service rig engine
with an output from 350 to 600 h.p. and compli-
ance with existing Tier 3 emission standards for
diesel engines.
“If people want to go to IT4 (interim Tier
4) we can move in that direction for them,” said
Crosbie.
John Deere has designed and manufactured
more than 7 million off -highway diesel engines
since 1949, including some 13.5 litre engines built
in Nisku for farm, industrial and service rig applica-
tions.
Th e iconic U.S. based company is continuously
developing innovative technology solutions that
meet the needs of off -highway applications and
tough engine emission standards.
“It’s just a natural progression of the product
line for us, and the well servicing industry,” said
Crosbie.
“Th ere is a lot of familiarity and similarity with
farm engines, and it does make people sit back and
take a look, especially when they see the size of this
particular unit.
Th e engine is used on some farm and industrial
John Deere equipment. We are all familiar with off
road hydraulic excavators.
“We are all familiar with combines, so this is
an engine that is used with similarities in all three
product lines.”
“Th e 13.5 has been around for a whole bunch
of years and it’s moved in some very interesting
directions for applications. We’re going one step
further now.” Page A27
John Deere engine to
power service rigs
Fron er Power Products, Edmonton equipment sales manager, Rob Crosbie pictured here at the company’s ex-hibit at the Lloydminster Heavy Oil Show Sept. 12-13.
Photo by Geo Lee
A26 PIPELINE NEWS November 2012
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PIPELINE NEWS November 2012 A27
Calgary – Th e countdown to fi nal hearings to
review the proposed Enbridge Northern Gateway
pipeline will begin following the conclusion of
hearings in Prince George British Columbia from
Oct. 29 to Nov. 9.
Enbridge is seeking approval from the Na-
tional Energy Board to build a 36-inch diameter,
1,777-kilometre pipeline to transport bitumen
from facilities near Edmonton, Alta. to Kitimat,
B.C.
Th e Joint Review Panel conducting the project
hearings began to wind down the public review
with two sets of hearings in Prince George.
Th e fi rst set ran from Oct. 9 to 19 with the
second sessions running from Oct. 29 to Nov. 9.
An additional set of fi nal hearings for ques-
tioning will also be held in Prince Rupert, BC from
Nov. 22 to 30 and from Dec. 10 to 18.
Th e panel previously held hearings on the pipe-
line project in Edmonton
Th e issues subject to questioning include the
environmental and socio-economic eff ects of the
proposed pipelines and the potential impacts on
landowners and land use of the pipelines.
Discussions will also focus on routing, de-
sign and construction of the pipelines and marine
terminal along with operations, safety, accident pre-
vention and emergency preparedness and response
related to the pipelines.
Th e panel anticipates the fi nal argument to
take place from March to April 2013.
Northern Gateway to face nal questions
Page A25Frontier Power is also motivated to break into
the service rig sector with some experience service
rig employees on the payroll including Crosbie.
“I’ve have been around with them quite a bit
with a previous employer,” said Crosbie.
“Th at was part of the reason we wanted to go
forward with this engine is to capitalize on the
experience of the individuals that are with our fi rm.
“We have a good potential to do that with
manufacturers and with customers.”
Th e 13.5 litre service rig engine will include the
Allison transmission that was not available for the
Lloydminster show which aff ected early sales.
“It’s a little bit slower than we’d like now. Un-
fortunately, we are still waiting for fi nal pricing on
the back end of the Allison application pieces,” said
Crosbie.
“We were at the Global Petroleum Show (Cal-
gary) and again, this is another good venue for us to
come to this particular show.
“Th e only diff erence this time is we did have an
Allison transmission on the back end in Calgary.
Unfortunately, we had to give that back to another
gentleman so he could put it there.
“But, Lloydminster and the manufacturers of
service rigs and in this community – there’s a ton
of service rigs and people who are buying product
that is manufactured throughout North America,
specifi cally Nisku.
“We’ve been in contact with some of the fi rms
in the Edmonton and Nisku area and they are will-
ing to move forward with this product line.
“We just need to give them pricing so they can
replace competitive engines with ours,” Crosbie
said.
Entering service rig business
A28 PIPELINE NEWS November 2012
Main Offi ce:
Lloydminster Offi ce:
We Are Environmentally FriendlyMOST products are some of the most environmentally friendly
solutions in the oil field services industry.
Lloydminster – It can be a dirty, dusty and grimy world out there in the
oilfi eld for you and your cellphone.
A Defender series protective case made by OtterBox can protect you phone
from hellish conditions and damage on the job, and save you hundreds of dol-
lars in replacement costs.
Northwind Radio Ltd. in Lloydminster sells a ton of them and hears a lot
of feedback and stories from customers pushing the protective limits of their
Defender products.
“It’s really, really successful. We’ve had customers test them I guess you
could say for up to three storeys of a drop,” said sales representative J Barr at
Northwind’s exhibit at the Lloydminster Heavy Oil Show in September.
“It’s pretty much made for the oilpatch. Anyone who is working with their
phone and using it in a work environment where you know it’s going to be
dusty or dirty or grimy – this case is going to protect your phone.
“It’s a very popular product with a lot of guys. I’ve have gentlemen who
come in from the oilpatch all the time and swear by it.
“I’ve had guys that have run their phones over. Th eir phone survived – the
cases not so much, but they went and bought another case, because a $50 in-
vestment over a $650 phone investment – it was well worth it.”
Th e Defender cases come in large variety of styles and are designed to fi t
just about any make of phone on the market.
OtterBox cases are “dedicated to all the klutzy, spontaneous, chaotic, grace-
less individuals who have broken a device” according to the manufacturer’s web
site.
Th e Defender is billed as providing robust three layer protection that with-
stands drops, bumps and shocks.
“It’s a hard plastic inner shell with a rubber outer shell so the rubber
absorbs a lot of the impact and the plastic absorbs anything harder,” explained
Barr.
Page A29
Northwind turns 25 with hip products
Don’t try this at home. Brianna Kuntz generated a lot of ‘gee whiz’ reac ons from her demonstra on of the waterproof abili es of LifeProof cases to protect iPhones and iPads from water damage even a er being submerged for hours in this tank of water.
PIPELINE NEWS November 2012 A29
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J Barr from Northwind Radio Ltd. in Lloydmin-ster holds a couple of cellphones clad in protec- ve Defender cases by Ot-
terBox at the company’s booth at the Lloydminster Heavy Oil Show in Septem-ber. Northwind is celebrat-ing its 25th anniversary in 2012.
Page A28“It’s got raised edges so it protects your screen. It’s got covers for all the
ports, so you don’t you don’t get dust or anything like that in the mike ports or
the charge ports.
“If you are out talking in the rain, you are not going to have to worry about
the rain getting in and ‘bothering’ your phone.”
Th e Northwind booth also drew a lot of traffi c to a demonstration of the
waterproof characteristics LifeProof cases for iPhone and iPads that were
dropped into a tank of water.
Th e demonstration helped to prove LifeProof ’s claim that their cases for
iOS (Apple operating system) devices are waterproof, dirt proof, snow proof
and shockproof.
“Th ose ones are designed more for the casual people – out at the hot tub
and playing around with their phone and ‘plunk – there it goes’ – but the
LifeProof case will defi nitely defend against that,” said Barr.
“LifeProof also has accessories you can add to it that allow it to fl oat. If you
happen to be out boating and you drop your phone in you don’t have to swim
all the way to the bottom to fi nd it again.”
Northwind is celebrating their 25th anniversary in 2012 dating back to its
launch in1987 as Lloydminster’s original Telus Mobility authorized dealer.
Today, the company specializes in sales and service of personal communi-
cation services or PCS and mike phones, as well as two-way radios and asset
tracking systems.
“We install all of those. We do a large variety of installations,” said Barr.
Northwind also sell boosters by Wilson Electronics that enhance PCS
voice and data coverage in areas with spotty or weak signals in rural markets
and remote areas through wireless Telus Mobility.
Northwind provides a wide choice of communications products and ser-
vices listed in detail on the web site.
“Absolutely, 100 per cent anything in communications we’ve got going on
for you need we can supply it for you,” said Barr.
A30 PIPELINE NEWS November 2012
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Lloydminster – Northern Mat & Bridge LP could be one of the few com-
panies in Western Canada to consider the need for a sunny day fund when
business is slower than expected.
Rain or soggy ground is better for sales and rentals of their temporary ac-
cess mats and bridges that have a variety of resource and construction applica-
tions including oil and gas and pipeline operations.
Th e company has a manufacturing facility in Rycroft, just north of their
head offi ce in Grande Prairie, where they sell up to 20,000 access mats a year
and up to 60,000 rental units to access wet, muddy terrain, muskeg or environ-
mentally sensitive areas.
“Th e last few years with all the rain have been very good for our side of
the business,” said company sales representative Chad Holonics at the 2012
Lloydminster Heavy Oil Show in September. Page A31
This was the rst foray at the Lloydminster Heavy Oil Show for Northern Mat & Bridge LP from Grande Prairie, Alberta. Sales rep Chad Holonics was keen on expanding their oak and r mats and bridges into the regional heavy oil market in Alberta and Saskatch-ewan. Photo by Geo Lee
Northern Mat lays a path to Lloyd
PIPELINE NEWS November 2012 A31
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Page A30“Too wet – that obviously hampers us because nobody can move, nor can
we with road bans and stuff like that – the weather certainly helps us in that
regard.”
Northern Mat manufactures sells and rents a variety of access mats includ-
ing traditional 8x14’ premium oak swamp mats.
Th e company’s feature product is an 8x14’ oak and fi r hybrid access mat
called Fir-LITE. Th ey also have an assortment of rig mats, camp mats, crane
mats, pipeline mats and ATV mats in all sizes.
“We also manufacture standard 8x40’ and 8x20’ steel frame rig mats,” said
Holonics.
“Mats are mainly used for lease sites, access roads and multiple operations
in environmentally sensitive areas or any place that you need temporary access
to.”
Holonics said their niche is being the largest in terms of “geographic dis-
persion” which makes the company a supplier of choice for many of the large
oil and gas operator based on volumes.
Th e company off ers 24/7 service supported by a staff of 20 to 30 employ-
ees in Grande Prairie and another 50 factory or fi eld workers serving a huge
geographic area.
“We’ve sold mats as far north as Alaska and as far south as Colorado,” said
Holonics.
“We’ve got full install services, so we’ve got operations from Fort Nelson to
Virden, Manitoba and basically every place in between.
“We have full service with trucking and matting equipment – a one stop
shop for all.”
Northern Mat provides complete mat delivery, installation and removal
service utilizing a fl eet of mat installation equipment, including wheel loaders,
excavators and trucks.
Th e 2012 heavy oil show was new for Northern Mats which decided to
skip the Fort McMurray show in September for an opportunity to make in-
roads in the Lloydminster area.
“We’ve done the Fort McMurray show for years, and we just decided to
come to Lloyd and show a presence here,” said Holonics.
“We do some work north of here in Conklin and Fort McMurray and east
of here to Saskatoon and ‘Kindersley type of thing’ and then south.
“Around Lloyd is kind of a little empty area for us for the most part. We
want to expand our market to this area.”
Th e show was the perfect opportunity to sow the seeds for winter manu-
facturing orders and to promote their line of bridges for small and large creeks
or river crossings and other applications for temporary access in the heavy
oilfi elds.
Northern Mat has a large inventory of L-100 engineered and certifi ed
portable bridges, low profi le bridges, ATV bridges, pedestrian bridges and low
profi le Allsteel brand portables with a suite of sales, rental and leasing options
for all of their products.
Th e company sources most of its oak as precut lumber from the southern
United States which is shipped to Rycroft by rail.
“Th e fi r all comes from the B.C. interior, but we do get some from Idaho
and Washington because it’s something they can’t harvest in the wintertime up
here,” said Holonics.
“When we go a little further south, it expands our timeframe in which we
can purchase the lumber. Th e oak is a hardwood and it’s a much stronger wood,
but much more expensive.
“Th e longevity of the mat life is the diff erence with oak.”
A32 PIPELINE NEWS November 2012
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Lloydminster – Techmation Electric & Controls Ltd. based in Airdrie, Al-
berta came to the Lloydminster Heavy Oil Show to fl y the fl ag and shake a few
hands in a public relations blitz Sept. 12-13.
Th e mission was accomplished early on with the company’s draw prize bin
fi lling up quickly with client business cards in the running to win a Taylor Hall
Edmonton Oilers’ hockey sweater.
“We are just basically in town to support the community. We’ve got a local
branch in Lloydminster,” said Victor Witzke, vice-president of business devel-
opment who is based in Airdrie.
“We just wanted to get some brand recognition in town. We just wanted to
basically thank the community for having us here, and to make people aware
that we are in town providing electrical instrumentation services.”
Techmation is a privately-owned Canadian company providing a complete
range of electrical and instrumentation services to all facets of the commercial
and heavy industrial sectors.
“We provide construction and maintenance services to the oil and gas
industry,” said Witzke, who came to Lloydminster with a business development
team.
“Our company has over 1,000 employees and we have 23 locations, and in
Lloydminster, we have 50 people working locally.
“We build gas plants, oil batteries and then we like to support the facilities
we build.”
Th eir construction services range from initial plant construction to com-
missioning and start-up.
On the maintenance side, Techmation provides
everything from 24 hour on-call servicing, plant
turnarounds and troubleshooting facilities, well
sites and pumpjacks to servicing pneumatic and
electronic controls.
Witzke said the Lloydminster market is a very
healthy one, adding that with the whole company is
currently in a growth mode due to the strength of
the energy sector in Western Canada.
“Th e oil industry is focusing on oil and liquids
rich products and there is a lot of oil in Lloydmin-
ster. A lot of our clients are actively drilling and
building facilities,” he said.
“Currently, heavy oil it’s very important. With
the state of natural gas, it’s very important for us to
focus on the producers that are actively construct-
ing facilities.
“We honestly believe that the future is very
bright in Western Canada and we are not foresee-
ing any downturns in the economy at all,” Witzke
said.
Techmation is well known for developing and/
or adapting to existing preventative maintenance
programs that help reduce costs and improve oper-
ating effi ciencies for clients.
“Th e advantage of our company is that we have
size and strength to support most of our clients,
and we have the manpower in place to execute the
projects,” said Witzke.
“We are one of the safest contractors in the
industry, and we provide a very top level of service
to our clients.
“We get a lot of repeat business because of the
quality of service we provide.”
Techmation executes PR blitz in Lloyd
The Lloydminster Heavy Oil Show is an important venue for Techma on Electric & Con-trols Ltd. at which to meet clients who require their construc on and maintenance services for oil and gas facili es and ba eries. The company is based in Airdrie, Alberta, and has more than 1,000 employees in 23 loca ons including a busy branch in Lloyd-minster.
A34 PIPELINE NEWS November 2012
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Lloydminster – Borets-Weatherford generated its fair share of attention at
the Lloydminster Heavy Oil Show with an exhibit of a multi-stage horizontal
pumping system (HPS) for heavy oil applications.
Th e HPS unit was trucked to the show held Sept. 12-13 from the com-
pany’s sales and service centre in Nisku. Th e unit was presented as a solution to
positive displacement pumps for a wide range of high pressure applications.
“We brought the multi-stage surface pumps for water injection, water
disposal, pipeline boosters, waterfl oods and all those surface applications,” said
Jerry Evans, HPS sales and service manager.
Th e HPS units made in Nisku can also be used for boiler feed water, mine
dewatering and for salt dome leaching.
“Th ere’s lot of diff erent applications for them,” said Evans, who added they
can also be used for condensate pumping.
“Th ey actually have condensate pumps where you run the condensate down
to the main header for the heavy oil. With the condensate mixed, our pumps
will move it up the pipeline, back to the facility.”
One of the advantages of a horizontal pumping system, said Evans, is that
it limits the pulsation concerns of a positive displacement pump.
“Th ey have constant fl ow, constant pressure; they are operator friendly and
the maintenance level is zero,” he added.
HPS units by Borets-Weatherford feature rigid skid construction, closer
pump clamps and the industry’s largest thrust bearings that increase system run
time and seal support.
“Th e beauty of the system is the maintenance. Th e installation is easy and
the maintenance is minimal,” said Evans on the fi rst day of the show.
“We have a huge presence here. We have a lot of
units sold out here. We work on these every day. We
have our service and maintenance agreements with
most companies where we come out and actually do
all the maintenance there is.
“We do laser alignments for all these units and
we do vibration analysis or trending.” Page A35
Borets pumped for heavy oil apps
Dennis Thompson, a horizontal pumping system sales rep from Borets-Weath-erford in Nisku, stands by a 100 h.p. electric driven HPS unit used for water injec on, water transfer or water oods by heavy oil companies in the Lloyd-minster area. The unit was part of the company’s display at the Lloydminster Heavy Oil Show in September
PIPELINE NEWS November 2012 A35
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Mindy Harrison, an HPS supervisor, and Jerry Evans, an HPS sales and service manager for Borets-Weatherford, brought this low pro mine HPS (horizontal pumping system) to the Lloydminster Heavy Oil Show.
Page A34
Borets-Weatherford is also making gains in the heavy oil market in Cold
Lake and Bonnyville where horizontal pumping systems are mainly used for
water injection.
“We are starting to get into a few condensate jobs, and we are starting to
get into a little bit of the SAGD world for the boiler feed water pumps,” said
Evans.
“We have a few applications at Devon’s SAGD project at Jackfi sh and
Suncor’s in-situ operations at Firebag.”
Th e Borets-Weatherford HPS units in the Lloydminster area are mainly
used for water injection, water transfer and waterfl oods, and they come in
various drive options including electric motor, gas or diesel engine or steam
turbine.
Th e main HPS unit on display was powered by a 100 h.p. 460-volt electric
motor. Th e units come with a standard front pullout or an optional back pull-
out thrust chamber to suit specifi c client needs.
“It depends on how much pressure you have to cut out to determine how
many stages the pump will have,” said Evans.
“Each stage is designed for a certain volume and it will give you so much
pressure. It depends on the pressure of the reservoir or the well for how far you
are pushing the fl uid to determine how many stages it will require.
“We manufacture these from 15 to 1,500 h.p. We have done 120 cubes a
day all the way up to 6,000 cubes a day on single units.”
Borets-Weatherford is a subsidiary of Borets, a Russian company based in
Moscow and a global provider of downhole electric submersible pumps (ESPs)
and horizontal multi-stage centrifugal surface pumps.
Th e same multi-stage stage pump is used in ESP and HPS applications.
Borets-Weatherford also operates service centres in Medicine Hat and
Estevan with a regional offi ce in Calgary.
Each centre is fully equipped with a complete stock of motors, pumps, mo-
tor seals, cable and surface equipment, as well as component parts for special-
ized manufacturing, repair and equipment maintenance.
Evans said the Lloydminster oil show was the perfect opportunity for sales
and service staff to meet new contacts and existing clients.
“Some of the engineering companies are coming here to meet us to get a
better understanding and get a hands-on experience,” said Evans.
“We deal with a lot of engineering groups out of Lloydminster. Th ere
are going to bring their young guys down here and we are going to do a little
training session with them.”
A36 PIPELINE NEWS November 2012
Leading The Wayg y
Setting new standards Setting new standards for performancefor performance
Fast Growing Fast Growing CompanyCompany
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for challenging and rewarding work on top-of-the-line equipment in Saskatchewan. for challenging and rewarding work on top-of-the-line equipment in Saskatchewan. We provide competitive wages and stock options for Drillers and Rig We provide competitive wages and stock options for Drillers and Rig
Managers. Interested individuals can drop off resumes in person at our Managers. Interested individuals can drop off resumes in person at our Carlyle Office or fax to 306-453-2508. Carlyle Office or fax to 306-453-2508.
Offices in Calgary, Nisku, and Carlyle, as well Offices in Calgary, Nisku, and Carlyle, as well as Midland, Texas and Mohall, North Dakotaas Midland, Texas and Mohall, North Dakota
Since it was established in late 2008, CanElson Drilling Inc. has grown quickly to become one of Canada’s premier drilling contractors. In addition to building its own drilling rigs, the company is expanding its eet of drilling and service rigs through acquisition. CanElson now operates a eet of 40 rigs.
With operations in Western Canada, West Texas, North Dakota and Mexico, CanElson Drilling Inc. is setting new standards for rig utilization.
With right-sized, purpose-built rigs built for horizontal and resource play drilling and experienced, well trained crews, the company is achieving new records for cost-effective, ef cient drilling operations.
PIPELINE NEWS November 2012 A37
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Lloydminster – Like
father, like sons.
Th at’s the way it is
for Shane and Lonny
Baehl who have es-
sentially taken over the
role of managing Mike’s
Oilfi eld Services Ltd.
under the mentorship
of their dad, Mike, who
founded the com-
pany in Lloydminster in
1979 with one pressure
truck.
“We started to take
over a couple of years
ago on a fi ve to seven
year plan and continue
the family business
that’s been going for
34 years,” said Shane
during a truck-side chat
at the Lloydminster
Heavy Oil Show in
September.
“Mike is a slowly
retiring a little bit more
each year. We don’t
think he’ll ever be 100
per cent out of it, but
he’s slowly winding
down and letting the
boys take over.
“I am in charge of a
little bit of management
and sales and a little bit
of dispatch roles and
duties. It changes every
day.
“Whatever arises,
that’s what we do right
from being in the units
myself to being in
meetings in the of-
fi ce. Whatever the day
consists of and however
how busy it is, we do
whatever it takes.
“Lonny’s been dis-
patching for eight years
– between dispatch and
managing over the last
10 years with manag-
ing the last two years.
As Dad has been slowly
wiggling out, he’s been
experiencing more in
that role.”
Th e succession plan
has the company plan-
ning to build a bigger
shop next to its location
in the Glenn E. Nielson
Industrial in order to
house its growing fl eet
of pressure trucks, water
trucks, tank trucks and
air and foam equipment.
“We are probably
growing at a rate of two
trucks a year right now.
Th at’s just supply and
demand,” said Shane.
Mike’s Oilfi eld
needs more room too,
for its busy chemical di-
vision and delivery fl eet
for de-icing fl uid to the
oil and gas industry.
“We are building a
bigger shop to put new-
er trucks in. Th at’s what
we’re working on right
now. We are buying
more land right beside
our shop and expanding
that,” said Lonny.
“Every year, we say
we are not going to
expand because of man-
power, but we always
seem to fi nd a way.
“We’ve been for-
tunate enough to have
long-term employees
where we don’t have a
big turnaround at our
place.
“It seems like once
we get them, they usu-
ally stay, so that helps us
out quite a bit.”
Mike’s Oilfi eld usu-
ally has a staff of about
35 to 40 employees at
any given time with all
hands on deck since
July when the demand
for their services spiked
after a wet spring.
“It’s fl at out. It was
a slow start this spring
due to the weather con-
ditions, but we’ve been
trying to keep up since
the second week in July,
and it’s been fl at out,”
said Shane.
Mike’s Oilfi eld
covers an area on both
sides of the Alberta and
Saskatchewan border as
far north as Bonnyville
and Elk Point, west to
Vermilion, south to the
Wainwright, Provost,
Macklin and Unity
areas and east to the
Battlefords.
Page A38
Brothers (l-r) Lonny and Shane Baehl have essen ally taken over the role of running Mike’s Oil eld Services from their dad, Mike who founded the business in 1979. The company is a major supporter of hockey and recrea on at all levels in Lloydminster. Photo by Geo Lee
Mike’s Oil eld on a 34-year roll
A38 PIPELINE NEWS November 2012
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S A S K A T C H E W A N ’ S M O S T L U X U R I O U S S P A
Like us on Tweet us on
Mike’s Oil eld Services Ltd. brought this new 2012 tri-drive pressure truck to the Lloydminster Heavy Oil Show in September. The local family-owned busi-ness plans to expand its exis ng shop in the Glenn E. Neilson Industrial Park. Photo by Geo Lee
Page A37“We’ve done busi-
ness as far south as Es-
tevan and as far east to
Winnipeg and up in the
northern B.C. region
and Fort McMurray –
have trucks, will travel,”
said Shane.
Coming to the oil
show during a busy
fi eld season was espe-
cially important for
Lonny who continues
to quarterback the all
important dispatch role
at the shop.
“I am in the offi ce
every day answering the
phones with customers.
It’s just great to actually
meet the people face to
face,” he said.
“Some people I
have known for fi ve
to 10 years, and I talk
to them maybe once a
week and to fi nally to
actually get to shake
a hand and give them
some Mike’s Oilfi eld
shirts and stuff like that
is good.”
Th e new 2012 pres-
sure truck on display
was also a good oppor-
tunity for Lonny to give
visitors a quick profi le
of their oilfi eld services
that include air pressure
and hydro testing.
“We don’t have
vacuum trucks. We’re
mostly fresh water,” said
Lonny.
“We do a lot of
pipeline testing when
new pipelines go in the
ground – air compres-
sors to test pipelines
and also fresh water
and, of course, our
stable foam which
brings sand out of the
wells for better infl ow
for oil companies.”
With the company’s
succession in full swing
and the heavy oil indus-
try demanding more of
their services, Lonny
said it’s an exciting
business to be in.
“Absolutely. It got
more exciting once I
fi nally got to hire my
brother on and work
side by side. It made
everything feel kind of
more complete.
“It’s full circle and
now we’re very busy.”
Shane added that
it’s not very common
nowadays to have a
family business that is
growing after 34 years
and he off ered to share
their formula for success
with our readers.
“Do whatever it
takes, work hard and
have good equipment
and have good people
– the people make the
diff erence that are out
in the fi eld for you every
day,” he said.
Mike’s Oilfi eld is
also a major hockey
sponsor of the Lloyd-
minster Bobcats, Border
Kings and Mike’s
Oilfi eld Oilers and a
supporter of numerous
recreation events.
As a fi nancial spon-
ser, the company earned
the right to put their
name on one of the fi eld
houses at the Servus
Sports Centre.
“We do everything
we can for the size of
us. We do absolutely
what we can, especially
hockey and stuff like
that that our family
is interested in,” said
Lonny.
“We try to do a
little bit for every team
and whenever the com-
munity needs us to step
up, we are defi nitely
right up there doing
that.”
Lloydminster Citizens On Patrol
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Be A Part Of The Solution
For all our info and an Application
to download Requirements are
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PIPELINE NEWS November 2012 A39
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NEWSPIPELINE SECTION B
November 2012
Story and photos by Geoff Lee
Lloydminster – Matrix Well
Servicing is turning heads in the
Lloydminster heavy oil market for a
number of good reasons as its marks
its fi rst year of operations based in the
Glenn E. Nielson Industrial Park.
Th e new local company is a
wholly-owned subsidiary of Western
Energy Services Corp. It began op-
erating last November with just one
internally guyed mobile single service
rig and expects to have 10 of them by
the end of 2012.
In fact, crews were in Edmon-
ton commissioning Rig 6 on Oct.
15 when operations manager Kevin
Winters was asked to explain the
company’s phenomenal growth.
“We’ve got Western behind us
– we’ve got a lot of backing. Th at’s
the only reason we can do it and why
we’ve got 10 rigs,” he said.
“Th is is a new company. Th ey
want to be aggressive.”
Calgary-based Western Energy
also owns and operates Horizon
Drilling Inc. in Western Canada and
Stoneham Drilling Corporation in
the United States.
“Th ey want to grow, but we need
to get a good foothold in Lloyd, and
then we can branch off and expand
and see what we can build from
there,” said Winters.
“We do everything from comple-
tions and workovers to production
work. We are busiest right now with
production work – maintenance is
what it basically comes down to –
pump changes.
“Getting 10 rigs for Lloyd has
taken a little longer than we thought.
It’s hard to fi nd people. Th at’s the
biggest challenge – getting experi-
enced people to come over and work.
“We started last November, and I
came on in March. It’s a tight market
here. It’s local and that’s the biggest
challenge is getting local people.
“You can bring outside people in,
but you have to pay the subsistence
and put them up. Th e rig rates don’t
allow it up here. It’s very competi-
tive.”
Th e Matrix advantage lies in the
technological advancements on their
light weight service rigs that are de-
signed and manufactured by Court-
ney Berg Industries in Linden, Alta.
to work in all four transport periods.
“We’ve come out with all this
new equipment,” said Winters.
“With the lightweight design of
the rigs, we carry more of our equip-
ment on the rig. It makes it easier
and quicker for rig up and more
organized. We have less equipment
moving around on location.
“Our rigs are truck-mounted
service rigs, which is new. People see
one, and they fi gure it’s a fl ushby unit.
Th at’s been our biggest battle.
“We’ve got the new technology –
the X-celerator mounted right on the
derrick.
“Th at’s one of the big selling
features. We can pull continuous or
conventional rod,” said Winters.
“Th ese are rigging up much
quicker with the X-celerator in the
derrick versus the truck mounted
units. It makes us more effi cient and
safer.”
Th e rig engine has an automatic
transmission and is also quieter com-
pared to a conventional rig engine
and it meets new Tier 4 emission
standards.
Th e two man rig or truck cab also
allows Matrix to provide new drivers
with safer work conditions.
“Having that rig cab or that truck
cab there makes it better for driver
training with the new hours of service
laws that we have to abide by,” said
Winters.
Matrix also has plans to build a
new slant rig in 2013 in response to
customer demand.
“We are putting it in the budget,”
said Winters. “All the customers are
asking when are we building a slant
rig?
“CNRL is one of our main clients
– the big one with the slants. Th ey’ve
allotted about 9,000 wells in the next
10 years – that’s 900 wells per year.
“We’ve talked with them. Th ey
fi gure they will add three to four slant
rigs to their fl eet per year to keep up
with their completions, their work-
overs and their abandonments.
Page B2
Matrix Well Servicing opera ons manager Kevin Winters expects his company will have 10 of these new mobile single service rigs by the end of the year. The lightweight rigs can work in all four transport periods and are built on a truck chassis with a two person cab. Each rig is equipped with a truck mounted C-Tech X-celerator on the derrick which eliminates wait mes and third party costs. The unit can pull or run conven onal rod or con nuous rod with no outside source needed.
Matrix off to a phenomenal start
B2 PIPELINE NEWS November 2012
Page B1“A lot of that work is in Bonnyville for the slant
work – between here and Bonnyville. Right now, we
are focusing on Lloyd. We’re going to branch out –
Bonnyville for sure.
“Right now, I’ve got one rig at Mannville work-
ing for Perpetual Energy and those are all horizon-
tal wells.
“We’ve gone as far as Provost and as far as
Mannville. It’s a pretty big area we’ve got here.
“We are trying to get into Husky. We got under
their procurement group, so hopefully, with equip-
ment, we can get in the door there. Th at would
really help us.”
Winters said Western Energy chose Lloyd-
minster to launch Matrix Well Servicing knowing
heavy oil is the future for the service rig industry,
especially in Alberta.
“Th e gas market there really isn’t much of a
market for service rigs anymore,” said Winters.
“It’s all gone to specialized services, either
standalone snubbing or coil tubing or wireline. Th ey
can do it without a service rig.
“Heavy oil always needs maintenance with the
sand and the oil. Th ere is always pump changes. Th e
tubing wears out, the pumps wear out.
“It’s where the future is for service rigs. We’ve
got so many reserves for heavy oil. Th at’s what is
pushing that SAGD stuff with the low gas prices.
“Th e lift costs are so much higher in heavy oil
– maintenance is so much higher. Th at’s why it’s so
competitive with rig rates in town. Everyone wants
the best deal they can get.”
Having truck-mounted X-celerators on all of
their service rigs jumps Matrix near the head of the
pack for cost-conscious oil companies looking to
get the best return from their oil.
“It cuts down a producer’s cost having to wait,
because it’s hard to get a truck mounted unit,” said
Winters.
“Most of the companies do have them, but
they are on separate units. It’s another unit that
they have to have a driver bring out. It’s just much
harder to move.
“With ours, we are set up good with our rigs
and our support truck. We don’t have to tow a
trailer. With our crew truck – we have three units
that we drive instead of having four or fi ve units. It
helps.
“It makes a big diff erence. It’s cost savings.”
Winters spends a lot of his time on the phone
answering customer questions, recruiting new
employees and working in the fi eld himself when
needed.
“I’ve been out pushing the rigs and drilling and
doing it all – roughnecking. We’ve got to do what
we’ve got to do to get her going.
“Th e biggest thing I fi nd in Lloydminster is
that it is such a busy area. Th e competition – I think
there are 17 or 18 diff erent rig companies here –
200 plus rigs.
“Th ere is such a turnaround in hands.”
Winters said Matrix has a health, safety and
environment (HSE) program that emphasizes com-
munication, training and competency.
“With our HSE, we do our own in-house
confi ned space training, and we send them out for
anything they require. We do the best to educate
them the best we can,” he said.
Matrix had four full rig crews on the payroll
in mid-October with new hires in the works to the
crew the new rigs.
“Th e busier it gets, it’s going to attract more
people,” said Winters.
“We are paying top wages and benefi ts are sec-
ond to none. We’re growing. Th ere’s a great future
here with Matrix. We are career based.
“We want people to know that are here to stay.
Th ere’s lot of room for movement to grow with the
company and move up.”
Opera ons manager Kevin Winters removes the cover from the hydraulic controls on this new service rig. Hy-draulic controls also work the C-Tech X-celerator mount-ed on the mast. The Matrix rigs feature the latest tech-nological advancements designed and manufactured by Courtney Berg Industries in Linden, Alberta.
Three units instead of ve
PIPELINE NEWS November 2012 B3
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Story and photos by Brian ZinchukRedvers – You would think that building pipelines on the Saskatchewan
prairie would be easy. Th ere’s no Canadian Shield that requires blasting. Ex-
cavators don’t have to be tied onto dozers to dig on mountains one can barely
walk up. Th e terrain is fl at and generally soft enough to dig on, but not liquid
enough to swallow men and equipment whole like muskeg.
Despite all that, the senior management of Surerus Pipeline Inc. feel the
Enbridge Bakken expansion project for which they are the general contractor
is the most challenging job in Canada right now, particularly when it comes to
environmental concerns.
In early October, the 124-kilometre project was about two-thirds complete.
Th e job is expected to be done in mid-November. Work started Aug. 1, with
the project being run out of Redvers.
Th is is the fi rst foray on a major project this far east for the Fort St. John,
B.C.-based business.
“My father owns it so I was born into it,” said Sean Surerus, vice-president.
He was in Redvers visiting the project when Pipeline News returned for a sec-
ond visit on Oct. 4.
“I started working in it since I was 20. I’ve been full-time since 2001,”
Surerus said.
Prior to that he obtained a commerce degree from Simon Fraser Univer-
sity and an economics degree from Carleton University. In his downtime from
school, he worked with the family business. “I was in the fi eld on the bending/
engineering crew, then I moved into more offi ce positions on the project man-
agement side,” he said.
Asked if it was a training regimen, he said, “It turned into that. It was the
very best opportunity for me.”
“I ran a hoe for a summer, poorly, in our yard in Fort St. John. I moved into
project management right away. I was in camp for a few years.”
Sean Surerus worked in northwest Alberta and northeast British Colum-
bia, north of High Level at a place called Indian Cabins, and in the Tumbler
Ridge area. Page B5
Wrens, American coots and barn swallowschallenge pipeliners
Sean Surerus is vice-president of Surerus Pipeline Inc., a 42-year-old rm that was started by his father, Brian Surerus, with just one dump truck. Now it can tackle up to four spreads at a me, and is currently working on 42-inch pipeline projects. Surerus Pipeline Inc. is the general contractor on the Bakken expansion project for Enbridge.
B4 PIPELINE NEWS November 2012
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PIPELINE NEWS November 2012 B5
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Page B3“We’ve done gas, oil and hydrogen,” he said. “We’ve installed HDPE. We’ve
installed some Fiberspar, but it’s 99 per cent steel, up to 42 inch.
Th e company currently has a spread working on a 25-kilometre project of
42-inch pipe at Hudson’s Hope, B.C. for Spectra Energy, and another 30 kilome-
tres planned this winter for TransCanada north of Fort Nelson, B.C.
“Currently we have three spreads going right now. We can handle two large
and two small spreads at one time. Th is year we’re towards 700 people,” Surerus
said.
Heading up the Redvers spread is Telford Advent, superintendent for the
project.
On Oct. 4, they had 338 people working, plus about 40 subcontractors. An-
other 80 or so people were working directly for Enbridge.
“We’re at peak. We had a general safety meeting in the rink yesterday. It
looked like 500 people,” Surerus said.
Th e company has monthly safety meetings where everyone is called in to
attend. In this case, their numbers were equivalent of roughly half the census
population of the town of Redvers.
“We’re at over three million man-hours without a lost-time accident,” Sure-
rus said, something he attributes in part to their “I Walk Th e Line” leadership
challenge.
Asked how a company two provinces over was able to secure the job, beating
out much closer competition, Surerus said, “It’s not just on price. It’s a number
of factors. We would consider ourselves the best for capacity, price, safety and
personnel."
Th is is the fi rst venture for the company outside of British Columbia and
Alberta, despite being in business for 42 years. Th e company was started by Brian
Surerus. “He’s built it from a single dump truck to a contractor that can do sig-
nifi cant projects for Canada’s largest energy producers,” Sean Surerus said.
In the case of the Saskatchewan job, he noted, “It had to be the right fi t. Th e
economic expansion supported more out-of-province competition.”
With a larger job, the move-in costs are more spread out, meaning contrac-
tors from further afar are more competitive.
“Th e size of the project becomes more appealing,” Surerus said.
Most challengingAdvent said, “I think it’s a challenge with the terrain. Th is is the most chal-
lenging job in Canada right now.”
This is the most stringent environmental
consideration we’vebeen a part of.
-Sean Surerus, vice-president,Surerus Pipeline Inc.
Surerus Pipeline Inc. lls a rink for a safety meeting
”He noted there were 195 wetlands to cross, with 186 to 190 bores, another
150 foreign crossings.
“Th is is stop and go,” he said.
Surerus added, “It’s the environmental consideration and the commitments.”
“Th ere was much more water when we got here,” Advent said. “You don’t
even make a mark in a wetland. A track can’t touch water here.”
Indeed, when travelling along the right-of-way, wetlands you can walk across
without getting your boots wet are being bored.
“It’s very stringent, Enbridge’s commitment,” Surerus said in reference to
Enbridge’s commitments to the National Energy Board when the pipeline se-
cured its permits for the project.
For instance, before work can progress in an area, it has to be swept for
migratory birds. A sweep opened a seven day window. If there’s a bird on the nest
on the right-of-way, they have to move around it.
“We had 27 on this job,” Advent said. “We had buff er zones on a wren,
American Coots, a barnswallow, American golden fi nch, a dove, a grebe...”
Th e Amercian coots required a 55 day window, as an example.
“One (bird) just refused to leave,” Advent said. A barn swallow was off the
right-of-way, but within 100 metres of it.
Page B6
B6 PIPELINE NEWS November 2012
Page B5Asked how much going around all these birds cost, Surerus smiled. “Price-
less,” he said.
In some cases they had to build shoefl ies (temporary access roads) around.
In other cases, mats would do.
“Th is aff ected us mostly on the right-of-way (crew),” Advent said.
If birds weren’t enough, there were also concerns around northern leopard
frogs.
Will this be the norm? Surerus said for wetlands, this sort of thing is now
par for the course.
“Th is is the most stringent environmental consideration we’ve been a part
of,” Surerus said.
Accommodations
An accommodations strategy was important for Surerus Pipeline. Between
their RV park, local rentals, rooms and hotels, the town of just under 1,000 was
able to handle the massive infl ux.
“We built a 98-unit RV park,” said Sean Surerus. “It’s temporary. We’re
able to pull it out and move all the utilities.”
“It’s really worked out well,” said Advent. “It’s so quiet at night, it’s amaz-
ing.
“We put in a laundry. Th is piece of property had the right slope. We didn’t
have to do much digging.”
Th e temporary RV park had 30 and 50 amp electrical service and full
hookups. A large water tank could be seen in the centre of it.
“Th e RM of Antler was really helpful. You can’t say enough about this
community. It’s been an amazing welcome,” Surerus said.
Th ere were approximately 40 local First Nations people from Saskatch-
ewan and Manitoba working on the project. However, they noted there was
not a lot of success in recruiting local people to work with them. Th e reason?
Th ey’re already working.
“We weren’t anticipating the economy being so hot here,” said Surerus.
“Locals who passed requirements were generally hired.”
Th ere simply weren’t that many available.
Telford Advent may be the superintendent for a crew large enough to
fi ll a hockey rink, but he got his start in pipelining as a labourer back in
1966. He was soon an operator.
“I ran dozer, hoe, boom, just about anything that has tracks or wheels
on it,” he said in the Surerus Pipeline Inc. main offi ce shack in Redvers. “
“I’ve done some huge projects. Th e majority of the work I did was for
TransCanada, Union Gas and Nova."
He fi rst became a foreman in 1981, looking after ditch crew. “I’ve
done lots of cleanup and river crossings,” Advent added.
By 1984 he was an assistant superintendent. Two years later he be-
came a superintendent.
Pipelining is often a family business, and Advent’s wife Peggy is offi ce
manager for the project. “A lot of people have family members on the
same project,” he noted.
“Th e interesting part of this business is the coating crew always comes
from the East Coast,” he said.
Th ere are small centres of excellence all over. Drillers often come from
Roblin, Manitoba. Ditcher operators frequently orginate from Wapella,
Saskatchewan, he said.
Advent personally hails from Stratton, Ontario.
Advent worked as an inspector in Libya for a short time. “It really
makes you happy to be a Canadian,” he said.
Working in Libya makes you happy to be Canadian
Telford Advent has been pipelining since 1966, and has been a superintendent since 1986. Here he makes a brief stop in the warehouse, where semi-trailers full of supplies keep the opera on in mo on.
Three million man-hours without a LTA
PIPELINE NEWS November 2012 B7
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Redvers – Few women are found working in the fi eld in the oilpatch, fewer
still as qualifi ed tradespeople.
Pipelining, however, has more women working in the fi eld than drill-
ing rigs. Out on a wind-swept prairie east of Redvers, one could fi nd Jennifer
Bailas working for Surerus Pipeline.
Bailas is a journeyman B-pressure welder who lives on an acreage near
Calder, east of Yorkton near the Manitoba border. She went to SIAST in 2001,
and worked in shops at fi rst. Her past experience includes working on rail cars
at Moose Jaw and with agricultural equipment manufacturer Dutch Industries
in Regina.
She rigged up in 2007, and has been a pipeline welder ever since.
“I’ve had my truck for fi ve years,” she said during a coff ee break.
Bailas is a rare breed indeed. “I have yet to meet a woman welder with a
truck,” she said.
Her company is known as Bullzeye Welding. Her e-mail handle is fi tting:
welderchick83.
Her fi ancé, Riley Stacey, is an excavator operator who was working on one
of the boring crews.
With a six-days-on, one-day-off work week, they’re close enough to home
to make it there each Sunday.
Bailas has had a few challenges. For instance, she’s a lot smaller than your
typical welder, making it tough to fi nd work clothes.
“Usually I have to order stuff in,” she said.
“I like being out here. I wouldn’t want to do anything else,” she said as the
coff ee break ended and she got back to welding.
Glancing at her business card, one fi nds an ap-
propriate tagline for a welder. At the bottom of the
card she has printed, “Stick ’em up.”
Jennifer Bailas of Calder, Sk has been run-ning her own welding truck for ve years now. She was seen here working with Sure-rus Pipeline Inc. on the Enbridge Bakken expansion project.
Stick ’em up!
B8 PIPELINE NEWS November 2012
By Brian ZinchukBengough – Working out of Bengough, Ar-
nett & Burgess Pipeliners is working on the most
eastern spread of the Vantage Pipeline project.
Th e company, in business for 55 years, has been
expanding its operations in Saskatchewan. Th is is
a major project for them in this province, with 99
kilometres and approximately 149 employees on
site, not counting subcontractors.
Th e Vantage Pipeline is a greenfi eld project.
Th e 10-inch line is meant to carry liquid ethane
from Hess Corporation’s natural gas process-
ing plant near Tioga, North Dakota through
Saskatchewan to interconnect with the Alberta
Ethane Gathering System (AEGS) near Empress,
Alberta. Empress is right on the Saskatchewan/
Alberta border, where the South Saskatchewan
River crosses into Saskatchewan. Th e pipeline is
700 kilometres in length, with a total distance in
Canada of 578 kilometres.
Arnett & Burgess Pipeliners (A&B Pipe-
liners) has the easternmost spread, with M&N
Construction doing the middle spread and Kidd
Construction handling the westernmost spread.
Work started in mid-August for A&B with
the setting up of their yard on the south side of
Bengough. Dirt started turning on Sept. 10. Pipe-line News visited the spread on Oct. 11, just as the
ditch and lowering in crews were kicking off . Th ey
will have up to 200 people, depending on the day.
David Schwab is a senior construction man-
ager for A&B, but he won’t be the only Schwab
you’ll see on the job. His brother Ken Schwab is
the project superintendent. He mostly handles
offi ce work, while Ray Fontaine is the fi eld super-
intendent. Th ey split the role of superintendent,
which is more commonly a one-person job.
“I look after most of the major projects,” Da-
vid said while inspecting the line in his truck. He
was down for a visit from their Bashaw, Alta., fi eld
offi ce.
Arnett & Burgess Pipeliners tackles Vantage Pipeline project
Wetlands like this are typically bored now, whereas 10 years ago, they would have almost certainly been open cut.
“By mid-November, we should be wrapped
up,” he said.
Th e project very closely follows existing
construction – roads and pipelines. Whereas some
pipelines will cut across fi elds at an angle, this
right-of-way has many 90 degree turns as it hugs
the roadways. Th e ditch centreline is often within
throwing distance of the roads.
“Pretty much all the wetlands are bored,” said
David. “Open cut wetlands doesn’t happen any-
more.”
Th e environmental rules that came with
getting the National Energy Board permit have
evolved over time. Dealing with wetlands is much
more stringent than in the past.
“Everybody’s become a lot more environmen-
tally conscious,” he said. “Th ere’s been a realization
over the last ten years that diff erent wetlands heal
diff erently.
“We have the rules, and have to follow them,”
David said. “When they get the permit, that is
law.”
Bengough is roughly the halfway point of the
project, with the right-of-way passing just a few
miles to the south, heading in a west-by-northwest
direction.
Th e community opened up vacant lots for
use by pipeliners as mini-RV parks. As you drive
through town, here and there one comes across a
handful of 5th wheel trailers, the preferred accom-
modations of most career pipeliners.
“Th ese local people have been awesome,” Ken
said. He noted how the power has been upgraded
for the facility they are renting, the home for the
town’s spring festival. Th ey used the money from
the rent to upgrade the facility, meaning genera-
tors will no longer be needed during the festival.
High school students even fi lled sandbags for
the company as a fundraiser for next-year’s gradu-
ation.
Page B9
PIPELINE NEWS November 2012 B9
Page B8“Bengough has been great. Th ey welcomed
the crews with open arms,” David said. “Th ey’ve
adjusted store hours. We’ve hired local guys, too.”
People have come from across Canada to work
on this job. Asked about attracting staff , David said.
“It’s tough all over. It’s a challenge. It’s tough to
attract good people. We try to hire good supervision
that has good connections and know people.”
Th at could be evidenced on crews like the main
gang, the principle welding crew, where the weld-
ing foreman brought together his welders, and will
be taking many of them on his next job, in British
Columbia.
A&B in recent years has set up shop in Regina.
Th ey were renting, now they have bought a location.
“We’re putting down roots,” David said.
Th e current Vantage Pipeline project is the
company’s largest in Saskatchewan since it tied in
600 wells in the Fox Valley and Richmond area.
Th ey also have done extensive integrity work for
TransCanada.
Like much of the industry, they have seen a
shift from gas to oil. David said, “We’re working
where we get work. Pipelines aren’t any diff erent
from gas to oil. We’re hardly doing any HDPE
(plastic) for shallow gas. We had done lots of it. In
the last two years, it was pretty much nil.”
David and Ken Schwab, senior managers with A&B Pipeliners, come from a large family. Half of the 11 children ended up as pipeliners at one point or another. Five are still pipelining – Ellen, Wayne, David, Ken and Michael.
“My sister Ellen got started in 1972,” Ken said. “She is inspecting for TransCanada now. She’s been a
labourer, she ran a wrap machine for a while. I used to, too. Somebody came out with yellowjacket
(coating) and put me out of work, so I went to sideboom.”
David, Michael and Ken Schwab started with A&B during the 1985-86
season. Michael is now doing pipe-line consulting.
Wayne Schwab is a consul-tant. Doug Schwab pipelined a
little, while Marilyn did it for one year.
“And it’s all been pipe-lining, not rigs,” Ken said.
Ken and David were both born in Estevan. Th e family ended up in Assini-boia and then Camrose by the time Ken was 10.
“David’s been steady. I left for consulting for fi ve years and then kind of fell back into it,” Ken said.
The pipelining Schwabs
David Schwab is a senior construc on manager with A&B Pipeliners.
Bengough opens up lots for pipeliners and their RVs
B10 PIPELINE NEWS November 2012
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By Brian ZinchukBengough – After 20 years working with XL
Foods, Tim Anderson found himself a boring job.
Literally.
Anderson is a boring operator working with
Big Bore Directional drilling, a subcontractor for
Arnett & Burgess Pipeliners on the Vantage Pipe-
line project near Bengough.
“I was a maintenance foreman in the slaughter
industry – XL Foods, but not the one in Brooks,
the one in Calgary.”
Anderson calls Didsbury, Alta., home.
He wanted a change, so he has spent the last
three years as a driller.
“I enjoy it. I don’t mind being away. I was home
for 20 years,” he said.
“I’m a plumber/outfi tter by trade. I used to do
residential and commercial plumbing and gas.”
Tim Anderson went from working as a maintenance foreman at a meat packing plant to opera ng a direc onal boring machine on pipelines. Photo by Brian Zinchuk
Working at a boring job for three years
PIPELINE NEWS November 2012 B11
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Bengough – It’s pretty common to run into
family members on a pipeline. For the Van Dorps,
they’re even working on the same crew.
Henry Van Dorp could be found marking
centrelines on joints of pipe, part of the measur-
ing crew. His son, Jordan was running a bending
machine just a few miles behind.
Each joint is roughly 19.75 metres long, but not
all.
“You have to watch,” said Henry.
In recent years he’s worked in Cold Lake,
Whitecourt and Fort Nelson. Prior to that, home
was Ontario, where frankly, there wasn’t a lot of
work.
“I was in Ontario, doing nothing. My son Jor-
dan got me the job,” he said.
Henry worked on farms, and did maintenance
work. “I started out as an autobody mechanic. I did
maintenance on farm implements,” he said.
He took a heavy equipment course in Ontario
as well.
“It was a depression out there, not a recession,”
Henry said.
“It’s good. It’s fresh air. Th e air in Ontario is
polluted, especially in summer.”
At the bending machine, Jordan said “Th ere’s a
lot of hills. It’s nice for bending – it’s not so boring.”
At 25 years old, Jordan has been pipelining for
fi ve years. Prior to that, he played hockey at Col-
borne, Ont.
Bending machine operator Jordan Van Dorp bends the pipe to match the contours of the land. He follows marks in-dicated by the bending engineer.
Father and son on the same crew
Henry Van Dorp, le , Ma Foley and Sherri Nesvold mea-sure the pipe and place stakes indica ng where it should be placed along the centreline of the ditch. The right of way stretches o to the horizon.
B12 PIPELINE NEWS November 2012 I
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Weyburn – Since coming to
the area in 2007, Weyburn-based
Rearden Well Servicing has grown
steadily and added its fourth rig in
June 2011, and built an offi ce and
shop this year.
Rearden is privately held by a
small group of local investors.
Curtis Neiszner is vice-president
of operations. He started working
rigs at 22 years of age and has worked
his way up the ladder to his current
role. He’s been working on the rigs
for 17 years, all on service rigs.
His wife, Sherri Neiszner, joined
the company in 2010 as the corpo-
rate administrator. Service rigs have
always been a part of her life.
“My dad has a rig – Apex Well
Servicing in Midale. Th at was my
whole life.”
As for her own experience Sherri
said, “I worked at Newalta for 16
years in the offi ce.”
Curtis was born and raised in
Weyburn. Th e two have been married
15 years.
Describing Curtis’ initial involve-
ment with Rearden, Sherri stated,
“Curtis worked with some of the
shareholders and they approached
him. Th ey wanted somebody here to
look after things.”
Page B13
Cur s Neiszner is the vice president of opera ons of Rearden Well Servicing. Yes, that is a whitetail deer European mount on the front of the rig, courtesy of toolpush Ma Halkyard.
Steady growth for Rearden Well Servicing
The crew of Rearden Rig 1 prepare to run pipe down a well near Stoughton.
PIPELINE NEWS November 2012 B13
Page B12Th e company has been run out of the Neiszner home until this year, when
the company’s growth required expansion to a purpose-built offi ce and shop in
the Weyburn Industrial Park.
All four of their rigs are free-standing double-triples which allows them to
service the deepest wells throughout southeast Saskatchewan.
“We’ve been steady. Last year was quite slow due to the wet weather,”
Sherri said.
“Our rigs follow certain companies.”
Two work for one of the larger companies in the area, the third works for
another larger producer, and the fourth splits its time between two smaller
junior producers.
A total of 23 people work for Rearden, of which nearly all are local. “We
did have some imports from Quebec, but they’ve moved on,” she said.
“We have a few employees that have been here since the beginning,” Sherri
added.
One of the advantages of being in Weyburn is the high number of service
rigs. Th at means there is a mobile workforce from which to draw employees.
“Attracting good people is harder now than fi ve years ago,” she said. “Th at’s
true in all business. We do a lot of promotions from within and build on it. Of
the fi rst fi ve guys who started with the company, four are still here.”
All those four are now toolpushes or drillers.
In a move that’s getting pretty common for southeast Saskatchewan
oilfi eld service companies, the company has gotten into the accommodations
game. “We have three suites we rent out to our guys.”
Indeed, the upstairs of the shop was designed to be used as living quarters
if necessary.
“I believe what sets us apart from other service rig companies in the area is
we’re very family-oriented,” Sherri said. Each year the company takes everyone
– husbands, wives, kids, and they go skiing in the mountains for on Family Day
weekend in February.
“We believe we need to get back to our families,” she concluded.
Ma Halkyard is a toolpush on Rearden Rig 1.
Chad Gri on releases the elevators on a sub.
B14 PIPELINE NEWS November 2012
Redvers – If there’s one thing constant on the Saskatchewan prairie, it’s
wind. Th e welders working for Surerus Pipeline on Enbridge’s Bakken expan-
sion project have had more than their fair share this fall.
Jeff Trout of Saskatoon is the pipe gang foreman on the job. Th e pipe gang,
also called “main gang” is the crew of welders, welders’ helpers, spacers, side-
boom operators, labourers and other workers that turn the individual joints of
pipe into a pipeline line. On this job, there were 40 on Trout’s crew, with 11
welders including the repair welder.
Th e welders move along in their trucks from joint to joint. Th ese trucks
typically have custom-built service bodies or truck bed inserts to house their
welding machines, grinders, acetylene torches and other tools.
In factories, parts move past welders on the assembly line. On pipelines,
the welders move past the parts, in essence forming a rolling assembly line.
Page B15
Combatting the wind
To block the wind, these welders are surrounded by plywood wind boards.
PIPELINE NEWS November 2012 B15
Page B14Th is job is too small
to use mechanized
welders, sometimes
referred to as “bugs,”
according to Trout. As a
result, it’s a stick weld-
ing job.
“We’re using in-
ternal clamps, though,”
Trout said.
Internal clamps are
like a robot that travels
inside the pipe. When it
reaches the end, it locks
the two joints into place
so that the welders can
establish a bead. Th e
welding in this case was
done externally.
Much of September
was spent coping with
the strong winds. “We
got winded out yester-
day. We can’t shut down
every day,” Trout said.
“It’s not just breezes, but
50-60-70 kilometre per
hour winds.”
How do they com-
bat it?
“Lots of lumber –
wind boards, doughnut
boards, umbrellas. It
seems to be working,”
was Trout’s response.
His crew was a mix-
ture of Saskatchewan
and Alberta hands, all
name-hired.
“Th ey’re paying
well. A lot of guys want-
ed to be on this job,” he
said. At 124 kilometres
long, it’s considered a
good job, he noted.
Trout grew up in
Estevan. He started
working for Prairie
Pipelines at the age of
18.
He has been work-
ing on the pipe gang
since 1986, starting as a
helper, then a labourer,
operator, spacer and
strawboss.
“I’ve been a foreman
for fi ve or six years,” he
said.
He smiled and
added, “Sometimes
I’d like to go back and
run boom. Th ere’s less
headaches.”
“I made my bread
and butter for 20 years
in Alberta. Now Sas-
katchewan is booming.
Until three years ago, I
can’t remember when I
last worked in Alberta,”
Trout concluded before
getting back into his
truck and catching up
with his crew.
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Wind has been a constant challenge for Je Trout’s main gang welding crew. Trout has been working on the main gang crew with various pipeline companies since 1986.
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B16 PIPELINE NEWS November 2012
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This sec on of right-of-way shows some of the di erent stripping techniques used to minimize environmental damage. At the top of the hill, bucket width stripping has taken place, with the topsoil preserved on plas c tarps at the edge of the right of way. Photo by Brian Zinchuk
Finding places to put the dirtBengough – Th ere’s something you soon learn as a pipeliner: no matter how much space you are
given to put your dirt, somebody will eventually fi nd a reason to want more.
Th at’s one of the challenges Jeff Nowlan gets to deal with each day.
Nowlan is one of two assistant superintendents for Arnett & Burgess Pipeliners, one of the con-
tractors on the Vantage Pipeline project. Earl MacEachern is the other. Nowlan takes care of the front
end of the job, while MacEachern handles the back end.
If anyone knows about where to put dirt, Nowlan is probably one of them. He’s going on 19 years
of pipelining, most of it spent doing dirt work.
“I run hoe. I ran wheel ditcher until three years ago. I have my own wheel trencher, a 9200 Buck-
eye. Th ere’s about six in Canada. It’s parked in the Hat,” he said in reference to Medicine Hat, where
he’s based.
His personal company is called Jbers Trenching Enterprises Ltd. However, on this job, he’s
working in a management capacity, not in a dirtmover capacity.
Wheel ditchers are the queen of the ditch crew. In good straight going with few rocks, they can
fl y past excavators. But a lot of rock results in picking up the wheel and walking it down the line.
“Th e fi rst 20 kilometres are mostly rocks and hills,” Nowlan said. “From (road) 214 west, it’s
not bad,” he said.
One feature of this job is the numerous changes in stripping, from full width to minimal
disturbance. In some areas, they have triple lifts, meaning multiple layers of topsoil and sub-
soil must be stripped and kept separate by one metre, always a challenge given the amount
of workspace available.
Nowlan pulled out a map showing the variety of stripping techniques used in the
fi rst stretch. It’s a lot.
Th e fi rst few kilometres have many changes in terrain that would be consid-
ered quite hilly for southern Saskatchewan, and with plenty of rock. Where
the ditch crew was working on Oct. 11, near the project kickoff , there was
enough rock that the pipe had to be wrapped in yellow rock shield. It’s
a rubber matting to protect it from being damaged by rocks when the
trench is backfi lled.
Nowlan has been in Medicine Hat since 1999. He grew up in
Miramichi, N.B. Upon completing high school, he moved to
Calgary and started pipelining.
He’s been married for 17 years and has two kids, eight
and 15 years old.
Assistant superintendent Je Nowlan shows the variety of stripping techniques required on the rst part of the job which turned out to be hilly,
rocky terrain.
PIPELINE NEWS November 2012 B17
Ph (306) 634-2336 [email protected]
Box 490 (477 Devonian St.) Estevan, SK S4A 2A5
www.independentwellservicing.com
For 8 years of dedicated service we are proud to recognize
Jeremy Rubiletz - Rig #1 (Rig Manager)
Jamie Leptich - Rig #4 (Rig Manager)
Darren McCutcheon - Rig #5 (Rig Manager)
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Jason Huber - Rig #7 (Rig Manager)
Our People Are Our Most Valuable Resource!
A keen eye for the lay of the land
Sheila Klym, holds a stake for Ed Fornal to line up on with his eye level.
Bengough – You might think Saskatchewan is
pretty fl at. It’s not. For every slight rise or fall in
the land, large pipelines need to be bent according-
ly using a large bending machine. But before that
can be done, the bending engineer, with his keen
eye for subtle changes in the land, goes to work.
Ed Fornal is the bending engineer on Van-
tage Pipeline’s Arnett & Burgess spread, near
Bengough.
“We’re making the pipe fi t the contour of the
land,” he said.
“For roads, or bores, you go deeper."
Th e sags and overbends and sidebends of the
pipe have to match the land exactly, otherwise it
will create a stress point that could eventually lead
to a failure, something no pipeline operator wants.
A sag is a dip in the land, an overbend is a crest. A
sidebend is a lateral curve, where the right-of-way
curves to the left or right.
And to throw something of a curveball into the
equation, sometimes there will be a sag or overbend
right at a sidebend. Th e result is a combination
bend.
It’s with this in mind Fornal pulls out his trusty
eyelevel. It’s akin to a surveyors transit, but is hand-
held and fi ts in your pocket. As you look through
it you line up the built-in spirit level’s bubble. A
gauge then gives you the degrees up or down.
From Bruce, Alta., Fornal’s been pipelining
since 1971, starting at the age of 20.
“We just came off a 42-inch job at Hudson
Hope, B.C. with Surerus. We’re going back to Fort
Nelson for more 42-inch.
Th e current Vantage project has plenty of bores
and native prairie to deal with “Excessively more,”
Fornal said. “It does slow everything down.”
Compared to working in B.C., he said, “It’s
short and choppy instead of long and high.”
Page B18
B18 PIPELINE NEWS November 2012
get Hitched
Bending engineer Ed Fornal uses he eyelevel to measure exactly how much the pipe must be bent to match the landscape.
Page B17
Th e progress was slow at fi rst, with lots of short
hills, but by Oct. 11 he said, “We got 6 clicks (kilo-
metres) under our belt yesterday, and six today. We
were lucky to get two in that bad stuff .”
Indeed, there were two bending machines
following him, as opposed to the usual one. “We
geared up so we can get footage,” Fornall said.
He had two helpers with him. Samantha Mohr
is from the Quebec side of the Ottawa valley. Sheila
Klym is from Lafl eche, Sask. For both it was their
fi rst pipeline job.
“He’s a good boss. He trains you, puts you
under his wing,” said Klym, whose prior job as a
nursing assistant.
“It’s great outdoors. You get lots of exercise, and
it keeps you in shape, let me tell you.”
Mohr said, “I just fi nished school, four years of
business college.”
She’s not sure what she wants to do yet, notng
she majored in marketing, but started in accounting.
Her boyfriend is running a sideboom on the
same crew, a few miles back.
Every rise and fall in the landscape is matched by the pipe
PIPELINE NEWS November 2012 B19
Crude Oil & Saltwater Transfers
Hot Fresh Water
Access To Fresh Water Available
Freshwater Hauling
Service Work
Estevan – Sun Country Well Servicing Rig 8 could be found working very
close to the U.S. border. Th e site was a fl urry of activity as it was prepared for a
frac. A toolhand from a downhole tool company was on the job, as was a power
tong hand. On the far side of the lease, trucks buzzed around, bringing in and
then spotting 400-bbl. tanks.
And in the middle of all this was rig manager Brad Markham, a 28-year-
old who grew up in Yorkton, but for the last seven years he called Estevan
home.
He has been a rig manager, also known as toolpush, for a year now.
Markham has been with Sun Country for three years.
“I started drilling in 2008 with Precision Well Servicing,” he said. He hired
on with Sun Country’s Rig 4 and was drilling full time. He started pushing
with Rig 8 in September 2011.
“We’re picking up four-and-a-half inch casing and running a tie-back
string, latching onto a liner,” he explained as the hands started running pipe.
Sun Country Well Servicing Rig 8 manager Brad Markham records pipe measurements before his crew begins running pipe down the well.
A busy place, this service rig
PIPELINE NEWS November 2012 B21B20 PIPELINE NEWS November 2012
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Story and photos by Brian ZinchukBengough – Looking for a diff erent life, Den-
nis Lavallee found himself coming out west, where
he is now a pipeline tie-in foreman with Arnett &
Burnett Pipeliners. Th e current job is the Vantage
Pipeline project.
Lavallee is originally from a little town called St.
Charles, Ont., about an hour east of Sudbury and a
little south. Calgary is now his home.
Lavallee has spent roughly a decade pipelining.
Prior to that he had a rather unique job in the fam-
ily business.
“I worked for my dad doing erection and demo-
lition of large factory equipment,” Lavallee said. “We
once moved a large carpet dye cooker that was 500
feet long, 40 feet wide and 30 feet tall.
“We did Uniroyal’s boiler room when I was
young.”
Lavallee is just turning 30.
He’s worked on pipeline projects varying from
one-inch to 52-inches in diameter. Most of his ex-
perience has been in big-inch projects. However, he
decided he wanted to work for smaller companies.
Lavallee was looking after a road bore crew in
early October until his tie-in crew fi red up. Th ere’s
plenty of work for both, with about 190 crossings,
and “way more tie-ins,” he said.
“Th e right of way goes like this,” he said, waving
his hands up and down.
Th e project is a 10-inch line. Th e larger the pipe,
the longer it takes to weld. Th is size is comparatively
small compared to a 16, 24 or 36-inch line.
“If everything goes good, you can do a tie-in in
an hour. If it doesn’t go good, you can get one or two
in a day,” Lavallee said. “It can be tricky on some
jobs.”
Tie-ins can be Tie-ins can be quick, or not quick, or not so quickso quick
Foreman Dennis Lavallee, in the green hard hat, takes a look at the drag sec on in the ditch. Once the drag sec- on is in place and the mainline pipe is in posi on, e-in
welders will join the two roughly were Lavallee is stand-ing.
Once in posi on in the bell hole, the pipe will be dragged by the direc onal boring machine directly under the posi- on of the camera, under the road un l it comes into the
bellhole on the other side.
The excavator operator lowers the drag sec on into the large bell hole. A bell hole is an excava on designed to be safe for workers to enter. This is done by providing ad-equate slope to the sides and by digging stair cases along the side of the trench.
Using tag lines, workers are careful to ensure the drag sec on does not damage the pipe that will go into the ground a er the drag sec on.
The drag sec on, the piece of pipe that will be pulled under the road by the boring machine, is li ed over the welded pipe.
Dennis Lavallee is a e-in foreman for A&B Pipeliners
B22 PIPELINE NEWS November 2012
3D3D MAINTENANCEMAINTENANCECell numbers: Cell numbers: 483-8024, 483-7024, 483-8148483-8024, 483-7024, 483-8148
Home number: 486-2143 • Fax: 486-4855Home number: 486-2143 • Fax: 486-4855Box 12 Frobisher, SK. S0C 0Y0Box 12 Frobisher, SK. S0C 0Y0
[email protected][email protected]
UNRESERVED PUBLIC AUCTIONS
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2– 2011 JOHN DEERE 9630T
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One Woman’s Perspective on Life, Liberty and the
Pursuit of Land Locations By Nadine Elson
Shifting Shifting GearsGears
It was a glorious
day, the fi rst day of the
fall season, and I was
on top of the world.
Literally on top of the
world! I was standing
on the rig fl oor of En-
sign’s ADR rig Big Sky
650 located at that time
near Pierson, Man.
Th e sun shone
brightly and warmly
after the cool night,
and the wind was
nearly non-existent,
only slight breezes
moving my hair peek-
ing out from beneath
my hard hat. I looked
out beyond the railing
and could see for miles
in all directions, the
land stretching out fl at
before me. Harvest was
well underway, and the
landscape was golden
colored.
I couldn’t believe
my luck. Th e week
before I had been on
Panther Drilling’s new
Rig 4, and now here
I was on an ADR rig.
Along with members
and guests of our local
Desk and Derrick Club,
I was on a tour of this
rig owned by Ensign
Drilling.
I had never even
heard of an ADR rig
prior to the spring
when Desk and Derrick
member Denise Tay-
lor of Ensign Drilling
began making arrange-
ments for the tour.
ADR stands for Auto-
mated Drilling Rig. It
is a new technology. A
mechanical pipe arm
takes the place of two
human roughneck posi-
tions on the drilling rig.
Denise retired from
her Human Resources
position with Ensign
in July but is still active
with the club. Members
met in Estevan on that
Saturday morning and
drove out to Pierson
in a convoy of vehicles,
picking up members
along the way in Bi-
enfait and Oxbow. We
arrived at the Big Sky
ADR rig mid-day, and
outfi tted in hard hats
and safety boots, we
completed the sign-in
procedures and safety
orientation.
Denise introduced
us to Curtis Hilstrom,
rig manager, who would
guide us around the rig.
I wondered about his
lineage briefl y, but not
for long. Denise told us
he was from Estevan,
the son of Merv and
Isla Hilstrom, whom I
knew. I had curled with
Isla for a few years in
the Estevan ladies’ curl-
ing league, as had my
mother, and had played
badminton against
Merv in a badminton
club.
Our Desk and
Derrick membership
spent several hours
very enjoyably explor-
ing the rig. Curtis was
a knowledgeable tour
guide and I know that
I was not the only one
who enjoyed the tour
and the chance to see
up-close and personal
the workings of the
rig. Although my job
often entails deliver-
ies to drilling rigs, I
do not often have any
contact with anyone
other than the loader
operator assigned to
unload my truck and
trailer, and of course,
the drilling company
representative who
signs the ticket. I have
only occasionally been
allowed on a drilling
rig, so I relished this
opportunity to ask
questions.
Page B23
The key to business success
The Desk and Derrick Club visited Ensign 650 recently.
PIPELINE NEWS November 2012 B23
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Clariant Oil Services: Calgary: 403-262-7846. Drayton Valley: 780-621-2456. Estevan: 306-634-7362. Lloydminster: 780-871-0700. Slave Lake: 780-849-4722. Taber: 587-220-4540. Web: www.oil.clariant.com. Twitter: @ClariantOilSvcs
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Page B22
Our Desk and Derrick membership spent several hours very enjoyably
exploring the rig. Curtis was a knowledgeable tour guide and I know that
I was not the only one who enjoyed the tour and the chance to see up-
close and personal the workings of the rig. Although my job often entails
deliveries to drilling rigs, I do not often have any contact with anyone
other than the loader operator assigned to unload my truck and trailer,
and of course, the drilling company representative who signs the ticket.
I have only occasionally been allowed on a drilling rig, so I relished this
opportunity to ask questions.
Curtis may have been surprised by the number of questions that we
all asked, but he was very patient with us, and unfailingly polite. His
mother would have been proud. I know Denise was very proud of her HR
work with Curtis.
As I drove home from Pierson, I reflected on the last several hours. A
phrase that Curtis had used popped into my head. At the time of intro-
ductions, Denise had indicated that Curtis, although relatively young, was
well-qualified for the position of rig manager. One of our members had
asked him how he progressed so quickly into the position of rig manager,
and he had answered, “Never say no!”
“Never say no!” That seemed simple enough. But simple concepts are
often complex. At the core of that statement, was a man willing to say no
to himself in order not to say no to the company. I have no doubt that his
ability to delay gratification, the saying no to himself, was the real key
to his success in being promoted to rig manager. I am not surprised. He
most likely learned that as a child at the knee of his hard-working, farm-
ing parents.
“The ability to delay gratification in the short term in order to enjoy
greater reward in the long term is the indispensable prerequisite for suc-
cess.” Brian Tracy - Entrepreneur, business coach and author.
So you want to achieve business success? It ’s simple to say. Not so
easy to do, though. Be a yes man or woman. Never say no!
Nadine lives in Estevan with her husband and family, and shifted gears a few years ago, becoming a hot shot driver for the oilpatch. Her people skills are put to good use in the patch as she delivers the goods quickly and eff iciently. Contact her at [email protected] with comments or questions.
Tack weldWelders with Arne & Burgess Pipeliners make the ini al tack weld while the spacer, in orange, watches. Photo by Brian Zinchuk
B24 PIPELINE NEWS November 2012
301 Kensington Ave.Estevan, SK.
Phone: (306) 634-3616
3902 - 75th Ave.Leduc, AB.
Phone: (888) 835-0541
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Shaun Kozak, Mineral Manager 306-790-4352Chad Morris, Surface Manager 306-790-4363Celeste Farrow, Surface Coordinator 306-790-4378Laurie Bielka, Assistant Branch Manager 306-790-4360Crown Sale Inquiries 403-261-6580Main Line: 306-359-9000
Scott Land & Lease Ltd.
Bengough – It’s hard to fi nd people, so it’s best to keep your crew together.
Th at’s how Ross Fraser feels. Fraser is the welding foreman for both the
main gang and poor boy crews working on the Vantage Pipeline project with
Arnett & Burgess Pipeliners.
He’s got 10 welders with those two crews, another handling repairs, and
one more doing tie-ins.
Th e welders can be seen towing trailers behind their trucks with tents con-
structed over them. Th ey have been used to combat wind, which can play havoc
with your welds. “In ’91 we used them. If you’re going to weld in Saskatchewan,
it’s a good idea,” he said.
Th is is Fraser’s fi rst job with A&B. “We just came from Hudson Hope,
B.C. Th is is pretty fl at,” he said. Page B25
Tents towed on trailers and hung over the pipe are one way to combat the strong winds on the Saskatchewan prairie. Wind and welding generally don’t mix well.
Photo by Brian Zinchuk
Keep your crew together
PIPELINE NEWS November 2012 B25
Page B24 Th e project is using standard grade mild steel pipe. In other
words, nothing out of the ordinary.
Fraser has been pipelining for 35 years, primarily in Western Canada.
“I’ve been to Russia in ’96 for a year. It was the most fun in my life,” he
noted.
Big-inch, small-inch, he’s done it all. Fraser’s taking his crew on a 42-inch
job for their next project.
“I like to keep my crew together, keep key guys working. It’s hard to fi nd
guys. It’s hard to fi nd experienced pipeliners, and it’s only going to get worse,”
he concluded.
The tack rig crew makes the ini al weld, joining or “stabbing on” a joint of pipe to the pipeline. Photos by Brian Zinchuk
Internal clamps, seen here coming out of the end of the pipe, are used to secure the fresh joint of pipe to the pipeline.
B26 PIPELINE NEWS November 2012
Lloydminster – It’s a no-brainer decision for
Calgary-based Flexpipe Systems who plan on
opening a new solutions centre in Lloydminster
early in 2013.
Flexpipe Systems has already established a
growing market in the region for its line of high
pressure, corrosion-resistant spooled continuous
pipe for heavy oil and gas applications.
“We’ve been selling pipe in Western Canada
for 11 years,” said Steven Gouthro, sales manager
Canada, at the company’s product booth at the
Lloydminster Heavy Show in September.
“Our fi rst installation was with Husky in Car-
lyle, Saskatchewan in 2001.
“Lloydminster is a great customer base for us.
It’s getting busier and busier everyday from Lloyd
itself through to Provost and into the Macklin/
Cactus Lake area and through to Kindersley and
Kerrobert.
“All those areas – it’s hopping for us for sure.”
Th e company’s fl agship products are FlexPipe
line pipe, FlexPipe HT or high temperature line
pipe and FlexCord line pipe all designed, tested and
manufactured in Calgary.
Flexpipe Systems is a division of ShawCor
Ltd., a global energy services company specializing
in technology-based products and services for the
pipeline and petrochemical sectors and other indus-
trial markets.
Th e company was awarded its largest Australian
contract to date in July with the sale of 175 kilome-
tres of combined Flex pipeline pipe and FlexPipe
HT line pipe.
Similar success is anticipated in the Lloydmin-
ster area following the growth of solution centres
in Estevan and Grande Prairie where staff provide
fi eld installation and operational support for pipe-
line projects.
“We are targeting early 2013 for Lloydminster,”
said Gouthro.
“Lloydminster is a big part of our customer
base. We do great business with companies like
Northern Blizzard, Husky, PennWest, Apache,
CNRL, and we just need to be closer than Calgary
to service these guys properly.”
Flexpipe Systems’ products are used for oil and
gas gathering, including projects with hydrogen sul-
phide/carbon dioxide content, water transfer lines,
salt water disposal systems, CBM (or CSG) appli-
cations and other applications in which a corrosion
resistant pipeline is required.
“Our line pipes are designed to handle the ugly
stuff . Our customers like us for that,” said Gouthro.
Page B27
Flexpipe Systems’ sales representa ves Jason Mapleto , le , and Steven Gouthro, pictured on the second day of the Lloydminster Heavy Oil Show, said the company has established a big presence in the regional heavy oil market with their high pressure, corrosion-resistant line pipe products.
Flexpipe to open Lloyd service shop
PIPELINE NEWS November 2012 B27
Oil eld Electrical Construction & Service• Instrumentation
• Motor Sales, Rewinds & Repairs
Estevan, SK: Branch Of ce306-634-5617
Lloydminster, SK306-825-3363
Kindersley, SK306-463-6462
Swift Current, SK306-773-5626
Page B26Flexpipe Systems’ pipeline prod-
ucts are supplied on long-length con-
tinuous reels up to 2,100 metres and
can be installed by plowing, trenching
and slip lining through existing failed
pipelines.
Th e pipeline products are an
alternative to steel with their patented
three-layer composite design and spe-
cifi c corrosion-resistant high pressure
properties.
FlexPipe and FlexPipe HT
come with a high density polyeth-
ylene (HDP) inner liner or blad-
der wrapped in a continuous high
strength fi bre and protected in a
HDP jacket.
“One of the main benefi ts is that
the HDP bladder is non-corrosive,”
said Gouthro.
“Th at’s defi nitely one of the big
selling features over your standard
steel lined pipe.”
FlexPipe is available in two, three
and four inch inner diameter pipe
with pressure rating choices of 300,
750 and 1,500 psi and temperature
ratings up to 60 degrees Celsius.
“We’ve got a high temp version
of that with similar sizes and pressure
ratings able to operate up to 82 C and
up to 90 C for hot oiling – anything
that’s going to hammer on the pipes –
it’s very durable,” said Gouthro.
Th at’s the FlexPipe HT line pipe
that can withstand harsh chemical
environments.
Jason Mapletoft, a fi eld sales and
services representative at the oil show,
explained the FlexCord line pipe was
ideal for handling high pressure fl ows
and is capable of handling severe
pressure cycles generated by piston
pumps such as triplex and diaphragm
pumps.
“It’s the exact same as FlexPipe,
but it’s got a braided steel liner over
top of the bladder and that gives it
more strength,” he said.
“It’s a pretty awesome product.”
Mapletoft and Gouthro took
turns pitching product features and
benefi ts to a steady stream of visitors
at the oil show and meeting new cli-
ents in the countdown to the launch
of the Lloydminster shop.
“Our goal here is just to get our
product out there and make more
people aware of what we have and
in some cases maybe introduce it
to another new oil company,” said
Mapletoft.
“I think it’s a phenomenal prod-
uct and I’d sure love to get everybody
using it.”
Jason Mapleto , eld sales and service rep with Flexpipe Systems, holds samples of the company’s patented FlexCord, le , and FlexPipe high temperature line pipe products at the Lloydminster Heavy Oil Show. The Calgary-based company, with U.S. headquarters in Houston, Texas is opening a new loca on in Lloydminster in early 2013.
Photo by Geo Lee
B28 PIPELINE NEWS November 2012
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Lloydminster – Marksmen Vegetation Management continues to grow as
quickly as the weeds and vegetation they have been controlling for the oil and
gas industry in Western Canada for the past 20 years.
Th e company is owned and operated by Lyle Froehlich in Lloydminster
and has a growing fl eet of approximately 25 trucks, 10 ATVs and a new mulch-
ing unit. Th ey also have seasonal operations in Manitoba, Saskatchewan and
Alberta.
Field operations usually wind down by September, giving the company the
time to staff a booth at this year’s Lloydminster Heavy Oil Show where Alberta
fi eld manager Daryl Wright held the fort Sept. 12-13.
“We do comprehensive weed spraying, total vegetation management, weed
spraying on leases, oilfi eld pipelines, hydro seeding and mulching,” said Wright,
who joined the company in January after moving from Estevan to Lloydmin-
ster.
“We’re growing. We’re defi nitely increasing in size. I am just new to the team
here. Th ere are three other managers across Western Canada in Saskatchewan
and Alberta. We are planning on continuing to grow.”
Th e company recently introduced a new mulching service to provide low en-
vironmental impact lease maintenance and construction, reclamation, fi reguard,
and roadside and fence line clearing work.
Marksmen is best known for providing comprehensive vegetation manage-
ment control programs with herbicides and pesticide treatments for annual pro-
grams, contact programs and broadleaf control programs.
Th e yearly programs can be combined with additional services such as in-
tegrated pest management reports, weed inspection and identifi cation, noxious
weed selective programs and brush clearing and roadway spraying.
“Th e main application is the oil and gas industry. We’ll do some gas sites, oil
leases and oil batteries,” said Wright.
“Usually noxious weed control is a requirement of the landowner – farmers
and stuff like that because they don’t want seeds going off in their crops.
“It’s also a government regulation depending on where you are to control
noxious weeds. Th ere is the Alberta Weed Control Act that we fall under. You
are required to control certain weeds on lease sites.
“Th ere is also safety behind it too. Sometimes there is pipe and stuff sticking
out of the ground.
“We like to do a bare ground program so that you can see obstacles when
you drive onto the site.
“Our competitors would be weed whipping and mowing. Th e biggest con-
cern with that is there is an ignition source close to the oil well, so that’s where
weed spraying makes sense.”
Marksmen is a member of the Industrial Vegetation Management Associa-
tion (IVMAA) of Alberta and the IVMA for Manitoba/Saskatchewan.
Th e company has several active members serving in IVMA presidential and
board positions.
Wright said the chemical spraying is environmentally friendly “in that the
spread of noxious weeds would defi nitely be worse for the environment” without
the treatment.
“We use chemicals that are on site. Th ey are not long-term residual chemi-
cals, so they have a microbial breakdown,” he said.
Marksmen has a full-time health, safety and environment (HSE) manager,
extensive employee training programs, and dedicated staff to follow safety trends
and keep records.
Marksmen serves multiple clients in a huge area from Fort McMurray to
Red Deer in Alberta, all parts of Saskatchewan including Estevan and Regina,
and clients south of Winnipeg, Manitoba for seasonal spray programs.
Page B29
Growing as quick as the weeds they control
PIPELINE NEWS November 2012 B29
Alberta eld manager Daryl Wright from Marksmen Vegeta on Management handed out a ton of business cards and yers about Marksmen’s menu of vegeta on control services to the oil and gas industry in Western Canada during the Lloydminster Heavy Oil Show in September. Photo by Geo Lee
Page B28“We hire summer students from colleges around Western Canada. We
get started by April and we usually wrap everything up by September,” said
Wright.
“We are a seasonal company. We do a little bit of snow removal in the
winter.
“In fall and winter, we generate sales, and in the spring, we work on our
recruitment hiring and conduct recruitment shows.”
Wright graduated from the University of Regina and came on-board after
taking an applicator’s course at SIAST.
He currently holds an Alberta, Saskatchewan and Manitoba industrial ap-
plicator licence.
“You can also take it from Lakeland College in town here. We provide that
for all our employees but it’s actually a growing course at Lakeland College,”
said Wright.
“It’s an enjoyable job. Every day is diff erent. Th ere are always problems that
occur that are never straightforward to fi x. It’s defi nitely fun. You get out in the
outdoors every day.”
Custom Industrial Accommodation
Ph: (306)545-SHAK (7425) Ph: (306)545-SHAK (7425) www.hardshak.com www.hardshak.com
• 12’ x 60’ • 12’ x 40’• 12’ x 28’ • 10’ x 24’
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Skid shak office & Washroom units
If it’s not hard, If it’s not hard, it’s just a shack!it’s just a shack!
B30 PIPELINE NEWS November 2012
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Bengough – With
all the media focus on
pipeline failures, quality
control is a key focus
for all new pipelines.
Vladimir Mairena
is a quality control
inspector working on
the Vantage Pipeline.
His job is to ensure the
welds on the pipe are
done within the proper
specifi cations.
Mairena is one of
two inspectors doing
the weld QC work.
Th ey stagger their
hours so that there’s
someone covering the
early morning meetings
as well as staying with
the job until later in the
day.
Th ree per cent
of the daily wells are
randomly tested. An
induction ampmeter
can be seen hanging
from Mairena’s chest.
Th at’s used for measur-
ing amperage during
the welding, one of the
parameters the qual-
ity control inspectors
monitor. Other param-
eters include bead pass
speed and voltage.
“We calculate the
heat input. If it’s too
high, the customer can
say, ‘Cut it out,’” he
explained.
Th e requirement
to be a quality control
inspector is having
three years experience
welding.
“I’m going back
to school. I’ll have my
journeyman in the
spring,” he said. He will
be seeking his pressure
‘B’ certifi cation as well
while at NAIT.
He put off his last
stint of technical train-
ing to work on this job.
Pipelining is a hard
job when you have kids.
Mairena has three with
his wife of 10 years.
He hails from
Camrose, where he
moved as a child in
1988.
“I started weld-
ing at the pipe mill
in Camrose. Th at was
only seasonal. I moved
to mechanic work. I
worked at Midas and
stuff like that,” he said.
“My brother got me
into welding.
“I did the odd jobs.
I used to work for a
GM dealer in Edmon-
ton. Th at was fun. We
had a good crew. I was
in sales. I was assistant
manager my last two
years, taking care of
the leasing portfolio.
I got out of it before
the market crashed,”
Mairena said.
“I started weld-
ing for GLM tanks
in Camrose until they
shut the doors.”
More recently he
has been working as a
pipeliner.
Vladimir Mairena is a quality control inspector working on the Vantage Pipeline Arne & Burgess Pipeliners spread. Photo by Brian Zinchuk
Quality control ensures welds meet spec
PIPELINE NEWS November 2012 B31
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Calgary – Southern
Pacifi c’s production
numbers are headed
upward as a result of
operational improve-
ments at its STP-Mc-
Kay and STP-Senlac
thermal projects in
Alberta and Saskatch-
ewan.
Th e Calgary-based
company released an
upbeat operational
update on Oct. 11
highlighted by the fi rst
production of bitumen
at McKay from the
fi rst of 12 well pairs
being converted from
steam circulation to
production.
Th e company
reported that ad-
ditional well pairs
will be converted to
the production phase
over the next several
weeks at the steam as-
sisted gravity drainage
(SAGD) site north of
Fort McMurray.
Plans call for the
SAGD well pairs to be
gradually ramped up in
both volume of steam
injected and volume of
produced fl uids recov-
ered to surface.
Each well pair is
expected to take 12 to
18 months to reach
peak rates.
Southern Pacifi c
also reported that its
central process facility
at McKay continues to
run at “an impressive
pace,” delivering steam
to the well pairs at a 99
per cent on-time load
factor.
Bitumen returns
during the warm-up
phase have been suc-
cessfully separated
from the produced
water.
Th e produced
water is being cleaned,
treated and recycled
into steam to feed back
into the SAGD well
pairs.
All processes
within the project
have been successfully
commissioned and the
company expects the
plant to continue run-
ning smoothly through
the winter season.
Th e fi rst of six
horizontal wells was
being drilled in mid-
October at the STP-
Senlac thermal project
near Unity, Saskatch-
ewan as part of Phase
K that consists of three
SAGD well pairs.
Southern Pacifi c
anticipates produc-
tion will “increase
materially” as Phase K
is brought on stream
from volumes of ap-
proximately 3,000 bar-
rels per day in August
and September.
Production from
this pad is expected
towards the end of
February 2013 after
the wells are drilled,
completed, equipped
and warmed up with
steam.
Th e company began
to ship about one-third
of its bitumen produc-
tion from Senlac by rail
in September utilizing
a newly constructed
rail loading terminal
located at Unity.
Th ey are consider-
ing moving additional
volumes by the rail.
Th e greater use of
rail follows a market-
ing arrangement the
company announced in
June to ship bitumen
produced from STP-
McKay by rail to the
U.S. Gulf Coast.
Th is arrangement
includes dedicated
loading and offl oading
capacity at two new
rail terminals, located
in Lynton, Alberta and
Natchez, Mississippi.
Both terminals, as
well as approximately
500 rail cars, are under
construction, which is
either on or ahead of
schedule.
Southern Pacifi c
has been working with
several U.S. Gulf Coast
refi neries to arrange
the end markets for its
production.
Th e company has
also identifi ed sources
in the U.S. Gulf Coast
to purchase diluent
that will be used in the
McKay plant process.
Th is product will
be transported back
to McKay utilizing its
rail cars on the return
trip from the U.S. Gulf
Coast.
Th e company said
the economics for ship-
ping bitumen via rail
continue to be favour-
able in the current
pricing environment,
bolstered by the wide
Brent/WTI diff eren-
tial, lower Gulf Coast
diluent costs, and the
requirement for less
diluent versus shipping
bitumen by pipeline.
Volumes of bitu-
men produced prior to
Jan.1, 2013 will be de-
livered to intra-Alberta
markets.
Southern Paci c steams on two fronts
B32 PIPELINE NEWS November 2012
Lloydminster – "If it’s plastics, it’s Hobblestone. "
Th at’s the motto of Hobblestone Enterprises Inc. that brought a tip-of-
the-iceberg display of its growing line of plastics products to the Lloydminster
Heavy Oil Show in September.
Th e assortment of plastic trays, liners and geotextiles, tanks and containers
on exhibit helped to steer manager Th omas Hobbs into a conversation about
the applications for the products starting with the oil and gas industry.
“We make plastic liners and containment products,” said Hobbs, who over-
sees the manufacturing at the company’s shop in Blackfoot Alberta, just west of
Lloydminster on Highway 16.
“We make 40 mil poly liners and we have a few in textiles (geotextiles) and
all sorts of guards, tanks and trays. It’s all heavy duty and ready to go.
“Our most popular products are our 100 gallon, double wall tank and the
containment trays for them and line trays.
“Th e rig line trays are for 3-inch hammer unions and that kind of stuff on
the oil rigs.
“Large line pipe trays are usually for some of the rig stuff – when they have
their connections between the pipe they need to keep it contained and that
pretty much is what it does. It keeps it off the ground as well,” added Hobbs.
Hobblestone also manufactures catch trays from small one gallon capacity
to 12-foot length trays that can hold 1,100 gallons of fl uid.
Th e company is the exclusive manufacturer of an all-in-one containment
system with the tank, stand and containment in one unit designed to store
chemicals and a pump in a weather-proof plastic shelter.
Th e Hobblestone product catalogue includes a vast assortment of loaf
tanks, horizontal round tanks, tank stands, rig prod-
ucts and specialty products.
Some of their molded oilfi eld accessories such
as a valve jacket and plastic polish rod were part of
the oil show exhibit.
“Polish rod guards are to help the guys so they
don’t get hurt when they are working around the
wellhead,” said Hobbs, who handed out a catalogue
with competitive pricing of plastics. Page B33
Hobblestone Enterprises Inc. manufactures a diverse variety of plas c molded products including this cold weather valve jacket for oil and gas applica ons. Photo by Geo Lee
Hobblestone molds to the market
PIPELINE NEWS November 2012 B33
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Manager Thomas Hobbs was all smiles holding up this popular plas c polish rod safety guard made by Hobblestone Enterprises Inc. in Blackfoot, Alberta, just west of Lloydminster. Hobbs brought an assortment of molded products for a variety of applica ons to the Lloydminster Heavy Oil Show in September.
Page B32“Th e advantage of plastic is that the price is right. It’s easy to fi x if it gets
wrecked,” he said.
Th e company has repair shops in Lloydminster and Cold Lake and can in-
stall, repair or prefabricate most types of liners including geo-membranes used
by oil and gas companies for containment.
Hobblestone also caters to the home and garden market with plastic prod-
ucts such as rain barrels and fl ower pots and the recreational fi eld with dock
fl oats, quad boxes and quad trailers.
On display was a yellow plastic quad trailer with a weight capacity of 1,200
lbs.
“It’s got good high speed tires and that kind of stuff for doing work for
anybody from surveying to just on the farm,” said Hobbs.
Hobblestone also makes products that comply with federal environmental
farm plans in additional to custom made manufacturing on site to suit client
needs.
Th e company’s main and strongest line of products is made by rotational
molding – a process for creating hollow items, such as anti-freeze reservoirs
and stairs.
“Th e majority of products are made in Hobblestone. I do have a couple of
things I bring in, but that’s only because the price is right, and it’s like reinvent-
ing the wheel,” said Hobbs.
“I have to make a mold for everything for that type of item and they
already have it. If I can get if from them at the right price, and give it to you at
the right price, why not?”
Hobblestone is well known for its extensive television advertising as it
continues on a growth mode and product diversifi cation for a variety of appli-
cations.
“Right now it’s been pretty good. We have an established business,” said
Hobbs.
“Everyone knows how we set up and knows the ideas – so we threw in the
quad trailer and other stuff like that to give them some idea of some of the
other stuff we handle.”
His goal at the oil show he said was “to let everyone know that we stand
behind on our products and we have good products. We are here to give you
what you need.”
The price is right for plastics
B34 PIPELINE NEWS November 2012
FAX: 306-453-4476BOX 40, CARLYLE, SASK. S0C 0R0
www.evergreenenviro.ca
306-453-4475
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634-6081
Regina – Th e Swift Current area received no bids in the October sale of
Crown petroleum and natural gas with most of the action focused on Viking
Sand lease parcels in west-central Saskatchewan.
Th at was the story of the October sale that generated $15.2 million in
revenue for the province, bringing total land sale revenues for 2012 to date to
$94.2 million.
No bids were received on the fi ve parcels off ered in the Swift Current area.
Th is compares to approximately $6 million or an average of $653.52 per hect-
are at the last sale in August.
Since 2009, horizontal drilling in the Viking Sand has seen a signifi cant
increase in production from 1,250 barrels per day to 17,500 barrels per day
with stronger interest in land sales.
“Th ese numbers refl ect the expanded use of the technology that originally
unlocked the Bakken formation,” said Minister responsible for Energy and
Resources Tim McMillan.
“Th e benefi t of this technology is helping drive production and land acqui-
sition across the province.”
October’s sale included 125 lease parcels that brought in $11.8 million in
bonus bids and nine petroleum and natural gas exploration licences that sold
for $3.4 million.
Not surprisingly, the Kindersley-Kerrobert area where the Viking play is
prevalent received the most bids with sales of $8.5 million.
Th e Weyburn-Estevan area was next at $3.4 million, followed by the Lloy-
dminster area at $3.3 million.
Th e highest price for a single parcel was $1.6 million. Scott Land & Lease
Ltd. acquired this 1,295-hectare exploration licence southwest of Kindersley.
Th e highest price on a per-hectare basis was $8,532. Scott Land & Lease
Ltd. bid $552,447 for a 64-hectare lease parcel north of Kisbey.
Th e next and fi nal land sale of the year will be held on Dec. 3.
Kindersley-Kerrobert area (numbers rounded off )
Th e total bonus received in the area was $8.4 million, an average of $349/
hectare. Th is compares to $1.7 million, an average of $159/hectare at the last
sale.
Th e top purchaser of acreage in this area was Bristol Land & Leasing Ltd.
who spent $3.4 million to acquire four lease parcels.
Th e top price paid for a single lease was $1.3 million by Bristol Land &
Leasing Ltd. for a 249.29 hectare parcel situated within the Coleville-Smiley
Gas Pool, 20 kilometres northwest of Kindersley.
Th is was the highest dollar per hectare in this area at $5,262/hectare.
Th e top price paid for a single licence was $1.6 million, by Scott Land &
Lease Ltd. for a 1,294 hectare block located fi ve kilometres northeast of the
Bayhurst West Viking Gas Pool, 40 kilometres southwest of Kindersley.
Weyburn-Estevan areaTh e total bonus received in the area was $3.4 million an average of
$463.81/hectare. Th is compares to $10 million, an average of $622/hectare at
the last sale.
Th e top purchaser of acreage in this area was Scott Land & Lease Ltd.,
spending $1.1 million to acquire nine lease parcels.
Th e top price paid for a single lease in this area was $552,447 by Scott
Land & Lease Ltd. for a 64.75 hectare parcel situated within the Viewfi eld
Bakken Sand and Star Valley Frobisher-Alida Beds Oil Pools, eight kilometres
northeast of Kisbey.
Th is was the highest dollar per hectare in this area at $8,532/hectare. Th e
top price paid for a single licence in this area was $510,611, paid by Silver
Hawk Resources Ltd. for a 1,100 hectare block situated 10 kilometres east
of the Red Jacket South Red Jacket Sand Pool, three kilometres south of
Moosomin.
Lloydminster areaTh e total bonus received in the area was $3,317,689.73, an average of
$691/hectare. Th is compares to $5.5 million, an average of $529.66/hectare at
the last sale.
Th e top purchaser of acreage in this area was Scott Land & Lease Ltd.,
that spent $965,962 to acquire fi ve lease parcels.
Th e top price for a single lease in this area was $314,760, paid by Wind-
fall Resources Ltd. for a 113.31 hectare parcel situated within the Tanglefl ags
North G.P. and Lloyd-CummingsSands Oil Pools, 27 kilometres northeast of
Lloydminster.
Th e highest dollar per hectare in this area was received from Prairie Land
& Investment Services Ltd., that paid $8,041/hectare for a 4.80 hectare parcel
located within the Silverdale Mannville Sands Oil Pools, seven kilometres
south of Lloydminster.
Swift Current areaNo bids were received on the fi ve parcels off ered in the Swift Current area.
Th is compares to $6 million or an average of $653/hectare at the last sale.
Swift Current lays a land sale goose egg
PIPELINE NEWS November 2012 B35
Calgary – PetroBakken Energy Ltd. executed an aggressive drilling pro-
gram in the third quarter with 82 net wells drilled, representing a 17 per cent
increase over the same period last year.
Drilling activity focused primarily on the company’s Bakken and Cardium
business units, where 40 and 32 net wells were drilled, respectively, with an ad-
ditional 10 net wells drilled in its Saskatchewan conventional business unit.
PetroBakken was also busy completing wells with 46 net wells completed
during the quarter, including 30 net wells in the Bakken business unit and
eight net wells in each of the Cardium and Saskatchewan conventional busi-
ness units.
After bringing 52 net wells on production in the third quarter, the com-
pany had 43 net wells (23 in the Cardium, 17 in the Bakken) either waiting on
completion or completed and waiting to be brought on production.
Th e second half of the year is always very active for PetroBakken, and the
company expects its rate of drilling and bringing wells on production in the
fourth quarter of 2012 to outpace the activity levels achieved last year.
PetroBakken is forecasting that it will drill 82 net wells in the fourth quar-
ter of this year, a 28 well increase from 54 wells during the same period last
year. Th e company plans on having 105 net wells on production by the end of
the fourth quarter compared to 85 the year prior.
As of Oct. 12, the company had 20 drilling rigs operating, with nine drill-
ing in the Cardium fairway of Alberta, eight in the Bakken fairway in south-
east Saskatchewan, two on conventional prospects in southeast Saskatchewan
and one in its new resource play area in central Alberta.
Th e company plans to drill 25 net wells in the Cardium, 36 net wells in the
Bakken and 21 net wells in its other areas in the fourth quarter, achieving the
company’s current plan of 220 total net wells drilled in 2012.
A delayed start in PetroBakken’s second half capital program has resulted
in third quarter production levels being fl at compared to the second quarter
of this year. However, the company noted that reduced industry activity has
provided increased access to services that allows it to catch up on the planned
program, positioning PetroBakken to achieve its exit rate production guidance
of 52,000 to 56,000 bbl. of oil equivalent per day.
Th e company’s third quarter average production was 38,400 boepd (84
per cent light oil and natural gas liquids), based on fi eld estimates, comprised
of over 15,800 boepd from the Bakken business unit, 14,700 boepd from the
Cardium business unit, and the remainder from the Saskatchewan convention-
al and Alberta/B.C. business units.
Th is production level is relatively fl at to the third quarter of 2011, primarily
resulting from the disposition of producing assets in the fi rst half of 2012 and
the delayed start to the company’s second half 2012 capital program.
Production for September 2012 was 39,200 boepd based on fi eld estimates,
a slight increase over second quarter 2012. Currently, as a result of routine
maintenance of individual wells and facilities as well as restricted production,
PetroBakken estimates that it has approximately 1,500 boepd of additional
productive capacity that is expected to be brought on production in the fourth
quarter.
PetroBakken keeping the drill bit busy in the second half of 2012
In an operational
update on Oct. 15 on
recent drilling activity in
western Saskatchewan,
Hawk Exploration Ltd.
says it has completed
and equipped its hori-
zontal well at 09-10-
46-23W3 at Carruthers,
west of Cut Knife.
Placed on produc-
tion in mid-September,
the well has produced
heavy oil at an average
rate of 60 bpd with a 20
per cent water cut.
Th e company
recently submitted
applications to drill an
additional two horizon-
tal wells in the north
half of Section 10 at
Carruthers, which are
expected to be drilled
in either late 2012 or
early in 2013. Hawk has
a 100 per cent working
interest in the north half
of Section 10.
Hawk recently
drilled a vertical well
testing the Basal Man-
nville formation at
Dankin, Sask. However,
the well did not encoun-
ter enough pay thickness
to warrant drilling of
a horizontal well in its
current location.
Th e company is
reassessing its 3D seis-
mic data to determine
a better horizontal well
path and expects to
drill a horizontal well at
Dankin in late 2012 or
early 2013. Hawk has
a 100 per cent working
interest at Dankin.
At Seagram Lake,
Sask., Hawk recently
began drilling a 50-per-
cent working-interest
horizontal well targeting
the Leduc (Duperow)
formation. In an ef-
fort to minimize water
encroachment in this
horizontal well, the
company expects to ini-
tially complete the well
without acid stimula-
tion.
Hawk's 2012 third-
quarter production,
based on fi eld estimates,
was approximately 520
boepd, weighted 95 per
cent to heavy oil.
For the fourth quar-
ter, the company plans
to conduct two separate
2D seismic programs in
western Saskatchewan
and one 3D seismic
program at Silverdale, in
the same region, to de-
lineate future vertical oil
drilling opportunities.
Hawk expects to
drill one (one net) verti-
cal well targeting oil in
the Sparky formation of
western Saskatchewan
in its fourth quarter. Th e
company also expects to
drill one (one net) hori-
zontal well late in the
fourth quarter at either
Carruthers or Dankin.
Hawk drilling at Carruthers
B36 PIPELINE NEWS November 2012
www.carsonenergyservices.com(306) 487-2281(306) 487-2281
• Oil eld Maintenance• Welding• Oil eld Construction• Pipeline Construction• Facility Construction• Mainline Pipeline Construction• Safety Sales & Service• Environmental Services• Horizontal Directional Drilling• Picker Trucks• Pile Driving• Hydro vac• Gravel and Sand Hauling• Skid Packages• Lease Preparation• Insulating• Major Facility Construction• Gas Plant Turnarounds
Carson Energy Services works with clients from 13 loca ons across Alberta and Saskatchewan, serving a footprint covering both those provinces and southwest Manitoba.
• Lampman• Alida• Calgary• Carlyle
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* Bed Trucks* Winch Tractors
* Pickers
RIG MOVING Phone: 482-3244
Le : Sherri Nesvold struts o to the next joint of pipe, measuring each one. A crew of 3 people measure the length and mark the centre line of each joint.Right: The Vantage Pipeline right-of-way stretches o to the horizon.
Photos by Brian Zinchuk
Measuring pipe
Level Best Technologies Ltd.
Dave: 306-461-4322Pat: 306-861-9986Andrew: 306-461-4323
• Fluid Levels• Dynamometers• Build-Ups • Fall-Offs• Foam Depressions• Casing Compressors
PIPELINE NEWS November 2012 B37
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• Major parts and supplies in stock at all times
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Scott .........861-1001Anita .........861-7305Keith .........861-2243Dave .........452-8401
Ryan .........458-7790Chantal .....861-9796Brett ..........891-6303Spare ........891-6966
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email: [email protected] 1305 9th Street, Estevan • 634-6456
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ESTEVANESTEVAN
Cold Lake, Alta. – Baytex Energy
Corp. said Oct. 2 it has agreed to
acquire a 100 per cent working in-
terest in 46 sections of undeveloped
oilsands leases in the Cold Lake area
of northeast Alberta.
Th e $120-million purchase
(before closing adjustments and
costs) will be funded from Baytex's
revolving credit facility. Th e acquisi-
tion was expected to close in early
October.
Baytex said the leases are near
core heavy oil assets at Cold Lake
and are prospective for both thermal
and cold development.
Regulatory approval has been
received for the construction and
operation of a SAGD project. Baytex
anticipates moving forward with a
SAGD pilot in 2013.
If the pilot is successful, con-
struction of a commercial 5,000 bpd
SAGD project would start in 2014
with initial production in 2016. Be-
sides the currently approved SAGD
project, Baytex has identifi ed addi-
tional areas that are prospective for
thermal development.
Th e acquisition adds an ap-
proved SAGD project to Baytex's
asset portfolio, which currently
includes thermal recovery projects
at Seal in the Peace River oilsands
region of Alberta and at Kerrobert
in southwest Saskatchewan.
Once developed, thermal recov-
ery projects provide a source of long-
life, low-decline production. Baytex
said developing these projects will
reduce its corporate decline rate and
enhance its ability to continue to ex-
ecute its growth and income model
over the long term.
Reserves associated with the
identifi ed SAGD project total about
43.7 million bbl. of bitumen on a
proved plus probable basis, eff ec-
tive Aug. 31, 2012, as evaluated by
Sproule Associates Limited. Baytex
estimates the fi nding, development
and acquisition costs will be about
$12.50 a bbl. over the life of the
project.
“Th e acquisition of these oil-
sands leases is consistent with
Baytex's strategy to build upon our
existing heavy oil and thermal exper-
tise. Th ese leases are adjacent to our
existing Cold lake operations, and
the SAGD project complements our
existing thermal operations at Seal
and Kerrobert. Beyond the thermal
potential, we have also identifi ed
opportunities for cold horizontal
development on the acquired lands,”
Baytex president James Bowzer said
in a press release.
Baxtex Energy Corp. added to its extensive holdings in northwest Saskatchewan and northeast Alberta by scooping up oilsands leases near Cold Lake, Alta.
Baytex buying oilsands leases for $120 million
B38 PIPELINE NEWS November 2012
FIND OUT MOREEnbridge.com/InYourCommunity
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Our Safe Community program provides firefighters, police departments and other first responders with funding for everything
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It’s part of the reason we were named one of the Global 100 Most Sustainable Corporations in the World.
WHERE ENERGY MEETS SAFETY
Fort McMurray – Enbridge Inc. is expanding its
regional oil sands system with a new pipeline and
terminal facilities to connect eight producing oil
sands projects in the Fort McMurray area by 2014.
Enbridge Pipelines (Woodland) Inc., an affi li-
ate of Enbridge, received approval from the Alberta
Energy Resources Conservation Board on Sept.
27 to construct the Woodland pipeline extension
project that expected to cost up to $1.4 billion.
Th e project will involve construction of a 36-
inch diameter line approximately 385 km from
Enbridge’s Cheecham regional oil sands terminal to
its mainline hub terminal at Edmonton.
Th e Woodland pipeline will have an initial
capacity of 400,000 barrels per day expandable to
800,000 bpd and will eff ectively twin Enbridge’s
existing Waupisoo pipeline.
Th e new line will accommodate anticipated
growth in bitumen production from Imperial Oil’s
Kearl oil sands project, and increasing volumes
from other projects already connected to Enbridge’s
regional oil sands system, or expected to be con-
nected.
Enbridge has not yet received fi nal commercial
approval to initiate fi eld construction from ship-
pers, but anticipates it will do so in time to achieve
a 2015 in-service date.
Th e pre-construction development costs are be-
ing supported by shippers pending fi nal commercial
approval.
Enbridge has also entered into an agreement
with Suncor Energy Oil Sands Limited Partner-
ship to complete a $150 million expansion of the
existing infrastructure at the Enbridge Athabasca
Terminal.
Construction actually began in July 2011 to
meet Suncor’s in-service target date by the second
quarter of 2013.
Th e expansion agreement formally announced
on Sept. 27 is needed to accommodate the incre-
mental bitumen volumes from Suncor’s Firebag 3
and 4 developments.
Enbridge will construct a new 350,000 barrel
tank as well as additional infrastructure including
new booster pumps, meters and modifi cations to
existing piping and manifolds.
Suncor has agreed to backstop Enbridge’s
investment in these facilities through a long-term
services agreement, during which Enbridge will
recoup all of its operating costs, a return on equity,
and all of its invested capital.
Th e new projects will maintain Enbridge’s
position as the leading pipeline operator in the Fort
McMurray to Edmonton/Hardisty corridor and
well positioned to tie-in new oil sand developments
to mainline pipelines and increase capacity for cur-
rent customers.
Enbridge’s regional oilsands infrastructure in-
cludes the existing Athabasca and Waupisoo pipe-
line systems, which currently connect six producing
oil sands projects.
Th e existing 540 kilometre Athabasca pipeline
has an annual capacity to transport up to 570,000
barrels per day of crude oil from the Athabasca and
Cold Lake regions of Alberta, south to Hardisty,
Alberta.
Th e company through its Athabasca Pipeline
affi liate is currently twinning the Athabasca pipe-
line that will transport increased oil production in
the Kirby Lake area of the oilsands.
Th e existing Waupisoo pipeline has an annual
capacity to move up to 600,000 bpd of crude oil
from the Cheecham Terminal to Edmonton.
Enbridge is the largest operator of contract
storage facilities at the Hardisty hub with the 3.1
million barrel Hardisty Caverns storage facility, plus
the 7.5 million barrel Hardisty Contract terminal
surface storage facility.
Th ere are more than 4.4 million barrels of op-
erational storage associated with the Waupisoo and
Athabasca pipelines and laterals.
Enbridge bee ng up its oilsands system
Blackbird Energy Inc. announced Sept. 25 that
it has entered into a defi nitive securities exchange
agreement dated Sept. 24 in respect of its previ-
ously announced acquisition of all the issued and
outstanding shares of Ruger Energy Inc., a junior
oil and gas exploration and development company
in Alberta.
Ruger has a 100 per cent working interest in
680 acres in the Alsask area located on the Alberta/
Saskatchewan border and currently has cash and
cash equivalents of approximately $3.6 million.
Blackbird buys Ruger Energy
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NEWSPIPELINE SECTION C
November 2012
Cur s Kemp, in the white hard hat on the catwalk, inter-cepts a joint of pipe as it is raised. Behind him are, from le , driller Dus n Lafrentz, derrickhand Tom Steengaard and Mathew Warburton, a tonghand with Gilliss Power Tongs. It was lightly raining as the crew worked near the U.S. border.
Story and photos by Brian ZinchukEstevan – In 1942, when the United States
sought to bomb Tokyo in response to the attack at
Pearl Harbor, they had a problem. Th ey were using
heavy, land-based bombers from aircraft carriers
that were never designed for such planes. As a re-
sult, they had to substantially reduce the weight of
the bombers while still maintaining their operat-
ing ability, otherwise they would never get in the
air.
Th e result was the Doolittle Raid, which was
portrayed at the end of the Hollywood blockbust-
er Pearl Harbor.
When Estevan-based Sun Country Well Ser-
vicing went about designing its service rig fl eet,
they went through a similar exercise. Th ey had to
get the weight of their rigs under some very specifi c
numbers, otherwise they, too, would be grounded
at times – particularly during spring breakup.
Th e man heading up Sun Country’s eff orts on
the ground is Brad Bennett, vice-president of op-
erations. Phil Amosah is the company’s fi eld su-
pervisor, while Blake Mile is the equipment man-
ager.
Bennett is one of three partners who started
and operate the business, the others being Tony
Hodges, president, and Rob Wasylyniuk, vice-
president of fi nance.
“We’ve got some investors as well,” he added.
Th e company has an offi ce in Cochrane, Alta.,
where Connie Nastiuk is responsible for invoicing
and payables, among other tasks. Janice Christan-
son is responsible for payroll and benefi ts (human
resources).
“We started in October of 2009,” said Ben-
nett. “I’ve been around since the ’70s.”
Th e outfi t started with three rigs right away, the
fi rst in October, the second in November and the
third in December of that year.
Th ey had six by November 2010 and then added
one each spring and fall in 2011 and 2012.
Th at has grown to 10 rigs now. “Rig 10 just rolled
in in September,” Bennett said.
In building those rigs, they kept weight as a
prime consideration. It factored in the choice of steel
used. It means fi bre grating (a plastic-aluminum
composite) walkways instead of steel or aluminum.
Th e engine choice was selected in part due to its
weight factor.
Page C2
Make ’em light, so they can work
C2 PIPELINE NEWS November 2012
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Page C1“Th is derrick is much more like an aircraft or a
ship,” Mile said, standing near one of the units.
Th e load beam assembly is hydraulically driven.
It’s light and “fast fast fast,” he described.
“We have very light rigs,” Mile said.
Th e steel chosen was QT100, a “very high tech
steel,” he said. “Typical steel is 70,000 psi tensile
strength. Th is is 100,000 psi tensile strength.”
Th e greatest weight savings is in the derrick,
but it applies to the whole chassis.
“We’re also running all Cummins motors,
which is lighter than Detroits or Cats.
“We run a nine-litre engine,” Mile said. It has
the same power as other engines, but is lighter and
easier on fuel.
“Th at makes our front axle weight 16,000 kilo-
grams, which is light for a service rig.”
Bennett pointed out, “We don’t need bridge
clearance for them. Th e real axles are less than
25,000 kilograms.”
“Th ose are magic numbers,” Mile said.
Th e result is much fewer headaches getting
permits.
All 10 rigs are freestanding units with 105-foot
derricks, allowing for double tubing and triple rods.
All are rated to 200,000 pounds.
“All our rigs are Courtney Berg Industries
of Linden, Alberta. Th ey are designed by Sparta
Engineering,” Bennett said. “All our rigs are the
same so switching people around makes it easier to
do. Doghouses are built by Demby Trailers out of
Weyburn.”
“After we fi rst started, I brought our rig manag-
ers in and asked them what changes they wanted.”
Some ergonomics have evolved over time, mak-
ing them more user-friendly.
“We can rig up in 20 minutes,” Mile said.
Not all in one basketSun Country doesn’t go into Manitoba much.
“We prefer to stay in Saskatchewan if it works out,”
Bennett said.
Th eir service area is from Bengough in the west
to the Manitoba border in the east, and from the
U.S. border in the south to Rocanville in the north.
“Our guys are home every night. Th at’s one of
the great things of the Saskatchewan service rig
lifestyle – being home every night,” Mile said.
“Most of our rigs are working for certain com-
panies. We have one rig that’s a fl oater.”
Th ey work with approximately seven regulars.
“We don’t put all our eggs in one basket,” Amo-
sah said.
Mile picked up on that, noting that having a
diverse clientele means at road ban time, they can
look for dry land to work on.
Independent operation“Independents seems to do better than the
larger companies,” Bennett said.
“Especially for employee retention,” Mile
added. “We have an excellent benefi ts program with
matching RRSPs.”
“You’re not a number,” Bennett said.
Amosah said, “It means a lot when Brad knows
your name, and your family.”
Being independent also means being nimble,
with Bennett noting in larger operations one loses
all control.
“We make decisions in fi ve minutes,” Mile
noted.
Backgrounds“I started on drilling rigs in ’70’s and went to
service rigs in ’76,” Bennett said.
He grew up on a farm near Gainsborough,
eight miles from both the Manitoba and U.S.
borders. At the age of 20, he started working on the
rigs.
“I worked for Flint, then went over to Cenalta
in ’91. I was in Waskada in the ’80s, from ’81 to ’86.
I got into the management side with Flint in Mani-
toba,” Bennett said. He worked as a fi eld supervisor,
and lived on an acreage near Melita, Man.
Amosah lived in Weyburn for seven years, then
he moved to Raymore, where he played six-man
football.
He lives in Oxbow, where he met his wife and
they have raised their children.
Amosah worked on service rigs based in Ox-
bow for Cenalta Well Servicing.
“Th ey were bought out by Precision in 2001,”
he said. He remained with that company until
2010, when he came over to Sun Country. His fi nal
two years at Precision Drilling were as a fi eld super-
visor, the same position he holds today.
Staff “We’re fairly fortunate to have the core of guys
that we do. Th e fi rst three rig managers, we worked
on the same rig together out of Oxbow,” Amosah
said.
Corey Widenmaier trained him as a fl oorhand,
derrickhand and driller, Amosah noted. Jared Ma-
ff enbeier and Les Logue also worked with him.
“When I came here, I wanted a diff erent de-
meanor,” said Amosah. “Th ese guys are my friends.
Th ey are my family. All 10 rig managers, I consider
my personal friends.”
“We try to promote all our personnel from
within.”
Bennett noted, “You don’t want to weaken a rig
to start another. Sometimes you have to go outside
to bring someone in.”
“Training remains on the job. Rig managers are
best for that,” said Mile.
“All our rig managers are good at training new
guys,” Bennett said. “Th ey take their time, show
them the dangerous spots, where not to stick your
fi ngers.
“It’s all about people. If you don’t have people,
the right people, you don’t have anything. If they’re
not doing the job that’s expected, customers aren’t
going to call back.”
You’re not a number with an independent
Cur s Kemp de ly snags a joint of tubing as it is being raised.
PIPELINE NEWS November 2012 C3
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Story and photos by Brian Zinchuk
Bromhead – A toot
of the train’s whistle,
and Long Creek Rail-
road is on track, literally.
Th e province’s new-
est short line – its thir-
teenth – held a grand
opening and barbecue
at its Southall loading
facility, approximately
two miles northwest of
Bromhead, Sask., on
Oct. 2
Th e site is roughly
40 miles west of Este-
van.
Th e railroad was
initially planned to take
care of local farmers’
grain shipment needs.
However, the meteoric
rise of crude oil ship-
ments by rail in the
region have come as a
welcome development.
Indeed, by the time its
grand opening was held,
it had only shipped
crude, not canola.
Approximately
70 people came out
to the grand opening,
with several dignitar-
ies involved in the deal
making short speeches.
Tours were provided of
the engine and crude oil
transloading equipment.
For many present, a
good number of whom
are investors in the ven-
ture, it was a relief. Th e
launch of this railroad
was seven years in the
making.
Wayne Carten
negotiated the purchase
of the line on behalf of
Canadian Pacifi c Rail-
way. He noted “Short-
lines work well. Th ey
have a lower cost base
and level off effi ciency.”
Crude-by-rail has
grown sharply in promi-
nence over the last two
years. Carten noted CP
will do 17,000 carloads
of oil out of North
Dakota this year. Much
of that is heading either
to Albany, New York, or
the U.S. Gulf Coast.
Carten told those
gathered, “It’s been a
long time coming,” and
that CP looks forward
to working with the
short line.
“Th ey’re off to a ter-
rifi c start,” he said.
He acknowledged
the province’s role in
supporting the short
line.
“Th ere hasn’t been
a revenue movement on
these rails since 2002,”
Carten said. At that
time, 27 cars used the
railroad. By the time
this newspaper goes to
press, that number will
have been long exceeded
by the new operation.
After the formal
ceremonies, Carten
noted, “It’s amazing it
wasn’t ripped up.”
Th e line went
through the usual three-
year discontinuance
plan, which under fed-
eral legislation requires
rail lines to be off ered to
various levels of govern-
ment before being either
sold off or abandoned
and scrapped.
“If people want to
save the line, you have
to get the interest,” he
said.
Th ere was a diff er-
ence in valuation of the
line between CP and
the new branch line,
but that was eventu-
ally resolved, resulting
in the successful sale.
Th e net salvage value
of the line was approxi-
mately $2.26 million. It
changed hands March
31, 2012.
“Shortlines have
fl exibility and bring it to
us,” Carten said. “Every-
body wins.”
Saskatchewan
Minister of Highways
and Infrastructure Don
McMorris pointed out
the province has put
$2.2 billion into high-
ways over the last fi ve
years, over $500 million
a year.
“Every ounce, or
barrel, or whatever
measure you use, is not
on our highways,” he
said regarding shifting
freight from roads to
rail. Using rail gets traf-
fi c off the roads.
Page C4
Long Creek Railroad holds grand opening
Minister of Highways and Infrastructure Don McMorris, in the orange vest, poses with the board members of Long Creek Railroad.
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Page C3 “What a great way to get the
tracks back into use.”
Th e province provided a 34 per cent loan guar-
antee of $800,000 to the short line.
Glenn Pederson, president of Long Creek Rail-
road, noted the Estevan to Neptune line was started
in 1909, and its fi rst train ran 99 years ago, in 1913.
Th e steel, at 85 pounds per yard, is stamped with
“1905” and came from Algoma Steel. Th e original
steel was lighter, but this steel was brought in when
the line was rehabilitated in the 1980s.
Communities fl ourished with the rail, he noted.
Even the circus came by train.
In 1926, Southall was built. Th e Southall
to Minton line was abandoned in 2000, yet the
distance to oceans hasn’t changed, he pointed out.
Th ere is still a need to ship grain, and oil.
“Today is a pretty exciting day,” Pederson said
after the ceremonies. “Th e last seven years of meet-
ings and planning have come to fruition.
“We’ve guaranteed them weekly train service. If
we get enough cars, it will be twice a week,” he said
of their deal with Torq Transloading, the company
that is putting the crude on the rail cars.
He farms with his father, Dallas, who is the
reeve of the Rural Municipality of Souris Val-
ley, and had acted as master of ceremonies for the
event. Th ey farm 7,500 acres.
“Our fi rst grain cars have been ordered,” Glenn
said. “As a rail line, I hope weekly. As a farmer, I
hope once a month to load a car.”
Th e Pedersons, themselves, intended on load-
ing 14 cars with grain, with Tribune as the loading
point.
Dean Weinkauf is one of four partners in Torq
Capital Partners, the parent company of Torq
Transloading, which is loading the tanker rail cars
with crude oil from trucks. His other role is presi-
dent and CEO of Goulet Trucking of Shaunavon,
which is providing the trucking.
“Last month (September) there were four cars.
Th is month (October) there will be close to 100.
It should double every month for a while,” he said.
“We can do up to 350 cars a month before we do
Phase 2. Phase 2 can take us to approximately 30
cars per day. We could go up to 80 cars per day with
investment in infrastructure.”
Th at would involve building more road and us-
ing more track, but no tanks on site. “We don’t use
tanks at all. We can load a car as quickly as topload-
ing without the investment for tanks,” he said.
Page C5
More crude than canola shipping on this line
Glenn Pederson, president of Long Creek Railroad, ex-plained the history of the line.
Minister of Highways and Infrastructure Don McMorris talked about keeping tra c o roads.
PIPELINE NEWS November 2012 C5
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Page C4Torq is a straight
fee-for-service operator,
and not a marketer.
As of the grand
opening, they had three
people working at
Southall. “We’re look-
ing for more. We need
four or fi ve more. We’re
fi nding manpower is an
issue,” he said.
Th e work is very
similar to battery opera-
tor work, he noted.
Th e railroad is
working with Johnston’s
Grain Marketing in
Welwyn, Sask. as a grain
broker.
CWB farm busi-
ness representative
Patrick Weatherald was
on hand for the event.
He said, “Th e Cana-
dian Grain Act gives
the famer the right to
ship his own grain by
producer car.”
Up to fi ve farm-
ers can use one car, but
generally they load their
own. Farmers apply for
a producer car by mak-
ing an application to the
Canadian Grain Com-
mission. Th ey then elect
an administrator, such as
West Central Road and
Rail, or the CWB.
“Th e CWB’s role in
all this is to be a pro-
moter of producer cars
and to off er farmers the
ability to sell their grain
to the CWB through
its two pools, the early
delivery pool, or the
harvest pol.
Under the old
system, producer cars
ensured competitive
rates for freight, eleva-
tion and cleaning, he
noted.
“If you load a
producer car on a track
here, you will not pay
elevation and cleaning,
which is generally $15
to $20 per tonne.”
Th ose are major cost
savings, but also involve
more risk, he noted. It
also drives competition
for the elevators. Ap-
proximately 10 per cent
of wheat and durum has
gone by producer cars.
“It’s good for the
community, communi-
ties, I should say,” said
Hartley Halvorson just
prior to the commence-
ment of the ceremonies.
His farm is south of
Torquay, but it is now
rented out.
“We were in on this
a few years ago. We had
a train out and loaded
about 20 cars, but it
died off ,” he said, refer-
ring to producer cars
farmers fi ll with grain.
Th at was about 10 years
ago.
“Traffi c is good.
Th at’s what will make it
sustainable,” said Don
Hurren, who farms
about 2,700 acres in the
Torquay and Tribune
area. Hurren is also
a shareholder in the
railroad.
He got involved
because he wanted to
reduce freight rates and
elevation charges, or, as
he put it, “To put more
money in the pocket.”
Hurren noted he
should be able to deliver
grain to the railroad
without having to wait
for space at elevators. It
also takes grain-hauling
traffi c off the roads
Doug Tallon is
chairman of the board
of Great Western Rail,
and was present as a
representative of the
Saskatchewan Short
Line Association. “It
proves the viability of
short lines. We have
more coming on stream
every years,” he said.
Th e Ministry of
Highways has recog-
nized its signifi cance,
providing the short-
line association with
$700,000 each year.
Th at’s not a lot, espe-
cially divided among the
now 13 short lines, but
it’s better than nothing,
and they appreciate it.
Great Western,
based in Shaunavon, was
purchased in 2004 from
a B.C. salvage company.
Now it, too, is hauling
oil. Great Western also
provides locomotive
power for the Fife Lake
Railway and Red Coat
Road and Rail.
Tallon off ered con-
gratulations to the new
short line.
Darwin Daae farms
about 3,500 acres near
Torquay. He’s vice-pres-
ident of Long Creek.
Last winter he drove
for a hot shot outfi t in
Estevan, in part because
last year’s fl ooding
meant he had almost
no crop. Crop insurance
and a government pay-
out helped, he noted.
“It goes right past
my yard, about three-
quarters of a mile away”
he said. He would like
to load rail cars that
close, but the more
likely place will be
Torquay, three miles to
the east. Th at’s an awful
lot closer than the 50
miles to Weyburn.
Daae got involved
right from the start of
the initiative, which
took seven years. “It’s
almost a sigh of relieve
to know it’s been since
’05.
“Th e intent was for
grain. Th is oil is just a
bonus,” he said. “When
we bought this track, it
was strictly grain. Th e
idea was to break even
and get a benefi t on
reduced costs.”
Crude-by-rail will
be a potential money
maker, he said.
Isaac Unger, right and Crystal Daae take a turn at driving spikes during Long Creek Railroad's grand opening.
C6 PIPELINE NEWS November 2012
Now Open
By Brian ZinchukWeyburn – It’s pretty
rare for a company to
last 40 years in the
oilpatch, especially under
the same ownership.
But John Kmita Ltd.,
a service rig company
based at Weyburn, has
persevered.
And persever-
ance is defi nitely the
proper term. When
founder John Kmita was
honoured at the 2009
Saskatchewan Oil and
Gas Show as one of two
Southeast Saskatchewan
Oilmen of the Year, it
was noted that each time
he added a new rig to
the fl eet, the industry
collapsed. In accepting
the honour, he cracked,
“I built a new shop last
year, and oil plummeted
$100 a barrel.”
In recounting his ex-
periences, John laughed
as he explained how
an oil company man
phoned him in the 1980s
and asked how it’s going.
Th e phone call came in
the summertime.
“Terrible. Th e kids
got frostbite from star-
ing in an empty fridge,”
Kmita told him.
John, himself, has
largely stepped back as
his two sons, Jonathan
and Tyler, have assumed
the reigns.
Beginnings“I started in 1960
working for Addison
Leyen,” John said. “I was
19 years old. I was origi-
nally from Regina.”
“A friend was
building the fi rst Dairy
Queen. Th ere was an
old house there. I tore
it down. Th en I started
working on the rigs.”
While many rig
hands have at some
point worked drilling
rigs and service rigs, for
John it has always been
service rigs.
Th ey needed men to
work south of Weyburn.
“Th ere wasn’t a whole lot
of wells out there then,”
he noted. “We worked
for Central Del Rio,
Mobil Oil, Canadian
Superior.”
Central Del Rio
Oils drilled the discov-
ery well that got the
Weyburn fi eld going. It
was the forerunner to
PanCanadian, EnCana
and then Cenovus, the
current operator of the
fi eld around Goodwater.
He wasn’t a rough-
neck for long. “I wasn’t
scared of heights,” John
said. “Th e rig I worked
on, nobody else wanted
to work on the derrick.”
Norm Mondor, now
of Aldon Oils, was the
driller at the time.
John spent a couple
of years on the derrick.
“I got set up as toolpush,
then I went and worked
in Alberta for a year.
Th en I came back and
started my own com-
pany.”
John Kmita Ltd. was
established in 1972.
“I bought a used rig
in Natchez, Mississippi.
Th at’s where we found a
single. We’ve still got it.
We’re still running it.
“We redo it every
four years. We just got it
recertifi ed this spring,”
Indeed, that rig
could be found working
in the Cenovus fi eld near
Goodwater, gleaming
with a bright new coat of
paint.
Asked how many
engines Rig 1 has gone
through, he said, “A
couple. You look after
them, they’ll look after
you.”
Rig 1 came in by
rail car. “It cost $1,000
more to unload it in
Weyburn than Portal. So
we unloaded it there. Th e
air lines were all frozen,”
John said, noting it was
a challenge to get it of-
fl oaded. Page C7
40 years for John Kmita Ltd.
Damon Co ey, le and Clayton Carter run pipe in.
PIPELINE NEWS November 2012 C7
CLIFF NANKIVELLTRUCKING LTD.
Kalvin NankivellPresident
Claudia MullisVice-President
Of ce: (306) 462-2130Fax: (306) 462-2188
Box 123Kisbey, SK S0C 1L0
John Kmita, centre, is presented with his plaque for Southeast Oilman of the Year in 2009. On the le is then - Minister of Energy and Resources Bill Boyd. File photo
Page C6Th e company started with Mel Kitzul and Russ
Sedger as initial partners.
“Th ey held the mortgage on the fi rst rig and
the company paid them back,” John said. Th at took
about fi ve or six years.
Long serviceWhen he started out, there were just three
people working on the rig, with John being one of
them. Garry Myers and Glen Nimegeers were the
other two. Myers started in 1972 and still works
with the Kmitas. He’s is John’s brother-in-law.
“He does a lot of our farming now,” John said.
He also fi lls the role of fi eld supervisor
Nimegeers went overseas and is now a consul-
tant.
Clarence Guider, a cousin, worked part time
from 1972 to 1978, then full-time for 32 years. He
passed away this past summer.
“You always had some farm guy who you would
call in when someone needed a day off ,” John said.
Guider was often that man.
Two of their toolpushes have been with the
company since 1993-94.
Darryl Mutrie pushes Rig 1, Troy Bell has Rig
2, Trent Latham takes care of Rig 3, and Mike
Church handles Rig 4.
BackboneFarm boys have been the backbone of the in-
dustry for years, but there aren’t many farm boys left
these days. “Th e younger guys, if they’re good, they
stay on the farm. Before, you hired 10 farm boys,
and nine were good.”
Being mechanically inclined was a key point
with those farm boys. Th ese days, a boy out of
school “can’t change a tire,” John said.
Whereas a crew typically has fi ve men now,
back then it was just three – one on the brake, one
on the stick, and one roughneck.
“If you had good men, you could do it,” John
said. “It evolved to four and then fi ve. Now you get
four and then fi ve, then someone counting noses on
the edge of the lease.”
Buy a rig, industry collapsesTh e period when John started the company also
turned out to be one of the most diffi cult for the
Saskatchewan oilpatch, when the NDP government
under Allan Blakeney brought in the infamous Bill
42. Th at legislation brought the industry to a crawl.
“Th e government started paying for repairs and
replacement. Th ere was still some work, but it was
not as lucrative,” he said.
Th e company added a second rig in 1980. “We
started it, and then it went like that,” John said,
making a downward motion with his hands in
reference to the oil business. “You just had to live
through it. You tried to keep your men around.
When you run your company yourself, you get by
with less.
“In the 1980s, Trudeau brought in the National
Energy Program, and guys were taking their rigs to
the States to work. We never went.”
“In 1985 oil went to $9 a barrel, just after we
bought Rig 3.” Page C8
C8 PIPELINE NEWS November 2012
Page C7“It’s all my fault,” John joked.
“You make do with less. It gets nicely going, and then you’re down to noth-
ing again.”
With Rig 3, they went to a double-triple layout.
When it came time to add Rig 4 in 2010, Jonathan noted, “We waited this
time for the crash to happen, then we bought the rig.”
“Rig 4 was in the yard and I said, ‘Well boys, there’s your inheritance. All
you have to do is pay for it,’” John said.
Family aff airJohn married Roseann, also known as “Sandy,” in 1966. She did all the ac-
counting and books until three years ago. She passed away in January 2010.
Th ey had four children. Th e two sons are still involved. Shannon and Mi-
chelle helped with the books when they were home. Both are now in Alberta.
Michelle and her husband have an endless tubing company in Medicine Hat,
and Shannon is in Airdrie. Her husband is an engineer.
“In later years we got some farmland. We started with 40 acres where the
house is. I liked horses and wanted a place out of town.”
Th ose 40 acres were purchased from Sandy’s father.
Th at love of horses has been passed down, as he pointed to his sons and
said “It turns out these guys are rodeo cowboys, ropin’ and ridin.’
Th eir current events are bareback riding and team roping for Jonathan, and
team roping and calf roping for Tyler. Both have earned a large collection of
buckles and saddles.
“Th e three (saddles) I won are in my house as decoration,” Jonathan, 42,
said.
Tyler, 37, said, “Th ree are in my house, and I ride fi ve.”
Both of the boys have been with the company their whole lives. Jonathan
said, “I started when I was 15. If anybody asked, I had to lie and say I was 16.”
Tyler added, “I was a little later. I didn’t start until I was 19. I fi lled in in
every position and did most of the farm work and ranching.”
Th ey now have 2,700 acres of land, 180 head of cattle and 40 horses.
Jonathan has shares in Rafter Anchor Rodeo, an amateur rodeo outfi t, and
Outlaw Buckers, a pro rodeo company. “I have horses at the Canadian Finals
Rodeo in Edmonton and the National Finals Rodeo in Las Vegas.
Other rodeos include Estevan, Elbow and Wood Mountain. Th ere were 10
horses at the Calgary Stampede and a number of bulls. One horse named Call-
ing Card was in the fi nal four of the $100,000 round of saddle bronc.
To run a service rig company and still take part in all these rodeos calls for
a lot of balancing and sharing duties, as well as a lot of planning.
Page C9
Working the same eld for four decades
A joint of tubing is li ed o the cat walk on John Kmita Ltd. Rig 1.
PIPELINE NEWS November 2012 C9
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Randy: 634-5405 - Cellular 421-1293Darcy: 634-5257 - Cellular 421-1425 • Fax: 634-4575
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“Terrible. “Terrible. The kids got The kids got
frostbite from frostbite from staring in an staring in an
empty fridge.”empty fridge.”- John Kmita’s response to an oil company man when
asked how things were going in the mid-’80s.
Page C8Good clients, safe workers
In driving through the Cenovus Weyburn
fi eld, one fi nds several Kmita rig signs along the
road. Working for decades for PanCanadian, then
Encana and Cenovus has its benefi ts. Regular work
meant a lot of it has been fi ve days a week, with
weekends off . Th at has allowed the Kmitas and
their staff to do things with their families.
“It was nice. It was a diff erent kind of oilpatch,”
Jonathan said.
Currently two of their rigs regularly work with
Crescent Point, the other two with Cenovus.
Th eir rotations have typically been 12 and
two, or fi ve and two, except for when big jobs are
underway.
“To keep long-term employees and guys want
to make it a career, you have to make it so they can
have times with their family,” Jonathan said. “You
need to keep guys from burning out. We usually
work 10 hour days. Th e cost of incidents is very
high.”
“Our accident record is second to none.”
Rig 1 has had 1,700 days without a lost-time
accident. Rig 2 is at 1,300, and Rig 3 is in excess of
2,000.
“If you’re careful and train properly, you don’t
get too many (accidents),” John said. “You get a lot
more done at a nice, even pace.
“We’ve worked for a lot of nice people who are
good to work for. Your company name speaks for
itself because you’ve been there so long.
He joked that someone almost has to die for a
toolpush position to open up.
John Kmita Ltd. has 25 to 27 staff on any given
day.
Jonathan said, “A lot of it is the personal ser-
vice. If you have an issue, you’re talking to one of us.
We have a more vested interest.”
Asked if they have had off ers to buy the busi-
ness, the response was quite a few. John said, “Th e
boys want to be in the business, so we’ll leave them
the company. Instead of selling it to them, I’ll give
it to them when I die. Th ey’re taking over now.”
Page C10
John, Jonathan and Tyler Kmita head up John Kmita Ltd.
C10 PIPELINE NEWS November 2012
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For Darryl Mutrie,
work these days isn’t all
that far from where he
grew up. Not far at all,
in fact.
When Pipeline News paid a visit to
John Kmita Ltd. Rig 1,
the unit for which he is
rig manager, it was just a
few miles from the farm
he grew up on, located
between Goodwater and
Weyburn.
“I’ve been here
pretty much all my life,”
he said.
He started as a
roughneck, and pro-
gressed up to driller,
which he did for six
or seven years. Th e last
seven years have been
spent as a rig man-
ager, also referred to as a
toolpush.
Mutrie, 36, has been
steady with John Kmita
Ltd. for 19 years now.
“I’ve been with these
guys the whole time,” he
said. “Rig 3 push Trent
Latham has been just as
long as me. We worked
together for I can’t re-
member how long.”
Prior to pushing on
Rig 1, Mutrie’s prior
experience was spent on
Rig 2.
“When I fi rst
started, It was fi ve days
a week and weekends
off . It’s still pretty much
fi ve and two.”
Mutrie noted he’s
been working close to
home, and that Ceno-
vus, their client, has
been good to them. It
also means he can have
a life.
“We drive 20 min-
utes to go to work,” he
said.
Th e easiest part of
his job is having expe-
rienced workers. Th at
makes your job a lot
easier, he explained.
Th e hardest part is
making sure everyone
is up on their safety
program. “But we have
a good safety program,”
he added.
Close to home is easier
Page C9Generally speaking, the company
doesn’t lay off staff at springtime. Th at
means shop work during breakup, but
it also means keeping your staff . “We
invest in them, so they invest in us,”
Jonathan said.
Tyler started looking after the
company’s safety program in 2010.
Th ey fi rst obtained their Certifi cate of
Recognition (COR) in 2007.
“It’s not as bad now that we’ve
done it a couple of times. Once it’s all
in place, it’s not as bad as fi rst getting
it into place.
Jonathan handles the manage-
ment role, but that doesn’t preclude
either of them from putting on the
coveralls and fi lling in as needed. “I
think I spend more time on the rig
than in here (the offi ce),” Jonathan
said. “Th is summer I was out there
roughnecking.”
Th at surprises some of the
younger guys, he noted, but it goes a
long way to gain their respect.
John still handles the invoicing
and similar work, as well as baling
on the farm. “I’m the hired hand, the
lowest guy on the totem pole,” he
smiled.
At 72 years old, he’s spent 52
years in the oilfi eld.
Asked about challenges, Tyler
said housing is one. “We’ve got guys
driving from Regina every day.”
Some of the hands who have
worked from Zama to Brooks in
Alberta are not used to being able to
be home every day. But having that
ability means a closer-knit oilpatch,
Jonathan said.
Most of their work is in the
Goodwater fi eld, or between Carlyle
and Weyburn.
“For the longest time, we were the
edge of the oilfi eld. Now it’s moved
more west and south,” Jonathan said.
John had knee replacement earlier
this year that has prevented him from
riding. But like any cowboy, if you fall
off , you get back in the saddle.
“I’ve got some fat old horses wait-
ing for me to ride,” he concluded.
Ridin,’ ropin,’ and roughneckin’Driller Tyler
Collins seen at the controls of John Kmita Ltd. Rig 1.
PIPELINE NEWS November 2012 C11
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Estevan –When you hear the background of people working with service
rigs, usually you’ll hear they were farm boys, or worked in this industry or
that. Rarely will you hear Blake Mile’s response. He’s a marine engineer. More
specifi cally, he’s a marine engineer who now works on the Prairies. But in some
ways, it’s a return to home.
Now Mile looks after the fl eet of 10 service rigs with Sun Country Well
Servicing in Estevan. He joined the fi rm in February 2011.
“I started as a journeyman welder 25 years ago,” he said. As a kid he grew
up in the Kipling area, and went to high school in Regina.
“About 15 years ago I became a licensed heavy duty mechanic. I went to
Alberta in 1987. I worked in the Calgary area and then Fort McMurray. Origi-
nally I worked in fabrication of natural gas compression equipment.”
Following that, Mile spent a great deal of time working with Cummins
in the oilsands mines. Komatsu, he pointed out, uses Cummins engines, as do
Hitachi and O & K.
“I was the oil and gas fi eld engineer for Cummins for Western Canada
when I met Brad,” he said, referring to Brad Bennett, vice-president of opera-
tions for Sun Country Well Servicing. Th ey met over “mechanical issues,” sort-
ing out third party issues.
“I spent seven or eight days straightening out issues with Brad and other
customers.”
As for what attracted Mile to Sun Country, he noted, “Brad’s rigs were
some of the fi rst service rigs that stuck their neck out.”
Th e original engines were spec’d as fi re truck engines, but approved for
warranty in use on service rigs. Now they are using the same engine, but with
more of a bulldozer confi guration. Page C12
Keeping down time to a minimum
Equipment manager Blake Mile probes every fault code generated by the computerized systems of Sun Country Well Servicing’s rigs as part of their maintenance programs.
C12 PIPELINE NEWS November 2012
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Page C11In 2002, Mile fi nished his training with the British Columbia Institute of
Technology and got his marine engineer designation from Transport Canada.
A marine engineer handles everything from welding, mechanics and machin-
ing to thermodynamics and boilers. He took the training on leaves of absence
between work stints with Cummins. He would do a semester, taking classes
day and night from 8 a.m. to 10 p.m.
“After my term was done, I went back to Cummins.”
Th ere was a certain motivation behind that training. He explained, “I got it
to do humanitarian aid work.”
“I was in South and Central America on a hospital ship doing work in
Th ird World countries.”
Th e ship was known as the Caribbean Mercy. Both he and his wife worked
aboard for several years as full-time volunteers.
“I held the position of fi rst mechanic/fourth engineer. I was able to do
many off -ship things like orphanage construction, this was the most rewarding
work of my life.
Th e ship was 54-years-old and expensive to keep operating – Mercy Ships
decided to remove it and the 53-year-old Anastasis from service to better focus
on the relative youngster 27-year-old 16,572 ton Africa Mercy – still at work.”
“I was working in Fort McMurray and burned out and looking for sun-
shine.” Page C13
Marine engineer on the Prairies
Blake Mile served as a marine engineer on the hospital ship Carib-bean Mercy for several years. The Caribbean Mercy o ered an eye surgery unit, cargo capacity, conference and seminar facili es for a variety of programs. Her fuel and water tanks provided a cruising
range of 12 days, or 3600 miles. Photo submi ed
PIPELINE NEWS November 2012 C13
#6 - 461 King St. • Estevan, SK
637-3460 www.petrobakken.com
Strength In Our Resources
Page C12
Eventually that ship was retired,
and Mile returned to Canada, and
Cummins. A few years later, he found
work with Sun Country.
“It’s important to have someone
like Blake who can troubleshoot,”
Bennett said.
“Th e idea is to get the right re-
sources engaged, either their own (the
rig’s crew) or third party,” according
to Mile.
“Our downtime is virtually nil
due to our maintenance program,”
said Bennett.
Th at means mining every com-
puter for fault codes on every rig, and
watching items like fuel consumption.
“It’s usually a week of follow-up,”
Mile said when they go over a rig.
Field supervisor Phil Amosah
handles the rig inspections. Together
they tear down and build up a rig,
looking for issues. Most of the main-
tenance is handled by the fi eld crews.
Th ey also call upon two private
mechanics, Shane Kits of CMT Me-
chanical, and Dennis Sabourin of LRJ
Mechanical. Both are out of Oxbow.
“If we have equipment in the
yard, you’re not making money.”
Indeed, it’s a rare occasion when
you will see one of their rigs in the
yard. Usually the location, on the
Shand Road, is empty except for the
shop and a few vehicles.
Kelly Schnell of Kelly Hydraulics
of Frobisher is a key support person,
they added.
Drilling and Service ActivityOnline or on Your GPS
Check the latest status of any rig in western Canada, hunt down leads for service or supply sales and know what your competitors are up to with the Rig Locator.
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Field supervisor Phil Amosah, le , confers with Rig 8 manager Brad Markham on a site near the U.S. border.
C14 PIPELINE NEWS November 2012
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Estevan – Shan-
non Leibel gets some
pretty high praise from
the senior management
at Sun Country Well
Servicing. As the per-
sonnel co-ordinator for
a company in a highly
competitive market for
workers, it’s a key posi-
tion.
“She’s pretty spec-
tacular. I could never
do her job. She has a
memory you wouldn’t
believe,” said Brad
Bennett, vice-president
of operations for Sun
Country.
“We’ve got roughly
56 people on the rigs,”
said Bennett. Some rigs
are running with six
men, but the normal is
fi ve. Having additional
people allows for train-
ing and some fl exibility
in staffi ng.
“We’ve got three
out of Oxbow. Th e rest
are out of Estevan,”
Bennett said. “Th at’s
where our rig managers
are, and crews as well.”
Leibel started in
August 2011, after a
three year stint with
Precision Drilling and
eight years with Ensign
Rockwell.
“I do all the crew
co-ordination. Guys
need time off ,” Leibel
said. Family functions
like weddings are just
one example.
“For any time off
for any reason, I will
re-crew their spot on
that rig so they can take
it off .
Th e hours the work-
ers put in depend on
where they are work-
ing. “I’ve had guys work
a three-hour day or a
13-hour day. Usually it’s
between eight and 12,
seven days a week.
Th ey don’t have a
fi xed rotation, but when
they have six people on
a rig, it makes it easier
or someone to take time
off .
Th ey do follow
hours of service require-
ments, however.
As for where they
fi nd people, she said, “I
advertise through the
human resources centre
and local papers. I get
a lot of referrals from
employees. I have a
gentleman today from
an employee on Rig 5.”
“We’ve got quite a
few from Ontario, about
10,” Bennett said. “We
also have two trailers at
the trailer park and have
short-term accommoda-
tion room for up to six
people.”
Housing, Ben-
nett said, is a big issue.
“It’s very expensive,” he
noted.
Page C15
Keeping the rigs manned
An Excel spreadsheet is key for Shannon Leibel in keeping track of all of Sun Country’s safety quali ca ons for their sta .
PIPELINE NEWS November 2012 C15
Gibson Welding Ltd.Oilfield Trucking & Rentals
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Shannon Leibel, right, confers with o ce administrator Jae Friess. Leibel handles the human resources func on for Sun Country Well Servicing
Page C14
Is it hard to fi nd people?
“Yes, it’s a big challenge,” Leibel responded.
Earlier in her career, there were only a few
service rig companies around, she said. “Now
there are many companies competing for the same
people.”
“Dean Sawyer from Sawyer Safety refers a lot
of people from Ontario. Word must be getting
back there,” Leibel said. “Five young gentlemen
from Ontario went to Sawyer for training. He
referred our name. We hired three of the fi ve.
“It’s a total blessing. I appreciate him sending
them.”
Very few women apply, however. Only one has
applied in the past year, but she didn’t get hired
because she didn’t have a driver’s licence. Since
each crew of fi ve takes out fi ve vehicles, no licence
equates no job.
In addition to fi nding staff for 10 rigs, Leibel
also tracks all the training and certifi cates for the
roughly 60 employees including management.
“I have an Excel spreadsheet I track all the
tickets in,” Liebel said.
Leibel is originally from Fisk, between Rose-
town and Kindersley. She and her ex-husband
moved to Estevan in 1997. “I was here before the
boom hit. Th ere were lots of places to live, and no
work,” she said. “It’s totally opposite nowadays.”
Governments in Canada have raised a total of
$1.07 billion in land sale revenue to the end of Sep-
tember, well off the pace set in 2011 thanks largely to
a steep drop in Alberta.
Over the fi rst nine months of 2011, Canadian
governments raised $3.41 billion from land sales,
up from $3.04 billion in 2010, and the third highest
tally in the last 10 years. A total of $4.12 billion was
raised over the same period in 2008, with $3.71 bil-
lion spent in 2006.
Average land prices over the fi rst three quar-
ters of 2012 plunged to $295.78 per hectare, down
from $846.79 over the same stretch a year ago. Th e
amount of Crown land sold totalled 3.61 million
hectares, down from 4.02 million over the fi rst nine
months of 2011.
Alberta led the way in bonus bid revenue in the
fi rst three quarters of 2012, but is well back of last
year’s torrid record-setting pace. Th e province col-
lected a total of $872.66 million in bonus bids from
January to September on 2.43 million hectares at an
average of $357.98.
At the same point in 2011, $3.06 billion in
bonus bids had rolled into provincial coff ers for 3.46
million hectares at an average of $884.50. Th e prov-
ince ended up with a total of $3.64 billion in auction
revenue for the full year of 2011, an-all time record.
Th e huge bonus haul and high per-hectare averages
paid last year were in large part due to heavy produc-
er spending to tie up land in the Duvernay shale play.
Despite the drop in 2012, overall relatively
strong spending at land sales in Alberta demon-
strates that the Western Canadian Sedimentary
Basin still has considerable unconventional prospec-
tivity where explorers are willing to step out and
apply modern drilling and completions technology
to deeper and more remote areas, analysts say.
Over in British Columbia – a mainly natural
gas producing jurisdiction – the province brought in
$97.39 million over the nine months ending Sept. 30
on 92,173 hectares at an average of $1,056.61. To the
same point of 2011, a total of $123.19 million had
rolled into provincial coff ers for 121,165 hectares at
an average of $1,016.71.
Saskatchewan also saw fewer land sale dollars
come in over the fi rst nine months of 2012. Bonus
bids fell to $78.93 million on 146,073 hectares at an
average of $540.38. Over the same period of 2011,
industry spent $214.88 million acquiring 420,747
hectares of Crown land at an average of $510.70.
On the other side of the coin, in Manitoba,
land sale bonus revenue over the fi rst nine months
climbed to $11.13 million as 17,049 hectares ex-
changed hands at an average of $652.73. Over the
same period last year, the province had collected
$10.1 million on 17,798 hectares at an average of
$567.60. Th e oil-prone province reached a record
$13.14 million for all of 2011. Manitoba has one
more sale left this year, scheduled on Nov. 14, to
break last year’s watermark.
In addition to this, producers acquired a further
1.58 million hectares in work commitment bids over
the fi rst nine months of the year. Total work com-
mitment bids totalled $1.06 billion, mostly from
Royal Dutch Shell plc.’s $970 million for work bids
in Nova Scotia, announced in January, on a total of
1.38 million hectares.
Land sale bonus bids down over rst nine months of 2012
C16 PIPELINE NEWS November 2012
Calgary – Based on continued exceptional well results and strong produc-
tion volumes, the board of Raging River Exploration Inc. has approved a $15
million increase in its 2012 capital budget to $82 million from $67 million.
According to its website, Raging River Exploration Inc. is a junior oil and
gas producer currently focused in the Kindersley area of Saskatchewan.
Th e management of RRX has had a successful track record of building four
previously successful oil and gas production companies including Wild Stream
Exploration and Wild River Resources which were both sold to Crescent Point
Energy Corp.
Th e company will add 10 to 12 net horizontal wells to its program for a
total of 41 to 43 net wells. Th e revised capital budget also contemplates pre-
drilling a number of 2013 locations assuming that operating conditions remain
favourable.
Th e revised capital budget provides $44 million for drilling and comple-
tions, $4 million for land, seismic and facilities, and $34 million for acquisi-
tions.
Based upon fi eld estimates, third quarter production exceeded expecta-
tions with average production of 2,100 boepd (97 per cent oil). Average daily
production for the period from April through December 2012 is expected
to be 2,150 boepd (97 per cent oil), a further 10 per cent increase from prior
guidance of 1,950 boepd. Th e increased forecast, the third this year, represents
a 26 per cent increase from initial guidance of 1,700 boepd without increased
capital expenditures.
Th e 10 to 12 incremental net wells are expected to have a material impact
on exit production, which is now expected to be 2,800 to 2,900 boepd (97 per
cent oil). Th is third increase in exit guidance represents a 30 per cent increase
from initial guidance of 2,200 boepd without increased capital expenditures.
Weather conditions improved during the quarter, which allowed for an
aggressive drilling program. Th e company drilled a total of 37 (28.8 net) wells
during the third quarter including 36 horizontal Viking oil wells at a 100 per
cent success rate and one vertical stratigraphic test well. A total of 17 (16 net)
wells were placed on production in the third quarter and 19 (11.8 net) wells
were waiting to be brought on stream in October.
Th e optimized drilling and completion techniques continue to provide
consistent improved production results. Average 45-day production rates for
the 17 new wells placed on stream during the third quarter have exceeded 50
bpd of oil. Th is is consistent with the results of the fi rst 13 wells drilled with
this technique earlier this year.
Drilling and completion costs have continued to trend lower. Th e aver-
age D&C cost in the third quarter was $800,000, leading to total per well on
stream costs of $925,000.
Raging River’s rapidly increasing production and cash fl ow will allow the
company’s balance sheet to remain “exceptionally strong,” according to the
company. Th ey forecast that net debt at year-end 2012 will be approximately
$35 million, 55 per cent drawn on its $65 million credit facility, representing
less than 0.7 times debt to trailing fourth quarter cash fl ow.
Raging River Increases 2012 capital budget to $82 million
Regina – Building permits in
Saskatchewan kept pace with hot
summer temperatures.
Th e province led the country
in new building permits for August
2012, according to a report issued by
Statistics Canada on Oct. 5.
Saskatchewan’s building permits
rose 47.9 per cent over last August,
the highest percentage increase among
the provinces and more than double
the national average of 22 per cent.
“Th e construction industry is an
important part of Saskatchewan's
economy and these numbers highlight
the high demand in the province for
construction services,” said Economy
Minister Bill Boyd.
“Th ese are stellar numbers, and
clearly show Saskatchewan's economy
continues outperforming other prov-
inces.”
Permits were up for both the resi-
dential and non-residential sectors on
an annual basis. Residential permits
rose by 49 per cent while non-resident
permits were up by 46.4 per cent.
Month-over-month, building
permits in the province were up 31.7
per cent between August 2012 and
July 2012. Saskatchewan ranked fi rst
among the provinces, well ahead of
the 7.9 per cent recorded nationally.
“Construction projects bring jobs,
business opportunities and a legacy of
infrastructure improvements to com-
munities across Saskatchewan,” Boyd
said.
“Th e steady increases in our
population will likely mean that this
high-level of construction work will
continue the future, building an even
stronger Saskatchewan as we move
forward.”
Saskatchewan tops in building permits
PIPELINE NEWS November 2012 C17
SURFACE BIT RENTALQUALITY RERUN & RETIP
24 HR SERVICECELL: 306-421-3726RES: 306-634-7538
CHAD FROESE OFFICE: 306-388-2941
ANNER BIT SERVICE
A resource assessment of Passport Energy
Ltd.’s land holdings in the Hardy area of south-
eastern Saskatchewan by independent evaluators,
GLJ Petroleum Consultants, has a best estimate of
original oil in place (OOIP) of 1.72 million bbl.
Th e study, eff ective April 30, 2012, covers 1,774
net hectares of Passport’s interests in the Hardy
area along with an additional 2,189 net hectares of
lands subject to a farm-in agreement.
Th e OOIP estimate is based on the Hardy S
HZ 1A4-16-4B4-09-004-21W2 well performance
along with existing well control over 259 (58 net)
hectares of land in the Hardy North area.
GLJ’s best estimate of 7.44 million bbl. of
discovered petroleum initially in place (DPIIP) re-
sources was based on the 1A4-16 well performance
along with existing well control encompassing more
than 1,490 (252 net) hectares of land in the Hardy
North area. Th ere is no certainty that it will be
commercially viable to produce any portion of the
resources.
Th e undiscovered petroleum initially in place
(UPIIP) resource (total best estimate of 75.62
million bbl.) is based on existing Bakken oil pro-
duction and well control encompassing more than
9,327 gross hectares of land in which the company
has earned a working interest in more than 1,522
net hectares of land in the greater Hardy area. All
numbers are net to Passport. Subject to the terms of
a farm-in agreement, Passport has the right to earn
an additional 2,189 net hectares of land. Th ere is no
certainty that any portion of the resources will be
discovered. If discovered, there is no certainty that
it will be commercially viable to produce any por-
tion of the resources.
All GLJ estimates of DPIIP are as at April 30,
2012, and have been prepared in accordance with
the Canadian Oil and Gas Evaluation Handbook.
Th e 1A4-16 well, Passport’s fi rst development
well in the Hardy Bakken pool, has cumulative
production of more than 27,000 gross bbls of oil
in its fi rst year of production. Th e well continues to
produce above expectations, averaging more than
60 (15 net) bpd of light sweet (38.5 degree API) oil
for the month of August 2012.
Passport recently completed and placed on
production its fi rst operated horizontal Bakken oil
well, Passport Minton HZ 1C11-32-3A-16-33-
3-21W2. Th e well was completed using a 32 stage
multi-fracture stimulation program and is currently
in its initial cleanup and optimization phase of
production. Th e company plans to announce the
well's performance once stabilized rates have been
achieved.
Th e 1C11-32 well represents the fi rst of a
two-well commitment program on the previ-
ously announced farm-in agreement with a large,
independent, Canadian oil and gas producer that
encompasses 32 contiguous sections of land. With
this well, Passport has earned a 32.5 per cent work-
ing interest (APO) in fi ve sections.
Th e agreement calls for Passport, as the opera-
tor (along with its 50 per cent partner), to fund the
drilling and completion of two horizontal Bakken
commitment wells to earn 100 per cent (50 per cent
net Passport) in the spacing unit until payout of
the wells (subject to a convertible gross overriding
royalty) and a 65 per cent (32.5 per cent net) work-
ing interest after payout of the wells and 10 sections
of land.
Passport plans to drill, complete and place on
production the second horizontal commitment well
on or before the end of the fourth quarter, surface
conditions permitting.
Following the two wells, the companies have
the option to drill fi ve additional wells under the
same terms and conditions to earn the balance of
the 32 section block.
Passport reports hardy resource assessment, updates activity
Curly’s Picker Service Ltd.Curly’s Picker Service Ltd.Mark T. (Curly) Hirsch
1595 Dieppe Cres.Estevan, Sask.S4A 1W8
Secor Certi edCell: (306) 461-5898Fax: (306) 634-6690
C18 PIPELINE NEWS November 2012
516 Nesbitt Drive, Estevan • 634-2631(Behind Power Dodge)
Canada's leading distributor of industrial, eet and safety products.
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BIG D’S LEASE SERVICE
P.O. Box 544
Stoughton, Sask. S0G 4T0
(306) 457-7033(306) 457-7673
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105, 335 Hoffer Drive, Regina, SK. S4N 6E2
LECLAIRTRANSPORT
Lyle LeclairCell: 306-421-7060
General Oilfi eld Hauling
Cordell JanssenCordell JanssenDistrict ManagerDistrict Manager
DownholeDownhole
93 Panteluk Street, Kensington Avenue N93 Panteluk Street, Kensington Avenue NEstevan, SaskatchewanEstevan, Saskatchewan
PHONE:PHONE: 306-634-8828 • 306-634-8828 • FAX:FAX: 306-634-7747 [email protected] • www.nov.com
JUSTIN WAPPEL - Division Manager
401 Hwy. #4 S. Biggar, SaskatchewanPO Box 879 S0K 0M0Ph (306) 948-5262 Fax (306) 948-5263Cell (306) 441-4402 Toll Free 1-800-746-6646Email: [email protected]
Lloyd Lavigne • Kirk ClarksonOwners/Managers
6506 - 50th AvenueLloydminster, AB
Phone: (780) 875-6880
5315 - 37th StreetProvost, AB T0B 3S0
Phone: (780) 753-6449
Fax: (780) 875-7076
24 Hour ServiceSpecializing in Industrial & Oilfield Motors
Your best choice for accommodations
in Carlyle, Sk.• Full kitchen and upscale extended stay
• Complimentary continental hot breakfast• Free high speed internet
• Meeting roomReservations: 306-453-2686
RICK CORMIERManager
Box 609 Bus: (306) 634-8084Carlyle, SK Cell: (306) 577-8833S0C 0R0 Fax: (306) 453-6075www.truetorq.ca [email protected]
RESOURCE Gu de
PIPELINE NEWS November 2012 C19
CAREER Gu de
We require the following:
Matrix Well Servicing
S
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EMPLOYMENT OPPORTUNITY
Corner Pocket Publishing in Melita, MB is seeking an individual for
ADVERTISING SALES The successful candidate will have
strong written and communication skills. Computer skills are an asset, however, training is available.
This is a permanent full-time position with benefit package.
For more information or to apply, contact: Corner Pocket Publishing
Box 820 Melita, MB R0M 1L0
Phone: (204)522-3491 Fax: (204)522-3648
Email: [email protected] A TTENTION : C HERYL R USHING
Th e Alberta government decided in early Octo-
ber not to lay charges in connection with an incident
that saw several hundred migratory birds land on
tailings ponds at Syncrude Canada Ltd. and Suncor
Energy Inc. on Oct. 25 and 26, 2010, after an expert
found the primary cause was adverse weather.
Th e decision was made after a thorough inves-
tigation and was based on expert advice provided
by the University of Alberta’s Colleen Cassady St.
Clair, a leading expert in North America on human-
wildlife encounters and the deterrence methods
used to mitigate that confl ict.
St. Clair concluded that both Syncrude and
Suncor could not have prevented the bird landings.
She also determined that there were many factors
leading to the incident where 551 birds were killed
or euthanized after coming in contact with bitu-
men. Th e most signifi cant factor was adverse weath-
er conditions, including strong and variable winds,
freezing rain and poor visibility. Th ese factors forced
migratory birds to land abruptly in large numbers in
and around tailings ponds, as well as on roadways
and parking lots.
Based on the evidence gathered by provincial
investigators and on St. Clair’s expert opinion, the
Crown prosecutor has found that there is no reason-
able expectation of conviction in this case.
Th e investigation has, however, led to discover-
ies that may change the approach taken to bird de-
terrence in Alberta. In her report, St. Clair suggests
that the position of deterrents and artifi cial lights
may have infl uenced where the birds landed. Indus-
try practice for bird deterrence had not previously
accounted for the infl uence of light during poor
weather. Th is important new information has been
shared with oilsands operators.
A number of other improvements have also been
implemented since the incident, including radar-
based deterrent systems and standardized regional
monitoring protocols. Industry and the University
of Alberta are working collaboratively to implement
electronic, fi eld-based data recording, develop new
technologies for automating bird monitoring, and
testing new methods for bird deterrence.
Th ese eff orts, together with the court-ordered
research project resulting from an April 2008 in-
cident in which more than 1,600 ducks died after
landing at Syncrude’s Aurora mine tailings pond,
will identify best practices for preventing bird land-
ings on tailings ponds in the oilsands and lead to
innovation for other industrial developments. Syn-
crude was charged in connection with that inci-
dent.
Syncrude was found guilty in court on two envi-
ronmental charges in connection with the deaths of
the ducks. Th e company was charged under the Al-
berta Environmental Protection and Enhancement
Act and the federal Migratory Birds Convention
Act with failing to protect migratory birds from a
toxic tailings pond.
No charges laid in October 2010 bird landings
C20 PIPELINE NEWS November 2012
THE FOLLOWING POSITIONS ARE AVAILABLE IMMEDIATELY
Interested applicants can fax to: 306-634-4258 or
email: [email protected]
MECHANIC
Some of the many
benefits to consider
when applying for
a position at
Bert Baxter Transport
in Estevan:• Full time, permanent
employment
• Full benefits packages available
• Clean, safe work environment
SERVICE TECHNICIAN
CAREER Gu de
PIPELINE NEWS November 2012 C21
Equal Opportunity EmployerAll applications are welcome
Currently seeking• Cathodic Protection Technicians
• General Labourers• Journeyman Electricians
Experience an asset but willing to trainCompetitive wages
Apply today with resume at:937 Henry Street, Estevan, SK S4A 1N5
Ph: 306-634-1917
Fax: 306-634-1918
Be Part of TEAM!
CAREER Gu de
C22 PIPELINE NEWS November 2012
101 Supreme St. (Shand access road)Sun Country Well Servicing Inc. is currently seekingexperienced Service Rig Personnel. Preference will
be given to Class 1A and 3A applicants.
Interested individuals can submit a resume via email or fax to Shannon Leibel at:
Email: [email protected] 306 634 1200 • Cell 306 421 3418
is looking for
Heavy Duty Truck& Transport Mechanics
to provide quality service in a team environment.
Competitive wages, benefits package.
Mail, fax or email resume to:P.O. Box 1577, Estevan, SK S4A 2L7Fax: [email protected]
Oilfield Construction Limited
NOW
COME JOIN OUR TEAM! We’re hiring for various
projects throughout
Southern Saskatchewan
Over 50 years strong, Arnett & Burgess Oilfi eld Construction Limited safely
provides quality pipeline construction, facility installation, pipeline integrity, custom fabrication, maintenance and
related construction services to the energy industry.
Compensation:Competitive wages
Overtime Daily Subsistence /Living
allowance
Preferred Certifi cationsH2S Alive
Standard First Aid & CPR
Required Certifi cations Driver’s License
Ground Disturbance – (Heavy Equipment Operators only)
For more details and other career opportunities please visit:www.abpipeliners.com
For Inquiries please call: 780.384.4050
Please submit your resume to :email: [email protected] • Fax:403.265.0922
• CONSTRUCTION MANAGER- Candidates must have previous leadership/managerial experience within the Pipeline Construction industry (mainly underground lines max 16”).This position’s home base is in Regina.
• FIELD SAFETY ADVISOR- The ideal candidate will have a CSO designation. This position will oversee pipeline construction projects in southern sk with a home base in Regina
• PIPELINE CONSTRUCTION LABOURERS
• FOREMEN
• HEAVY EQUIPMENT OPERATORS-Employee & Owner Operators with Pipeline Construction Experience
All positions require previous experience in Pipeline Construction. Previous experience on Pipeline Integrity projects is an asset.
CAREER Gu de
PIPELINE NEWS November 2012 C23
Supplementing both the Drilling and Production sectors of the Oilfield Industry. Tanker Units, Pressure Batch Trucks, and a Fully Equipped Pressure Batch Trucks, and a Fully Equipped
Service Truck are available. Service Truck are available.
We specialize in transporting Salt Water, Crude Oil, We specialize in transporting Salt Water, Crude Oil, Completions, Completions, Contaminated Mud & Fresh Water!Contaminated Mud & Fresh Water!
Office 1-306-453-4470Office 1-306-453-4470Fax 1-306-453-4404Fax 1-306-453-4404
Manager 1-306-577-9960Manager 1-306-577-9960Dispatcher 1-306-577-9801Dispatcher 1-306-577-9801
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Specializing in Non DamagingSpecializing in Non DamagingBiodegradable Drilling FluidsBiodegradable Drilling Fluids
Designed for Horizontal DrillingDesigned for Horizontal DrillingPO Box 1089, Carlyle, Saskatchewan S0C 0R0PO Box 1089, Carlyle, Saskatchewan S0C 0R0Phone: Phone: (306) 453-4411 (306) 453-4411 Fax: Fax: (306) 453-4404 (306) 453-4404
Division PresidentDivision President306-577-9900 (Carlyle)306-577-9900 (Carlyle)
Field Supervisor Field Supervisor306-421-0344 (Estevan)306-421-0344 (Estevan)
Field SupervisorField Supervisor306-452-8182 (Redvers)306-452-8182 (Redvers)
Warehouse ManagerWarehouse Manager306-577-3347(Carlyle)306-577-3347(Carlyle)
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Designing & Implementing Designing & Implementing Production Chemicals Production Chemicals
for Western Canadafor Western Canada
Cell: 306-575-7521Cell: 306-575-7521Of ce: 306-453-4414Of ce: 306-453-4414Fax: 306-453-4415Fax: 306-453-4415
mm g gg gf th Oilfi ld I d t T k U itf th Oilfi ld I d t T k U it
menting both the Drilling and Production menting both the Drilling and Production
C24 PIPELINE NEWS November 2012