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4 North American Pipelines | NOVEMBER/DECEMBER 2009 napipelines.com

ON THE COVER: Teri McKibbon is CEO of Aecon Infrastructure Group and president of the Pipe Line Contractors Association of Canada. He be-lieves partnerships build the foundation of success, and it’s his mission to build and preserve strong relationships with the association’s contractors and the unions.

20 A Partner in Pipelines Contractors and unions build strong relationships for Canada’s oil

and gas pipeline industry. By Bradley Kramer

FEATURES

26 Mapping Future Pipelines Sunoco Logistics teams with Geospatial Corp. to create an accurate

3D GIS database. By Todd Porter and William Chaparro

30 Help Wanted Keep pipeline projects on track through workforce recruitment and

retention programs. By Pam Stask

34 Laying it Down How to choose the right pipelayer for an installation project.

By Bradley Kramer

38 Setting the Keystone HDD plays a vital role in building TransCanada’s Keystone Pipeline.

By Sharon M. Bueno

DEPARTMENTS8 News

16 Project Roundup

40 Product Showcase: Excavators

46 Events Calendar

COLUMNS6 Editor’s Message

MARKETPLACE45 Business Cards

46 Index of Advertisers

November/December 2009Volume 2 Issue 3

North American Pipelines (ISSN 2150-9190) is published six times per year. Copyright 2009, Benjamin Media Inc., P.O. Box 190, Peninsula, OH 44264. USA All rights reserved. No part of this publication may be reproduced or transmitted by any means without written permission from the publisher. One year subscription rates: complimentary in the United States, Canada and Mexico. Single copy rate: $10. Subscriptions and classified advertising should be addressed to the Peninsula office. POSTMASTER: send Changes of Address to North American Pipelines, P.O. Box 190, Peninsula OH 44264 USA.

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Catching Up to the Economic Rebound

Pipeline contractors in North America are starting to feel the effects of the global recession. Projects are winding down for 2009, and 2010 appears it will be a slow go in the oil and gas industry.

The economy is starting to recover around the world, and particularly in North America. Canada’s recession ended in late summer. The U.S. Commerce Department announced on Oct. 29 that the U.S. economy grew in the third quarter by an annual rate of 3.5 percent, signaling the end of its downturn. And the Organization for Economic Cooperation and Development (OECD) predicts that Mexico will emerge from recession in 2010 after the country experienced growth in its gross domestic product in the third quarter of 2009.

Oil and gas pipeline construction defi ed the recession in 2009 because planned projects were already under way, with fi nancing in place. However, fall-ing oil and gas prices over the last year halted construction planning. Now that the economy is starting to pick up and oil and gas prices are increasing, there is a lag in pipeline projects.

The industry needs time to ramp up again and begin building more pipelines and facilities, says Barry Brown, executive director of the Pipe Line Contractors Association of Canada (PLCAC). He believes pipeline construction will pick up again in 2011.

Despite expectations for a slow year in 2010, the industry has reason to be optimistic for the future, says Teri McKibbon, the president of the PLCAC and CEO of Aecon Infrastructure Group. Oil and gas reserves in North America present major opportunities ahead for pipeline owners and contractors alike.

Furthermore, sustained economic growth in China and other Asian countries is contributing to the beginnings of a rebound in world oil consumption, accord-ing to the U.S. Energy Information Administration (EIA), which reported that oil consumption by OECD member countries will continue to show year-over-year declines for the fourth quarter of 2009, but oil demand growth in non-OECD countries during this period is expected to more than offset these losses, leading to the fi rst growth in global oil consumption in fi ve quarters. EIA projects world oil consumption to grow in 2010 by 1.26 million barrels per day, including a reversal of a downward trend in U.S. oil consumption that began in 2005.

As 2009 winds to a close, the oil and gas pipeline industry will be catching up on current projects and planning for the future. Indicators show that the 2010 slowdown in the industry will be but a small valley before the next peak.

Bradley KramerAssociate [email protected]

Editor’s Message

Publisher

Bernard P. Krzys

Associate Publisher

Robert D. Krzys

Editor

James W. Rush

Associate Editor

Bradley Kramer

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Pam Stask

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W. M. Conley

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Pete McNeil

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North AmericaNews

The eastern portion of the Rockies Express Pipeline has been fi nished, completing the 1,679-mile pipeline that transports natural gas from Colorado and Wyoming to Ohio.

The fi nal 195 miles of Rockies Express-East went into service on Nov. 12 after the completion of construction for the portion of the pipeline from the Lebanon Hub in Warren County, Ohio, to Clarington in Monroe County, Ohio.

“We are pleased that the fi nal leg of Rockies Express is in service,” says Steve Kean, president of Kinder Morgan’s Natural Gas Pipelines group.

Kinder Morgan owns 50 percent of the Rockies Express Pipeline (REX), which it constructed and operates. Sempra Pipelines & Storage and ConocoPhillips each own a 25 percent stake in the pipeline.

Now that REX is fully operational, the pipeline is one of the largest natural gas pipelines ever constructed in North America, with a total capacity of 1.8 billion cu ft per day (bcf/d). The pipeline consists of three main portions: REX-Entrega, REX-West and REX-East — the most recently completed portion.

REX-Entrega, which was formerly the Entrega Pipe-line, is a 328-mile pipeline that was purchased by Rockies Express Pipeline LLC in February 2006 and is now a part of the overall REX system. REX-Entrega runs from the Meeker Hub in Rio Blanco County, Colo., to the Cheyenne Hub in Weld County, Colo.

REX-West is a 713-mile pipeline from Weld County, Colo., to Audrain County, Mo. Virtually the entire route parallels existing utility corridors, using siting guidelines from the Federal Energy Regulatory Commission (FERC), and most of it is in sparsely populated areas. FERC ap-proved construction of REX-West in April 2007. The pipe-line went into service in May 2008.

REX-East is a 638-mile pipeline that stretches from Audrain County, Mo., to Monroe County, Ohio. The REX stakeholders fi led an application with FERC in April 2007 to approve construction on the eastern portion.

Houston-based Kinder Morgan owns an interest in or operates more than 28,000 miles of pipelines and

170 terminals in the United States. Sempra Pipelines & Storage, based in San Diego, develops, builds and operates natural gas pipelines and storage facilities in Latin Amer-ica and the United States. ConocoPhillips, also based in Houston, is an international, integrated energy company with about 30,000 employees and $152 billion of assets.

Kinder Morgan’s Next MoveThe same week Kinder Morgan announced the com-

pletion the REX pipeline, the company also announced it has entered an agreement with Copano Energy for a 50/50 joint venture to provide gathering, transportation and processing services to natural gas producers in the Eagle Ford Shale resource play in south Texas.

The joint venture will construct, as a fi rst phase, an approximately 22-mile, 24-in. natural gas gathering pipeline that will originate in LaSalle County, Texas, and terminate in Duval County, Texas, with an initial capac-ity of 350 million cu ft per day. The pipeline is expected to be completed in mid-2010.

Houston-based Copano Energy is a midstream natural gas company with operations in Oklahoma, Texas, Wyoming and Louisiana.

Complete: Final Leg of Rockies Express Pipeline All 1,679 Miles of the Natural Gas Pipeline Are Now in Service

The Rockies Express Pipeline went into service on Nov. 12 after construction wrapped up in Monroe County, Ohio.

The Rockies Express Pipeline runs from Colorado and Wyoming to Ohio, transporting 1.8 billion cu ft of natural gas.

napipelines.com NOVEMBER/DECEMBER 2009 | North American Pipelines 9

Williams’ Northwest Pipeline Completes Colorado Hub Connection

The Federal Energy Regulatory Commission (FERC) has authorized Williams’ subsidiary Northwest Pipeline GP to place its 24-in. diameter natural gas transmission pipeline known as the Colorado Hub Connection into service.

The approximately 26.4-mile pipeline and related facilities connect the Meeker/White River Hub, a regional production area hub, with the Northwest Pipeline mainline system south of Rangely, Colo. The project will provide approximately 360,000 dekatherms per day of fi rm transportation service on Northwest’s mainline to delivery points as far south as Ignacio, Colo. At Ignacio, Northwest interconnects with El Paso Natural Gas and Transwestern Pipeline Co. The cost of the project is approximately $60 million.

“Completion of the Colorado Hub makes it possible for us to connect the Piceance Basin supplies with markets in the western U.S. through Northwest’s existing mainline system,” says Phil Wright, president of Williams’ gas pipeline busi-ness. “We appreciate the efforts of the FERC and other state and federal agencies in their timely and professional review and approval of the project.”

In August 2007, Northwest conducted an open season for the project and fi led an application for a FERC certifi cate in September 2008.

Canadian Energy Board Announces Next Steps for Mackenzie Gas Project

The long-delayed Mackenzie Gas Project may fi nally be nearing an end. The Canadian National Energy Board (NEB) has released its plan for concluding its hearing on the $16 billion Mackenzie Gas Project.

The NEB plans to hear fi nal arguments in April 2010 on the applications to build the 1,220-km natural gas pipeline and related facilities through Canada’s north, the board an-nounced in October. This date is dependent upon the release of the Joint Review Panel report, expected in December 2009. The panel is examining the potential environmental, socioeconomic and cultural effects of the project. The National Energy Board is looking at all other issues, including engineer-ing, safety and economic matters and will consider the Joint Review Panel’s recommendation and its proposed remedial measures that relate to the NEB’s mandate.

Remedial measures are actions intended to alleviate potentially adverse effects of a new development. Some of these remedial measures could be incorporated into any approvals the NEB may grant for the Mackenzie Gas Project as conditions.

“The Mackenzie Gas Project is one of the largest infra-structure projects to ever be proposed in this country,” says NEB panel chair Ken Vollman. “It has been a long road to get to this point and we are very pleased to be approaching the fi nal stages of our journey.”

Imperial Oil Resources Ventures Ltd. and its partners, the Aboriginal Pipeline Group, Imperial Oil Resources Ltd., ConocoPhillips (North) Ltd., Shell Canada Ltd. and Exxon-Mobil Canada Properties, fi led fi ve applications in 2004. The NEB held the scheduled evidentiary portion of its hearing in 2006.

Once fi nal argument is complete, the NEB will prepare its Reasons for Decision, the document, which will announce the decision and provide the panel’s reasoning.

NEB Reacts to Surge in Pipeline Workers Injuries The Canadian National Energy Board is also taking steps

to address a surge in injuries among Canadian pipeline workers. During 2007, 1.9 of every 100 pipeline work-ers suffered a serious workplace injury, nearly double the seven-year average for the industry and the highest worker injury rate since the board started reporting on safety per-formance indicators in 2000. Chairman Gaeton Caron says the NEB has been committed to safety since the day the organization was founded, nearly 50 years ago. “Safety is and always will be our No. 1 goal,” he says.

MasTec Pays $150 Million for Precision PipelineMasTec Inc. has signed a defi nitive agreement to acquire

Precision Pipeline, a leading natural gas, crude oil and refi ned products transmission pipeline infrastructure servic-es provider in North America for a purchase consideration of $150 million. The transaction is contingent on fi nancing availability on terms and conditions acceptable to MasTec, in its sole discretion, and there is no break-up fee if such fi nancing is not available.

Based in Eau Claire, Wis., Precision is a leading energy infrastructure services provider, specializing in the con-struction and maintenance of large diameter pipelines. Precision’s experience in the long-haul, interstate pipe-line industry will complement MasTec’s existing energy infrastructure service offerings, which include natural gas gathering systems, processing plants, compression stations and mid-stream pipelines.

Precision employs a team of highly skilled unionized workers and tradesmen, which it deploys throughout North America, and the company uses a signifi cant pool of special-ized pipeline construction equipment. With the acquisition of Precision, MasTec will become one of the leading pipe-line contractors in the United States, capable of providing a full array of construction services to oil and gas producers, as well as mid-stream and interstate pipeline operators.

Precision has experienced signifi cant growth over the past several years.

Precision generated $303 million of revenue and $37 million in earnings before interest, taxes, depreciation and amortization (EBITDA) in 2007 and $507 million of revenue and $93 million in EBITDA in 2008. For the full year of 2009, Precision estimates revenue of slightly less than $300 million and about $60 million EBITDA.

The 26.4-mile Colorado Hub Connection joins the pipeline systems of Williams’ subsidiary Northwest Pipeline. The connection will

deliver supplies to western markets.

The reduction in earnings in 2009 as compared to 2008 is primarily due to lower revenue as the result of a softer natu-ral gas and petroleum pipeline construction market amidst the recession. Precision had over $500 million in backlog as of Sept. 30.

“We are very pleased with the acquisition of Preci-sion,” says Jose Mas, MasTec’s president and CEO. “The company has an excellent and motivated man-agement team that will remain in place to continue its growth. With the acquisition of Precision, we will significantly expand our capabilities in the natural gas, crude oil and refined petroleum product pipeline industries, which we believe will be solid areas of growth for years to come.”

New Mulching System Provides Diversity for Land Clearing

Site preparation is an important step in the preliminary stages of pipeline construction. Land clearing machinery is vital to getting a project off the ground. In that effort, Fecon had made its Bull Hogs available with the new HDT rotor system.

The effi cient shape of the new tool bodies, stronger tool holder design and a staggered tool pattern all add to its mulching performance. In some models, a patented step-tool pattern is also available. The improved effi -ciency of the rotor enables more production for the same horsepower while maintaining durability to improve production levels.

Fecon’s HDT rotor system can also be equipped with four different tool options including three unique carbide options and a knife tool that allows contrac-tors to quickly configure the mulcher to diverse condi-tions. Standard dual-carbide tools will suit the working conditions of most contractors, but narrow single carbides deliver a faster cut with carbide durability and coarser finish. The stone tools are durable against rock and abrasion. The knife provides the greatest produc-tion capability for jobs with low risk of rock or highly abrasive conditions.

U.S. EPA Presents STAR Awards for Emissions Reduction Program

The U.S. federal government has recognized the “stars” in the natural gas industry.

ExxonMobil and Kinder Morgan were among the 17 companies to receive the Continuing Excellence Award for their participation in the U.S. Environmental Protection Agency’s Natural Gas STAR Program.

The program is a voluntary partnership between the EPA and the oil and gas industry. The Continuing Excel-lence Award, which both companies received in October, recognizes a partner’s outstanding performance over mul-tiple years in reducing methane emissions, identifying and implementing new emission-reducing technologies and practices, and supporting the overall objectives of the Natural Gas STAR program. The Continuing Excellence Award is presented to companies that annually self report to the EPA and continually demonstrate the objectives of the program.

Neil Ryan, regulatory manager for ExxonMobil’s U.S. production operations, accepted the award on Oct. 20 in San Antonio. ExxonMobil joined the EPA’s STAR Award program in 1995. Since then, ExxonMobil has reduced methane emissions from its U.S. production operations by more than 21 billion cu ft (Bcf) — the equivalent of removing more than 1.5 million passenger cars from the road.

Over the past fi ve years, ExxonMobil has invested more than $1.5 billion in activities that improve energy effi cien-cy and reduce greenhouse gas emissions. Globally, the com-pany pursues initiatives to increase its own energy effi cien-cy in the short term; advance proven emissions-reducing technologies in the medium term; and develop break-through, game-changing technologies for the long term. These initiatives will reduce emissions generated by both ExxonMobil operations and consumers.

Kinder Morgan received the EPA Continuing Excellence award on Oct. 22.

“This award from the EPA demonstrates Kinder Morgan’s continued commitment to the reduction of methane emissions and we are very pleased to be once again recognized for our contributions,” says Dwayne Burton, vice president of operations for Kinder Morgan’s natural gas pipelines. “The Natural Gas STAR Program is a great example of a program that makes good environmental and business sense, as we have been able to protect the environment and achieve operational effi ciencies.”

Kinder Morgan operates over 25,000 miles of natural gas pipelines. In 2008, the company implemented several technologies and operational practices that result-ed in methane emission reductions of more than 3.46 bcf. These reductions were achieved through the installation of new electric motor driven compressors and gas turbines, using compressors to pump down pipeline sections prior to maintenance activities, implementation of directed inspection and maintenance programs and other methane emission reduction practices. The company was named the STAR Transmission Partner of the Year in 2006.

The other winners of the EPA’s Continuing Excellence Award were AGL Resources, Alliant Energy, CenterPoint Energy Minnesota Gas, ConocoPhillips, Consumers Energy, DTE Energy-MichCon, Enbridge Energy Partners, Energen Resources, Enogex, Gulf South Pipeline, Northern Natural Gas, Occidental Oil & Gas Co., Southwest Gas Corp., West-ern Gas Resources and Williams Production RMT Co.


The new shape and staggered tool pattern on Fecon’s Bull Hog provide improved effi ciency and durability in mulching applications

for land clearing projects.



pipeline construction industry for 50 years having been employed as a laborer, operator, purchasing agent, office manager, superintendent, construction manager, project manager and owner throughout his career.

In other news, Laney Directional Drilling named Grady Bell its vice president of business development. Bell has worked for Laney since 2003 and has more than 20 years of experience in the directional drilling industry. Prior to joining Laney, he held positions at Sharewell Inc., InArc/Reading & Bates, SPIE HDI and ARB. Currently, Bell holds positions on the board of directors of both the Gulf Coast Trenchless Association and the Distribution Contractors Association (DCA). He also is the chairman of the DCA Horizontal Directional Drilling Committee and has served on the Strategic Plan Committee.

URS Expands Presence in Rocky Mountain Oil and Gas Market

With the acquisition of ForeRun-ner Corp. on Oct. 26, URS Corp. immediately expanded its presence in the Rocky Mountain oil and gas sector.

ForeRunner, an engineering and construction management company that specializes in oil and gas projects, has approximately 150 employees and is headquartered in Lakewood, Colo. The fi nancial terms of the transaction were not disclosed.

ForeRunner provides project man-agement, engineering, design and construction management services, primarily for the development of oil and gas pipelines and compres-sion, storage and processing facilities. The company has completed approxi-mately 1,800 projects throughout the United States since 1996. ForeRun-ner complements URS’s expertise in environmental permitting and the design and construction of oil and gas production and storage facilities, processing plants, refineries and relat-ed infrastructure.

“With its talented professionals, relationships with Fortune 500 clients and strategic location near some of the nation’s largest natural gas and oil fi elds, ForeRunner enhances URS’s ability to pursue new opportunities and better serve existing clients in the oil and gas sector,” says Gary Jandegian, president of the URS Division.

URS Corp. is based in San Francisco and provides engineering, construc-tion and technical services for public agencies and private sector companies around the world.

New President Among Changes at Laney Directional Drilling

Long-time HDD contractor Laney Di-rectional Drilling, based in Humble, Texas, recently announced management changes to the company, noting that Pat Tobias has taken over as company president for Marcus Laney.

Laney semi-retired in July from the company he founded, but remains an active member of its board of directors.

Prior to joining Laney in July 2009, Tobias served as superintendent for Sheehan Pipeline Construction, super-intendent and project manager for ARB Inc., and construction man-ager for Tellepsen Pipeline Services. From 1983 to 1993, he was owner and president of PJT Inc., a pipeline construction company also based in Humble. Tobias has been in the

BP Announces Major Gulf Discovery BP has discovered a major new oil fi nd in the Gulf of

Mexico, confi rming that the Gulf’s southern waters are one of the world’s most promising oil exploration regions. BP said its Tiber prospect is a “giant.”

The well, located in Keathley Canyon block 102, approximately 250 miles southeast of Houston, is in 4,132 ft of water. The Tiber well was drilled to a total depth of approximately 35,055 ft, making it one of the deepest wells ever drilled by the oil and gas industry. The well found oil in multiple Lower Tertiary reservoirs. Appraisal will be required to determine the size and commerciality of the discovery.

“Tiber represents BP’s second material discovery in the emerging Lower Tertiary play in the U.S. Gulf of Mexico, following our earlier Kaskida discovery,” says Andy Ing-lis, chief executive of exploration and production for BP. “These material discoveries together with our industry leading acreage position support the continuing growth of our deepwater Gulf of Mexico business into the second half of the next decade.”

BP announced the discovery on Sept. 2.

Arena Resources Tie-in Saves on Crude Transportation Charges

Arena Resources Inc. will build a tie-in pipeline to transport the majority of its crude oil production from its Fuhrman-Mascho property in Andrews County, Texas. To date, all oil production from this property has been trucked, resulting in higher transportation costs and limited marketability.

Arena Resources announced it has fi nalized a contract with an unnamed pipeline operator, whose midstream assets are comprised of approximately 12,500 miles of pipelines.

Arena’s management estimates the gathering system will connect approximately 70 percent of the company’s current daily oil production by year end 2009. Additional tank batteries will be added as rapidly as possible. Management estimates that 95 percent of the total oil production from Fuhrman-Mascho will be transported by pipeline when completely fi nished. Not all existing tank batteries will be part of the new gathering system. Approximately 5 percent of current production will continue to be trucked.

“We are pleased to announce that we began construction Oct. 16, and anticipate completion before the end of the year,” says Phil Terry, president and CEO. “The gathering system tie-in with pipeline transport will provide more marketing options and possibly additional increases in revenues.”

Arena Resources is an oil and gas exploration, develop-ment and production company with current operations in Texas, Oklahoma, Kansas and New Mexico.

Universal Ensco and Pegasus International Announce Global Rebranding

UP Holdings Inc., the parent company of Universal Ensco, Pegasus International, UP International and Peak Power Engineering, has rebranded its name to Universal-Pegasus International to emphasize the more global nature of its current businesses.

Under the new name, the combined resources will enable UniversalPegasus International to deliver a broader spectrum of services and value to its clients. With more than 2,000 em-ployees and major projects around the world, UniversalPe-gasus delivers services through four operating companies that will keep their current trade names.

Founded in 1961, Universal Ensco grew into the larg-est pipeline engineering firm in the Western Hemisphere with a reputation for technology innovation and excep-tional client service. Pegasus International, formed in 1981, is one of the world’s foremost offshore engineering and project management firms, known for its technical expertise when solving engineering problems in some of the world’s most challenging conditions. Founded in 1994 and based in Golden, Colo., Peak Power Engineer-ing provides a full suite of services to the power engi-neering space, including substation design, transmission line design, distribution systems engineering, industrial power systems, power quality and power system stud-ies. Peak serves customers throughout the United States including large utility, non-profit rural electric coopera-tives, and other large industrial consumers. UP Interna-tional provides the company’s expertise and services in all areas to customers in the Eastern Hemisphere.

Regency Building $47 Million Expansion for Haynesville Shale

The continued development of Haynesville Shale gas in eastern Texas and northern Louisiana has pushed companies to expand pipeline capabilities. Regency Energy Partners, Alinda Capital Partners and GE Energy Financial Services started construction on a $47 million pipeline extension of the Haynesville Expansion Project in North Louisiana to increase capacity on the Regency Intrastate Gas System (RIGS).

Construction of the Haynesville Expansion Project be-gan May 1 and is on budget and on schedule to meet the planned in-service date of Dec. 31. The extension — called the Red River Lateral — will add approximately 100,000 dekatherms of capacity to the current project, bringing the


Regency Energy and its partners will build a $47 million extension to the Regency Intrastate Gas System to further tap into the vast

Haynesville Shale play in northern Louisiana.

total project capacity to approximately 1.2 billion cu ft per day (Bcf/d).

“The rapid development of the Haynesville Shale has accelerated our growth opportunities around the RIGS

system,” says Byron Kelley, chairman, president and chief executive offi cer of Regency. “The Red River Lateral expands our reach deeper into the sweet spot of the Haynesville

Shale and strategically positions the pipeline for further growth to meet rising producer needs. We believe this is the fi rst of several opportunities to extend the Haynesville Expansion Project.”

The Red River Lateral will add approxi-mately 12.5 miles of 36-in. pipe to the Haynesville Expansion Project and will reach farther southwest to the west side of the Red River into Red River Parish in Louisiana, an area considered to be one of the richest and most active in the Haynesville Shale.

The $47 million Red River Lateral will be funded by each of the partners of the joint venture that owns RIGS in accor-dance with their ownership percentages. Regency has a 43 percent general partner-ship interest in the joint venture, while Alinda and an affi liate of GE Energy Financial Services have a 50 percent and a 7 percent general partnership interest, respectively.

“Once the project is in service, the joint venture intends to pursue debt fi nancing for future development around the RIGS system,” Kelley added.

Construction on the 46 miles of 36-in. pipeline is mechanically complete and was commissioned in September and construction on the 75 miles of 42-in. pipeline began in late June. Construction of the Red River



The Red River Lateral will extend the Regency Intrastate Gas System (RIGS) and further tap into the large Haynesville Shale reserve. The extension will add 1.2 billion cu ft per day of capacity.

Lateral began in September and is projected to be in service by the end of the year.

RIGS is a 320-mile intrastate natural gas pipeline sys-tem in northern Louisiana extending from Caddo Parish to Franklin Parish. Regency Intrastate primarily transports natural gas produced in northern Louisiana for delivery to end-users, intrastate pipelines and interstate pipelines. Natural gas generally fl ows from west to east on the pipe-line from wellhead connections or connections with other gathering systems.

Regency Intrastate transports natural gas produced in the Elm Grove, Vernon, Sligo, Ada and Sibley fi elds, which are some of the largest natural gas producing fi elds in Louisiana. The pipeline is situated near the Haynesville Shale, Terryville Field and Woodardville Field, where new natural gas supplies are quickly being discovered. Its ma-jor pipeline interconnects include DCP Pelico, Tennes-see Gas Pipeline, ANR, Columbia Gulf, Southern Natural Gas, Texas Eastern, Texas Gas Transmission, Trunkline and Mississippi River Transmission.

Regency Intrastate offers fi rm and interruptible transpor-tation services for both intrastate and NGPA Section 311 customers. Intrastate service is provided to facilitate trans-portation of gas that is produced and consumed within the state of Louisiana. NGPA Section 311 service is provided to customers to facilitate transportation of natural gas delivered to or received from interstate pipelines.

Federal Coordinator for Alaska’s Natural Gas Pipeline Resigns

Drue Pearce, head of the Offi ce of the Federal Coordina-tor for Alaska Natural Gas Transportation Project resigned on Nov. 16 on the request of President Barack Obama. Her resignation is effective Jan. 3, 2010.

Pearce was the fi rst federal coordinator for the Alaska pipe-line project and was sworn in on Dec. 13, 2006. The 2005 Military Construction Appropriations Bill established the position to coordinate activities by federal agencies with respect to the permitting and construction of a pipeline to bring North Slope gas to markets in the lower 48 states.

“I am a passionate supporter of the agency’s mission to bring Alaska natural gas to North American markets,” Pearce’s resignation statement says. “I leave an effective and effi cient agency with a highly skilled team of profession-als actively pursuing our mission. It has been a profound privilege to lead this innovative team.”

The Offi ce of the Federal Coordinator is an independent offi ce within the executive branch, reporting directly to the White House. It was not immediately known who will replace Pearce.

AEM Elects 2010 Offi cers and DirectorsThe Association of Equipment Manufacturers (AEM) has

elected its 2010 offi cers and new directors. The new offi cers are:• Chairman: Chuck Martz, president and CEO of Link-

Belt Construction Equipment, in Lexington, Ky.• First Vice Chairman: James McCullough, president

and CEO of CNH Construction Equipment, in Racine, Wis.

• Second Vice Chairman: Tiffany Sewell-Howard, CEO of Charles Machine Works, in Perry, Okla.

• Treasurer: Robert Kluver, president and CEO of An-gus-Palm, Watertown, S.D.

• Secretary: Dennis Slater, AEM’s full-time president, based in Milwaukee

Serving as sector vice chairmen in 2010 are:• Vice Chairman Agriculture: Russell Fowler, president

and CEO of Krone NA Inc., in Memphis, Tenn.• Vice Chairman Construction: Craig Paylor, president

of JLG/Oshkosh Corp., in Hagerstown, Md.

AEM’s new directors, elected to serve on the association’s board of directors:

• Michael Barr, principal at QDI Strategies, in Liber-tyville, Ill.

• Steven Booher, president of Productive Resources, in Columbus, Ind.

• Serge Bosché, president of Manitou North America, in Waco, Texas

• Richard Brown, president and COO of Krause Corp., in Hutchinson, Kan.

• David Burdakin, president and CEO of Paladin, in Cedar Rapids, Iowa

• Michael Haberman, president of Gradall Industries, in New Philadelphia, Ohio

• Robert Kluver, president and CEO of Angus-Palm, in Watertown, S.D.

• Richard Lowe, president of Lowe Manufacturing, Viola, Wis.

• Chuck Martz, president and CEO of Link-Belt Construction Equipment, in Lexington, Ky.

• Michael Osenga, president of Diesel and Gas Turbine Publications, in Waukesha, Wis.

• Tiffany Sewell-Howard, CEO of Charles Machine Works, in Perry, Okla.

• Robert Vermeer, CEO and chairman of the board at Vermeer Corp., in Pella, Iowa

• James Wessing, president of Kondex Corp., in Lomira, Wis.

The AEM board of directors also elected two indus-try leaders as Life Honorary Directors in recognition of exceptional service to the association, especially during its formation:

• Robert Ratliff, formerly of AGCO, who served as a longtime director

• Emmett Barker, who served as longtime president of one of AEM’s predecessor organizations

AEM is the North American-based inter-national trade group representing the off-road equipment manu-facturing industry. Its board of directors, led by the offi cers, sets the guidelines and operat-ing policies of AEM on behalf of members in areas including techni-cal and product safety support, equipment statistics and market information, public policy, trade shows, global business devel-opment, education and

training, workforce development, and worksite safety and educational materials.


Chuck Martz is the new chairman of the Association of Equipment

Manufacturers (AEM).

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The following oil and gas pipeline projects have

been announced. Projects are in order of approximate

starting date.

U.S. Pipeline Inc. was awarded a contract by El Paso Corp. for welding procedures for the El Paso 42-in. Ruby Project in Houston. Headquarters is in Houston. The superintendent is Dana Bratcher. Approximate start date: Nov. 30.

Indianhead Pipeline Services LLC was awarded a contract by Minnesota Ltd. Inc. to concrete coat 30,000 ft of 16-in. pipe for the Northern Natural Gas Project in Steele County, Minn. Headquarters is Owatonna, Minn. The superintendent is Bradie Johnson. Approximate start date: Nov. 16.

Utility Line Services Inc. was awarded a contract by National Fuel gas to take up and relay approximately 3,400 ft of 20-in. pipeline in Washington County, Pa. Headquar-ters is unknown. The superintendent is Tim Nicholson. Approximate start date: Nov. 16.

Pe Ben USA Inc. was awarded a contract by Snelson Companies Inc. for offl oading from rail and trucking to stockpile yard 140,976 ft of 30-in. steel pipe, 8,976 ft of 16-in. steel pipe, 17,952 ft of 10.25-in. steel pipe and 16,386 ft of 3-in. steel pipe in Fresno County, Calif. Headquarters is Mendota, Calif. The superintendent is Eric Gregory. Approximate start date: Nov. 10.

BigInch Fabricators and Construction Inc. was awarded a contract by Oneok to install 36-in. tie-in section and 24-in. piping assembly in Will County, Ill. Headquarters is Chan-nahon, Ill. The superintendent is Mike Utley. Approximate start date: Nov. 9.

Rockford Corp. was awarded a contract by El Paso/Ruby Project for six weeks of fabrication in Elko, Nev. Headquar-ters is Elko. The superintendent is Mike Cockrell. Approxi-mate start date: is Nov. 9.

U.S. Pipeline Inc. was awarded a contract by El Paso Corp. for the fabrication of 42-in. test manifolds and prefabrication of assorted MLVs, launcher and receivers

in Tooele County, Utah. Headquarters is Tooele, Utah. The superintendent is Dana Bratcher. Approximate start date: Nov. 9.

Laney Directional Drilling Co. was awarded a contract by PMI Services/Rio Grande River Project for 2,658 ft of 10-in. pipeline in El Paso County, Texas. Headquarters is on the jobsite. The superintendent is Kyle Orum. Approximate start date: Nov. 3.

Apex Pipeline Services Inc. was awarded a con-tract by Columbia Gas Transmission for boring and excavation of approximately 250 ft of 30-in. pipeline in Kanawha County, W.Va. Headquarters is Elkview, W.Va. The superintendent is Robert Keaton. Approximate start date. Nov. 2.

Laney Directional Drilling Co. was awarded a contract by Exxon Mobil Pipeline to install 1,850 ft of 8-in. pipeline in Harris County, Texas. Headquarters is on the jobsite. The superintendent is Tad Dead. Approximate start date: Nov. 2.

Utility Line Services Inc. was awarded a contract by Citrus Energy to build three gas well pads in Columbia County, Pa. Headquarters is Benton, Pa. The superinten-dent is Mark Fisch. Approximate start date: Oct. 28.

Midwest Underground Inc. was awarded a contract by Northern Natural Gas for 40 ft of 30-in. drip remov-al in Kiowa County, Kan. Headquarters is unknown. The superintendent is Ed Kelly. Approximate start date: Oct. 24.

Apex Pipeline Services Inc. was awarded a contract by Columbia Gas Transmission to service 22.3 miles of 16-in. pipeline in Washington County, Pa. Headquarters is Claysville, Pa. The superintendent is Robert Keaton. Approximate start date: Oct. 21.

Miller Pipeline Corp. was awarded a contract by Panhandle Eastern Pipeline to remove and replace three 26-in. anomalies in Sangamon County, Ill. Headquarters is unknown. The superintendent is Wes Bogard. Approximate start date: Oct. 19.

North American Pipelines Project Roundup

Listings Contributed by


Welded Construction LP was awarded a contract by Williams Gas Pipeline/Transco for the 2009 Charlottes-ville TRSP MD 19 Valve Replacement at Station 190 in Howard County, Md. Headquarters is Ellicott City, Md. The superintendent is Joe Carter. Approximate start date: Oct. 19.

Welded Construction LP was awarded a contract by Consumers Energy Co. for loading and unloading 5,000 ft of 36-in. pipe in Oakland County, Mich. Headquarters is Perrysburg, Ohio. The superintendent is unknown. Approximate start date: Oct. 19.

T.G. Mercer Consulting Services Inc. was awarded a contract by ETC Fayetteville Express for hauling, rack-ing and stockpiling 180 miles of 42-in. pipe in White, St. Francis and Phillips counties, Ark. Headquarters and the superintendent are unknown. Approximate start date: Oct. 15.

Price Gregory Construction Inc. was awarded a contract by Rockies Express Pipeline LLC for 10 anomaly dig-ups in Pike County, Mo. Headquarters is unknown. The superin-tendent is Chuck Roy. Approximate start date: Oct. 12.

Welded Construction LP was awarded a contract by Rockies Express Pipeline LLC for fi ve exploratory digs on 42-in. pipeline in Pike County, Ill. Headquarters is unknown. The superintendent is Robbie Seebeck. Approximate start date: Oct. 6.

Right-of-Way Clearing and Maintenance Inc. was award-ed a contract by Mid-Ohio Contractors for the clearing on approximately 10,000 ft of pipeline right-of-way in Greene County, Pa. (Franklin Township), for Mid-Ohio/Columbia Gas. Headquarters is unknown. The superintendent is Neil Kinneer. Approximate start date: Oct. 5.

BigInch Fabricators and Construction Inc. was awarded a contract by Panhandle Eastern Pipeline to complete six each of 24-in. anomaly replacements in Parke County, Ind. Headquarters is Montezuma, Ind. The superintendent is Frank Ayers. Approximate start date: Oct. 1.

Foltz Welding Ltd. was awarded a contract by Mara-thon Pipeline to install 20-in. meter run bypass piping in Bullitt County, Ky. Headquarters is unknown. The super-intendent is Scott Schoonover. Approximate start date: Oct. 1.




Laney Directional Drilling Co. was awarded a contract by EPCO to install two directional drills totaling 2,424 ft of 18-in. pipeline in Harris County, Texas. Headquarters is on the job site. The superintendent is Tad Dean. Approximate start date: Oct. 1.

Miller Pipeline Corp. was awarded a contract by Mid-western Gas Transmission to hydrostatic test two miles of existing 30-in. pipeline in Sullivan County, Ind. Head-quarters is unknown. The superintendent is Gene Walker. Approximate start date: Sept. 30.

ARB Inc. was awarded a contract by Kinder Morgan LLC to install 3,400 ft of 6-in. pipeline in Nevada. Headquar-ters is Sparks, Nev. The superintendent is Gary Barnett. Approximate start date: Sept. 28.

Miller Pipeline Corp. was awarded a contract by Panhan-dle Eastern to remove 250 ft of existing 30-in. pipeline in Macon County, Ill. Headquarters is unknown. The superin-tendent is Wes Bogard. Approximate start date: Sept. 28.

Apex Pipeline Services Inc. was awarded a contract by Columbia Gas Transmission for the following: 1) install 16-in. headers with valves and approximately 500 ft of 10-in. and 16-in. piping on both sides of Elk River in Kanawha County, W.Va. Headquarters is Clendenin, W.Va. The superintendent is Doug Keaton. And 2) install approxi-mately 3,200 ft of 16-in. gas pipeline in Kanawha County. Headquarters is Annfred, W.Va. The superintendent is Larry Randolph. Approximate start date: Sept. 22.

Miller Pipeline Corp. was awarded a contract by Texas Gas Transmission to install an interconnect between Texas Gas and the REX project scope, which includes 1,000 ft of 12-in. pipeline, station work and launchers, and Warren County, Ohio. Headquarters is Red Lion, Ohio. The superintendent is Otis Dunn. Approximate start date: Sept. 22.

Foltz Welding Ltd. was awarded a contract by Marathon to hydrotest approximately 10 miles of 12-in. pipeline in Madison County, Ill. Headquarters is Wood River, Ill. The superintendent is Scott Schoonover. Approximate start date: Sept. 21.

Laney Inc. was awarded a contract by Keystone/Shee-han Pipe Line Construction Co. for road bores on 58 miles of 30-in. pipeline in Madison, Fayette and Bond counties, Ill. Headquarters is Alton, Ill. The superintendent is Grady Keller. Approximate start date: Sept. 21.

Midwest Underground Inc. was awarded a contract by Northern Natural Gas for horizontal drilling of 0.5 miles of 4-in. pipeline in Colfax County, Neb. Headquarters is Schuler, Neb. The superintendent is Ed Kelly. Approximate start date: Sept. 21.

The HDD Co. Inc. was awarded a contract by Manson Construction for the directional drill of 2,500 ft of 36-in. ocean outfall in Ventura County, Calif. Headquarters is Cameron Park, Calif. The superintendent is Neil Swope. Approximate start date: Sept. 18.

Laney Directional Drilling Co. was awarded a contract by Southern Star Gas Co. for directional drilling of 1,886 ft of 26-in. pipeline Kansas City, Kan. Headquarters in on the job site. The superintendent is Jimmie Johnson. Approximate start date: Sept. 17.

Price Gregory International Inc. was awarded a contract by Regency Interstate Gas to install approximately 12.4 miles of 36-in. pipeline Bienville and Red River parishes, La. Headquarters is Sibley, La. The superintendent is P.E. “Duck” Brantley. Approximate start date: Sept. 15.

Apex Pipeline Services Inc. was awarded a contract by Columbia Gas Transmission Inc. to install two 24-in. stopple fi ttings and repair two 24-in. anomalies located in Montgomery County, Ohio. Headquarters is Dayton, Ohio. The superintendent is Robert Keaton. Approximate start date: Sept. 14.

Kramers Land Clearing LLC was awarded a contract by Ohio Valley Gas Corp. for clearing 8.5 miles of 8-in. pipe-line in Sullivan County, Ind. Headquarters is Linton, Ind. The superintendent is Brett Kramer. Approximate start date: Sept. 8.

Pe Ben USA Inc. was awarded a contract by El Paso for offl oading, hauling and stockpiling approximately 640 miles of 42-in. pipe in Lincoln County, Wyo.; Tooele County, Utah; Bannock County, Idaho; Elko, Humboldt and Washoe counties, Nev.; and Lake and Klamath coun-ties, Ore. Headquarters is Houston. The superintendent is Gurvis Hall. Approximate start date: Sept. 8.

Want to see your project here? Submit you project to associate editor Brad Kramer at [email protected] with the subject heading “Project Roundup.”

A Partner A Partner in Pipelinesin Pipelines

Contractors and Unions Build Strong Relationships

for Canada’s Oil and Gas Pipeline Industry

By Bradley Kramer

Canada’s oil sands and shale gas reserves are the point of initiation for some of the largest mainline pipeline systems in North America, with a sprawl-

ing network of supporting distribution lines to get oil and gas to the consumer. Those pipelines would never be built without the contracting companies and the laborers, who form the backbone of the petrochemical industry. It all starts with a strong partnership.

There are dozens of largescale pipeline contractors in Canada and four international unions that represent the laborers who build those systems. The Pipe Line Contrac-tors Association of Canada (PLCAC) helps foster good rela-tions between the contractors and the unions by negotiating collective bargaining agreements with the International Brotherhood of Teamsters, the International Union of Operating Engineers, the Laborers’ International Union of North America (LIUNA) and the United Association (UA). Teri McKibbon is president of the PLCAC, and he believes his highest priority is to instill a sense of partnership between the unions and the industry.

“We need to have a true partnership to be successful, especially with the eco-nomic landscape,” says McKibbon, who is also CEO of Toronto-based Aecon Infrastructure Group, which designs and builds natural gas distribution pipelines, among other construction projects. “We really have to work closely to adapt to the changing economy and continu-ally reinvent ourselves. That’s my biggest focus, and I believe we genuinely have that. We have to ensure that we maintain that moving forward.”

McKibbon got involved with the PLCAC in January 2004 and served on the board of directors for a couple years before being elected to the executive board. McKibbon became president of the association in the spring of 2009 and will serve a one-year term. The association’s board of directors elects nominees to the executive board, starting as the treasurer and moving up each year until becoming president. The offi cers are elected at the association’s an-nual convention, which was in Victoria, British Columbia, in April.

As president of the PLCAC, McKibbon helps drive the industry forward. It’s a part-time gig, but an important one. The executive offi cers have quarterly meetings, and McKibbon is responsible for day-to-day decisions, such as approving fi nancials. He credits the association’s staff for performing the heavy lifting of duties.

One of the biggest challenges for the PLCAC is preparing for 2010, when eight of the association’s 12 collective bar-gaining agreements (CBAs) with the unions will expire, says Barry Brown, executive director of the PLCAC since 1985. On April 30, the mainline and distribution agreements will end for all four unions, meaning that association will have to renegotiate eight new agreements.

“It’s diffi cult to prepare for because of the economy. Nobody knows what type of work to look forward to, but it’s also diffi cult for the unions to make demands,” says Brown, who was fi rst hired as the PLCAC’s assistant director in 1976. “It will be a very interesting round of negotiations. I have no idea what’s going to happen.”

The looming CBA negotiations highlight McKibbon’s goal of fostering a partnership with the unions. The suc-cess of the oil and gas pipeline industry in Canada — and North America in general — is riding on maintaining a beneficial relationship between the unions and the contractors. McKibbon believes his experience at Aecon has strengthened his ability to establish and promote partnerships.

“That is one thing Aecon is really good at,” he says. “It’s important to work well with others. To be successful, you have to be very good at partnering. The unions have been interested in partnering with us to generate better results for both parties.”

McKibbon also has a long history with the oil and gas pipeline industry, as he followed his father’s footsteps. “I was the son of a mainline pipeliner,” he says. “I’ve worked in various construction jobs all my life.” McKibbon has been in the industry for 30 years and at Aecon for 13. Aecon is the largest publicly traded construc-tion company in Canada, with $2-$3 billion in business

each year, $1 billion of that in McKibbon’s infrastructure division. He got involved with the PLCAC because it provides a direct interface with the unions and how that affects relationships with the workforce.

“If you’re not at the table, you have to sit back and accept the outcome,” McKibbon says. “Because labor is such a big part of our business, we needed to have a voice.

“In addition, we get the opportunity to be involved with other aspects of the industry, such as technology devel-opments, government interaction, aboriginal groups and environmental concerns. The association works with the Canadian government to make larger projects a reality for the big oil companies. We’re providing guidance and support, such as budgeting and negotiations with the aboriginal groups.

“Our members have tremendous experience of build-ing the backbone of the oil and gas industry in Canada. There are a lot of stakeholders, and it’s important we play a role in bringing those parties together,” he says.


The Pipe Line Contractors Association of Canada helps maintain good relations between contractors and the unions so that the oil and gas pipeline industry can fl ourish.

United They StandThe PLCAC is a non-profi t organization and serves the

needs of its members. The PLCAC’s main function is to ne-gotiate with the unions on behalf of the oil and gas pipeline contractors. The association provides a means for the con-tractors to negotiate as a collective.

“If the companies all had to negotiate with the unions on their own, it would become very complicated,” McKib-bon says. “You would have various entities with various agreements. The larger companies may be able to negotiate a better agreement than a mid-size contractor. We are able to achieve optimum balance between the contractors and unions and avoid labor unrest.”

The PLCAC helps create a harmonious relationship between the contractors and the public and between the contractors and the unions, Brown says. The contractors need the CBAs with the unions to continue improving the oil and gas pipeline industry.

“We make it so they are all working from the same playbook,” Brown says. “The wage conditions and terms of employment are the same no matter what.”

Hub of InformationAnother service that the PLCAC provides its 34 member

contractors is providing access to its collective experiences and knowledge of pipeline construction.

“There are extremely talented contractors, experienced in all varieties of professional management,” McKibbon says. “If someone needs help in any facet of business, they have a hub of information that they can access through the PLCAC.”

The association assists in permeating the contractors’ expertise throughout the industry by providing points of contact and access to its pooled resources.

In addition to the shared expertise of its contractors, the association is in contact with the oil companies about upcoming projects, and that information is passed on to the members. “It’s a cost-effective way to have a centralized voice,” McKibbon says.

The PLCAC also coordinates with the unions to arrange training classes, which the unions conduct. The training classes vary in topic from safety, equipment operation and other aspects of the pipeline industry. These classes are not just used by PLCAC members, Brown says, but by the whole industry.

“We’re not just in the pipeline industry, or just the oil and gas or petrochemical industry,” Brown adds. “We’re in the transportation industry. We compete with the railroads and trucking industry. The fact is that pipelines are the fastest way to get oil and gas to the consumer.”

A Soft YearThe global recession has hampered most industries, but

so far not the oil and gas pipeline industry. However, as the year is coming to a close, the effects of the economy are starting to weigh on the pipeline contractors.

“2009 has been strong, but 2010 looks like it could be soft,” says McKibbon, adding that the industry didn’t stop in 2009 because projects were already under way. Contractors will spend 2010 getting ready for work to resume in 2011.

“It hasn’t been diffi cult up to this point, but mainline work is winding down and there’s nothing to look forward to, at least until next year,” Brown says. “Distribution work seems to be steady. Housing was not hit as hard in Canada because of differences in mortgage laws.”

Canada did not have the problems of sub-prime loans that wreaked havoc on the housing market in the United States. What has affected the industry is the drop in oil and gas prices over the last year.

“In the oil sector, the planned projects were based on processing plants being built,” Brown says. “Once the prices fell, those plants were deemed fi nancially unfeasible. As the prices have come up again, the plants appear to be proceeding.”

Brown believes the oil market will see pipeline construc-tion pick up if not by the end of 2011, defi nitely by 2012. The industry will need time to ramp up production again.

“In the gas sector, one thing we have been looking forward to is the Mackenzie project,” Brown says. [See page 9 in News for an update on the Mackenzie project.] “That project has been delayed in the regulatory process to a ridiculous extent.


In addition to negotiating the collective bargaining agreements between the contractors and unions, the PLCAC provides its members with a “hub of information,” providing access to the

association’s collective expertise to answer any number of technical, engineering, fi nancial and other construction related questions.

Now we don’t know what to expect. The Alaska pipeline has high potential, but that is a long way off, 2015 at the earliest. There is a small pipeline planned for the shale gas play in northern British Columbia. There just aren’t a lot of projects planned because the existing pipelines have not been operating up to capacity.”

The only signifi cant pipeline project in Canada that the PLCAC knows of for 2010 is TransCanada’s Groundbirch Pipeline, a 36-in. shale gas pipeline planned in north-ern British Columbia and Alberta, which connects to the company’s mainline system.

“Everybody is concerned,” Brown says. “They don’t like not having money come in, but the contractors have learned to deal with the steep peaks and valleys of the oil and gas industry. We just hope this slowdown is not as protracted as it was in 2001, which lasted four years.”

Despite the dearth of pipeline projects planned for 2010, both McKibbon and Brown believe there are reasons to be optimistic about the future of Canada’s oil and gas market.

“There’s a lot of excitement in the industry about the oil reserves in Canada, such as the oil sands in Alberta and the emerging market in Saskatchewan,” McKibbon says. “There are pipelines being built to the United States, but also to the Canadian coast to load onto boats and ship to Asia or to other parts of the world. That’s huge for Canada.

The oil sands provide a big opportunity for companies in Canada, and the technology is getting more effi cient at harvesting the oil.”

McKibbon also notes the opportunities presented by the newer methods of extracting natural gas from shale.

“There is a major natural gas reserve in northern Alberta, but there is even more in northern British Columbia,” McKibbon says. “Companies are better at fracking shale to allow the gas to escape.” McKibbon says both the oil sands and shale gas prospects are strong, but he thinks the oil piece could be bigger for Canada.

In the end, Brown says they have to be optimistic for the oil and gas pipeline industry. “The demand for oil is high and it will be for quite a while,” he says. “We don’t have a viable substitution, and as long as the demand for oil remains, there will be a demand for pipelines. So, yes, I’m very optimistic about the future. I just don’t know when the future will be.”

As they wait to see what the future holds, McKibbon, Brown and the rest of the PLCAC members will continue to forge partnerships that brighten the light at the end of the pipeline.

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


Founding History of the Pipe Line Contractors Association of CanadaThe Pipe Line Contractors Association of Canada was formed to represent

contractors in labor relations and to establish training courses to develop Canadian workers in the skills required to perform complex pipeline construc-tion. The association was founded by a small group of contractors and suppliers at a meeting in Edmonton on April 20, 1954. Ever since, the PLCAC has broad-ened in scope to include occupational health and safety, legislative review and a host of other technical and technological activities.

Pipeline construction is a relatively new sector of the construction industry on the North American continent. Although it had its beginning with the discovery of oil in Ontario in 1857, it was not until the Leduc discovery in 1947 that pipeline construction became a signifi cant factor in the economy of Canada.

The initial goal was to provide Canadian contractors a means to collectively bargain with various unions through a Canadian-specifi c Mainline Agreement. On May 5, 1954, the fi rst general meeting of the PLCAC was held at the MacDonald Hotel in Edmonton, where the bylaws were drafted and approved. The new association had 11 Regular Members and four Associate Members.

On the weekend of June 5, 1954, the PLCAC Labor Committee met in Edmon-ton with the Operating Engineers, Laborers, Teamsters and Pipefi tters Welders. After a marathon session, the very fi rst “made in Canada” collective agreements covering pipeline construction in Canada were completed.

Inside the PLCAC2009-2010 Offi cers• President: Teri McKibbon, CEO of Aecon Infrastructure Group• First Vice President: Kevin W. Waschuk, Vice President of Waschuk Pipe Line Construction Ltd.• Second Vice President: Nick deKoning, President of Robert B. Somerville Co. Ltd.• Treasurer: David L. Kavanaugh, President of O.J. Pipelines Canada• Immediate Past President: Ted Shipka, President of Triple Random Inc. • Executive Director: Barry L. Brown

Board of Directors• Director: Donald A. Cusack, Vice President of Marketing for Premay Pipeline Hauling LP • Director: Richard J. Delaney, President of The Link-Line Group of Companies• Associate Director: Dave Douglas, Manager of the Canadian Pipeline Division of Ritchie Bros. Auctioneers (Canada) Ltd. • Director: David W. Johnstone, President of T.W. Johnstone Co. Ltd. • Associate Director: Bernie Lailey, National Pipeline Manager of Acklands-Grainger Inc.• Director: Michael R. Prior, Vice President and General Manager of Michels Canada

Current PLCAC president Teri McKibbon accepts an award from immediate past

president Ted Shipka at the association’s 2009 conference.

When you own and operate a diverse mix of pipelines that

transport crude oil and refi ned prod-ucts throughout the United States, it’s important to have an accurate picture of those assets. Sunoco Logistics Part-ners carries out numerous relocates, reroutes and rehabilitation projects to maintain its extensive network of oil and gas pipelines. The company has instituted 3D mapping to ensure that such projects go smoothly.

Adding accurate 3D mapping to all horizontal direc-tional drilling (HDD) projects has resulted in benefits to Sunoco operations. The company used 3D mapping during a 1,200-ft long HDD bore for a 12.75-in. crude oil pipeline, which is a required utility relocate for the Texas Department of Transportation (TXDOT) Toll 49 Highway project that loops around Tyler, Texas, in the northeastern part of the state.

Sunoco turned to Geospatial Corp., which provided its Smart Probe technology, a 3D mapping system that created an accurate direct measurement of the pipeline’s centerline.

The TechnologyGeospatial’s Smart Probe technology for centerline 3D

mapping of utility pipelines is a system used in a number of underground utility industries, including oil and gas (transmission, gathering, distribution), municipal (water, sanitary, storm systems), electrical and power (transmis-sion and distribution), telecom and facilities (government, military, shipping ports).


Mapping Future Pipelines

Sunoco Teams with Geospatial to Create 3D GIS Pipeline DatabaseBy Todd Porter and William Chaparro

The Smart Probe technology consists of two main com-ponents. The fi rst is an array of data collection instruments, which include accelerometers, gyroscopes and odometers located within each of the probe bodies. The second is a post-mission software package that extracts, computes and interprets the collected data and allows for the seamless transfer of the collected data into various GIS databases.

As the probe moves through the pipeline, it records all changes in inclination, heading and velocity at 800 Hz and stores the information internally on the probe. Once inserted into the pipeline, the probe operates autonomously — there is no umbilical or surface commu-nication required.

The Smart Probe operates in a relative coordinate frame, measuring a continuous centerline 3D trajectory. Register-ing and correcting the probe is achieved by GPS survey (accurate to plus or minus 0.10 m) of entry, exit and intermediate points along the pipeline route for long sections. This provides the absolute XYZ pipeline posi-tions for horizontal and elevation points in any datum or coordinate system worldwide. By transferring the complete pipe centerline into AutoCAD or a GIS database, accurate XYZ registration creates the baseline or valida-tion of the true location of the asset.

A key goal in developing the Smart Probe technology was to design the instrumentation in such a way that it is capable of being used within a series of different probe body styles that would allow for the use of the technology with-in a wide range of pipeline types, sizes and environments. Confi guration examples are shown in Figures 1a and 1b, all scalable for 1.5-in. to 60-in. and bigger applications.

Field Operations Geospatial crews arrived at the jobsite on the morning of

the survey and met with representatives of the construction contractor and Sunoco. The crews assembled at the eastern

access location (see Figure 2) of the pipeline where dewater-ing operations from a previously performed hydrotest were initiated (see Figure 3). Typically, pipelines are clean, dry and open-ended for the mapping operations. The survey can also be carried out in partially wet or in-fl ow operations using other procedures.

After the pipe was dewatered, a “mule tape” was intro-duced into the pipe. This is a simple nylon-braided tape used in the utility industry with a 1,200-lb or more pull tension rating. In typical applications, the mule tape is pushed through the open-ended pipe using a low-pressure, high-fl ow blower and parachute deployment. A string line is attached, which then pulls the mule tape through the pipeline. At that point the pipeline is “strung” and ready for the Smart Probe mapping tool. The probe is inserted into the pipeline and pulled through from end to end, at least once in each direction, to complete the survey. In this case, a modifi ed cleaning pig was used and blown through the pipeline with the mule tape trailing. Typical stringing equipment is shown in Figure 4.


Figures 1a (top) and 1b show the different confi gurations that the Smart Probe is available in, which allow the system to be used in a variety of pipe types, environments and sizes, from 1.5 in. to 60 in.

and larger diameters.

Figure 2 (top) shows the eastern access location where the Smart Probe survey began after a hydrotest of the pipe, while Figure 3 shows the west access location, the exit point for dewatering.

Once stringing was complete, Geospatial set up the Smart Probe to map the pipe, attaching it to the mule tape and another trailing tape. This facilitates pulling the tool back for a two-way survey as shown in Figure 5.

Work Process SummaryThe complete mapping operation can take as long as a

few hours to possibly a full day, depending on the length of the pipeline. The most involved step of the process is to string the pipeline. In some cases, the survey has been completed in less than one hour because any delay in con-struction or placing pipelines back in service is time critical. The steps are summarized as follows:

• GPS survey of the entry and exit points on the pipe-line, generally done before reconnect and backfi ll.

• Complete cleaning and/or dewatering.• Open entry and exit ends of the pipeline.• String the pipeline with forced air or compressor.• Complete the Smart Probe mapping; pull the tool for-

ward and backward (complete round trip) twice (for quality control purposes).

• Download data, perform quality control inspections, remove mule tape and demobilize — job complete.

Deliverables The Smart Probe survey report deliverables include:• AutoCAD plan and profi le as-built (3D referenced to

the provided survey coordinates)• PDF version of the AutoCAD depiction• Comma Separated Value (CSV) fi le documenting the

horizontal coordinates (X, Y) and elevation (Z) in 1-ft intervals along the length of the conduit bore

• Google Earth image (KMZ) fi le referencing the plan view of the conduit (see Figure 6)

Mapping AccuracyThe accuracy of 3D position was within operating specifi -

cation of the Smart Probe: • 1:400 horizontal relative accuracy (He = +/- 0.0025 * d) • 1:1,000 vertical relative accuracy (Ve = +/- 0.0010 * d)• Where d = the distance from entry, intermediate or

exit points on the pipeline

ConclusionsAccurate direct measurement of pipe centerline and

geometry mapping is now possible with the Smart Probe technology. Sunoco validated its use of the 3D mapping process for trenchless installation and rehabilitation of its oil and gas pipelines, and the probe produced as-built plans and profi les for the project. Having an accurate measure-ment of the pipeline eliminates risk and uncertainty of position, which allows engineering design and performance analysis to be carried out with confi dence.

Sunoco is adding this level of accuracy and complete-ness to other aspects of its work process. In future proj-ects, Caliper Gauge Plate tools will be added to ensure that no geometric defects have occurred during installa-tion. As well, direct measurement of the bend radius of the installed pipe and detection of any possible joint misalign-ment is also reported.

Todd Porter is vice president of Global Energy Services for Geospatial Corp. William Chaparro is project manager of Pipeline Relocations for Sunoco Logistics.


Figure 6 shows a Google Earth (KMZ fi le) plan view of the conduit pipe as provided by the Smart Probe survey.

Figure 5 shows the Smart Probe as it deploys into the pipeline. The mapping crew pulls the unit from end to end, once in each

direction, to complete a two-way survey.

Figure 4 shows the typical equipment used in “stringing” a pipeline. Geospatial and Sunoco used a modifi ed cleaning pig with a trailing tape attached. The mapping probe will then be attached to the tape

for GIS surveying.

O il and gas pipeline projects require long hours, hefty machines and a variety of other supplies — but nothing is as important as a well-trained crew.

With demanding deadlines and conditions, it’s impera-tive to attain and preserve a skilled group of individuals willing to take on the tough tasks the pipeline industry presents. With projects spanning across the country, crews tend to lead a nomadic lifestyle, forcing them away from home for extended periods of time. This cyclical nature of the business can also act as a disadvantage when trying to retain a workforce.

“Pipeline construction is diffi cult work,” says Laura Lee Hughes, special international representative for the Laborers’ International Union of North America (LIUNA). “Not only does it involve physical labor, a pipeline worker must be away from his or her family and home for months at a time — prob-ably living in a motel or travel trailer and working at least 60 hours or more a week.”

Although the pipeline industry offers a career and disciplined lifestyle, there has been a steady supply of workers creeping into the business. With many open-ings for employment and various training opportunities available, people are fi nding their way into the industry.

“In our case workforce recruitment and retention has improved,” says Phillip Stephenson, director of Pipeline and Gas Distribution for the United Association (UA). “United Association Local Unions and especially LU 798 have redoubled their efforts in training. LU 798 increased membership in 2008 immensely to meet the needs of the industry.”

Although most of the pipeline industry has obtained an adequate supply of workers, some sectors of the business have experienced shortages. To remedy this lack of quali-fi ed crewmembers, different associations are reaching out with training opportunities.

“There has been a shortage, especially for operating engineers and pipeline welders,” Hughes says. “Due to this knowledge, contractor associations and pipeline worker training funds have homed in on this shortage and are currently ramping up the supply of workers.”

Stephenson adds that the UA’s weld training facility in Tulsa, Okla., is busy with non-stop efforts to ensure an adequate supply of qualifi ed welders. This allows compa-nies to stock their crews with knowledgeable workers and continue with business as usual.

The past year and troublesome economy brought about a diffi cult time for most of the construction industry. However, the pipeline business continued to grow and saw impressive numbers once again — leading to a steady need for workers.

“The pipeline industry always seems a little out of sync with the normal building trades construction,” Stephenson says. “The down economy has not seemed to affect this industry just yet. The union sector pre-jobbed over 8,000 miles of pipeline in 2008, and we are on track to do more than 4,000 miles in 2009.”

Since business is on the rise, many companies have benefi ted from other industries laying off or losing their workforce. With other construction sectors feeling the effects of the downturn (such as the residential market), the oil and gas pipeline industry has taken advantage of those crews looking for work.

“The economy was, in the short term, a boon for the pipe-line industry,” adds Hughes. “The pipeline market remained good up until this year, so we were able to recruit many good workers from other industries. The downturn should ease at the end of the year for us and be up next year.”

Keeping up the spirits of current crewmembers in a cloudy economy is also important — especially to retain workers. Hughes suggests strengthening company operations and hosting special events for employees.

“Work concertedly to try to get decent housing at a fair price when constructing out in the rural areas,” Hughes says. “Occasional barbecues are always welcomed by employees. An effective and caring safety department lets workers know that they are important.”

Enlisting a Crew In times when potential workers are not lining up for

work, recruitment is an important aspect of obtaining


Keep Pipeline Projects onTrack Through Workforce

Recruitment and Retention

By Pam Stask



anticipation of an eventual resurgence in pipeline work,” says Mack Bennett, pipeline director for IUOE.

Although work was slow and the demand for pipeline op-erators was low when the training courses began in 1993, the program continued on and gradually expanded through-out the years. Now with the pipeline industry growing, this training is a valuable asset as companies expand their crews.

“Today, with the pipeline industry experiencing the biggest boom ever in the United States, the IUOE/PLCA program offers a greatly increased number of classes in an effort to supply PLCA contractors with well-trained person-nel in the many different aspects of the pipeline industry so they can meet the needs of their gas and oil company clients,” says Bennett. (For more information on the IUOE/PLCA program, see the sidebar on page 32.)

The United Association also spends $200 million per year in training, notes Stephenson. The UA offers multiple mobile training systems throughout the United States and Canada, in addition to its apprenticeship programs at each local union. There are also plenty of training programs available for seasoned pipeline contractors to keep them up to date on the latest trends and technologies.

“The United Association made a commitment to the PLCA and the Distribution Contractors Association that we would do whatever is necessary to keep our workforce on the cutting edge of technology,” Stephenson says. “We con-tinue to make that commitment in order for us to be the most productive and dependable workforce we can be.”

Pam Stask is a contributing editor to North American Pipelines.

employees in the pipeline industry. Stephenson stresses that it has been crucial to convey the benefi ts of the business in order to recruit and stock crews with qualifi ed people.

“We try to instill in them that this is in fact a career,” he says. “Workers will be given a union pension and healthcare. They will be provided a just and livable wage and a place to work and apply their skills in a safe, dignifi ed environment.”

One area where the business has seen interest in work-ers is the military. It has become a popular trend in the pipeline industry to recruit workers who are returning from military service. This offers men and women who served in the armed forces an opportunity to join the industry and receive the training necessary to work out in the fi eld.

“The United Association has a program called Veterans in Piping [VIP], where we take returning veterans and put them in advanced weld training programs to augment our ranks,” Stephenson explains. “The returning veterans have proven leadership capabilities and a disciplined, depend-able work ethic beyond reproach.”

As older pipeline workers retire and move on to new ventures, replenishing the workforce is vital for operations to continue. Pipeline organizations and contractor associa-tions attempt to encourage younger generations to enter the workforce — stressing the opportunities the construc-tion industry has to offer.

“We stress the fact that the construction industry is a career,” Stephenson says. “We will always be building — whether it’s pipelines or skyscrapers. The infrastructure of this nation must be renewed and brought up to date. Opportunities in this area will explode when this economy starts to turn.”

Hughes adds, “If they are prepared to live away from home, they can make very good money over the course of a few months and then return home until the next project. There would also be a pension for them in the future, as well as health insurance. Working in some states might also earn vacation monies for the crews.”

One diffi culty in recruitment has been competing with other industries, especially up-and-coming markets like renewable energy. With that challenge at hand, associations have launched campaigns and programs to spur interest in oil and gas pipeline projects. These have allowed the indus-try to showcase its advantages.

“The industry has some work to do,” Stephenson says. “With the advent of renewable resources such as solar and wind, we have to be able to provide a safe, clean alternative. The technology is here to make us nearly energy indepen-dent if we can harness the potential.”

Supplying the Skills In order to get new workers out in the fi eld, the proper

training must be offered and completed by the employee. Over time, various industry associations have developed training programs and procedures to ensure workers are properly prepared for the task at hand.

For example, the International Union of Operating Engineers (IUOE) and the Pipe Line Contractors Association (PLCA) have worked together for more than a decade on providing the appropriate training to pipeline professionals.

“Faced with a noticeable drop-off in pipeline work in the early 1990s and a corresponding loss of skilled pipeline operators retiring or leaving the industry, the IUOE and the PLCA established the National Pipeline Training Fund to replenish and expand the depleted skilled workforce in

Educating the Industry The IUOE/PLCA National Pipeline Training Program Prepares Workers for the Field By Mack Bennett

In the early 1990s, the International Union of Operating Engineers (IUOE) and the Pipe Line Contractors Association (PLCA) established the National Pipeline Training Fund to build up a skilled workforce for when the industry experienced a revival in projects. Training began in 1993 with four classes and continued to grow each year. With the industry booming, training is needed now more than ever to keep qualifi ed workers.

The program conducted 33 classes in the 2008-2009 season, with another 47 scheduled for 2009-2010 in an effort to bolster the supply of skilled operators even more. The different classes are tailored to teach the specifi c techniques of the cross-country pipeline construction industry to heavy equipment operators working in more traditional aspects of the construction industry. The classes start in November and run through May — taking advantage of what is normally the off season in the construction industry. Applications for the training programs are available at local IUOE training centers.

The program offers classes for excavator, sideboom or angle dozer training. Each three-week program runs six days a week, 10 hours a day. This program covers all the crews, starting with the clearing through the restoration process. In addition, there are one-week bending and engineering classes and one-week rock drilling classes available.

Starting in the 2009-2010 training season, hoe-vac will be taught one week of the three-week excavator class. While winching has always been taught during the three-week angle dozer class, the program added a one-week, specialized winching class.

There are IUOE training centers throughout the United States, some of which have geographic features that are used for specifi c types of training. Vendors such as CRC Evans, Vacuworx, Dynapad, Volvo and Ozzie Padder have donated the use of equipment for specialized classes. Cranesmart has donated a load monitoring indicator (LMI) to the program that will be installed on one of the Cat 561 pipe layers. LMIs are the latest technology in safety aids available to operators.

A safety program covering the specifi c hazards of the pipeline industry is taught throughout each training class. For the purposes of DOT Operator Qualifi cation, a training program specifi c to the covered tasks of IUOE members working on the pipeline has been developed by the fund.

The program’s dedicated, knowledgeable instructors are its greatest asset. Many of them are, or have been, veteran pipeline operators and foremen for pipeline contractors, bringing an added understanding to industry needs. These professional pipeliners bring knowledge gained through experience that is not found in a book or any other resource.

Using the latest multimedia technology, instruc-tors are able to convey information more clearly to the students, who use the same multimedia techniques to learn in a more timely fashion. Once the students arrive on the spreads with this knowledge on how to approach a particular task correctly, it’s a matter of refi ning the process on the right-of-way that makes them productive hands.

In order to effectively train so many individuals, the program purchased eight angle dozers, eight excavators, eight sidebooms and a bending machine in 2005 and 2006. CRC Evans and CAT-PLM assisted the program by offering a very competitive price on this large equipment purchase. In 2009, the program purchased two John Deere sidebooms from RDO Equipment and one 320 John Henry rock drill from Jimco Equipment.

The logistics involved with this huge undertaking, including equipment transportation, student lodging, meals and personnel transportation, cost millions of dollars. In an effort to keep costs somewhat manageable, the program notes well in advance those areas throughout the United States where upcoming jobs are scheduled and the IUOE sets up training sites in relatively close proximity.

Participants in the training program have fi lled high-profi le jobs, such as setting in pipe, bending, grade tractor, winching to tie-in hoe operators and some have even become foremen. The bending and engineering classes have produced numerous new bending machine operators and engineers.

For more information on the IUOE/PLCA National Pipeline Training Program, visit www.iuoe.org.


ipelayers are the workhorses of a pipeline construc-tion project. A short list of the chores that these heavy-duty machines perform includes unloading

pipe from trucks and rail cars, lifting pipe for welding and bending and lowering the line into the trenches. Pipelayers can be used singly to handle a length of pipe or as a collec-tive force to manipulate a pipeline section.

With so many vital tasks at stake, it’s important to know which machine is right for your needs. North American Pipe-lines gathered the experts at Midwestern Manufacturing Co. and Volvo Construction Equip-ment, and asked them how to go about choosing the right pipelayer for the job.

The fi rst things to consider when choosing a pipelayer are what it will be lifting — the pipe — and where it will be doing the lifting — primarily, the terrain.

“The size of a pipelayer needed will be determined by the diam-eter of the pipe, weight of the pipe per foot and the length of the pipe to be handled, as well as the type of terrain where the pipeline is to be laid,” says James Shelley, vice president and general man-ager of Midwestern Manufactur-ing Co., which builds a variety of sidebooms that can be attached to rubber-tired front-end loaders and crawler style tractors from other OEM manufacturers.

Make sure to also consider pipe size and wall thickness and whether the pipe is concrete coat-ed, says Lewis Long, vice presi-dent of global accounts for Volvo Construction Equipment, which offers two pipelayers in its stock-ades, the PL4608 and PL4611, with 80 and 110-metric ton tipping capacities, respectively. Long also notes that terrain slope and bearing pressure will help determine which pipelayer will be better suited for the jobsite.

Other important considerations, Shelley suggests, are whether the pipelayer is manufactured by a reputable manufacturer, if the machine is built to ASME B3014 standards, what types of winches are used (hydraulic vs. mechanical) and the length of the boom.

The type of pipeline will also play a role in sizing a pipe-layer, whether the project is for long-distance transmission or shorter distribution lines.

Transmission or transportation pipelines need a dedicated right of way, and consequently require earth


How to Choose the Right Pipelayer for an Installation Project

By Bradley Kramer

The size of a pipelayer is determined by the size and weight of the pipe being installed and the ter-rain conditions on the jobsite. Largescale transmission pipelines will require larger machines, while

distribution projects are better suited for smaller and midsize machines.



grouser) depends on terrain conditions (dry, sandy, rocky or muddy) and slope grade.”

Soil conditions will dictate the type of shoe confi gura-tion and width needed, as well as track length, Long adds. However, the soil also plays a part in how you size a pipe-layer for the job.

“Soil conditions play a big part in the selection of the size of pipelayer needed, as it will determine how far the pipe-layer will have to be from the edge of the ditch in order to maintain the desired safety margin,” Shelley says. “This in turn will also determine boom length for the pipelayer on that particular job.”

Creature ComfortsDespite all the impressive stats and durability offered by

the pipelayers on the market, it’s the operator who makes it function on the jobsite. That’s where the cab comes into play.

“In what can be extreme conditions, a better cab will make the job easier by providing comfort for the operator, which reduces fatigue and increases productivity and should also provide protection for the operator,” Long says.

Options such as the seat, controls, air conditioning and heat help make the operator more comfortable, while cab visibility, load indicators and the roll over protective structure (ROPS) will provide safety. Shelley adds that the ease of getting in and out of the cab is another important consideration.

“The more comfortable the operator is, the less fatigued he will become during the long hours spent on the machine,” he says.

moving machines, Long says. Pipelines are built over long distances and at high speed, several miles per day. Distribution lines, on the other hand, are built in cities, are smaller in size and over short distances. Daily, linear production is very low, and therefore machinery require-ments are also lower.

“Largescale pipeline work will need 90,000-lb to 200,000-lb lift pipelayers and small distribution lines typically use 10,000-lb to 40,000-lb lift pipelayers,” Shelley says. “The small distribution pipelines use the combination ma-chines — this is a tractor that has both a pipelayer and a dozer blade attached. This allows the contractor to use the machine for all phases of pipeline construction and not have to have a separate dozer for backfi ll and clearing operations.”

The adjustable boom of the pipelayer performs the work, but its length will depend on the machine size, Long says. The working height of the boom is determined by the activ-ity that the pipelayer is performing, whether that is pipe stringing and bending or transport.

“There is no correct boom height,” Shelley adds. “Different job conditions call for different length booms. The standard boom length for smaller pipelayers runs from 15 ft to 20 ft, and for larger pipelayers they will run from 20 ft to 28 ft. Longer or shorter booms for any pipelayer will be determined by job conditions or by contractors’ preference.”

The majority of pipelayers are of the sideboom confi gura-tion, and that’s for good reason, Long says. The side-mounted setup is better suited for applications in which the machine has to lift or lower pipe and move forward at the same time, where the ditch can be on either side of the machine.

“The 360-degree upper structure swing capability of Volvo pipelayers provides the sideboom capability while also enabling pipe handling and placement capabili-ties at any point of the swing, for maximum fl exibility,” Long adds.

The engine of the pipelayer — or in the case of Midwest-ern Manufacturing’s products, the OEM tractor or crawler — is an important factor in assuring that the machine will have enough power to meet the demands of the job, as well as meeting today’s tough environmental standards.

“All tractors are produced with diesel engines,” Shelley says, “and fuel consumption is definitely a big factor in selecting a pipelayer, as well as making sure when buying a new pipelayer that the engine will meet Tier 3 requirements.”

However, fuel consumption may not be as big of a factor as in other construction machines, Long says, because pipe-layers spend a large portion of their time on the job idling at low engine rpm.

A bigger consideration with the engine may be the fl y-wheel power or rated horsepower, Shelley says. “A pipelayer needs to have suffi cient horsepower in order to perform all the pipelayer functions, as well as move and maneuver the tractor in all types of terrain,” he adds. Midsize pipelayers range from 125 to 300 hp, while larger scale machines range from 300 to 400 hp.

Outside of the engine and boom, the undercarriage plays a vital role in a pipelayer’s performance, Shelley says. The undercarriage can affect the maneuverability and the stability of the pipelayer because of the heavy side-loading the pipelayer is subjected to during pipelaying operations.

“Undercarriage track length and shoe width are impor-tant since they contribute to machine stability and ground pressure,” Long says. “Shoe type (single, double or triple

Considering CostsIn times of tough fi nances, it’s important to consider the cost of owning a machine, as well as whether

to buy new or used. Resale value may also play a vital role in choosing the make and model. The decision to buy used will depend on the contractor, Shelley says. “Some buy only used,” he

says, “while others will only buy new or late models with low hours.”However, buyer beware. “Used pipelayers often do not meet modern safety requirements and have very poor

stability,” says Long, who suggests that new machines offer better stability and often include a load management system for increased jobsite safety.

The cost of ownership for a pipelayer includes fuel, lubricants, filters, wire rope, spare and replacement parts and transportation requirements. Shelley suggests that potential buyers make sure that the pipelayer has a parts and service manual that provides maintenance inter-vals and a list of recommended spare parts. He also recom-mends that maintenance personnel have adequate training. Maintenance service and dealer support are a high value in pipeline contracting.

“It is very important to the contractor to know that he can get parts and service for his machines, because of the remoteness of most pipelines,” Shelley says. “Dealer support is a big issue with pipeline con-tractors. In most cases when a machine goes down it needs to be back in operation in a matter of hours, not days.”

The right pipelayer with the necessary options and strong service support will provide the versatility and durability needed for any pipeline project.

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


Avoiding the Tipping PointCranesmart Pipelayer System Monitors Load to Improve Safety

As sidebooms lift pipe lengths from point to point on a pipeline construction project, operators must take care not to overload the machine, which could result in dangerous tip-over. Just like on any other jobsite, safety is paramount.

Cranesmart’s wireless Pipelayer System operator aid is specifi cally designed and engineered for sideboom tractors to aid operators in improving safety when handling pipe. The retrofi t system provides the operator with a clear, easy-to-read display that shows vital information to help avoid overload-ing, dangerous and costly tip-overs and damage to the pipe itself from abrupt tilting of the pipelayer in the case of an overload.

All load chart information for each make and model of pipe-layer is programmed into the Pipelayer System. The display panel shows boom overhang, load on the hook, percentage of permis-sible rated load and maximum rated load. When operating in out-of-level ground conditions, the display indicates the slope in degrees and warns. The system can also provide information on tip height, boom angle, boom length, parts-of-line and detailed four axis ground slope indication.

The Pipelayer System is self checking in design, alerting the operator of any malfunctions in the system. Cranesmart provides a “free battery for life” program. So in addition to a fi ve-year battery life in each component of the system, replacement batteries are free for the life of the system. All com-ponents are solid state, with no moving parts for rugged and reliable usage in any environment. For more information, visit www.cranesmart.com.

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outheast Directional Drilling, based in Casa Grande, Ariz., recently completed 15 bores over fi ve months totaling more than 32,600 ft as part of the ongoing

$12 billion Keystone Pipeline project that will deliver crude oil from Canada to Illinois and Oklahoma.

Horizontal directional drilling (HDD) is playing a critical role in this pipeline project, which is owned by TransCan-ada Corp. The 2,148-mile Keystone Pipeline will transport crude oil from Hardisty, Alberta, to U.S. Midwest markets at Wood River and Patoka, Ill., and to Cushing, Okla. The pipeline will be further extended 1,690 miles to the Gulf Coast in 2012.

The Canadian portion of the Keystone Pipeline in-volves the conversion of approximately 537 miles of ex-isting Canadian mainline pipeline facilities from natural gas to crude oil transmission service and construction of approximately 232 miles of pipeline, pump stations and terminal facilities in Hardisty. The U.S. portion of the project includes construction of approximately 1,379 miles of pipeline and pump stations.

The Keystone Pipeline will have an initial nominal capacity of 435,000 barrels per day in late 2009 and will be expanded to a nomi-nal capacity of 590,000 barrels per day in late 2010. Keystone has contracts with ship-pers totaling 495,000 barrels per day with an average term of 18 years.

Southeast Directional Drilling completed its bores between May and September 2009, with several bores requiring around-the-clock drilling to meet project deadlines. Sheehan Pipeline Construction, which subcontracted the job to Southeast, was awarded Spreads 8A and 8B of the pipeline and decided to use HDD.

“It was a very challenging project for us. It would have been a very challenging project for anyone,” says Southeast Di-rectional Drilling project manager Todd Barton. “The challenges we were met with on this project involved time con-straints, weather conditions, safety requirements and the rock drill we encountered. There aren’t a lot of contractors that can commit the time, resources and manpower to complete a project like this.”

Southeast Directional Drilling was originally awarded 11 bores to be done in western Illinois and eastern Mis-souri, but four more were added. Of the 15 bores, eight were water crossings. “The bores were done under various wet-

lands, water bodies, a golf course and highways,” Barton says. “The bores were also done in fairly populated areas.”

The bores, which installed 30-in. steel pipe, ranged in length of 1,500 to 3,800 ft. Ground conditions consisted of everything from silty, sandy mush — which made drill-ing easier — to solid limestone — which tested Southeast’s abilities and equipment. Crews used fi ve American Augers drill rigs for the bores: a 1.2 million-lb, two 800,000-lb, a 500,000-lb and a 250,000-lb rig.

Proojeecct CChaaalleengggesssWeather posed one of the biggest challenges to South-

east crews. Heavy and constant rains over the spring and summer throughout the Midwest caused numer-ous delays, as well as changes in approaches in some of the crossings.

“It has been an extremely wet year in 2009,” Barton says. “Pipelining in and of itself is a monster. You couple that with fresh virgin soil, rights of ways cleared of all the brush and now you have a mud mess. It was extremely challeng-ing just getting to many of the locations that were in fair-ly remote locations. Probably half of the bores presented a challenge because of the rain. We had everything from shutdowns due to lightning to excessive rain resulting in us

HDD Plays Vital RRolee in Building TraansCanada Pipeline By Sharon M. Bueno

Southeast Directional Drilling completed 15 bores for part of the 2,148-mile Keystone Pipeline, which will transport crude oil from Hardisty, Alberta, to Midwest markets in the

United States. In 2012, the pipeline will be further expanded to the Gulf of Mexico.


rutting up the right of way so badly that we were shut down for environmental reasons.”

Southeast Directional Drilling operations manager Eddie Ramos noted one bore in particular — named Hurricane Creek — that was directly affected by the rainy conditions. The original bore was to be 4,546 ft long, but it was decided to split the bore in two and do a directional intersect because of heavy fl ooding that restricted access to the area.

“Originally when the project started, that area didn’t have any water there,” Ramos says. “Then all the rain came down, opening the fl ood gates and the next thing you know, the entry and centerline stakes were under 14 ft of water. There was a lot of water that inundated that area.”

There was also a time constriction on this particular cross-ing that had to be met — everything needed to be wrapped up by Sept. 1. This was an environmentally sensitive area inhabited by indigenous ducks and work had to be done before the start of duck hunting season.

Because of the water, crewmembers built coffer dams where they were going to enter and exit through the fl ooded area and set up two American Augers rigs (one was 1.2 mil-lion lbs and the other was 800,000 lbs) for the intersect.

“At one point, we had two 800,000-lb rigs on one of the pads — one pulling in the pipe and the other reaming at the same time,” Barton says. At different times, a few of the bores were being drilled simultaneously in different areas. “At one point, we had three rigs running in Illinois and we had two going in Missouri,” he says, noting the logistics of running the equipment was trying at times, especially since Southeast crews were also working on a 36-in. pipeline project in Geor-gia during that period.

“One thing we do at Southeast is we build our own rock reamers and for [the Keystone Pipeline project], we specially made rock ream-ers from our shop,” Barton says. “We built 25 to 30 reamers, ranging in size of 24 to 42 in.”

The reamers were put to good use, as the soil conditions were more diffi cult than crew-members previously thought. “There was an exorbitant amount of tooling that we went through because of the rock. The geo-sam-ples showed rock, but we encountered much harder rock than the geo-techs had reported to us. It was a challenge to meet the requirements and still keep the bores within the time constraints,” Barton says. “Coupling these conditions with those on that Georgia project, which involved drilling through solid granite, our production crew in the shop [in Arizona] were turning out reamers left and right.”

Another bore where Southeast encountered tough rock was boring under Highway 61 in Troy, Mo. “That was extremely hard, hard rock,” Barton says.

Barton also noted that three of the bores involved drill-ing under levees (NCC Levee, Wood River Levee Hwy 3 and Wood River East & RR), which complicated the project, presenting a slew of challenges. “The Army Corps of En-gineers required an exorbitant amount of paper work and pre-planning in the design of those bores going underneath the levees,” Barton says. “The Mississippi River levees are the backbone of the safety and security of the entire area. If we compromised one of the levees during the drilling

process, it would be [catastrophic]. So we spent a lot of time designing and working with the engineers to design the correct depths.”

Ramos also pointed out that for the Keystone Pipeline project, crews were required to run downhole pressure tool-ing during drilling, in order to monitor the annular pres-sure around the steel tooling that is down hole to prevent problems such as frac-outs. “We had to stay within certain parameters the entire time,” he says. “It’s something not done in our industry very often, at least not in the United States, though it is in Canada more.”

Ramos and Barton say the key to the success of a project of this magnitude is in the planning stages: Plan it correctly and the positive execution will follow. “Since the day we bid the project in 2008 until the time of construction, Shee-han and we worked hand-in-hand with TransCanada Corp. to make this project a successful one,” Barton says.

PPippelliinee FFuuuttureeProjects such as Keystone are not that unusual in the

HDD industry these days, with a notable shift toward larger diameter work, according to Ramos and Barton. “If you look at the large pipelines that are being installed and construct-ed today, there has been a real shift over the last 24 to 36 months where these large gas companies are going to these 36 and 42-in. diameter lines. It used to be that a 36-in. pipe was a big, big pipeline,” Barton says. “But now we are seeing a trend toward even larger pipelines. The reason for this is that [energy companies] are using the pipelines not only for transport, but are using the pipeline for storage.”

Ramos and Barton say that they’ve seen somewhat of a slowdown in the pipeline market as 2009 comes to an end, but that there are some large projects out for bid now for 2010, 2011 and 2012.

Sharon M. Bueno is a contributing editor to North American Pipelines.

Heavy and constant rains during spring and summer throughout the Midwest caused numerous delays and in some cases changed how Southeast Directional Drilling approached some of the water crossings for TransCanada’s Keystone Pipeline.

Case CX800B ExcavatorCase Construction Equipment recent-

ly upgraded its largest excavator — the CX800B — to its B-Series line of excava-tors. The CX800B features increases in fuel effi ciency and productivity, as well as improved operator comfort and ease of maintenance. The 178,575-lb excava-tor also features an electronically con-trolled, common rail Tier 3-certifi ed 15.7 L Isuzu engine, which delivers 532 net hp. The CX800B is available in standard and mass excavation confi gurations, making it ideally suited for a variety of applica-tions requiring heavy muscle and long reach. The common rail fuel injection system, combined with the redesigned hydraulic system, delivers increased fuel effi ciency over the previous model. The CX800B delivers increased fuel effi -ciency and productivity, which results in more cubic yards of material per gallon of fuel. The CX800B features regenerative hydraulics on the boom and arm, as well as the bucket curl, which speeds the cycle time required to get a bucket of dirt. The sound levels inside the isolation-mounted cab are among the quietest in the industry, even at full throttle. The CX800B excavator also features memorized operator adjustment, which automatically adjusts to the last settings selected by the operator. The CX800B features a “green plug” that provides an easier, cleaner and greener engine oil change. The engine oil fi lter, remotely located in the pump house, is easy to change without the need to go underneath the machine. The hydrau-lic oil fi lter provides 100 percent continuous fl ow fi ltration of all hydraulic oil on the return line. Flip-open service panels provide easy access to virtually all key components. For more information, visit www.cnh.com.

Caterpillar 345D L ExcavatorThe 345D L excavator builds on the Cat C-Series reputation by increasing machine durability and improving overall per-

formance. In measured tests, the 345D L consistently out-produced the 345C L, but maintained the same fuel consumption as the C-Series. In addition to machine performance improvements, the 345D L includes a 19,840-lb coun-terweight, heated seat and swivel guard as standard equipment and additional attachments in the mer-chandising arrangements. The excavator features a Cat C13 ACERT engine with 380 hp, 39,300 lbs of digging force, dig depth of 29.3 ft and operating weight of 100,040 lbs. The 345D L’s targeted markets are heavy con-struction, bulk earthmov-ing, oil and gas pipeline, and water and sewer customers. The machine is designed with versatility in mind in order to meet the needs of all of these diverse customers well. Visit www.cat.com for more information.

Product Showcase


John Deere 120D and 135D Excavators

John Deere is offering two new hydraulic excavators in the 12 to 13.5-metric-ton range, the 120D and 135D — midsized machines with big performance. The 120D is a perfect dig-and-run unit for jobs such as excavating basements or placing pipe and transports easily between jobs. The 135D is a reduced tail-swing machine capable of maximum production in confi ned areas or work within a single lane of traffi c. A short counterweight allows it to dig nearer to buildings and obstructions. Both machines feature Deere’s Powerwise III Tier 3-certifi ed diesel engine and hydraulic management system for smooth power and fuel savings, along with roomy, comfortable cabs that offer enhanced visibility. The Powerwise III engine provides 93 hp and three operating modes can be selected to match the engine rpm to the operating conditions and appli-cation. The “E” mode for light-duty work reduces fuel consumption without sacrifi cing productivi-ty. The “H/P” (high-power) mode increases engine rpm to boost horsepower for working through tough spots. The engine rpm automatically returns to normal once the resistance is overcome. The 120D operates at 28,498 lbs with 12,823 lbs of breakout force, while the 135D operates at 32,747 lbs with 12,942 lbs of breakout force. For more information, visit www.johndeere.com.




Hyundai R210LC-9 Excavator Hyundai’s new 9-Series excavators showcase Hyundai’s work to

exceed the ever evolving demands of today’s construction equipment market. Hyundai’s Posi-Nega hydraulic control system, recently introduced on the R210LC-9 excavator, sets new standards for the industry. The 9-Series excavators are loaded with standard features that usually cost extra on competitive models, such as a heated air-ride seat, a control pattern selector valve or the HI-mate remote management system, which is free for two years. Hyundai’s standard Total Coverage Warranty protects the excavator for two years or 2,000 hours and offers additional assurance on the structural integrity of the machine with an industry exclusive fi ve-year or 10,000-hour structural warranty. This warranty also includes a free initial service call by the local authorized Hyundai Dealer. Hyundai’s network of dealers is highly trained to provide exceptional customer service and technical support for all Hyundai products. To further support its customers and dealers, Hyundai’s standard HI-mate GPS/satellite system gives the customer and dealer daily access to machine location, daily operating information, security features, diagnostic information and real time machine alerts and warnings. For more information, visit www.hceusa.com.

Volvo EC330C and EC460C Crawler Excavators

The Volvo EC330C crawler excavator is designed for high productivity in the toughest conditions, for tasks including earth-moving, loading, demolition, quarry work, civil engineering and more. The Volvo EC460C crawler excavator is a production machine ideal for general contracting, quarrying, pipe laying, demolition and largescale bulk earthmoving. The Volvo EC330C offers a pow-erful 247-hp Volvo engine and the EC460C features a 320-hp Volvo engine — each Tier 3 compliant. Both models benefi t from Volvo Advanced Combustion Technology (V-ACT), offering high torque at low rpm, leading to ultra-effi cient fuel consumption. A fully electronic-controlled hydraulic pump and higher torque swing motor provides faster cycle times and increased performance. The Volvo Care Cab offers a protective structure for better safety with features like more operator space, improved visibility and low noise. The multi-adjustable seat and joystick consoles allow optimal control, and the easy-to-read color LCD display shows real time information of machine functions and important di-

agnostic information. A strengthened undercarriage, reinforced structure and boom/arm provide endurance against daily abuse. Plus, longer service intervals and simplifi ed ground level serviceability leads to more uptime. For more information, visit www.volvo.com.

Terex TC50 Compact Crawler ExcavatorDesigned for space-restrictive applications, the Terex TC50 compact crawler

excavator offers a stable, zero tail-swing platform. The TC50 is designed to turn within its tracks, guaranteeing that the rear of the machine does not swing into nearby structures. The TC50 is ideal for demanding excavating and trenching applications when the performance features of a standard-sized excavator are essential, but space is limited. The TC50 offers an offset boom with built-in swing to provide greater visibility and reach, as well as multi-width excavation and parallel-to-wall operation. Switching attachments on-site is quick and easy because of the auxiliary hydraulic circuit with open (pressureless) return. The TC50 weighs 11,067 lbs and packs a 39.4-hp Yanmar 4TNV88 engine, with a maximum dig depth of 12 ft, 2 in. and a maximum reach of 20 ft, 4 in. The optional quick-attach coupler system allows for easy bucket and attachment changes, offering versatility for multiple jobsite ap-plications. TC50’s top-mounted, inverted boom helps prevent the cylinder seals and the hoses from dirt buildup and offers protection from the elements. The design of this machine offers ground-level access to all of the critical machine components, including the engine, drivetrain and hydraulics. The spacious, insulated steel cab was designed with the operator in mind and provides excellent visibility. For more information, visit www.terex.com.

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Hitachi Zaxis 450LC-3 ExcavatorThe Zaxis 450LC-3 provides rugged, dependable pipelining pro-

ductivity with low operating costs. The excavator’s Tier 3-certifi ed, six-cylinder Isuzu engine achieves greater output — 348 net peak hp at 1,800 rpm — and considerable reduction in fuel consump-tion through a cooled Exhaust Gas Recirculation (EGR) system and a common-rail fuel-injection system that eliminates differences in suction pressure among cylinders. The HIOS III hydraulic system is perfectly matched to the Isuzu’s torque curve. Thanks to regenera-tive systems, arm, boom and bucket actions are faster. The HP power mode ensures effi cient arm roll-in during deep excavation. A boom mode setting reduces vibration and impact shock-loads from lift-ing or pulling of the body to increase comfort and component life. The CRES II cab features a wider, more comfortable seat back, more foot room and excellent right-side visibility. The cab structure has been strengthened and is quieter. The large, easy-to-read, color LCD multifunction monitor is multilingual and lets the operator make simple oil fl ow adjustments for attachments with the touch of a button. Undercarriage, upper structure and front attachment areas have been strengthened for longer life, including the addition of more ball bearings to increase the loading capacity of the swing circle. This results in greater stability in heavy-duty operations. The parallel arrangement of the radiator, oil cooler and intercooler makes it easier to clean around the engine. Inspection points are conveniently located and grouped together. Bucket lube points have been repositioned for easier access, while the rest of the front attachment receives automatic lubrication. The Zaxis 450LC-3 comes standard with the ZXLink Ultimate wireless communication system and three years of service. ZXLink Ultimate delivers machine hours, location and geo-fencing capabilities, plus dashboard alerts, equipment usage and fuel consump-tion data and diagnostic trouble codes. The Zaxis 450LC-3 weighs 106,180 lbs and comes standard with a 12-ft, 10-in. arm, a 20,172-lb counterweight and 36-in. triple semi-grouser shoes. For more information, visit www.hitachiconstruction.com.



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North American Pipelines Calendar

Advertisers Index

2009

December

1-3Deep Gulf 2009Moody Gardens Hotel & ResortGalveston, TexasWeb: www.deepgulfconference.com

2010

January

11-13NUCA Expo 2010Walt Disney World Dolphin HotelOrlando, Fla. Web: www.nuca.com

19-21Underground ConstructionTechnology (UCT) 2010International Conference & ExhibitionTampa Convention CenterTampa, Fla. Web: www.uctonline.com

February

15-1822nd International Pipeline Pigging & Integrity Management Conference(Plus Training Courses and Exhibition)Marriott Westchase HotelHouston Web: www.clarion.org/ppim/ppim10/main.php

17-21PLCA 62nd Annual ConventionScottsdale, Ariz. Web: www.plca.org

23-28DCA 49th Annual Convention Fiesta Americana Grand Los CabosLos Cabos, MexicoWeb: www.dca-online.org

March

2-4CGA Excavation Safety Conference and ExpoSan Diego Convention CenterSan DiegoWeb: www.excavationsafetyonline.com

17-20AGC 91st Annual ConventionMarriott Orlando World CenterOrlando, Fla.Web: www.agc.org

19-24PCCA 65th Annual ConventionDisney’s Contemporary ResortOrlando, Fla.Web: www.pccaweb.org

April

19-21DCA 15th Annual Safety CongressGaylord Texan ResortGrapevine, TexasWeb: www.dca-online.org

June

6-10PLCA of Canada 56th Annual ConventionSheraton Hotel Newfoundland St. John’s Newfoundland and Labrador, CanadaWeb: www.pipeline.ca

14-18DCA 22nd Annual Mid Year Board of Directors MeetingLa Costa Resort and SpaCarlsbad, Calif.Web: www.dca-online.org

September

27-Oct. 1IPLOCA 44th Annual ConventionMolino Stucky HiltonVenice, ItalyWeb: www.iploca.com

November

10-11DCA Fall Board Meeting Gaylord Texan ResortGrapevine, TexasWeb: www.dca-online.org

Want to see your event here? Send an e-mail to associate editor Brad Kramer at [email protected] with a subject heading of “Events Calendar.”

Advertiser ........................................ Website ...................................................Page #

Benjamin Media Resource Center ... www.benjaminmedia.com/book-store ............45Dun Transportation & Stringing ....... www.duntrans.com ..........................................15Educational Webinar Series ............. www.benjaminmedia.com/webinars ...............41Enduro Pipeline Services Inc. .......... www.enduropls.com ........................................35FAE .................................................... www.faeusa.com ................................................7Gabe’s Construction Co. Inc. .......... www.gabes.com ...............................................31Geospatial Corporation.................... www.geospatialcorporation.com .....................29Giffi n Dewatering .............................. www.griffi ndewatering.com ..............................37HDD Rotary Sales LLC .................... www.hddrotary.com .........................................19Horizontal Technology Inc. ............... www.horizontaltech.com ....................................5John Deere ....................................... www.JohnDeere.com/nomad ..........................48LJ Welding & Machine ..................... www.Ljwelding.com .........................................45

Advertiser ........................................ Website ...................................................Page #

Mersino ............................................. www.mersino.com ............................................23Michels Corp. ................................... www.michels.us ................................................17Neptune Research, Inc. ................... www.neptuneresearch.com .............................13Pipeline Pigging & Integrity Management Course ....................... www.clarion.org ................................................33Rain For Rent .................................... www.results.rainforrent.com ............................11REMU USA Inc. ................................ www.remu.fi ......................................................25Rig Source, Inc ................................. www.rigsourceinc.com .....................................45SuperTrak, Inc. .................................. www.supertrak.com ..........................................47United Association ........................... www.ua.org .......................................................45Vacuworx International ..................... www.vacuworx.com .......................................2, 3

The Events Pipeline Conferences, Meetings & Trade Shows


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