pipeline news january 2013
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Pipeline News January 2013TRANSCRIPT
PIPELINE NEWSSaskatchewan’s Petroleum Monthly Canada Post Publication No. 40069240
January 2013 FREE Volume 5 Issue 8
A3A3PTRC proves you canPTRC proves you can send probes throughsend probes through
wormholeswormholes
B1B1Port of ChurchillPort of Churchill
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Stompin' Out Stompin' Out The ColdThe Cold
Don Cannon, who hauls uid for Husky Energy, tries on a pair of steel-toed winter workboots made by Ba n. Cold weather is good for business at Northern Factory Workwear in Lloydminster and Saskatoon. Photo by Geo Lee
SECTION A4 Aquistore drilled, awaits CO2
5 Q&A with Minister Tim McMillan
6 Editorial
7 Opinion
9 Hot sales for Grit's cold weather line
17 Husky to double thermal by 2017
19 North Ba leford starts 100 year party
26 Baker Hughes proves CHOPS chemistry
29 Bonnyville Oil Show
33 Dress for the cold
INSIDEA2 PIPELINE NEWS January 2013
PIPELINE NEWSNEWSSaskatchewan’s Petroleum Monthly
Feb. 2013 FocusContact your Sales Rep
to be a part of the focus edition
SE SK and SW Manitoba • Phone: 306.634.2654
Cindy [email protected]
Candace [email protected]
Deanna [email protected]
Kristen O’[email protected]
Teresa [email protected]
NW SK Cell: 780.808.3007
SW SK Phone: 306.773.8260
HOCKEY NIGHTIN THE PATCH
Stacey [email protected]
Regina & Saskatoon Phone: 306.715.5078
Alison [email protected]
CarlylePhone: 306.453.2525
SECTION B3 More women needed in the patch
4 Estevan's new mayor speaks
6 Weyburn mayor targets housing
8 Pipeline appointment drives rail demand
9 More than just trucks: Clean Harbors
20 Stampede Drilling launches Rig 1
24 Estevan's Microtel rst of many
32 Fired up to heat frac water
Randi [email protected]
PIPELINE NEWS January 2013 A3
TOP NEWS
By Brian ZinchukPipeline News
Calgary – When you produce heavy oil, you of-
ten produce a lot of sand. Th e big question for a long
time is, what is left behind as the sand comes out?
Does it collapse on itself, or does it form wormholes?
And if so, do they actually aid in production?
Th e wormhole question has been answered
conclusively by a joint parternership between the
Regina-based Petroleum Technology Research
Centre (PTRC) and Netherlands-based INACS3.
Not only have they proven wormholes exist between
water injecting and producing wells, but they have
successfully passed tiny sensors, called “motes,”
between them. Th e implications of the research, and
the paths it can lead to, are ground-breaking.
Th e stakes are huge. Using existing recovery
methods such as CHOPS (cold heavy oil production
with sand), heavy oil reservoirs in the Saskatchewan-
Alberta border region of Canada see only a fi ve-to-
eight per cent recovery rate. In CHOPS production,
a sand and oil mixture is extracted from the heavy oil
fi eld; the produced sand that comes up with the oil
leads to the creation of empty spaces or “wormholes”
in the reservoir. Th ese wormholes form a potentially
immense network of channels in unconsolidated
sandstone preventing pressurization of the reservoir
thus, infl uencing the effi ciency of oil production. If
the Canadian oil industry can better characterize
these reservoirs, extraction methods can be improved,
which could lead to up to a 20 per cent increase in
yields while lessening deleterious eff ects on both
the environment and extraction effi ciencies such as
excess water production.
Th e challenge is to better understand the struc-
ture of these reservoirs. If this network of wormholes
exists, sensors should provide information about de-
tails as to their number, diameter, direction and loca-
tion. For this purpose INCAS3 is developing sensor
motes that can be injected into heavy oil reservoirs,
collect relevant data, and return to the surface. Th e
main issues to overcome are the size of the sensors,
the extreme conditions they face, communication
with the sensors from the surface, and retrieving the
sensors out of the reservoir.
Pipeline News spoke via phone to Dr. John Van
Pol of the Netherlands, the leader of INCAS3, while
he was in Calgary with PTRC CEO Dr. Malcolm
Wilson. Th ey were attending meetings for the
Sustainable Technologies for Energy Production
Systems (STEPS) program.
INCAS3 is co-fi nanced by the Dutch Ministry
of Economic Aff airs, the Province of Drenthe, the
European Fund for Regional Development and
the Municipality of Assen. Th e Dutch bring sensor
expertise to the table, while the Canadians have the
oil and gas experience.
Th ree sizes of motes were sent into the forma-
tion – round balls fi ve, seven and nine millimetres
in diameter. A small number of the nine millimetre
motes were also tried. Some motes were solid, while
the larger ones had tiny RFID electronic packages to
identify themselves. Th e casing was a fi bre-enhanced
plastic that does not dissolve in oil, Van Pol said.
Th ey also had to withstand 100 bars of pressure, or
approximately 1,450 psi.
Th e test took place in November at a heavy oil
Canadian Natural Resources Ltd. (CNRL) site. It
was a waterfl ood situation, with two vertical wells,
each roughly 500 metres deep, and spaced about 400
to 500 metres apart horizontally. One was a water
injector, the other a producer.
Th ere had been anecdotal evidence of open
channels between wells. Dye has been passed
between wells in the past. Dye takes about one-and-
a-half hours to make such a trip, he noted. But Van
Pol pointed out that a fl uid can pass through a lot
smaller places than a smaller object. Th is was a test to
see if they could pass objects from wells A to B.
Th e motes had to survive a trip of at least 1,500
metres, assuming they travelled in a straight line
between the two wells. But there’s no way to know
that, at least, not yet.
It’s an arduous journey. First they had to travel
down the injection well, and fi nd their way through
perforations that, when made, were 12 millimetres
in diameter. Van Pol noted those perforations could
have changed over time.
Initially they tested to see if it was possible to
inject motes into an injection well. Th ey did, and got
50 per cent back, which meant they could carry on to
the next step.
Testing was done at a Kudu Industries Inc. facil-
ity to see if one of their progressing cavity pumps
could handle these motes; if they would chew up the
pump, or the pump would chew up the motes.
Hard and soft shells were tried. A camera was
passed through the pump. Ultimately, the test was
also successful. While these motes are a lot larger
than a grain of sand, Van Pol noted, “If they can
withstand the grinding nature of sand, they can
withstand these.”
Th at being done, the full-blown test was con-
ducted. Th e probes were injected over three days,
from the Nov. 12 to 14, and began to show up from
the fi rst day’s injection in the production well on the
last day.
Going into one well, the motes could go off in
any direction. Only one direction will take them to
the producer well, although possibly through several
paths.
Th en the motes had to fi nd their way through
the perforations and into the producer well. Th ere,
they had to actually get sucked into the pump, not
settling out in the bottom of the well. Th e motes had
to have a similar specifi c gravity to oil, otherwise they
would settle out.
Th e test proved for the fi rst time there is a chan-
nel between the wells with a minimum opening of
seven millimetres.
“It is possible for (for motes) to go into a well,
then be caught by the PC pump and go 500 metres
up,” Van Pol said.
Th ey were able to recover fi ve to 10 per cent of
the motes used by early December. However, they
had no data on any of the small number of nine
millimetre motes making the journey. It took the in-
jected motes roughly two days to make the journey.
Th e largest number appeared within 48 hours, but as
of Dec. 3, they were still producing.
A few of the motes were ground up along the
way. A signifi cant fraction came out in pieces, he
said. One RFID tag came out without a shell.
Among the fi rst things they wanted to know
was what sizes would work. Do they stay intact? Can
they do it again?
Asked if this was the fi rst time such a feat had
been done in the world, Van Pol said, “As far as I
know, it is. It’s the fi rst time in a systematic way.”
“Th e ultimate goal is to test pressure, tempera-
ture and conductivity as a function of position. And
then we need to know where the things are. Th e
complicated thing is, I have to know where they are,”
Van Pol said.
Normal navigation sensors, like those in a
smartphone, will not work, he noted. Drift and size
are two factors. Sensors such as three-dimensional
accelerometers also need a battery and maybe an
antenna. Th ey are working with chip manufacturers
to integrate that all into one chip.
And there’s one other important factor – cost.
“Th e whole mote idea is to be as cheap as you can,”
he said. “We injected about 20,000. If the price is low
enough, it doesn’t matter if one fails.”
He noted they are using a lot of relatively cheap
things, and hope the majority will work.
“It’s not a shotgun approach. It’s a distributed
system. We rely on a large number that will actually
work.”
“We want to fi nd out what the structure is down
there. Are there channels? Do channels collapse?
It might be a length of one kilometre or two. I just
don’t know. We don’t know if it’s a straight line or
curly.
“Cool, isn’t it?”
Asked where this technology could take them,
and the industry, he said, “We are looking at that
now.” Th e PTRC and INCAS3 have a joint venture
known as PI Innovation Centre (PI for PTRC
and INCAS3.) Van Pol spoke of four to fi ve years
of research ahead. At the end of January there will
be hosting a large-scale workshop, outlining a four
to fi ve year roadmap, which 20 to 30 experts are
expected to attend.
“Reservoir mapping is the Holy Grail. If reser-
voir engineers know the structure down there, they
can think of how to get it out,” he said.
Wireless downhole sensing should be feasible, he
added.
“Can we detect pump integrity and pump
status?” Van Pol asked, noting that was of interest to
Kudu. “Can you analyze pumps as an early warning?
Th ere are many spinoff s.
“It’s a phased approach we’re looking at.”
One of the key things Van Pol pointed out was
this concept has proven to be much more feasible
than industry believed. It’s research directly cor-
related to real experiments. It’s not a nice-to-see lab
bench experiment, but a real-world situation. Th ey
have to be able to manufacture it, and it has to work.
But they still have to be cautious, and take it
step-by-step. “If you destroy a reservoir, you’re fi ve
years back in what you can do.
“It’s a new approach. We want to be careful to
keep this thing going. Let’s not try to change the
world tomorrow,” Van Pol concluded.
These “motes,” ny, inexpensive sensors, passed from a water injector well, through at least 400 to 500 metres of a heavy oil reservoir 500 metres deep, then through a progressing cavity pump and made it to surface intact.
Photo submi ed
Proving you can send sensors from one well to another
A4 PIPELINE NEWS January 2013
BRIEFS
Briefs courtesy Nickle’s Daily Oil Bulletin
By Brian Zinchuk
Estevan, Regina – As of
mid-December, the Aquis-
tore project was pretty much
wrapped up, and is now
awaiting its fi rst carbon di-
oxide.
Aquistore is a project
undertaken by the Regina-
based Petroleum Technol-
ogy Research Centre that
is designed to inject an-
thropogenic carbon dioxide
into deep saline aquifers.
Th e intent is to prove the
greenhouse gas can be safely
stored, permanently, under-
ground, as a strategy to com-
bat climate change.
Th e project is located a
couple kilometres due west
of the Boundary Dam Power
Station, which will be the
source of its CO2. Th e $1.2
billion Boundary Dam Unit
3 carbon capture project cur-
rently underway will rebuild
a unit of the coal-fi red power
plant and capture nearly all
the CO2 it produces when in
operation. Th e CO2 is des-
tined for sale for enhanced
oil recovery, but Aquistore
provides an alternative CO2
disposal option and research
opportunity.
Two wells were drilled
over the course of the summer
and fall. Th e fi rst, the injection
well, was initially the deepest
in the province, at 3,396 me-
tres in depth. Th e second, the
observation well, topped that,
at 3,400 metres. Th e targeted
formations are the deepest in
Saskatchewan, right above
the Precambrian basement of
bedrock.
Drilling operations were
completed in November, and
the Nabors Drilling triple rig
moved off . However, there
were some complications with
the cement job on the upper
part of the observation well,
leading to remedial steps be-
ing taken into mid-December,
according to Dr. Malcolm
Wilson, CEO of the PTRC.
Th e cement on the lower part
of the well is fi ne.
“We’re more or less fi n-
ished,” he said on Dec. 11.
“Th ere’s a little bit of work
on the observation well,” Wil-
son stated, noting fi nal drill
out and the running of the ce-
ment bond logs were expected
to be done in mid-December.
Th e observation well has
a total of six sensor lines in-
stalled, going to the bottom
of the well. One was damaged
during installation, but the
other fi ve survived, and in-
deed, have been useful in ce-
ment remediation work.
Initially the PTRC had
planned to truck in carbon
dioxide for a test run, but
that was changed to a water-
injection instead, and math-
ematically modelled.
“Th at’s been done. We’re
pretty comfortable with the
numbers. Th ey were by and
large conservative numbers.”
Th ere’s not a lot of ac-
tivity expected for the better
part of a year now, waiting
for the Boundary Dam proj-
ect to near completion.
“I’d like to do a water
production test. Whether we
can do one or not remains
to be seen,” Wilson said. He
would also like to do an early
CO2 test if the opportunity
arises.
Th e Boundary Dam
project is not expected to
be completed until early
2014. But there will be sev-
eral months of commissioning
shakedowns over the winter
of 2013-14 and the following
spring. Aquistore will be used
to dispose of CO2 before the
CO2 sales pipeline goes into
operation.
“As long as they’re pro-
ducing CO2, we’ll accept it,”
he said.
Some time between now
and then the pipeline between
the power plant and the injec-
tion well will also need to be
built.
The Aquistore injec on well is in the foreground, while the observa on well can be seen in the background.
Photo by Brian Zinchuk
Aquistore’s wells are drilled, now it’s a waiting game
CorrectionIn our November 2012 edition we ran a photo on Page B26
with a story on Flexpipe Systems at the Lloydminster Heavy
Oil Show in September that incorrectly named one of the per-
sons in the photo. Th e correct names for the people in the photo
(l-r) are Jason Mapletoft and Clint Booth.
Sask. and Manitoba oil well completions set record
Operators completed
454 oil wells in Saskatchewan
in October month along with
80 oil wells in Manitoba – a
record tally for that month in
both provinces.
In Alberta, 588 oil well
completions were recorded
last month, off from 621 in
October 2011 but still the
second-highest count on re-
cord.
In total, operators com-
pleted 1,286 wells across
Canada in October for a total
of 2.41 million metres.
During the fi rst 10
months of the year, a total of
9,304 wells have been com-
pleted for 18.53 million me-
tres of hole. For the January-
to-October period last year,
13,077 wells and 22.04 mil-
lion metres were completed.
Excluding experimental
wells, only 953 gas wells have
been completed in Alberta to
the end of October compared
to 3,017 a year ago. Alberta
operators have completed
3,873 oil wells in the fi rst
10 months of the year versus
4,698 in the comparable pe-
riod of 2011.
A record 521 oil wells
(excluding experimental
wells) have been completed
in Manitoba in the January-
October period, up from 374
a year ago.
In Saskatchewan, 2,535
oil wells have been reported
as completed over the fi rst 10
months of the year, off from
last year’s high of 2,709.
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PIPELINE NEWS January 2013 A5
BRIEFS
Briefs courtesy Nickle’s Daily Oil Bulletin
Do All offer expires
Do All Industries
Ltd. announced Nov. 23 that
its off er to purchase all of
the issued and outstanding
common shares of Hyduke
Energy Services Inc., as var-
ied and extended pursuant
to a notice of variation and
extension dated Nov. 12 ex-
pired at 4:00 p.m. (Calgary
time) on Nov. 23, 2012.
Th e off er was condition-
al upon, among other things,
a minimum tender condi-
tion, which was not met.
Th e company will not
take up any shares depos-
ited under the off er and will
return any shares deposited
under the off er to the depos-
iting Hyduke shareholders.
Do All is a private com-
pany based out of Estevan,
Saskatchewan, which pro-
vides integrated products
and services for the oil and
gas industry.
Harvest Operations
Corp. has raised its 2012
upstream capital budget to
$441 million from $411
million, excluding oilsands
spending.
Th e additional $30 mil-
lion will be spent on drilling
programs in the fourth quar-
ter to ensure completion and
tie-in of wells before 2013
spring breakup, the com-
pany said.
Th e extra money will
advance winter drilling pro-
grams in Harvest's Hay Riv-
er, Red Earth, Ante Creek,
Deep Basin and southeast
Saskatchewan areas, Les
Hogan, the company's new
chief operating offi cer, told a
recent third quarter earnings
conference call.
Harvest adds $30 million
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McMillan foresees lower price gap with Keystone XL
By Geoff LeePipeline News
Regina – Arguably, the most important event of 2012 for Sas-katchewan’s oil and gas industry at the government level took place when Premier Brad Wall shuffl ed his cabinet on May 25.
Th e change created a new Ministry of the Economy headed by former Energy and Resources minister Bill Boyd.
Th e change elevated Lloydminster MLA Tim McMillan to the position of minister responsible for Energy and Resources, Tourism Saskatchewan and Trade within the Economy Ministry.
McMillan is also the minister responsible for SaskEnergy.With 2012 drawing to an eventful close for the Saskatchewan’s
energy and resources sector, we asked Minster McMillan to look back on some of the challenges of the oil and gas industry since he took of-fi ce and what to expect in 2013.
PN: What are a couple of energy highlights for you in 2012 since being named minister responsible for Energy and Resources in a May cabinet shuffl e?
McMillan: If I had to pick one or two things, one would
likely be when I was down in Weyburn – Panther (Drilling
Corp.) was getting their most recent rig ready to go out in the
fi eld for the fi rst time to drill its fi rst well.
Th ey trusted the minister of Energy and Resources to even
run the controls on it a little bit. It was pretty gutsy of them to
turn me loose for a short stint. Th at was fun.
I think being the minster of Energy and Resources and be-
ing asked to speak at the Lloydminster Heavy Oil Show is an-
other highlight.
I think it’s more personal to me since I grew up in Lloy-
dminster and worked in the industry in Lloydminster and at-
tended the show. Now to be asked to speak there was a true
highlight for me too.
PN: What do you think is your most notable accomplish-ment as the new minister Responsible for Energy and Re-sources?
McMillan: Th ere is lots of day to day work that is the big-
gest accomplishment even though there isn’t necessarily a sign
post that says “You’ve Made It,” but it is work that’s ongoing
and I think is very important.
Th at work would be the challenges around access to pipe-
lines or export capacity. Th at work is certainly ongoing, but there
is a political angle on some of it.
It is meeting and speaking with the people who are propos-
ing projects and talking to the rail companies that have stepped
up and are now taking a substantial amount of oil and under-
standing their plans and projects.
Th ere is a role for the government and the minster to be
involved in some of it, and some of it there isn’t. Th at work is
ongoing, but it is very important to our industry.
PN: Are you surprised how much oil is being shipped by rail?
McMillan: I have met with companies that are currently
doing this – some that are doing it right out of the Lloydmin-
ster area. Th ey felt that this was an option in the past. Th ey
thought they could do it economically and have some advan-
tages on speed and be able to hit certain markets in a timely
manner.
In the past, the diff erential wasn’t there to kind of get going.
Now that they have been able to put in some serious infrastruc-
ture, when capacity on the pipeline side comes back, they think
they will be able to off er a very competitive service and help
industry reach new levels that they wouldn’t otherwise.
PN: What do you think will be the major challenge for the oil and gas industry in 2013?
McMillan: Probably the same as this year, that the price of
gas is following the technology change which has accessed new
gas that people throughout North America have known about
for a long time. Th e price is probably going to be the biggest
challenge on the gas side.
On the oil side, pipeline capacity would have to be the ob-
vious one. When we see the price of Brent Crude priced $20
premium over West Texas Intermediate, and then what we are
able to ship it for out of Saskatchewan at substantial discount
to that, it makes the economics more diffi cult in our province.
Page A8
Tim McMillan, minister responsible for Energy and Resources, who is also the MLA for Lloydminster, was delighted to speak at the 2012 Lloydminster Heavy Oil Show in September. McMillan grew up in the Lloydminster area where he once worked in the oil industry. He ex-pects pipeline capacity to be a key issue in 2013.
A6 PIPELINE NEWS January 2013
Publisher: Brant Kersey - Estevan
Ph: 1.306.634.2654
Editorial Contributions: SOUTHEAST
Brian Zinchuk - Estevan 1.306.461.5599
SOUTHWEST
Swift Current 1.306.461.5599
NORTHWEST
Geoff Lee - Lloydminster 1.780.875.5865
Associate Advertising Consultants:SOUTHEAST
• Estevan 1.306.634.2654
Cindy Beaulieu
Candace Wheeler
Kristen O’Handley
Deanna Tarnes
Teresa Hrywkiw
• Carlyle 1.306.453.2525
Alison Dunning
CENTRAL
Al Guthro 1.306.715.5078
SOUTHWEST
• Swift Current 1.306.773.8260
Stacey Powell
NORTHWEST
• Lloydminster Randi Mast 1.780.808.3007
MANITOBA
• Virden - Dianne Hanson 1.204.748.3931
• Estevan - Cindy Beaulieu 1.306.634.2654
CONTRIBUTORS
• Estevan - Nadine Elson
• Saskatoon - Josh Schaefer
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NEWSPIPELINE
Mission Statement:Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people.
EDITORIAL
When Pipeline News became a province-wide
paper in the spring of 2008, we knew we were onto
something with this Bakken development that was
just beginning to catch fi re. Now that fi re has ignited
change in not only the oil and gas industry, but in the
world order itself.
With the Bakken, North Dakota is well on its
way to achieving a million barrels per day produc-
tion of light, sweet crude. Nipping on its heels is the
intense development of Texas’ Eagle Ford shale.
Th e horizontal multi-stage frac well design which
allowed the Bakken and Eagle Ford to proliferate has
put the dynamics of the natural gas business on its
head. Alberta producers are shutting in production
and TransCanada’s mainline system is running half
empty, to the point where they are looking to ship oil
in their under-utilized pipelines. As a result, Eastern
Canada is now seriously looking at using Western
Canadian oil instead of importing crude from the
Middle East as a result.
Pipelines have always been political, going back
to the Diefenbaker days. But now they are not only
political, but in some ways seemingly impossible. Will
Keystone XL ever be built? Maybe, maybe not. Th e
opposition to Northern Gateway has B.C.’s premier
doing her best to play Mafi a wiseguy, shaking down
her neighbour to the east.
Enbridge, king of the oil pipeline business, is now
shipping crude-by-rail. In late November, they an-
nounced the formation of their own rail company to
ship Bakken Crude to Philadelphia.
Crude-by-rail is now being considered for ex-
porting oil via Churchill, on Hudson Bay, or Valdez,
Alaska. Some are actually considering building an
Expect the upheaval to continue
oil-shipping rail line from Northern Alberta all the way
to Valdez, if you can believe it (there are more than a few
mountain ranges in between).
To top it all off , the International Energy Agency
published a whopper, saying the U.S. could be outpro-
ducing Saudi Arabia by 2020, and a net exporter by
2030.
If you took a time machine back fi ve years and told
an oilman any of these points, he’s slap you upside the
head and say, “Wake up, you’re dreaming!”
Yes, this is a dream world we are living in. Wells
are now horizontal, not vertical. Producers are looking
to rail fi rst, pipeline second, to ship their crude. Alberta
gas is nearly worthless. Saskatchewan drilled only 9 gas
wells in the fi rst nine months of the year.
If these are the changes we’ve seen in the last fi ve
years, what sort of changes can we expect in 2013?
Crude-by-rail is going to continue to rise in promi-
nence. Th e ability to put a rail car full of crude at a
siding of a refi nery anywhere on the continent will shake
up the refi ning and pipelining industries to the core.
Th e U.S., now realizing it really doesn’t need all that
Middle Eastern oil, will start to do what its natural ten-
dencies have always been – pull back to its own shores
and get the heck out of there. Congress is going to come
to the realization fi ghting wars for oil makes no sense
when you have enough oil at home to keep the SUVs
full.
Canadian refi neries are going to get thirsty for Ca-
nadian oil, cheaper than the Brent prices they are paying.
Th at will lead to more energy security in our nation, and
fundamentally change the dynamics of our industry.
With so much change in the air, 2013 is going to be
a wild one.
PIPELINE NEWS January 2013 A7
PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR ARE WELCOME.Email to: [email protected]
OPINION
Lee Side of LloydBy Geoff Lee
From the Top of The PileBy Brian Zinchuk
In 2013, energy
infrastructure in-
vestment needs to
jump to the top of
the list as a national priority.
Urgency is needed as the International Energy
Agency predicts that the U.S. will overtake Saudi
Arabia and Russia in oil production by 2015.
Without new pipelines and processing facilities
in place to access new markets in Asia, the growth of
Canada’s oilsands could be stymied by 2016 if North
American supply exceeds demand.
In the IEA’s 2012 edition of the World Energy Outlook, U.S. production of oil is expected to jump
from its estimated 2012 year-end level of 6.2 million
barrels of oil per day up to 11.1 mm bpd by 2020.
Th e report also predicts the U.S. will be a net
exporter of oil by 2030, and nearly energy self-suffi -
cient by 2035.
Th e incredible increase in light oil production
south of the border is largely attributed to the suc-
cess of hydraulic fracking technology which is also
unlocking huge reserves of shale gas.
Th e end result is that the U.S. could achieve its
elusive goal of energy security and will not need large
volumes of imports to sustain its economy.
What this means for Canada of course, is that
the U.S. demand for Canadian oil won’t be as strong
as previously anticipated, even with the construction
of the Keystone XL pipeline.
Th e IEA also expects that much-improved vehi-
cle fuel effi ciency will slowly reduce U.S. oil demand.
Th e Obama administration has adopted rules raising
fuel effi ciency for new cars to 54.5 miles per gallon
by 2025 – roughly double the present standard.
Th e spectre of rising oil production and shrink-
ing demand should dramatically reduce U.S. imports,
says the IEA.
Th e IEA expects U.S. net imports to fall from
9.5 million bpd in 2011 to only 3.4 million barrels a
day by 2035.
Th e IEA also predicts renewable energy will
become the world’s second-largest source of power
generation by 2015, and close in on coal as the pri-
mary source by 2035.
If all this holds true, then Canada’s economy is
in for a major economic jolt unless the government
and private sector act together now to open new
gateways to markets other than the U.S.
Th ere is no doubt Canada’s economic fortunes
are tied to the energy sector.
On the bright side, the proposed Keystone
XL pipeline, the Trans Mountain pipeline and the
Northern Gateway pipeline could all be in the con-
struction or operational stages in just a few years, en-
abling new markets to be reached.
In the short term, the construction of the Key-
stone XL will help to ease the U.S. supply bottleneck
of oil at Cushing, Oklahoma and tighten the price
diff erential between Brent and West Texas Interme-
diate crude.
Earlier in 2012, Enbridge Inc. and Enterprise
Products Partners LP reversed the fl ow of their Sea-
way pipeline to ship 400,000 bpd day from Cushing,
where WTI is priced, to refi neries at the U.S. Gulf
Coast.
Building additional refi neries in Canada would
also help to eliminate oil price diff erentials and al-
low producers to sell more value-added petroleum
products if the world becomes awash in oil.
Th e IEA report also references the need for en-
vironmental issues pertaining to water, energy effi -
ciency and carbon emissions to be addressed in the
oilsands for that industry to grow.
Th e start of a new year brings the IEA forecast
closer to a reality check that can’t be ignored.
Th e federal government’s is projecting a defi cit
of $26 billion for the current fi scal year that could be
a lot higher without Canada’s energy exports.
Th e time for energy infrastructure development
is now before we can’t aff ord to export.
As a kid growing up on the farm, I listened to
the daily grain price reports on GX94. All conversa-
tion would stop as prices were listed per bushel and
tonne of the precious commodity we were produc-
ing. At times, hauling grain a day or two earlier had
a noticeable impact on the bottom line. And when
things weren’t going so hot, one could always blame
the elevators or railways.
Th ose once-accursed railways are now the salva-
tion for the Western Canadian oilpatch.
Consider these little tidbits from Reuters on
Nov. 15. First, “Canadian cash crude oil prices weak-
ened on Wednesday after TransCanada Corpora-
tion declared force majeure on some shipments
scheduled for its 590,000 bbl.-per-day Keystone
pipeline following weekend power problems that re-
duced fl ows.
“Western Canada Select heavy blend last traded
at $30 per bbl under West Texas Intermediate, com-
pared with a settlement price on Tuesday of $28.50
below the benchmark, according to Shorcan Energy
Brokers.”
Th en the same day we saw, “Enbridge Inc. said
on Th ursday it had rationed more oil pipeline capac-
ity on its huge Canada-to-United States system, a
rare mid-month move that sent prices for Canadian
heavy crude tumbling.”
At the tail end of the article it noted, “Western
Canada Select, a widely quoted heavy crude grade,
sank as much as $5 a bbl. on Th ursday as word of
the apportionment spread through the cash market.
WCS for December delivery last sold for $32.50 a
bbl. under benchmark West Texas Intermediate, a
$2.50 deeper discount than on Wednesday, accord-
ing to Shorcan Energy Brokers.”
Given that the NYMEX-WTI December price
listed as of Nov. 16 was $85.45, shaving a diff erential
on that day of $32.25 off that is a huge haircut. Th at’s
leaving 38 per cent of your potential money on the
table. Generally speaking, money off the top is the
profi t part of the equation.
No wonder companies like Crescent Point En-
ergy Corp. are ramping up their crude-by-rail facili-
ties. In March, I wrote about their Stoughton facility,
then just getting its legs under it. I pointed out that
one unit train a day would be relatively close to their
entire oil production in southeast Saskatchewan.
Th erefore I felt a little smug come November when
they announced that the Stoughton facility would
be increased in capacity to 40,000 bpd, nearly all of
their oil production capacity in southeast Saskatch-
ewan based on March’s numbers of 46,000 to 47,000
bpd. A full unit train of 80 cars carrying 600 bbl.
each has a capacity of 48,000. (Tankers usually carry
600 to 650 bbl. a piece.)
Th e bigger question is, why haven’t we seen an
even greater shift? Going back to my farm days as
a kid, you really didn’t have much choice in deliv-
ering your product.
Th ere might be two
or three elevators
in town, or you could drive your 3-ton seven miles
down the road for another option, but the result was
largely the same. You took what you got, or at least
that’s how it seemed. It was all shipped on the same
railroad, and went to the same ports – Vancouver or
Th under Bay.
Conversely, those same rails now allow oil pro-
ducers to entirely circumvent their restricted markets
before. Th e pipeline network only goes so many plac-
es. But the rail network goes almost everywhere. You
can ship to the Gulf Coast, or the Irving Refi nery
in New Brunswick. If New Jersey, which is currently
paying the $109 Brent price will give you a better
deal, you’re going to do a lot better than the price
you’re getting right now. It may cost more to ship by
rail than pipeline, but the return is well worth it.
Dean Weinrauf, director of southern operations
for Torq Transloading, told me “We keep having a
record month, every month.”
Th eir company has crude-by-rail transloading
facilities throughout Western Canada, and is in the
process of setting up a few more. Given a $32.50 dif-
ferential, I anticipate their phones are going to ring
off the hook.
Brian Zinchuk is editor of Pipeline News. He can be reached at [email protected]
Using crude-bt-rail to beat the differential
Will energy forecast scare us to act?
A8 PIPELINE NEWS January 2013
Page A5
Th ere are a lot of solutions on the horizon and
some in the immediate term – as we spoke of in
rail. Th ere will be a lot of work done in the next
year as well to fi nd effi ciencies and move projects
forward.
PN: Th e Canadian Association of Oilwell Drilling Contractors forecasts a six per cent drop in the number of wells to be drilled in 2013 in Canada. Will Saskatchewan buck the trend?
McMillan: I think in Saskatchewan we have a
very competitive environment for investing and for
drilling wells. Th e technologies that have opened
up the Bakken, the Shaunavon, and now the Vi-
king, continue to drive investment and create more
opportunity for industry to drill wells.
I think that drilling number may be accurate,
depending on what happens to the price of oil, but
Saskatchewan is very well positioned to see another
good year. Six per cent off would still leave us in
the top four or fi ve or six years ever in Saskatch-
ewan for oil activity.
PN: Do you see the weather being a challenge to drilling in 2013?
Th e weather has been a challenge in other
years. We live in a big province and it could be a
challenge again. From a government point of view,
when that sort of thing has happened, we’ve pro-
vided fl exibility to allow industry to get the work
done that it needed to if the timing didn’t quite
work out.
It’s the things, I think, that keep Saskatchewan
as a place where industry wants to do work.
PN: Land sales are considerably lower this
year than 2011 and 2010. Do you see that trend continuing into 2013 and is it a cause for con-cern?
McMillan: If the price of oil stays roughly
where it is today, I think we will have a very similar
year next year to what we’ve had this year. We saw a
substantial rush on land in 2008 and those com-
panies have fi ve years to bring their properties into
production or the land reverts back to the Crown
to be available for subsequent land sales.
Th at won’t be happening this year, but it will
next year. I think with all those factors taken into
account, we expect a similar year in land sales this
coming year to 2012.
PN: What can Saskatchewan can do to facili-tate the development of needed infrastructure?
McMillan: We have been very supportive of
all the major pipeline proposals and projects going
forward. Where we have had an opportunity to
push the political leaders on them, we have taken it.
As an immediate solution, our rail companies
are fully engaged and they are ramping up their
capacity substantially. Th at’s very important in the
short term as well.
PN: How will Saskatchewan benefi t the most if the Keystone XL line is constructed through the province?
McMillan: Th e true benefi t is driving down
the diff erential of what we are getting for our oil at
the wellhead compared to West Texas Intermediate
and compared to Brent. Th e long-term benefi t is
that this makes our industry more competitive.
Th e immediate impact will be the amount of
work that takes place in putting in 250 kilometres
of pipeline. Th ere’s a lot of work and employment –
hotels are full, restaurants are full so that’s impor-
tant – the taxation that goes along with a project
that big is good for the government.
PN: Cenovus purchased Oil Sands Quest’s assets for $10 million in 2012, including 59,000 hectares of leases in Alberta and Saskatchewan. Will other companies begin to explore Saskatch-ewan’s oilsands starting in 2013?
McMillan: We see that there are oilsands
properties on the Saskatchewan side of the border
that are on our December land sale. Th at, I think, is
a good sign.
We saw similar properties come on earlier in
the year, but in that case either there were no bids
after they were asked to be put on, or there were
bids that were not at a level considered to be ac-
ceptable to Energy and Resources. So they are up
there again and we will what kind of activity that
brings.
We think we’ve got a great resource there. As
time and technology change, we expect there will
be development. Whether it’s this coming year or
not, I couldn’t predict. Th at’s more industry driven.
Th ere is 27,000 square kilometres of oppor-
tunity on the Saskatchewan side of the border in
what would be considered oilsands type properties.
Th ere’s a big resource.
At some point, I suspect the interest will mate-
rialize into actual projects going forward.
Th e government continues to work very hard to
enable that to happen – going on recruiting mis-
sions to enable expediated immigration processes
and right here at home to make sure we are invest-
ing in appropriate training facilities, ramping up a
number of skilled trades positions.
Phone: (780) 875-0032 • Cell: (780) 214-7808 Fax: (780) 808-2273 • Email: [email protected]
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By Geoff Lee
North Battleford – Necessity is the mother of
invention. Th at philosophy is the driving force
behind the success of Grit Industries Inc. and the
mindset of company president and founder Wayne
King.
Th e company relocated its manufacturing base
to North Battleford this fall to focus on its boom-
ing cold weather technology product line of natural
gas line heaters and indirect fl uid light oil heaters
that are inspired by King.
Both products are derived from heat-driven
loop technology that King began to develop in
1999 to heat heavy oil tanks using their own vented
methane instead of a fi re tube.
“Th is is a technology that I have been de-
veloping for 10 years,” said King.
“Th e diff erence between this technology and
the previous technology, is that the previous tech-
nology would use a fi re tube that has a very poor
effi ciency, and to be frank, a very poor safety rating.
“A fi re tube maybe runs at 45 to 50 per cent
thermal effi ciency. Th is new device that we have
runs at 80 per cent thermal effi ciency.
“A fi re tube has a high fl ux rate, meaning the
skin temperature is about 1,200 F. Th e skin temper-
ature on this device is 200 F.
Page A10
Wayne King, president of Grit Industries Inc., shows o a prototype light oil heater being put into produc on as part of the company’s line of cold weather technology products. The indirect uid heaters are currently being sold in Saskatchewan, North Dakota and Montana. In the far right background is a prototype of a new heat exchanger for a ver cal heater treater. These prototypes were photographed at Grit’s new head o ce and welding shop near the Lloydminster municipal airport.
Hot sales for Grit’s cold weather line
A10 PIPELINE NEWS January 2013
Why CMBS?We build commercial and oilfi eld
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Canadian Modular Building Systems
Page A9“So therefore, what takes place
with a fi re tube is that because of the
high temperature, you are actually
fl ashing the water portion of the
crude oil to steam which leaves a salt
and silt deposit on the fi re tube.
“Our technology, because it has
a lower skin temperature, it does not
create that salt deposit and the heat
exchanger remains clean and unob-
structed for that heat transfer,” King
said.
Th e indirect fl uid heater is de-
signed to heat multi-tank or vessel
applications with signifi cant cost
savings in energy consumption and
effi ciencies.
Th e unit can easily be retrofi tted
to existing fi re tube throats and has
no moving parts, and does not require
electricity to operate.
When used to heat light oil tanks,
the technology upgrades oil to pipe-
line specifi cations safely with indirect
steam heating technology.
King’s original idea, however, was
to fi nd a way to heat a heavy oil tank
with just ounces of gas pressure versus
a fi re tube that consumes pounds of
gas pressure.
“I knew that my barbecue pro-
duced heat using 2 ounces of gas pres-
sure, so that’s what the challenge was
to come with a heating system that
consumed 2 ounces of gas pressure,”
said King.
Because the heating units Grit
developed were more expensive than a
fi re tube, industry chose not to use the
technology for the heating of heavy
oil on a wide commercial scale.
“When we discovered the heat-
ing of natural gas was very successful
using that same technology, it was one
of those ‘Eureka moments’ in product
development,” said King.
“In 2003, we partnered with
SaskEnergy and we developed the
natural gas heating systems that are
around North America today.
“It’s simple, it’s very functional,
it’s safe and it’s code compliant. Th at’s
where we are today.”
Natural gas needs to be heated
when pressure is reduced from gas
transmission pressure to distribution
pressure at regulation stations due to
the Joule-Th ompson eff ect.
“It’s called the refrigeration eff ect.
It’s the pressure drop that creates
cold,” said King.
“Th ere is a probe in the gas line
after the cut is made on the low pres-
sure side. It’s important to follow the
fl uctuating load and put just enough
heat into the load so the regulators
don’t freeze.
“What our technology does is to
follow the load, whereas the old tech-
nology would simply heat the load
based on the peak load of the day.
“Our unit keeps a constant
temperature and puts in just enough
energy to maintain the desired tem-
perature,” King said.
Grit Industries’ leading cold
weather natural gas heaters have
caught on with industry with their
improved thermal and combustion
effi ciencies and fuel savings.
Th e units are silent to operate and
are very safe and reliable as well.
Th e company has sold about
1,500 natural gas line heaters across
Canada and the U.S. ranging from
70,000 BTU to 750,000 BTU output.
Th e company is also fi eld testing
a 4.5 million BTU natural gas line
heater for natural gas distribution in
England for National Grid, an inter-
national electrical and gas supplier to
Great Britain and Northeast United
States.
“Th e technology we are de-
veloping for England, will at some
point in time, be introduced in North
America. We are developing the
futuristic model into Europe to be
proven,” said King.
Th e prototype heater in England
meets the European CE standard for
safety and emits only seven parts per
million of NOx emissions. Page A11
Brandan Carnell keeps his eye on some gauges while he test res this 770,000 BTU dry line heater in the cold weather manufacturing division of Grit Industries in North Bat-tleford.
Ounces of gas pressure instead of pounds
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Page A10“Currently, we are
developing a three mil-
lion and a fi ve million
BTU unit and combina-
tions of those units will
put us in the multiples
of fi ve, 10 and 20 million
BTUs,” said King.
“Th e development
of technology never
stops. Grit Industries is
a manufacturer that de-
velops new technology.
“We went from the
heating of heavy crude
oil to the heating of
natural gas for natural
gas utilities.
“So the technology
has matured and we
have adapted it to heat
light oil for processing
purposes.
“As you develop
new technology, part of
that product develop-
ment is making sure that
we comply with local
jurisdictional codes and
standards,” he said.
King said Saskatch-
ewan Energy and Mines
initially wouldn’t allow
Grit to install an indirect
fl uid heater in a light
oil tank citing, it was
against code to heat light
oil in a tank for treating
purposes.
“Th e code noted
you can only add heat to
a tank to allow it to be
transported,” he said.
“I said this is silli-
ness. We are increasing
the cost of the industry;
we are increasing the
number of loads that are
trucked down the road
and we are increasing
road repairs and the con-
sumption of fuel all for
unnecessary trucking.
“Th ey talked about
it and they came and
looked at our devices.
Th ey saw they were very
safe, much safer than a
fi re tube. Th ey said ‘okay
we agree. We will allow
you to put this system in
but only one.’
“Th at was two
years ago. We found an
oil company that was
interested. Th ey installed
the technology into
their production tank for
treating purposes and it
worked.
“As a matter of fact,
on that fi rst location,
there was a 60 day pay
out of the capital cost of
the equipment.
“Th en we applied
for another licence and
they granted it. By the
time we got to about
10, Energy and Mines
said they would give us a
blanket approval for the
technology,” King said.
Since then, the com-
pany has installed over
60 indirect fl uid heaters
in the Estevan, Elrose
and Kindersley area.
“Th e province of
Saskatchewan is light
years ahead of other
jurisdictions. Th e prov-
ince has recognized the
safety of these devices,”
said King.
Th e company re-
cently got the go ahead
to sell them into North
Dakota market for
treating purposes, with
Manitoba and Alberta to
follow.
“We are not only
able to heat light oil in
a tank we are now just
registering a new heat
exchanger to replace the
usage of a fi re tube in
vertical heater treaters
and pressure vessels,”
said King.
“Th ere are lots of
ideas and there’s more to
come.”
SaskEnergy is also
well on the path to
replacing its water bath
heaters with Grit In-
dustries’ natural gas line
heaters fuel savings of up
50 to 70 per cent in test
units.
“SaskEnergy must
be commended for their
forward thinking and
planning,” said King
who noted cold weather
technology continues to
sell even with the low
prices of natural gas.
“When natural gas
was at $7 a gigajoule –
now it is $2 – it took the
economics away some-
what, but industry has
still been on side.
“It’s not just the
natural gas fuel savings
industry is interested in.
Th ey are interested in
emissions reduction, in
safety benefi ts and the
quiet operation of the
heaters.
“Our technology is
silent.”
SaskEngery, Grit
Industries’ alliance
partner, is also using
cold weather technol-
ogy for the pre-heating
of natural gas at two of
SaskPower’s gas turbine
stations in Saskatch-
ewan.
“Th e industry has
shown that natural gas
has better combustion
at a certain temperature.
Th ey pre-heat the gas
before the gas goes into
the gas fi red turbine.
Our technology works
well there,” said King.
Other potential
markets for cold weather
technology are U.S.
hospitals and utilities
that are retrofi tting oil
burning furnaces to
natural gas furnaces
using high pressure gas
captured from shale gas
fracking and trucked to
location.
Wayne King, president of Grit Industries Inc., added this Panasonic MIG robo c welder to his new manufacturing shop in North Ba leford. The robot is currently welding re tube throats for produc on tanks.
A12 PIPELINE NEWS January 2013
PIPELINE NEWS January 2013 A13
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Story and photos by Geoff LeeMaidstone – Elliott Petroleum in
Maidstone manufactures and distrib-
utes an oilfi eld lubricant version of
Cold-FX to remedy the ill eff ects of
cold winter weather on engine and
hydraulic oils.
Th e engine health product is
called AFX and it is marketed as an
oil antifreeze that more and more
oilfi eld companies are turning to, to
keep their hydraulic equipment from
freezing up and breaking down in
cold temperatures.
“When you are dealing with cold
weather and the oil is so stiff and
doesn’t fl ow properly, you can blow
pumps apart, blow hoses off – seals go
off on pumps,” said Les Harper, presi-
dent and owner of Elliott Petroleum.
“It’s very hard to keep equipment
running in cold weather.
“Th e biggest problem is some-
thing called pour point, the tempera-
ture that oil stops fl owing. In other
words, it just literally becomes a glob
of hydrocarbons.
“Th e pour point is the critical
thing with cold weather operations.
You want the oil to keep moving.
“When you put AFX into hy-
draulic oils, the pour point is reduced.
You will maintain the viscosity, but
the pour point will be reduced to a
point where it can operate in lower
temperatures,” Harper said.
AFX can be added to existing oils
up to a 30 per cent mixture. AFX al-
lows oils to circulate faster at extreme
cold temperatures while maintain-
ing the same degree of lubrication at
operating temperatures.
A dose of AFX will keep the
hydraulic systems of equipment such
vacuum trucks, power tongs, loaders,
tractors and cranes running in tem-
peratures as low as -60 C.
“It will save a company in down-
time and just general equipment
maintenance,” said Harper whose
phone starts ringing when the tem-
perature plunges as it did in the fi rst
week of December.
“I had a fellow last night who
called. He had blown hydraulic lines
on a service rig and was looking for
an answer to his situation.
“When it is cold, metal is stiff and
that is when it becomes fragile. Noth-
ing is fi tting correctly any more. If the
AFX can reduce some of that stress
on hydraulic pumps, it can save you a
lot of money.
“It doesn’t break down. One ap-
plication pretty much takes care of
your hydraulic system unless you have
a spill or need to top up. Generally
speaking, it’s a one shot deal. Th at
makes it cost eff ective.”
AFX also contains special addi-
tives that are particularly eff ective in
assisting the control of engine sludge
and varnish at low operating tempera-
tures.
“AFX can be used in engine oil or
hydraulics, but we see a lot more use
in hydraulics than anywhere else,” said
Harper. Page A14
Les Harper, owner and president of Ellio Petro-leum, has the name of his best selling cold weather AFX “oil an freeze” for en-gine oil and hydraulic oil on the side of his truck parked at the Maidstone shop. Harper is also president of the Lloydminster Rotary Club and sits on the board of Habitat for Humanity in Lloydminster.
Take cold AFX for ‘hydraulic u’
A14 PIPELINE NEWS January 2013
One Call Will Supply It All
Page A13“Anything that has a hydraulic lube in it – AFX works very well. It shines
in equipment that’s been used outside – tractors, loaders, vacuum trucks – they
all do very well with AFX.”
Elliott Petroleum makes a variety of custom engine oil, gear oil, hydrau-
lic oil, summer oil and cold weather lubricants at the Maidstone shop. Th is
includes a popular semi-synthetic oil for pumpjack engines.
“It is exceptional for its service interval,” said Harper. “Some of our client
companies literally extend the service life of that oil to twice they would with
other oil.
“It’s a very popular product that outlasts some of the components on the
engine. Some change it out for 0W40 in winter operation and some just use it
year round. It’s exceptional and it’s got a lot of support.”
Elliott Petroleum’s forte is its ability to custom blend just about any type
of oil or lubricant for oilfi eld, industrial or agricultural applications in smaller
quantities that larger manufacturers won’t touch.
“We can do anything with oil. If a customer has a problem and brings it
to us, with the work of our chemist, we can make oil that can deal with any
problem,” said Harper.
“We are a custom shop. It’s isn’t something that we produce millions of
litres of like some of the bigger companies. We can custom blend to customer
needs.”
Elliott Petroleum is also selling a lot of its cold weather diesel fuel condi-
tioner it calls Dragon Juice, which adds lubricants to new low sulphur diesel
fuel.
“Sulphur is a great lubricant and if it’s not in the fuel, you don’t have it,”
said Harper.
“Injection pumps tend to wear out a lot quicker, so we’ve added that ‘lu-
bricity’ component into our fuel conditioner.
“It also has a wax dispersant that helps for cold weather operation, so the
diesel fuel isn’t gelling or thickening up and plugging the fi lters and shutting
your system down.”
Harper knows a lot about oil and fuel as for 21 years he and his wife
owned and operated Little Dipper Holdings Ltd., an oil recycling company in
Lloydminster.
Page A15
Les Harper bought Ellio Petroleum in 2006 and is see-ing steady organic growth year a er year thanks to word of mouth endorsements for his unique blends of oil and lubricants for cold weather hydraulic equipment.
Additive helps in cold
PIPELINE NEWS January 2013 A15
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Page A14Little Dipper took used oil collected from sources such as oilfi eld trucking
companies and processed it into a diesel fuel replacement that was sold through-
out Alberta and parts of Saskatchewan.
Th e Harpers sold their company in December 2007 after buying Elliott
Petroleum in February 2006 and putting it on a solid footing.
It was founded by Walter Elliott in the 1970s. He sold it to a publicly-traded
company that shut it down in 2006 when Harper stepped up and bought it and
kept the well known Elliott name.
“When I heard they were going out of business, I was very surprised, and I
saw the potential to keep the products going,” said Harper who runs the business
from his home offi ce in Lloydminster.
Th e manufacturing and distributing base is located at the Maidstone airport
where old hangars serve as a blending shop and a warehouse for products that are
sold by word of mouth.
“We don’t advertise a lot. Th ose who have used our product talk about it, and
in turn, it’s a gradual progressive growth of the company,” said Harper.
“Every year we are growing. We will just extend our markets and our dis-
tributorship to keep the product going out the door and keep some nice organic
growth happening.
“Th e market potential is enormous. It’s just a matter of slowly growing it and
keeping our customers happy at the same time.”
Harper’s brother-in-law, Bob McFadden, manages the day-to-day operations
in Maidstone with help from shop worker Yohanes Afeweki who helps to fi ll
customer orders.
“We are busy. Th ere are not many days when something isn’t going some-
where. Not everything goes out in tanks and big loads. It’s literally a gallon at a
time,” said Harper.
“We ship it as small as a four-litre jug.”
One of Elliott Petroleum’s newest cold weather products is a heavy duty
Global Premium Antifreeze 50/50 blend that is selling like proverbial hotcakes
this winter.
“Th e global antifreeze is quite unique. Instead of having diff erent antifreezes
for diff erent types of equipment, the global antifreeze is good for anything from
a small engine to heavy duty trucks and all automotive applications,” said Harper.
It is yellow in colour to blend in with any existing antifreeze and it contains a
bittering agent to prevent animals or children from ingesting it.
“We have gone through a lot of our global antifreeze since we’ve introduced
it this spring. It’s been a good product for us,” said Harper.
Shop manager Bob McFadden uses a forkli to deliver this pallet of heavy duty Global Premium An freeze 50/50 blend to the warehouse at Ellio Petroleum’s manufactur-ing and distribu on base at the Maidstone airport.
Ellio Petroleum manager Bob McFadden loads a box of four-litre jugs of Global Pre-mium An freeze 50/50 Blend into a packing box at the company’s blending and pack-aging shop in Maidstone.
A16 PIPELINE NEWS January 2013
Phone: 780.614.2113Phone: 780.614.2113Fax: 780.614.2115Fax: 780.614.2115
Luc Cell: 780.210.0635Luc Cell: 780.210.0635email: [email protected]: [email protected]
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Kenilworth Combustion Main Offi ceContact Heine Westergaard 1-780-744-3974
Nomad Electric in Northern AlbertaContact Clint Ferriss 1-780-624-2447
Pronghorn Controls in Southern and Central AlbertaContact Stan Neu 1-403-501-4895
CCR Combustion in East Central AlbertaContact Kevin Moan 1-780-872-0706
MAIN OFFICE 1-780-744-3974 FAX 1-780-744-2242
www.kenilworth.ca
Troy Illingworthcell: 780-205-1858
Tim Sharpcell : 780-871-1276
Offi ce: 780-847-4666Fax: 780-847-4661
Box 82 Marwayne, ABWelders, Service Crews, Lease Mowing
& Bobcat Service
By Geoff Lee
Calgary – Husky Energy Inc. held
its own version of a Black Friday sale
with a Dec. 4 investor day presenta-
tion in Toronto that off ered plenty of
reasons to buy into the company’s fi ve-
year growth plans to 2017.
For starters, thermal heavy oil pro-
duction focused in the Lloydminster
area is expected to grow to 55,000 bar-
rels per day by 2017, more than double
the 24,000 bpd reported in the second
quarter of 2012.
Th e increased production will
result from four thermal projects
planned to come on stream, including
the 3,500 barrel per day Sandall project
which is now under construction.
Husky is targeting an annual com-
pound growth rate for its 2012-2017
planning period of fi ve to eight per
cent and is on target to achieve a previ-
ous fi ve year growth goal of three to
fi ve per cent year over year set in 2010.
Total global production in 2013
is expected to increase to between
310,000 to 330,000 barrels oil equiva-
lent per day over an estimated year end
production of 301,000 boepd in 2012.
“We have consistently executed
against our strategy for nine consecu-
tive quarters,” said Husky CEO Asim
Ghosh in a Dec. 3 operational update
and investment forecast.
“Th is performance is a result of
strong delivery and reliability in all
business segments and our focused
integration strategy.
“Our major growth projects in
Asia Pacifi c, the oilsands and the
Atlantic Region are progressing and
continue to meet their milestones.
“Th e rejuvenation of our founda-
tion in heavy oil and Western Canada
is also well underway with increased
production from heavy oil thermal
projects and an emerging focus on oil
resource plays.”
Husky’s 2013 capital expenditure
budget of $4.8 billion is similar to the
$4.7 billion program in 2012 with 50
per cent of upstream spending to be
directed to the company s growth pil-
lars in the fi ve year plan.
In 2012, Husky allocated approxi-
mately $1 billion on upstream capital
investments in Western Canada in
2012.
Husky has sanctioned the Rush
Lake heavy oil thermal project in the
Lloydminster area with an increased
production capacity to 10,000 bpd
compared to the originally planned
8,000 bpd. First oil is expected in 2015.
Th e decision to increase the pro-
duction capacity at Rush Lake is based
on the results of single well-pair pilot
at Rush Lake that is producing ap-
proximately 1,000 bpd of heavy oil.
Another operational highlight of
2012 was the completion of site grad-
ing at the 3,500 bpd Sandall thermal
development that remains on track for
commissioning in 2014.
Th e 8,000 bpd Pikes Peak South
and 3,000 bpd Paradise Hill thermal
projects came online ahead of schedule
in 2012 with production levels ap-
proximately 40 per cent higher than
their design rates by Dec. 3.
Page A18
Husky to double thermal by 2017
The Pikes Peak South thermal project achieved rst oil in the second quarter of 2012 thanks in part to these eld steam generators. Husky is planning four new thermal projects by 2017 including the 3,500 bpd Sandall project now under construc on in the Paradise Hill area. Photo submi ed
A18 PIPELINE NEWS January 2013
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Page A17
Th e Pikes Peak South ther-
mal project achieved fi rst oil in the
second quarter and reached its 8,000
bpd design rate within two months
with production at approximately
11,000 bpd by December.
Th e Paradise Hill thermal proj-
ect achieved fi rst oil in the second
quarter of 2012 with production
at approximately 4,600 bpd at the
beginning of December beyond its
3,000 bpd design capacity.
Also in 2012, production from
horizontal wells reached 8,000 bpd.
Th irty-one well pads were added in
2012 and 125 wells were drilled.
Husky also completed its new
carbon dioxide capture and lique-
faction project at the Lloydminster
ethanol plant in 2012.
Carbon dioxide from the plant
is captured and used to enhance oil
recovery in nearby reservoirs. Th e
innovation provides a double benefi t
by allowing more oil to be recovered
while reducing CO2 emissions.
Husky expects to head into
2013 having drilled more than 260
CHOPS (cold heavy oil production
with sand) wells drilled in 2012 and
more than 300 recompletions in new
zones.
CHOPS production was approx-
imately 53,000 bpd by the investor
day in December.
Husky also continues to move
forward with the transformation of
its foundation in Western Canada
with the focus on six oil resource
plays including the Bakken, Viking,
Cardium, Lower Shaunavon, Rain-
bow Muskwa and the Slater River
Canol in the Northwest Territories.
At Slater River, applications have
been fi led to construct an all-season
access road to support further devel-
opment.
Evaluations will continue this
winter on two vertical wells drilled
during the previous season. Develop-
ment of the liquids-rich gas Ansell
play will continue in 2013 with 17
wells expected to be completed by
the end of the 2012.
In addition, initial production
tests were conducted on the Kaybob
Duvernay play, delivering strong
liquids yields.
Meanwhile, the fi rst phase of
Husky’s Sunrise Energy project in
the Athabasca oilsands achieved
its major construction milestones
according to plan and remains on
schedule for fi rst oil in 2014.
All signifi cant contracts for the
$2.7 billion cost estimate of Phase
1, including the central processing
facility, have now been converted to
lump sum payment.
Over 85 per cent of the project’s
costs are now fi xed and the project is
more than 50 per cent complete.
Th e planning design and engi-
neering of the next phase of Sunrise
continues with regulatory approvals
in place for up to 200, 000 barrels
per day of bitumen production with
Husky owning a 50 per cent working
interest.
A fi ve-year contract has been
awarded for the new-build harsh
environment semi-submersible drill-
ing rig, West Mira, to support the
Husky’s exploration and develop-
ment opportunities in the Atlantic
Region.
In Atlantic Canada, work con-
tinued in 2012 in anticipation of
sanction of the South White Rose
Extension project with the excava-
tion of a subsea drill centre. First oil
is expected in 2014.
In other operational news, Husky
has made four new gas discoveries on
the Madura Strait Block. Th e discov-
eries are being evaluated for potential
tie-in to existing nearby infrastruc-
ture.
Th e Liwan Gas project in the
South China Sea remains on sched-
ule for fi rst gas in late 2013/early
2014. Th e overall project is now ap-
proximately 75 per cent complete.
On the downstream front, Husky
expanded its storage capacity at
Hardisty in 2012 with the comple-
tion of a 300,000-barrel storage tank
that will improve the company’s
ability to take advantage of pricing
opportunities.
Th e spring turnaround at the
Lloydminster upgrader paid off with
record monthly production in the
second quarter of 2012.
This is a row of pumpjacks at the Pikes Peak eld in the Lloydminster region. Husky expects to double its thermal produc on of heavy oil in the area by 2017.
Photo submi ed
Pikes Peak South reached 8,000 bpd
PIPELINE NEWS January 2013 A19
Story and photos by Geoff Lee
North Battleford – Th e city of North Battleford
will celebrate its 100th anniversary in 2013 with a
fresh outlook based on a diversifi ed economy, and at
least one surprising business connection to its past
and future.
Grit Industries Inc., which recently relocated
its manufacturing base to North Battleford, never
would have existed without the Dominion Land
Act’s free land off er for homesteaders in 1905 when
Saskatchewan became a province.
Wayne King founded the company in the
1980s in Lloydminster, Alberta where his great
grandfather A.G. King, from Philadelphia, arrived
on horseback via the Canadian Northern Railway
from Winnipeg to North Battleford to claim a
quarter section of land.
Today, Grit’s new offi ce complex in Lloyd-
minster sits on some of the half section of land his
grandfather eventually farmed and is not far where
Wayne grew up.
Personal stories like this are bound to be told
throughout the year as the city starts its 365 day
centennial party on New Year’s Eve with the slogan
“Th e Past is Told. Let the Future Unfold.”
Th e city has budgeted $150,000 to celebrate
its centennial year with seven events including the
May 1 birthday party, the date North Battleford
became a city in 1913.
“Th e centennial provides us with an opportuni-
ty to showcase what north Battleford has become,”
said Mayor Ian Hamilton.
“We certainly celebrate our past, but our eyes
are on the future.
“Th e more interest we generate in North Battl-
eford, the more people are going to recognize what
we have to off er. I can’t think of a better place for
industry to relocate to. It’s the hub of the north-
west.
Page A20
100 year party starts in North Battleford
The sweeping is fast and furious at the newly-opened Northland Power Curling Centre. The rink is one of four new recrea on and arts facili es in the $50 million Credit Union CUPlex that has become a magnet for growth with the city celebra ng its 100th anniversary in 2013.
A20 PIPELINE NEWS January 2013
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Page A19“We have amenities that are second to none and we lead in a lot of areas,”
Hamilton said.
Th e centennial family day and New Year’s Eve party was scheduled to take
place in the newly opened Battlefords Tribal Council fi eld house that is part of
a $50 million Credit Union CUPlex development completed in 2012. How-
ever, the venue was changed to the Civic Centre, as construction of the fi eld
house was delayed.
Th e development, which is already providing a major economic impact,
includes the Battlefords Co-op Aquatic Centre, the Dekker Centre for Per-
forming Arts and the Northern Power Curling Centre.
“It’s huge. I don’t know how we are going to measure that. Already the
aquatic centre attendance is tenfold,” said Denis Lavertu, director of business
development.
“I think that’s going to play an integral role in employment and helping
employers sustain their employee levels.”
Th e CUPlex is also the driving force behind a new tourism organization
that was formed to create and market sports events in concert with the new
Battlefords Hotel Association.
Th e nonprofi t group from the Town of Battleford and North Battleford
has added a destination marketing fee on every room to fund sports tourism as
a new industry.
“So it’s more tournaments and more events and more conferences and
conventions using those facilities,” said Lavertu.
“Th e city and the town are working together on a new tourism model.
Th at’s going to bring a lot of economic impact to the community as well.”
Available year-to-date building permits stood at more than $42 million
at the end of October and compare favorably with the $70.5 million for total
permits in 2011 that included $50 million for the CUPlex.
“We don’t see it slowing down. A lot of developments are in the works and
up and coming,” said Lavertu.
“I think 2013 is going to be another strong year for commercial and indus-
trial development.”
Fittingly during the centennial of the existing hospital, construction is
expected to begin in 2013 on a new $100 million Saskatchewan Hospital.
“Th at’s going to be a major construction project probably over the next couple
of years,” said Lavertu.
Construction is also expected begin any day on a new tank manufacturing
plant by Leading Manufacturing Group. It will be located on the west side of
Battleford.
Allstar Energy Ltd. is also poised to step up its heavy oil drilling explora-
tion in 2013 on Red Pheasant First Nation leases south of the Battlefords.
Th e entire region is also excited over the long term prospects of a 5,000 to
10,000 barrel per day steam assisted gravity drainage application by Rallyemont
Energy Inc. at Prince, which is located 20 kilometres north of the city.
Page A21
CUPlex integral to attracting people
PIPELINE NEWS January 2013 A21
Lloydminster Citizens On Patrol
Check Us Out At www.lloydcops.com
Be A Part Of The Solution
For all our info and an Application
to download Requirements are
-Security check, training, and 5 hrs on
patrol a month.
Help with crime prevention
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Page A20In order to reduce the number of new businesses
or industries that are too sensitive to supply and
demand fl uctuations, economic diversity is a goal.
“Industrial growth for me is the main focus be-
cause that’s where we see our sustainable future is in
creating more industrial jobs. We want to make sure
we are diversifi ed,” said Lavertu.
“We are targeting a number of industries rather
that just resource-based ones because of the volatility.
“We want to make sure we have jobs all year
round in an industrial area that will take those trades
and skilled workers and bring them to our commu-
nity.
“We want to increase our income levels in the
community as well.
“Grit Industries is a perfect fi t for that. Th ey are
not just oil industry. Th ey are into utilities and are
very diversifi ed.
“So trucking and warehousing and things like
that – we are targeting diversifi cation rather than just
being an oil and gas town,” Lavertu said.
Agriculture was the key industry during North
Battleford’s formative years and continues to be an
ace in the diversifi cation deck, with the new $12.6
million Canada Feed Technology Research Facility.
Other mega projects such as the completed $250
million Yellowhead Power Station by SaskPower
and the nearly completed $750 million North Power
project are fuelling a strong demand for new housing
– and rising prices.
“Because housing prices have escalated quite a
bit in the past number of years, we are starting to see
a lot of redevelopment in some of our older neigh-
bourhoods,” said Lavertu.
“We will still have some steady housing projects
too.”
By November 2012, there were $17.8 million in
permits for 112 condo units, $3.8 million for new
detached houses and $900,000 for eight apartment
units among other residential construction projects.
“Th ere’s just so much happening. We are get-
ting a lot of development interest downtown which
is great. I think over the next six months we’ll see
some great investments downtown,” said Lavertu.
Th e centennial spirit could also bring a forth
a buyer for the Maple Leaf Foods plant that will
close its doors on March 31.
Fingers are crossed that new employment
opportunities will be available for the 300 hourly
employees who will lose their jobs.
“I don’t think there’s a buyer in the wings, so to
speak, but the property has been listed with Colliers
in Saskatoon, a commercial realtor,” said Mayor Ian
Hamilton.
“Th ey are certainly actively seeking buyers and
or people with interest in the property.
“I do believe what’s happening in North Bat-
tleford is very conducive to peaking interest in our
community. I think it’s an opportunity for someone
to come in, whether it’s manufacturing or some sort
of interest like that.
“We have the interest, we have the population,
the amenities, and we have the workforce. We’ve
shown that through other ventures like Grit Indus-
tries relocating to North Battleford.
“We can’t say enough about them. It’s an in-
novative company. Th ey are doing some unique and
innovative things,” said Hamilton
Th at’s the kind of optimism that’s refl ected
in a centennial logo with its stylized water tower
surrounded by a sunburst eff ect to refl ect the com-
munity’s energy and optimism for the city’s next 100
years.
Who knows, maybe some more of that free land
will be available in 2013.
Mrs. Claus, also known as Wendy McGuinty, performed as Santa’s wife during the Xmas Show and Story Time performance Dec. 9 at the new Dekker Centre for Per-forming Arts in North Ba leford.
4006 50th AveLloydminster, AB
780 875 4800
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Edmonton – Alberta’s Energy Resources Con-
servation Board (ERCB) is seeking feedback on its
draft directive on sub-surface fracking issues related
to the oil and gas industry in the province.
Th e ERCB plans to issue a regulatory direc-
tive on fracking based on feedback it receives on
proposed requirements for hydraulic fracturing
activities.
Th e draft directive is based on ERCB’s review
of the challenges and opportunities related to the
use of hydraulic fracking in combination with hori-
zontal drilling in the development of Alberta’s con-
ventional and unconventional oil and gas resources.
Hydraulic fracking refers to the procedure of
creating fractures in rocks and rock formations
by injecting a mixture of sand and water into the
cracks to force underground to open further.
Th e larger fi ssures allow more oil and gas to
fl ow out of the formation and into the wellbore,
from where it can be extracted.
Fracking throughout North America has raised
environmental concerns ranging from possible
contamination of groundwater and stress on exist-
ing water supplies to issues over the management of
wastewater and disclosure of fracking chemicals.
Th e draft directive on fracking provides clar-
ity on preventing inter-wellbore communication
impacts, and ensuring well integrity.
It also sets out requirements for wells com-
pleted in shallow zones, which apply to any depths
shallower than 100 metres below the base of
groundwater protection.
Public feedback on the directive will be ac-
cepted until Jan. 18, 2013.
Th e draft directive will build upon regulations
to address potential risks of fracking activities iden-
tifi ed by the ERCB review.
Surface impacts related to hydraulic fracturing
activity will be addressed in the months to come.
ERCB takes feedback on frack draft
By Richard Macedo
(Daily Oil Bulle-tin) – After a promising
start to the year, the
Manitoba govern-
ment's land sale revenue
fell precipitously, and
the province fell short
of breaking its yearly
record for land sale
revenue, which was set
in 2011.
Th e oil-prone
province held its fourth
and fi nal land sale of the
year in mid-November,
taking in $178,515 on
2,384 hectares at an
average of $74.88. Th e
November sale in 2011
produced $3.04 mil-
lion in bonus bids on
5,292.87 hectares at an
average of $573.86.
For the full year
in 2012, the govern-
ment was able to attract
$11.31 million in bonus
revenue as 19,433.18
hectares were sold at
an average price of
$581.84. Most of the
bonus revenue came
from the fi rst sale of the
year, which drew $8.02
million.
Th e annual tally
fell short of 2011's
watermark of $13.14
million. Th e province
sold 23,090.90 hectares
in 2011 at an average of
$569.04.
Highlights of the
Nov. 14 sale includ-
ed Newalta Corpora-
tion paying the highest
price per-hectare for
a parcel located in the
Waskada area. Th e fi rm
paid $1,250.31 per
hectare and a bonus
of $20,005 for the
16-hectare parcel. It
included legal subdivi-
sion eight of section 30
at 1-25W1.
Th e land sale bonus
high bid was tendered
by Fort Calgary Re-
sources Ltd., which paid
$52,055 for a 768-hect-
are lease. Th e com-
pany paid an average of
$67.78 for sections 28,
29 and 32 at 13-29W1
Th e next Manitoba
sale will be held on Feb.
13, 2013.
Manitoba's short of breaking land sale record set in 2011
A24 PIPELINE NEWS January 2013
By Geoff LeeLloydminster – Cold heavy oil production with sand, or CHOPS, can be
tripped up by high concentrations of sand leading to torque issues, equipment
wear and high well servicing costs.
Baker Hughes has developed an upstream chemical solution to help lift
sand and reduce pump torque in horizontal and vertical CHOPS wells.
Th eir new WAW3939 sand suspension and torque reduction chemistry was
the subject of a presentation at the November luncheon of the Lloydminster
Society of Petroleum Engineers at the Days Inn.
Speaker Larry Sartori, a continuous improvement technical manager from
Baker Hughes’ chemical service facility in Calgary, said 3939 is a cost-eff ective
solution for sand and torque issues in producing CHOPS wells.
“Th at’s the name of the game to get the oil out of the ground cost eff ec-
tively,” said Sartori who is a chemical engineer.
“With the price fl uctuations you see in the market – the heavy oil dif-
ferential – if you can do it cheaper and make more oil, it keeps customers and
producers producing longer.”
WAW3939 is formulated with compounds that are attracted to inorganic
solids like silt and sand.
When enough of this material is bound to these solids, they tend to be-
come more buoyant in the heavy oil and are produced out of the tubing rather
than accumulate above the pump.
“Essentially, it emulsifi es the sand that is produced downhole and brings it
up, so it alleviates those concerns,” said Sartori.
“With regards to torque, there is chemistry involved within the chemistry
itself that allows the inside surface of a tubing string to become ‘water wet’ so it
can reduce torque in that well.”
Lower torque and sand removal can reduce well servicing costs and the
need for well loading, fl ushbys, coil tubing units and service rigs.
Th ere is also less equipment wear on bottom hole pumps and surface hy-
draulics.
“Essentially, it will allow the producer to increase the rpm in the well so
they can actually speed up the well, so they can make more production which is
the name of the game,” said Sartori.
Th e case history wells that Sartori talked about in the Marwayne, Elk
Point and Lashburn areas had annual revenue gains from around $300,000 to
$850,000 a year following the 3939 treatment.
In one high workover rate well in the Elk Point area treated with the 3939
chemistry, oil production increased by 1.2 cubes a day while cutting the work-
over rate from 66 per cent to 26 per cent.
Net revenue increased from $17,140 to $42,590 a month for a $305,400
annual gain.
A Lashburn well with high torque issues that prevented operators from
increasing the rpm, yielded a production gain of 8.7 cubes of oil a day with the
chemical treatment.
Th e net revenue on that well jumped to $73,770 a month or $885,200 an-
nually
“It is very cost-eff ective. What we’ve found it that for a nominal cost is that
they recover those costs pretty quickly. If you pick a candidate well, it’s a no
brainer,” said Sartori.
Page A25
Baker Hughes proves CHOPS chemistry
Page A24
“Candidate wells
are experiencing high
torque, high workover
issues – if you are doing
a lot of well loading
and a lot of fl ushbys or
any rig work at all.”
An ideal well for
the 3939 treatment has
between 15 and 70 per
cent water and from
one to 35 per cent sand
content – with a mini-
mum 10 per cent water
content.
“Generally, you
need a suffi cient
amount of water to
help with the friction
reduction properties
of the chemical,” said
Sartori.
Torque and sand
issues can be treated
through continuous
batch/slug injection
methods without the
need for overfl ush or
continuous addition of
water.
“Ideally, the Cadil-
lac operation is to inject
this stuff continuously
down the backside of a
well, down the annulus
through that column of
oil, such that it gets to
where the problem is,
which is at the bot-
tom of the well,” said
Sartori.
“Th e chemical is
weighted so that it will
fall through a column
of oil on the backside of
a well.”
Intermittent severe
sand production may
require batch and
continuous applications
or the addition of load
fl uid (well load).
“In horizontals,
it’s a diff erent applica-
tion. You end up having
to apply it with load
fl uid in order to get it
to work properly,” said
Sartori.
Baker Hughes cur-
rently has six chemical
application trailers in
its fl eet that will rent
for a daily rate begin-
ning Jan. 1.
“You will know
within a couple of days
whether the chemical is
going to work or not,”
said Sartori.
“Th is self-contained
unit has chemical tanks,
a chemical pump, a
controller pump and an
injection string – every-
thing you need to get it
into the well.”
Baker Hughes
launched the
WAW3939 in mid-
2011, but its develop-
ment dates back to
1971 with the initial
version of a torque
reduction product, fol-
lowed by sand suspen-
sion chemistries in
1991.
Today, the company
has a suite of produc-
tion chemistries rang-
ing from demulsifi ers
and water clarifi ers to
scale inhibitors and
fl occulants.
Baker Hughes
spent approximately
$462 million in re-
search and develop-
ment in 2011, including
including heavy oil
chemistries for cyclic
steam stimulation,
steam-assisted gravity
drainage, conventional
heavy crudes and other
related chemistries.
Th e company has
fi eld offi ces and ware-
houses in 34 locations
across Canada.
In Lloydminster,
the company plans to
consolidate its four
locations into a new of-
fi ce and shop that could
be completed by the
end of 2013.
PIPELINE NEWS January 2013 A25
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Lloydminster SPE member Denis Blaquierie, le , presents Larry Sartori with a gi for being the guest speaker at the November luncheon at the Days Inn.
A26 PIPELINE NEWS January 2013
SEWEURODRIVE
www.kelro.com
Story and photos by Geoff LeeWainwright – Don’s Speed Parts in Wainwright,
the 2012 Canadian Arctic Cat Snowmobile Dealer
of the Year, got off to a good sales start this season
thanks to early winter conditions that are sticking
around.
Snow and cold weather boost the demand for
parts, sales and service of Arctic Cat sleds, side-by-
sides, ATVs and Arctic Cat clothing and accesso-
ries at the dealership.
Don’s Speed Parts also sells cold weather
Honda power equipment, Triton trailers and Suzuki
ATVs from its location on Highway 14.
“No question, sales are very good at this time of
the year – better than a lot of years when there is no
snow,” said company owner Don Kinghorn on Nov.
28 as a storm front was roaring in.
“We are running behind. I attempt to keep
within a week, and we are probably two and a half
weeks behind on service. Th at’s having four me-
chanics going full time.
“We do a good job with snowmobiles – that’s
our big business. Whether it snows or not – a lot of
people will go to the mountains.
“It’s steady until spring with sleds. Over the
past fi ve or six years, we have probably sold over
300-plus sleds a year.”
Last year when there was little snow on the
ground, the dealership sold about 250 sleds includ-
ing 20 to 30 sleds sold in March to customers in
the Arctic as their daylight hours lengthen.
“We would probably only sell about 20 per cent
locally and the other 80 per cent as in Fort Mc-
Murray or Edmonton or the High Arctic – some
place other than here,” said Kinghorn.
“I would say 80 to 90 per cent of my business is
repeat business. Customers keep coming back.”
Kinghorn has a staff of 16 employees including
daughter, Chyna Wilkins, who manages the store
and his other daughter, Whitney Meyberg, who is
in charge of advertising and promotions.
With between 250 and 300 dealers in Canada,
Don’s Speed Parts has been named top Arctic Cat
snowmobile dealer seven times since 1993 includ-
ing four out of the last fi ve years.
Th e award is based on sales, customer service,
technical training and participating in Arctic Cat’s
World Class Store program.
“When you are strictly dealing with Arctic Cat,
we do a huge volume in parts and a huge volume of
clothing. It’s all OEM (original equipment manu-
facturer) stuff ,” said Kinghorn, who lives on a farm
just north of town.
Kinghorn was born and raised in Wainwright
and started the business in 1980 after working for
eight years in a variety of oilfi eld jobs, following in
the footsteps of his dad who operated oil wells for
30 to 40 years.
His fi rst job was with Flint Energy in Lloy-
dminster when he was a 17-year-old student. He
fi nished school in 1972 and headed to Swan Hills,
Alta., where he lasted for just two weeks on a ser-
vice rig.
“I didn’t like it too much so I went to work for
another company in construction in Swan Hills,” he
said in a nutshell version of his resume.
After awhile, he was hired by Knight Measure-
ment & Controls, working between Swan Hills and
Whitecourt.
“In Whitecourt, I was up in bush country
working in the oilpatch for about four years,” he
said.
“Th en I went to the sheet metal union in Ed-
monton and got my journeyman sheet metal ticket
and was working in Fort McMurray at Syncrude,
building the powerhouse up there,” said Kinghorn.
Page A27
Oil bucks drive Arctic Cat sled sales
Chyna Wilkins and her dad, Don Kinghorn, who owns Don’s Speeds Part stand at the base of “Mount Oil,” a product display of snowmobile oil.
PIPELINE NEWS January 2013 A27
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Page A26“Th ere is lots of oil
in Alberta and Sas-
katchewan’s huge. Th ere
is a lot of money in
Alberta,” said Kinghorn.
One thing led to
another and he returned
to Wainwright – and 32
years later the oil indus-
try continues to drive
his store sales in Alberta
and Saskatchewan, both
directly and indirectly.
“We do a lot of
business in Fort Mc-
Murray and Edmonton
and it is all oilfi eld
related.”
Don’s Speed Parts
sells a variety of Arctic
Cat sleds, mainly for
recreation, as well as
some for work purposes
including the Bearcat
for oilfi eld and outdoor
work.
“Th ere is a certain
market for that, of
course. Surveyors and
guys like that want
snowmobiles because
they are out all the
time,” said Kinghorn.
“Some of the oil
companies, when there
is too much snow and
the roads aren’t plowed,
they come in and they
rent product from us –
utility vehicles and stuff
like that.
“Th e majority of the
business is recreation.”
Kinghorn is count-
ing the days to Jan. 26
when he hosts an-
other pumpjack char-
ity snowmobile ride to
raise money to restore a
1923 wooden pumpjack
displayed at Petroleum
Park across the highway
from his shop.
“Four years ago we
decided to start rais-
ing money for it,” said
Kinghorn.” It will all be
completed next year.
“Our goal was to
raise $100,000 and we
surpassed that. We are
still raising money so
we can put lights on it,
and do the landscaping
around it. Any money
we raise goes to the
town for Petroleum
Park.”
Last year’s ride
was scrubbed for lack
of snow, but about 200
riders are expected to
convene at Don’s Speed
Parts in January for
the 20 to 30 mile ride
through the country.
No doubt, some
riders will hit the trail
wearing Arctic Cat
clothing or new upscale
Klim snowmobile wear
that is now in stock at
Don’s.
“We just got the
Klim clothing in, but
up until now we’ve only
ever sold Arctic Cat
clothing,” said King-
horn.
“Arctic Cat makes
very good clothing,
helmets and gloves and
boots. Page A28
Zane Kloberdanz, who works in the parts department, takes dozens of calls a day. Don’s Speed Parts stocks a large inventory of snowmobile parts for quick service turnarounds. Don’s also ships parts to other dealers.
A28 PIPELINE NEWS January 2013
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Page A27
“If people are warm and dry, they enjoy the
sport. If you are out and you’re wet or you’re cold,
you’re not having fun.”
Don’s Speed Parts also carries a huge inventory
of parts for Arctic Cat snowmobiles and ATVs in
order to make for quick service turnarounds.
“A lot of other dealers, when they need a part,
they order it in whereas we stock it. In the big pic-
ture we have a lot of dealers that buy parts from us,”
said Kinghorn.
“Somebody brings a sled in and they don’t want
to wait three or four days for the part – they just
phone us and we ship the part.
“If it’s snowing and they wreck their sled, they
want it fi xed the next day, so you have to have
parts.”
Don’s Speed Parts assembles and stores sleds
and recreational vehicles at a nearby separate shop
then moves them into an outdoor showroom tent at
the retail store where they are sold.
Oil and gas companies are frequent buyers of
the Arctic Cat Prowler side-by-side equipped with
a 500 cc or 1000 cc engine.
“We sell of them to the oilpatch every year. For
oil companies to check wells, it’s easier than using
your $50,000 truck to bounce down the road,” said
Kinghorn.
“Th ey are friendlier on the terrain. We’ve been
selling them to companies like Penn West and
Husky Energy and companies like that.
Th e Suzuki ATV is popular with area farmers
or for plowing snow.
“An awful lot of people buy an ATV and buy
a dozer for it, so they plow their driveway with it
rather than starting a big tractor. It’s a lot easier to
use a small unit and it does it just as quick,” said
Kinghorn.
When spring and summer roll around, Don’s
Speed Parts sells Suzuki motorbikes, quads and
Club Car golf cars among other products, but snow
is currently on the minds of customers and em-
ployees.
“We like snow. Snow is always a good thing.
Mind you we like rain too, in the summer because
if the farmer’s got money, then everybody’s got
money,” said Kinghorn.
Checking wells with a side-by-side instead of a truckChecking wells with a side-by-side instead of a truck
A hooded Don Kinghorn stands by this new Arc c Cat Prowler XTX side-by-side unit with a snowplow at his Don’s Speed Parts shop in Wainwright. The dealership is the reigning 2012 Arc c Cat Snowmobile Dealer of the Year. Kinghorn has earned the tle seven mes since 1993 including four out of the last ve years.
PIPELINE NEWS January 2013 A29
MUNICIPAL COMMERCIAL INDUSTRIALOIL & GAS UTILITY
Box 1443 3705-52 Street CloseLloydminster SK, S9V 1K4
Bonnyville – Energizing the economy. Th at’s the perfect theme for the
2013 Bonnyville & District Oil Show with major in situ oilsands projects
planned or underway in the Cold Lake and Bonnyville areas.
Th e oil show will be held June 19-20 at the Centennial Centre as it was in
2011 when the show was fi rst held, but this time around, the regional oil and
gas industry is in a boom phase.
“Th at’s the major thing that we have been hearing back from companies is
that the show is perfect timing,” said Robyn Ducharme, show chair and presi-
dent of the Bonnyville & District Chamber of Commerce which is hosting the
event.
“It’s going to be an excellent time for businesses to showcase what’s going
on because of the projects that are on the ground and running.
“Th e general buzz is how busy we are. We are still expecting a lot of people
to be moving into the area in the next couple of years here. You can see that in
home sales.”
Ducharme is a fi nancial planner and a stock broker for Edward Jones and
she said two of her clients sold their house the day after they listed it.
“I have heard there are only 12 houses for sale in Bonnyville on MLS,” she
said on Nov. 28.
Th e strong regional economy is being driven by companies such as Ceno-
vus Energy which is expanding its Foster Creek SAGD project near Cold Lake
to a future optimum capacity of 310,000 barrels per day of bitumen.
Imperial Oil is on schedule to complete its $2 billion Cold Lake thermal
expansion at Nayibe. It will produce 40,000 barrels per day of bitumen by the
end of 2014 using cyclic steam stimulation.
Osum Oil Sands Corp. is also gearing up to begin Phase 1 construction
of its planned 35,000 barrel per day SAGD and CSS Taiga projects near Cold
Lake.
All three companies have signed on again as event sponsors of the 2013 oil
show that was already half sold when Ducharme was interviewed.
“Th e initial reaction has been great. We know that next June – leading up
to the next six months – that this is an extremely busy area,” she said.
“Everything’s going really well. We are absolutely half-way sold out right
now.
“What I am expecting and what we’ve heard is that January is a new bud-
get year. We are expecting to get a lot of bookings in January.” Page A30
Osum Oil Sands Corp. has signed on again to host the Bonnyville & District Oil and Gas Show registra on barbecue. Osum received regulatory approval in 2012 for its planned 35,000 barrel per day bitumen project north of Cold Lake. File photo
Bonnyville oil show well timed
A30 PIPELINE NEWS January 2013
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Page A29 More inside and outside exhibitor booths will also be
added this time as a result of lessons learned from the 2011 show.
“Our goal is to double the number of attendees to that show in 2013,” said
Ducharme.
“We weren’t really sure what to expect the fi rst year. We are focusing our
eff orts on advertising more to attendees and less to exhibitors.
“We are expecting to completely sell out the exhibitors, so we are actually
not doing any advertising there.
“We are only advertising for people to attend the show and we are reaching
out to broader markets. We didn’t really advertise in Edmonton, Calgary and
Fort McMurray last time at all.
“We plan to advertise more throughout the entire province and also net-
working through e-mail to get people through the doors as well.
“I think the biggest thing for us is using word of mouth, and I think the
e-mails are what are really going to be able to do that.”
Ducharme said improvements will also be made to the popular reverse
trade show called the Oilmen’s Room that gives exhibitors a crack at procuring
business with the major oil and gas players in the area.
“What we are doing with the Oilmen’s Room this year is, we are going to
be giving exhibitors the option to book an appointment,” said Ducharme.
“Th at was something a lot of the exhibitors asked for. Last time, they went
in at a certain time and they would have to wait. We are going to be off ering
appointments this year.”
Visitors will get in free this year provided they pre-register online up to the
day of the event, unlike in 2011 when the free cut-off date for registering was
two weeks before the doors open.
“If you haven’t preregistered by the day of the show, we will be charging $20
at the door and all proceeds will go to STARS,” said Ducharme who expects a
great turnout.
“It’s going to be bigger and better than last time. I think that was really im-
pressive for our fi rst show, but we are defi nitely tweaking a lot of things,” she said.
“We are taking some of the things that didn’t go right – we know how to fi x
those now. We are just making it bigger and better.
“If everything goes the way we are planning, we will double the number of
attendees. We are expecting to have the same show as last time, but on an even
bigger and better scale.”
Event sponsorships are also selling well, with the majority of sponsors from
the 2011 show returning to support another round of events including the regis-
tration night barbecue and banquet.
Th e 2013 oil show will also feature up to eight speakers, but the venue will
move from the theatre to site of the sponsored exhibitors’ breakfast and lunch in
an eff ort to boost attendance and interest.
Ducharme said planning for the 2013 oil show began about a month after
the conclusion of the initial show in 2011, and lots of people have asked to be on
the organizing committee.
“We have probably added a good 10 people to the planning committee.
Th at’s been amazing,” she said.
Ducharme said her job at Edward Jones, advising clients on buying and sell-
ing oil stocks, fi ts nicely with her mission with the chamber to attract business
and investment to the region with the oil show as a lever.
“I know a lot of people and I know oil. I have an oil and gas background as
well,” she said.
“My clients all work for oil. It’s nice to be able to have the type of back-
ground I do, and be able to sit down in front of my clients and actually under-
stand what they are doing every day.”
Tanya Oliver, who acted as show co-chair in 2011, is the executive director in
2013 and is currently on maternity leave until March when the excitement will
build.
“I think what’s really going to happen in the new year is a new budget year
and all of a sudden the show is in the same year – a couple of months away –
and that’s when people really start to get excited.
“We are expecting in the new year in January to be really busy with nailing
down the details of the show,” Ducharme said.
More booths added The Centennial Centre in Bonnyville will be the site of the 2013 oil show.
PIPELINE NEWS January 2013 A31
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A32 PIPELINE NEWS January 2013
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Lloydminster – Th e
City of Lloydminster
can continue to grow
thanks to a few signa-
tures from politicians
from Saskatchewan and
Alberta.
Representatives
from Saskatchewan,
Alberta and the City
of Lloydminster signed
a new Lloydminster
Charter on Dec. 3, up-
dating the legal frame-
work for the governance
and administration
of the city and com-
memorating more than
80 years of intergovern-
mental co-operation.
“Like many Sas-
katchewan communi-
ties, Lloydminster is
growing,” Saskatchewan
Government Relations
Minister Jim Reiter said
in a news release.
“So it was the right
time to revisit the Char-
ter to ensure it serves
the needs of those living
in this unique city. We
are proud of the work
done with our partners
so our border city can
provide eff ective lo-
cal governance as this
community continues to
grow.”
Th e last major up-
date of the Charter was
in 1979. Th e new Char-
ter is approved through
orders in council in both
Saskatchewan and Al-
berta and will come into
eff ect on Jan. 1, 2013.
“Th e new Lloyd-
minster Charter is a
milestone for the City
of Lloydminster,” said
Lloydminster Mayor
Jeff Mulligan.
“Th e Charter seam-
lessly aligns Lloyd-
minster with legislative
powers to enable the
eff ective operation of
our municipality in both
provinces, while provid-
ing increased account-
ability and fl exibility.
“We thank our bi-
provincial partners and
our teams of dedicated
personnel for their work
in renewing this impor-
tant document and their
commitment to ensur-
ing the Charter paths in
an orderly fashion with
provincial legislation in
the future.”
Th e new Char-
ter updates the city’s
authority, allowing for
more fl exibility and in-
novation and aligning it
with current provincial
legislation for Alberta
and Saskatchewan cities.
It is easier to understand
and modernizes the reg-
ulations and processes
that apply to municipal
government.
“Th e new Lloyd-
minster Charter rep-
resents years of hard
work and collaboration
between the city and
governments of Alberta
and Saskatchewan,”
said Alberta Associate
Minister of Municipal
Aff airs Greg Weadick.
“Th is is, however,
more than a tri-partite
agreement for Canada’s
border city; it gives the
City of Lloydminster
the right tools to govern
its citizens today and in
the years to come.”
Th e Village of Lloy-
dminster, fi rst estab-
lished 1903, was split in
two when the provinces
of Saskatchewan and
Alberta were created in
1905. In 1930, the two
communities became a
single municipality, the
Town of Lloydminster,
by order in council in
both provinces.
On Jan. 1, 1958, the
Town of Lloydminster
received its charter
as the City of Lloyd-
minster and became
the 10th city in both
provinces.
Lloydminster is
the only border city in
Canada that is incor-
porated as a single city
with a single municipal
administration.
Pictured in a endance for the signing of a new Lloydminster Charter are (l-r): MLA Rich-ard Starke, associate Minister Greg Weadick, Mayor Je Mulligan, Minister Jim Reiter, MLA Tim McMillan. Photo submi ed
Lloydminster charts a new course
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Lloydminster –
During any cold snap,
winter oilfi eld and
industrial work cloth-
ing and safety gear sold
at Northern Factory
Workwear outlets in
Lloydminster and Sas-
katoon seems to sprout
wings.
Th at was the case
during deep-freeze
conditions at the end
of November that sent
a wave of local work-
ers and their families to
the Lloydminster store
to raid the shelves for
head-to-toe winter wear.
“Everything is fl y-
ing off the shelf – any-
thing that is warm is
fl ying off the shelf,” said
Pam Beznoska owns
both locations with her
husband Neal.
Workboots, fi re
retardant jackets, under
garments, coveralls, bibs,
gloves, hats and hard hat
liners were among the
items cleared for takeoff
at the cash register.
Early seasonal sales
of winter family cloth-
ing, snowmobile suits
and even kids’ wear were
also strong.
“It’s busy, very busy,”
said Beznoska, who
is pleased to see cold
weather arrive a month
earlier than it did last
year.
“We start getting
our stock in August, so
it’s nice to see it moving
a little quicker than No-
vember and December
of last year,” she said.
“Now we are re-
stocking because winter
is here for awhile.”
Cold weather
brought crude hauler
Melvin Bielecki back to
the store to buy a new
fi re retardant Nomex
IIIA jacket for his oil-
fi eld job.
Bielecki owns M
& R Bielecki Trucking
Ltd. in Marshall and
he needs a warm but
comfortable jacket when
stepping in and out of
his truck for minutes at
a time at a lease site.
“I am buying an
insulated jacket with a
wind barrier in it,” he
said. “I put it over top
of my fi re retardant
coveralls.”
He eventually
selected a mid-length
bomber Nomex IIIA
jacket by Actionwest,
with Scotchlite refl ec-
tive tape.
“I fi nd this fi ts best.
It’s just the right length
so you are not sitting on
your jacket when you
are inside the cab,” he
said.
Bielecki also wears
fl eece pants, a hard hat
liner, insulated gloves
and steel-toed insulated
workboots to stay warm
on the job during the
winter. He likes the
selection at Northern
Factory.
“We have lots of
inventory and we are
getting into the layer-
ing system and making
sure we have enough
underwear and outer-
wear to provide every-
body for the winter
to stay warm,” said
Beznoska.
“You have your
base layer of clothing –
underwear – and quite
often you will have
another piece of cloth-
ing like a hoodie and
an outer layer.
“So if you are in
and out of a building,
Dress for cold at Northern Factory
Derek Van Metre, who buys safety gear for LML Industrial Contractors Ltd., talks with Northern Factory Workwear owner Pam Beznoska about lling a large order for 45 win-ter Nomex jackets and 200 coveralls with the LML logo embroidered on the backside.
you are able to take off
one piece and still stay
warm, but have the
protection when you
are out in the cold.”
To accommodate a
growing line of winter
clothing and accesso-
ries for the whole fam-
ily, Northern Factory
has a combined total of
20,400 sq. ft. at both
locations.
“We have -60 to
-70 C suits for snow-
mobiling for kids, men
and ladies as well as
footwear for all ages
from infant size four up
to men’s size 16,” said
Beznoska. Page A34
Geordie Fitzsimonds, a construc on supervisor with Bexson Construc on Ltd. in Lloyd-minster, tries on some ght ng gloves that will allow him to pick up a nail or a screw without having to expose his bare hand in the winter cold.
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Page A33“We have a huge se-
lection of sizes available
in footwear and clothing
up to fi ve XL.
“Families have
to stay warm too. It’s
not all about work. It’s
about play too. Workers
are able to come here
and do a one stop shop
for the whole family.”
Northern Factory
also carries more than
100 styles of gloves
including winter glove
liners and rugged insu-
lated gloves for outdoor
construction jobs.
Geordie Fitzsi-
monds, a construction
supervisor with Bexson
Construction Ltd.,
is a regular corporate
customer at Northern
Factory who came in
from the cold to browse
through the glove racks.
“I like to wear some
kind of tight ones so I
can pick up screws. I
need to be able to grab
something that small,”
he said.
“It also depends on
the job. If you are work-
ing on bigger stuff you
can wear thicker gloves
that are a little more
insulated.”
Fitzsimonds mostly
works outdoors and was
wearing coveralls over a
hoodie when he walked
into the store to warm
up with new gloves in
mind for the job site.
“It’s winter that’s
for sure,” he said. “A lot
of time, I will just wear
a couple of sweaters.
You gotta wear the right
clothes. You kind of get
used to it after awhile.”
Winter steel-toed
workboots by brand
names such as Baffi n
and Dunlop are must
buys for anyone who
works outdoors.
“With Baffi n, there
are about 10 diff erent
styles that we carry.
Th ey are good from -20
to -100 Celsius,” said
Beznoska.
One of the hot-
test novelty products
at Northern Factory
this winter is wire-
less remote-controlled
Th ermaCELL heated
insoles with recharge-
able batteries.
“If you are outside
for any extended period
of time, it’s nice to have
your feet warm. If your
feet are warm, then
you are warm,” said
Beznoska.
A new self-serve
Dr. Scholl’s custom fi t
orthotic centre like the
one seen on TV ads is
getting a lot of use at
both locations and is
the only one available in
Lloydminster.
“We get a lot of re-
ferrals from doctors that
send their patients over
here to try this because
of the technology that’s
in it,” said Beznoska.
Northern Factory
is also generating more
business each year for its
embroidery service that
can put company logos
or employee names on
jackets and coveralls of
all types.
Derek Van Metre,
who handles safety gear
on behalf of Lloyd-
minster-based LML
Industrial Contractors
Ltd., was at the front
counter praising the or-
dering, embroidery and
deliver service provided
by Northern Factory.
“Th e accommodate
us. Th ey supply us with
all our coveralls, all our
gear, all our safety gear,”
said Van Metre who put
in an order for 45 winter
Nomex jackets and 200
coveralls with the LML
embroidered logo.
“We buy all our
winter gear and all our
safety gear here. Th ey
generally accommodate
with us with large vol-
umes of safety gear.”
LML provides
cost-eff ective services
for routine maintenance
and plant turnarounds,
including the upcoming
2013 spring mainte-
nance turnaround at the
Lloydminster Husky
Upgrader.
“We will be look-
ing at 1,500 pairs of
coveralls and accessory
gear to accommodate
the guys coming for the
turnaround,” said Van
Metre.
“We get that all
through Northern Fac-
tory because we get our
stitching all accommo-
dated through North-
ern Factory.
“Pam, she’s over
here glowing. It’s like
she just hit the jackpot.
“Th ey do all the
stitching and we don’t
have to worry about
anything. Th ey put our
labelling on them for
us. It’s all a one-stop
shop. It makes it nicer
because it’s less confu-
sion and hassle.
“We just call them
and tell them how
much we want, they
set it up, they get it
stitched and they deliver
it.”
Melvin Bielecki, owner of M and R Bielecki Trucking Ltd. in Marshall, tries on a new No-mex IIIA jacket as Northern Factory Workwear owner Pam Beznoska looks on.
That time of year
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Lloydminster – Driving around the world
several times in a single day safely at this time of
the year requires good winter driving practices and
great winter tires.
Baker Hughes employees in Canada accom-
plish that feat daily thanks to company-wide safety
measures that include a winter driving campaign,
a road journey management program and a winter
tire policy.
“We do about 137,000 kilometres day with
Baker Hughes in Canada, so we go around the
globe just about three times,” said Calgary-based
Rod Stearn, vice president of well production and
oil sands.
“Driving that many kilometres is our biggest
risk, so what we want to do is make sure people
have the tools to maximize our safety success rate.”
Safe winter driving was top of mind for Larry
Sartori, a continuous improvement technical man-
ager with Baker Hughes, also from Calgary. He
noted this in his opening remarks at the November
lunch meeting of the Society of Petroleum Engi-
neers in Lloydminster.
Sartori drove his pickup truck equipped with
snow tires more than 550 kilometres from Calgary
to Lloydminster over snow-packed highways to
deliver his message.
“Th e fi rst snowfall of the year is an excellent
reminder of the need for good winter driving prac-
tices,” said Sartori.
“Our objective is for all of our guys to get home
safely to their families every night.”
Baker Hughes Canada has a staff of more than
400 employees in its upstream chemical division
with the bulk of winter oilfi eld driving occurring in
Alberta and Saskatchewan.
“One of the main polices we have is the winter
tire policy. I am fairly proud that our company has
made all drivers put winter tires on from Oct. 15 to
March 31,” said Sartori.
“It’s an important thing for the company to
make sure our employees get home safe and the
winter tire policy defi nitely helps.
“Our producers are going that route as well. We
want to make sure we are in line with producers.
We want to make sure our guys get to lease and do
their jobs safely.”
In Lloydminster, Baker Hughes allows employ-
ees to choose up to six diff erent winter tire brands
available from local suppliers.
Th e company’s winter tire policy has been in
eff ect for three years and goes hand in hand with
other measures Baker Hughes is taking to promote
safe winter driving.
“We have a winter driving campaign where
we get tidbits of information sent to us by e-mail
on things to do properly when you are driving in
winter conditions,” said Sartori.
“We have a road journey management system
which requires our guys to check weather condi-
tions, among other trip details, before they jump in
their trucks and go.
“If you are travelling any distance, we are re-
quired to fi ll out a journey management form and
review it with our managers and supervisors for
higher risk trips.”
Bakker Hughes also uses GEOTrac fl eet
management software for its in-vehicle monitor-
ing system. It reports on driving speeds on primary,
secondary and gravel roads.
“It’s very similar to a GPS,” said Sartori. “It
keeps track of our speed, our mileage and where we
are and other information. It’s a part of the industry
now, and it’s a good thing.
Improved safety with GEOTrac can result in
direct savings to oil and gas companies through
lower insurance premiums and fewer infractions
such as speeding.
“It’s a reporting system,” said Stearn. “We are
able to monitor speeds and coach people and en-
force policy on highways and secondary roads.”
Th e most popular application of GEOTrac
software is the customizable maps using the LSD
grid system for oil and gas locations and for route
optimization, security and safety purposes.
“We are just getting into it. You can do a lot of
things with GEOTrac,” said Stearn.
“We are just kind of dipping our toes into the
diff erent functions of it.”
Juan More, a Lloydminster eld specialist, comple ons and produc on, shows o the Goodyear Ultra Grip win-ter re on this company pickup. Baker Hughes has a win-ter re policy in e ect from Oct. 15 to March 31.
Baker Hughes rolls on winter tires
A36 PIPELINE NEWS January 2013
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By Geoff LeeLloydminster – Cold
weather and snow are
best friends of Bound-
ary RV & Marine in
Lloydminster, an outlet
that off ers Yamaha and
Polaris sleds, utility
ATVs and side by sides.
“Th e cold weather
is good, but snow is the
biggest thing,” said gen-
eral manager Andrew
Bentley.
“Last year, we had
-30 Celsius and no
snow. Th at is not good for anybody. Snow is the biggest thing that will move
product.
“Sales are really good for this year. We are very happy with the way things
are going.”
It was -17 C and there was plenty of snow on the ground on Dec. 6 when
Bentley got behind the wheel of a Polaris Ranger 800 side-by-side equipped
with a plow that the service shop uses around the yard.
“It has a fully enclosed cab and a winch and a plow on it. Th at cab is sound
and heat insulated so it is quieter than a lot of others,” said Bentley.
“It is popular with the oilpatch. Th ey like anything that is going to keep
their guys a little bit warmer and out of the elements, so the guys can work in
comfort.”
Th e Ranger 800 was equipped with a heater, a defroster, windshield wipers
and other accessories, making it an ideal winter oilfi eld vehicle for transporting
personnel and cargo and for plowing snow.
“Th e Rangers have the availability for a lot of accessories. We can make a
$15,000 Ranger into $25,000 one in no time fl at by adding things like lift kits,
tires and rims,” said Bentley.
“We can put doors and fully enclosed cabs on them as well as tracks and
plows.”
Th e Polaris Rangers also come with a 1,000 lb. capacity tilting storage box
for hauling equipment and supplies to and from off -road oilfi eld sites.
Th e box has multiple tie-down points and dozens of so-called Lock &
Ride accessories for working and hunting.
Bentley also talked about oilfi eld uses for a Ranger 700 side-by-side
equipped with winter tracks that was in the service shop for a maintenance
check.
“A lot of wireline companies put tracks on them because there are places
no man or utility vehicle should be, and that will unit will get them there,” said
Bentley.
“Th e tracks are made for snow and ice. Th ey are not made for muddy situa-
tions or sand.”
Contractors and subcontractors are the main buyers of Ranger side-by-
Snow jump-starts sales at BoundaryThis Polaris Ranger 700 side-by-side that is in for a maintenance check is be-ing used for winter wire-line work and is equipped with snow tracks.
sides including the sporty RZR models at Boundary RV & Marine.
“Th ese are the units that guys are specifi cally buying for multi-purpose
use,” said Bentley.
“You can fi t two people in them. It’s a personally owned unit. Guys will
come and buy it for themselves even though they are buying it for their busi-
ness.
“Th ey will put their wife or kids in it and take them out fi shing or hunting,
but they can still use it for business purposes.”
All Polaris RZRs have long suspension travel and high performance shocks
for the demands of off -road conditions for work or play.
“Th e RZR is more of a sand dune buggy style side-by-side that has more
of a ‘sit down’ car type feel. It’s more of a sports unit,” said Bentley.
“Guys are using it for recreational use and for business purposes, either
taking customers or other employees out onto a lease site.
“Th e RZR 4 can reach speeds of up to 80 mph. Th at’s why it’s for recre-
ational use and that’s why a lot of guys like it for business use, because it gets
the job done in half the time.”
Th e Polaris RZR is marketed as having the ultimate combination of power,
suspension and agility. Page A38
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Page A37
“Th e RZR S is popular with wireline companies because of its 60-inch
width,” said Bentley.
“It still fi ts on trails and still fi ts through most tight places, but it has a
long suspension and it also has as much power as any of the other ones out
here at 800cc.
“It’s a nice unit for the guys that are off -trails.”
Most of the Ranger and RZR side-by-sides feature electronic fuel injec-
tion for easy starts in cold weather conditions and are sold with on demand
AWD/2WD capability.
“Anyone of these will start in any situation be it cold or otherwise. Th ey
are very good for winter,” said Bentley.
Dependability, reliability and durability are what help sell Yamaha ATVs
to corporate buyers who represent about 25 per cent of Boundary RV &
Marine customer base.
“A lot of companies look for a number of things,” said Bentley. “Th ey are
also looking for size and power without having to buy too much power.
“Th e Kodiak 450 and the Grizzly 550 by Yamaha fi t well into that.
Oilfi eld companies use Yamaha product solely for its dependability, reliability
and durability.”
Both quads are sized to fi t two side by side on a trailer or a truck deck –
one of the selling points.
“Th ey buy them because of size – the ability to fi t them side by side, the
ability for guys to get on them,” said Bentley.
“Th ey are small enough so you can only fi t one person on them. A lot of
companies want that because they don’t want two people on a quad for li-
ability reasons.
“Th e Kodiak 450 is a good quad for one person only.”
Th e 450 comes with automatic transmission, on command 2WD/4W
diff erential lock and a rear sealed wet brake and is popular with oilfi eld com-
panies in the dead of winter.
“Th ese things are used all over northern Canada and northern Alberta
and northern Saskatchewan and they are used in the coldest of weather,” said
Bentley.
“A lot of surveyors and a lot of oil companies use them. Th ey use them up
in the diamond mines as well.”
Cold and snow are welcome any time at Boundary RV & Marine in
January and February when everything in stock goes on sale including Ya-
maha and Polaris sleds.
“All of our sleds are going on sale for the months of January and Febru-
ary. We have a big blow-out sale starting in January,” said Bentley.
“Last year was a really tough year for sleds. We had a really good year as
far as ATVs and side-by-sides go.
“We starting selling them in March and we were sold out by the middle
of April.
“Th is year, we are watching inventory very closely. We are trying to bring
in as much as we can so we can be ready for that March rush again.
“Th e snow is really helping now.”
More than 90 per cent of Boundary’s sales are to people who buy their
machines for personal use, with Polaris mountain sleds being the most popu-
lar.
“Th ere’s about 10 per cent coming in and buying for corporate use –
again for wireline,” said Bentley.
“Surveyors use a lot of the Yamaha product as well as some of the four
stroke Polaris product.”
Boundary RV & Marine also sells Cargo Mate trailers for ATVS, side-
by-sides and sleds.
Corporate is 25% of customer base
PIPELINE NEWS January 2013 A39
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NEWSPIPELINE SECTION B
January 2013
The Port of Churchill is no stranger to tanker tra c. For decades, tankers were used to bring in fuel to supply the joint U.S.-Canadian military base. The tank farm can be seen behind the grain termi-nal. Now these facili es are being considered for expor ng West-ern Canadian crude oil.
Photo courtesy the Churchill Gateway Development Corpora on
Port of Churchill considered for crude export By Brian Zinchuk
Winnipeg, Churchill, Man. – Work is underway for another export outlet for
Western Canadian oil, but it’s not where you might expect. If successful, this
oil will not be going west, to the Pacifi c coast, or via pipeline south or east. No,
this route leads north.
Th e idea is to ship light crude oil by rail to the Port of Churchill, Mani-
toba, where it will then be loaded onto tankers. Th ose tankers could then carry
the oil to refi neries on the East Coast of Canada or the U.S., the U.S. Gulf
Coast, or Europe.
Canada’s northernmost port has an important feature. Its entire reason of
being it is has been the closest tidewater port for prairie grain. Th at also makes
it the closest port for Saskatchewan oil.
Jeff McEachern, executive director of the Churchill Gateway Development
Corporation (CGDC), spoke to Pipeline News on Dec. 7 via phone from Win-
nipeg, where they are headquartered.
Th e CGDC is a non-share, public-private partnership and includes
representation from the government of Canada (Western Economic Diversi-
fi cation), the province of Manitoba and OmniTRAX, Inc. OmniTRAX is the
private owner/operator of the Port of Churchill and the railway that serves the
port, the Hudson Bay Railway Company. OmniTRAX, bought the rail line
over a decade ago.
“Early this year (2012), we received a call from a producer who wanted to
ship oil from the port,” McEachern said.
“Th ere’s a lot of moving parts at this point. "
Th at got the ball rolling. Th ey have been meeting with producers, mid-
streamers and refi ners, and studying the economics. Th at studying has led them
to “become comfortable that this has some legs.”
“Our proximity to producers is pretty good,” he said, noting how close the
port is to central Alberta and southeast Saskatchewan oil production. “Strategi-
cally, we’re good for Eastern Canada and Europe.
Th e total volume of shipments they are aiming for is rather small in com-
parison to Canadian production. “It’s about 2 million barrels (per year) is what
we’d like to work towards.
“Th at number is a comfortable number.”
Put in perspective, that would be less than four-and-a-half days of Sas-
katchewan’s total production. Put another way, it would be roughly 50 days of
shipping from Crescent Point’s recently-expanded 40,000 barrels per day rail
loading facility near Stoughton.
He acknowledged, “It’s insignifi cant based on production in the market.”
But it is another option.
Asked if they were targeting smaller, more nimble junior producers, or
larger ones, McEachern said, “At this point, the entire market is our target
market.” Page B2
B2 PIPELINE NEWS January 2013 2012
Page B1Improved car effi ciency
One of the key factors in shipping crude-by-rail is the availability of tanker
cars. It can take 20 to 30 days for a car to be shipped to the Gulf or East Coast
and back. But a run from southeast Saskatchewan to Churchill is substantially
shorter.
“From southeast Saskatchewan, a re-
turn cycle, including unloading, is probably
16 days,” he said. Th e result is a substantial
increase in rail car effi ciency. You can ship
more oil using the same number of cars.
Th e Churchill Gateway Development
Corp. won’t be providing cars, however.
Th at’s up to the producers, midstream
companies or refi neries.
While geography is a benefi t, it also
has its challenges. Churchill is far from
being an ice-free port. It’s shipping season
is from July 31 to Oct. 31.
“Th e shipping season is dictated by
vessel insurance,” McEachern said. “Last
year we probably could have shipped until
Christmas due to ice in the bay. Global
warming has had an eff ect on the ice.”
Th e insurance companies haven’t
adjusted their season yet, but he noted they
are aggressively working on it.
“Adding one month to a four-month
shipping season is a big pickup,” he said.
A few weeks at the beginning of the season, and a few at the end, would be a
great benefi t. Going further into the fall would make a substantial diff erence to
their grain shippers, extending the harvest shipping window.
As for ice, McEachern said no grain vessels have experienced ice issues in
recent years.
“It hasn’t been raised as a concern by charter owners or vessel agencies.”
Th e Labrador coast is known as iceberg alley. Th ere’s a fair amount of traf-
fi c, with grain traffi c and ships servicing Nunavut mines, he noted. “Th ere’s no
documented accounts of problems in the grain shipping season,” he said.
Environmental concerns have been the Achilles heel for other shipping
options, including the proposed Northern Gateway pipeline and Keystone XL
pipeline.
Whereas Hudson Bay is similar in size to the Gulf of Mexico, the latter
has thousands of vessels that can mount a response with booms and skimmers.
But there are precious few vessels in the entire Hudson Bay. Asked how they
would mount a response to a spill, McEachern said it is part of the operational
plan they are working on, but it not fi nalized or ready yet. Similarly, the en-
vironmental assessment is part of their engineering work. He noted they are
working will all appropriate agencies.
Tankers are not new to Churchill, not
by a long shot. Th ere’s a substantial tank
farm in Churchill that was built to sup-
port the former U.S. and Canadian joint
military base there. Tankers used to be
used to bring in fuel, but now that comes
in by rail. Just a fraction of the tank farm’s
capacity is currently used for refi ned
products – diesel, jet fuel, gasoline. But it
can also be used for crude. Th e system can
both receive and ship petroleum products.
“It’s bi-directional,” he said.
Th e tankage has a total capacity of
250,000 barrels. McEachern said they
anticipate approximately 200,000 bbl.
could be used for unrefi ned product. Th e
remainder is used to service the commu-
nity.
“We’re evaluating our storage capacity
right now,” he said.
Th at’s not enough, however, to fi ll a
ship.
“Th e ships we’re looking to fi ll are 250,000 to 300,000 barrels,” McEachern
said.
However, with full storage and the ample rail storage they have, they can
easily fi ll such a ship.
For the sake of modelling, they are working with the current capacity for
the fi rst year or two, before looking into additional storage.
“Th ese investments are driven by the market,” he said.
As far as ships go, that tanker size is relatively small. Th ey are targeting six
to eight ships a year. Th eir combined capacity would equal just one very large
crude carrier (VLCC), also called supertankers, and be half of the capacity of
the largest ships, ultra large crude carriers.
Seventeen grain vessels were loaded at Churchill during the 2012 season,
with destinations ranging from Columbia to Kenya. Most of the destinations
were in Africa, with Europe being the second most frequent destination.
Rail capacityOne of the concerns Canadian National raised in the 1990s was the capac-
ity of the rail line to handle heavier traffi c. At the time, CN said they could
only ship grain in boxcars on that line, instead of heavier hopper cars. Omni-
Trax has been able to overcome that, however, and routinely uses hopper cars.
Th e portion north of Gillan in particular, built on permafrost, has its
speeds reduced. “Th at piece of line has seen a lot of upgrades in the last 10
years,” he said.
Oil tanker cars are not much diff erent, according to McEachern, and while
their weight capacity is slightly lower than Class 1 railways (268,000 pounds
per car versus 286,000 pounds). Rail tanker cars are typically loaded between
600 and 650 barrels based on the weight capacity of the rail line, not the vol-
ume capacity of the cars. Th ey are using 600 barrels per car in their calculations.
Th is summer targeted“Th e target is to have a vessel loading in July 2013,” McEachern said. Th ey
are hoping to have commercial agreements in place in the coming months.
Ice has not been a problem for grain shipments
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“Last year we probably could have shipped
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- Jeff McEachern,Executive director of CGDC
PIPELINE NEWS January 2013 B3
By Josh SchaeferFor Pipeline News
Saskatoon – It’s a common sight everywhere you
go in the oilpatch: precious few tradeswomen, but,
Edmonton-based not-for-profi t Women Building
Futures is on a mission to change that.
“What we’re seeing right now is a real shift,”
said president and CEO JudyLynn Archer. “You’re
seeing more women expressing an interest in fi nding
out more information about these kinds of jobs and
industries and we’re seeing a signifi cant shift in terms
of the industry being really open and interested in
hiring more women.”
Women Building Futures recruits and trains
women for the industrial, institutional, construction,
mining, roadworks and the oil and gas industries.
“It has been traditionally a male industry, the
same as health care has been traditionally female,”
said Archer, noting a large increase over the last six
years of women coming into the workforce.
“You have a lack of awareness in women about
these industries, now more and more women are
fi nding out about these jobs.”
Archer estimates that 10 years ago, about three
per cent of construction related tradespeople in Al-
berta were women. Th at number today is at four per
cent. “It might not sound like a lot, but that’s actually
a lot of individuals needed to move that needle.”
Women Building Futures has been responsible
for 650 tradeswomen coming out of their program
into industry and in 2011 they had more than 2,600
women contact them for more information about
getting into industry related work.
“As more and more women learn about these
opportunities, more and more women are coming
into the industry,” Archer said.
“In terms of the retirement of the baby boomers,
Saskatchewan is looking at unprecedented growth.
We’re going to need more people and in fairly large
numbers to replace the retirements.
“Can women do this work? Yes, of course they
can,” Archer said, speaking about the pipeline work
specifi cally. “I don’t think many women know too
much about that particular segment of the industry,
and I’m not convinced that the pipeline industry
reaches out to women.”
Archer noted that in the awareness campaigns
that her organization has been running for the past
10 years, they exclusively use photographs of women
in their literature.
“It’s just like any other type of marketing, you
target your images,” Archer explained. “Women re-
spond to those pictures. We would love to work with
the oilpatch to do more of that. It’s certainly paying
off for the construction sector in working with us to
get their name out to women in Alberta.”
Working with large and small companies in
the construction and oilsands sectors, Archer noted
that they do not currently work with any companies
involved in the oilpatch.
“We have to let women know that these oppor-
tunities are out there and these companies are actu-
ally looking to hire, they need people whether they
are male or female. Th ey’re looking to hire people
with the right skills.”
Women Building Futures focuses their attention
on the 100 women they help annually in several key
areas. “Th e fi rst thing we do it get information out to
raise awareness.”
Th e second step is assisting the applicant in
making a determined and well informed decision
about whether the chosen career is a good fi t for
their lifestyle.
Women Building Futures then provides the
necessary training, workplace culture preparedness
training, safety training and helps to develop the
skills that are required for the chosen career.
“At the end of the program, our job is to make
sure that our students, when they graduate, go to
work and continue to work in that fi eld. We provide
ongoing coaching and mentorship as long as she
needs it.”
Archer says that this helps make the diff erence
with the companies that Women Building Futures
works with.
“We don’t just train people, we try our best to get
the right people into the right training program and
into employment that they will maintain for the long
haul.”
“As more and more women start to apply for
these jobs, we’ll see more and more of them out
there, and we see it every day,” Archer said.
Women Building Futures was in Saskatoon on
Nov. 26, hosting a Best Practices for Hiring and
Retaining Tradeswomen workshop.
“I thought it was really well attended,” Archer
said. “We had a really good conversation about
what’s working now and we can do to improve this
entire eff ort of getting more women working in
industry.”
A good mix of people attended, ranging from
post-secondary students, to industry and mining as
well as people involved in apprenticeship programs.
“Th ere’s a role of industry in terms of making
sure that once we’ve attracted these great people, we
need to retain them” Archer said in conclusion.
More women needed in the patch
Rollin down the highwayFrac trailers are becoming more common in southeast Saskatch-ewan. This one was heading west on Highway 13 near Kisbey.Photo by Brian Zinchuk
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By Brian Zinchuk
Estevan – Estevan, the Energy City, has a new
mayor, but one who has plenty of experience on
city council and who is aware of the booming city’s
challenges.
Mayor Roy Ludwig had been a member of
council for 18 years prior to being elected mayor.
Pipeline News spoke to Ludwig after he was elected
to the post in late October, and again in early De-
cember.
Ludwig, has spent 36 years as a coal miner with
Sherritt Coal, which has had many names over the
years, working in a number of roles over that time.
Currently he works on the pump crew, dewatering
pits. “It’s a constant job. Th e water is always leaking
in constantly. I am on a team, usually four of us per
shift, that keeps the pits dry so they can take the
coal out.”
“I have a blue-collar job,” he said. “I like it,
because it involves a lot of walking and keeps me in
shape.”
He grew up on the family farm east of Lamp-
man. In his younger days, he spent some time in
Edmonton before working with SaskTel in Regina.
Ludwig soon tired of the city, and returned to
Lampman, where he took over the Lampman open
line telephone exchange before SaskTel took it over.
Th is led to him starting at the mine in November
1976.
His experience in mining ranges from loading
boxcars, oiling on draglines, to blasting and being a
brakeman on the locomotive and a tire technician.
Now his new job (in addition to being a miner),
has him leading City Hall.
“Some of the issues we have before us is man-
aging growth. We have a lot of growth in our city
right now,” Ludwig said. “We have a lot of chal-
lenges associated with growth. We’re working con-
stantly with the government on aff ordable housing.”
“Th ey’ve got a few programs out now. One
we’re looking at is the capital rent subsidy, a pilot
program.”
Th e city will also be seeking infrastructure
money from the provincial and federal govern-
ments. “Hopefully through these programs, with
the provincial and federal governments, it will al-
leviate the need to have to keep going the tax base.”
“Aff ordable housing is a big issue. Continued
infrastructure needs – roads, water mains, sewers,
sidewalks.”
Housing is a key issue for Estevan, which has
been a chronically tight market for several years,
especially since the onset of the Bakken oil boom.
Th at, combined with the hundreds of workers
taking part in the Boundary Dam carbon capture
project, has meant rising rents, high housing prices
and scant supply.
“We’re spending $40,000 on a housing study to
give insight,” he said. It’s similar to a project Wey-
burn did in recent years. Th e money was approved
in the last Estevan budget.
For several years, private development of a large
parcel on Estevan’s northeast corner has been talked
about, but has not come to fruition. “We’re getting
closing to inking a deal with Essex Developments,”
he said, referring to the developer. Th at parcel could
result in hundreds of lots eventually becoming
available.
Another company, Trimount Developments,
has started development of residential property on
the city’s north side.
Th e new hotels are coming along, he added,
opening up more accommodations.
One of Estevan’s limitations to development
has been the ability to supply adequate water pres-
sure, particularly on the north side of the city. Th e
current construction of a new water reservoir on the
west side should soon alleviate that constraint.
“We can start looking north of the city, towards
the truck bypass,” he said. Part of that eventual
development will be industrial, but council and
planning will need to make decisions as to where
that will be.
A few years ago, Estevan opened the Glen
Peterson Industrial Park on the city’s east side, now
home to Canyon Technical Services, Acklands-
Grainger, Regens Disposal and the Saskatchewan
Energy Training Institute. However, the park is still
largely empty.
“We have more land available,” Ludwig said
when asked about industrial land available for de-
velopment. “Th at’s where we would like to see new
players set up.”
Several companies have told Pipeline News they
found that land to be pricey. Ludwig responded
by saying the prices were comparable to Weyburn,
adding, “We feel the price is fair, but if we’re not
competitive, we’ll take a look at it, absolutely.”
“Quite a few are setting up in the RM (of Es-
tevan),” he noted, citing a development agreement
with the RM. Th e city provides potable water to
many of these sites.
He noted that development levies for places
like Estevan and Weyburn are likely going up.
“Our development levies haven’t changed for a
number of years. Council will have to take a serious
look. Regina raised theirs considerably.”
“Th e costs will not be going down. Land prices
in Saskatchewan have been increasing.”
One continuing frustration for the city has
been the lack of progress on the truck route, which
was announced in the 2008 provincial budget at the
same time as Yorkton’s bypass. But while Yorkton’s
route has had several phases built and opened, Es-
tevan’s has yet to scratch dirt.
“We’re frustrated the bypass isn’t in place yet.
But having said that, we’re working closely with the
provincial government to make it happen.”
To that end, Ludwig said he met with High-
ways and Infrastructure Minister Don McMorris
along with former mayor Gary St. Onge and city
manager Jim Puff alt just before the election.
“Th ey’re in the acquiring state. Th ey’ve upped
their initial off er considerably,” Ludwig said, refer-
ring to the price off ered to landowners along the
corridor. Several land acquisitions along the route
have had an impact on what is seen as fair market
price, much more than the $1,000 per acre that
was initially off ered. A 400-metre wide corridor is
planned.
Th e landowner’s initial response was not fa-
vourable. Page B5
New mayor takes the reigns in Estevan
PIPELINE NEWS January 2013 B5
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Estevan’s newly elected Mayor Roy Ludwig a ended the grand opening of the new Microtel Inn & Suites just before being sworn in as mayor on Oct. 29.
Page B4“We are hoping the impasses as far as the land dealings go can be brought
to a successful conclusion.”
“We hope a deal can be made so they can move forward,” Ludwig said.
“We feel it’s important. Our streets are suff ering as a result of the heavy truck
traffi c. It will alleviate costs on fi xing a street, and a few years later, fi xing it
again.”
With SaskPower now shipping fl y ash to the Estevan rail yard for ship-
ment, he said the city is hoping to see mitigation money from the Crown to
assist with its roads.
As for the Boundary Dam Unit 3 carbon capture project, he said, “We’re
very excited the federal government and province came together to make this
happen, along with SaskPower.”
“We’ve already got countries like China visiting, and it’s not even com-
plete,” he said. “With this cutting edge technology, we will be the envy of all
countries with coal power production.”
Ludwig hopes that SaskPower will choose to use the “clean coal” technol-
ogy on all its coal-fi red generating units. It would mean continued production
for the local coal mines and long-term stability for the power plants.
“It means more jobs, continued jobs. Th e coal mines and power plants have
been around for a long time. It means a long term commitment from SPC
(SaskPower Corporation) and Sherritt Coal."
Th e new council has set as its main priority in 2013 the completion of ex-
isting projects, like the paving of the large parking lot areas around the princi-
pal recreational facilities in the centre of the city. In addition, he noted, “Th ere’s
a lot of paving that we’ve fallen behind on.”
Over the past year, City Hall has been sensitive to the idea that crude oil is
being loaded onto rail cars from trucks in the Canadian Pacifi c railyard in the
centre of Estevan.
“We are the Energy City. I embrace the oil industry. Th ey put a lot of mon-
ey into our community. What we’re trying to do is, through dialog with CP
and Cenovus, we are looking at other alternatives. For one thing, it is cramped
for them to get in there. It is tight. Th ere’s only room for so many cars, whereas,
on a bigger siding, they could have much more production as far as loading.
“We’re working with CP, we’re working with Cenovus, to fi nd alternatives.
“One of the alternatives we have suggested is City-owned land toward the
landfi ll. We have land adjacent to the CP track at the landfi ll site. Th e land is
there. We were looking at an arrangement where here’s the land, you put the
track in. We’re still in discussions.
“It could be a bigger siding for them, but they haven’t got back to us.”
Ludwig said oilpatch companies have been great corporate citizens, with
lots of donations coming into the community from them.
B6 PIPELINE NEWS January 2013
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Jason Wagner - Parts Dept: (306) 931-9757
By Brian Zinchuk
Weyburn – With a four year mandate and an 87 per cent plurality of the
vote, Weyburn Mayor Deb Button has her eye on growing her community.
Pipeline News spoke to her not long after the October election to see what her
city’s plans were with respect to the oilpatch and its needs.
Asked how the City of Weyburn plans to meet the needs of the energy
industry, Button said, “We’ve been working hard at that already. You’ll notice, if
you paid any attention to election issues in Weyburn, part of the discussion was
district planning. We have been working very closely with the RM of Weyburn,
planning how we will develop around the city of Weyburn.
“We’ve also been very diligent with the housing advisory committee. We
have two studies we’ve done. Th e fi rst one the committee did was a needs as-
sessment for the city of Weyburn. Obviously, the oil and gas industry has a
huge impact on housing in our community. Th e second study was the business
plan for housing.
“Both of those, there’s no way to measure their impact, truly. Th e fi rst one
we got, the needs and demands study, our committee opened it up and said,
‘What the heck is this? Th is is not what we were thinking we were buying.’
“As it turned out, as developers showed up, we started putting it into
their hands and it was exactly what they needed. We’ve had great success with
developers coming in because of the needs and demands assessment we did.
Moving forward with the housing plan we now have, our housing has made
great strides. We know where we’re going. We know where we’re developing.
We know how many houses and units will be put in the community in the next
several years. We know what our target is and our goal.”
As for what those targets are, Button said, “It’s longer than a four year plan.
It’s in the hundreds. We know we’ve reached those targets. Th e community of
Weyburn has opened up lots itself. We had 700 lots on paper three years ago.
Since then we’ve opened up some of that area. We now have private developers.
We’ve annexed some land from the RM that are opening up more. We’ll see
more coming in the fall.”
Asked about the issues beyond housing, she noted, “Ebel Road (an indus-
trial subdivision) is fi lled up, what’s developed of it. But that’s just a portion of
the plan. It loops and there’s more to it. We’re ready to open that up.
“We are taking a look with our district planning. Maybe there is some
development more suited to the RM. Certainly we would approach the RM to
take that development. Th ere’s some that would be more suitable to the city of
Weyburn. It’s not all about growth in our boundaries. It’s about growth in our
area.
More dirtwork is needed to be done on the Ebel Road project, expected to
be initiated this spring.
“Highway commercial may be an issue for us, but I don’t think we’ll be
caught short. “
Th e city has seen expansion in its hotel sector, including the recent rebuild
of the Travelodge. Microtel has announced a new hotel for Weyburn. Button
said, “I suspect by spring we’ll see movement on the land. We’ve been in con-
versation with them for quite some time.”
Th at hotel will be near the Walmart.
As for other future developments, she said, “Th ere’s lots of dirt-kickers
always around. We’re thrilled to have them and to show them the community.
Some materialize, some don’t.
She noted Weyburn is Saskatchewan’s second-fastest growing city, second
only to Lloydminster, which is partially in Alberta. Th e census data is impor-
tant in calculations of vacancy rates.
“We know what our vacancy rate is moving forward, which will help us
in our housing plans as well. We’re looking at Habitat for Humanity. Our
ministerial association, along with the city of Weyburn, is spearheading those
projects. We’re hopeful come spring or summer we’ll have a project underway.
“With our population increase, we’ll now be on the radar for a bigger
stores, chains looking at our communities. It’s hard to get them to look at com-
munities under 10,000. Th ere’s a wish list in the community. A grocery store is
No. 1. Th e community feels we can support another one,” Button said.
As for other issues, she said, “Certainly we’re seeing an increase with our
police calls. I don’t believe it’s anything our members can’t handle at this point.
We know we’re just under what the provincial number is per call per member.
We may have to look in the future at adding more offi cers. It has big budget
implications, of course.
“We’re managing. We’re doing alright. Th e community has really changed,
I will say that. I don’t mean it’s changed from its core values; the values I ap-
preciate and love. What’s at the heart of the community is the quality of life,
and that hasn’t changed. But what has changed is the faces. You see a lot of
diff erent faces. Th e demographics are changing considerably.
Page B7
Weyburn seeks to take away housing pinch point
PIPELINE NEWS January 2013 B7
Deb Bu on was resoundingly re-elected to the posi on of mayor of Weyburn in Octo-ber.
Page B6“People will comment you could go to the grocery store and you knew
everyone down the aisle. You could stop and talk. Now you go to the grocery
store, and you don’t know everybody anymore. Th e demographics have certainly
changed, and we’re reacting to that. Weyburn had the soft defi nition of the grey
industry, more of a retirement community. We’re certainly not that anymore,
and we’re aware of that.
“We’re expanding our parks. We’re expanding our spray parks – that will be
two. We have a plan for a third possibly down the road, because we understand
when families are looking for recreation, they’re looking for free and cheap. We
need to keep our greenspaces vibrant. Th at’s something that is at the heart of
the city of Weyburn. We love our walking paths, greenspaces and parks. We’re
glad to move forward with those and keep our quality of life.”
Button noted there are two pinch points for business – labour and housing.
“I, as a mayor, can’t do much about labour, but I can aff ect housing. If you take
away one of the pinch points, that’s our goal,” Button said in conclusion.
““Moving forward with the Moving forward with the housing plan we now have, our housing plan we now have, our housing has made great strides. housing has made great strides. We know where we’re going. We We know where we’re going. We
know where we’re developing. We know where we’re developing. We know how many houses and units know how many houses and units
will be put in the community in will be put in the community in the next several years. We know the next several years. We know what our target is and our goal.”what our target is and our goal.”
B8 PIPELINE NEWS January 2013
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By Brian Zinchuk
Calgary – With Enbridge having announced
more pipeline apportionments in November, the
pressure is on for oil producers to look at other
alternatives to ship their product. Th at has been
refl ected in the diff erential between what the WTI
prices is, and what they are actually getting.
On Dec. 7, January WTI was priced at $86.26
per barrel. However, Western Canadian Select, a
Hardisty-based blend of conventional and oil-
sands production managed by Canadian Natural
Resources, Cenovus Energy, Suncor Energy, and
Talisman Energy, was fetching just $55.32, a dif-
ferential of $31.75. Such diff erential hits hard.
Jarrett Zielinski, president and CEO of
Calgary-based Torq Transloading, said, “It’s about
as busy as it can get.”
Torq has set up a series of crude-by-rail trans-
loading sites throughout Alberta and Saskatch-
ewan in recent years.
“We’ve seen a big transition in the pace of
business. I think, what we’ve seen over the past 20,
24 months has been people dipping their toes in.
It’s been a fundamental shift. Refi ners, terminallers
and large marketers have come in with their own
rail cars and said ‘Hey, we want to take a much
larger position, and we want to do so on a term
basis.’
“Th at is what’s driving much of our develop-
ment.”
At the company’s recently opened Southall lo-
cation near Bromhead, they launched with a three
to fi ve car a day range for loading capacity. “We are
looking at a full build-out of that facility. We feel
we’re easily within the 15,000 barrel a day range.
Currently we’re at 2,000 to 4,000 barrels a day. Th e
demand continues to grow. People are looking at
moving unit trains out of there.
“We’re looking at making that site big enough
to accommodate 100 to 120 car trains.”
“Th e Midale spread from WTI is in the $23
range. Th ere’s double the transportation cost by rail.
What we’re seeing is the end market development,
meaning refi ners and terminals, terminals-to-barge,
pipeline terminals on the downstream side, we’ve
seen them ramp up their rail offl oad capacity.
It’s all happening while thousands more rail
tank cars are coming on the market. Zielinski said,
“Our best estimate is about one-third to one-half
of those are targeted towards Western Canada, on
top of what’s already in this market.
“Th ose would be brand new builds.
“Th ose are coming online between now and a
year from now.”
Southall currently has minimal infrastructure,
with rail cars loaded directly from trucks. Th at will
change.
“We anticipate putting tankage with a mani-
fold there to load,” Zielinski said. “Our estimate
is between 40,000 and 80,000 barrels. It could be
more if the demand exists. It could be several tanks
with multiple product types.
“Th e producers are facing shut-in right now,”
he said, pointing to Enbridge’s mid-November ap-
portionment of 18 per cent between its Line 4 and
Line 67.
When such announcements are made, their
phone starts ringing. “Th ey look for alternatives.
We’re certainly one of them, as are our peers. At
some of our facilities, we’re having to move to 24
hours.”
Unity is one example of round-the-clock
operation.
“We certainly have plans to expand Unity.
“We’re looking for operators, specifi cally at
Southall/Bromhead. We’d like to bring on more
good people.
“We have several custody transfer transload
meters in reserve in anticipation of the growth. We
are looking at no less than two pipe-connect unit-
train facilities for 2013. We will be operating in the
Athabasca region in 2013.
“Th e rateability and scalability can in some
cases increase once you disconnect from the trucks.
In Southall, we expect to truck-in volumes to the
tankage. From there it will go to rail. "
He quoted a J.P. Morgan report saying they
expected tank car fl eet to more than double in the
next two years to 45,000 tank cars.
As for the next steps, he said, “Th e market
needs to get bigger, and we intend to be a major
player in that market and be at the forefront in
that market, in a bigger scale.
“Eighteen months ago, it was diffi cult for me
to get a call back from the majors, from the big
guys. Now we get lot of calls back and lots of fi rst
calls.”
Crude-by-rail went from an alternative with
potential downstream risk to a situation where
“Th is is a downstream risk if we don’t get on the
pipe.
“Th e pipe is now the downstream risk, not the
rail. Our objective is to build it in scale and rate-
ability.”
Rateability means that if the rail cars don’t
show up, they can still put those barrels into stor-
age.
Smaller producers, and even larger ones, aren’t
equipped with rail cars, he said, but they can work
with a marketer to help them.
Th e shipping cost diff erential between pipeline
and rail on lighter and medium crude is around
$13-$14, all-in. On heavier oil, like product from
Cold Lake, the crude is shipped undiluted or
under-diluted. “Th e economics get even more
attractive,” Zielinski said, noting that 30 per cent
diluent is no longer needed.
Heavy oil ships in tank cars that are insulated
and equipped with heating coils. Steam is pumped
into the coils at the delivery point to warm it.
“On top of the $32 discount, the spread
between WTI and Brent is another $22. Maybe
you’re not going to get Brent, but you’re going to
get some adjusted basis of Brent, less transporta-
tion costs. Th ere’s a big margin in there,” Zielinski
said.
Pipeline apportionment drives rail demand
PIPELINE NEWS January 2013 B9
Weekdays 7:00 a.m. - 5:30 p.m.; Sat. 7:30 a.m. - 5:00 p.m. • After Hours Call CHAD 634-0195 or cell 421-1896
By Brian Zinchuk
Arcola – Since Clean Harbors established itself in Arcola a few years ago,
the company has grown substantially.
“Th e fl eets have grown,” said Brian Hagel, area manager. “We’re running 25
units now.”
Th at includes steamers, vac trucks, combo units, water trucks, tank trucks,
hot oilers, and one frac heater.
Hagel said he would really like to expand the frac heating side, noting they
now have a local person heading up that service line.
“We’ve hit the ground running, trying to meet the demand. We’re trying to
get our foot in the door,” he said.
“We have Clean Harbors Surface Rentals in Lampman,” Hagel noted. Th at
came about from the acquisition of Peak Energy Services in June 2011. Th e
name changed from Peak Energy Services, a Clean Harbors Company, in late
November.
Th e surface rentals allow the company to build complete packages.
Noble Well Servicing is in the process of building a new shop right next to
the Clean Harbors location. Clean Harbors will be leasing some space in that
building, having already outgrown its shop built just a few years ago.
Th e company had 30 people working out of Arcola, but many of them
come in on rotations, staying at the company’s camp on-site.
“It’s tough to fi nd locals, but that’s where our concentration is.”
“Most of our guys work a 21 and 10 schedule. We’ve got a huge recruit-
ing team in Edmonton. We advertise locally, and in the Western Producer. Our
recruiting department has a very long arm,” he said.
CampTh e camp facility has expanded. It’s an open camp. While Clean Harbors
itself is the largest client, anyone can stay there.
As of early December there were 50 beds. “We’re going to open it up to
80,” he said. “Th ey’re adding a rec facility and will expand the kitchen.”
Part of the camp is composed of fi ve 50/50 shacks, used by Clean Harbors
staff . Th e remainder of the camp is dormitory style.
Th e kitchen serves three meals a day and is open 24 hours. It off ers a hot
lunch, not simply sandwiches and soup.
Th e camp is managed separately from the other operations, but bookings
can be done through the main offi ce.
Varied service linesOne of things Hagel is focusing on is public awareness. “For being here for
three years, there’s still people who don’t know what we do,” he said,
“We’re not just the truck. We are the people, the lodging services, the sur-
face rentals. We have a lot more service lines than people know.”
Some of those other lines include providing methanol for pipeline testing,
tank rentals and specialized equipment for tank cleaning.
Th e Gama-Jet technology, he explained, “is a 3D tool that cleans every part
of your tank, without a confi ned space entry. You can put it though the top,
through the door or manway, or through any four-inch fl ange. We used it at
Apache and PetroBakken with great success.
“It’s a long piece of pipe, and the tool threads onto the end. You can run
it at high pressure, low volume, or low pressure, high volume. We’ve had it for
quite some time.”
“It’s safer, cheaper, and faster. Th ere’s zero tank entry to it.”
Hagel said the system was promoted alot in the Macklin/Provost area. He
plans on doing the same in southeast Saskatchewan. Page B10
More than just trucks: Clean Harbors in ArcolaThis frac heater can run its hea ng units in parallel or series. Each heater is rated for seven million BTU. Brian Hagel is the area manager for Clean Harbors.
B10 PIPELINE NEWS January 2013
Page B9Another product line is Zyme-Flow. “We are the only ones that have that
chemical. It’s an H2S, LEL, benzene and sulfi de inhibitor. It’s used in conjunc-
tion with the Gama-Jet for tank cleaning. It’s a cost-eff ective alternative to
using fi refi ghting foam. It interacts with gases and totally neutralizes it.
Warming things upIn the wintertime, a key portion of the business is keeping things warm.
Th at means the steamers are kept running 24 hours a day to be ready to go
when called. Th ey try to keep the hydrovacs and combo units inside.
Up until early December, he noted, “We’ve had a pretty mild winter.”
Th e company has expanded its steamer service. Hagel said, “We had three
before. We have six now. Th ey range from 750,000 BTU to 1.2 million BTU.
Th ey do dry steam and wet steam. We can run one or two dry steam wands at a
time.”
All six units are rigged in a similar fashion.
Dry steam is accomplished via a separation pot. Th e water drops out in the
steam pot and returns to the tank. Th e result is minimal water vapour.
“We usually run at 150 to 160 Celsius. Th at seems to make the best dry
steam. Dry steaming lets us be more effi cient while steaming.
“Th e guys are fully trained and competent,” he said of the operators. Th ey
can send one or two men out on a job, or even run 24-hour crews, if needed.
Th e frac heater has a 5,000 litre fuel tank, and can run for 12 straight
hours. It has two seven million BTU units. “We can run them in series or par-
allel. You can do two separate jobs or combine them.”
Glycol and methanol“We rent glycol mixture and 50/50 methanol mix for pipeline testing,”
Hagel said, pointing out the tank farm at the back of the compound. Th ere are
multiple tanks, and a fi lter system to fi lter returned product. Th e products are
tested by Carlyle-based PureChem Services on a regular basis.
Explaining the process, he said, “Th ey’ll say we need 100 cubes to test so
many metres of pipe. We’ll take a pressure truck with pressure testing equip-
ment. Tank trucks haul I to the site. Th e pressure truck will fi ll the line and
bump it to test pressure.
“Th e pipeline company will have a protocol for how long it sits. Th e line is
dewatered, and it’s brought back here, fi ltered, and readied for the next job.”
Page B11
Dry and wet steam available on steamer units
Clean Harbors has expanded its opera ons in Arcola since establishing the loca on three years ago. Its lodging services will soon have 80 beds capacity, while their local eet now includes 25 units.
PIPELINE NEWS January 2013 B11
Southeast Saskatchewan area manager Brian
Hagel has been with Clean Harbors, in various
forms, for 13 years. “I started in ’99 with Winter-
hawk Enterprises. I had one vac truck leased with
them. When Winterhawk merged with Eveready
Energy Services, I go on as a project manager/
fi eld supervisor around 2006.”
He had moved to Macklin in 1993. “I was
born and raised in Allan, Saskatchewan. My
parents farmed there.”
He hauled crude for fi ve years before getting
into the vac truck business.
He became area manager for Macklin/
Provost in 2009. As part of taking on that job,
he sold off his truck assets so as to not be in a
confl ict of interest.
“Macklin/Provost was one of their largest
production services branches,” Hagel said.
Th is past summer Hagel, his wife and two
kids came to southeast Saskatchewan. “We
moved to Carlyle, bought a house.”
He said there’s a lot of nice people in Carlyle.
“Everyone’s waving at you, shaking your hand.”
“I want to be a community-minded company
– donate to minor hockey, ball, the fi re depart-
ment. I was big on that in Macklin. To be suc-
cessful, you have to be tight-knit.
“It’s a key to success.”
Having worked in the heavy oil region
for much of his career, Hagel noted, “It’s a big
change from heavy, sandy, gassy oil to here. Th is is
light, full of sulfi des, and really waxy.
Th e hydrogen sulfi de concentrations are also
much lower, but he still insists they take the extra
precautions. “Do it by the book, do it safely,” he
said.
In Macklin, Hagel found about half of their
work was associated with service rigs. Th at’s dif-
ferent in southeast Saskatchewan, with service rig
work being a lower fraction of the business.
Page B10
For larger scale jobs, they can utilize the tank
rentals from Lampman. It can be more cost eff ec-
tive to rent a tank for some projects than to have
several trucks on hand. “We can put an all-inclusive
package together for the company, a one-stop shop,”
Hagel said. “We can haul our own water. It’s the
same as the hot oiler and frac heater. We can supply
our own fl uids and diesel fuel.”
“If you phone use about a frac heater job, we
can fi ll your tanks with water, do the frac heating,
steam your valves, do coil cleanouts and have a vac
truck on site for bleeding lines.”
Being community-minded is key
Brian Hagel points out the tank farm used for methanol and glycol. Hagel and his fam-ily moved to Carlyle this past summer, com-ing from Macklin.
Steamers are kept going throughout the day, ready to deploy.
All-inclusive deals available
B12 PIPELINE NEWS January 2013
Arcola – Linda
McKerchar of Luseland
now looks after cooking
for the Clean Harbors
camp in Arcola, but her
history in the oilpatch
is long and varied.
“I used to be a
trucker,” she said. “I
hauled fuel for Esso
and oil for Gibsons
with my husband.
“I was the fi rst
woman ever to work a
fl ushby in Lloydmin-
ster, Alberta. Th ey said I
wouldn’t last two weeks.
I lasted a few years.”
Th at stint was in
the 1980s. She noted,
“It was a lot slacker.
You only wore coveralls
if you didn’t want oil on
you.”
Linda and her
husband, John, have
been in Luseland for 12
years now. “He’s a heavy
equipment operator for
Brooks Asphalt, so he
doesn’t work at home
either. He’s working at
Oyen now.”
Th ese days Linda
does rotations as a
camp cook. Currently
she does a three-week-
on, one-week-off rota-
tion. With a husband
who also works on the
road, getting together
can be a challenge.
“I went to visit him
in Oyen. Th en he got
shut down. I made him
a moose supper and
sent him on his way,”
she said.
Th e couple have
three daughters and
fi ve grandchildren, all
of whom live in the
Lloydminster area. One
son-in-law has worked
in the patch in survey-
ing.
She’s been a cook
for 16 years. “I started
years ago because I
didn’t know what I
wanted to do. I asked
my husband, ‘What do
you think of camps?’”
It was a quick
learning experience. “I
didn’t realize there were
so many types of salads.
What counts is salads,
and how many combi-
nations. I knew about
fi ve. Well, I got my eyes
opened.”
Continually varying
the menu is a challenge.
“When you go into
a new camp, you use all
your specialities that
you know will go well.
But after awhile, it’s
challenging coming up
with something dif-
ferent for months at a
time.”
She gets some of
her ideas from the
Food Networks’s Din-ers, Drive-Inns and Dives. However, it often
comes down to the
basics.
“I fi nd mostly the
guys like meat and
potatoes. On the rigs,
back in the days, a lot
of the buys were hands
from Saskatchewan,”
she said, noting that
was there preference.
Most of her camp
cooking has been done
during the winters. Ar-
cola is about the same
distance from home
as work in northern
Alberta. Th at can mean
a not-so-fun drive to
work to start a rota-
tion. “Yesterday I wish I
wasn’t driving,” she said.
“I got snowed in.”
However, a little
snow won’t stop Linda.
“I love it. I don’t think
I could quit. Th ere’s not
many places where you
get room and board.
You just walk over in
the morning.”
More than just ve types of salad
Linda McKerchar has been a camp cook for 16 years. Early on, she realized it’s impor-tant to know a wide variety of salads. She’s currently the camp cook at Clean Harbors’ camp in Arcola.
PIPELINE NEWS January 2013 B13
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By Pat Roche(Daily Oil Bulletin) Lloydminster – Husky
Energy Inc.’s heavy oil upgrader at Lloydminster
on the Alberta/Saskatchewan border has reached
record reliability levels, said Rob Peabody, Husky’s
chief operating offi cer.
“We’re now achieving about 97 per cent eff ec-
tive capacity utilization of the upgrader, up from
about 90 per cent a few years ago,” he told Husky’s
investor day conference with analysts in Toronto
on Dec. 4.
Peabody didn’t off er further specifi cs, but the
company disclosed in its third quarter results that
throughput in the three months ended Sept. 30
averaged 81,600 bbls a day, up from 75,600 bbls
a day in the third quarter of 2011. Th roughput
includes diluent returned to the fi eld.
A planned turnaround was completed at
the upgrader in the second quarter and it later
achieved record monthly output, the company
said.
Feedstock for the upgrader is heavy oil from
northeastern Alberta and western Saskatch-
ewan, and bitumen from Husky’s Tucker oilsands
project, which is 30 kilometres northwest of Cold
Lake, Alberta.
An analyst asked how the company achieved
a 97 per cent utilization rate when its peers have
been running at much lower rates.
“We have a pretty consistent feedstock com-
ing in from both the Alberta gathering system and
the Saskatchewan gathering systems. Th at makes a
world of diff erence,” Peabody said.
Secondly, he said the company has strived over
the last two years to improve reliability. “Every-
body on that site is committed to getting safe and
reliable operations. Th ere was a lot of hard work
that went into it.”
Citing one example of a change, he said up-
grader metrics that used to be looked at weekly or
monthly are now monitored hourly.
“And you can see a lot more about what’s
going on in the facility when you’re in real time
looking at performance metrics of the individual
Husky Upgrader bucks reliability trendunits,” he said. “And that has allowed us to catch
problems earlier, get onto them faster and avoid
shutdown situations.”
Husky CEO Asim Ghosh suggested the im-
provement is “part of the larger cultural transfor-
mation” being promoted within the company. He
suggested the emphasis is on performance more
than planning. “We strategize for three days in the
year and execute for 362.”
“We are trying to get a lot more predictable as
a company than we have in the past,” Ghosh said.
B14 PIPELINE NEWS January 2013
3D3D MAINTENANCEMAINTENANCECell numbers: Cell numbers: 483-8024, 483-7024, 483-8148483-8024, 483-7024, 483-8148
Home number: 486-2143 • Fax: 486-4855Home number: 486-2143 • Fax: 486-4855Box 12 Frobisher, SK. S0C 0Y0Box 12 Frobisher, SK. S0C 0Y0
[email protected][email protected]
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Ph:(306) 634-9888Ph:(306) 634-9888
ESTEVANESTEVAN
By Geoff LeeRegina – Th e
Mayans messed up. Th e
world didn’t end Dec.
21, 2012 with the expiry
of their calendar to the
relief of Energy and
Resources Minister Tim
McMillan.
Th ere will be
another sale of Crown
petroleum and natural
gas dispositions will be
held on Feb 4, 2013 –
according to the Mc-
Millan calendar.
Th at sale could top
the fi nal 2012 sale of
Crown petroleum and
natural gas and oil sands
rights in December that
generated $11.5 mil-
lion for the province,
pushing total revenues
for the year to $105.7
million.
Th at total fell way
short of the $248 mil-
lion for 2011 – which
was only the fourth best
on record for land sales
revenues.
Th e bragging rights
for the December
2012 sale pertain to an
industry bid average of
$598 per hectare for oil
and gas rights, which
is more than double
the $218 per hectare
received by Alberta in
their last sale of oil and
gas rights.
Th e December sale
also featured fi ve oil
sands special explor-
atory permits north of
the Primrose Lake Air
Weapons Range, two of
which received accept-
able bids.
“It is encourag-
ing that more than $1
million in bonus bids
was received for two of
the oil sands permits
that were off ered in
this sale,” said Minister
Responsible for Energy
and Resources Tim
McMillan.
“In addition to a
bonus bid, these per-
mits require minimum
work commitment
expenditure to be spent
in exploration over the
fi ve-year term of the
permits.
“Th e province is
cautiously optimistic
that the results of this
exploratory work will
provide further insight
into the potential of the
resource in the prov-
ince.”
Th e December
sale included 89 lease
parcels that brought in
$8.9 million in bonus
bids, two petroleum and
natural gas exploration
licences that sold for
$1.6 million, and two oil
sands special explorato-
ry permits that received
$1 million.
Th e Weyburn-Es-
tevan area received the
most bids with sales of
$6.1 million. Th e Lloy-
dminster area was next
at $2.6 million, followed
by the Swift Current
area at $1.8 million and
the Kindersley-Kerrob-
ert area at $982,890.
Page B15
Stick with McMillan calendar in 2013
PIPELINE NEWS January 2013 B15
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Estevan, SK
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Tel: (306) 634-6768Fax: (306) 634-6738
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Page B14
Th e highest price for a single parcel was $1.6 million. Scott Land & Lease
Ltd. acquired this 1,327-hectare exploration licence south of Gull Lake.
Th e highest price on a per-hectare basis was $8,412. Stomp Energy Ltd.
bid $136,188 for a 16-hectare lease parcel east of Lloydminster.
Weyburn-Estevan Area (numbers rounded off )Th e top purchaser of acreage in this area was Prairie Land & Investment
Services Ltd., who spent $1.6 million to acquire two lease parcels.
Th e highest price paid for a single lease in this area was $1.1 million by
Prairie Land & Investment Services Ltd. for a 1,036 hectare parcel situated
13 kilometres east of the Oungre Ratcliff e Beds Pool, three kilometres south
of Oungre.
Th e highest dollar per hectare in this area was received from Absolute
Land & Lease Ltd. which paid $5,124/hectare for a 32.37 hectare parcel lo-
cated 3 kilometres west of the Openshaw Frobisher Beds Pool, 30 kilometres
west of Rockglen.
Lloydminster AreaTh e top purchaser of acreage in this area was Scott Land & Lease Ltd.
that spent $1.1 million to acquire one lease parcel, one exploration licence and
two oil sands special exploratory permits.
Th e top price paid for a single lease in this area was $338,733 by Prairie
Land & Investment Services Ltd. for a 259 hectare parcel situated 2 kilome-
tres north of the Mervin Waseca Sand Oil Pool, three kilometres north of
Turtleford.
Th e highest price paid for a single licence in this area was $62,564 by
Scott Land & Lease Ltd. for a 2,331 hectare block situated 35 kilometres
north of Glaslyn.
Th e highest dollar per hectare in this area was received from Stomp En-
ergy Ltd, who paid $8,411/hectare for a 16.19 hectare parcel located within
the Tanglefl ags Mannville Sands Oil Pool, 30 kilometres east of Lloydminster.
Swift Current Area Th e top purchaser of acreage in this area was Scott Land & Lease Ltd.
that spent $1.5 million to acquire one exploration licence.
Th e top price paid for a single lease in this area was $112,500 by Jarrod
Oils Ltd. for a 65.15 hectare parcel situated adjacent to the Antelope Lake
North Success-Roseray Sand Oil Pool, 20 kilometres north of the Town of
Gull Lake.
Th is is also the highest dollar per hectare in this area at $1,727/hectare.
Th e top price paid for a single licence in this area was $1.5 million by
Scott Land & Lease Ltd. for a 1,327.37 hectare block situated partially within
the Covington Upper Shaunavon Oil Pool, 10 kilometres south of the Town
of Gull Lake.
Kindersley-Kerrobert AreaTh e top purchaser of acreage in this area was Scott Land & Lease Ltd.
that spent $277,763 to acquire one lease parcel.
Th e top price paid for a single lease in this area was $277,763 by Scott
Land & Lease Ltd. for a 64.75 hectare parcel situated within the White-
side Ribstone Creek and Milk River Gas Pools, 15 kilometres northwest of
Kindersley.
Th e highest dollar per hectare in this area was received from Windfall
Resources Ltd., who paid $6,263/hectare for a 16.29 hectare parcel located
within the Luseland Viking Sand Oil Pool, 30 kilometres northwest of Ker-
robert.
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Arcola – With some space avail-
able in her dad’s shop in Arcola,
Taralyn French saw an opportunity.
On Dec. 3, that opportunity was real-
ized, with the opening of No Limits
Fitness Centre, in Arcola.
Prior to that French worked in
administration at PetroBakken’s Este-
van offi ce. She will also be returning
to the University of Regina in January
for her second year of an education
and kinesiology program. She took
the most recent semester off from
school.
Th e 19-year-old had been attend-
ing North Idaho College on a vol-
leyball scholarship, but found that her
credits wouldn’t transfer to Canadian
schools. Th us she shifted to the U of
R.
“Dad had the space. I like to work
out,” said Taralyn. Her parents, Ralph
and Colleen French, are co-owners
in the venture. You might recognize
the name from fl uid-hauling fi rm, R.
French Transport, based in Forget.
“We mentioned it to my friends.
Th ey said it was a good idea. Every-
one thought it was awesome.”
Work started last June. Th e facil-
ity is on two stories, with much of
the work-out equipment downstairs,
and a studio and cardio area upstairs.
Th ere are eight cardio machines and
10 cable machines, in addition to free
weights.
Just two days after opening, Tara-
lyn said there had been lots of oilfi eld
interest. “Lots of people on service
rigs, lots of people from Alberta,” she
said. Some stay at the Clean Harbors
camp, others at the nearby Chaparral
Inn.
Some companies off er fi tness
benefi ts, she noted. “It works well
with this,” she said.
Th e gym will off er 24-hours-
a-day, seven-days-a-week access to
members, who will be provided with
a key.
While Taralyn is back at school,
personal trainer Laurie James will
look after the new gym. She could
be seen taking her two sons through
a cardio workout on Dec. 4. Part of
that workout was an “agility ladder,"
a cloth ladder around which a person
quickly moves their feet in and out
of the diff erent squares. Th ink of it
as a fast moving game of hopscotch,
but with faster moving feet and less
hopping.
Taralyn will be home on week-
ends to look after the gym. “I do like
to help people,” she said, adding she
liked working with children as well.
New gym attracts oil eld clientele
Taralyn French spent the last summer and fall working with PetroBakken in Estevan. Now she’s opened up her own gym in Arcola with the help of her parents, Ralph and Colleen French. On top of that, she’s going back to the University of Regina to con nue her educa on and kinesiology degree program.
PIPELINE NEWS January 2013 B17
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Estevan – When
it gets cold, be sure to
match your lubricants
to the temperature. And
synthetics do make a
diff erence.
Th at’s the mes-
sage from Terry Nistor,
owner of Nistor’s Farm
Service Ltd., the Shell
Lubricants dealer in Es-
tevan and Regina. He’s
been in the lubricant
business for a long time.
“I started when I
was 19 or 20, driving a
fuel truck for Shell,” he
said.
“I did that for six
years and took over in
Fort Qu’Appelle, then
Kelliher, Indian Head,
Regina, Moose Jaw,
Findlater, Weyburn and
Estevan.”
However, when
Royal Dutch Shell
bought out Shell
Canada in 2007, they
got out of commercial
wholesale fuel sales, and
their cardlock division
was sold to Flyng J,
now Pilot Flying J. Th ey
stayed in the lubricant
business, however,
and asked Nistor if he
would take care of their
wholesale market in the
area. He chose Estevan
and Regina and the re-
maining locations were
shut down.
Nistor manages the
Regina Pilot Flying J
cardlock as well.
“It’s busy. In Re-
gina, it’s agriculture.
Th ere’s lots of oilfi eld,
trucking, construc-
tion. We do a fairly big
industrial business.
“Synthetic oil low-
ers your pour point. It’s
a manufactured, man-
made oil. Th e stability is
better. It doesn’t break
down as quickly. It lasts
longer.
“It increases oil
change intervals from
5,000 to 10,000 kilo-
metres. On tractors,
semis, you have longer
intervals, but you still
need to change your
air fi lters, and do your
chassis lubrication.”
And, most impor-
tantly at this time of
year, “It starts better in
winter, too.
“Your pourability
is better than a mineral
oil. Th e more fl uid that
oil is, the easier it is to
start the vehicle.”
Nistor personally
used to have three semis
hauling grain. At -30 C,
he said, “We were tak-
ing out starters, things
weren’t turning over. We
switched to 0W40 full
synthetic, and it started
like summer.”
“When do you see
the most engine wear?
At start-up. If the oil is
too heavy, and it’s cold,
there’s no lubrication on
those bearings.”
He went on, “Th e
recommendation now
is 5W-40 full synthetic
year round for diesel
engines. A full synthetic
oil will stay cleaner, lon-
ger, than a regular min-
eral oil. Some highway
tractors are running up
to 50,000 kilometres on
synthetic, but I wouldn’t
recommend that.”
“When you start,
stop and are idling, you
change it more often
compared to a highway
tractor going from here
to Vancouver.”
One frac company,
he noted, changes oil
in their trucks every
250 hours. Considering
those trucks can run 24
hours a day, that makes
for frequent changes.
For heavy equip-
ment, he said some
just go with a lighter
hydraulic oil. “Th e
industry here uses ISO
22 hydraulic oil year-
round. It makes a big
diff erence.”
“A lot of people
don’t understand. If
you’re doing a lot of
work in the winter, it’s
in your best interest to
change it. Gravel trucks
use 22 all year round. It
doesn’t get hot. It goes
up and goes down.”
In some cases,
specialty oils are re-
quired. Nistor said Shell
makes a non-conductive
hydraulic oil, called
Tellus Arctic Oil, that
does not conduct static
electricity. It’s useful
for items like cranes in
refi neries.
When it comes to
grease, he said, “We’ve
got summer grease, and
we’ve got winter grease.
Summer grease
doesn’t want to go in.
But he noted, “You can
buy a winter grease with
a -45 C pour point. It’s
pumpable, so it goes.
“A big one we sell
is aviation helicopter
grease with a -60 C
rating. A lot of the oil-
patch uses it on external
valves on tank farms.
Price doesn’t seem to
be a factor. It’s the right
grease for the right ap-
plication,” Nistor said.
“We don’t recom-
mend you use a winter
grease in the summer. It
just runs out.”
“In Estevan, the
oilpatch is probably 75
per cent of our business.
In the last four years,
because of the oil sector,
business has defi nitely
increased. Th ere are lots
of opportunities to grow
your business,” Nistor
concluded. Terry Nistor owns Nistors Farm Service Ltd.
Synthetics make a difference
B18 PIPELINE NEWS January 2013
Continued development drilling
for light oil at Lucky Hills near Kin-
dersley, Saskatchewan, helped Invicta
Energy Corp. increase third quarter
2012 production to 387 boe per day
from 145 boe per day during the com-
parable period last year.
Output for the nine months
ended Sept. 30, 2012, was also im-
proved as the company averaged 320
boe per day versus 114 boe per day for
the prior year period.
Invicta said improved income and
funds fl ow from operations for the
three and nine months ended Sept. 30,
2012, was due to the company’s con-
tinued successful drilling programs at
Lucky Hills and the related operating
netbacks achieved by these oil wells.
Revenues for both the three and
nine months ended Sept. 30, 2012,
were both improved year-over-year.
Early in the third quarter, the
company completed and placed on
production four wells from its second
quarter program. In September, four
wells of the second-half 2012 Kin-
dersley (Lucky Hills) drilling program
were drilled. Subsequent to Sept. 30,
2012, an additional six wells were
drilled, all at a 100 per cent success
rate.
Th e completion and multi-stage
fracturing of the majority of these
wells began after the quarter end due
to availability of services. As of Nov.
21, all wells had been completed and
placed on production. During 2012,
the company had drilled a total of 21
(11.1 net) wells on this property.
Based on the last 10 wells of its
recent drilling program, Invicta said
that drilling costs have been reduced
as a result of increased effi ciencies. Th e
company estimates that the all-in on
stream costs of these horizontal wells
are averaging $900,000 to $950,000.
Th e oil production rates of the most
recent program have exceeded internal
forecasted average type curve.
Invicta’s two facilities were ex-
panded in the third quarter and an
additional one is being constructed
to handle the additional produc-
tion volumes from the recent drilling
program. It was anticipated that one
additional well would be drilled at 100
per cent working interest prior to the
end of 2012 on lands acquired in the
second quarter. Plans are currently
underway for an active fi rst-half 2013
program.
Invicta noted that since April
2012, it has transported up to 60 per
cent of its production by rail in order
to increase netbacks and mitigate a
portion of the current diff erentials
in Edmonton Light to West Texas
Intermediate. Th is process is expected
to continue into 2013.
Invicta uses rail to reach markets
PIPELINE NEWS January 2013 B19
PetroBakken Energy Ltd. announced on Dec. 10
that production in early December had reached ap-
proximately 51,000 boepd (based on fi eld estimates),
up 6,000 boepd since early November as the company
continued to execute on its 2012 capital plan.
Production growth primarily came from the
Bakken and Cardium business units, which are its
most active areas.
Since the end of the third quarter, the com-
pany drilled 67 net wells and placed 76 net wells on
production. Th is includes 26 net wells drilled and 33
net wells placed on production in the Bakken busi-
ness unit, 28 net wells drilled and 35 net wells placed
on production in the Cardium business unit, 12 net
wells drilled and eight net wells placed on production
in the Conventional business unit, and one net well
drilled in its new play areas.
For the remainder of December, the company
planned to bring on production 21 net wells, eight in
each of the Bakken and the Cardium business units
and fi ve in the conventional business unit.
PetroBakken recently completed the Brazeau
facility in the Cardium and tied-in a portion of the
planned wells to this facility, which added approxi-
mately 1,200 boepd of production. Th e company
expected the completion of its tie-in program and
optimization of this facility would add an additional
2,000 boepd of production prior to year-end.
Th e results of these activities, together with the
natural declines attributable to the production base,
will have put the company on pace to achieve its 2012
exit rate production guidance of 52,000 to 56,000
boepd.
Th e recently announced acceleration of the com-
pany’s 2013 capital program is underway and its con-
tinuous drilling program, which currently consists of
11 drilling rigs operating – six in the Cardium, two in
the Bakken, one in conventional and two in the Swan
Hills resource play – should provide a steady inven-
tory of new wells to bring onstream in early 2013.
New additions to the company’s facility infra-
structure and pipeline networks should also allevi-
ate some seasonal production losses during spring
breakup due to shut-in production and road bans, the
company said.
PetroBakken's current production at 51,000 boepd
PIPELINE NEWS January 2013 B21B20 PIPELINE NEWS January 2013
www.carsonenergyservices.com(306) 487-2281(306) 487-2281
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Service Work
Estevan – Th e iron
might be shiny, but it’s
the men who make the
diff erence.
Indeed, talking to
Bill Devins, of Stam-
pede Drilling on Nov.
23, a couple days before
their fi rst rig was about
to go to work on its fi rst
hole, it’s hard to get him
to say much about the
equipment. Instead, he
stressed the quality of
their staff .
“We’ve got the best
men in southern Sas-
katchewan. A rig’s a rig.
We’ve got the best fel-
lows, without a doubt.
“We’re going to lead
the industry in safety.
Th ey’re going to follow
us.”
“All of our fellows
are going to be trained
above and beyond,”
Devins said.
Rig manager David
Shewchuk said they
had no trouble fi nding
people.
Some of the safety
elements include a
lockout on the catwalk
controls on the drill
fl oor. “You have to deac-
tivate the lockout so you
can’t bump the control.
You have to actively
disengage the lockout,”
Devins said.
Th is is done by
holding down a button
on the left side of the
control box. Let go of
the button, and the con-
trols are deactivated.
Th e rig is equipped
with two 455 kilowatt
Caterpillar C15 gen
sets, and two F-1000
mudpumps driven by
C32 Caterpillar en-
gines. Each mudpump
package has a Rouse
single-speed clutch. Th e
engine packages come
from Weyburn’s South-
ern Industrial/Rouse
Industries.
Th e drawworks is a
Ratmaster 850 with an
800 horsepower Cat-
erpillar C18 engine. It
has a Caterpillar electric
automatic transmission.
Th e rig manager’s
shack came from Denby
Trailer Ltd. of Weyburn.
Th e doghouse is a
little diff erent in that
while it has a slideout,
that slideout does not
enclose the driller’s sta-
tion. Instead, it slides
outward, expanding the
size of the doghouse.
Th ere’s a cabinet inside
full of safety equipment.
Th e telescopic
double derrick was built
by Do-All Industries,
along with the substruc-
ture and buildings. As-
sembly took place in the
Do-All Estevan yard.
Th e company’s sec-
ond rig is expected to be
ready in early 2013.
Th e company will
focus on southeast Sas-
katchewan, but will also
venture into southwest
Manitoba.
“We’re going to let
our actions speak. Th e
men are what make the
rig. You get the right
people, they run well,”
Devins concluded.
The workers make the differenceThe workers make the differenceDevin Hala, le , Bill Devins and David Shewchuk grab a Timmies in the rig manager’s shack. Devin’s says that people are the most important part of a rig, not the iron.
Photos by Brian Zinchuk
Jackie White is part of the management team of Stampede Drilling, with a focus on safety.
805 Government Road SWeyburn, SK
306•842•0307
Centrifuges
Shale Shakers
Shaker Screens
Drilling Fluids
Stampede Drilling’s rst rig went to work in late November.
B22 PIPELINE NEWS January 2013
#6 - 461 King St. • Estevan, SK
637-3460 www.petrobakken.com
Strength In Our Resources
Estevan – Harris Oilfi eld Construction has been working in the southeast
Saskatchewan oilpatch for 33 years, and continues to be a strong family busi-
ness.
Th e company is owned by Doug and Bertha Harris, as well as their son
Jim. Th eir daughter Janice takes care of dispatch and some of the management
duties along with her brother Jim. Doug and Bertha have stepped back a bit
after decades running the fi rm.
Th e company has 11 staff members, including the owners.
Th e fl eet is made up of fi ve vac trucks, one pressure truck, one oil truck and
two steamers. Th ere’s also a semi and a tri-axle tanker.
Th e shop’s appearance from the road is deceptive. After having been
expanded to the rear of the property twice over the years, it’s a lot deeper than
one would expect. But when your specialty is dealing with fl uids, a warm shop
is important.
Most of the company’s work is relatively close to Estevan. Th ey don’t ven-
ture into Manitoba.
Th e company’s been operating steamers for quite a while, said Janice. Th ey
see use in thawing lines and valves, and the occasional fi re hydrant for the city.
During the summer that equipment gets used for washing and tank cleaning.
“I’ve been on them, but it’s not my favourite,” she said. “I’m a vac truck
operator. But we’ve all done it.”
Th e vac trucks see use in a variety of applications. “We do anything from
septic to oil,” she said.
Th ey do septic work, but not portapotties, she added.
Such equipment can be in high demand, with the typical, “I need you right
now” phone calls. Janice’s response?
Page B23
Janice Harris and Jim Harris are siblings who both work for the family business, Harris Oil eld Construc on.
Harris Oil eld Construction has offered a variety of services for 33 years
PIPELINE NEWS January 2013 B23
CLIFF NANKIVELLTRUCKING LTD.
Kalvin NankivellPresident
Claudia MullisVice-President
Of ce: (306) 462-2130Fax: (306) 462-2188
Box 123Kisbey, SK S0C 1L0
Jayson King 306.736.9169Stoughton, SK
www.jkcontainments.com
When your wellsite, lease or tankage requires containment,
call JK Containments!We can save you time and money!
One piece portable containment
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environmental security and government
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Page B22“Everybody says that. I’ll do the best I can.”
Harris Oilfi eld Construction has been COR-
certifi ed for at least fi ve years.
Th e company is a dropoff centre for waste oil,
such as used crankcase oil from farm motors, trucks,
and the like. Th ey also collect waste oil from a few
sites in Estevan.
Jim Harris takes care of their crew truck, pri-
marily working with his son, Ryan, with occasional
help from others.
Th e crew truck does facility work, pipelines, and
all sorts of other work, he noted. “One hundred per
cent of the work is for CNRL,” he said.
“We fl oat all over – Frobisher, Steelman,
Lampman, Innes, Viewfi eld. Th ey like smaller guys.
We know the area, and they don’t have to train you.
I started working on my own crew when I was 21
for Gulf at Lampman.
“I’ve been doing it since I was 15 years old,
working in the summer painting pumpjacks,” Jim
said. He’s now 45, and has spent his career with the
family fi rm. Janice rejoined the company 11 years
ago on a steady basis.
In the back of the shop one fi nds the an IMC
stock car, which is no surprise, since Jim is a fi xture
at the Estevan Motor Speedway.
“I’ve been racing since ’81,” he said.
His car is #17, while his daughter, Alyssa, drives
#17A. Ryan drives #18.
Jim notes his father, Doug, has been supportive.
“Dad’s all over these cars when we’re not here. He’ll
know exactly what rim has been bent, and what tire
has been cut.”
Chrystal Schad wields a steamer wand towards the camera. The steamer operator works with Harris Oil eld Construc on Ltd. The 22-year-old did pipeline work in Bri sh Columbia for four months before returning to Estevan.
Photo by Brian Zinchuk
B24 PIPELINE NEWS January 2013
Estevan – Th e city’s latest hotel, the Microtel Inn & Suites by Wyndham, is
the prototype for a wave of new hotels in Canada. Th e plan is for a total of 75
Microtels to open in Canada over the next 25 years.
Th e new hotel adds 79 rooms to the Estevan market, one that’s seen con-
tinued pressure over the years even though numerous additional hotels having
opened in the past three years.
Th e grand opening on Oct. 29 was unfortunately aff ected by poor weather,
both in Calgary and Estevan. A plane chartered for dignitaries planning to at-
tend had to be cancelled.
Catherine Burdett, director of marketing for MasterBUILT Hotels, acted
as mistress of ceremonies. MasterBUILT Hotels is a joint venture between Su-
perior Lodging Corp. – one of Canada’s largest and most successful hotel de-
velopers known for establishing the Super 8 and Wingate by Wyndham brands
in Canada – and Jayman MasterBUILT, one of Canada’s premier residential
builder developers over the past three decades.
She said there were 337 days of construction, 42,000 square-feet of fl oor
covering, over 100,000 square-feet of drywall, over 1,000 gallons of paint, and a
little over $8 million in capital investment in the Estevan operation.
John Henderson, director of support, Microtel Inn & Suites, spoke of the
brand’s expansion, saying, “Th e best is yet to come here in Canada.”
“It gives us great pleasure to be able to open our very fi rst Microtel by
Wyndham in Estevan and provide the community with modern, high quality
accommodation that meets the demands of today’s business and leisure trav-
eler,” said Eric Watson, VP of development. “With a booming economy and
strong demand for quality lodging in the region, Estevan was a natural choice
to launch our Microtel by Wyndham concept in Canada.”
Page B25
The new Microtel Inn & Suites in Estevan will be the prototype for dozens more hotels to come. Photo by Brian Zinchuk
Estevan’s Microtel a prototype for a wave of new hotels
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Page B24
He spoke of the company’s plans to start
construction of a similar hotel in Weyburn in the
spring. Lloydminster’s Saskatchewan side is also
on the agenda for 2013 as well. Blackfalds and
Fort McMurray are also planned in the same year.
Estevan’s hotel is the prototype. However, Tim-
mins, Ont., will be the next to open.
Th ere are currently two other Microtel Inn &
Suites by Wyndham open in Canada in Wood-
stock and Parry Sound, Ont., both of which repre-
sent the brand’s older design concept.
Newly elected Estevan Mayor Roy Ludwig
welcomed the new hotel.
A $5,000 donation was made to the St. Jo-
seph's Hospital Foundation, which was accepted
by Roxy Blackmore.
Th ere are six types of rooms in the Microtel. A
basic standard has one queen-sized bed, while an
upgraded standard has a queen-sized bed, fridge
and microwave. Th ere are similar rooms except
with two beds available. Th ere are accessible suites
and business class. All rooms have queen-sized
beds.
Th e Microtel adds something not seen in its
competitors: a water slide. But while its pool, wa-
ter slide and hot tub are highlights, the key thing
is the parking lot full of work trucks.
Th e hotel off ers complimentary deluxe hot
continental breakfast, coff ee, high-speed wireless
Internet, weekday newspaper, indoor water park
with hot tub, fi tness centre, parking and business
centre. Guests also have access to valet cleaning
service, a copy/fax / printing service, and a locker
room for oilfi eld workers to store their gear.
Microtel opened its Estevan location on Sept.
24. Manager Al Simoneau said business has been
good, and it has picked up as it got colder. Th ey
have been running close to full during the week,
often selling out two or three days a week. Week-
ends are slower, but that depends on what sports
are going on in town, like hockey tournaments.
Th e hotel has a staff of 23, for the most part
foreign worker who are permanent residents
originating from Ukraine and India. Four of the
Ukrainians have husbands who work on the rigs.
Simoneau noted that the clientele is mostly
corporate and government. “Oilfi eld is at least 50
per cent of it.”
Eric Watson, le , of Microtel Inn & Suites, le , presents Roxy Blackmore of the St. Joseph's Hospital Founda on with a cheque for $5,000, a dona on upon the hotel’s opening.
B26 PIPELINE NEWS January 2013
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Estevan – Th ree years ago, Mission Hotshot Service Inc. was a fl edgling
outfi t, with two trucks and a lot of dreams. Th is past fall the company found a
permanent home in an Estevan industrial park, and is continuing to grow.
As far as locations go, it would be hard to fi nd a better one for a hotshot
operation which spends a large portion of its time picking up loads along
the supply store row on Estevan’s Kensington Avenue. Located on Devonian
Street, they are right beside Weatherford Independent Pump Co., one of their
frequent stops, and just behind TS&M.
“We go there to pick up the pump fi rst and then the rod string. On the
way back, we drop off the old rods elsewhere and then the pump is dropped
off last,” said Clinton Gibbons, who owns the outfi t with his wife Nicole. “Rod
strings around about 50 to 60 per cent of our work.”
It’s typical that whenever rods are pulled on a well, the pump comes out
too, for replacement or servicing.
When Pipeline News did a ride-along with Mission Hotshot in February
2010, they had two trucks and two trailers. “I have six trucks and 11 trailers
now,” Gibbons said.
“Th e location’s great. Th at was a selling feature, and the size of the yard,
too.
“Th ere’s potential to build, and potential for a pipe yard for customers.”
Th ey also have eight people – six full-time and two-part time staff , and
they’re looking for another full-timer. Th us, it was time to have a more perma-
nent home.
Like many start-ups, they had been operating out of the Gibbons’ home.
Having a shop means more overhead, but it also means things can be fi xed
inside. “Which is nice,” Gibbons said. “It’s better than my front yard, freezing,
hoping the neighbours don’t drive over my legs sticking out.”
Prior to moving into the new location in September, they did have a quar-
ter-acre yard north of the Estevan Comprehensive
School. But with so many trailers, there was hardly
room to move around.
“It was just open ground. We barely fi t eight
trailers in there. We’ve been looking for a nearly a
year before we bought,” he said.
Th ey had looked at various options, including
building or buying. He had considered setting up
on an acreage outside of Estevan, but that would
have added travel time.
Page B27
Mission Hotshot secures permanent home
Mission Hotshot has se led into a permanent loca on now, with a shop and yard on Estevan’s Devonian Street. To owner Clinton Gibbons, it means they’re here to stay.
PIPELINE NEWS January 2013 B27
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Page B26"We looked long enough, we knew that was right. I was shown it
Wednesday, and we said yes Friday morning. I do my best thinking while
driving, and I and my wife went to Minot on the Th ursday.
Nicole was key in the hunt for a new home for the business, he noted.
“I envisioned it. I didn’t think it would happen that fast,” Gibbons said
when asked about whether, three years ago, he thought they would be where
they are today.
“Full time guys are averaging about 200 hours a month. Some months are
more, some less.
Th is summer was slower for most service businesses in southeast Sas-
katchewan compared to the previous year, with the drilling rig count down
about 40 rigs province-wide compared to the record setting pace of the sum-
mer of 2011.
“October was approaching average. We had a slow August. Our customer
base is getting bigger, so we’re seeing less fl uctuations from boom to bust.”
“Th e toughest job is hiring people,” Gibbons added.
Th e company is working on putting together a benefi ts package for staff ,
a key recruiting tool.
“You want to try to create a good work environment – something healthy,
something to stick around for,” he said.
As for their human resources strategy, Gibbons noted, “Attitude is the
biggest one. I want someone with a good attitude. Skill set is second. I defi -
nitely look for people who fi t in with what I’ve got. You can teach, but you
can’t change attitude.”
“I just hired a guy from Davidson. He’s got a willingness to learn, and a
get ’er done attitude.”
Some prospective employees said they would come to Estevan if housing
was provided, but he doesn’t want to get into the
accommodations fi eld.
Th e reason for having nearly twice as many
trailers as trucks is that trailers are often left on
site for the client for anywhere from a day to a
week.
“We take trailers out and leave them on loca-
tion for a day or two out there. We just picked one
up that was on location for a week,” Gibbons said.
Six are now equipped with pintle hitches so
customers can more easily move them around.
“Th ey’re not as smooth to pull, but they’re way
more convenient for the customer,” he said.
Gibbons concluded, “In buying a shop, you’re
part of the community. You’re here to stay. A lot of
hotshots, a truck and trailer, come and go.”
In buying a shop, In buying a shop, you’re part of the you’re part of the community. You’re community. You’re
here to stay. A lot of here to stay. A lot of hotshots, a truck and hotshots, a truck and trailer, come and go.trailer, come and go.
““
- Clinton Gibbons, owner,Mission Hotshot Service Inc.
””
B28 PIPELINE NEWS January 2013
SASKATCHEWANOIL & GAS SHOW
June 5 & 6, 2013
Please download form off our website: www.oilshow.caEmail or send to address below
Estevan – With a fl eet of fi ve semis pulling tankers, Wayne Clemens couldn’t
fi gure out why Estevan didn’t have a heavy-duty tow truck. So he decided to get
one.
Two years later, the tankers are gone, and towing and pickers are the focus.
X-Treme Towing off ers the heavy-duty towing, and has the only semi wreck-
er outside of Weyburn, Regina or Brandon in the region. Th at keeps them going,
and has led to an expansion into light-duty towing as well.
“I was at Weatherford for 12 years. Before that, I was in construction,” Cle-
mens said. “I farmed, ran winch trucks, did a bit of everything.”
At Weatherford, he was a service tech for, as he described, “anything in the
fi eld.”
Th e road to towing started with tankers. “I bought some tank trucks. I had
fi ve trucks doing down the road,” he said. “I knew a couple of guys that were
hauling and decided to get into it.”
Th at start was in 2007, just when the Bakken boom started. He got out of
tankers one-and-a-half years ago.
“When you needed a tow truck, there was none around,” Clemens said. He
bought his own, and now works with the local semi dealers when they need a
tow.
Th e heavy-duty wrecker is alternatively known as the “Big Orange Unit”
or “Daisy.” It’s a stretched Kenworth, single steer, tandem truck with a 35-ton
wrecker. Th e truck came out of California.
“Nobody could fi gure out why there wasn’t one in town,” he said. “We’re it,
in the southeast corner. Th e nearest one is Weyburn. Other than that it’s Regina
or Brandon.” Page B29
Pickers a handy addition to towing out t
Wayne Clemens operates the controls of “Daisy.” X-Treme Towing’s heavy duty wrecker.
PIPELINE NEWS January 2013 B29
Page B28“We haven’t advertised or pushed it too much,” he said.
Eventually they added a smaller duallie tow truck to handle light-duty
towing. “Th e little truck is never shut off ,” he said. “Th e big one goes on an
almost daily basis.”
Th ey now take calls from CAA as well as some roadside assistance services.
He’s considering getting another tow truck in between the two trucks. Th e
Estevan area has a lot of heavier trucks around – service bodies, knuckle-picker
dualies, and the like.
“We’re pulling trucks up to 19,000 pounds,” Clemens said. Th e big truck
can be overkill, but it can be a bit much for the small one.
In the meantime, their in-between-sized loads are often handled with a
gooseneck tip trailer with a big winch. It’s pulled by a pickup.
As for the really big loads, like service rigs, they leave that to local
trucking fi rms.
Th is past fall Discovery Channel ran a series called Highway Thru Hell, profi ling a heavy-duty towing outfi t based in Hope, B.C. which covers the
Coquihalla highway. It’s brought a lot of prominence to the towing busi-
ness.
“It’s a good show. Th ere’s a few things we do diff erently,” Clemens said.
One of the standout pieces of equipment of Jamie Davis Heavy Rescue,
the company featured in Highway Thru Hell, is its rotator heavy wrecker.
Th at allows its wrecker arm to rotate to the side, making the machine much
more fl exible for diffi cult tows. But X-Treme Towing can trump that. “We
have three pickers, a 30-tonn, 35-ton, and 28-ton knuckle boom,” Clemens
said.
One is a tandem steer, tandem drive, another is a tandem steer, tri-
drive. “Th ey are just like big rotators,” he said.
Th e knuckle picker, he said, will be used as much as possible in recover-
ies. In late November they used it to fi sh a small car out of the Souris River
near Estevan’s Woodlawn Golf and Country Club.
“We’re kind of unique because of the pickers,” Clemens said. “I saw
a lot of them going down the road, and thought, ‘Maybe we should have
them, too.’”
Th ose pickers aren’t sitting, waiting for a call, however. Pickers, and
more importantly, picker operators, are in high demand in southeast Sas-
katchewan. Th ere are three semis hauling pipe and matting, and the afore-
mentioned three pickers. One semi often assists with towing, doing things
like pulling the trailer of a stricken semi.
As such the pickers are actually part of a side company, X-Treme Picker
Service. “Th ey go steady. Th ey’re never around the shop. We specialize in rig
moving. We’ve got a few dozen service rigs we take care of,” he said.
However, if they do need the pickers for a diffi cult towing or recovery
job, they are available. In their yard in late November, for instance, one was
used along with “Daisy” to lift a burnt-out farm grain truck, allowing a
fl atdeck semi trailer to be backed under it.
Th ere’s also a loader and skid-steer loader in the fl eet. Th e large loader
is not only useful for moving pipe, but in fl ipping semis or acting as an
anchor.
“A lot of times, you need an anchor to turn it,” he said.
X-Treme Towing recently moved to a new shop adjacent from their
previous location on the west side of Estevan. Behind the shop is an impound
yard, a key aspect of the towing business.
“We do impounds for the city police, SGI and RCMP,” he said.
Th e company’s service area is southeast Saskatchewan, and just a little
into Manitoba. “We haul into Regina and up to 17 km into Manitoba. We
permit for some Manitoba loads. We do lots of Carnduff and Oxbow,” he
said.
Asked what’s the best advice for a driver should they ever need a two,
Clemens said, “Th e main thing is to have something to hook onto, and not
just for the oilfi eld. We’re not going to pull off someone’s front end.
“Be ready for the unexpected.”
As for tire chains, he noted, “A lot of times, chains just get you in that
much deeper.”
B30 PIPELINE NEWS January 2013
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Rick Tourand shows a cut-away composite boot, le , and a boot meant for the coldest weather, right.
By Brian ZinchukEstevan – Th ese are not your father’s workboots.
When you went out on your fi rst job, your father might have told you it’s
important to remember your steel-toed boots. At least it used to be. Th ese days,
especially in winter, steel-toes are going the way of the Dodo bird.
Th e big shift in protective work footwear, especially for cold weather, is
composites, according to Rick Tourand, owner of Ron’s the Work Wear Store.
Th e company has locations in Weyburn, Estevan and Carlyle.
Composites have become the trend in all sorts of industries. From new
airliner designs like the Airbus A380 to your kid’s hockey stick, their physical
properties of light weight and strength have seen them supplanting traditional
materials. In footwear, heat conductivity, or lack thereof, is a key point.
“Composites are the current trend in CSA footwear. Th ey’re lighter, stron-
ger, and do not conduct cold,” said Tourand. “Steel conducts the cold.”
Th at makes a big diff erence to the pipeliner standing on a cold, windy
right-of-way all day or a derrickhand up the mast.
About a dozen years ago, there was a brief fl irtation in the industry with
fi breglass-toed boots, but they didn’t pan out and were quickly abandoned. Th e
current composites are not fi breglass. Th ey are a material called epoxy resins,
according to Tourand.
“In a workboot, probably 70 per cent is still steel-toe and plate. In the win-
ter boots, we probably sell 70 per cent composite toe and plate. Th at’s the way
the industry is going.
“Th ey fi nd the toes don’t get as cold, especially the ones who stand most
of the day. Th ermographic testing has been done on these. It proves it doesn’t
conduct the cold.”
Th ermographic testing is essentially imaging
showing heat, such as infrared imaging.
Tourand noted composite boots are also quite
a bit lighter in comparison to steel-toed boots. He
said, “A few ounces diff erence, over two feet, over
thousands of steps a day, adds up.”
When customers come in, they will typically
say, “I need winter boots.”
Tourand responds by asking, “What type of
work do you do? What exactly are you doing? Are
you up the mast as a derrickhand?
“It’s a subjective thing,” he said. “You can see
the same boot, same height, same weight, same
job, and one person will need a -100 C boot, and
another will need -50 C.
Th ere has been a large trend in recent years
toward polyurethane boots. “Th ese are the hottest
things in oilfi eld footwear,” Tourand said, holding
up samples of Baffi n and Cofra boots.
Polyurethane boots, unlike older style rubber
boots, are resistant to invert and distillates used in
some drilling. Th e older boots would simply disin-
tegrate over time. Page B31
Composites in the cold
PIPELINE NEWS January 2013 B31
301 Kensington Ave.Estevan, SK.
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Rick Tourand, right, assists a customer in nding a hardhat liner.
Page B30 “Nothing would stand up. Polyurethane stands up,” Tou-
rand said.
“Th e guys got onto them and started wearing them year-round, winter and
summer. I sell fewer regular workboots because of these.”
In the wintertime, workers will often use a quilted sock known as a Bama
sock. Th ey not only provide additional warmth, but wick moisture away and
keep the feet dry.
“Th ey say it’s like air conditioning for your feet,” he said.
Th e lining inside of the boot has thousands of microscopic cells that pro-
vide insulation. “Th ey trap the body head. Th at’s what keeps you warm in the
winter,” Tourand explained.
“Th ese are my No. 1 style of boot in all three stores. Th ree years ago, they
weren’t a hot item. We sold over 40 pairs (in Estevan) in one week. It’s incred-
ible.”
Often it’s a case of “You see one, you want one.” New workers see what
their co-workers are wearing, and quickly adopt that style of footwear. Yet it
will often be territorial. Th e crew of one rig might be wearing one style, and a
crew of another rig working just down the road will be wearing a second style.
One of the coldest-rated boots Ron’s carries is the “derrick boot.” It’s rated
to -100 C. “I’ve never had a guy complain about cold feet in those. If you get
cold feet, it’s too cold to be working.”
Another new trend in footwear, and most work attire for that matter, is
safety striping with highly refl ective materials. “Five years ago, it was never an
issue. Now everything is safety striped – coveralls, hoodies, high vis., footwear,”
Tourand said.
When it comes to your more traditional style of workbook, the eight-inch
lace-up boots, composite boots are becoming much more common as well.
With a Sympatex lining (an Dupont insulation product similar to 3M’s Gore-
tex), composite toe and plate, Tourand noted, “Th is is as warm as any Sorel
boot out there.”
Th e physical properties of composites also allow for a more box-shaped toe,
as opposed to the traditional concaved steel. Th at box shape is more in keeping
with the actual shape of the foot, Tourand noted.
“Th at doesn’t even feel like a hard toe,” he said.
Sole design has changed too. Th e old style, which would have an outer-sole
stitched to a mid-sole, has been replaced by injection-moulded soles. By being
one-piece, it prevents sole separation and reduces the chances of water penetra-
tion.
B32 PIPELINE NEWS January 2013
Day Day Construction Ltd.Construction Ltd.
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Estevan – Rapid Heating Ltd. fi red up in the spring of 2012 with the
intention of fi ring up their burners.
Th e Estevan-based company is owned by Ed Lukye and Ryan Saxon. Th ey
started operations last spring, and had their equipment on display at the Red-
vers Oil Showcase.
Th e company’s focus is frac water heating.
“Out there they have to warm water for warming the chemical,” said
Lukye.
Water is typically heated to between 20 and 55 C.
Th eir heat exchanger is eight feet across and 18 feet long. “Th is unit has
20 million BTU and a capacity of 4,500 litres per minute,” he said. It has two
Riello burners.
“Th ey suck up 110 gallons of diesel fuel per hour,” he said, which would
explain the two large tanks at the front end of the trailer.
Additionally, they have a 15 horsepower high pressure boiler for steaming
purposes. “We don’t have to wait for another steamer,” said Saxon, adding hav-
ing both on the same unit is not common.
“We can troubleshoot instead of waiting for a high-pressure boiler.
Th e setup has two operators, but Lukye notes, “I’m there to help them. “
Saxon also helps out as needed.
He noted not only can they heat fresh water, but salt water as well, as the
inside of their heat exchanger is stainless steel.
Th eir system can do two tanks at once, but they prefer to do one at a time.
Th e time it takes to heat a tank varies, but it averages around 30 to 35 minutes
for a 400-bbl. tank, taking it from 3 C to 55 C.
Uninsulated tanks in winter have to be heated to a higher temperature
because they lose more heat overnight.
“If it’s too cold, they can’t frac with it,” Lukye said.
Th e heating is done before the actual frac crew sets up. Th ey are not pres-
ent when the frac job is underway.
As a new entrant to a marketplace that has seen a number of frac heat-
ers pop up in recent years, Lukye noted, “It’s crowded when it’s not busy. But
there’s people waiting when it’s busy.”
Th e company is licensed for Manitoba, Alberta, British Columbia and
Saskatchewan.
This large heat exchanger en rely lls the back of this semi-trailer. Ryan Saxon, le , and Ed Lukye are partners in Rapid Hea ng Ltd.
Fired up to heat frac water
PIPELINE NEWS January 2013 B33
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Arcola – Th ere’s one big issue for the town of Arcola when it comes to ad-
dressing the concerns of the oilpatch, and that’s housing.
“Our thing here is living accommodations,” said Harry Laurent, the recent-
ly acclaimed mayor of Arcola. Laurent returned to the position after a three
year hiatus which he spent relocating his two businesses – lumberyard Arcola
Building Supplies and Harry Laurent Construction Inc., to the new industrial
subdivision along the north side of Highway 13. Th e second company special-
izes in building shops for the oilpatch.
In the past three years, Arcola has developed and fi lled two residential sub-
divisions. A third subdivision with 17 lots for sale has just opened up. Th e fi rst
two subdivisions absorbed 12 and 16 homes respectively.
“SaskEnergy and SaskPower just completed installations. We’ve had an
off er to purchase one lot already,” he said.
Th e prices will range from $45,000 to $50,000 apiece. Each lot is approxi-
mately 150-feet by 125-feet in size.
“Th ey’re nice sized lots."
Th e price has climbed over the years. Lots for the fi rst subdivision had
gone for $17,000 to $21,000.
It’s a big change in rural Saskatchewan, when not too long ago, small
towns were selling lots for a loonie, just to attract people to come to their town
and increase the tax base. Laurent personally bought the lot his house is now
on for $2 in 2008. To be fair, they put about $20,000 into improving the lot,
but that’s still a far cry from what a lot in Estevan goes for.
“We have a developer speaking with the town about starting a multi-unit
dwelling,” Laurent said. “He’s kind of looking at rentals.”
Another company has broken ground on two fourplexes. Laurent expects
they will be ready to go in the spring.
His old lumberyard location, on Main Street, had three lots. Th ey have
been purchased and are being considered for either a two or three storey apart-
ment building.
“It’s huge,” Laurent said of the developments underway. “Saskatchewan just
went crazy. If we get these apartments here and the patch dried up, you still
have the service industry,” he said, pointing out that new wells still need to be
maintained, and fl uids hauled from them.
Page B34
This area is the new cabinet-making area, as the old space used for that purpose will be the new home to drywall storage, as well as addi onal oor space for the building supply store. Harry Laurent is the owner of Arcola Building Supplies and Harry Laurent Con-struc on, as well as the town’s mayor.
Accommodations are key in Arcola
B34 PIPELINE NEWS January 2013
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Harry Laurent is the recently acclaimed mayor of Arcola. He returned to the posi on af-ter a three-year hiatus. His twin ventures, Arcola Buildings Supplies, and Harry Laurent Construc on Ltd., have been busy in the mean me.
Page B33As for constructing the new housing, Laurent’s business built one in the
earlier subdivisions, but after that he said, “I went to shops.”
Commercial shops are a lot simpler, and have considerably fewer head-
aches, he noted.
As for Arcola Building Supplies, Laurent said, “It’s a very busy store.”
He took Pipeline News on a tour of the new facility, which in just three
years, they have outgrown. An expansion is underway. Th e cabinet-making side
is being shifted to an addition, and its former place will be used for drywall
storage and additional store fl oor space.
“It’s a good time to own a lumberyard in this part of the province. It’s a
good time to be in business in any aspect.”
Th e growth of the oilpatch has been the driver, but he noted, “One of my
favourite slogans is, ‘oil can make you money, but it can cost you money.’”
By that he means local businesses have to try to match wage increases in
the oilpatch, lest their employees jump ship.
“I’d hire three more in a heartbeat, but you can’t get ’em,” he said. “Kids out
of high school can start at $26 an hour, and I start at $14.”
Back in the saddle
Pad drillingA series of new wells has sprouted up just a few miles east of Stoughton.
Photo by Brian Zinchuk
PIPELINE NEWS January 2013 B35
Lloydminster – A growing concern for safe winter driving in the oil and
gas industry combined with an early snowfall whipped up a powerful storm of
work orders for winter tires this season at Kal Tire in Lloydminster.
January and February are vacation months, but it was all hands on deck
during a crazy pre-season rush in October that began to slow down the week
of Nov. 19 when manager Adam Mountney caught a break.
Mountney said he and assistant manager Colby Moan were both chipping
in with sales and service work during the crunch period and was glad to have a
minute to talk about their ordeal by fi re.
“We’ve had about six straight weeks of winter rush – lots of tire putting
on,” said Mountney who has been managing Kal Tire stores for 10 years in-
cluding the past three years at the busy Lloydminster shop.
“In October and November, we pretty much do two months in one. It’s
pretty much the meat and potatoes of our year.
“In the morning, we’ve had 10 to 15 people waiting outside an hour before
we open at 7:30 a.m. to get in fi rst because we are fi rst come, fi rst served.”
In the busiest four week period, the Lloydminster shop sold more than
1,300 tires mostly to oilfi eld company fl eets from pickups to heavy oil haulers.
Th ey also installed about 400 customer car and trucks tires in early winter
driving conditions.
“Safety is the driving force behind oil company fl eets switching to snow,”
said Mountney.
“I know up in Fort McMurray and area, you can’t even go up there unless
you have winter tires on now on a lot of lease sites.
“It’s better for traction and safety. Th e biggest concern is safety for their
people on the road.”
Kal Tire is Canada’s largest independent tire dealer serving retail, commer-
cial and mining customers with up to 19 brands for car and light truck tires.
In Lloydminster, the Bridgestone Blizzak is Kal Tire’s best selling tire for
cars and light trucks.
“It seems that’s a real well known name. Everybody feels that’s the best
one. It’s got a real soft block and lots of snipes in the tread,” said Mountney.
“Every year within two weeks of winter they will be sold out. I had guys
order them in April to make sure they got them when the snow fl ies.”
Some pickup fl eets and consumers are also asking for studded tires from
Nokian for performance and safety in the icy road conditions prevalent in the
Lloydminster area.
“We fi nd it’s more icy than snowy in Lloydminster. Especially when they
go for the studs, that’s what they are looking for – the starting and stopping
versus the lateral stability,” said Mountney.
“More people are going to studs. Th e only complaint is they’re noisy, but
the traction once they try them, it’s hard not to run them ever again. Usually,
when they run them, they want them all the time.”
Th e Bridgestone M775 steel radial is the best selling new tire for heavy
crude haulers.
It has an extra deep tread for long original tread life and special com-
pounds to resist cuts, chips, tearing and irregular wear.
Th e Lloydminster shop has seven full time and three part time employees
who turn into super heroes without capes when the going gets tough – as it did
with the second snowfall of the season.
“At one point, I had four lines on the go. We were all in the back. I left one
person in the offi ce and I actually put three lines on hold with one incoming
just so we could keep up,” said Mountney.
Page B36
Tire changessnowball at Kal Tire
B36 PIPELINE NEWS January 2013
FAX: 306-453-4476BOX 40, CARLYLE, SASK. S0C 0R0
www.evergreenenviro.ca
306-453-4475
* Environmental Protection Plans * Impact Assessments * Pre-Site Assessments * Environmental Audits & Assessments
* Well Site & Battery Abandonments * Drilling Waste Management * Pre/Post Water Well Testing * EM Surveying * GPS Mapping
* Formerly “Three Star Environmental”
Page B35“Some mornings
right off the hop, we will
have 80 tires to put on
and then we are explain-
ing to guys 20 minutes
after opening that it’s
a day wait – drop it off
and we’ll tell you when
it’s ready.
“It pays to be fi rst in
line especially when the
snow fl ies. Everybody
waits until that snow
hits the ground before
that light goes on saying
‘hey I need them on.’”
Surprisingly, retread
tires for oilfi eld semis
and trailers outsell new
tires almost 4 to 1 with
Kal-Tire’s fl eet custom-
ers such as Wes Can,
Husky, Trican and Hal-
liburton.
“Defi nitely it’s about
cost savings,” said Riley
Cowan, outside sales
manager who noted a
large retread truck tire
could cost $300 com-
pared to $600 for a new
one.
“You get about 80
per cent of the life of
what you’d get on a
new tire. Th e cost per
kilometre is what we
typically sell by, so there
is anywhere from a 30 to
50 per cent cost savings.
“For a larger fl eet,
you multiply that by the
number of wheel posi-
tions.”
Each week, Kal Tire
fi lls up a trailer with up
to 132 used oilfi eld tires
to be sent to the Bandag
retread facility in Regina.
“You can retread a
casing more than once.
With the initial pur-
chase of $600 for a new
tire, you can get up to
nine retreads on one cas-
ing,” said Cowan.
“Not only does
it save the company
money, it saves the
environment because it’s
recycling.”
Th e Bandag BDY2
is the best selling
single or tandem oil-
fi eld retread designed
for enhanced traction
on unimproved road
surfaces.
Kal Tire can install
and service winter tires
on up to four semis
at a time in a covered
outdoor pad at the back
of their shop.
A typical semi will
need eight winter drive
tires with a life expec-
tancy of between 80,000
to 100,000 kilometres in
the Lloydminster area.
“Lease roads chew
them up and they are
busy, so they won’t
always come in and get
them rotated in time,
which kind of cups them
and creates wear,” said
Mountney.
Kal Tire however,
dispatches one of its
service trucks daily to
check the yards of its
fl eet customers as part of
a preventative mainte-
nance program.
“Before those trail-
ers head out on the road,
we’ve got a guy who
goes out and hammers
on every tire looking for
fl ats or worn out tires,”
said Cowan.
“We try and take
care of it and eliminate
the downtime. While
those trailers are down,
we are servicing them.
“It keeps the cus-
tomer happy and keeps
them coming back to
Kal.”
Cowan makes
regular sales and service
trips to Husky which has
grown to become Kal-
Tire’s largest account
after starting with 14
trailers in 2007.
“Th ey’ve grown im-
mensely and, of course,
the business we’ve done
with them has grown
immensely,” said Cowan.
“Retreads play a
signifi cant role in how
they were able to expand
so quickly.”
“What we try
and do is prove to the
customer that what we
can provide for them is
above and beyond what
the competition can
provide.
“Obviously, we want
to lower their operating
cost or it wouldn’t make
sense for them to switch
from their current sup-
plier to what we do.
“We accomplish
that by purchase reports,
retread reports – give as
much information as we
can give to that cus-
tomer so that it makes
their buying decisions
that much easier because
they’ve got all the infor-
mation.
“Our company is set
up quite well to provide
that extra value to them.”
Kal Tire also has a
journeyman on staff for
front end brake and sus-
pension work on smaller
cars and trucks.
Retreading tires a busy business
31/2 miles South of Estevan on Hwy 47(35 of 1 of 8, West of the 2nd)
PIPELINE NEWS January 2013 B37
LECLAIRTRANSPORT
Lyle LeclairCell: 306-421-7060
General Oilfi eld HaulingCordell JanssenCordell Janssen
District ManagerDistrict ManagerDownholeDownhole
93 Panteluk Street, Kensington Avenue N93 Panteluk Street, Kensington Avenue NEstevan, SaskatchewanEstevan, Saskatchewan
PHONE:PHONE: 306-634-8828 • 306-634-8828 • FAX:FAX: 306-634-7747 [email protected] • www.nov.com
JUSTIN WAPPEL - Division Manager
401 Hwy. #4 S. Biggar, SaskatchewanPO Box 879 S0K 0M0Ph (306) 948-5262 Fax (306) 948-5263Cell (306) 441-4402 Toll Free 1-800-746-6646Email: [email protected]
Lloyd Lavigne • Kirk ClarksonOwners/Managers
6506 - 50th AvenueLloydminster, AB
Phone: (780) 875-6880
5315 - 37th StreetProvost, AB T0B 3S0
Phone: (780) 753-6449
Fax: (780) 875-7076
24 Hour ServiceSpecializing in Industrial & Oilfield Motors
Your best choice
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• Full kitchen and upscale extended stay• Complimentary continental hot breakfast
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Reservations: 306-453-2686
RICK CORMIERManager
Box 609 Bus: (306) 634-8084Carlyle, SK Cell: (306) 577-8833S0C 0R0 Fax: (306) 453-6075www.truetorq.ca [email protected]
RESOURCE Gu de
Arcola – If there’s one thing you
can never seem to fi nd enough of, it’s
shop space for fl uid haulers in the
winter. Th at, and housing, are always
in short supply and high demand.
Th ose are two birds Harry Lau-
rent is trying to kill with the same
stone. Th is winter he’s planning on
building 10 units in a “trucker condo”
confi guration.
Th e idea is to build shop space for
individual trucks, and make the back
of the shop into a two-storey apart-
ment.
Each unit will be 100 feet long.
Th e fi rst 85 feet will be truck shop,
and the rear 15 feet will have a two-
storey apartment with roughly 1,000
square feet of living space.
Each shop and apartment unit
will be separated by a smoke wall.
“We hope to make it into a
condo. We’re going to start on them
soon,” Laurent said on Dec. 4.
As for the location, he has fi ve
acres behind his lumberyard, Arcola
Building Supplies. His other venture
is Harry Laurent Construction Ltd.,
which specializes in shop construc-
tion. Th at location also is puts it in
easy access to Highway 13, right on
the Bakken fairway.
“I would hope we would have
them done by spring,” he said. “If I
had them now, they’d be going like
hotcakes,” Laurent said in reference to
the condos.
“Th ey’re basically designed for
one person. A lot of people have their
own truck, and no place to stay.”
Laurent has done a lot of con-
sultation in the industry, particularly
with fl uid haulers, and they tell him
he’s on the right track. “Every time he
puts a truck in a bay, he had a place
for the man to live.”
Th e units could be sold individu-
ally, or in blocks to larger fi rms.
Units will have appliances in-
cluded, and may have a deck built on
the back.
Friends in Alberta sharing ideas
helped inspire the concept.
“I’ve researched this for about a
year. In my mind, it should fl y. It’s a
fairly expensive gamble, but I think it
will fl y.
“It’s going to be their home.
We’re going to have to make it nice.
Condos for the driver and their truck
Winter DrillingCanElson Drilling Rig 16 could be found drilling between Kisbey and Forget in early December.
Photo by Brian Zinchuk
B38 PIPELINE NEWS January 2013
We require the following:
Matrix Well Servicing
Slickline DivisionWe are seeking dynamic and motivated
Field Assistants for our Estevan location.
Do you possess?• A valid driver’s license (minimum Class 5)• Previous Slickline and E-Line experience is an asset but not required. We are willing train the right candidate!
** Guaranteed Salary, Job Bonuses andFull Benefits!**
*Successful applicants must be willing to submit to and pass pre-employment testing*
Please apply online at:www.pure-energy.ca
We thank all applicants for their interest; however, only those considered for an interview will be contacted.
101 Supreme St. (Shand access road)
Class 1A & 3A PreferredAbove Industry Wages
Benefits PackagesOpportunity for AdvancementEmail: [email protected]
Fax 306 634 1200 • Cell 306 421 3418
SERVICE RIG PERSONNEL
Oilfield Construction Limited
NOW
COME JOIN OUR TEAM! We’re hiring for various
projects throughout
Southern Saskatchewan
Over 50 years strong, Arnett & Burgess Oilfi eld Construction Limited safely
provides quality pipeline construction, facility installation, pipeline integrity, custom fabrication, maintenance and
related construction services to the energy industry.
Compensation:Competitive wages
Overtime Daily Subsistence /Living
allowance
Preferred Certifi cationsH2S Alive
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Required Certifi cations Driver’s License
Ground Disturbance – (Heavy Equipment Operators only)
For more details and other career opportunities please visit:www.abpipeliners.com
For Inquiries please call: 780.384.4050
Please submit your resume to :email: [email protected] • Fax:403.265.0922
• CONSTRUCTION MANAGER- Candidates must have previous leadership/managerial experience within the Pipeline Construction industry (mainly underground lines max 16”).This position’s home base is in Regina.
• FIELD SAFETY ADVISOR- The ideal candidate will have a CSO designation. This position will oversee pipeline construction projects in southern sk with a home base in Regina
• PIPELINE CONSTRUCTION LABOURERS
• FOREMEN
• HEAVY EQUIPMENT OPERATORS-Employee & Owner Operators with Pipeline Construction Experience
All positions require previous experience in Pipeline Construction. Previous experience on Pipeline Integrity projects is an asset.
CAREER Gu de
PIPELINE NEWS January 2013 B39
EMPLOYMENTOPPORTUNITYMcNeil Plumbing and Gas Fitting
based in Redvers, SK is looking for:
Experienced Plumbers/Apprentice Plumbers/HVAC
Technicians
• Wages up to $40/hour • Overtime after 8 hours • Use of company cell phone and company truck • Full bene ts after three months • Living accommodations available
To apply call 306 452-5199 or email jason_gas [email protected]
B40 PIPELINE NEWS January 2013
NEWSPIPELINE SECTION B
January 2013
The Port of Churchill is no stranger to tanker tra c. For decades, tankers were used to bring in fuel to supply the joint U.S.-Canadian military base. The tank farm can be seen behind the grain termi-nal. Now these facili es are being considered for expor ng West-ern Canadian crude oil.
Photo courtesy the Churchill Gateway Development Corpora on
Port of Churchill considered for crude export By Brian Zinchuk
Winnipeg, Churchill, Man. – Work is underway for another export outlet for
Western Canadian oil, but it’s not where you might expect. If successful, this
oil will not be going west, to the Pacifi c coast, or via pipeline south or east. No,
this route leads north.
Th e idea is to ship light crude oil by rail to the Port of Churchill, Mani-
toba, where it will then be loaded onto tankers. Th ose tankers could then carry
the oil to refi neries on the East Coast of Canada or the U.S., the U.S. Gulf
Coast, or Europe.
Canada’s northernmost port has an important feature. Its entire reason of
being it is has been the closest tidewater port for prairie grain. Th at also makes
it the closest port for Saskatchewan oil.
Jeff McEachern, executive director of the Churchill Gateway Development
Corporation (CGDC), spoke to Pipeline News on Dec. 7 via phone from Win-
nipeg, where they are headquartered.
Th e CGDC is a non-share, public-private partnership and includes
representation from the government of Canada (Western Economic Diversi-
fi cation), the province of Manitoba and OmniTRAX, Inc. OmniTRAX is the
private owner/operator of the Port of Churchill and the railway that serves the
port, the Hudson Bay Railway Company. OmniTRAX, bought the rail line
over a decade ago.
“Early this year (2012), we received a call from a producer who wanted to
ship oil from the port,” McEachern said.
“Th ere’s a lot of moving parts at this point. "
Th at got the ball rolling. Th ey have been meeting with producers, mid-
streamers and refi ners, and studying the economics. Th at studying has led them
to “become comfortable that this has some legs.”
“Our proximity to producers is pretty good,” he said, noting how close the
port is to central Alberta and southeast Saskatchewan oil production. “Strategi-
cally, we’re good for Eastern Canada and Europe.
Th e total volume of shipments they are aiming for is rather small in com-
parison to Canadian production. “It’s about 2 million barrels (per year) is what
we’d like to work towards.
“Th at number is a comfortable number.”
Put in perspective, that would be less than four-and-a-half days of Sas-
katchewan’s total production. Put another way, it would be roughly 50 days of
shipping from Crescent Point’s recently-expanded 40,000 barrels per day rail
loading facility near Stoughton.
He acknowledged, “It’s insignifi cant based on production in the market.”
But it is another option.
Asked if they were targeting smaller, more nimble junior producers, or
larger ones, McEachern said, “At this point, the entire market is our target
market.” Page B2
B2 PIPELINE NEWS January 2013 2012
Page B1Improved car effi ciency
One of the key factors in shipping crude-by-rail is the availability of tanker
cars. It can take 20 to 30 days for a car to be shipped to the Gulf or East Coast
and back. But a run from southeast Saskatchewan to Churchill is substantially
shorter.
“From southeast Saskatchewan, a re-
turn cycle, including unloading, is probably
16 days,” he said. Th e result is a substantial
increase in rail car effi ciency. You can ship
more oil using the same number of cars.
Th e Churchill Gateway Development
Corp. won’t be providing cars, however.
Th at’s up to the producers, midstream
companies or refi neries.
While geography is a benefi t, it also
has its challenges. Churchill is far from
being an ice-free port. It’s shipping season
is from July 31 to Oct. 31.
“Th e shipping season is dictated by
vessel insurance,” McEachern said. “Last
year we probably could have shipped until
Christmas due to ice in the bay. Global
warming has had an eff ect on the ice.”
Th e insurance companies haven’t
adjusted their season yet, but he noted they
are aggressively working on it.
“Adding one month to a four-month
shipping season is a big pickup,” he said.
A few weeks at the beginning of the season, and a few at the end, would be a
great benefi t. Going further into the fall would make a substantial diff erence to
their grain shippers, extending the harvest shipping window.
As for ice, McEachern said no grain vessels have experienced ice issues in
recent years.
“It hasn’t been raised as a concern by charter owners or vessel agencies.”
Th e Labrador coast is known as iceberg alley. Th ere’s a fair amount of traf-
fi c, with grain traffi c and ships servicing Nunavut mines, he noted. “Th ere’s no
documented accounts of problems in the grain shipping season,” he said.
Environmental concerns have been the Achilles heel for other shipping
options, including the proposed Northern Gateway pipeline and Keystone XL
pipeline.
Whereas Hudson Bay is similar in size to the Gulf of Mexico, the latter
has thousands of vessels that can mount a response with booms and skimmers.
But there are precious few vessels in the entire Hudson Bay. Asked how they
would mount a response to a spill, McEachern said it is part of the operational
plan they are working on, but it not fi nalized or ready yet. Similarly, the en-
vironmental assessment is part of their engineering work. He noted they are
working will all appropriate agencies.
Tankers are not new to Churchill, not
by a long shot. Th ere’s a substantial tank
farm in Churchill that was built to sup-
port the former U.S. and Canadian joint
military base there. Tankers used to be
used to bring in fuel, but now that comes
in by rail. Just a fraction of the tank farm’s
capacity is currently used for refi ned
products – diesel, jet fuel, gasoline. But it
can also be used for crude. Th e system can
both receive and ship petroleum products.
“It’s bi-directional,” he said.
Th e tankage has a total capacity of
250,000 barrels. McEachern said they
anticipate approximately 200,000 bbl.
could be used for unrefi ned product. Th e
remainder is used to service the commu-
nity.
“We’re evaluating our storage capacity
right now,” he said.
Th at’s not enough, however, to fi ll a
ship.
“Th e ships we’re looking to fi ll are 250,000 to 300,000 barrels,” McEachern
said.
However, with full storage and the ample rail storage they have, they can
easily fi ll such a ship.
For the sake of modelling, they are working with the current capacity for
the fi rst year or two, before looking into additional storage.
“Th ese investments are driven by the market,” he said.
As far as ships go, that tanker size is relatively small. Th ey are targeting six
to eight ships a year. Th eir combined capacity would equal just one very large
crude carrier (VLCC), also called supertankers, and be half of the capacity of
the largest ships, ultra large crude carriers.
Seventeen grain vessels were loaded at Churchill during the 2012 season,
with destinations ranging from Columbia to Kenya. Most of the destinations
were in Africa, with Europe being the second most frequent destination.
Rail capacityOne of the concerns Canadian National raised in the 1990s was the capac-
ity of the rail line to handle heavier traffi c. At the time, CN said they could
only ship grain in boxcars on that line, instead of heavier hopper cars. Omni-
Trax has been able to overcome that, however, and routinely uses hopper cars.
Th e portion north of Gillan in particular, built on permafrost, has its
speeds reduced. “Th at piece of line has seen a lot of upgrades in the last 10
years,” he said.
Oil tanker cars are not much diff erent, according to McEachern, and while
their weight capacity is slightly lower than Class 1 railways (268,000 pounds
per car versus 286,000 pounds). Rail tanker cars are typically loaded between
600 and 650 barrels based on the weight capacity of the rail line, not the vol-
ume capacity of the cars. Th ey are using 600 barrels per car in their calculations.
Th is summer targeted“Th e target is to have a vessel loading in July 2013,” McEachern said. Th ey
are hoping to have commercial agreements in place in the coming months.
Ice has not been a problem for grain shipments
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PIPELINE NEWS January 2013 B3
By Josh SchaeferFor Pipeline News
Saskatoon – It’s a common sight everywhere you
go in the oilpatch: precious few tradeswomen, but,
Edmonton-based not-for-profi t Women Building
Futures is on a mission to change that.
“What we’re seeing right now is a real shift,”
said president and CEO JudyLynn Archer. “You’re
seeing more women expressing an interest in fi nding
out more information about these kinds of jobs and
industries and we’re seeing a signifi cant shift in terms
of the industry being really open and interested in
hiring more women.”
Women Building Futures recruits and trains
women for the industrial, institutional, construction,
mining, roadworks and the oil and gas industries.
“It has been traditionally a male industry, the
same as health care has been traditionally female,”
said Archer, noting a large increase over the last six
years of women coming into the workforce.
“You have a lack of awareness in women about
these industries, now more and more women are
fi nding out about these jobs.”
Archer estimates that 10 years ago, about three
per cent of construction related tradespeople in Al-
berta were women. Th at number today is at four per
cent. “It might not sound like a lot, but that’s actually
a lot of individuals needed to move that needle.”
Women Building Futures has been responsible
for 650 tradeswomen coming out of their program
into industry and in 2011 they had more than 2,600
women contact them for more information about
getting into industry related work.
“As more and more women learn about these
opportunities, more and more women are coming
into the industry,” Archer said.
“In terms of the retirement of the baby boomers,
Saskatchewan is looking at unprecedented growth.
We’re going to need more people and in fairly large
numbers to replace the retirements.
“Can women do this work? Yes, of course they
can,” Archer said, speaking about the pipeline work
specifi cally. “I don’t think many women know too
much about that particular segment of the industry,
and I’m not convinced that the pipeline industry
reaches out to women.”
Archer noted that in the awareness campaigns
that her organization has been running for the past
10 years, they exclusively use photographs of women
in their literature.
“It’s just like any other type of marketing, you
target your images,” Archer explained. “Women re-
spond to those pictures. We would love to work with
the oilpatch to do more of that. It’s certainly paying
off for the construction sector in working with us to
get their name out to women in Alberta.”
Working with large and small companies in
the construction and oilsands sectors, Archer noted
that they do not currently work with any companies
involved in the oilpatch.
“We have to let women know that these oppor-
tunities are out there and these companies are actu-
ally looking to hire, they need people whether they
are male or female. Th ey’re looking to hire people
with the right skills.”
Women Building Futures focuses their attention
on the 100 women they help annually in several key
areas. “Th e fi rst thing we do it get information out to
raise awareness.”
Th e second step is assisting the applicant in
making a determined and well informed decision
about whether the chosen career is a good fi t for
their lifestyle.
Women Building Futures then provides the
necessary training, workplace culture preparedness
training, safety training and helps to develop the
skills that are required for the chosen career.
“At the end of the program, our job is to make
sure that our students, when they graduate, go to
work and continue to work in that fi eld. We provide
ongoing coaching and mentorship as long as she
needs it.”
Archer says that this helps make the diff erence
with the companies that Women Building Futures
works with.
“We don’t just train people, we try our best to get
the right people into the right training program and
into employment that they will maintain for the long
haul.”
“As more and more women start to apply for
these jobs, we’ll see more and more of them out
there, and we see it every day,” Archer said.
Women Building Futures was in Saskatoon on
Nov. 26, hosting a Best Practices for Hiring and
Retaining Tradeswomen workshop.
“I thought it was really well attended,” Archer
said. “We had a really good conversation about
what’s working now and we can do to improve this
entire eff ort of getting more women working in
industry.”
A good mix of people attended, ranging from
post-secondary students, to industry and mining as
well as people involved in apprenticeship programs.
“Th ere’s a role of industry in terms of making
sure that once we’ve attracted these great people, we
need to retain them” Archer said in conclusion.
More women needed in the patch
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By Brian Zinchuk
Estevan – Estevan, the Energy City, has a new
mayor, but one who has plenty of experience on
city council and who is aware of the booming city’s
challenges.
Mayor Roy Ludwig had been a member of
council for 18 years prior to being elected mayor.
Pipeline News spoke to Ludwig after he was elected
to the post in late October, and again in early De-
cember.
Ludwig, has spent 36 years as a coal miner with
Sherritt Coal, which has had many names over the
years, working in a number of roles over that time.
Currently he works on the pump crew, dewatering
pits. “It’s a constant job. Th e water is always leaking
in constantly. I am on a team, usually four of us per
shift, that keeps the pits dry so they can take the
coal out.”
“I have a blue-collar job,” he said. “I like it,
because it involves a lot of walking and keeps me in
shape.”
He grew up on the family farm east of Lamp-
man. In his younger days, he spent some time in
Edmonton before working with SaskTel in Regina.
Ludwig soon tired of the city, and returned to
Lampman, where he took over the Lampman open
line telephone exchange before SaskTel took it over.
Th is led to him starting at the mine in November
1976.
His experience in mining ranges from loading
boxcars, oiling on draglines, to blasting and being a
brakeman on the locomotive and a tire technician.
Now his new job (in addition to being a miner),
has him leading City Hall.
“Some of the issues we have before us is man-
aging growth. We have a lot of growth in our city
right now,” Ludwig said. “We have a lot of chal-
lenges associated with growth. We’re working con-
stantly with the government on aff ordable housing.”
“Th ey’ve got a few programs out now. One
we’re looking at is the capital rent subsidy, a pilot
program.”
Th e city will also be seeking infrastructure
money from the provincial and federal govern-
ments. “Hopefully through these programs, with
the provincial and federal governments, it will al-
leviate the need to have to keep going the tax base.”
“Aff ordable housing is a big issue. Continued
infrastructure needs – roads, water mains, sewers,
sidewalks.”
Housing is a key issue for Estevan, which has
been a chronically tight market for several years,
especially since the onset of the Bakken oil boom.
Th at, combined with the hundreds of workers
taking part in the Boundary Dam carbon capture
project, has meant rising rents, high housing prices
and scant supply.
“We’re spending $40,000 on a housing study to
give insight,” he said. It’s similar to a project Wey-
burn did in recent years. Th e money was approved
in the last Estevan budget.
For several years, private development of a large
parcel on Estevan’s northeast corner has been talked
about, but has not come to fruition. “We’re getting
closing to inking a deal with Essex Developments,”
he said, referring to the developer. Th at parcel could
result in hundreds of lots eventually becoming
available.
Another company, Trimount Developments,
has started development of residential property on
the city’s north side.
Th e new hotels are coming along, he added,
opening up more accommodations.
One of Estevan’s limitations to development
has been the ability to supply adequate water pres-
sure, particularly on the north side of the city. Th e
current construction of a new water reservoir on the
west side should soon alleviate that constraint.
“We can start looking north of the city, towards
the truck bypass,” he said. Part of that eventual
development will be industrial, but council and
planning will need to make decisions as to where
that will be.
A few years ago, Estevan opened the Glen
Peterson Industrial Park on the city’s east side, now
home to Canyon Technical Services, Acklands-
Grainger, Regens Disposal and the Saskatchewan
Energy Training Institute. However, the park is still
largely empty.
“We have more land available,” Ludwig said
when asked about industrial land available for de-
velopment. “Th at’s where we would like to see new
players set up.”
Several companies have told Pipeline News they
found that land to be pricey. Ludwig responded
by saying the prices were comparable to Weyburn,
adding, “We feel the price is fair, but if we’re not
competitive, we’ll take a look at it, absolutely.”
“Quite a few are setting up in the RM (of Es-
tevan),” he noted, citing a development agreement
with the RM. Th e city provides potable water to
many of these sites.
He noted that development levies for places
like Estevan and Weyburn are likely going up.
“Our development levies haven’t changed for a
number of years. Council will have to take a serious
look. Regina raised theirs considerably.”
“Th e costs will not be going down. Land prices
in Saskatchewan have been increasing.”
One continuing frustration for the city has
been the lack of progress on the truck route, which
was announced in the 2008 provincial budget at the
same time as Yorkton’s bypass. But while Yorkton’s
route has had several phases built and opened, Es-
tevan’s has yet to scratch dirt.
“We’re frustrated the bypass isn’t in place yet.
But having said that, we’re working closely with the
provincial government to make it happen.”
To that end, Ludwig said he met with High-
ways and Infrastructure Minister Don McMorris
along with former mayor Gary St. Onge and city
manager Jim Puff alt just before the election.
“Th ey’re in the acquiring state. Th ey’ve upped
their initial off er considerably,” Ludwig said, refer-
ring to the price off ered to landowners along the
corridor. Several land acquisitions along the route
have had an impact on what is seen as fair market
price, much more than the $1,000 per acre that
was initially off ered. A 400-metre wide corridor is
planned.
Th e landowner’s initial response was not fa-
vourable. Page B5
New mayor takes the reigns in Estevan
PIPELINE NEWS January 2013 B5
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Estevan’s newly elected Mayor Roy Ludwig a ended the grand opening of the new Microtel Inn & Suites just before being sworn in as mayor on Oct. 29.
Page B4“We are hoping the impasses as far as the land dealings go can be brought
to a successful conclusion.”
“We hope a deal can be made so they can move forward,” Ludwig said.
“We feel it’s important. Our streets are suff ering as a result of the heavy truck
traffi c. It will alleviate costs on fi xing a street, and a few years later, fi xing it
again.”
With SaskPower now shipping fl y ash to the Estevan rail yard for ship-
ment, he said the city is hoping to see mitigation money from the Crown to
assist with its roads.
As for the Boundary Dam Unit 3 carbon capture project, he said, “We’re
very excited the federal government and province came together to make this
happen, along with SaskPower.”
“We’ve already got countries like China visiting, and it’s not even com-
plete,” he said. “With this cutting edge technology, we will be the envy of all
countries with coal power production.”
Ludwig hopes that SaskPower will choose to use the “clean coal” technol-
ogy on all its coal-fi red generating units. It would mean continued production
for the local coal mines and long-term stability for the power plants.
“It means more jobs, continued jobs. Th e coal mines and power plants have
been around for a long time. It means a long term commitment from SPC
(SaskPower Corporation) and Sherritt Coal."
Th e new council has set as its main priority in 2013 the completion of ex-
isting projects, like the paving of the large parking lot areas around the princi-
pal recreational facilities in the centre of the city. In addition, he noted, “Th ere’s
a lot of paving that we’ve fallen behind on.”
Over the past year, City Hall has been sensitive to the idea that crude oil is
being loaded onto rail cars from trucks in the Canadian Pacifi c railyard in the
centre of Estevan.
“We are the Energy City. I embrace the oil industry. Th ey put a lot of mon-
ey into our community. What we’re trying to do is, through dialog with CP
and Cenovus, we are looking at other alternatives. For one thing, it is cramped
for them to get in there. It is tight. Th ere’s only room for so many cars, whereas,
on a bigger siding, they could have much more production as far as loading.
“We’re working with CP, we’re working with Cenovus, to fi nd alternatives.
“One of the alternatives we have suggested is City-owned land toward the
landfi ll. We have land adjacent to the CP track at the landfi ll site. Th e land is
there. We were looking at an arrangement where here’s the land, you put the
track in. We’re still in discussions.
“It could be a bigger siding for them, but they haven’t got back to us.”
Ludwig said oilpatch companies have been great corporate citizens, with
lots of donations coming into the community from them.
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By Brian Zinchuk
Weyburn – With a four year mandate and an 87 per cent plurality of the
vote, Weyburn Mayor Deb Button has her eye on growing her community.
Pipeline News spoke to her not long after the October election to see what her
city’s plans were with respect to the oilpatch and its needs.
Asked how the City of Weyburn plans to meet the needs of the energy
industry, Button said, “We’ve been working hard at that already. You’ll notice, if
you paid any attention to election issues in Weyburn, part of the discussion was
district planning. We have been working very closely with the RM of Weyburn,
planning how we will develop around the city of Weyburn.
“We’ve also been very diligent with the housing advisory committee. We
have two studies we’ve done. Th e fi rst one the committee did was a needs as-
sessment for the city of Weyburn. Obviously, the oil and gas industry has a
huge impact on housing in our community. Th e second study was the business
plan for housing.
“Both of those, there’s no way to measure their impact, truly. Th e fi rst one
we got, the needs and demands study, our committee opened it up and said,
‘What the heck is this? Th is is not what we were thinking we were buying.’
“As it turned out, as developers showed up, we started putting it into
their hands and it was exactly what they needed. We’ve had great success with
developers coming in because of the needs and demands assessment we did.
Moving forward with the housing plan we now have, our housing has made
great strides. We know where we’re going. We know where we’re developing.
We know how many houses and units will be put in the community in the next
several years. We know what our target is and our goal.”
As for what those targets are, Button said, “It’s longer than a four year plan.
It’s in the hundreds. We know we’ve reached those targets. Th e community of
Weyburn has opened up lots itself. We had 700 lots on paper three years ago.
Since then we’ve opened up some of that area. We now have private developers.
We’ve annexed some land from the RM that are opening up more. We’ll see
more coming in the fall.”
Asked about the issues beyond housing, she noted, “Ebel Road (an indus-
trial subdivision) is fi lled up, what’s developed of it. But that’s just a portion of
the plan. It loops and there’s more to it. We’re ready to open that up.
“We are taking a look with our district planning. Maybe there is some
development more suited to the RM. Certainly we would approach the RM to
take that development. Th ere’s some that would be more suitable to the city of
Weyburn. It’s not all about growth in our boundaries. It’s about growth in our
area.
More dirtwork is needed to be done on the Ebel Road project, expected to
be initiated this spring.
“Highway commercial may be an issue for us, but I don’t think we’ll be
caught short. “
Th e city has seen expansion in its hotel sector, including the recent rebuild
of the Travelodge. Microtel has announced a new hotel for Weyburn. Button
said, “I suspect by spring we’ll see movement on the land. We’ve been in con-
versation with them for quite some time.”
Th at hotel will be near the Walmart.
As for other future developments, she said, “Th ere’s lots of dirt-kickers
always around. We’re thrilled to have them and to show them the community.
Some materialize, some don’t.
She noted Weyburn is Saskatchewan’s second-fastest growing city, second
only to Lloydminster, which is partially in Alberta. Th e census data is impor-
tant in calculations of vacancy rates.
“We know what our vacancy rate is moving forward, which will help us
in our housing plans as well. We’re looking at Habitat for Humanity. Our
ministerial association, along with the city of Weyburn, is spearheading those
projects. We’re hopeful come spring or summer we’ll have a project underway.
“With our population increase, we’ll now be on the radar for a bigger
stores, chains looking at our communities. It’s hard to get them to look at com-
munities under 10,000. Th ere’s a wish list in the community. A grocery store is
No. 1. Th e community feels we can support another one,” Button said.
As for other issues, she said, “Certainly we’re seeing an increase with our
police calls. I don’t believe it’s anything our members can’t handle at this point.
We know we’re just under what the provincial number is per call per member.
We may have to look in the future at adding more offi cers. It has big budget
implications, of course.
“We’re managing. We’re doing alright. Th e community has really changed,
I will say that. I don’t mean it’s changed from its core values; the values I ap-
preciate and love. What’s at the heart of the community is the quality of life,
and that hasn’t changed. But what has changed is the faces. You see a lot of
diff erent faces. Th e demographics are changing considerably.
Page B7
Weyburn seeks to take away housing pinch point
PIPELINE NEWS January 2013 B7
Deb Bu on was resoundingly re-elected to the posi on of mayor of Weyburn in Octo-ber.
Page B6“People will comment you could go to the grocery store and you knew
everyone down the aisle. You could stop and talk. Now you go to the grocery
store, and you don’t know everybody anymore. Th e demographics have certainly
changed, and we’re reacting to that. Weyburn had the soft defi nition of the grey
industry, more of a retirement community. We’re certainly not that anymore,
and we’re aware of that.
“We’re expanding our parks. We’re expanding our spray parks – that will be
two. We have a plan for a third possibly down the road, because we understand
when families are looking for recreation, they’re looking for free and cheap. We
need to keep our greenspaces vibrant. Th at’s something that is at the heart of
the city of Weyburn. We love our walking paths, greenspaces and parks. We’re
glad to move forward with those and keep our quality of life.”
Button noted there are two pinch points for business – labour and housing.
“I, as a mayor, can’t do much about labour, but I can aff ect housing. If you take
away one of the pinch points, that’s our goal,” Button said in conclusion.
““Moving forward with the Moving forward with the housing plan we now have, our housing plan we now have, our housing has made great strides. housing has made great strides. We know where we’re going. We We know where we’re going. We
know where we’re developing. We know where we’re developing. We know how many houses and units know how many houses and units
will be put in the community in will be put in the community in the next several years. We know the next several years. We know what our target is and our goal.”what our target is and our goal.”
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By Brian Zinchuk
Calgary – With Enbridge having announced
more pipeline apportionments in November, the
pressure is on for oil producers to look at other
alternatives to ship their product. Th at has been
refl ected in the diff erential between what the WTI
prices is, and what they are actually getting.
On Dec. 7, January WTI was priced at $86.26
per barrel. However, Western Canadian Select, a
Hardisty-based blend of conventional and oil-
sands production managed by Canadian Natural
Resources, Cenovus Energy, Suncor Energy, and
Talisman Energy, was fetching just $55.32, a dif-
ferential of $31.75. Such diff erential hits hard.
Jarrett Zielinski, president and CEO of
Calgary-based Torq Transloading, said, “It’s about
as busy as it can get.”
Torq has set up a series of crude-by-rail trans-
loading sites throughout Alberta and Saskatch-
ewan in recent years.
“We’ve seen a big transition in the pace of
business. I think, what we’ve seen over the past 20,
24 months has been people dipping their toes in.
It’s been a fundamental shift. Refi ners, terminallers
and large marketers have come in with their own
rail cars and said ‘Hey, we want to take a much
larger position, and we want to do so on a term
basis.’
“Th at is what’s driving much of our develop-
ment.”
At the company’s recently opened Southall lo-
cation near Bromhead, they launched with a three
to fi ve car a day range for loading capacity. “We are
looking at a full build-out of that facility. We feel
we’re easily within the 15,000 barrel a day range.
Currently we’re at 2,000 to 4,000 barrels a day. Th e
demand continues to grow. People are looking at
moving unit trains out of there.
“We’re looking at making that site big enough
to accommodate 100 to 120 car trains.”
“Th e Midale spread from WTI is in the $23
range. Th ere’s double the transportation cost by rail.
What we’re seeing is the end market development,
meaning refi ners and terminals, terminals-to-barge,
pipeline terminals on the downstream side, we’ve
seen them ramp up their rail offl oad capacity.
It’s all happening while thousands more rail
tank cars are coming on the market. Zielinski said,
“Our best estimate is about one-third to one-half
of those are targeted towards Western Canada, on
top of what’s already in this market.
“Th ose would be brand new builds.
“Th ose are coming online between now and a
year from now.”
Southall currently has minimal infrastructure,
with rail cars loaded directly from trucks. Th at will
change.
“We anticipate putting tankage with a mani-
fold there to load,” Zielinski said. “Our estimate
is between 40,000 and 80,000 barrels. It could be
more if the demand exists. It could be several tanks
with multiple product types.
“Th e producers are facing shut-in right now,”
he said, pointing to Enbridge’s mid-November ap-
portionment of 18 per cent between its Line 4 and
Line 67.
When such announcements are made, their
phone starts ringing. “Th ey look for alternatives.
We’re certainly one of them, as are our peers. At
some of our facilities, we’re having to move to 24
hours.”
Unity is one example of round-the-clock
operation.
“We certainly have plans to expand Unity.
“We’re looking for operators, specifi cally at
Southall/Bromhead. We’d like to bring on more
good people.
“We have several custody transfer transload
meters in reserve in anticipation of the growth. We
are looking at no less than two pipe-connect unit-
train facilities for 2013. We will be operating in the
Athabasca region in 2013.
“Th e rateability and scalability can in some
cases increase once you disconnect from the trucks.
In Southall, we expect to truck-in volumes to the
tankage. From there it will go to rail. "
He quoted a J.P. Morgan report saying they
expected tank car fl eet to more than double in the
next two years to 45,000 tank cars.
As for the next steps, he said, “Th e market
needs to get bigger, and we intend to be a major
player in that market and be at the forefront in
that market, in a bigger scale.
“Eighteen months ago, it was diffi cult for me
to get a call back from the majors, from the big
guys. Now we get lot of calls back and lots of fi rst
calls.”
Crude-by-rail went from an alternative with
potential downstream risk to a situation where
“Th is is a downstream risk if we don’t get on the
pipe.
“Th e pipe is now the downstream risk, not the
rail. Our objective is to build it in scale and rate-
ability.”
Rateability means that if the rail cars don’t
show up, they can still put those barrels into stor-
age.
Smaller producers, and even larger ones, aren’t
equipped with rail cars, he said, but they can work
with a marketer to help them.
Th e shipping cost diff erential between pipeline
and rail on lighter and medium crude is around
$13-$14, all-in. On heavier oil, like product from
Cold Lake, the crude is shipped undiluted or
under-diluted. “Th e economics get even more
attractive,” Zielinski said, noting that 30 per cent
diluent is no longer needed.
Heavy oil ships in tank cars that are insulated
and equipped with heating coils. Steam is pumped
into the coils at the delivery point to warm it.
“On top of the $32 discount, the spread
between WTI and Brent is another $22. Maybe
you’re not going to get Brent, but you’re going to
get some adjusted basis of Brent, less transporta-
tion costs. Th ere’s a big margin in there,” Zielinski
said.
Pipeline apportionment drives rail demand
PIPELINE NEWS January 2013 B9
Weekdays 7:00 a.m. - 5:30 p.m.; Sat. 7:30 a.m. - 5:00 p.m. • After Hours Call CHAD 634-0195 or cell 421-1896
By Brian Zinchuk
Arcola – Since Clean Harbors established itself in Arcola a few years ago,
the company has grown substantially.
“Th e fl eets have grown,” said Brian Hagel, area manager. “We’re running 25
units now.”
Th at includes steamers, vac trucks, combo units, water trucks, tank trucks,
hot oilers, and one frac heater.
Hagel said he would really like to expand the frac heating side, noting they
now have a local person heading up that service line.
“We’ve hit the ground running, trying to meet the demand. We’re trying to
get our foot in the door,” he said.
“We have Clean Harbors Surface Rentals in Lampman,” Hagel noted. Th at
came about from the acquisition of Peak Energy Services in June 2011. Th e
name changed from Peak Energy Services, a Clean Harbors Company, in late
November.
Th e surface rentals allow the company to build complete packages.
Noble Well Servicing is in the process of building a new shop right next to
the Clean Harbors location. Clean Harbors will be leasing some space in that
building, having already outgrown its shop built just a few years ago.
Th e company had 30 people working out of Arcola, but many of them
come in on rotations, staying at the company’s camp on-site.
“It’s tough to fi nd locals, but that’s where our concentration is.”
“Most of our guys work a 21 and 10 schedule. We’ve got a huge recruit-
ing team in Edmonton. We advertise locally, and in the Western Producer. Our
recruiting department has a very long arm,” he said.
CampTh e camp facility has expanded. It’s an open camp. While Clean Harbors
itself is the largest client, anyone can stay there.
As of early December there were 50 beds. “We’re going to open it up to
80,” he said. “Th ey’re adding a rec facility and will expand the kitchen.”
Part of the camp is composed of fi ve 50/50 shacks, used by Clean Harbors
staff . Th e remainder of the camp is dormitory style.
Th e kitchen serves three meals a day and is open 24 hours. It off ers a hot
lunch, not simply sandwiches and soup.
Th e camp is managed separately from the other operations, but bookings
can be done through the main offi ce.
Varied service linesOne of things Hagel is focusing on is public awareness. “For being here for
three years, there’s still people who don’t know what we do,” he said,
“We’re not just the truck. We are the people, the lodging services, the sur-
face rentals. We have a lot more service lines than people know.”
Some of those other lines include providing methanol for pipeline testing,
tank rentals and specialized equipment for tank cleaning.
Th e Gama-Jet technology, he explained, “is a 3D tool that cleans every part
of your tank, without a confi ned space entry. You can put it though the top,
through the door or manway, or through any four-inch fl ange. We used it at
Apache and PetroBakken with great success.
“It’s a long piece of pipe, and the tool threads onto the end. You can run
it at high pressure, low volume, or low pressure, high volume. We’ve had it for
quite some time.”
“It’s safer, cheaper, and faster. Th ere’s zero tank entry to it.”
Hagel said the system was promoted alot in the Macklin/Provost area. He
plans on doing the same in southeast Saskatchewan. Page B10
More than just trucks: Clean Harbors in ArcolaThis frac heater can run its hea ng units in parallel or series. Each heater is rated for seven million BTU. Brian Hagel is the area manager for Clean Harbors.
B10 PIPELINE NEWS January 2013
Page B9Another product line is Zyme-Flow. “We are the only ones that have that
chemical. It’s an H2S, LEL, benzene and sulfi de inhibitor. It’s used in conjunc-
tion with the Gama-Jet for tank cleaning. It’s a cost-eff ective alternative to
using fi refi ghting foam. It interacts with gases and totally neutralizes it.
Warming things upIn the wintertime, a key portion of the business is keeping things warm.
Th at means the steamers are kept running 24 hours a day to be ready to go
when called. Th ey try to keep the hydrovacs and combo units inside.
Up until early December, he noted, “We’ve had a pretty mild winter.”
Th e company has expanded its steamer service. Hagel said, “We had three
before. We have six now. Th ey range from 750,000 BTU to 1.2 million BTU.
Th ey do dry steam and wet steam. We can run one or two dry steam wands at a
time.”
All six units are rigged in a similar fashion.
Dry steam is accomplished via a separation pot. Th e water drops out in the
steam pot and returns to the tank. Th e result is minimal water vapour.
“We usually run at 150 to 160 Celsius. Th at seems to make the best dry
steam. Dry steaming lets us be more effi cient while steaming.
“Th e guys are fully trained and competent,” he said of the operators. Th ey
can send one or two men out on a job, or even run 24-hour crews, if needed.
Th e frac heater has a 5,000 litre fuel tank, and can run for 12 straight
hours. It has two seven million BTU units. “We can run them in series or par-
allel. You can do two separate jobs or combine them.”
Glycol and methanol“We rent glycol mixture and 50/50 methanol mix for pipeline testing,”
Hagel said, pointing out the tank farm at the back of the compound. Th ere are
multiple tanks, and a fi lter system to fi lter returned product. Th e products are
tested by Carlyle-based PureChem Services on a regular basis.
Explaining the process, he said, “Th ey’ll say we need 100 cubes to test so
many metres of pipe. We’ll take a pressure truck with pressure testing equip-
ment. Tank trucks haul I to the site. Th e pressure truck will fi ll the line and
bump it to test pressure.
“Th e pipeline company will have a protocol for how long it sits. Th e line is
dewatered, and it’s brought back here, fi ltered, and readied for the next job.”
Page B11
Dry and wet steam available on steamer units
Clean Harbors has expanded its opera ons in Arcola since establishing the loca on three years ago. Its lodging services will soon have 80 beds capacity, while their local eet now includes 25 units.
PIPELINE NEWS January 2013 B11
Southeast Saskatchewan area manager Brian
Hagel has been with Clean Harbors, in various
forms, for 13 years. “I started in ’99 with Winter-
hawk Enterprises. I had one vac truck leased with
them. When Winterhawk merged with Eveready
Energy Services, I go on as a project manager/
fi eld supervisor around 2006.”
He had moved to Macklin in 1993. “I was
born and raised in Allan, Saskatchewan. My
parents farmed there.”
He hauled crude for fi ve years before getting
into the vac truck business.
He became area manager for Macklin/
Provost in 2009. As part of taking on that job,
he sold off his truck assets so as to not be in a
confl ict of interest.
“Macklin/Provost was one of their largest
production services branches,” Hagel said.
Th is past summer Hagel, his wife and two
kids came to southeast Saskatchewan. “We
moved to Carlyle, bought a house.”
He said there’s a lot of nice people in Carlyle.
“Everyone’s waving at you, shaking your hand.”
“I want to be a community-minded company
– donate to minor hockey, ball, the fi re depart-
ment. I was big on that in Macklin. To be suc-
cessful, you have to be tight-knit.
“It’s a key to success.”
Having worked in the heavy oil region
for much of his career, Hagel noted, “It’s a big
change from heavy, sandy, gassy oil to here. Th is is
light, full of sulfi des, and really waxy.
Th e hydrogen sulfi de concentrations are also
much lower, but he still insists they take the extra
precautions. “Do it by the book, do it safely,” he
said.
In Macklin, Hagel found about half of their
work was associated with service rigs. Th at’s dif-
ferent in southeast Saskatchewan, with service rig
work being a lower fraction of the business.
Page B10
For larger scale jobs, they can utilize the tank
rentals from Lampman. It can be more cost eff ec-
tive to rent a tank for some projects than to have
several trucks on hand. “We can put an all-inclusive
package together for the company, a one-stop shop,”
Hagel said. “We can haul our own water. It’s the
same as the hot oiler and frac heater. We can supply
our own fl uids and diesel fuel.”
“If you phone use about a frac heater job, we
can fi ll your tanks with water, do the frac heating,
steam your valves, do coil cleanouts and have a vac
truck on site for bleeding lines.”
Being community-minded is key
Brian Hagel points out the tank farm used for methanol and glycol. Hagel and his fam-ily moved to Carlyle this past summer, com-ing from Macklin.
Steamers are kept going throughout the day, ready to deploy.
All-inclusive deals available
B12 PIPELINE NEWS January 2013
Arcola – Linda
McKerchar of Luseland
now looks after cooking
for the Clean Harbors
camp in Arcola, but her
history in the oilpatch
is long and varied.
“I used to be a
trucker,” she said. “I
hauled fuel for Esso
and oil for Gibsons
with my husband.
“I was the fi rst
woman ever to work a
fl ushby in Lloydmin-
ster, Alberta. Th ey said I
wouldn’t last two weeks.
I lasted a few years.”
Th at stint was in
the 1980s. She noted,
“It was a lot slacker.
You only wore coveralls
if you didn’t want oil on
you.”
Linda and her
husband, John, have
been in Luseland for 12
years now. “He’s a heavy
equipment operator for
Brooks Asphalt, so he
doesn’t work at home
either. He’s working at
Oyen now.”
Th ese days Linda
does rotations as a
camp cook. Currently
she does a three-week-
on, one-week-off rota-
tion. With a husband
who also works on the
road, getting together
can be a challenge.
“I went to visit him
in Oyen. Th en he got
shut down. I made him
a moose supper and
sent him on his way,”
she said.
Th e couple have
three daughters and
fi ve grandchildren, all
of whom live in the
Lloydminster area. One
son-in-law has worked
in the patch in survey-
ing.
She’s been a cook
for 16 years. “I started
years ago because I
didn’t know what I
wanted to do. I asked
my husband, ‘What do
you think of camps?’”
It was a quick
learning experience. “I
didn’t realize there were
so many types of salads.
What counts is salads,
and how many combi-
nations. I knew about
fi ve. Well, I got my eyes
opened.”
Continually varying
the menu is a challenge.
“When you go into
a new camp, you use all
your specialities that
you know will go well.
But after awhile, it’s
challenging coming up
with something dif-
ferent for months at a
time.”
She gets some of
her ideas from the
Food Networks’s Din-ers, Drive-Inns and Dives. However, it often
comes down to the
basics.
“I fi nd mostly the
guys like meat and
potatoes. On the rigs,
back in the days, a lot
of the buys were hands
from Saskatchewan,”
she said, noting that
was there preference.
Most of her camp
cooking has been done
during the winters. Ar-
cola is about the same
distance from home
as work in northern
Alberta. Th at can mean
a not-so-fun drive to
work to start a rota-
tion. “Yesterday I wish I
wasn’t driving,” she said.
“I got snowed in.”
However, a little
snow won’t stop Linda.
“I love it. I don’t think
I could quit. Th ere’s not
many places where you
get room and board.
You just walk over in
the morning.”
More than just ve types of salad
Linda McKerchar has been a camp cook for 16 years. Early on, she realized it’s impor-tant to know a wide variety of salads. She’s currently the camp cook at Clean Harbors’ camp in Arcola.
PIPELINE NEWS January 2013 B13
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By Pat Roche(Daily Oil Bulletin) Lloydminster – Husky
Energy Inc.’s heavy oil upgrader at Lloydminster
on the Alberta/Saskatchewan border has reached
record reliability levels, said Rob Peabody, Husky’s
chief operating offi cer.
“We’re now achieving about 97 per cent eff ec-
tive capacity utilization of the upgrader, up from
about 90 per cent a few years ago,” he told Husky’s
investor day conference with analysts in Toronto
on Dec. 4.
Peabody didn’t off er further specifi cs, but the
company disclosed in its third quarter results that
throughput in the three months ended Sept. 30
averaged 81,600 bbls a day, up from 75,600 bbls
a day in the third quarter of 2011. Th roughput
includes diluent returned to the fi eld.
A planned turnaround was completed at
the upgrader in the second quarter and it later
achieved record monthly output, the company
said.
Feedstock for the upgrader is heavy oil from
northeastern Alberta and western Saskatch-
ewan, and bitumen from Husky’s Tucker oilsands
project, which is 30 kilometres northwest of Cold
Lake, Alberta.
An analyst asked how the company achieved
a 97 per cent utilization rate when its peers have
been running at much lower rates.
“We have a pretty consistent feedstock com-
ing in from both the Alberta gathering system and
the Saskatchewan gathering systems. Th at makes a
world of diff erence,” Peabody said.
Secondly, he said the company has strived over
the last two years to improve reliability. “Every-
body on that site is committed to getting safe and
reliable operations. Th ere was a lot of hard work
that went into it.”
Citing one example of a change, he said up-
grader metrics that used to be looked at weekly or
monthly are now monitored hourly.
“And you can see a lot more about what’s
going on in the facility when you’re in real time
looking at performance metrics of the individual
Husky Upgrader bucks reliability trendunits,” he said. “And that has allowed us to catch
problems earlier, get onto them faster and avoid
shutdown situations.”
Husky CEO Asim Ghosh suggested the im-
provement is “part of the larger cultural transfor-
mation” being promoted within the company. He
suggested the emphasis is on performance more
than planning. “We strategize for three days in the
year and execute for 362.”
“We are trying to get a lot more predictable as
a company than we have in the past,” Ghosh said.
B14 PIPELINE NEWS January 2013
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Home number: 486-2143 • Fax: 486-4855Home number: 486-2143 • Fax: 486-4855Box 12 Frobisher, SK. S0C 0Y0Box 12 Frobisher, SK. S0C 0Y0
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ESTEVANESTEVAN
By Geoff LeeRegina – Th e
Mayans messed up. Th e
world didn’t end Dec.
21, 2012 with the expiry
of their calendar to the
relief of Energy and
Resources Minister Tim
McMillan.
Th ere will be
another sale of Crown
petroleum and natural
gas dispositions will be
held on Feb 4, 2013 –
according to the Mc-
Millan calendar.
Th at sale could top
the fi nal 2012 sale of
Crown petroleum and
natural gas and oil sands
rights in December that
generated $11.5 mil-
lion for the province,
pushing total revenues
for the year to $105.7
million.
Th at total fell way
short of the $248 mil-
lion for 2011 – which
was only the fourth best
on record for land sales
revenues.
Th e bragging rights
for the December
2012 sale pertain to an
industry bid average of
$598 per hectare for oil
and gas rights, which
is more than double
the $218 per hectare
received by Alberta in
their last sale of oil and
gas rights.
Th e December sale
also featured fi ve oil
sands special explor-
atory permits north of
the Primrose Lake Air
Weapons Range, two of
which received accept-
able bids.
“It is encourag-
ing that more than $1
million in bonus bids
was received for two of
the oil sands permits
that were off ered in
this sale,” said Minister
Responsible for Energy
and Resources Tim
McMillan.
“In addition to a
bonus bid, these per-
mits require minimum
work commitment
expenditure to be spent
in exploration over the
fi ve-year term of the
permits.
“Th e province is
cautiously optimistic
that the results of this
exploratory work will
provide further insight
into the potential of the
resource in the prov-
ince.”
Th e December
sale included 89 lease
parcels that brought in
$8.9 million in bonus
bids, two petroleum and
natural gas exploration
licences that sold for
$1.6 million, and two oil
sands special explorato-
ry permits that received
$1 million.
Th e Weyburn-Es-
tevan area received the
most bids with sales of
$6.1 million. Th e Lloy-
dminster area was next
at $2.6 million, followed
by the Swift Current
area at $1.8 million and
the Kindersley-Kerrob-
ert area at $982,890.
Page B15
Stick with McMillan calendar in 2013
PIPELINE NEWS January 2013 B15
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Page B14
Th e highest price for a single parcel was $1.6 million. Scott Land & Lease
Ltd. acquired this 1,327-hectare exploration licence south of Gull Lake.
Th e highest price on a per-hectare basis was $8,412. Stomp Energy Ltd.
bid $136,188 for a 16-hectare lease parcel east of Lloydminster.
Weyburn-Estevan Area (numbers rounded off )Th e top purchaser of acreage in this area was Prairie Land & Investment
Services Ltd., who spent $1.6 million to acquire two lease parcels.
Th e highest price paid for a single lease in this area was $1.1 million by
Prairie Land & Investment Services Ltd. for a 1,036 hectare parcel situated
13 kilometres east of the Oungre Ratcliff e Beds Pool, three kilometres south
of Oungre.
Th e highest dollar per hectare in this area was received from Absolute
Land & Lease Ltd. which paid $5,124/hectare for a 32.37 hectare parcel lo-
cated 3 kilometres west of the Openshaw Frobisher Beds Pool, 30 kilometres
west of Rockglen.
Lloydminster AreaTh e top purchaser of acreage in this area was Scott Land & Lease Ltd.
that spent $1.1 million to acquire one lease parcel, one exploration licence and
two oil sands special exploratory permits.
Th e top price paid for a single lease in this area was $338,733 by Prairie
Land & Investment Services Ltd. for a 259 hectare parcel situated 2 kilome-
tres north of the Mervin Waseca Sand Oil Pool, three kilometres north of
Turtleford.
Th e highest price paid for a single licence in this area was $62,564 by
Scott Land & Lease Ltd. for a 2,331 hectare block situated 35 kilometres
north of Glaslyn.
Th e highest dollar per hectare in this area was received from Stomp En-
ergy Ltd, who paid $8,411/hectare for a 16.19 hectare parcel located within
the Tanglefl ags Mannville Sands Oil Pool, 30 kilometres east of Lloydminster.
Swift Current Area Th e top purchaser of acreage in this area was Scott Land & Lease Ltd.
that spent $1.5 million to acquire one exploration licence.
Th e top price paid for a single lease in this area was $112,500 by Jarrod
Oils Ltd. for a 65.15 hectare parcel situated adjacent to the Antelope Lake
North Success-Roseray Sand Oil Pool, 20 kilometres north of the Town of
Gull Lake.
Th is is also the highest dollar per hectare in this area at $1,727/hectare.
Th e top price paid for a single licence in this area was $1.5 million by
Scott Land & Lease Ltd. for a 1,327.37 hectare block situated partially within
the Covington Upper Shaunavon Oil Pool, 10 kilometres south of the Town
of Gull Lake.
Kindersley-Kerrobert AreaTh e top purchaser of acreage in this area was Scott Land & Lease Ltd.
that spent $277,763 to acquire one lease parcel.
Th e top price paid for a single lease in this area was $277,763 by Scott
Land & Lease Ltd. for a 64.75 hectare parcel situated within the White-
side Ribstone Creek and Milk River Gas Pools, 15 kilometres northwest of
Kindersley.
Th e highest dollar per hectare in this area was received from Windfall
Resources Ltd., who paid $6,263/hectare for a 16.29 hectare parcel located
within the Luseland Viking Sand Oil Pool, 30 kilometres northwest of Ker-
robert.
B16 PIPELINE NEWS January 2013
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Arcola – With some space avail-
able in her dad’s shop in Arcola,
Taralyn French saw an opportunity.
On Dec. 3, that opportunity was real-
ized, with the opening of No Limits
Fitness Centre, in Arcola.
Prior to that French worked in
administration at PetroBakken’s Este-
van offi ce. She will also be returning
to the University of Regina in January
for her second year of an education
and kinesiology program. She took
the most recent semester off from
school.
Th e 19-year-old had been attend-
ing North Idaho College on a vol-
leyball scholarship, but found that her
credits wouldn’t transfer to Canadian
schools. Th us she shifted to the U of
R.
“Dad had the space. I like to work
out,” said Taralyn. Her parents, Ralph
and Colleen French, are co-owners
in the venture. You might recognize
the name from fl uid-hauling fi rm, R.
French Transport, based in Forget.
“We mentioned it to my friends.
Th ey said it was a good idea. Every-
one thought it was awesome.”
Work started last June. Th e facil-
ity is on two stories, with much of
the work-out equipment downstairs,
and a studio and cardio area upstairs.
Th ere are eight cardio machines and
10 cable machines, in addition to free
weights.
Just two days after opening, Tara-
lyn said there had been lots of oilfi eld
interest. “Lots of people on service
rigs, lots of people from Alberta,” she
said. Some stay at the Clean Harbors
camp, others at the nearby Chaparral
Inn.
Some companies off er fi tness
benefi ts, she noted. “It works well
with this,” she said.
Th e gym will off er 24-hours-
a-day, seven-days-a-week access to
members, who will be provided with
a key.
While Taralyn is back at school,
personal trainer Laurie James will
look after the new gym. She could
be seen taking her two sons through
a cardio workout on Dec. 4. Part of
that workout was an “agility ladder,"
a cloth ladder around which a person
quickly moves their feet in and out
of the diff erent squares. Th ink of it
as a fast moving game of hopscotch,
but with faster moving feet and less
hopping.
Taralyn will be home on week-
ends to look after the gym. “I do like
to help people,” she said, adding she
liked working with children as well.
New gym attracts oil eld clientele
Taralyn French spent the last summer and fall working with PetroBakken in Estevan. Now she’s opened up her own gym in Arcola with the help of her parents, Ralph and Colleen French. On top of that, she’s going back to the University of Regina to con nue her educa on and kinesiology degree program.
PIPELINE NEWS January 2013 B17
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Estevan – When
it gets cold, be sure to
match your lubricants
to the temperature. And
synthetics do make a
diff erence.
Th at’s the mes-
sage from Terry Nistor,
owner of Nistor’s Farm
Service Ltd., the Shell
Lubricants dealer in Es-
tevan and Regina. He’s
been in the lubricant
business for a long time.
“I started when I
was 19 or 20, driving a
fuel truck for Shell,” he
said.
“I did that for six
years and took over in
Fort Qu’Appelle, then
Kelliher, Indian Head,
Regina, Moose Jaw,
Findlater, Weyburn and
Estevan.”
However, when
Royal Dutch Shell
bought out Shell
Canada in 2007, they
got out of commercial
wholesale fuel sales, and
their cardlock division
was sold to Flyng J,
now Pilot Flying J. Th ey
stayed in the lubricant
business, however,
and asked Nistor if he
would take care of their
wholesale market in the
area. He chose Estevan
and Regina and the re-
maining locations were
shut down.
Nistor manages the
Regina Pilot Flying J
cardlock as well.
“It’s busy. In Re-
gina, it’s agriculture.
Th ere’s lots of oilfi eld,
trucking, construc-
tion. We do a fairly big
industrial business.
“Synthetic oil low-
ers your pour point. It’s
a manufactured, man-
made oil. Th e stability is
better. It doesn’t break
down as quickly. It lasts
longer.
“It increases oil
change intervals from
5,000 to 10,000 kilo-
metres. On tractors,
semis, you have longer
intervals, but you still
need to change your
air fi lters, and do your
chassis lubrication.”
And, most impor-
tantly at this time of
year, “It starts better in
winter, too.
“Your pourability
is better than a mineral
oil. Th e more fl uid that
oil is, the easier it is to
start the vehicle.”
Nistor personally
used to have three semis
hauling grain. At -30 C,
he said, “We were tak-
ing out starters, things
weren’t turning over. We
switched to 0W40 full
synthetic, and it started
like summer.”
“When do you see
the most engine wear?
At start-up. If the oil is
too heavy, and it’s cold,
there’s no lubrication on
those bearings.”
He went on, “Th e
recommendation now
is 5W-40 full synthetic
year round for diesel
engines. A full synthetic
oil will stay cleaner, lon-
ger, than a regular min-
eral oil. Some highway
tractors are running up
to 50,000 kilometres on
synthetic, but I wouldn’t
recommend that.”
“When you start,
stop and are idling, you
change it more often
compared to a highway
tractor going from here
to Vancouver.”
One frac company,
he noted, changes oil
in their trucks every
250 hours. Considering
those trucks can run 24
hours a day, that makes
for frequent changes.
For heavy equip-
ment, he said some
just go with a lighter
hydraulic oil. “Th e
industry here uses ISO
22 hydraulic oil year-
round. It makes a big
diff erence.”
“A lot of people
don’t understand. If
you’re doing a lot of
work in the winter, it’s
in your best interest to
change it. Gravel trucks
use 22 all year round. It
doesn’t get hot. It goes
up and goes down.”
In some cases,
specialty oils are re-
quired. Nistor said Shell
makes a non-conductive
hydraulic oil, called
Tellus Arctic Oil, that
does not conduct static
electricity. It’s useful
for items like cranes in
refi neries.
When it comes to
grease, he said, “We’ve
got summer grease, and
we’ve got winter grease.
Summer grease
doesn’t want to go in.
But he noted, “You can
buy a winter grease with
a -45 C pour point. It’s
pumpable, so it goes.
“A big one we sell
is aviation helicopter
grease with a -60 C
rating. A lot of the oil-
patch uses it on external
valves on tank farms.
Price doesn’t seem to
be a factor. It’s the right
grease for the right ap-
plication,” Nistor said.
“We don’t recom-
mend you use a winter
grease in the summer. It
just runs out.”
“In Estevan, the
oilpatch is probably 75
per cent of our business.
In the last four years,
because of the oil sector,
business has defi nitely
increased. Th ere are lots
of opportunities to grow
your business,” Nistor
concluded. Terry Nistor owns Nistors Farm Service Ltd.
Synthetics make a difference
B18 PIPELINE NEWS January 2013
Continued development drilling
for light oil at Lucky Hills near Kin-
dersley, Saskatchewan, helped Invicta
Energy Corp. increase third quarter
2012 production to 387 boe per day
from 145 boe per day during the com-
parable period last year.
Output for the nine months
ended Sept. 30, 2012, was also im-
proved as the company averaged 320
boe per day versus 114 boe per day for
the prior year period.
Invicta said improved income and
funds fl ow from operations for the
three and nine months ended Sept. 30,
2012, was due to the company’s con-
tinued successful drilling programs at
Lucky Hills and the related operating
netbacks achieved by these oil wells.
Revenues for both the three and
nine months ended Sept. 30, 2012,
were both improved year-over-year.
Early in the third quarter, the
company completed and placed on
production four wells from its second
quarter program. In September, four
wells of the second-half 2012 Kin-
dersley (Lucky Hills) drilling program
were drilled. Subsequent to Sept. 30,
2012, an additional six wells were
drilled, all at a 100 per cent success
rate.
Th e completion and multi-stage
fracturing of the majority of these
wells began after the quarter end due
to availability of services. As of Nov.
21, all wells had been completed and
placed on production. During 2012,
the company had drilled a total of 21
(11.1 net) wells on this property.
Based on the last 10 wells of its
recent drilling program, Invicta said
that drilling costs have been reduced
as a result of increased effi ciencies. Th e
company estimates that the all-in on
stream costs of these horizontal wells
are averaging $900,000 to $950,000.
Th e oil production rates of the most
recent program have exceeded internal
forecasted average type curve.
Invicta’s two facilities were ex-
panded in the third quarter and an
additional one is being constructed
to handle the additional produc-
tion volumes from the recent drilling
program. It was anticipated that one
additional well would be drilled at 100
per cent working interest prior to the
end of 2012 on lands acquired in the
second quarter. Plans are currently
underway for an active fi rst-half 2013
program.
Invicta noted that since April
2012, it has transported up to 60 per
cent of its production by rail in order
to increase netbacks and mitigate a
portion of the current diff erentials
in Edmonton Light to West Texas
Intermediate. Th is process is expected
to continue into 2013.
Invicta uses rail to reach markets
PIPELINE NEWS January 2013 B19
PetroBakken Energy Ltd. announced on Dec. 10
that production in early December had reached ap-
proximately 51,000 boepd (based on fi eld estimates),
up 6,000 boepd since early November as the company
continued to execute on its 2012 capital plan.
Production growth primarily came from the
Bakken and Cardium business units, which are its
most active areas.
Since the end of the third quarter, the com-
pany drilled 67 net wells and placed 76 net wells on
production. Th is includes 26 net wells drilled and 33
net wells placed on production in the Bakken busi-
ness unit, 28 net wells drilled and 35 net wells placed
on production in the Cardium business unit, 12 net
wells drilled and eight net wells placed on production
in the Conventional business unit, and one net well
drilled in its new play areas.
For the remainder of December, the company
planned to bring on production 21 net wells, eight in
each of the Bakken and the Cardium business units
and fi ve in the conventional business unit.
PetroBakken recently completed the Brazeau
facility in the Cardium and tied-in a portion of the
planned wells to this facility, which added approxi-
mately 1,200 boepd of production. Th e company
expected the completion of its tie-in program and
optimization of this facility would add an additional
2,000 boepd of production prior to year-end.
Th e results of these activities, together with the
natural declines attributable to the production base,
will have put the company on pace to achieve its 2012
exit rate production guidance of 52,000 to 56,000
boepd.
Th e recently announced acceleration of the com-
pany’s 2013 capital program is underway and its con-
tinuous drilling program, which currently consists of
11 drilling rigs operating – six in the Cardium, two in
the Bakken, one in conventional and two in the Swan
Hills resource play – should provide a steady inven-
tory of new wells to bring onstream in early 2013.
New additions to the company’s facility infra-
structure and pipeline networks should also allevi-
ate some seasonal production losses during spring
breakup due to shut-in production and road bans, the
company said.
PetroBakken's current production at 51,000 boepd
PIPELINE NEWS January 2013 B21B20 PIPELINE NEWS January 2013
www.carsonenergyservices.com(306) 487-2281(306) 487-2281
• Oil eld Maintenance• Welding• Oil eld Construction• Pipeline Construction• Facility Construction• Mainline Pipeline Construction• Safety Sales & Service• Environmental Services• Horizontal Directional Drilling• Picker Trucks• Pile Driving• Hydro vac• Gravel and Sand Hauling• Skid Packages• Lease Preparation• Insulating• Major Facility Construction• Gas Plant Turnarounds
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Service Work
Estevan – Th e iron
might be shiny, but it’s
the men who make the
diff erence.
Indeed, talking to
Bill Devins, of Stam-
pede Drilling on Nov.
23, a couple days before
their fi rst rig was about
to go to work on its fi rst
hole, it’s hard to get him
to say much about the
equipment. Instead, he
stressed the quality of
their staff .
“We’ve got the best
men in southern Sas-
katchewan. A rig’s a rig.
We’ve got the best fel-
lows, without a doubt.
“We’re going to lead
the industry in safety.
Th ey’re going to follow
us.”
“All of our fellows
are going to be trained
above and beyond,”
Devins said.
Rig manager David
Shewchuk said they
had no trouble fi nding
people.
Some of the safety
elements include a
lockout on the catwalk
controls on the drill
fl oor. “You have to deac-
tivate the lockout so you
can’t bump the control.
You have to actively
disengage the lockout,”
Devins said.
Th is is done by
holding down a button
on the left side of the
control box. Let go of
the button, and the con-
trols are deactivated.
Th e rig is equipped
with two 455 kilowatt
Caterpillar C15 gen
sets, and two F-1000
mudpumps driven by
C32 Caterpillar en-
gines. Each mudpump
package has a Rouse
single-speed clutch. Th e
engine packages come
from Weyburn’s South-
ern Industrial/Rouse
Industries.
Th e drawworks is a
Ratmaster 850 with an
800 horsepower Cat-
erpillar C18 engine. It
has a Caterpillar electric
automatic transmission.
Th e rig manager’s
shack came from Denby
Trailer Ltd. of Weyburn.
Th e doghouse is a
little diff erent in that
while it has a slideout,
that slideout does not
enclose the driller’s sta-
tion. Instead, it slides
outward, expanding the
size of the doghouse.
Th ere’s a cabinet inside
full of safety equipment.
Th e telescopic
double derrick was built
by Do-All Industries,
along with the substruc-
ture and buildings. As-
sembly took place in the
Do-All Estevan yard.
Th e company’s sec-
ond rig is expected to be
ready in early 2013.
Th e company will
focus on southeast Sas-
katchewan, but will also
venture into southwest
Manitoba.
“We’re going to let
our actions speak. Th e
men are what make the
rig. You get the right
people, they run well,”
Devins concluded.
The workers make the differenceThe workers make the differenceDevin Hala, le , Bill Devins and David Shewchuk grab a Timmies in the rig manager’s shack. Devin’s says that people are the most important part of a rig, not the iron.
Photos by Brian Zinchuk
Jackie White is part of the management team of Stampede Drilling, with a focus on safety.
805 Government Road SWeyburn, SK
306•842•0307
Centrifuges
Shale Shakers
Shaker Screens
Drilling Fluids
Stampede Drilling’s rst rig went to work in late November.
B22 PIPELINE NEWS January 2013
#6 - 461 King St. • Estevan, SK
637-3460 www.petrobakken.com
Strength In Our Resources
Estevan – Harris Oilfi eld Construction has been working in the southeast
Saskatchewan oilpatch for 33 years, and continues to be a strong family busi-
ness.
Th e company is owned by Doug and Bertha Harris, as well as their son
Jim. Th eir daughter Janice takes care of dispatch and some of the management
duties along with her brother Jim. Doug and Bertha have stepped back a bit
after decades running the fi rm.
Th e company has 11 staff members, including the owners.
Th e fl eet is made up of fi ve vac trucks, one pressure truck, one oil truck and
two steamers. Th ere’s also a semi and a tri-axle tanker.
Th e shop’s appearance from the road is deceptive. After having been
expanded to the rear of the property twice over the years, it’s a lot deeper than
one would expect. But when your specialty is dealing with fl uids, a warm shop
is important.
Most of the company’s work is relatively close to Estevan. Th ey don’t ven-
ture into Manitoba.
Th e company’s been operating steamers for quite a while, said Janice. Th ey
see use in thawing lines and valves, and the occasional fi re hydrant for the city.
During the summer that equipment gets used for washing and tank cleaning.
“I’ve been on them, but it’s not my favourite,” she said. “I’m a vac truck
operator. But we’ve all done it.”
Th e vac trucks see use in a variety of applications. “We do anything from
septic to oil,” she said.
Th ey do septic work, but not portapotties, she added.
Such equipment can be in high demand, with the typical, “I need you right
now” phone calls. Janice’s response?
Page B23
Janice Harris and Jim Harris are siblings who both work for the family business, Harris Oil eld Construc on.
Harris Oil eld Construction has offered a variety of services for 33 years
PIPELINE NEWS January 2013 B23
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Kalvin NankivellPresident
Claudia MullisVice-President
Of ce: (306) 462-2130Fax: (306) 462-2188
Box 123Kisbey, SK S0C 1L0
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Page B22“Everybody says that. I’ll do the best I can.”
Harris Oilfi eld Construction has been COR-
certifi ed for at least fi ve years.
Th e company is a dropoff centre for waste oil,
such as used crankcase oil from farm motors, trucks,
and the like. Th ey also collect waste oil from a few
sites in Estevan.
Jim Harris takes care of their crew truck, pri-
marily working with his son, Ryan, with occasional
help from others.
Th e crew truck does facility work, pipelines, and
all sorts of other work, he noted. “One hundred per
cent of the work is for CNRL,” he said.
“We fl oat all over – Frobisher, Steelman,
Lampman, Innes, Viewfi eld. Th ey like smaller guys.
We know the area, and they don’t have to train you.
I started working on my own crew when I was 21
for Gulf at Lampman.
“I’ve been doing it since I was 15 years old,
working in the summer painting pumpjacks,” Jim
said. He’s now 45, and has spent his career with the
family fi rm. Janice rejoined the company 11 years
ago on a steady basis.
In the back of the shop one fi nds the an IMC
stock car, which is no surprise, since Jim is a fi xture
at the Estevan Motor Speedway.
“I’ve been racing since ’81,” he said.
His car is #17, while his daughter, Alyssa, drives
#17A. Ryan drives #18.
Jim notes his father, Doug, has been supportive.
“Dad’s all over these cars when we’re not here. He’ll
know exactly what rim has been bent, and what tire
has been cut.”
Chrystal Schad wields a steamer wand towards the camera. The steamer operator works with Harris Oil eld Construc on Ltd. The 22-year-old did pipeline work in Bri sh Columbia for four months before returning to Estevan.
Photo by Brian Zinchuk
B24 PIPELINE NEWS January 2013
Estevan – Th e city’s latest hotel, the Microtel Inn & Suites by Wyndham, is
the prototype for a wave of new hotels in Canada. Th e plan is for a total of 75
Microtels to open in Canada over the next 25 years.
Th e new hotel adds 79 rooms to the Estevan market, one that’s seen con-
tinued pressure over the years even though numerous additional hotels having
opened in the past three years.
Th e grand opening on Oct. 29 was unfortunately aff ected by poor weather,
both in Calgary and Estevan. A plane chartered for dignitaries planning to at-
tend had to be cancelled.
Catherine Burdett, director of marketing for MasterBUILT Hotels, acted
as mistress of ceremonies. MasterBUILT Hotels is a joint venture between Su-
perior Lodging Corp. – one of Canada’s largest and most successful hotel de-
velopers known for establishing the Super 8 and Wingate by Wyndham brands
in Canada – and Jayman MasterBUILT, one of Canada’s premier residential
builder developers over the past three decades.
She said there were 337 days of construction, 42,000 square-feet of fl oor
covering, over 100,000 square-feet of drywall, over 1,000 gallons of paint, and a
little over $8 million in capital investment in the Estevan operation.
John Henderson, director of support, Microtel Inn & Suites, spoke of the
brand’s expansion, saying, “Th e best is yet to come here in Canada.”
“It gives us great pleasure to be able to open our very fi rst Microtel by
Wyndham in Estevan and provide the community with modern, high quality
accommodation that meets the demands of today’s business and leisure trav-
eler,” said Eric Watson, VP of development. “With a booming economy and
strong demand for quality lodging in the region, Estevan was a natural choice
to launch our Microtel by Wyndham concept in Canada.”
Page B25
The new Microtel Inn & Suites in Estevan will be the prototype for dozens more hotels to come. Photo by Brian Zinchuk
Estevan’s Microtel a prototype for a wave of new hotels
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Page B24
He spoke of the company’s plans to start
construction of a similar hotel in Weyburn in the
spring. Lloydminster’s Saskatchewan side is also
on the agenda for 2013 as well. Blackfalds and
Fort McMurray are also planned in the same year.
Estevan’s hotel is the prototype. However, Tim-
mins, Ont., will be the next to open.
Th ere are currently two other Microtel Inn &
Suites by Wyndham open in Canada in Wood-
stock and Parry Sound, Ont., both of which repre-
sent the brand’s older design concept.
Newly elected Estevan Mayor Roy Ludwig
welcomed the new hotel.
A $5,000 donation was made to the St. Jo-
seph's Hospital Foundation, which was accepted
by Roxy Blackmore.
Th ere are six types of rooms in the Microtel. A
basic standard has one queen-sized bed, while an
upgraded standard has a queen-sized bed, fridge
and microwave. Th ere are similar rooms except
with two beds available. Th ere are accessible suites
and business class. All rooms have queen-sized
beds.
Th e Microtel adds something not seen in its
competitors: a water slide. But while its pool, wa-
ter slide and hot tub are highlights, the key thing
is the parking lot full of work trucks.
Th e hotel off ers complimentary deluxe hot
continental breakfast, coff ee, high-speed wireless
Internet, weekday newspaper, indoor water park
with hot tub, fi tness centre, parking and business
centre. Guests also have access to valet cleaning
service, a copy/fax / printing service, and a locker
room for oilfi eld workers to store their gear.
Microtel opened its Estevan location on Sept.
24. Manager Al Simoneau said business has been
good, and it has picked up as it got colder. Th ey
have been running close to full during the week,
often selling out two or three days a week. Week-
ends are slower, but that depends on what sports
are going on in town, like hockey tournaments.
Th e hotel has a staff of 23, for the most part
foreign worker who are permanent residents
originating from Ukraine and India. Four of the
Ukrainians have husbands who work on the rigs.
Simoneau noted that the clientele is mostly
corporate and government. “Oilfi eld is at least 50
per cent of it.”
Eric Watson, le , of Microtel Inn & Suites, le , presents Roxy Blackmore of the St. Joseph's Hospital Founda on with a cheque for $5,000, a dona on upon the hotel’s opening.
B26 PIPELINE NEWS January 2013
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Estevan – Th ree years ago, Mission Hotshot Service Inc. was a fl edgling
outfi t, with two trucks and a lot of dreams. Th is past fall the company found a
permanent home in an Estevan industrial park, and is continuing to grow.
As far as locations go, it would be hard to fi nd a better one for a hotshot
operation which spends a large portion of its time picking up loads along
the supply store row on Estevan’s Kensington Avenue. Located on Devonian
Street, they are right beside Weatherford Independent Pump Co., one of their
frequent stops, and just behind TS&M.
“We go there to pick up the pump fi rst and then the rod string. On the
way back, we drop off the old rods elsewhere and then the pump is dropped
off last,” said Clinton Gibbons, who owns the outfi t with his wife Nicole. “Rod
strings around about 50 to 60 per cent of our work.”
It’s typical that whenever rods are pulled on a well, the pump comes out
too, for replacement or servicing.
When Pipeline News did a ride-along with Mission Hotshot in February
2010, they had two trucks and two trailers. “I have six trucks and 11 trailers
now,” Gibbons said.
“Th e location’s great. Th at was a selling feature, and the size of the yard,
too.
“Th ere’s potential to build, and potential for a pipe yard for customers.”
Th ey also have eight people – six full-time and two-part time staff , and
they’re looking for another full-timer. Th us, it was time to have a more perma-
nent home.
Like many start-ups, they had been operating out of the Gibbons’ home.
Having a shop means more overhead, but it also means things can be fi xed
inside. “Which is nice,” Gibbons said. “It’s better than my front yard, freezing,
hoping the neighbours don’t drive over my legs sticking out.”
Prior to moving into the new location in September, they did have a quar-
ter-acre yard north of the Estevan Comprehensive
School. But with so many trailers, there was hardly
room to move around.
“It was just open ground. We barely fi t eight
trailers in there. We’ve been looking for a nearly a
year before we bought,” he said.
Th ey had looked at various options, including
building or buying. He had considered setting up
on an acreage outside of Estevan, but that would
have added travel time.
Page B27
Mission Hotshot secures permanent home
Mission Hotshot has se led into a permanent loca on now, with a shop and yard on Estevan’s Devonian Street. To owner Clinton Gibbons, it means they’re here to stay.
PIPELINE NEWS January 2013 B27
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Page B26"We looked long enough, we knew that was right. I was shown it
Wednesday, and we said yes Friday morning. I do my best thinking while
driving, and I and my wife went to Minot on the Th ursday.
Nicole was key in the hunt for a new home for the business, he noted.
“I envisioned it. I didn’t think it would happen that fast,” Gibbons said
when asked about whether, three years ago, he thought they would be where
they are today.
“Full time guys are averaging about 200 hours a month. Some months are
more, some less.
Th is summer was slower for most service businesses in southeast Sas-
katchewan compared to the previous year, with the drilling rig count down
about 40 rigs province-wide compared to the record setting pace of the sum-
mer of 2011.
“October was approaching average. We had a slow August. Our customer
base is getting bigger, so we’re seeing less fl uctuations from boom to bust.”
“Th e toughest job is hiring people,” Gibbons added.
Th e company is working on putting together a benefi ts package for staff ,
a key recruiting tool.
“You want to try to create a good work environment – something healthy,
something to stick around for,” he said.
As for their human resources strategy, Gibbons noted, “Attitude is the
biggest one. I want someone with a good attitude. Skill set is second. I defi -
nitely look for people who fi t in with what I’ve got. You can teach, but you
can’t change attitude.”
“I just hired a guy from Davidson. He’s got a willingness to learn, and a
get ’er done attitude.”
Some prospective employees said they would come to Estevan if housing
was provided, but he doesn’t want to get into the
accommodations fi eld.
Th e reason for having nearly twice as many
trailers as trucks is that trailers are often left on
site for the client for anywhere from a day to a
week.
“We take trailers out and leave them on loca-
tion for a day or two out there. We just picked one
up that was on location for a week,” Gibbons said.
Six are now equipped with pintle hitches so
customers can more easily move them around.
“Th ey’re not as smooth to pull, but they’re way
more convenient for the customer,” he said.
Gibbons concluded, “In buying a shop, you’re
part of the community. You’re here to stay. A lot of
hotshots, a truck and trailer, come and go.”
In buying a shop, In buying a shop, you’re part of the you’re part of the community. You’re community. You’re
here to stay. A lot of here to stay. A lot of hotshots, a truck and hotshots, a truck and trailer, come and go.trailer, come and go.
““
- Clinton Gibbons, owner,Mission Hotshot Service Inc.
””
B28 PIPELINE NEWS January 2013
SASKATCHEWANOIL & GAS SHOW
June 5 & 6, 2013
Please download form off our website: www.oilshow.caEmail or send to address below
Estevan – With a fl eet of fi ve semis pulling tankers, Wayne Clemens couldn’t
fi gure out why Estevan didn’t have a heavy-duty tow truck. So he decided to get
one.
Two years later, the tankers are gone, and towing and pickers are the focus.
X-Treme Towing off ers the heavy-duty towing, and has the only semi wreck-
er outside of Weyburn, Regina or Brandon in the region. Th at keeps them going,
and has led to an expansion into light-duty towing as well.
“I was at Weatherford for 12 years. Before that, I was in construction,” Cle-
mens said. “I farmed, ran winch trucks, did a bit of everything.”
At Weatherford, he was a service tech for, as he described, “anything in the
fi eld.”
Th e road to towing started with tankers. “I bought some tank trucks. I had
fi ve trucks doing down the road,” he said. “I knew a couple of guys that were
hauling and decided to get into it.”
Th at start was in 2007, just when the Bakken boom started. He got out of
tankers one-and-a-half years ago.
“When you needed a tow truck, there was none around,” Clemens said. He
bought his own, and now works with the local semi dealers when they need a
tow.
Th e heavy-duty wrecker is alternatively known as the “Big Orange Unit”
or “Daisy.” It’s a stretched Kenworth, single steer, tandem truck with a 35-ton
wrecker. Th e truck came out of California.
“Nobody could fi gure out why there wasn’t one in town,” he said. “We’re it,
in the southeast corner. Th e nearest one is Weyburn. Other than that it’s Regina
or Brandon.” Page B29
Pickers a handy addition to towing out t
Wayne Clemens operates the controls of “Daisy.” X-Treme Towing’s heavy duty wrecker.
PIPELINE NEWS January 2013 B29
Page B28“We haven’t advertised or pushed it too much,” he said.
Eventually they added a smaller duallie tow truck to handle light-duty
towing. “Th e little truck is never shut off ,” he said. “Th e big one goes on an
almost daily basis.”
Th ey now take calls from CAA as well as some roadside assistance services.
He’s considering getting another tow truck in between the two trucks. Th e
Estevan area has a lot of heavier trucks around – service bodies, knuckle-picker
dualies, and the like.
“We’re pulling trucks up to 19,000 pounds,” Clemens said. Th e big truck
can be overkill, but it can be a bit much for the small one.
In the meantime, their in-between-sized loads are often handled with a
gooseneck tip trailer with a big winch. It’s pulled by a pickup.
As for the really big loads, like service rigs, they leave that to local
trucking fi rms.
Th is past fall Discovery Channel ran a series called Highway Thru Hell, profi ling a heavy-duty towing outfi t based in Hope, B.C. which covers the
Coquihalla highway. It’s brought a lot of prominence to the towing busi-
ness.
“It’s a good show. Th ere’s a few things we do diff erently,” Clemens said.
One of the standout pieces of equipment of Jamie Davis Heavy Rescue,
the company featured in Highway Thru Hell, is its rotator heavy wrecker.
Th at allows its wrecker arm to rotate to the side, making the machine much
more fl exible for diffi cult tows. But X-Treme Towing can trump that. “We
have three pickers, a 30-tonn, 35-ton, and 28-ton knuckle boom,” Clemens
said.
One is a tandem steer, tandem drive, another is a tandem steer, tri-
drive. “Th ey are just like big rotators,” he said.
Th e knuckle picker, he said, will be used as much as possible in recover-
ies. In late November they used it to fi sh a small car out of the Souris River
near Estevan’s Woodlawn Golf and Country Club.
“We’re kind of unique because of the pickers,” Clemens said. “I saw
a lot of them going down the road, and thought, ‘Maybe we should have
them, too.’”
Th ose pickers aren’t sitting, waiting for a call, however. Pickers, and
more importantly, picker operators, are in high demand in southeast Sas-
katchewan. Th ere are three semis hauling pipe and matting, and the afore-
mentioned three pickers. One semi often assists with towing, doing things
like pulling the trailer of a stricken semi.
As such the pickers are actually part of a side company, X-Treme Picker
Service. “Th ey go steady. Th ey’re never around the shop. We specialize in rig
moving. We’ve got a few dozen service rigs we take care of,” he said.
However, if they do need the pickers for a diffi cult towing or recovery
job, they are available. In their yard in late November, for instance, one was
used along with “Daisy” to lift a burnt-out farm grain truck, allowing a
fl atdeck semi trailer to be backed under it.
Th ere’s also a loader and skid-steer loader in the fl eet. Th e large loader
is not only useful for moving pipe, but in fl ipping semis or acting as an
anchor.
“A lot of times, you need an anchor to turn it,” he said.
X-Treme Towing recently moved to a new shop adjacent from their
previous location on the west side of Estevan. Behind the shop is an impound
yard, a key aspect of the towing business.
“We do impounds for the city police, SGI and RCMP,” he said.
Th e company’s service area is southeast Saskatchewan, and just a little
into Manitoba. “We haul into Regina and up to 17 km into Manitoba. We
permit for some Manitoba loads. We do lots of Carnduff and Oxbow,” he
said.
Asked what’s the best advice for a driver should they ever need a two,
Clemens said, “Th e main thing is to have something to hook onto, and not
just for the oilfi eld. We’re not going to pull off someone’s front end.
“Be ready for the unexpected.”
As for tire chains, he noted, “A lot of times, chains just get you in that
much deeper.”
B30 PIPELINE NEWS January 2013
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Rick Tourand shows a cut-away composite boot, le , and a boot meant for the coldest weather, right.
By Brian ZinchukEstevan – Th ese are not your father’s workboots.
When you went out on your fi rst job, your father might have told you it’s
important to remember your steel-toed boots. At least it used to be. Th ese days,
especially in winter, steel-toes are going the way of the Dodo bird.
Th e big shift in protective work footwear, especially for cold weather, is
composites, according to Rick Tourand, owner of Ron’s the Work Wear Store.
Th e company has locations in Weyburn, Estevan and Carlyle.
Composites have become the trend in all sorts of industries. From new
airliner designs like the Airbus A380 to your kid’s hockey stick, their physical
properties of light weight and strength have seen them supplanting traditional
materials. In footwear, heat conductivity, or lack thereof, is a key point.
“Composites are the current trend in CSA footwear. Th ey’re lighter, stron-
ger, and do not conduct cold,” said Tourand. “Steel conducts the cold.”
Th at makes a big diff erence to the pipeliner standing on a cold, windy
right-of-way all day or a derrickhand up the mast.
About a dozen years ago, there was a brief fl irtation in the industry with
fi breglass-toed boots, but they didn’t pan out and were quickly abandoned. Th e
current composites are not fi breglass. Th ey are a material called epoxy resins,
according to Tourand.
“In a workboot, probably 70 per cent is still steel-toe and plate. In the win-
ter boots, we probably sell 70 per cent composite toe and plate. Th at’s the way
the industry is going.
“Th ey fi nd the toes don’t get as cold, especially the ones who stand most
of the day. Th ermographic testing has been done on these. It proves it doesn’t
conduct the cold.”
Th ermographic testing is essentially imaging
showing heat, such as infrared imaging.
Tourand noted composite boots are also quite
a bit lighter in comparison to steel-toed boots. He
said, “A few ounces diff erence, over two feet, over
thousands of steps a day, adds up.”
When customers come in, they will typically
say, “I need winter boots.”
Tourand responds by asking, “What type of
work do you do? What exactly are you doing? Are
you up the mast as a derrickhand?
“It’s a subjective thing,” he said. “You can see
the same boot, same height, same weight, same
job, and one person will need a -100 C boot, and
another will need -50 C.
Th ere has been a large trend in recent years
toward polyurethane boots. “Th ese are the hottest
things in oilfi eld footwear,” Tourand said, holding
up samples of Baffi n and Cofra boots.
Polyurethane boots, unlike older style rubber
boots, are resistant to invert and distillates used in
some drilling. Th e older boots would simply disin-
tegrate over time. Page B31
Composites in the cold
PIPELINE NEWS January 2013 B31
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Rick Tourand, right, assists a customer in nding a hardhat liner.
Page B30 “Nothing would stand up. Polyurethane stands up,” Tou-
rand said.
“Th e guys got onto them and started wearing them year-round, winter and
summer. I sell fewer regular workboots because of these.”
In the wintertime, workers will often use a quilted sock known as a Bama
sock. Th ey not only provide additional warmth, but wick moisture away and
keep the feet dry.
“Th ey say it’s like air conditioning for your feet,” he said.
Th e lining inside of the boot has thousands of microscopic cells that pro-
vide insulation. “Th ey trap the body head. Th at’s what keeps you warm in the
winter,” Tourand explained.
“Th ese are my No. 1 style of boot in all three stores. Th ree years ago, they
weren’t a hot item. We sold over 40 pairs (in Estevan) in one week. It’s incred-
ible.”
Often it’s a case of “You see one, you want one.” New workers see what
their co-workers are wearing, and quickly adopt that style of footwear. Yet it
will often be territorial. Th e crew of one rig might be wearing one style, and a
crew of another rig working just down the road will be wearing a second style.
One of the coldest-rated boots Ron’s carries is the “derrick boot.” It’s rated
to -100 C. “I’ve never had a guy complain about cold feet in those. If you get
cold feet, it’s too cold to be working.”
Another new trend in footwear, and most work attire for that matter, is
safety striping with highly refl ective materials. “Five years ago, it was never an
issue. Now everything is safety striped – coveralls, hoodies, high vis., footwear,”
Tourand said.
When it comes to your more traditional style of workbook, the eight-inch
lace-up boots, composite boots are becoming much more common as well.
With a Sympatex lining (an Dupont insulation product similar to 3M’s Gore-
tex), composite toe and plate, Tourand noted, “Th is is as warm as any Sorel
boot out there.”
Th e physical properties of composites also allow for a more box-shaped toe,
as opposed to the traditional concaved steel. Th at box shape is more in keeping
with the actual shape of the foot, Tourand noted.
“Th at doesn’t even feel like a hard toe,” he said.
Sole design has changed too. Th e old style, which would have an outer-sole
stitched to a mid-sole, has been replaced by injection-moulded soles. By being
one-piece, it prevents sole separation and reduces the chances of water penetra-
tion.
B32 PIPELINE NEWS January 2013
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Estevan – Rapid Heating Ltd. fi red up in the spring of 2012 with the
intention of fi ring up their burners.
Th e Estevan-based company is owned by Ed Lukye and Ryan Saxon. Th ey
started operations last spring, and had their equipment on display at the Red-
vers Oil Showcase.
Th e company’s focus is frac water heating.
“Out there they have to warm water for warming the chemical,” said
Lukye.
Water is typically heated to between 20 and 55 C.
Th eir heat exchanger is eight feet across and 18 feet long. “Th is unit has
20 million BTU and a capacity of 4,500 litres per minute,” he said. It has two
Riello burners.
“Th ey suck up 110 gallons of diesel fuel per hour,” he said, which would
explain the two large tanks at the front end of the trailer.
Additionally, they have a 15 horsepower high pressure boiler for steaming
purposes. “We don’t have to wait for another steamer,” said Saxon, adding hav-
ing both on the same unit is not common.
“We can troubleshoot instead of waiting for a high-pressure boiler.
Th e setup has two operators, but Lukye notes, “I’m there to help them. “
Saxon also helps out as needed.
He noted not only can they heat fresh water, but salt water as well, as the
inside of their heat exchanger is stainless steel.
Th eir system can do two tanks at once, but they prefer to do one at a time.
Th e time it takes to heat a tank varies, but it averages around 30 to 35 minutes
for a 400-bbl. tank, taking it from 3 C to 55 C.
Uninsulated tanks in winter have to be heated to a higher temperature
because they lose more heat overnight.
“If it’s too cold, they can’t frac with it,” Lukye said.
Th e heating is done before the actual frac crew sets up. Th ey are not pres-
ent when the frac job is underway.
As a new entrant to a marketplace that has seen a number of frac heat-
ers pop up in recent years, Lukye noted, “It’s crowded when it’s not busy. But
there’s people waiting when it’s busy.”
Th e company is licensed for Manitoba, Alberta, British Columbia and
Saskatchewan.
This large heat exchanger en rely lls the back of this semi-trailer. Ryan Saxon, le , and Ed Lukye are partners in Rapid Hea ng Ltd.
Fired up to heat frac water
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Arcola – Th ere’s one big issue for the town of Arcola when it comes to ad-
dressing the concerns of the oilpatch, and that’s housing.
“Our thing here is living accommodations,” said Harry Laurent, the recent-
ly acclaimed mayor of Arcola. Laurent returned to the position after a three
year hiatus which he spent relocating his two businesses – lumberyard Arcola
Building Supplies and Harry Laurent Construction Inc., to the new industrial
subdivision along the north side of Highway 13. Th e second company special-
izes in building shops for the oilpatch.
In the past three years, Arcola has developed and fi lled two residential sub-
divisions. A third subdivision with 17 lots for sale has just opened up. Th e fi rst
two subdivisions absorbed 12 and 16 homes respectively.
“SaskEnergy and SaskPower just completed installations. We’ve had an
off er to purchase one lot already,” he said.
Th e prices will range from $45,000 to $50,000 apiece. Each lot is approxi-
mately 150-feet by 125-feet in size.
“Th ey’re nice sized lots."
Th e price has climbed over the years. Lots for the fi rst subdivision had
gone for $17,000 to $21,000.
It’s a big change in rural Saskatchewan, when not too long ago, small
towns were selling lots for a loonie, just to attract people to come to their town
and increase the tax base. Laurent personally bought the lot his house is now
on for $2 in 2008. To be fair, they put about $20,000 into improving the lot,
but that’s still a far cry from what a lot in Estevan goes for.
“We have a developer speaking with the town about starting a multi-unit
dwelling,” Laurent said. “He’s kind of looking at rentals.”
Another company has broken ground on two fourplexes. Laurent expects
they will be ready to go in the spring.
His old lumberyard location, on Main Street, had three lots. Th ey have
been purchased and are being considered for either a two or three storey apart-
ment building.
“It’s huge,” Laurent said of the developments underway. “Saskatchewan just
went crazy. If we get these apartments here and the patch dried up, you still
have the service industry,” he said, pointing out that new wells still need to be
maintained, and fl uids hauled from them.
Page B34
This area is the new cabinet-making area, as the old space used for that purpose will be the new home to drywall storage, as well as addi onal oor space for the building supply store. Harry Laurent is the owner of Arcola Building Supplies and Harry Laurent Con-struc on, as well as the town’s mayor.
Accommodations are key in Arcola
B34 PIPELINE NEWS January 2013
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Harry Laurent is the recently acclaimed mayor of Arcola. He returned to the posi on af-ter a three-year hiatus. His twin ventures, Arcola Buildings Supplies, and Harry Laurent Construc on Ltd., have been busy in the mean me.
Page B33As for constructing the new housing, Laurent’s business built one in the
earlier subdivisions, but after that he said, “I went to shops.”
Commercial shops are a lot simpler, and have considerably fewer head-
aches, he noted.
As for Arcola Building Supplies, Laurent said, “It’s a very busy store.”
He took Pipeline News on a tour of the new facility, which in just three
years, they have outgrown. An expansion is underway. Th e cabinet-making side
is being shifted to an addition, and its former place will be used for drywall
storage and additional store fl oor space.
“It’s a good time to own a lumberyard in this part of the province. It’s a
good time to be in business in any aspect.”
Th e growth of the oilpatch has been the driver, but he noted, “One of my
favourite slogans is, ‘oil can make you money, but it can cost you money.’”
By that he means local businesses have to try to match wage increases in
the oilpatch, lest their employees jump ship.
“I’d hire three more in a heartbeat, but you can’t get ’em,” he said. “Kids out
of high school can start at $26 an hour, and I start at $14.”
Back in the saddle
Pad drillingA series of new wells has sprouted up just a few miles east of Stoughton.
Photo by Brian Zinchuk
PIPELINE NEWS January 2013 B35
Lloydminster – A growing concern for safe winter driving in the oil and
gas industry combined with an early snowfall whipped up a powerful storm of
work orders for winter tires this season at Kal Tire in Lloydminster.
January and February are vacation months, but it was all hands on deck
during a crazy pre-season rush in October that began to slow down the week
of Nov. 19 when manager Adam Mountney caught a break.
Mountney said he and assistant manager Colby Moan were both chipping
in with sales and service work during the crunch period and was glad to have a
minute to talk about their ordeal by fi re.
“We’ve had about six straight weeks of winter rush – lots of tire putting
on,” said Mountney who has been managing Kal Tire stores for 10 years in-
cluding the past three years at the busy Lloydminster shop.
“In October and November, we pretty much do two months in one. It’s
pretty much the meat and potatoes of our year.
“In the morning, we’ve had 10 to 15 people waiting outside an hour before
we open at 7:30 a.m. to get in fi rst because we are fi rst come, fi rst served.”
In the busiest four week period, the Lloydminster shop sold more than
1,300 tires mostly to oilfi eld company fl eets from pickups to heavy oil haulers.
Th ey also installed about 400 customer car and trucks tires in early winter
driving conditions.
“Safety is the driving force behind oil company fl eets switching to snow,”
said Mountney.
“I know up in Fort McMurray and area, you can’t even go up there unless
you have winter tires on now on a lot of lease sites.
“It’s better for traction and safety. Th e biggest concern is safety for their
people on the road.”
Kal Tire is Canada’s largest independent tire dealer serving retail, commer-
cial and mining customers with up to 19 brands for car and light truck tires.
In Lloydminster, the Bridgestone Blizzak is Kal Tire’s best selling tire for
cars and light trucks.
“It seems that’s a real well known name. Everybody feels that’s the best
one. It’s got a real soft block and lots of snipes in the tread,” said Mountney.
“Every year within two weeks of winter they will be sold out. I had guys
order them in April to make sure they got them when the snow fl ies.”
Some pickup fl eets and consumers are also asking for studded tires from
Nokian for performance and safety in the icy road conditions prevalent in the
Lloydminster area.
“We fi nd it’s more icy than snowy in Lloydminster. Especially when they
go for the studs, that’s what they are looking for – the starting and stopping
versus the lateral stability,” said Mountney.
“More people are going to studs. Th e only complaint is they’re noisy, but
the traction once they try them, it’s hard not to run them ever again. Usually,
when they run them, they want them all the time.”
Th e Bridgestone M775 steel radial is the best selling new tire for heavy
crude haulers.
It has an extra deep tread for long original tread life and special com-
pounds to resist cuts, chips, tearing and irregular wear.
Th e Lloydminster shop has seven full time and three part time employees
who turn into super heroes without capes when the going gets tough – as it did
with the second snowfall of the season.
“At one point, I had four lines on the go. We were all in the back. I left one
person in the offi ce and I actually put three lines on hold with one incoming
just so we could keep up,” said Mountney.
Page B36
Tire changessnowball at Kal Tire
B36 PIPELINE NEWS January 2013
FAX: 306-453-4476BOX 40, CARLYLE, SASK. S0C 0R0
www.evergreenenviro.ca
306-453-4475
* Environmental Protection Plans * Impact Assessments * Pre-Site Assessments * Environmental Audits & Assessments
* Well Site & Battery Abandonments * Drilling Waste Management * Pre/Post Water Well Testing * EM Surveying * GPS Mapping
* Formerly “Three Star Environmental”
Page B35“Some mornings
right off the hop, we will
have 80 tires to put on
and then we are explain-
ing to guys 20 minutes
after opening that it’s
a day wait – drop it off
and we’ll tell you when
it’s ready.
“It pays to be fi rst in
line especially when the
snow fl ies. Everybody
waits until that snow
hits the ground before
that light goes on saying
‘hey I need them on.’”
Surprisingly, retread
tires for oilfi eld semis
and trailers outsell new
tires almost 4 to 1 with
Kal-Tire’s fl eet custom-
ers such as Wes Can,
Husky, Trican and Hal-
liburton.
“Defi nitely it’s about
cost savings,” said Riley
Cowan, outside sales
manager who noted a
large retread truck tire
could cost $300 com-
pared to $600 for a new
one.
“You get about 80
per cent of the life of
what you’d get on a
new tire. Th e cost per
kilometre is what we
typically sell by, so there
is anywhere from a 30 to
50 per cent cost savings.
“For a larger fl eet,
you multiply that by the
number of wheel posi-
tions.”
Each week, Kal Tire
fi lls up a trailer with up
to 132 used oilfi eld tires
to be sent to the Bandag
retread facility in Regina.
“You can retread a
casing more than once.
With the initial pur-
chase of $600 for a new
tire, you can get up to
nine retreads on one cas-
ing,” said Cowan.
“Not only does
it save the company
money, it saves the
environment because it’s
recycling.”
Th e Bandag BDY2
is the best selling
single or tandem oil-
fi eld retread designed
for enhanced traction
on unimproved road
surfaces.
Kal Tire can install
and service winter tires
on up to four semis
at a time in a covered
outdoor pad at the back
of their shop.
A typical semi will
need eight winter drive
tires with a life expec-
tancy of between 80,000
to 100,000 kilometres in
the Lloydminster area.
“Lease roads chew
them up and they are
busy, so they won’t
always come in and get
them rotated in time,
which kind of cups them
and creates wear,” said
Mountney.
Kal Tire however,
dispatches one of its
service trucks daily to
check the yards of its
fl eet customers as part of
a preventative mainte-
nance program.
“Before those trail-
ers head out on the road,
we’ve got a guy who
goes out and hammers
on every tire looking for
fl ats or worn out tires,”
said Cowan.
“We try and take
care of it and eliminate
the downtime. While
those trailers are down,
we are servicing them.
“It keeps the cus-
tomer happy and keeps
them coming back to
Kal.”
Cowan makes
regular sales and service
trips to Husky which has
grown to become Kal-
Tire’s largest account
after starting with 14
trailers in 2007.
“Th ey’ve grown im-
mensely and, of course,
the business we’ve done
with them has grown
immensely,” said Cowan.
“Retreads play a
signifi cant role in how
they were able to expand
so quickly.”
“What we try
and do is prove to the
customer that what we
can provide for them is
above and beyond what
the competition can
provide.
“Obviously, we want
to lower their operating
cost or it wouldn’t make
sense for them to switch
from their current sup-
plier to what we do.
“We accomplish
that by purchase reports,
retread reports – give as
much information as we
can give to that cus-
tomer so that it makes
their buying decisions
that much easier because
they’ve got all the infor-
mation.
“Our company is set
up quite well to provide
that extra value to them.”
Kal Tire also has a
journeyman on staff for
front end brake and sus-
pension work on smaller
cars and trucks.
Retreading tires a busy business
31/2 miles South of Estevan on Hwy 47(35 of 1 of 8, West of the 2nd)
PIPELINE NEWS January 2013 B37
LECLAIRTRANSPORT
Lyle LeclairCell: 306-421-7060
General Oilfi eld HaulingCordell JanssenCordell Janssen
District ManagerDistrict ManagerDownholeDownhole
93 Panteluk Street, Kensington Avenue N93 Panteluk Street, Kensington Avenue NEstevan, SaskatchewanEstevan, Saskatchewan
PHONE:PHONE: 306-634-8828 • 306-634-8828 • FAX:FAX: 306-634-7747 [email protected] • www.nov.com
JUSTIN WAPPEL - Division Manager
401 Hwy. #4 S. Biggar, SaskatchewanPO Box 879 S0K 0M0Ph (306) 948-5262 Fax (306) 948-5263Cell (306) 441-4402 Toll Free 1-800-746-6646Email: [email protected]
Lloyd Lavigne • Kirk ClarksonOwners/Managers
6506 - 50th AvenueLloydminster, AB
Phone: (780) 875-6880
5315 - 37th StreetProvost, AB T0B 3S0
Phone: (780) 753-6449
Fax: (780) 875-7076
24 Hour ServiceSpecializing in Industrial & Oilfield Motors
Your best choice
for accommodations
in Carlyle, Sk.
• Full kitchen and upscale extended stay• Complimentary continental hot breakfast
• Free high speed internet• Meeting room
Reservations: 306-453-2686
RICK CORMIERManager
Box 609 Bus: (306) 634-8084Carlyle, SK Cell: (306) 577-8833S0C 0R0 Fax: (306) 453-6075www.truetorq.ca [email protected]
RESOURCE Gu de
Arcola – If there’s one thing you
can never seem to fi nd enough of, it’s
shop space for fl uid haulers in the
winter. Th at, and housing, are always
in short supply and high demand.
Th ose are two birds Harry Lau-
rent is trying to kill with the same
stone. Th is winter he’s planning on
building 10 units in a “trucker condo”
confi guration.
Th e idea is to build shop space for
individual trucks, and make the back
of the shop into a two-storey apart-
ment.
Each unit will be 100 feet long.
Th e fi rst 85 feet will be truck shop,
and the rear 15 feet will have a two-
storey apartment with roughly 1,000
square feet of living space.
Each shop and apartment unit
will be separated by a smoke wall.
“We hope to make it into a
condo. We’re going to start on them
soon,” Laurent said on Dec. 4.
As for the location, he has fi ve
acres behind his lumberyard, Arcola
Building Supplies. His other venture
is Harry Laurent Construction Ltd.,
which specializes in shop construc-
tion. Th at location also is puts it in
easy access to Highway 13, right on
the Bakken fairway.
“I would hope we would have
them done by spring,” he said. “If I
had them now, they’d be going like
hotcakes,” Laurent said in reference to
the condos.
“Th ey’re basically designed for
one person. A lot of people have their
own truck, and no place to stay.”
Laurent has done a lot of con-
sultation in the industry, particularly
with fl uid haulers, and they tell him
he’s on the right track. “Every time he
puts a truck in a bay, he had a place
for the man to live.”
Th e units could be sold individu-
ally, or in blocks to larger fi rms.
Units will have appliances in-
cluded, and may have a deck built on
the back.
Friends in Alberta sharing ideas
helped inspire the concept.
“I’ve researched this for about a
year. In my mind, it should fl y. It’s a
fairly expensive gamble, but I think it
will fl y.
“It’s going to be their home.
We’re going to have to make it nice.
Condos for the driver and their truck
Winter DrillingCanElson Drilling Rig 16 could be found drilling between Kisbey and Forget in early December.
Photo by Brian Zinchuk
B38 PIPELINE NEWS January 2013
We require the following:
Matrix Well Servicing
Slickline DivisionWe are seeking dynamic and motivated
Field Assistants for our Estevan location.
Do you possess?• A valid driver’s license (minimum Class 5)• Previous Slickline and E-Line experience is an asset but not required. We are willing train the right candidate!
** Guaranteed Salary, Job Bonuses andFull Benefits!**
*Successful applicants must be willing to submit to and pass pre-employment testing*
Please apply online at:www.pure-energy.ca
We thank all applicants for their interest; however, only those considered for an interview will be contacted.
101 Supreme St. (Shand access road)
Class 1A & 3A PreferredAbove Industry Wages
Benefits PackagesOpportunity for AdvancementEmail: [email protected]
Fax 306 634 1200 • Cell 306 421 3418
SERVICE RIG PERSONNEL
Oilfield Construction Limited
NOW
COME JOIN OUR TEAM! We’re hiring for various
projects throughout
Southern Saskatchewan
Over 50 years strong, Arnett & Burgess Oilfi eld Construction Limited safely
provides quality pipeline construction, facility installation, pipeline integrity, custom fabrication, maintenance and
related construction services to the energy industry.
Compensation:Competitive wages
Overtime Daily Subsistence /Living
allowance
Preferred Certifi cationsH2S Alive
Standard First Aid & CPR
Required Certifi cations Driver’s License
Ground Disturbance – (Heavy Equipment Operators only)
For more details and other career opportunities please visit:www.abpipeliners.com
For Inquiries please call: 780.384.4050
Please submit your resume to :email: [email protected] • Fax:403.265.0922
• CONSTRUCTION MANAGER- Candidates must have previous leadership/managerial experience within the Pipeline Construction industry (mainly underground lines max 16”).This position’s home base is in Regina.
• FIELD SAFETY ADVISOR- The ideal candidate will have a CSO designation. This position will oversee pipeline construction projects in southern sk with a home base in Regina
• PIPELINE CONSTRUCTION LABOURERS
• FOREMEN
• HEAVY EQUIPMENT OPERATORS-Employee & Owner Operators with Pipeline Construction Experience
All positions require previous experience in Pipeline Construction. Previous experience on Pipeline Integrity projects is an asset.
CAREER Gu de
PIPELINE NEWS January 2013 B39
EMPLOYMENTOPPORTUNITYMcNeil Plumbing and Gas Fitting
based in Redvers, SK is looking for:
Experienced Plumbers/Apprentice Plumbers/HVAC
Technicians
• Wages up to $40/hour • Overtime after 8 hours • Use of company cell phone and company truck • Full bene ts after three months • Living accommodations available
To apply call 306 452-5199 or email jason_gas [email protected]
B40 PIPELINE NEWS January 2013