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Boyd picks up extra dutiesEnergy and Resources Minister Bill Boyd
picked up a few extra duties in the May 29 cabi-
net shuffl e. Boyd is now Minister of Energy and
Resources, Minister responsible for SaskPower,
the Uranium Development Partnership (UDP),
Innovation Saskatchewan, and the Saskatchewan
Research Council (SRC).
Th e cabinet shakeup saw individual Crown
corporations handed out to individual ministers.
Before they all fell under Ken Cheveldayoff ’s pur-
view as Crown Investments. Boyd’s responsibility
for SaskPower comes at a time when the Crown
has its checkbook out, seeking to invest heavily in
power generation over the next several years.
Glamis successful with horizontal well
Glamis Resources Ltd. says it recently drilled
and completed its fi rst of fi ve separate oil explo-
ration targets that are planned to be drilled in
southeast Saskatchewan and southwest Manitoba
throughout 2009.
Th e 100% working interest horizontal well
was drilled to a total measured depth of 1,770
metres and encountered an oil-bearing Tilston
reservoir. An intensive open hole swabbing opera-
tion resulted in the recovery of nearly all the load
fl uid and established an oil cut ranging from 50%
to 32% in various intervals.
Additionally, based on the corporation's eval-
uation of infl ow performance, management be-
lieves that the well is capable of producing up to
750 bbls of fl uid per day. Initial production is esti-
mated to average approximately 200 bbls of light
oil (39 degrees API) per day.
Glamis expects to drill its next exploratory
target in southeast Saskatchewan by the end of
July.
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By Brian ZinchukPipeline News
Weyburn – Greg Smith, chief operations offi cer
and a senior vice president with Petrobank Energy
and Resources Ltd., was honoured on June 3 as Sas-
katchewan’s Oilman of the Year.
A former Olympic canoeist, Smith graduated
with an honours degee in geophysics in 1983. Af-
ter working with a succession of companies, in 2003,
he joined Petrobank, serving as senior geophysicist,
exploration vice president and senior vice president
of the business unit at the same time. He ended up
focusing on the company’s business unit.
Petrobank has become the second-largest Bak-
ken producer in Saskatchewan, and in 2008 was the
most active driller in the Bakken area.
Smith spoke of StarPoint’s fi rst successful Bak-
ken horizontal well drilled on Petrobank land in
2004, 2005, and off ered kudos to that team for get-
ting the ball rolling.
“Today, when people talk about the Bakken, you
always hear about the multi-stage fraccing and, in
particular, Packers Plus, but there are other compa-
nies out there. Th ese contractors have fi gured out a
way to build a better mousetrap, and it is working out
very well for them.
“Th e process of innovation in the oil and gas in-
dustry involves partnerships between the oil and gas
companies, and their contractors.”
He spoke of contractors becoming partners and
contributing to their success.
“Th e partnership with contractors is very crucial
to us all, applying those technologies and doing it at
reasonable prices.”
“Application of technology is what has made
Bakken reserves accessible to the industry. On behalf
of Petrobank, I extend my thanks to all the contrac-
tors who have helped us make those little steps to
fi gure out how to crack the nut of Bakken play.”
“Th e innovation and activity occurs here because
of the strength of the business environment.” Smith
noted.
“Petrobank is composed of a very strong team of
individuals, of which there are no real heros, unless
they are all heroes.”
“Essentially we are paid to make mistakes. Our
only condition is we learn from them.”
He noted, “Our impact on the environment is
not zero,” but added, “It can be minimized.”
Smith spoke of the “Saskatchewan Advantage,”
saying, “Saskatchewan is our province of choice for
new business.”
Petrobank’s Greg Smith Sask. Oilman of Year
Premier Brad Wall, left, and selection committee co-chair Al Schreiner, right, present Greg Smith with the Saskatchewan Oilman of the Year award. Smith is a senior vice president and chief operations of cer with Petrobank.
PIPELINE NEWS July 2009 A3
NewsNotes
In the boonies?SaskTel today announced June 9 the launch
of SaskTel Satellite Internet powered by Xplornet
providing coverage to all areas of Saskatchewan
not able to receive SaskTel High Speed Internet.
“Providing all Saskatchewan people and busi-
nesses with fair and equal access to the best in-
formation, entertainment, and communication
technologies available has been a priority for the
Government of Saskatchewan,” Minister respon-
sible for SaskTel Don Morgan said.
SaskTel Satellite Internet powered by Xplor-
net provides aff ordable, fast, and easy Internet ac-
cess packages with speeds of up to 1.0 Mbps or up
to 1.5 Mbps starting from $56.95/month.
“SaskTel is pleased to off er high speed internet
service to all its customers in Saskatchewan,” Sask-
Tel President and CEO Robert Watson said. “Th is
is a great accomplishment as Saskatchewan will be
one of only two provinces in Canada that provides
the service to 100% of the province.”
Heating a new shop?Th e provincial government has introduced a
rebate program to encourage the use of geother-
mal heating systems within Saskatchewan’s busi-
ness sector. Eligible businesses can receive a 15
per cent rebate on the cost of installing a Canadian
GeoExchange Coalition (CGC) certifi ed geother-
mal heating and cooling system. Th e maximum
rebate is $100,000.
“Geothermal is an environmentally responsi-
ble alternative to many traditional sources of heat-
ing - especially electric heat,” Crown Corporations
Minister Ken Cheveldayoff said. “Interest in geo-
thermal is growing in our province and providing
these fi nancial incentives will make it feasible for
even more people to install a geothermal system in
their home or business.”
Th e commercial rebate program is funded by
SaskPower and administered by the Saskatchewan
Research Council (SRC). To be eligible for the re-
bate, projects must be professionally designed and
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Saskatchewan Petroleum Industry Safety Association
June 17 and quickly got to business with a networking
lunch and safety training needs assessment workshop.
Th e initial needs assessment will help ENFORM
identify the province’s unique requirements and deter-
mine how its safety training products and services can
be customized for use in Saskatchewan.
Follow-up needs assessment workshops with the oil
and gas industry will be held in Estevan, Swift Current,
Kindersley and Lloydminster this fall.
“We are doing all kinds of work with CO2 in the
south end of the province and there are all kinds of in-
herent risks with that,” said Bob Ross, manager of the
new petroleum industry safety association.
“In the fall we will be hitting Swift Current, Este-
van, Kindersley and Lloydminster. Th at will be an op-
portunity for industry to speak about specifi c needs in
Saskatchewan.”
A Saskatchewan Advisory Committee has also been
set up to lead the workshops and address the needs of
the province’s growing petroleum industry. Th e com-
mittee includes representatives from ENFORM’s six
industry associations and the Saskatchewan Workers’
Compensation Board.
“We are are open for business,” said Ross. “We
are the newest industry safety association in Saskatch-
ewan.”
Th e WCB recognized ENFORM as the petroleum
industry safety association for Saskatchewan on Jan. 1,
2009.
ENFORM is also the petroleum industry safety as-
sociation for Alberta and British Columbia and operates
specialized training centres in Calgary, Nisku, Genesee
in Alberta and Fort St. John in British Columbia.
More than 150,000 students a year update their
skills with ENFORM’s self-paced, online e-learning
programs; industry-focused video conference classes
and seminars; or hands-on instruction at the training
centres.
ENFORM has a strong presence already in Sas-
katchewan with the delivery of its health, safety and
training programs delivered by regional colleges.
Th ere are more than 120 industry-leading courses
off ered by ENFORM covering safety, operations, tech-
nology, and environmental management. Courses are
available at the campuses of Southeast Regional College
in Estevan and Weyburn, Lakeland College in Lloyd-
minster, Great Plains College in Swift Current, and
Parkland College in Yorkton.
Ross says Regina was chosen for the ENFORM
head offi ce in the province to “to ensure we are seen
more as an independent and not just affi liated with one
college or one area. We are also close to the airport.
“Th ere is also the benefi t of deferred costs and time
for some of the employers as well. Before today, they
would have to send their people to Calgary or Nisku for
specialized operations.”
Initially, the Regina outlet will be a two-person of-
fi ce staff ed by Ross and offi ce manager Susan Morris.
“Eventually, we hope to have fi ve staff ,” said Ross.
“We are running a leaner operation right now just be-
cause we’re predominantly running a computer online
base right now.
“Once we ramp up for classroom settings, our con-
tract trainers come in to provide specialized training. We
are looking at video communication as well. Hopefully,
by 2010 we will have a venue large enough to accom-
modate that classroom setting.”
Safety services in Saskatchewan will include the
Certifi cate of Recognition (COR) program, Industry
Recommended Practices and safety-related events like
Safety Stand Down Week and the Petroleum Safety
Conference.
A COR designation is awarded to petroleum indus-
try companies who have a Health and Safety program
that meets approved standards.
“Th is is an excellent program which is a require-
ment in a lot of cases to bid on work,” said Ross. “You
have to have a health and safety program in place and an
audit and there is a commitment by the employers and
participants.”
Ross says being based in Regina also gives EN-
FORM closer access to the government ministries and
the type of agencies he is well connected with from his
years of work with petroleum industry safety issues and
legislation.
“We have always worked very cooperatively with the
petroleum sector here,” said Ross, who has more than 24
years of experience in the province’s petroleum industry
and occupational health and safety program.
He participated on the original Petroleum Safety
Council and was a representative on both the ENFORM
Training and Safety Councils.
“I also worked in drilling in my youth so I appreci-
ate the time and the investment industry is making to
ensure their workers are trained,” said Ross. “Th ey are
making the industry more like a career now.”
Ross anticipates working closely with the Energy
and Resources and Saskatchewan Environment minis-
tries and being an active member on the Saskatchewan
Petroleum Industry Government/Environment Com-
mittee (SPIGEC).
“Whenever there are health and safety issues associ-
ated with the worker or quasi health and safety and en-
vironmental issues, we also attend those meeting,” said
Ross.
“In my past jobs, I represented the needs on the
health and safety side. Now with ENFORM we will be
active participants on that too.”
Ross says industry response to ENFORM being
chosen to be Saskatchewan’s petroleum industry safety
association has been positive and lots of calls have come
in since the offi ce opened in mid April.
“We are actually getting calls from heavy oil people
in the La Loche area,” he said. ”Th ey are very interested
in how their needs will be met with the oilsands sector
they will be working in.”
ENFORM becomes Sask.’s energy safety hard hat
Mission Statement:Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people.
Pipeline NewsPublisher: Brant Kersey - Estevan
Ph: 1.306.634.1015
Fax: 1.306.634.0141
Editorial Contributions: SOUTHEAST
Brian Zinchuk - Estevan 1.306.634.1015
SOUTHWEST
Swift Current 1.306.634.1015
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PIPELINE NEWS July 2009A4 EDITORIAL
EditorialAttending two major oil conferences in Saskatch-
ewan this spring, you’re sure to hear from the politi-
cians.
Th eir message has been consistent: a big “Th ank
you” to the Saskatchewan oil patch.
Th ank you for growing the economy, providing
jobs, paying for social services and infrastructure.
Energy and Resources Minister Bill Boyd brought
that message to the Williston Basin Petroleum Confer-
ence in Regina in late April, noting that he had specifi c
instructions from the premier to show gratitude to the
oilpatch.
Th e big guy himself delivered the same message to
the Saskatchewan Oil and Gas Show in Weyburn on
June 3, during the oilman of the year awards luncheon.
He made the point that he’s the fi rst premier to at-
tend the show since 1999, and before that, it was 1991,
when Grant Devine was still premier.
Now, premiers are busy people who rarely have
complete control of their schedules. If the prime min-
ister calls a fi rst minister meeting, you have to attend.
When the Saskatchewan Association of Rural Munici-
palities has their annual convention, you better be there.
Th e same goes for the Saskatchewan Urban Municipal-
ities Association. But missing a decade worth of shows?
Th at’s the entire duration of the Calvert Administra-
tion. It’s also only once for Roy Romanow.
Wall was present at the Lloydminster Heavy Oil
Show last fall, and said he plans on attending these
shows as much as possible.
People notice these things, which is precisely why
Wall brought it up. It’s sure the industry took notice
the heavy presence of both the top-end politicians and
ministry offi cials at these events.
Wall no wall ower with oil and gasIt’s odd, because former Premier Lorne Calvert brought
in royalty regimes that have done Saskatchewan very well,
in comparison to what the Alberta government has done
in recent years. (i.e., loaded both barrels and shot off both
feet.) Indeed, Wall credited the previous administration for
that, if not actually naming Calvert by name. Th e province
plans on leaving things alone in large part, saying, “We will
not be increasing royalties.”
Wall spoke of investing in infrastructure from where
the money had come from.
“You’re generating a lot of royalties. You deserve good
roads to do that work,” Wall said
Th at statement got applause. Anyone who has driven
around Alida, for instance, realizes that heavy truck traffi c
associated with the oilpatch comes with a price in infra-
structure. It’s even more noticeable in the heavy oil country
around Lloydminster. While there have been eff orts in re-
cent years to assist rural municipalities in dealing with the
issue, you’d have to look long and hard to fi nd an RM that
is satisfi ed with the level of assistance.
With the collapse in energy prices over the past year,
there’s not going to be a lot of extra money to throw into
these things. However, with the recovery of oil prices since
the winter, there’s hope. It wasn’t long ago current prices
were considered astronomical. If they stay at this level or
improve, perhaps the province will be able to put more into
infrastructure.
“We have to invest more in infrastructure.” Wall add-
ed.
Th ere’s an old saying in politics – dance with the one
who brought you. In this case, Wall strode onto the dance
fl oor, and made clear he’s here to dance. It’s probably a good
thing the premier is not a wallfl ower with the oil and gas
industry. Th ey have this habit of paying the bills.
PIPELINE NEWS July 2009 A5
PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR WELCOME.
meant to carry small children behind a bicycle, and,
with some coaxing, got my daughter to ride her bike
to the park.
Th ere Spencer and Katrina had great fun playing
with the other kids, as a few parents watched. While
watching our kids get soaked in the spray park, I
struck up a conversation with one of the dads.
I can’t remember what he does exactly, but it was
some sort of well-site work, probably directional drill-
ing. Inevitably, we started talking about the activity
level in the patch, and I commented on the fact that
things should be picking up shortly. Oil was, after all,
around $72 a barrel on that day.
His response was that he would like to see it stay
the same for a while. At the pace he was going over
the last couple years, it was tough.
Don’t get to see the kids much? I asked.
More like didn’t want to see the kids, he said. He
was too tired to spend time with them.
I expect to hear more of that in the coming
months. Th e last year has been brutal in many ways
– the frenetic pace of 2008 coupled with the total
collapse of prices by early 2009 has been hard on the
system and families. Th ankfully, the valley was short-
lived, and much of it occurred during the slow season
of spring breakup, anyhow.
Th e Saudis said a while back that they would be
happy with oil in the $75 range, right around where
it is now. If the Saudis are happy, shouldn’t we all be
happy?
It wasn’t that many years ago I was asking the
provincial minister of fi nance what he would do with
all the money fl owing in with $60 oil.
In February, I noted that governments would
likely be saying, “Th e cupboard is bare” at some time
in contract negotiations this year, followed by, “You
can do a lot more with $75 oil than you can with $35
oil.”
Well, we’re at that level now. Th ere’s pretty good
indication it will climb a bit higher towards the end
of the year, which is going to help this province out
a fair bit.
On the drilling side, it’s nowhere near 2008’s, or
even 2007’s pace, but Saskatchewan is faring better
than our neighbours.
When you look at the rig counts, Saskatchewan
is doing pretty well compared to Alberta and BC. As
of June 12, Saskatchewan had 36 of 124 drilling rigs
working, or 29 per cent. Th at’s not great, but look at
Alberta. At the same time, they had 65 of 589 drill-
ing rigs working – with a whopping 524 rigs down.
Only 11 per cent of Alberta rigs were listed as active,
likely due to poor gas prices. BC faired a little better,
with 21 of 122 rigs working, or 17 per cent. Manitoba
saw fi ve of seven rigs active – pretty good for that
province.
In all, Saskatchewan is pulling through. For a
lot of companies, the last eight months may have
been tough sledding, but if they made it this far, they
should probably be okay. Th e provincial budget won’t
likely see billions in oil bounty, but it won’t be starved,
either.
And the guy with his kids at the park? He’ll
probably have enough time to enjoy them, and still
make a buck.
Brian Zinchuk is editor of Pipeline News (www.pipelinenews.ca). He can be reached at [email protected]
Imperial Oil’s decision to start work on the fi rst
phase of its $8 billion Kearl oilsands development
near Fort McMurray could signal the start of other
major oil and gas projects that were put on hold
when oil prices tumbled.
Imperial estimates it will cost $4.50 per barrel
of bitumen for an initial production run of 110,000
barrels starting as early as 2012.
Th is investment is good economic news as oil
heads to the $75 mark that many producers say is
the level where investment in new production is
most likely.
Th e ironic point is that with no further invest-
ment in new production, oil is likely to zoom into
the triple digits again due to a supply shortage.
New production investment now will help to
off set another potentially damaging price spike just
as the economy and oil prices gain momentum.
Investment has been curtailed by low prices, low
demand, high development costs and tight credit
markets along with renewed policy emphasis on al-
ternative green energies.
Demand is due to rise again as the global econ-
omy improves but without new investment in pro-
duction or a massive reduction in demand and con-
servation, oil prices are bound to soar again to our
detriment.
It would seem from past experience that you
can’t have high oil prices and a booming economy
at the same time for any sustained period, especially
for undeveloped countries. Th e price of gas, food
and labour puts all consumers in the poor house.
Th e solution would be to strive for a supply and
demand balance where oil prices are high enough
to spur investment and generate economic spinoff s
while keeping the cost of living in check.
To achieve this, leaders need to realize that oil
supplies are fi nite and as reserves dwindle, govern-
ment and industry need to fi ll the void with alterna-
tive energies so that by the time the last drop of oil
has been consumed, the world no longer needs it.
In a perfect world, this would be achieved but
short-term thinking seems to rule the day along
with the attitude that if we keep drilling everything
will be okay. It’s the ostrich approach that gets pol-
iticians elected and causes economic volatility.
What the world needs are localized energy
sources and solutions that can be ramped up in pro-
portion to the inevitable declining global oil and
gas resources. If you live by a waterfall, use water-
fall power. Energy independence may be the key to
long-term survival.
Sun, wind and tides are here for the long haul.
We need to maximize these energy alternatives as
much as possible so when the oil and gas taps run
dry we are not left powerless. Where is the political
will?
Today oil and gas runs the world – and that’s
okay – for while. Without a replacement source, we
will be back to burning lumps of coal and eating
dinner by fi relight.
Let’s use the next oil boom to purchase our se-
curity and keep the lights on so we see where we are
going.
OpinionTime for the kids, and to make a living, too
Hold the applause for oil rebound
Geoff Lee
Lee Side of Lloyd
PIPELINE NEWS July 2009A6
Oil Chat Bruce Penton, associate-editor with the Medicine Hat Daily News and syndicated columnist will be contributing a Q&A with in uential Canadian Petroleum personnel each month for Pipeline News.with Bruce Penton
Pipeline News: Th is will take 15 to 20 minutes tops. I want to start by asking what would happen to the world in the next 100 years if all eff orts to reduce CO
2 emissions were stopped?Malcolm Wilson: You sure you want to keep
it to 15 minutes? We can see signifi cant impacts on
our ability to produce food, for example. I’m most
familiar with the Prairies, obviously. We look at some
of the PFRA forecasts and signifi cant areas of the
Prairies could become sub-marginal for production
of grain crops. So we could defi nitely be in quite a
tight spot in terms of the American breadbasket be-
ing able to produce the level of crops we’re used to.
Certainly you will get a northward movement, where
you will be able to grow crops further north. It’s go-
ing to be pretty good for Alberta, because it has soil
further north, but Saskatchewan and Manitoba . . .
you run out of soil further north. You’re going to see
more intense storms and with growing cities at the
same time, the likelihood of major storms hitting cit-
ies increases, so property damage is going to increase.
Sea level rises; that’s pretty much inevitable. We are
going to see increased pressure on coastlines.
PN: So the world has to step up its eff orts in this regard.
Wilson: And the second part of it is the acidi-
fi cation of the oceans. I’m certainly a long way from
being an expert in that area, but it does raise con-
cerns about the bottom end of the food chain and the
oceans and what will happen.
PN: How would you rate Canada’s eff orts in this whole scenario?
Wilson: On the whole, not very good. Canada
has developed a lot of expertise and from the research
end of things, I think you pat a lot of researchers on
the back and say despite a lack of broad support,
they’ve done a good job in getting Canada into a
leadership position. In terms of taking the next steps,
we’ve been lagging behind. We’re starting to see the
fl ow of money into demonstration, but it’s been slow
in coming.
PN: Who’s leading the world in this area?Wilson: Up until a couple of years ago, I would
say from the research perspective, the two leading
countries were Canada and Norway. Since then we’ve
seen huge eff orts in the U.S. and Australia and grow-
ing eff orts in the European Union. More broadly,
Europe’s starting to take note of . . . like Germany.
Australia’s certainly doing well with its eff orts.
PN: When and how did scientists discover that CO2
emissions were doing irreparable harm to the globe?
Wilson: First warnings were at the end of the
19th Century. Sort of a recognition of the role of CO2
in the atmosphere. It wasn’t leading to any warnings
at the time, but it was a recognition that CO2 and
other gasses were helping to keep the earth warm and
at a liveable temperature. I guess it would probably
be in the early 1980s we started to get some concern
about what was happening and . . . and really brought
climate change to the fore as an issue of concern.
PN: How would you describe your relationship with Al Gore?
Wilson: I don’t have a relationship with him. I
don’t know him personally. Some of my colleagues
that would have gone to the Nobel ceremonies may
have met him, but I think Al Gore faces a lot of criti-
cism. Anybody who steps out to the forefront faces
criticism. I think personally he’s done a good job.
PN: What might Al Gore have done in the area of global warming had he won that election for president in 2000?
Wilson: I think we would have seen much more
engagement at the international level by the United
States. So with Al Gore, they would have signed the
Kyoto Protocol and may actually have seen some-
thing happen. Under the Kyoto Protocol, with the
way it was structured without the United States, it
was, frankly, doomed to failure. We could have been
a few years ahead of where we are today in terms of
taking some serious action.
PN: Th is has been a terribly cold winter and spring in most of the west. You won’t go out and say global warming’s just a myth, eh?
Wilson: (Laughs) No. One year out of the last
15.
PN: I just wanted to get an expert’s perspective on that.
Wilson: You can expect this. You can expect
extremes. Some of those extremes may be cold ex-
tremes. Th e reality is, we’re going to end up with
more hot spells and longer hot spells. Absolute tem-
peratures probably won’t change that much in terms
of our maximums.
PN: What brought you to Canada from England?Wilson: I did my undergraduate in geology at
the University of Nottingham. One of the professors
there had worked as a paleontologist, and I was in-
terested in his studies, so I talked to him about doing
graduate work. He said, ‘well, that works for me, but
you’ll have to do it in Canada, because I’ve just taken
a job at the University of Saskatchewan.’
PN: And you likely said, ‘where?’
Wilson: Yeah, so I checked my geography books
and my atlas. Actually one other professor at Not-
tingham had spent a year in Canada, so I went and
talked to him and he said ‘You’d be nuts not to take
the job, the opportunity. Go for it.’
PN: At the time, did you think you’d stay here for-ever?
Wilson: At the time, I think I fully expected to
stay. Th e opportunities in the U.K. when I left were
almost zero. Th e economy wasn’t doing well. I fully
expected to stay somewhere else.
PN: How did the Petroleum Technology Research Centre come to be?
Wilson: Do you want the full legend?
PN: Th e 150-word-or-less version.Wilson: Basically, at the time we had a (federal)
Liberal government and an NDP government here.
Th e Minister of Natural Resources, Ralph Goodale,
and our minister of energy were both doing a tour
of mine sites in, I believe, it was Kurdistan. And got
talking about the need to do something in the oil and
gas industry in Saskatchewan, recognizing we have
a unique set of issues and opportunities here. Th ey
came back and said ‘we want to start up some sort
of a research organization to meet the needs of the
Saskatchewan oil and gas industry and that kind of
landed on my desk and one of my colleagues with the
federal government in Edmonton. So the two of us
were tasked with pulling it together.
PN: How successful has it been?Wilson: It’s been very successful.
PN: How much of your work is done in Canada and how much in other parts of the world?
Wilson: My role is mostly in the area of look-
ing at funding opportunities, collaborative work, so
most of my travel is to conferences, meetings, etc., to
bring knowledge back to Canada, particularly Sas-
katchewan. Most of the work is actually done here,
although projects like the research program on the
Weyburn Oil Field had an extensive international
component.
PN: What Canadian politician is the best friend of the work you do?
Wilson: Right now, I’d have to clearly say it’s
Premier Wall. He’s a very active proponent.
PN: Why won’t soccer catch on in Canada?Wilson: (Laughs). I think soccer is catching on
in Canada. Everytime I drive down the street, I see
kids out practising soccer.
PN: It makes your heart feel good, eh?Wilson: It does indeed.
Raised nearly all over the world, Malcolm Wilson, currently based at the University of Regina, is one of the world’s foremost authorities on climate change and CO2 capture.
He was born in Egypt but raised in Britain and a number of other centres (Libya, Belgium, Bahrain, Jamaica) because his father was a member of the British military.
He received a geology degree from a university in Nottingham, Eng-land, and then came to the U of R.
A Calgary-based oil publication, Alberta Oil Magazine, said “Wilson is uniting researchers, industry and government under the banner of ‘Energy and the Environment.’
He is director of the International Test Centre for CO2 Capture and is co-founder of the Weyburn CO2 monitoring and storage project.
Wilson said he loves the wide open spaces of the Prairies and doesn’t plan to leave.
In mid-May, he chatted with Bruce Penton about a variety of things connected to climate change and other subjects, such as soccer and Melton Mowbray pork pies.
Malcolm Wilson
PIPELINE NEWS July 2009 A7
PN: In 100 words or less, tell me about the Wey-burn Monitoring and Storage Project that you just re-ferred to.
Wilson: Certainly phase one really thrust Cana-
da and Saskatchewan into the world limelight when
it came to geological storage and research. It’s there
to really understand the integrity of storage and the
sub-surface. It’s not trying to track in-house oil re-
covery. You can see what happens to CO2. And to be
able to utilize that knowledge globally to ensure that
there can be safe, long-term storage of CO2 and I
think we’re doing a very good job of it.
PN: Is there anything from England — a pastime, a food, a tradition — that you wish you could import to Canada?
Wilson: As much as my wife would object . . .
I grew up in the Midlands, and I liked my Melton
Mowbray pork pies.
PN: You can’t get those in Canada, eh?Wilson: No. From a cholesterol perspective, they
are gross, but they taste good.
PN: What’s one thing the average Canadian could do, starting right now, to aid in the salvation of the planet?
Wilson: I can give you all conservation . . . en-
ergy effi ciency, that’s all good. But I really think the
Canadian citizen has to be willing to pay a little more
on his or her electricity bill in order to allow a broad
range of emissions reductions technology to be put in
place. Whether it’s carbon capture storage, or what-
ever, there is a cost, and we have to be willing to bear
it because the cost of doing nothing is going to ex-
ceed any cost we have to bear.
PN: You’d never get elected as a politician if you said your electrical bills are going to rise.
Wilson: (Laughs) I’m afraid not.
PN: What do you like about Canada the best?Wilson: I really enjoy the lifestyle. I enjoy the
open spaces of Saskatchewan. I don’t like crowded
cities, so I have trouble seeing myself living in Lon-
don or somewhere like that.
PN: Your biography says you were born in Egypt and raised in Jamaica, Libya, the U.K., Belgium and Bahrain. Tell me a little bit about your youth.
Wilson: My father was in the British army, so
wherever he went, the family went along. He and my
mother were in Egypt when I was born. Th at was a
leadup to the Suez Crisis and shortly after I was born,
families were evacuated and then it became a round
of three years in England, three years abroad. Our
times abroad included Jamaica, Libya — pre-Gaddafi
days — but it was a great place.
PN: Overall, are we making progress in the area of climate change, or are we fi ghting a losing battle?
Wilson: I really think we’re on the verge of some
serious action. Up to this point, I don’t think we have.
We’ve talked but not acted. But I think that’s about
to change.
Malcolm Wilson
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By Geoff Lee
Calgary –TransCanada Corpora-
tion is one step closer to getting the
green light to proceed with its proposed
$7 billion (U.S.) Keystone XL crude
oil pipeline from Hardisty to the U.S.
Gulf Coast in Texas, passing through
southwest Saskatchewan.
Th e National Energy Board (NEB)
will convene an oral hearing of the ap-
plication for the Canadian section of
the North American pipeline Sept. 15
at a location to be determined.
Th e Canadian part of the pipeline
will extend from Hardisty, Alberta to
the Canada/U.S. border at Monchy,
Saskatchewan, and would involve con-
structing approximately 525 kilometres
of pipeline and related facilities includ-
ing pump stations, tanks and other re-
lated works and activities.
Once approval is obtained, con-
struction is expected to begin by mid-
2010 and will result in a total capital
investment of approximately $12 bil-
lion (U.S.) when completed by 2012.
Th e project is already being ap-
plauded in Provost which enjoyed the
economic spinoff s from the last Key-
stone pipeline project in the Hardisty
area.
“We watch these approvals closely
and we try to work with companies as
closely as we can to foster the develop-
ment,” said Bert Roach, Provost’s eco-
nomic development offi cer.
“Usually what happens with pipe-
lines construction is we see an increase
in activity when the workers are com-
ing through and hopefully we see an
increase in one or two jobs in the long
term as well.
“Th is project would work to in-
crease the importance of the Hardisty
Terminal area. It continues to establish
the area as an important one for oil and
gas.
“It’s really exciting to see the de-
velopments happening at the Hardisty
Terminal. It’s always been a major
crossroads for pipelines. With the new
pipelines that have gone in the last two
or three years, it further increases the
importance of that terminal.”
Th e new XL pipeline off ers a more
direct route to the Gulf Coast than the
590,000 barrels per day Keystone pipe-
line which is scheduled to go into ser-
vice in early 2010.
Th e entire 3,200 km 36-inch XL
pipeline would incorporate a portion
of the Keystone Pipeline to be con-
structed through Kansas to Cushing,
Oklahoma, before continuing through
Oklahoma to a delivery point near ex-
isting terminals in Nederland, Texas to
serve the Port Arthur, Texas market-
place.
Also proposed is an approximate
80-km pipeline to the Houston, Texas
marketplace.
Th e expansion project in Canada
follows TransCanada’s success securing
long-term contracts of additional oil
that will expand the supply to 900,000
barrels of oil day with an initial volume
of 700,000 barrels.
Th e Keystone XL was announced
last July by Hal Kvisle, TransCanada
president and chief executive offi cer.
“Th e Keystone expansion will be
the fi rst direct pipeline to connect a
growing and reliable supply of Cana-
dian crude oil with the largest refi ning
market in North America,” he said at
that time.
“Th e Keystone Pipeline will be
constructed and operated as an in-
tegrated system with delivery points
in the U.S. Midwest and U.S. Gulf
Coast.”
Keystone pipeline expansion plan to be heard in September
There is a lot of excitement in Hardisty as crews work on TransCanada’s Keystone pipeline at the Hardisty Terminal.
These signs provide instructions and point the way to the entrance of Trans-Canada’s new tank farm and construction site for the Keystone pipeline in Hardisty.
PIPELINE NEWS July 2009 A9
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Astro Boiler has been in the Astro Boiler has been in the oilfi eld service industry since 1989oilfi eld service industry since 1989
Diary: Th e 4th annual Ladies of the Patch PWM Steel Petroleum Golf Clas-sic was a wonderful expe-
rience for me. Th e sky was blue; the course was in great shape and I had a lot of fun golfi ng. I made some new friends and helped raise money for the Lloy-dminster Sexual Assault
Centre.No doubt these
memories were person-
ally shared, if not written
down, by most of the 144
golfers who teamed up
with other female work-
ers from the oilpatch for
a round of golf at the
Lloydminster Golf &
Country Club on May
22.
“As women, we are
in the offi ce every day
and don’t get a chance
to meet each other,”
said Margie Florence, a
member of the organiz-
ing committee.
“We just talk to each
other on the phone. Th is
is a chance to put some
faces to the names that
we deal with.”
Th e Petroleum Golf
Classic groups the play-
ers into foursomes for an
18-hole Texas scramble
format where fun over-
rides score keeping.
“Th is is the only event
of its kind in our area
that allows the women
who work in the oilfi eld
to get together and net-
work, have a drink or two
and shoot a few holes of
golf,” said Debbie Hor-
bach committee chair.
When asked how
the men they left behind
at the offi ce would sur-
vive their day, Horbach
quipped, “Quite frankly
we don’t care. We’ll worry
about that on Monday.”
Aside from fun, the
event is a major annual
fundraiser for the Lloy-
dminster Sexual Assault
Centre to the delight of
the centre’s executive di-
rector, Muriel Ralston.
“Th e fundraising
is imperative to us as a
‘non-profi t’ – and to have
Deb and the Ladies of
the Patch set this up to
organize it – and for us
to just come up and vol-
unteer, it’s hugely impor-
tant fi nancially as well
as for public awareness,”
said Ralston.
“We have to fund-
raise a certain amount
every year and Deb’s
committee does a good
part of that by running
the Ladies of the Patch.”
Th e assault centre
has received over $50,000
from tournament pro-
ceeds with the 2009 con-
tribution to help support
fi ve frontline crisis in-
terventionists who work
with male and female
children, youth and adult
victims of sexual vio-
lence.
“We accompany
them to court and pre-
pare them for court and
follow up with them for
up to a year,” explained
Ralston.
Th e Lloydminster
centre is one of 17 sexual
assault centres in Alberta
and Saskatchewan that
focus strictly on frontline
crisis intervention with
sexual assault victims.
Page A11
Ladies of the Patch scores with players, sponsors and a charity
Jen Keach from Mike’s Oil eld intended to send her golf ball y-ing down the fairway.
Dressed in blue are the nine members of the Ladies in the Patch organizing committee. Holding a cheque for $10,000 is Christy Wolanuk with Sherry Jeffery to her right both representing the Lloydminster Sexual Assault Cen-tre.
PIPELINE NEWS July 2009 A11
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(780) 874-WASH (9274)WWW.TCTW.CA MON-FRI 7:00am - 9:00pm, SAT AND SUN 10:00am - 5:00pm
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With mud on their mind
Page A14Th e truck wash rang-
es in cost from $60 for
a no-soap maintenance
wash for a semi to $140
for full soap, wash and
rinse for a B-train. A full
wash for a semi comes to
$110 and Merrild says
that’s a lot cheaper and
quicker for drivers than
hand washes.
“Th ey don’t have
to spend hours doing
it themselves,” he said.
“Th ey can be on the road
and get their stuff done
that makes them money
hauling. Th e main thing
is the time they save. Th ey
can pull off the highway
and be back on the high-
way in 10 to 15 minutes
if there’s no line up.”
Th e TransCanada
Truck Wash opened in
December but manage-
ment held off the grand
opening to tweak the sys-
tem, train staff , build up
a customer base and wait
for hot dog weather.
“In the beginning, we
had to let everyone know
we were open. Th at has
taken some time,” said
Merrild. “After winter
started to pull back and
there was mud on the
road during the spring, a
lot of business has come
our way.
“Our main custom-
ers are oil hauling trucks
and service trucks like
vac trucks and fl ushbys.
We’ve had a couple of
service rigs come in here.
We can also wash buses.
“In this area, there
are a lot of gravel roads
and oil hauling. So that
means a lot of trucks.
Hauling on gravel roads
makes them dirty and
muddy. In the oil busi-
ness, when it’s busy the
trucks are moving 24/7.
With the time they can
save washing their trucks,
it makes this business
perfect for the area.
“Other than that
there are some highway
guys who go through
Lloyd, see the sign and
come in for a wash. Th ere
are a lot of grain haulers
as well who haul grain
to the canola plant in
town.”
Unlike the car wash
bay which pulls the vehi-
cle through wash stages
on a conveyor system, the
truck wash is set up for
a driver to run his own
vehicle through at a slow
one foot per second pace
after a meet and greet
with staff .
“A lot of this is tak-
ing care of the customer,”
said Merrild. “We make
sure drivers are well in-
formed and know what’s
going to happen. We ride
with every new driver
and make sure they go
the right speed and get
the right wash.”
TransCanada Truck
Wash is owned by seven
family groups in Lloyd-
minster who Nysetvold
said invested on the be-
lief this is a better way to
wash trucks.
“In the research that
we did, given we are all
local, we know there is
demand here and we had
availability of land and
we decided to go forward
with it.
“We are extremely
excited about it. We are
going through some
tough times with the
economy but we can see
the light and it’s working
well.
“Th ere are a number
of manual hand wash lo-
cations in town but what
we are selling is a special
type of service. We’re sell-
ing a good quality wash
and time convenience.
Th at’s the big thing. With
a lot of these heavy haul-
ers, time is money.
“Our wash is a fi xed
cost. With a manual wash
it’s time dependent. De-
pending on the amount
of time they spend is
what they get charged.
Whereas here, you are in
and out in eight minutes
and you have a fi xed cost
and you are gone.”
TransCanada has a
full range of payment op-
tions from fl eet accounts
and VIP cards to credit
cards. No coins or bills
are needed.
MLA Lloyd Snelgrove congratulated the group owners of the TransCanada Truck Wash during the grand opening June 6.
First time truck wash user Shane Henry is guided through the 200-ft long wash bay by an onboard staff member. It can be hard to see with the huge volume of water sprayed in the eight minute wash and rinse process.
PIPELINE NEWS July 2009A16
PIPELINE NEWS July 2009 A17
PIPELINE NEWS July 2009A18
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By Geoff Lee
Calgary – Imperial Oil Limited has been steadily hiring new employees to
work on the fi rst phase of its Kearl oilsands project long before it was approved
by the company’s board of directors on May 25.
Th at fact was revealed by Imperial spokesperson, Pius Rolheiser who said
considerable site preparation has been going on since June 2008 where the proj-
ect received regulatory approval.
“As we were preparing to make an investment decision for Kearl, we were
continuing to do the work necessary,” said Rolheiser.
“We have been hiring on a pretty consistent basis to fi ll critical needs for
the Kearl project.
“Th ere has been a fairly high level of activity over the fall, winter and into
the spring,” said Rolheiser. “We have more than 1,000 people working on the
site at present.”
An initial site ditching and drainage program was completed in the fi rst
half of 2008. Work in the second half of 2008 included clearing and draining
surface water from the initial mining and plant site areas. Muskeg and topsoil
is being removed and stockpiled for use in future reclamation.
Imperial plans to develop and the operator Kearl in three phases with its 30
per cent partner ExxonMobil Canada.
Th e fi rst phase is expected to begin production in 2012 with an output of
110,000 barrels of bitumen per day. Full project production is expected to top
300,000 barrels a day of bitumen, Kearl’s total recoverable bitumen resource is
estimated to be 4.6 billion barrels.
Th e announcement from Imperial to go ahead with the fi rst phase of Kearl
follows a year-long process to reduce development costs now estimated at $8
billion or $4.50 per barrel.
“We took the time to work every aspect of costs with our contractors and
our planning people to make sure when we made the investment decision that
we were confi dent we had a project that could be executed in a quality fashion
at the lowest possible cost,” said Rolheiser.
“We took our time as we do with all major projects. We continue to believe
it’s the right decision.”
In 2005, Imperial had estimated construction costs to be $5.5 billion as part
of its regulatory fi ling including estimated annual expenditures of about $1 bil-
lion to operate the facility at full capacity.
Th e Kearl oil sands project is a mining and extraction project located about
75 kilometres northeast of Fort McMurray on Crown land leases. Th e project
lands are not suitable for recovery using in-situ techniques.
“Th ere will be a mine pit and a central extraction/separation plant where
the oil will be processed,” said Rolheiser,
“We have are plans to build an upgrader as part of the initial phase. We have
not yet made a decision on whether an upgrader would be part of the subse-
quent phase of the Kearl.”
Th e Kearl project will be developed using technology similar to what’s cur-
rently being used at existing oil sands mines in the Fort McMurray area with a
commitment to limit the environmental impact.
Page A19
Imperial recruiting for its $8Imperial recruiting for its $8
”“
PIPELINE NEWS July 2009 A19
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Imperial Oil began site clearing and muskeg drainage in 2008 to mine its Kearl oil sands site 75 km northeast of Fort McMurray. Photos courtesy of Imperial Oil
Story and photos by Geoff LeeMaidstone – Weather topped the news at this
year’s Maidstone Oilmen’s Golf Tournament held at
the Silver Lake Golf Club under a rare blue sky and
light winds on June 10.
“We picked a good day. We’ve had worse,” said
organizer Ross Donald. “We’ve had snow, we’ve had
rain. We’ve had frost. Not too often do you get sun
and no wind.”
Th e overriding economic chill, however; limited
the roster to 72 players and cut the tournament to
one day in the usual match play format.
“Last we ran two days and had 128 players,” said
Donald who is also the treasurer of the Maidstone
Oilmen’s Association and the person in charge of
fundraising.
“We do get a lot of sponsorships from oil and gas
supply companies, service companies and individu-
als. Donations are down this year because of low oil
activity but we pulled it off . I am not sure if we are
going to make any money this year.”
Th e oilmen’s web site has a lengthy list of dona-
tors and sponsors of the 18 fl ights, food and refresh-
ments and hidden holes.
Over the years, the organizing committee has
invested extra profi ts from the tournament for im-
provements at the golf course and the regional park.
Projects have included a large shelter on the fi fth
hole, a gas barbeque for the clubhouse deck and a
registration and storage building at the fi rst hole tee.
Th e oilmen’s association also uses some of the
proceeds to sponsor a $1,000 bursary and two $500
bursaries for Maidstone High School graduates seek-
ing post secondary education in an oilfi eld related
program.
Money was on the minds of 10 lucky golfers
whose names were drawn to compete for $500 in a
closest to the pin chip in on the ninth hole from 100
yards.
Th e cash was pocketed by Lance Wakefi eld who
was eager to recall how it happened.
“It was on ninth hole from 100 yards and it end-
ed up just outside of eight feet – the fi rst bounce – it
was about a foot from the cup,” he said. “It’s a good
way to start the weekend. I used a 54 degree wedge.
I was thinking driver to run it up but I think wedge
is a better play.”
Asked if it were luck or skill, Wakefi eld off ered
that it was both. “You have to be good to be lucky and
lucky to be good,” he said.
Luck was all it took for Walher Kohuch to win
the grand draw prize for a day of golf for four at the
Northern Meadows 18-hole course in Goodsoil. Th at
prize was donated by Darryl Garrison from Lloyd-
minster.
No one won the hole-in-one fi shing trip for four
sponsored by Investors Group but many were moti-
vated to try.
Perhaps the most coveted prize is the Ernold
Priest Memorial trophy awarded this year to Bob
Kenyon chosen the most sportsmanlike player by a
secret ballot vote.
Th e trophy was donated by Wesco Services in
Maidstone in 2001 in honor of Priest who was a
long-time oilfi eld worker in the area.
Donald works for Midfi eld Supply Ltd. in town
and has played in 10 previous Oilmen’s but skipped
this year’s for his son’s graduation. When he does play
the game, he says he’s in it for the fun and entertain-
ment.
“I am not a good golfer. I enjoy the whole course.
Th e guys that are taking it seriously play in the cham-
pionship fl ight,” he said.
Prizes were also awarded to all 18 fl ight winners
including top fl ight winner Robin Moroziuk.
Th e other fl ight winners are Al Cote, a man
with one name called Boone, Kevin Hegseth, Walter
Kohuch, Doug Tuplin, Ron Falcon, Nathan Litch-
fi eld, Trent Graham, Cal Smith, Tim Oman, Paul
Lawrence, Ron Spence, Mick Armstrong, Carter
Makin, Bruce Slade and Dennis Noble.
All of the golfers went home with a prize.
Maidstone golf tourney one day this year
Organizer Ross Donald and his cousin and event volunteer, Shelley Wichman.
Ken Drury from Weatherford in Lloydminster putts his stuff.
Walter Bateson from Redhead and Dennis Noble from Canwest Propane.
PIPELINE NEWS July 2009 A23
By Geoff Lee
Calgary – Oil and gas giant
Encana thinks public awareness is one
of the most eff ective tools to reduce theft
of its oilfi eld equipment.
Rich Neville, security advisor for Encana’s
Foothills division wants the public to know his com-
pany has recently adopted the microdot technology
of Certifi ed Secure Identifi cation Corp in Red Deer
to mark its oilfi eld assets.
“Our company and many of the other energy
companies out there are experiencing an increase in
general thefts in remote or isolated sites from ev-
erything from valves and solar panels to equipment,”
said Neville.
“CSI had done a presentation on their product
a while back. Because we were starting to experience
an increase in theft, and we were at a dilemma how
we were going to mark our existing assets, we saw
that as a possible solution.
“We are marking everything from tools to heavy
equipment. It’s more for retrieval so we can identify
these assets for court purposes.”
CSI’s microdots are microscopic identifi ers as
small as a grain of sand. Th ey can be easily applied to
mark oilfi eld assets using a specially formulated,
clear drying, ultra violet reactant adhesive
that makes them hard to detect.
Th e identifi er includes a serial num-
ber and a web site that can only be read
under a magnifying glass using a UV
black light.
“Th e technology is easy to
apply but we see it as a system
to track property whereas
the other measures we
are taking are preven-
tive with alarms and
camera systems,”
said Neville.
“ W e
started with
CSI mark-
ing solar
panels but we
also saw a n
opportunity
to mark our
other assets with
it. We were already in
the process of upgrading
our security on major gas sites
anyway, so it just kind of worked to-
gether.
“We have also implemented some other security
measures in the past few years. Th e CSI marking is
only one component of it. We protect our assets with
everything from fences to alarm and camera systems.
We have a pretty strong and diligent security system
in place.”
Encana has six full time security advisors on the
Encana adopts CSI technology to deter theft of oil eld assets
A corporate security kit includes a vial of microdots and an applicator to apply tiny microdot identi ers to valuable assets. Photo submitted
payroll they contract out a lot of security work as
well.
Th ey are on the lookout for random thieves who
steal equipment in return for cash and for organized
thieves who have networks of sellers who can move
stolen assets around quickly.
“Th eft has always has been a problem but it
seems to have increased whether it’s related to the
economy or other factors,” said Neville. “We want
to be proactive in preventing it. Most of the theft is
external theft but there is always a certain amount of
internal theft going on with any organization.
“Public awareness helps and we hope with this
article, we get the word out that we are increasing
our security at our gas sites. It’s important to get the
word out that there are proactive enhancements to
try to prevent this.
“As a security group, we communicate back and
forth with other companies and we are all aware of
what is happening to each other. Other companies
are experiencing the same problems we are.”
Neville says the police are familiar with the CSI
marking technology and if they suspect something
is stolen, they can use the black light to identify the
property owner.
“Th ere are a number of products that are similar
to CSI but we found that CSI suited our purposes,”
said Neville. “It’s low cost and it’s not labour inten-
sive to apply. It helps our staff in accepting the sys-
tem.
Encana is also affi xing the CSI warning labels
to some of it remote assets to alert would-be thieves
that the assets have been marked.
“As the word spreads that most of Encana’s
equipment is marked people thieves will be aware of
that,” said Neville.
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PIPELINE NEWS July 2009A24
By Geoff Lee
Hardisty – Kevin Hayes, area manager of Gibson Energy’s Hardisty Termi-
nal. knows the value of engineer’s drawings.
Th e one is his offi ce helps him keep track of his company’s ever growing ter-
minal assets that includes 13 crude oil storage tanks with four new tanks in the
fi nishing stages at the adjacent Battle River Terminal.
Down the road from their tank farm is Gibson’s fractionation plant where
natural gas liquids (NGL) are separated into ethane, butane, propane and con-
densate. Th e plant has the capacity to process 5,000 barrels per day of NGL.
“Th e oil is shipped here by truck or pipeline and we store it and if it requires
blending we will mix it with condensate and ship it out the door to meet viscosity
and density specs,” said Hayes.
Th e new storage tank construction raises Gibson’s storage capacity in Hardisty
to over three million barrels of crude delivered to the site by pipelines and Gib-
sons’ yellow trucks.
“We just built four tanks and we are just bringing them online now,” said
Hayes. “We will be connected to the Keystone pipeline. Th at’s not done yet but
we are making our connections here before the fall.”
Gibson receives about 30,000 cubic metres of crude oil each day by truck and
pipeline including its own 150-kilometre Bellshill Lake pipeline network that
brings oil in from Forestberg and its 300-km Provost pipeline system.
Th e trucks come from as far away as Fort McMurray with heavy bitumen and
as far south as Lethbridge and unload at crude oil terminals operated by Gibson’s,
Husky Energy and Flint Hills Resources.
Trucks deliveries are coordinated by Gibson’s truck transportation division in
the town of Hardisty.
“We also accept oil from the Athabasca pipeline and the Inter Pipeline Fund
(IPF) and we store it and mix it, blend it and ship it out on two of Enbridge’s
pipelines, the Kinder Morgan Express pipeline, the IPF southbound and Trans-
Canada pipelines.”
Work is under way in Hardisty on TransCanada’s 3,2000-km Keystone pipe-
line expansion that Gibson will tap into to ship it products to the U.S. market.
“Th e economic impact of these projects is huge,” said Hayes. “Th ere are about
eight companies in this complex. Th e majority of people who live in Hardisty are
employed here.
“It’s going to get bigger. Companies keep buying land. We have 300 acres
still left that we could build on and Enbridge has at least that. TransCanada has
bought two and a quarter sections of land and Husky has bought another quarter
of land so it could be huge.”
What’s driving the growth in Hardisty says Hayes is Fort McMurray and the
U.S. demand for energy.
“All of the pipelines go south or southeast. It’s exciting but it’s been like that
for the past three or four years. It’s been busy around here,” he said.
“We haven’t seen a slowdown here. When oil was down to $40 per barrel,
producers – if they had a well that was marginal, they might not have brought it
on line if they had trouble – so that brought down production.
“Right now, unless oil takes a big jump, people are going to fi nish their proj-
ects and that will be it until other funding comes along.”
Hayes says Gibson has no plans for further expansion at Hardisty which
might lighten his managerial responsibilities at the plant until the next project
comes along.
“Basically I oversee all of the operations here,” said Hayes. “I make sure all of
the oil meets ‘spec’ when we deliver it. I am in charge of people development and
make sure our operators are happy and all of the employees are happy. If they have
concerns they come to me.
“Staffi ng is a problem but we have some long-term employees who are 10
years plus. A lot of them have grown up in the community and they are happy the
way Gibson treats them so we don’t have a high turnover.
“Th at is a challenge though when you bring people in. We built a lab year
about eight years ago and we wanted to staff that with lab techs.
“In order to able to attract qualifi ed people, it was a challenge to get them
out of the city. We did get three qualifi ed people. I think a lot of the problem is
Hardisty doesn’t have the facilities to attract people here.”
Th ere is also the realization that a large workforce is required to construct
new tanks and facilities but once they are operational, the system can be con-
trolled remotely with a skeleton staff .
Gibson has what it calls a Supervisory Control and Data Acquisition system
in Hardisty to remotely monitor all of its key pipeline and terminal functions on
a 24/7 basis.
Hayes gets asked a lot if Hardisty could use a refi nery and he always replies by
saying he doesn’t think Hardisty would be able to attract enough qualifi ed people
to run it but admits he could be wrong.
“If you look at what Fort McMurray started out with and what it’s developed
into, it’s all a matter of infrastructure plans and getting together to develop a
major plan for Hardisty,” he said.
Th e MD of Provost is doing just that with their proposed Rosyth Area Struc-
ture Plan to create municipal policy and regulatory framework to allow for long-
term terminal expansion. Th e plan covers 24 sections of land identifi ed for poten-
tial terminal expansion.
A public hearing was held on the area plan in Provost June 11.
Gibson adds four oil storage tanks at the Hardisty Terminal
Kevin Hayes climbs down the stairs of one of four new tanks being nished at the Battle River Terminal in Hardisty.
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PIPELINE NEWS July 2009 A25
By Geoff LeeLloydminster – Reliance Industrial
Products Ltd. in Lloydminster is using
a mobile service trailer to pressure test
oilfi eld and industrial hoses on location
saving customers time and money.
Tests are conducted annually on
hoses connected to vacuum trucks, oil
hauling trucks, pressure trucks, coil
tubing vehicles and service trucks.
One of their latest customers was
Conex Rentals in Lashburn who called
out the mobile unit in late June to pres-
sure test and certify their pressure truck
and vacuum truck hoses and iron cou-
plings at their shop.
“It worked out real good for them,”
said Reliance foreman Randy Doull.
“Th ey seemed to be real happy. Th ey
didn’t have to do a lot of this through
the week because we could do all
through the weekend for them. Th ey
didn’t experience any down time.”
Oilfi eld hoses are required by law
to be inspected, pressure tested with
water and certifi ed safe once a year.
A hose blowout can cause the hose
to whip around and damage property
or injure or even kill a worker with the
right amount of pressure.
For some companies, setting aside
the time to bring their hoses to the Re-
liance shop can be like making a dental
appointment. Th ey know they need it
but don’t want to take time off work.
“For companies that want pressure
testing at their site, we are ready to do
it,” said Doull. “It saves them the down
time and they don’t have to do the trav-
elling. We do the travelling for them.”
Th e mobile trailer is self contained
with a water tank, two pumps, pressure
gauges, a computer and printer and a
generator to supply all of the power.
“We start with a physical inspec-
tion of each hose to make sure there are
no scars or exposed wires and then we
apply pressure to make sure there is no
pressure drop-off ,” said Doull.
“We fi ll up the hoses with water
and make sure there are no air bubbles
in there because the air will compress
and make it dangerous if it were to let
go.
“Hoses are made out of rubber so
there is a bit of expansion but you want
the pressure to be steady all the way
across the test for holding and main-
taining the same pressure.”
Reliance usually pressure tests hos-
es from 10 to 50 feet in length at their
working pressure for a full 15 minutes
or longer.
“Every hose has a working pres-
sure,” explained Doull. “Basically with
every product that comes out of our
shop we will apply 1.5 times the work-
ing pressure but in most cases the
working pressure and the testing pres-
sure are the same.”
“If the test passes, the operator is
presented with a paper certifi cate to
keep in his vehicle and a metal band
with an engraved invoice number, test
date and working pressure is affi xed to
the hose.
If a hose fails, Reliance can repair
it in the trailer or make a new one or
leave it failed if it’s beyond fi xing.
Reliance specializes in hose assem-
blies and repairs for hydraulic air, in-
dustrial, composite, thermoplastic and
BOP hose assemblies and can pressure
test hoses with up to 20,000 psi in the
shop.
“Th e testing is important for safety
and it’s important for companies keep-
ing their equipment up to date,” said
Doull who notes there is also an envi-
ronment incentive.
“If you have any oil leaks or hydrau-
lic leaks, you are going to get a mess,”
he said. “Th e government is sticky on
how clean your well sites have to be
now.
“Trucks that take oil to the tanks
have to have their hoses pressure tested
so they don’t have any spills. If they have
a spill, it’s usually going to be fairly big
if a hose lets go.”
Reliance cuts hose pressure test time
Hoses and irons that are certi ed safe are af xed with a metal band with an engraving of the test date, invoice number and test pressure.
Foreman Randy Doull pressure tests hoses for companies with a mobile trailer service.
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PIPELINE NEWS July 2009A26
CONGRATULATIONS to Arnie Lundon your Retirement!
Thank YouThank Youfor over 40 years of service!
www. inc.com
By Geoff LeeLloydminster– Shivers will be a thing in the past
for 63-year-old Arnie Lund, who plans to spend ev-
ery winter of his retirement with his wife Bernie bak-
ing under the hot Arizona sun.
“I never want to be cold. I hope never to spend
a winter again in northern Canada,” said Lund, who
retires on July 31 after 41 years with Nexen and its
various predecessors.
“Once the weather turns cold, I am going to be
like a bird and going south. We bought a house in
Mesa, Arizona. It backs on to the 14th hole of the
Arizona Golf Resort
“Hopefully, as long as my health keeps me there,
that’s where I am going to be. We will live there for
six months in the winter and come back here in the
summer.”
But fi rst things fi rst. Th e day after Lund retires
from Nexen as an area materials coordinator, he will
be heading to Muenster, Saskatchewan, to coach the
Lloydminster Twins baseball team in the Mosquito
AA provincials.
“After that I will go up to my cottage at Loon
Lake and go fi shing and golf and enjoy the sunshine,”
he said. Th e couple sold their house in Lloydminster
last year to become snowbirds.
Warmth is important to Lund who gets a chill
recalling his six and half years as roughneck in the
Arctic. He worked on an Imperial oil rig at Atkinson
Point in the NWT where the company made Cana-
da’s fi rst Arctic oil discovery in 1970.
His start date with Imperial was Sept 20, 1968, at
Rainbow Lake north of Edmonton on a rig number
4 that was torn down that fall and barged from Hay
River to Inuvik and on to Tuktoyaktuk.
Lund and two other men fl ew in from Inuvik on
a single engine Beechcraft to set up the camp for the
rest of the crew. Th e trio arrived Dec. 11, four days
after the Arctic plunged into total darkness with a
welcoming wind chill of -94 on both temperature
scales.
“We just had fl ashlights to get the lights working
and heat the camp,” said Lund. “It took six to seven
hours to heat the camp. My fi rst night in the Arctic
was the worst.
“Th ere were some days with the wind chill that
were -70 to -90. Th ere were some ferocious winds.
Th ere is nothing to slow it down.
“Th e rigs were prefabs from the south. We had
some modifi cations we had to do fairly fast to get our
rigs more adapted to the weather up there.”
Nexen retiree ready to y south with like-minded snowbirds
Arnie Lund, middle, was featured in Imperial Oil’s Annual Report of 1968. Arnie spent more than six years on drilling rigs in the high Arctic.
Photos submitted
Lund said he didn’t like the cold but stayed on
because there was little or no oil exploration happen-
ing in his home province of Manitoba at the time. He
was born in Elkhorn, Man.
“Th e rigs were slow and I was young and didn’t
know any better,” he said. “I just stayed for the mon-
ey. After six years they shut down the operation. Th e
price of oil was too low. Th ey shut it down and con-
tracted out rigs.”
Lund was transferred to Imperial’s Steelman oil-
fi eld near Estevan as a battery operator in charge of
three batteries and 49 producing wells. He worked
there for a variety of Nexen predecessors until trans-
ferring to Lloydminster in 1996.
He says in those early days in Estevan there was
no way to get oil of the Bakken.
“Back when I started, waterfl ooding was just
getting underway. Th ere were no enhanced recovery
techniques in the 60’s.
“Th ey were all pilot projects at the time. Now,
there’s all this new technology with CO2 and pro-
pane. It’s gone crazy as far as technology goes. People
are getting smarter with it,” he said.
Th e Bakken oilfi eld was familiar territory as
Lund started at age 18 working rigs in Virden, Man.,
and Carnduff . It was during a holiday to Edmonton
when he applied to Imperial and launched his Arctic
adventures.
Lund says when people hear he worked in the
Arctic, the fi rst thing they ask is "how cold was it and
how did you manage?"
Page A27
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PIPELINE NEWS July 2009 A27
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Serving western CanadaServing western Canada
After 41 years he is ready to retire Page A26
“Th e Arctic can kick up some pretty good storms,” he said. “You have to
walk from the camp to the rigs. You can hear the motor but you can’t see it.
We had ropes to walk from the camp to the rigs.”
His overriding memory of drilling in the Arctic was the reckless way the
environment was treated compared with today.
“Th ere were lots of things we did in the Arctic that we would never get
away with today environmentally,” Lund said. “If people were to read about
them all, I would probably be in jail. What was fi ne to do 20 years ago, you
don’t even talk about today.”
Lund has never been back to the Arctic and he likes his nice warm offi ce.
Being a materials coordinator is his favourite job.
“Th e majority of my work is here in heavy oil,” he said. “I price material
when they move it around and I make monthly or quarterly visits to our shal-
low gas operations in Medicine Hat, our coalbed methane offi ces in Leduc
and the Dilly Creek shale gas project in B.C.”
Lund is known for this sense of humour and will be missed by those who
know him well, like adminstrative coordinator Elaine Hewson.
“He makes every day unique,” said Hewson. “He’s always happy and jok-
ing and writing ‘nasty’ funny little e-mails. I’ve enjoyed working with him that
way. You can tell when he’s not here.”
As Lund counts down the days and hours on a company whiteboard, fa-
cilities construction manager Joe Mills is on a mission to shame Lund into
abandoning his beloved green Riders in favour of the Eskimos.
“Riders is what he wears on the outside but in his heart he’s Eskimo,”
quipped Mills who popped into Lund’s offi ce to get his licks in.
Ironically, Lund was wearing green during the interview and says it’s be-
cause but there are “a couple of Eskimo fans down the hall. Every now and
then I have to remind them who the best football team is.”
Lund is proud to state he rode in a company Grey Cup parade fl oat in
Regina when the Riders won the cup in 1989. Lund also likes fi shing and golf
and says he chose to retire early to enjoy life.
“A lot of my friends that I grew up with – a lot of them are not around
and many of them are sick. Th at’s what made my mind up about retiring,” he
said.
“I don’t want to lose the camaraderie. I will do my best to keep in contact
with buddies and that.”
Ernie Lund tracks the hours and days to retirement. By now he has less than three weeks to go.
PIPELINE NEWS July 2009A28
By Geoff Lee
Paradise Hill – In a small town like Paradise Hill,
the grand opening of Hardy Excavating Ltd.’s new
shop turned out to be a big deal.
It seemed like the entire community showed up
for a tour of the building and a barbecue party with
activities for kids, mule-powered wagon rides, draw
prizes and a backhoe rodeo.
Th e only thing that was missing from the fes-
tivities until the supper hour was the celebrity owner
John Hardes who was called out early in the day for
company business – cleaning up an oil spill.
“Our main business is oilfi eld construction and
maintenance,” said Hardy who owns the business
with his wife Rosemary.
“We do pretty much whatever oil companies
need. We do lease set ups and spill cleanups and fl ow
lines. We work with crews like L & L Oilfi eld Con-
struction and Granite Oilfi eld to set up for wells. We
do gravel leases and help the crews to set up equip-
ment.”
Hardy Excavating also operates Wesco Services
Ltd., a redi-mix concrete company acquired in 2005
followed by the opening of a second redi-mix plant
in St. Walburg.
“It’s been going really good,” said Wesco man-
ager Blaine Fowler. People in the patch are busy and
working hard and building cabins and new houses
and shops. We have 10 redi-mix trucks. We mix the
concrete and deliver it.”
While business was brisk at the grand opening
barbecue pit, Hardes jumps at every chance to earn a
buck excavating as the slowdown in the oipatch leas-
ing continues.
“About 80 per cent of our work is oilfi eld,” said
Hardes. “Th ings are slow. Drilling helps. When drill-
ing is going everything gets going. We will sometimes
get involved in oil cleanups and reclamation.”
Hardy Excavation is currently working with a
paving crew to complete a two mile stretch of high-
way near Onion Lake and is also prepared to take on
more seasonal water and sewer work for farmers.
“In the winter, we do snowplowing and sanding
roads for oil companies,” said Hardes. “Th at lets us
keep our staff through the winter when it’s normally
slower.”
Th e new 9,000 square foot shop with an addi-
tional 7,200 sq. ft. of offi ce space is the result of the
most recent boom time that prompted Hardy to ex-
pand and relocate operations from the family farm
north of Paradise Hill.
“We outgrew our location and we had no privacy
here,” explained Hardes. “We had all that equipment
coming in to where we live. We wanted to separate
our personal life from work a little bit.”
Back in 1981 when Hardes got his start – with
one backhoe – privacy and expansion were non-is-
sues.
“I did whatever I could,” he said. “I starved to
death. I ran it by myself for quite awhile and then
for a long while there was just two or three of us. We
grew a lot in 1995 and in 2005, we bought Wesco
Services and grew some more.”
Hardy Excavating moved its equipment includ-
ing dump trucks, tractor trailers, backhoes and snow-
plows into the shop before last Christmas but held
off the grand opening until offi ce staff settled in and
warmer weather arrived.
“When you are based out of a small town people
are interested in what going on around them and we
wanted to give everybody a chance to look around,”
said Hardes.
“We had a little bit better turnout than we ex-
pected. We are not sure how many turned up since
not everyone signed the registry. Judging by the food
that went, we had about 500 to 600 hundred. It was
a good turnout.”
Whole community turns upto party with Hardy Excavating
Backhoe supervisor Grant McLelland helps 10 year-old Brett Brassard manipulate the bucket in a game of backhoe rodeo.
Maxine and Jerry Hougham, an equipment op-erator, gave mule rides in their wagon pulled by Lefty and Di.
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PIPELINE NEWS July 2009 A29
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distributors all across North America,” said Basset.
“Plus we have a dealer service network with Peter-
bilt, Kenworth, and Volvo – lots of places where
they can get service and parts.
“Th e engine performs well,” said Basset. It’s
one of the top engines in fuel effi ciency.
“As far as our shop goes, we will service those
engines whether it’s a rebuild at time of wear out
or a replacement it if it’s more cost eff ective to the
customer – with an exchange product that is made
and designed by Cummins. We will stand behind
that.”
Basset says Cummins has a one-year unlimited
hour warranty on its natural gas engines that he
says is the best warranty in the industry. Th e en-
gines themselves have been designed on the diesel
since the 1980s.
“We have millions of those engines out there,”
said Basset. “We have so much design money into
those engines and we stand behind them. Th ey pro-
duce great horsepower versus anybody else and we
have the support in parts and services right here.” Lloydminster branch manager Myron Basset dis-played this 8.3- litre natural gas engine on cus-tomer appreciation day.
Journeyman mechanic Kyle Severin works on a gas engine for Husky Energy. Photo by Geoff Lee
Customer appreciation day
PIPELINE NEWS July 2009 A31
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PIPELINE NEWS July 2009A32
PIPELINE NEWSSaskatchewan’s Petroleum Monthly
B-SectionJuly 2009
On Call 24 Hours a Day Toll Free 1-866-332-2121 Fax: (306) 637-2124SALES • SERVICE • PARTS • LEASING
By Brian ZinchukWeyburn – Organizers of the Saskatchewan Oil
and Gas Show in Weyburn had about 4000 name tag
lanyards for exhibitors and guests of the show.
Th ey ran out.
With beautiful weather and sold out exhibition
space, the show, also known as the Weyburn Oil
Show, was a hit.
Tuesday, June 2 was setup day and featured a
golf tournament for exhibitors. Th at was followed by
a sold-out steak or lobster supper with about 1,300
people attending.
Th e gates opened on Wednesday, June 3. Pre-
mier Brad Wall was on hand for inductions into the
Saskatchewan Oil Industry Hall of Fame and and
the awarding of Oilman of the Year to Greg Smith,
COO of Petrobank.
Th ese awards are selected by a somewhat infor-
mal selection committee who meet in Calgary one to
two months ahead of the show. “We already have a
fair list of people developed for two years down the
road,” notes Al Schreiner, co-chair of the selection
committee and master of ceremonies. To qualify, a
person must have a Saskatchewan birth rite and have
made a signifi cant contribution to the oil and gas in-
dustry somewhere in the world.
Later on the Wednesday, Energy and Resources
Minister cut the chain, offi cially opening the event.
Two more stalwarts of the industry, Dale Fox and
John Kmita, were honoured as the Southeast Oilmen
of the Year.
Radio talkshow host John Gormley spoke at the
luncheon on Th ursday, June 4. His address focused on
the improvement of the Saskatchewan attitude, being
on the right track economically, and strong prospects
for the province.
Interior displays ranged from large engines at the
Cummins booth to several laboratories who special-
ize in analysis at the molecular level. Page B2
The 2009 Saskatchewan Oil and Gas Show committee. In the back row from left to right are Trevor Pandachuk, Doug Dammann, Darryl Ward, Jim Kopec, Jim Hutt and Cal LaCoste. In the second row are Ron Jeffrey, Laurence Woodard, Yvette Delanoy, Johnny Johnston and Don Sealy. In the third row are Don Struthers, Dennis Krainyk, Darcy Cretin, Morley Forsgren, Stan Runne, secretary Sandy Alexander, Darren Woodard and Mark Schneider. In the front row from left are Del Mondor, Larry Heggs, Mayor Debra Button, chairman Ron Carson, Energy Minister Bill Boyd, Ray Frehlick and Jim York.
Oil Show tops 4,000 attendees
PIPELINE NEWS July 2009B2
Page B1
Outside, the largest display was the brand new
Rig 6 for Eagle Drilling Services, which picked up
one of the four awards for displays. Th ere were plenty
of barbecues to keep you fed.
SaskPower cooked several wieners, not on a bar-
becue like everyone else, but with their high voltage
display. It showed what happened if you hit or even
get too close to a power line.
“It’s a great opportunity for the industry to get
together with key suppliers,” Energy and Resources
Deputy Minister Kent Campbell told Pipeline News. “It’s an indication the industry is
looking favourably on Saskatche-
wan. Especially in the southeast,
people are optimistic. Th at’s
good news for us. With oil
prices in the mid-60’s, the
southeast oilfi eld is be-
coming very economic.”
It’s a vast improve-
ment over two years
ago,” says Annette
Woodroff e of ALS
Laboratory Group,
who noted the weath-
er did not co-operate
in 2007. “It’s such a
well-managed show.”
“We got a couple
leads here. It’s defi -
nitely new expo-
sure for us in
southeast Sas-
katchewan,” said
Derek Gardner
of Hawkeye
Industries Inc.,
one of the ex-
hibitors.
aid
n
ke
I
Sask. Oil and Gas Show a great success
Mclaren Keslering, left and his brother Marek, enjoy the treats at the Weyburn Oil Show.
South Sask Rathole had one of their rigs on display.
The outdoor displays were full of shiny gear, big iron and good cooking. NATCO Canada’s booth matched the red carpet.
PIPELINE NEWS July 2009 B3
Prairie Mud Service“Serving Western Canada With 24 Hour Drilling Mud Service”
Environmental Division - Darwin Frehlick - Cell: 421-0491
JIM MERKLEY
Cell: 483-7633
WAYNE HEINEstevan, Sask.Cell: 421-9555
IAN SCOTTOxbow, Sask.Cell: 421-6662
JAMIE HANNA
Cell: 421-2435
GERALD SMITH
Cell: 421-2408
Calgary Sales Of ce: Tel: 403-237-7323 Fax: 403-263-7355
Chuck Haines, Technical SalesCell: 403-860-4660
Head Of ce:Estevan, Sask.
Tel: 634-3411 Fax: 634-6694Ray Frehlick, Manager
Cell: 421-1880Ken Harder
Warehouse ManagerCell: 421-0101
JASON LINGCarlyle, Sask.Cell: 421-2683
CHADSTEWART
Cell: 421-5198
Swift Current Warehouse:Derek Klassen - Cell: 306-741-2447
Lacombe Warehouse:Darcy Day Day - Cell: 403-597-6694
Mud Technicians
Harold Ross acts as controller for both Millennium Directional Service and Eagle Drilling Services, when he’s not teeing off on the links.
Terry Chapelsky of MNP Weyburn lines up a shot in the exhibitors golf tournament.
Barry Bachorcik, a eld operator with Apache Canada at Midale, res off a putt. He was playing in the exhibitor golf tournament as part of the Sas-katchewan Oil and Gas Show in Weyburn. All Photos by Brian Zinchuk
Saskatchewan Oil and Gas Show Saskatchewan Oil and Gas Show Golf SnapshotsGolf Snapshots
Trent Jordens of Southeast Regional College takes a swing at the hole in one competition, of which the college and Energy Training Institute spon-sored.
PIPELINE NEWS July 2009B4
Granting wishes with your help.
1-800-267-WISHwww.childrenswish.ca
There were two methods of steak pit cooking used during the Saskatch-ewan Oil and Gas Show – the Weyburn way and the Estevan way. Here we see the Weyburn method, used during the steak or lobster night after the exhibits were set up, but before the show began. Volunteers in support of the Weyburn Red Wings were doing the cooking. Steaks are sandwiched between two racks of expanded steel, and the racks are then wired to-gether.
The rack is then carried over to the coal steak pits, where the steel acts as a grill that stays with the steak. Instead of ipping indi-vidual steaks, a whole rack of steaks is ipped at once.
Mmmmm... sizzle, sizzle. After a few minutes and a ip or two, the steaks are done.
• All Equipment is Modern & G.P.S. Equip.• All Equipment is Modern & G.P.S. Equip.• Fresh Water Available• Fresh Water Available“Where Experience and Dependability Are Just a Phone Call Away”
High Steaks at the Oil Show...
PIPELINE NEWS July 2009 B5
• Welding
• Fabricating
• Machining
• Hydraulics
• Painting
• Sandblasting
Custom Metal Fabricating:Custom Metal Fabricating: Manufacturing, Sales & RepairManufacturing, Sales & Repair
501 6th Street & Highway 39 East Estevan, SKPhone: 634-8388 Fax: 634-8389
• Full Service Trucking Company• Top Quality Rig Moving Experience
Located off Hwy 39 West, Lamoro St., Estevan, SK.
Phone: 634-7276
Innovation and ideas for the future... Call us and we will bring our expertise to you!
• Fully Certifi ed State of the Art
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Utilizing Accelerated
Hydration Process
Redvers – He wears
a belt buckle the size of
a Buick hubcap – which
makes sense, since that’s
what real cowboys wear.
Th e proof is in the cast
on his arm, which was
attained while team rop-
ing a few weeks ago.
Marius Ericksen
is the fi eld foreman for
TriStar Oil and Gas in
Redvers, and has been
since the company began.
His responsibilities in-
clude 12 batteries, three
single-well batteries, and
180 wells. Th at includes
a number of properties
acquired in the recent
purchase of Talisman
purchase. Th e acquisi-
tion meant a shifting of
some responsibilities, but
looking after a similar
amount of properties.
Ericksen does this
work through his own
fi rm, P & M Oilfi eld
Consulting. It includes
having four operators
and one admin person
directly working for
him, and the rest work-
ing working for TriStar.
Others are contractors.
“Main offi ce is in
Estevan now. It used to
be here, but now it ex-
panded,” Ericksen ex-
plains about TriStar.
“We originally
started in a small offi ce
in Redvers.” In the fall
of 2007, the offi ce was
moved to Estevan.
Ericksen spent 17
years as a mainline pipe-
line welder, before fi nd-
ing a job with Placid
Oil of Houston. “I was
at home. I could stay at
home,” he says.
In 1999, he went on
his own and started P &
M Oilfi eld Consulting,
working for some inde-
pendent oilfi eld compa-
nies. In December, 2005,
TriStar fi red up.
Asked about the
secret behind TriStar,
Ericksen says, “It’s the
people you put in place.
Th e knowledge and ex-
perience and the direc-
tion from Calgary.”
Th e takeover of Tal-
isman assets was a major
one, he notes, but one of
several. “You just go with
the fl ow and pick the
pace up. You have to.”
Ericksen was born
and raised in Redvers. It
was his home base even
while pipelining. He’s
an ardent supporter of
the community, playing
a role on the Redvers &
District Oil Showcase.
At 58 years old, he
rides regularly. In addi-
tion to that broken wrist,
he earned 5 stitches
above his eye. “Looked
like I had been in a fi ght,”
he says with a smile.
“I have fi ve rope
horses, and my daughter
has 20. She bought the
quarter next to me.”
Ericksen’s home is
fi ve miles west of Red-
vers, where he has an in-
door/outdoor arena. “We
rope twice a week there.
Four-H’ers use it,” he
says. Erickson donates
the use of the riding are-
na to the local 4-H club,
and he teaches younger
people how to rope.
Th e western theme
carries through with the
building in which he’s
based. It was once home
to Williston Wildcat-
ters, in Arcola. Ericksen
had it moved down the
road to Redvers, where it
is now offi ces for several
companies.
Fittingly, the build-
ing is called, “Country
Corral.”
Marius Ericksen is the real deal, with scars to match, team roping when he’s not wrangling wells for TriStar. He owns the building behind him, which houses of ces for several companies.
This cowboy is roping in Bakken oil
PIPELINE NEWS July 2009 B9
www.carsonenergyservices.comCovering
Western Canada,with locations in
Lloydminster Wainwright Calgary Swift Current Regina Carlyle Halbrite Alida
Lampman
(306) 487-2281
Evolving to serve you even better!The past 35 years has seen a great deal of
change in Western Canada’s Energy Services industry, in the form of new technology, improvements in materials, an increased focus on safety, and
encompasses.Throughout it all, Carson Welding &
Maintenance has sustained a commitment and a leadership role which has made the company an industry leader.
services the company is able to offer its valued clients, Carson Welding recently underwent a change of name.
Carson Energy Services Ltd. is a new identity, but our clients new and old can be assured that it
they’ve come to rely on.
738 5th Street (back door) Phone: 634-3522
24 Hour Service - 7 Days A Week!
• Two Way Radios• Alarm Monitoring
• Safety Checks
"We Dispatch for the Oil Patch" Innovation in multi-stage fracturing
Estevan Of ceBox 171, Estevan, SK S4A 2A3
P: 306-634-9056 • F: 306-634-9058
Story and photos by Brian ZinchukEstevan – It was some tough slogging at fi rst, and
eventually a decision needed to be made – go big or
go home. Nathan and Barb Dunford decided to go
big.
Now their lease weed spraying company is a
dominant player in the fi eld, with Nathan explain-
ing, “We spray over 6,000 every summer for over two
dozen major companies.”
Th at’s over half the market, he asserts. Each lease
is typically visited twice a year, starting in June and
going into September.
Why spray?
Leases are to be kept clean of noxious weeds, ac-
cording to provincial legislation.
“Our job is to pave the way to make sure the
mowers can get in and out with no problems,” says
Nathan. He adds that controlling weeds reduces fi re
hazard and improves cosmetics.
Th e company uses a special blend of non-selective
chemicals. When done, any weeds end up brown.
Th e company now operates four trucks, but start-
ed with much more humble beginnings in 2002. “I
had weed sprayed for my dad’s company for years,” he
says, adding he also did plenty of mowing.
Th at mowing experience has become an impor-
tant factor, because Dunford sees things from the
eyes of a guy who has to mow the lease. He looks for
places where a mower can’t easily reach, if at all.
Th e fi rst sprayer had a two-inch pump and gar-
den hose, a home built unit. Since then, they’ve been
progressively upgrading.
Th e phone kept ringing, he says.
“Th ey all want to hire local contractors as much
as possible, Nathan explains. But when you’re local,
you don’t always have the same, high level equip-
ment.
“We had to go big or shut it down.”
Th e early years were like many a small business,
with a second job, in this case, working the service
rigs, to help keep the lights on during the off -season.
Page B10
Taking pride in your lease: Pride Upkeep
Barb Dunford of Pride Upkeep shows the con g-uration of a custom-built chassis for weed spray-ing. The cabinets store waste, and the tanks, reels and pumps on the back handle the spraying. In the front is a storage area for a quad. What’s not seen is the on-board portapotty.
PIPELINE NEWS July 2009B10
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Page B9Locked in offi ce
If there is one constant is business, it’s paperwork.
Th e paperwork challenges can be daunting to work in the oilfi eld. Pride
Upkeep now holds a SECOR – Small Employer Certifi cate of Recognition. It
wasn’t easy, because it was either hire someone and spend $50,000 for the cer-
tifi cation, or do it themselves. “Because I’m a small company, I basically locked
myself in an offi ce for the winter,” Nathan says.
“It’s what it took to keep my doors open. A lot of companies won’t hire you
unless you have it.”
Barb was working in accounting for a company out of Lampman. Eventu-
ally, she decided to quit her job and join Nathan in the company full time. “I
couldn’t stand see him. He was just stressed out,” she recalls.
Nathan acknowledges that making sure quality assurance was there was
killing him. “As the business expanded, we needed to count on reliable people.”
No dead cylindersTh e problem is, the nature of the business is a new batch of employees
comes on each year. It meant doing some recruiting under the same roof.
Th e pair married in 2004 and have a blended family. Brittany, 22, now has a
diploma in petroleum engineering and works with PennWest. However, she ran
a truck for four years, and even this past June, when she had some time off her
regular job, she was out in the fi eld, helping.
Th eir second daughter, Amber, 18, started working this summer. Before, she
was helping run the household, or looking after her two brothers.
Th eir two twin boys, Jesse and Wyatt, 12, act as a pit crew. When the trucks
come in each day, they’re out there, eager to off er a hand. “We we drive in the
yard, they come out, asking, ‘What do you need?’” Barb says. It might mean
hooking up hoses, restocking the trucks with chemical, or cleaning them out.
Th e two say they’ve been doing it for about four years now.
“No slackers. We have no dead cylinders. It’s a team eff ort,” says Nathan.
Barb herself runs a truck on top of doing the books, after having quit her
previous job in 2006. “Th is is my fourth season running a truck,” she says. “I
was coming home from my job, helping him spray until 9 o’clock, then doing
books.”
She saw potential for the business, and wanted to be a part of it.
Each truck runs with two people, a foreman and swamper.
As for their other staff , Nathan says it’s an ideal job for university students,
with crazy hours, lots of money, and lots of overtime. Scott, for instance, is a
University of Regina engineering student.
But the job is highly demanding, he explains. “Th eir day off is the next
windy or rainy day.”
Th e job starts at 5 a.m. and runs until sundown. Yet his staff stay motivated,
according to Nathan.
“What’s your secret, Nathan?” he says others ask him.
“I pay them very well,” is the reply.
Th at includes safety and performance bonuses, plus lots of overtime.
Driving up to their yard, it’s hard to miss the white pumpjack in the centre
of a go-cart race track. More than just a fun distraction, the track had a real
purpose – keeping staff on board.
At a time when labour has been a real crunch, Pride Upkeep couldn’t aff ord
to lose anyone. Th e track became a make-work project, because there are only
so many times you can sweep the fl oor of the shop. It might be a week of rain or
wind during the summer, and they didn’t want staff to quit. “I need them. I need
them to the end of the season,” he says. Page B11
Its a family affair over at Pride Upkeep
PIPELINE NEWS July 2009 B11
Professionally supervised downhole drilling motors. Power swivels and drilling accessories plus a full complement of pipe handling, well control, and job specific equipment.
Performance drilling motors for coiled tubing, service and drilling rigs, air and fluid driven. Mobile accumulators, bits, mills and wash shoes, BOP’s, casing scrapers, drill collars, elevators, flanges, junk baskets, links, mobile pipe racks, slips and spiders, spools, substitutes and swages, swab equipment, sour sealed swab vessel c/w H2S scrubber, RS 100 snubbing unit, surface swivels, cleanout bailers, 7 1/16th flanged orbit valves, master valves from 2” to 5.5”, fluid meters, flow provers and chokes. Mobile consultants trailers, pipe trailers and delivery services.
It’s all hands on deck for the Dunford family, all of whom are part of Pride Upkeep. From left are Nathan, Barb, Wyatt, Jesse Dunford and Amber Pou-loit. Missing is Brittany Pouliot. The open tool box is the famed portapotty stall.
Keeping busy is not a problem for local business
Th e company usu-
ally works the same area
together, similar to cus-
tom combiners, or, as
Nathan puts it, “A band
of locusts.”
“In this business,
volume is the name of
the game. It dictates
how much you can
cover in a day,” Nathan
says. “We leave the
yard fully loaded, with
enough for the whole
day.”
“I did a record 88
leases in a day with my
swamper,” Barb says.
B12 PIPELINE NEWS July 2009
Quality Post Frame Buildings
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• GENERAL OILFIELD HAULING • TANK & TREATER MOVING • 24 HOUR PERSONALIZED SERVICE • PIPE CUSTODIAN • PUMP JACK HAULING
L & C Trucking
Does your oilfield waste go to a safe place?
There is a safer way to dispose of your waste.
For more information Phone (306) 728-3636 Or look us up at www.plainsenvironmental.com
Did you know that Plains Environmental is the first class 1A rated disposal facility in Saskatchewan and that our facil ity secures your waste from ground, water, as well as airborne contamination?
Did you know that our facility is the only one in Saskatchewan fully licensed to accept Upstream, Midstream, Downstream, NORM and Industrial waste?
Redvers – Th ey
weren’t planning on
building a shop in Red-
vers, but a community
promotion scheme end-
ed up giving the Mc-
Canells enough incen-
tive to go ahead and do
it.
In the 2008 Redvers
Oil Showcase, the top
level sponsors’ names
were thrown into a lot-
tery, with the winner
being given a serviced
lot, free, in Redvers. Th e
one caveat – the winner
had to act on it within a
year. Th e draw was made
in May of last year, with
the winning company
was Classic Vacuum
Truck Ltd.
“I guess I was lucky
to win the lot,” says
Randy McCannell, who
owns Classic Vacuum
with his wife Tammy.
Th ey’re based on the
east side of Alida, where
their picturesque yard
and prominent sign also
serves as home to their
trucking fl eet. Th e deck
provide a nice place to
go over the mammoth
scheduling book that is
with Randy wherever he
goes.
“We were running
out of parking area,
so we needed parking
space,” explains Tammy.
Th is is after they had re-
cently built a 60 x 80 ft.
shop at their Alida base.
“We were renting shops
in other towns.”
Th e result was an
80 x 152 ft. shop with
six bays, fi nished this
winter. TS & M Supply,
based in Estevan, had
expressed interest in set-
ting up a Redvers loca-
tion. “Th ey were looking
to set up shop. When
they found out I was go-
ing to build a shop, they
approached me and we
went from there.”
TS & M now leases
the front of the build-
ing, which bears the TS
& M logo.
Th e fi nal location
was not where the win-
ning lot was, however. A
few snafus meant they
ended up going with an-
other lot, and picked up
a few more. But the end
result was the same – the
promotion had success-
fully snagged not one,
but two businesses, for
Redvers.
New fi re truck“We do a lot of bat-
tery site turnarounds,
cleaning treaters, tanks
and spills,” Randy says,
adding they also land-
spread drilling mud.
Classic Vacuum
Truck operates six vac
trucks, three fresh water
trucks, two steamers, and
a fi re foam truck. Th e
steamers run under the
name Classic Steamers.
Th e fi re truck is based in
Weyburn.
It’s a new red fi re
truck. “We just got it in
February,” Randy says.
“Th ere’s not one around
like it.”
Th e truck has a
pumper unit, decon-
tamination showers, and
pulls a trailer with tank-
based air supply breath-
ing apparatus.
“We’ll go out to a
battery site. If they’re
going to clean tanks,
we’ll spray foam that
takes away all the H2S.”
Classic Vacuum
Truck company got its
start in 1998. Randy
had been driving truck
for Alida-based Th ree
Star Trucking when the
owner, Jim Boettcher,
approached him to buy a
vac truck. Th e company
has grown since then.
Th ey have two chil-
dren. One is invested in
the business, with his
own water truck as part
of the fl eet.
Have we got a lot for you ...
Tammy and Randy McCannell built a new shop in Redvers after winning a lot in a draw at last year’s Redvers & District Oil Showcase.
NEW - DRILLNEW - DRILLGENERATORSGENERATORS
24 hours a day • 8 kw - 350 kw
• Pumpjacks• Well Site Shacks• Service Rigs• Construction Sites• Drilling Rigs
Phone Toby: 577-1907Phone Toby: 577-1907
PIPELINE NEWS July 2009B18
“Tri-axles, “Tri-axles, Tandems & Tandems &
Belly Dumps Belly Dumps Available”Available”
How can we help you today?• Ready Mix Concrete• Concrete Pumping• Excavating• Trenching• Sewer & Water• Crushing & Screening• Road Graveling• Contaminent Hauling
Gary Walls, left, and Marc Wolensky are TS & M Supply’s presence in Redvers now. Marc’s not miss-ing a hand here, he’s just moving faster than the speed of light, lling those orders.
PIPELINE NEWS July 2009 B19
Toll Free: 1-888-638-6433 or 1-306-634-6400Plant: 1-306-388-2344 Fax: 1-306-634-7828
Also Manufacturers of:• Fibreglass Belt Guards • Internal Fibreglass of Steel Tanks
• Tank Skimmers • Insulated Wellhead Shelters
ESTEVAN PLASTIC PRODUCTS LTD.
400 Barrel - 12’ diameter x 20’ high500 Barrel - 12’ diameter x 25’ high
The microdot identi ers include a serial number and the web address of the manufacturer Certi ed Secure Identi cation Corp.
Photos submitted
PIPELINE NEWS July 2009B20
Ltd.
DRILLING • COMPLETIONS • PRODUCTIONS• Lab facility • Fresh water available
• Industrial Cleaning Products
92 Hwy. 39 E, Estevan • www.cbsterling.com
Blaine FallisGeneral Manager306-421-2623
306.634.6549
SWIFT CURRENTKevin Burton - Technical Service Rep • 421-3473
Steve McLellanChemist
Rick Breisnes421-5502
Dean CarriereTechnical Service Rep.306-421-1238
Jason Burback421-9418
When hiring Scott Land, YOU hire the Advantage...• Surface Acquisitions, Freehold Mineral Leasing, Administration Projects• No project is too small or too large• Most active Land Company in Saskatchewan & Manitoba, with a proven 25 year track record• Experienced Field Agents• Competitive Rates, Including an Emerging Company Plan (ECP) package to all Junior Start-up Companies
Scott Land & Lease Ltd.1460 - 2002 Victoria AvenueRegina, SK S4P 0R7Toll Free: 1-888-939-0000Fax# 306-359-9015www.scottland.ca
Kurtis Greenman, Mineral Manager 306-790-4350Chad Morris, Surface Manager 306-790-4363Laurie Bielka, Assistant Branch Manager 306-790-4360Crown Sale Inquiries 403-261-6580Main Line 306-359-9000
Three StarTRUCKING LTD.
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Ken Boettcher - 443-2474 ResEdgar Bendtsen - 443-2350 ResTim Boettcher - 443-2488 ResJim Boettcher - 443-2205 ResGrant Anderson (204) 686-2201 Res
FAX: 443-2433BOX 160, ALIDA, SASK. S0C 0B0
443-2424
deter theft in the oil patchdeter theft in the oil patch Page B19
Australian police report that the number of stolen microdot marked vehicles fell by as much as 86 per cent over vehicles that were not protected by microdots.
“Th at success prompted the use of microdot technology to expand into other countries,” said McLeod. “It’s only been the last few months that signifi -cant awareness has been made here.”
CSI is a Canadian owned manufac-turer launched in 2007 to address the growing need to solve the worldwide problem of vehicle theft and identifi ca-tion and asset management.
“What we’ve found over the last two years is that are basically two types of thieves. Th ere is your internal thief and the professional thief.
“Th e introduction of the micro-dot marking almost immediately re-duces the internal theft. Th e internal thief only steals because he thinks the company doesn’t care or that nobody is watching.
“He is deterred because he is im-mediately made aware that the com-pany does care and is looking to address the theft.
McLeod says the career thief preys on the oilfi eld because of the remote-ness of many assets and the ability of the thief to sell those assets easily.
He thinks there is a general con-sensus that oil companies have lots of money and nobody cares and they not going to miss stolen property.
“It was almost like it was the cost of doing business,” he said
“Th is is where we believe an oilfi eld initiative needs to come in. We would like to see the entire industry get to-gether and utilize an eff ective and cost-effi cient technology like microdots to protect all the assets.
“It won’t take long for the profes-sional thief to become aware that the oil patch has become too diffi cult and risky to practice his craft. Th ey will sim-ply move on to easier and more unpro-tected targets.”
McLeod took his product to the Weyburn Oil and Gas show in June and found there was a lot of interest in CSI’s technology from large companies to small rental fi rms and construction contractors concerned about securing tools and equipment.
“One thing I did fi nd was they were
surprised how cost-eff ective the tech-nology is,” said McLeod. “Depending on many times you want to mark an as-set you could get it down to as little as $2 to $3 per asset to mark.”
A corporate kit with up 1,000 mi-crodots with a set of protected entry de-cals and window warning labels retails for $59.95 and can be order online.
“Along with being very cost ef-fective, it is very simple to use,” said McLeod. “You could go through a shop
and mark all the assets in a day with very little money.
“Some companies have utilized other identifi cation systems like en-graving but it’s a much more intensive program than painting dots in dozens
of places on every asset. Our system is as simple as painting by numbers.”
A vial of microdots comes with a do-it-yourself applicator.
CSI manufactures vials of micro-dots for residential, automotive, schools and RV, power sports and agricultural and industrial markets.
Th e company also manufactures information protection systems with computer tracking technology that can be applied to the oil and gas industry where information sensitivity is becom-ing more important every day.”
CSI’s Laptop Cop tracking tech-nology enables the owner of lost or stolen laptop to retrieve or delete fi les remotely.
Liard McLeod applies the tiny microdot identi cation marker to the rims of a truck. Photos submitted
PIPELINE NEWS July 2009 B21
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PIPELINE NEWS July 2009B22
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Clockwise from top left: Ryan Drilling Technology and Solutions brought in the 620 CKRM Rider Cheerleaders to their sponsored hole at the 52nd Annual Estevan OTS Golf Tournament. The cheerleaders are Lindsey P., Stephanie D. and Sarah O. Jeff Mosley, left, presents Nolan Rohatyn of Carson Energy Services with the Estevan OTS golf trophy, coming in tops in 36 holes. Graham Bell, of Estevan, powering out. Todd Shirley of Bert Baxter Transport Ltd. connects while seeking out a hole in one during the Estevan OTS Golf Tournament.
PIPELINE NEWS July 2009C2
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Estevan – Th e Es-tevan Oilfi eld Technical Society 52nd Annual Golf Tournament took place at Estevan Woodlawn Golf Club June 5-7.
Approximately 375 golfers took part, mostly from southeast Sas-katchewan.
Th ree events took place – 18 holes, 36 holes, and a masters competi-tion. Eldon Rondeau, one of the organizers, noted that 18 holes is growing in popularity. “Who can get away for three days?” he asks.
Th e tournament highlight was the steak or lobster supper, held at the curling rink. Won-derland, a Regina cover band specializing in one-hit-wonders, was the en-tertainment.
18 holesTh ere were 17 fl ights
playing 18 holes. In the 18 hole event
championship fl ight, Warren Waldegger came in fi rst, with a 74. He was followed by Mike Verity, 75, Jason Fenick, 75, and
Dan Isley, 77.Th e fi rst fl ight
went to Kurtis Kish, 83, Doug Moberg, 83, Greg Latimer, 83 and Brent Gusikoski, 84.
In the second fl ight,
Craig Lane, Bob Speers, Leonard Brock and Kev-in Lounitsen all had 86, with tie-breakers decid-ing the outcome.
Th e third fl ight must have been a tough one
to fi gure out, because everyone except one scored 88, meaning the tie-breaking had to go back several holes. Devin Carrington at came out on top, followed by Paul Ross, Garrett Fleck and Rob Weatherall.
36 holesEleven fl ights took
two rounds around the course. Th e fi rst round is for placement, the sec-ond round counts as to who wins.
Nolan Rohatyn came out tops in the 36-hole
event. He scored a 72. Mike Ross came in next at 74, then Pat Messer
at 76 and Blaine Chrest, 76.
Th e fi rst fl ight went to Brett Blackstock, 73. Next was Mark Spencer, 76, Chad Farr, 77, and Jim Ehrmantraut, 78.
Coming in fi rst in the second fl ight was Ron Dunville, 82. Bren-don Grube was next, also at 82, followed by Cody Balon, 84 and Bill Halk-yard
Th e third fl ight saw Kristian Kallis, 81, Jon Decker, 83, Clark Driedger, 86, and Chad Leslie, 86.
“I eagled No. 3 today, and triple-bogeyed No. 6,” said Rohatyn. Th ere were a bunch of pars, an odd bogey, an odd birdie for Rohatyn.
After a bogey on 17, he says he ahd a good drive, a six-iron to 10-ft., two putts and a birdie.
You had your choice of smokies at the Ryan Drilling Technology and Solutions sponsored hole dur-ing the Estevan OTS Golf Tournament. Randy Mitchell, doing the cooking is a technical sales engin-eer with Ryan.
Bill Stanley of Sher-wood, North Dakota, won the masters com-petition at the Estevan OTS golf tournament. He had a 75.
PIPELINE NEWS July 2009 C3
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Weyburn, Estevan – Th ere’s nothing like good food to get people to-gether, and there’s a crew in the southeast that has been providing stick-to-your-ribs grub for nearly four decades.
You could fi nd them in both Weyburn and Es-tevan in the same week, cooking up steak and lobster at the Saskatch-ewan Oil and Gas Show in Weyburn, followed by a similar meal for the Es-tevan Oilfi eld Technical Society’s 52 Annual Golf Tournament.
Mike LaCoste is the strawboss of the crew of volunteers. “We usu-ally do eight to ten func-tions,” he says between the lobster prep area and the steak pit during the Weyburn Oil Show.
Th e most of the core of the group work with Prairie Petro-Chem or Prairie Mud in Estevan.
Ray Frehlick, head of the two fi rms, says the whole idea started up 38 years ago, when the late George Blades with Sun-cor Resources “gathered a bunch of oilfi eld guys up.”
“My feeling’s always
been, if the community’s good to you, you should be good to the communi-ty, or communities,” Fre-hlick told Pipeline News. For the Estevan OTS golf tournament, he says, “We cooked there for 35 years, and we still do.”
Speaking of the im-portance of community service, Frehlick says it is important to give back, raising money for cancer and the like.
“It’s all volunteer,” he says.
Th e workers donate their time and eff orts, and the proceeds go to the or-ganization that brought them in.
Chuck Haines is one of the current crew, fol-lowing in the footsteps of his dad, Bob Haines. “Th ey’ve done it enough, so they’re passing the torch to the younger guys,” he says. “Th ey all started in the early sixties. Before them, there was another crew.”
Th e current core group is made of up Brent Frehlick, Prai-rie Petro Chem; Wayne Hein, Prairie Mud; Dean Gilliss, Gilliss Power Tongs; Darrin Leptich, Prairie Petro Chem; Chuck Haines, Prairie
Mud; Dale Whitfi eld, BJ Services; Perry Wenham, Do-All Fabricators; Kirk Haines, Trican; Mike LaCoste, Prairie Petro Chem, Barry Bridges and Jack Meesham. Others come in and help, espe-cially for bigger events. Some longtimers come back to help when need-ed.
“My dad came and helped us with the beans,” says Chuck Haines.
“It’s a secret recipe, like Col. Sanders,” says LaCoste.
“We get called a lot of things, I don’t think you can print it,” LaCoste says with a laugh. “Th ey call us ‘Ray Frehlick’s Cooking Crew.”
LaCoste has been on the crew for 13 years, Chuck Haines for about 10.
LaCoste says they’ve never been forced to do it, but have been encouraged by Ray. “You get to see a lot of customers there, and they see us doing it,” he says, noting it’s good P.R. “We’re local, inde-pendent companies.”
Page C4
Prairie Lobstermen
It’s all smiles when a lobster is put on your plate, as seen here at the Sas-katchewan Oil and Gas Show in Weyburn.
PIPELINE NEWS July 2009C4
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Page C3 “Th is is where you
see all the customers,” says Gilliss.
Th e crew took care of the Spectra Credit Union event and then Oxbow in the weeks after the oil show and Estevan OTS golf tournament. “We also do a cancer one in Lampman in Septem-ber,” LaCoste says.
Division of labourWhile the men typi-
cally do the cooking, there are a number of women who help out in the serv-ing. Elaine Shykitka and Yvonne Sheane can be found getting the serv-ing tables just so. “We’re originals, aren’t we?” says Sheane to Shykitka.
“It keeps getting big-ger and bigger,” Shykitka replies.
“Th e guys do the cooking, and the ladies do the serving. We’re al-ways looking for help,” Sheane adds.
“My husband used to work at Prairie Petro Chem. He’s retired,” she says, noting he was a reg-ular on the cooking crew.
On the female side, it is also multi-genera-tional, with one of the ladies pointing out her daughter helping.
Big meal, industrial cooking
When you’re feeding hundreds of hungry peo-ple in a short period of time, you have to scale up.
You don’t fi nd a couple little barbecues in the back. Rather, they have a special steak pit and a pair of lobster boilers.
Th e process of the steak pit is that of an
assembly line. Th e pit is fuelled by Kingsford charcoal, originating from the Bienfait mine. Th e steaks progress from left to right. First they are seared on fl at grills. As soon as the searing grill lets go of the steak, they are fl ipped to the right. Th e second stage sees basting with a paint brush. A few more fl ips, and they reach the end of the line. It takes about fi ve to six minutes for a god medium steak. A trailer barbecue can be used to fi nish them off if needed.
For roast beef, they have a portable roaster. It’s a big steel box, which draws air in through trays of coals on the ends and up through the middle, where the chimney is. Cooked at 350 degrees Fahrenheit for fi ve hours, they are fl ipped once an hour. Page C5
One fancy dinner
Dale Whit eld holds up a monster lobster to be auctioned off.
PIPELINE NEWS July 2009 C5
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Page C4“We baste them with
a new mop. It keeps your hand out of the fi re, too,” says LaCoste.
Th e steaks, in the case 12 oz. New York strips, were purchased through a local restaurant, whom they’ve been working with for two years.
Lobster made largeTh e lobster boil-
ers are a sight to see in and of themselves. “We saw them in Brooks,” LaCoste says. First they used to have the boil-ers shipped down, but eventually built two for themselves. One belongs to Spectra Credit Union. “Our welder, Eugene Hagel, built them,” he says.
Th e boilers are steel boxes with a tube run-ning down the middle of the bottom. At one end of the tube is a tiger torch, shooting fl ames into the tube. At the other end of the tube is a chimney. Along the tube are baffl es to defl ect the heat, similar to a hot wa-ter tank.
Each boiler can take two baskets that are each built to fi ll half the boil-er. Each basket can take two cases of lobster, 48 in total. Th at means a full boiler will have 96 crus-
taceans turning bright red at one time. It takes 15 minutes in the boiler before they are done.
Before they get to the boiler, however, the lobsters are fl own in by courier to Regina. At the Sask. Oil and Gas Show, it fi lled the better part of a small trailer. Th ey usu-ally come from one main supplier in St. John, New Brunswick. Usually in each batch there is one big one, which can be used for promo purposes.
Coming out of the trailer, the crew tackles the lobsters with a me-thodical vengeance. Don’t get too close, as they use banana knives to cut off the rubber bands on each lobster’s claws. Heavy gloves are worn, for good reason. Bands removed, it’s into the baskets and then the boiler.
At the other end of the boiler, workers split the lobsters. Th e crew re-cently picked up several hundred lobster crack-ers, paid for by a number of local companies. Th ey had used pliers before, but purpose-built crack-ers are much more use-ful.
Artery cloggersTh e usual menu is
steak and/or lobster, ei-ther a 12 oz New York
steak or a one to one-and-a-half pound lobster. Th e beans are a secret recipe. Th ere’s baked potatoes, cole slaw, and buns. “If we’re not doing lobster, we’ll do corn,” LaCoste says.
“We’ll go to local stores and run up a tab, take back what we don’t need, and the group will settle up,” he says.
Th ere’s a lot of clean-up involved with the boil-ers and lobster crackers.
If there are any lobster left over, they are sold at the end of the event.
“It’s just a bunch of
volunteers. It’s fun to see people out of work. We get along, joke. It’s good to socialize away from
work,” LaCoste says.“It’s a lot of volunteer
time, but we have fun do-ing it,” says Whitfi eld.
A nice break from work
Chuck Haines, turns steaks over the coals.
PIPELINE NEWS July 2009C6
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Weyburn – Th e Tierra Alta Pro-duction Systems team may have been wearing football jerseys at the Wey-burn Oil Show, but it was the post play into the southwest that earns the headline.
Th e company has transferred a Truck-Mounted X-cclerator (TMX) truck for servicing coiled rod to Swift Current from Lloydminster. It gives the company a presence in the south-west. “We’re working closely with Dia-mond Energy, a service rig company,” says Jeff Taylor, fi eld services manager.
He notes there are probably 600 wells in the southwest that have con-tinuous rod, and thus there is a real
need for service there.Randyl Syverson will be the Swift
Current rep, coming from Bonnyville.Th e company is looking to service
southeast Saskatchewan as well.New plant
“We’re going to build a manufac-turing facility in Edmonton,” notes Rick Joyes, who handles sales and marketing. It will bring manufacturing of progressing cavity pumps all under one roof, including chroming their own rotors.
Th e plan is to have it in operation in 2009. Th e facility will be a mirror of the company’s Venezeulan production facility.
Tierra Alta moves into southwest
Getting ready for their post play into the southwest, Tierra Alta’s team of Rick Joyes, Richard Hogman, Jeff Taylor and Gilberto Garcia spring into action. Ryan Rowan is the quarterback for this motley crew at the Weyburn Oil Show.
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“Th is RFP is an-other major milestone as we continue to develop our business case for the demonstration project,” said Mike Monea, vice-president, Integrated Carbon Capture and Se-questration. “It is also an important development within the emerging clean coal industry, as this is expected to be the fi rst steam turbine in the world designed from the outset to fully integrate a coal-fi red power plant with carbon capture.”
Seven vendors from around the world have been invited to partici-pate in the two-stage procurement process. Th e fi rst stage will be used to identify the most promising proposals, with more detailed pro-posals developed during the second stage. Th e
successful vendor is ex-pected to be selected by the end of 2009.
SaskPower previous-ly issued a RFP in July 2008 for carbon capture technology for the dem-onstration project. Th ree companies have been shortlisted, with the fi nal selection also due by the end of the year.
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will transform the ag-ing Unit 3 at Boundary Dam Power Station near Estevan into a reliable, long-term producer of clean baseload electricity, while enhancing provin-cial oil production and reducing greenhouse gas emissions.
SaskPower notes the project is also good for the Saskatchewan economy – it will result in capital investment, in-creased royalty revenues
SaskPower is looking for a new one of these – a steam turbine and gen-erator for its clean coal project at Boundary Dam. This turbine is at Shand Power Station.
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By Brian ZinchukWeyburn – John
Kmita and Dale Fox were both honoured as Southeast Saskatch-ewan Oilmen of the Year during the Sas-katchewan Oil and Gas Show in Weyburn on June 3.
Minister of Ener-gy and Resources Bill Boyd was on hand to make the presenta-tions.
John KmitaKmita started his
own service rig com-pany, John Kmita Ltd., in 1972. It ’s still in operation as a family business at Weyburn.
“Be nice to your
roughneck. He might become your boss one day,” Kmita told the crowd in accepting the award.
After thanking his wife, Sandra, he noted, “All these ups and downs in the oil prices are my fault.”
Each time he bought a rig, prices plummeted. “I built a new shop last year, and oil plummeted $100 a barrel.”
Dale Fox Started to work in
the oil patch in 1959, and ended up as a part-ner in TS & M Sup-ply. He retired in 1999 when the business was
sold.“If he didn’t have a
part in stock, he would work day and night
until he found it,” Ray Frehlick told the crowd about Fox.
Fox noted oilfield
supply stores are im-portant to the industry.
He had planned on going to university after a year of work, but never did get there. While at work one day as a young man he observed others play-ing cards. He felt they should be looking for business, not playing cards.
“Back then [in 1959], they told me the oilpatch would be done in 20 years.” Page C9
Kmita, Fox SE Oilmen of Year
Minister of Energy and Resources Bill Boyd, left, and Ray Frehlick, right, present Dale Fox with his plaque for Southeast Oilman of the Year.
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Page C8TS & M – Technical Sales and Maintenance, opened stores all over, and
diversifi ed into other industries. “Th e good thing about being a small independ-ent – decisions could be made locally, and quickly,” he said.
“Our philosophy was, if you look after your employees and customers, they will look after you.”
John Kmita, centre, is presented with his plaque for Southeast Oilman of the Year. On the left is Minister of Energy and Resources Bill Boyd.
Locals receiveOilmen of the Year honours
PIPELINE NEWS July 2009C10
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By Brian Zinchuk
Weyburn – If you looked closely at the deep blue trucks in
the middle of the Sas-katchewan Oil and Gas show’s outdoor displays, you might have noticed something a little dif-ferent.
Instead of the fa-miliar “Carson Weld-ing & Maintenance” stickers on their doors, the trucks now dis-played “Carson Energy Services Ltd.”
Carson Energy Services is one of the largest players in the oilfi eld service sec-tor for southeast Sas-katchewan, with head-quarters in Lampman and another 10 offi ces in Saskatchewan and Alberta. Th e company
works throughout the prairies. It was incorpo-rated in 1974
“We’ve been want-ing to do it for a while,” Ron Carson, head of the company, told Pipe-line News between his duties as chair of the oil show.
Th e new name is more appropriate, he said. “We do so much more now.”
“Now we have lots of diff erent tasks – pipeline, lease building, environmental sales and service, safety.”
Th e name change was eff ective Mar. 1, 2009.
Internally, a lot of things have to change – paperwork, manuals, etc. “Maybe more than we thought,” he said.
On the web: Check out Pipeline News’ pro-f ile on Ron Carson in the March, 2009, edition, B section. To f ind it, go to our website at www.pipelinenews.ca, go to the past editions section, and download March, 2009 B section.
New stickers show off a new name for Carson, now known as Carson En-ergy Services.
Ron Carson of Carson Energy Services says the company’s name change re ects their broader range of services. Carson acted as chair for the Saskatchewan Oil and Gas Show in Weyburn, as seen here.
New name New name for Carsonfor Carson
PIPELINE NEWS July 2009 C11
MMESSENGER 1100
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Edmonton - Th ere’s a lot of talk about isotopes in the news these days, particularly in the short-age of nuclear isotopes for medical diagnostic testing. Did you know that isotope testing is also used in the oilfi eld?
In this case it is naturally occurring iso-topes. Analyzing natu-rally occurring isotopes from production water can tell you a lot, enough for them to refer to it as isotope fi ngerprinting. Th at’s what Isobrine So-lutions of Edmonton is doing.
Th ey were one of the display participants in the Williston Basin Pe-troleum Conference in Regina in April.
“We do a lot of work in the plays throughout Saskatchewan and the Williston Basin,” says Greg Rose of Isobrine, noting they have isotope data from many forma-tions throughout the Ba-sin.
People had asked for help in identifying where formation water was coming from. Rose teamed up with Ben Rostron, Ph.D., an as-sociate professor at the University of Alberta, who had been develop-ing on isotope database since 1996 to form Iso-brine Solutions in 2003. Th e duo later approached Serguey Arkadakskiy, Ph.D., to bring his ex-pertise in fi ngerprinting natural gases.
Specifi cally, Isobrine uses naturally occurring isotopes of oxygen and hydrogen and other iso-topes to trace the under-ground path of forma-tion waters. “We also measure alkalinity, metals in water and halogens. It depends on the clients,” Rose explains.
How is this used?Is there an over-
frac’d well breaking into zones above or below a target formation, for in-stance? In the Bakken
formation, “overfractur-ing can lead to large pro-duction of out-of-zone water, but how do you know where your water is coming from?” Rose says.
“By using isotopes, we can provide clear evi-dence of the presence of out of zone water, and identify which zone the water is from,” Rose says. “We don’t solve the prob-lem for them, but we tell them where it’s coming from. Companies have used the information to adjust how heavy the frac jobs are.”
Th e samples are collected as Drill Stem Tests (DST) or normal production tests “and used to validate DST’s or deal with production al-location,” Rose explains. “We also use it for base-line studies.”
It that case, they will look at a number of wells in an area to determine what the water looks like regionally.
“Client’s submit one litre samples to us. We split the sample, do our tests, and report our fi ndings.”
Samples are typi-cally shipped by courier
to Isobrine. A fast turn-around can be done in 24 to 48 hours, normal ser-vice is three to fi ve busi-ness days.
“ D i f f e r e n t i a t i n g production waters using chemistry may not pro-vide clear answers, using isotopes and our data-base provides much more clarity," he says.
Just where did that water come from?
Greg Rose, left, and Serguey Arkadakskiy are two-thirds of isotope ngerprinting company Iso-brine. Missing is Ben Rostron. Photo submitted
C12 PIPELINE NEWS July 2009
BADGERDAYLIGHTING™
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Weyburn – Brandon, Manitoba, machine shop and manufacturer Atom-Jet Industries is seek-ing to make the oilpatch a much bigger part of its business.
“For this industry, we’re a manufacturer of fi n-ished parts,” says Barry LaRocque, co-owner, at his booth during the Saskatchewan Oil and Gas Show in Weyburn. “We do custom carbide applications, with support systems like Parkerizing.”
Some examples he provides include packer parts and drill stem adapters.
Stefan Venzky, who handles business develop-ment, adds, “We’re heavy into valve sub-assem-blies.”
Th at includes diff erent valve parts, fl anges, and lots of stainless steel work.
“We started in the oilpatch two and half, three years ago,” says LaRocque. Th e company started as a small machine shop, doing local repairs. “We now have our own products in agriculture around the
world.” LaRoque says. Th ey have full time staff in Saskatoon, Regina,
Winnipeg, North Dakota and Russia.Currently, about fi ve to 10 per cent of their
business is oilpatch, but they are aiming to make that sliver a much larger slice of the pie. Th is is At-om-Jet’s second appearance at the Saskatchewan Oil and Gas Show, and they’ve been to Calgary and Lloydminster.
“We want to get that number to 30 per cent,” says LaRocque, citing a desire to diversify. Th ey would like to see a more even split between agri-culture, oil and gas, mining, and manufacturing.
“Everyone knows oil and gas is up and down. When it is up, we want to be a part of it. When it is down, we have other segments we go after,” he says.
Th ey are taking a tact that is not often seen – promising to deduct penalties off their invoice if an order is late. Th ose penalties accrue daily. “It’s about us being on time,” says Venzky. “We put our money where our mouth is.”
This assortment of stainless steel products is just a sampling of what Atom-Jet Industries is capable of. The Brandon company is seeking to diversify into the oilpatch. In the background is Barry LaRocque, co-owner.
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Perhaps some day Estevan?Weyburn – One of
the companies with an indoor display at the Saskatchewan Oil and Gas Show in Weyburn is thinking about in-doors in another con-text – specifically, a lo-cation in Estevan.
AGAT Laborato-ries is considering an Estevan location, ac-cording to company representatives at the oil show.
“We’re thinking of building one in Este-van,” says Jason Nico-lay. “It ’s really serious. It ’s been talked about for a couple years.”
The company’s work includes oil and gas testing, but they also do soil, air and water testing. It can be sampling at gas plant compressors, oil sam-pling for engines, or benzene emissions on site. They have loca-tions across Canada, including 10 depots in Saskatchewan. Howev-er, they are principally
Jason Nicolay, left, and John Casella show an oil-sampling vial for AGAT Laboratories. The company is considering a southeast Saskatchewan location.
located on the west side of the province.
“We do a lot of
work in Saskatchewan. We travel from Red Deer,” notes Nicolay.
Industrial Electric (Weyburn) Ltd is a major maintenance and installations contractor for manufacturing and processing industries in the oil and gas sector. For over 35 years, IEW has provided high quality maintenance and installation services for some of Canada's largest companies.
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the 20,296 visitors who attended the GoExpo Gas and Oil Exposi-tion held last month at Stampede Park in Calgary relished their time lingering at the outdoor booth of TOMCO Group of Companies.
Th e oilfi eld servic-es and rentals company
used the opportunity to meet new custom-ers and hold a charity barbecue in support of the Calgary Homeless Foundation.
TOMCO provided all of the supplies for the barbeque and off ered a free hot dog and cold drink to all and encour-aged people to make a donation to show their support.
TOMCO themed the BBQ as “hot dogs for a good cause” and it worked to fi ll empty stomachs and spread good cheer.
When the last tube steak was served, TOMCO president and CEO Rod Tomyn pre-sented Fred Prior from the homeless founda-tion with the proceeds jar fi lled with more than $2,000.
Fred Prior from the Calgary Homeless Foundation receives a jar lled with $2,000 in donations collected from the TOMCO barbecue. Pictured are Dar-en Anderson, Doug Stickley, Fred Prior, Rod Tomyn, West Tomyn, Robert Cunningham and Tammy L’Heureux.
Photo submitted
Charity nds itself in hotdog heaven at GoExpo
• 5 Mobile Steamer & Washer Units • 8 Tractor Mower Units - For Lease Mowing • Lease Seeding
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In a news release, To-myn said he was pleased with the turnout at this year’s event and with the
positive response TOM-CO received from visi-tors to their booth.
Corporate repre-
sentatives were on hand to answer questions and demonstrate equipment – including some of the largest high-pressure test plugs in the industry.
Tomyn believes when times are tough, as they have been for many in the oil and gas indus-try this past year, that it is all the more important to stay visible to your customers.
TOMCO’s giant blue barbeque was hard to miss or resist with the mouth-watering phero-mone of grilled wieners drawing a crowd.
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P quick, easy installation (well shutdown during installation is recommended)P separate models available for any style stuffi ng boxesP spacious, semi-transparent holding tank - instantly monitor fl uid levelsP EnviroTrap two-piece cover is easy to remove and replace to accommodate packing changes and cleaningP available with Murphy Auto shutdown switch
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ADVANCED DESIGN FEATURESfully enclosed and self-containeddurable, rust-free constructionU.V. resistantall hardware is corrosion-resistant stainless steelsloped collection tray provides natural drainage, making the unit more drainage effi cient and maintenance-freetapered polish rod washer drains migrating fl uid back into collection unitautomatic pumpjack shutdown also available360º installation
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I am pleased to say the operators are ecstatic about the new version of covers on this last round of containments. We tried some of your competitors
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Regina – Th e June land sale of Crown petroleum and natural gas rights generated $18.1 million for the province with the Weyburn-Estevan area leading the way.
Weyburn-Estevan area Th e total bonus received in the area was $11 mil-
lion, an average of $451 per hectare.Th is compares to $9.6 million, an average of $482
per hectare at the last sale.Th e top purchaser of acreage in this area was
LandSolutions Inc. that spent $4.2 million to acquire four lease parcels.
Th e top price paid for a single lease in this area was $1.5 million paid by LandSolutions Inc. for a 130 hectare parcel situated within the Lost Horse Hill Frobisher-Alida Beds Pool, 15-km north of Stoughton.
Th e top price paid for a single licence in this area was $609,879 paid by Th e Soo Line Resource Group Ltd. for an 8,859-hectare block situated 10-km southwest of the Minton Winnipegosis Oil Pool, 18 km southwest of the village of Minton.
Th e highest dollar per hectare in this area was received from LandSolutions Inc. that paid $17,529 per hectare for each of two separate 65-hectare par-cels located within the Lost Horse Hill Frobisher-Alida Beds Pool, 15-km of Stoughton.
Swift Current area Th e total bonus received in the area was $2.9 mil-
lion, an average of $145 per hectare.Th is compares to $509,012, an average of $100.83
per hectare at the previous sale. Th e top purchaser of acreage in this area was
Standard Land Company Inc. that spent $1,393,671 million, to acquire 15 lease parcels.
Th e top price paid for a single lease in this area was $187,759 paid by Standard Land Company Inc. for each of four separate 259-hectare parcels situated adjacent to the Illerbrun Upper Shaunavon Oil Pool, 13-km southeast of the town of Gull Lake.
Th e highest dollar per hectare in this area was received from Canadian Coastal Resources Ltd. who paid $3,483 per hectare for a 32-hectare parcel lo-cated within the Whitemud Shaunavon Oil Pool, 17-km southeast of Eastend.
Kindersley-Kerrobert area Th e total bonus received in the area was $2.2 mil-
lion, an average of $283 per hectare. Th is compares with $970,917, an average of $125 per hectare at the April sale.
Th e top purchaser of acreage in this area was O & G Resource Group Ltd. that spent $672,914 to acquire four lease parcels.
Th e top price paid for a single lease in this area was $313,100 paid by Standard Land Company Inc. for a 259-hectare parcel situated adjacent to the Plen-ty Viking Sand Oil Pool, nine km east of Dodsland. Th is is the highest dollar per hectare in this area at $1,209 per hectare.
Lloydminster area Th e total bonus received in the area was $1.9 mil-
lion, an average of $475per hectare. Th is compares to $602,533 an average of $438 per hectare at the last sale.
Th e top purchaser of acreage in this area was Windfall Resources Ltd. that spent $563,168 to ac-quire one lease parcel.
Th e top price paid for a single lease in this area was $563,168 by Windfall Resources Ltd. for a 241-hectare parcel situated adjacent to the Big Gully North Mannville Sands Oil Pools, 15-km northwest of Lloydminster. Th is is the highest dollar per hectare in this area at $2,334 per hectare.
Estevan - Weyburn tops the province in June land sales revenue
WonderlandRegina band Wonderland specializes in one-hit wonders. They were the entertainment for the Este-van OTS golf tournament steak or lobster supper on June 6. Here, they are warming up in preparation for the show. Photo by Brian Zinchuk
ResourcesResources GuideGuidePIPELINE NEWS July 2009C18
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PIPELINE NEWS July 2009C20
SALES AND RENTALS OF SALES AND RENTALS OF NEW AND RECONDITIONED NEW AND RECONDITIONED
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