Your Safety Is Our Business 2012 ANNUAL REPORT
Enform is the health and safety association for Canada’s upstream oil and gas industry. With roots dating back more than 50 years, we provide leading health and safety training, programs and services, touching the lives of hundreds of thousands of workers each year. We are dedicated to the continuous improvement of safety with a vision of eliminating work-related incidents or injuries of any sort in the upstream oil and gas industry. Enform touches each segment of the upstream oil and gas industry with a goal to get everyone home safely, every day.
OUR MISSION
TABLE OF CONTENTS
Enform is the upstream oil and gas industry’s advocate and leading resource for the continuous improvement of safety performance. Our mission is to help companies achieve their safety goals by providing practices, assessment, training, support, metrics and communication.
Chairman’s Message
02
Safety Management
12
Our Partners
03
Resources
14
President’s Message
04
Performance
16
2012 Highlights
06
Service
17
What We Do
08
Financials
18
Training
10
Our Leadership
20
ENFORM 2012 ANNUAL REPORT
ENFORM 2012 ANNUAL REPORT
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CHAIRMAN’S MESSAGE
In Enform’s first annual report, you will find information about the extensive work that is underway every day to keep our industry safe. You will also find some key information when it comes to understanding Enform. Firstly, we are a not-forprofit organization supported by the six industry associations. Our structure allows us to play a unique role in not only representing the entire upstream sector, but in serving as the hub of safety.
“We are working 24/7 to create a safer workplace for the upstream sector and a culture of safety for our workforce.” From my dealings with the industry, it is not well known that Enform is a bottom-up organization. Industry associations bring ideas and issues to be resolved to our Enform Advisory Committee, which reports to the Board of Directors. Those ideas often originate from workers in the field and are brought forward by companies within the six associations. Our committee structure allows us to vet ideas and reach consensus among the six associations as to topics and issues that need to be addressed. We also have strong collaborative relationships with regulatory agencies across Canada and we work with industry and governing bodies to ensure we continue to have a progressive approach to safety. There is an important message that we work with every day: we all own health and safety and we all have an important role to play. By the very nature of our industry we are risk takers, but we know how to get the job done safely, and without injury. We are working 24/7 to create a safer workplace for the upstream sector and a culture of safety for our workforce. Enform will continue to enable improvement in industry safety performance through its leadership in providing integrated safety training and services for the upstream oil and gas sector. Enform is working on behalf of the entire industry to ensure everyone is going home safely, every day.
Duane Mather Chairman
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ENFORM 2012 ANNUAL REPORT
Enform was created by industry for industry. The oil and gas industry created Enform as a not-for-profit organization dedicated to meeting industry’s safety needs.
“We are a not-for-profit organization supported by the six industry associations and that allows us to play a unique role in not only representing the entire upstream sector, but serving as the hub of safety.” Duane Mather, Chairman, Enform Board of Directors
Canada’s Upstream Oil and Gas Industry
Board of Directors
Enform Advisory Committee
Enform
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PRESIDENT’S MESSAGE
Cameron MacGillivray joined Enform as President and CEO in June 2012. With 30 years of experience in the oil and gas industry, he brings a wealth of experience that ranges from the rig floor to the executive suite.
What was the main focus for Enform in 2012? This past year was a pivotal one for Enform. It was a year of enormous progress on a number of fronts. We took some important steps to improve delivery of our safety training programs and services to our customers in Canada’s upstream oil and gas industry. The first area of focus was to develop a business approach that set clear objectives and priorities with more streamlined operations and to clarify our mandate as an organization. Together with our customers and providers, we offer innovative training, products and services that support, enhance and promote a safety culture. In 2012 we mapped our internal systems and workflow, we established ways to measure our performance and we restructured the organization to set the groundwork for building multi-disciplinary teams. All of that effort had one fundamental objective: create a corporate culture to deliver safety and training services that the oil and gas industry needs and to deliver them efficiently and effectively. How do you plan to deliver products and services to the oil and gas industry more efficiently and effectively? We have a very dedicated team at Enform and we are driven by meeting our customers’ needs. Our clients are the new recruits and the seasoned employees working alongside them; they are the energy producers, drilling, geophysical, service and pipeline companies; and they are our partner associations. Improving customer service can mean reducing the amount of time it takes to process tickets or certifications so workers can get to work quickly, creating a more timely process for the COR audit process or developing a new safety training program. Regardless, we are here to serve our customers and our objective in the coming year is to further understand what our customers want and need - then to deliver in a user-friendly way. Already many of our business decisions are being driven by a stronger focus on our customers.
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ENFORM 2012 ANNUAL REPORT
“As the oil and gas industry continues to change and leading-edge technologies continue to evolve, we believe that our safety and training role within industry will grow.”
Training is a big portion of what Enform does. What trends have you been seeing?
Compiling industry metrics is another of Enform’s roles. Have there been new initiatives in this area?
Since 2009 the enrolment numbers in our courses have increased by almost 60 per cent. Last year Enform set another training record — almost 240,000 enrolments for more than 120 courses. While some students may register for a number of classes in a year, considering there are approximately 200,000 people in the industry, it is evident that Enform touches a good portion of the workforce each and every year. And, as the energy industry continues to change and leading edge technologies continue to evolve, we believe that our safety and training role within industry will grow.
One major initiative that Enform undertook in 2012 will allow the energy industry to more accurately track its safety performance. Enform has been tracking general safety performance metrics since 2008 and in 2012 we worked with industry and government to improve upon that process. Going forward we will be able to provide customers and the public with more accurate information including industry sector and company specific information. The changes will allow us to provide more meaningful year-over-year comparisons of the industry’s safety performance, including identifying specific areas of improvement.
Your online registration and training platform was launched just over a year ago. What impact has it had on service delivery?
What can we expect in 2013?
Our online delivery system has provided us with many new options and channels for registration, online training as well as a central database for a wealth of safety information that can be made easily available to industry. Since the launch we are beginning to see significant improvements in our registration and program delivery. For example, our Petroleum Safety Training (PST) online registration has doubled with the launch. It opens the door to more avenues for providing courses electronically to suit workers’ schedules and training needs. We are continuing to build upon the capabilities of this new system.
Enform plans to continue to build upon the key initiatives that we began in the second half of 2012 and will continue to focus on improvements of our online delivery system. Enform has already launched new process improvements such as streamlining our audit process for the industry COR program. We will continue to improve our services in many other areas. We have tremendous resources and expertise available to industry and individual companies, and we plan to ensure that these resources are readily available for all employers and workers. With a dedicated team offering evolving programs and services, we are making a difference. We are extremely proud of our team and our achievements to date and we continue to appreciate the excellent support that we receive from our member associations. We are all working together to set the standard in delivering safety.
Cameron MacGillivray President
ENFORM 2012 ANNUAL REPORT
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Highlights
700
145
taught Enform courses across Canada
participated in Safety Stand Down
training providers
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ENFORM 2012 ANNUAL REPORT
companies
2012 HIGHLIGHTS
“This past year was a pivotal one for Enform. It was a year of enormous progress on a number of fronts.” Cameron MacGillivray, President and CEO
Improving Customer Service
Streamlining Operations
240,000 certificates issued,
Tracking Safety Performance
36,000 online accounts created
a record number in Enform’s 52-year history
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WHAT WE DO
Everything we do is dedicated to the continuous improvement of safety. We promote health and safety practices through safety management planning and support, training programs, and we provide the information and resources needed to get the job done safely. By working with our association partners, we play a unique role as the industry’s hub of safety.
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TRAINING
SAFETY MANAGEMENT
•
Develop safety and technical courses and customized training
•
Manage the Certificate of Recognition (COR) program
•
Certify workers for industry skills and safety training
•
Develop safety audit protocols for oil and gas industry
•
Offer online, in classroom and hands-on training
•
Provide audit support
TrAINING
SAFETY MANAGEMENT
Performance
RESOURCES
performance
RESOURCES
• • •
•
Share information with industry through guidelines, web tools and other resources
• •
Work with industry to establish best practices
Host workshops and focus groups Provide industry safety metrics Analysis of health and safety systems
Facilitate events such as the Petroleum Safety Conference and Safety Stand Down
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TRAINING
Course Development and Training Enform has developed a wide range of innovative, world-class training courses to address industry needs and challenges in consultation with industry associations, government and subject matter experts. Enform’s technology and safety training courses enhance
requirements and efficient delivery allows Enform to provide
skills while responding to technological advances in the
safety training broadly across Canada and elsewhere.
upstream oil and gas industry. In 2012, Enform set a
To date more than 150 clients from other countries have
training record — almost 240,000 enrolments for more than
sought training from Enform and 75 individual companies
120 courses. The combination of Enform’s technical and
have received customized safety training programs.
safety expertise, ability to tailor programs for unique client
Every course is developed by a team of professionals including specialists in the field of instructional design, subject matter experts, various media specialists, program managers and instructors who provide real world personal experience. Classroom training is offered at Enform’s offices in Nisku and Calgary, Alberta, Regina, Saskatchewan and Fort St. John, British Columbia as well as through hundreds of external training providers.
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ENFORM 2012 ANNUAL REPORT
Enform’s H2S Alive® is the industry standard for hydrogen sulphide safety training. More than 154,000 students were certified in H2S Alive® in 2012.
eLearning The launch of Enform’s online delivery system in late 2011 was a major step forward in expanding Enform’s reach, opening the door to the development of additional online training courses, as well as moving some existing courses to an eLearning environment. Currently there are 12 eLearning offerings, the most popular being Petroleum Safety Training (PST) followed by Bear Awareness and Wildlife Awareness. PST has seen a two-fold increase in online registration in 2012.
Hands-on Training Enform’s oil and gas production facilities provide a hands-on training environment with full scale equipment and live fluids. Post-secondary institutions used the facility in 2012 for lab training as do corporate clients for custom training.
In 2012, more than 700
TOP 5 COURSES BY ENROLMENT
individual instructors and external training
1 H2S Alive®
providers offered Enform courses.
2 Petroleum Safety Training (PST) 3 General Oilfield Driver Improvement (GODI) 4 Wildlife Awareness 5 Well Service Blowout Prevention
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SAFETY MANAGEMENT
Certificate of Recognition (COR) Program Enform is the certifying partner for the Certificate of Recognition (COR) program for the oil and gas industry. A COR is awarded to employers who implement and
Alberta, Saskatchewan and British Columbia have their
maintain a health and safety management system that
own set of COR standards. Enform is the only certifying
meets established provincial standards.
partner in Canada that provides COR protocols that are cross-jurisdictional meaning that through Enform, only
COR provides an ongoing process for companies
one audit is required for a company operating in
to identify and assess workplace hazards and then
multiple provinces.
systematically control risks to protect their workers. The COR program is designed to meet established standards.
2770 COR/SECOR certifications were issued in 2012
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ENFORM 2012 ANNUAL REPORT
2012 Highlights The COR program experienced growth year-over-year up until 2012 where certifications numbers declined slightly. Industry feedback to the new audit protocol introduced in 2010 resulted in a review and it was determined that changes to the protocol would improve the auditing process. A priority in 2013 is to revamp the protocol so that it is more efficient and streamlined for companies. To help companies bridge the gap between a COR and the Small Employer Certificate of Recognition (SECOR), Enform introduced the Medium Employer Certificate of Recognition (MECOR) process in 2012. It is available to existing SECOR holders and companies new to the COR program who have between 10 and 19 employees. At the end of 2012, 33 companies were participating in the MECOR program. In 2012, a series of how-to videos were created for employers and auditors to provide information on the COR process. These included information on hazard identification and risk assessment, hazard control and sampling. Enform began holding auditor workshops in 2012. These workshops are designed as a coaching opportunity for Enform auditors. The workshops are interactive. They are adapted to the needs and interests of the participants. 16 auditor workshops were also held throughout Western Canada. Workshops will be expanded to also include company participants in 2013.
On average, disabling injury and lost time claim rates fall by
40%
You earned your COR, be proud of it! The COR logo is now available for companies to display on their website, letterhead or other documents. For more information visit enform.ca
within two years of receiving a COR* * Source: WCB Alberta
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RESOURCES
Facilitation and Development of Industry Safety Resources Every company has the primary responsibility for the safety of its workers. But no company can – or should have to – develop all of their safety practices in isolation. Enform provides a forum for collaboration between
To that end, a number of new publications, web tools and
companies, industry associations, government
other products were launched in 2012 in various formats
representatives and other stakeholders to develop safety
including print, video and online.
best practices, set priorities and achieve shared safety goals. Enform plays an important role in bringing together the experts to develop safety practices and tools and then sharing this information with companies to improve the safety performance of the entire upstream oil and gas sector.
New Resources in 2012
LEASE LIGHTING GUIDELINE The industry’s first Lease Lighting Guideline was released with recommendations for realistic lighting levels for activities outside the rig floor, based on international and North American standards. The guideline clarifies operator and contractor responsibilities for providing lighting.
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SHELTER-IN-PLACE A Shelter-in-Place resource was developed in collaboration with the Canadian Association of Petroleum Producers (CAPP) to describe the fundamentals for public protection in the event of an outdoor release of a hazardous substance.
ENFORM 2012 ANNUAL REPORT
WELLSITE SUPERVISOR COMPETENCY ASSESSMENT TOOL The Wellsite Supervisor Competency Assessment Tool was introduced as a pilot web tool to support the Supervisor Competency Guideline, an important resource for ensuring supervisors are competent to safely execute oil field operations.
FIRESMART® FIELD GUIDE The FireSmart® Field Guide was created as a site specific guide and wildfire risk assessment tool for field operators to help reduce the impact of wildfires on personnel safety, the environment, industry infrastructure, operations, and liability.
Events PETROLEUM SAFETY CONFERENCE Enform’s annual Petroleum Safety Conference brings together delegates, sponsors, exhibitors and volunteers to discuss issues and trends in health and safety, and as a forum for professional and supplier networking. In 2012 nearly 1,300 people attended the conference themed Safety 360. SAFETY STAND DOWN Safety Stand Down is an industry-wide campaign to encourage a company’s senior management to meet with employees for open discussions about health and safety and to demonstrate a top-down commitment for improvements. Enform conducted more Lunch ‘n Learns in 2012 in response to increased interest of the event. More than 145 companies registered to conduct a Safety Stand Down in 2012.
All of these resources are available at www.enform.ca
GENERAL SAFETY ORIENTATION (GSO) GUIDELINE A General Safety Orientation (GSO) Guideline was created in response to the need for an orientation for young and new workers. A free, online training video (eGSO) has been developed and was released early in 2013.
CONTROLLING CHEMICAL HAZARDS WEB TOOL A web tool was launched in conjunction with the Controlling Chemical Hazards Guideline, which allows employers quick access to information on how to deal safely with chemicals onsite. This innovative tool allows users to enter information about chemicals in use and immediately create guidance sheets for workers onsite.
SILICA AWARENESS Resources were created in response to increasing awareness about worker exposure to silica due to large volumes of sand used in advanced hydraulic fracturing techniques. In 2012, Enform created a silica information sheet and web page on the topic. Enform also participated in the Houston-based silica focus group and Alberta’s silica research project.
In 2012 Enform gave presentations about the new tool at health and safety conferences in Alberta, Ontario and Texas, and also conducted information sessions on the guideline and web tool in Western Canada.
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PERFORMANCE
Safety Coaching and Performance Metrics In 2012 Enform launched an industry mentorship and support program to assist companies in building a safety culture. Enform developed a three-tiered approach with the
develops metrics for continuous industry-wide improvement
first step looking at industry data to measure industry
in workplace safety.
performance and determining where support is needed, for instance, companies and sectors needing to improve their safety results. The next two steps focus on support and education through focus groups and onsite visits.
1 Performance Metrics Enform collects, analyzes and assesses industry insights and reporting data to develop and advance Canadian standards and best practices in safety performance. Enform tracks safety practices in the industry and
Enform improved its ability to report industry metrics and developed an electronic analysis tool that underwent beta testing in 2012. This tool will be available in 2013.
2 FOCUS GROUPS In 2012 working focus groups were established in Saskatchewan to bring together companies from industry specific areas to discuss workplace accidents and injuries, identify root causes and possible interventions. Enform plans to rollout similar information sharing sessions across Alberta and British Columbia in the future.
48% of companies selected for onsite support significantly improved their safety performance* * Reflected in the accident and surcharge data
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ENFORM 2012 ANNUAL REPORT
SERVICE
Improving Customer Service Enform is committed to continually improving its customer service. To keep pace with the growing demand for Enform’s technical skills and
3 ONSITE VISITS
safety training, an online delivery system was launched in late 2011.
Working with the Saskatchewan Workers’ Compensation Board, Enform helped to identify
Our online platform allows users to register for courses, create
companies with high injury ratings. Enform visited 24
individual profiles, check their training record, and order replacement
of these companies to provide coaching, mentoring
certificates online.
and recommendations on how to improve their safety performance. This support improved their
It was a busy year as Enform employees worked to develop and
safety performance which resulted in lower worker
improve the new system. System enhancements are continuing in
injuries and illness and reduced compensation
order to provide better service to all of Enform’s customers.
costs - benefitting the individual companies and the industry’s overall compensation rate.
More than
With the online system workers now receive
36,000
certificates within days
user accounts have been created in 2012
Phone call wait times have dropped significantly since the launch of the online system
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2012 FINANCIALS
Statement of Operations For Year Ended December 31, 2012
2012
REVENUES Training
Funding - WCB
Conference & Events
20,738,494 8,218,092 908,446
Safety
901,386
Management Fees
632,998
Other Income
384,773
PHRC Fee
177,030
Community Development Trust Fund Grant
50,833 32,012,052
COST OF SALES
Direct Salaries & Benefits
6,996,490
Training
5,846,634
Safety
1,109,597
Conferences & Events
848,537
Course Development
427,371
PHRC Donation
177,030
Third-Party Course Development
1,140 15,406,799
SUBTOTAL
16,605,253
EXPENSES
Indirect Salaries & Benefits
6,412,984
General & Administrative
3,899,499
Amortization of Property & Equipment
3,501,800
Rent & Premises
2,710,547
Professional Fees
1,063,176 17,588,006
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES FROM OPERATIONS
(982,753)
OTHER INCOME (EXPENSES)
Workers Compensation Board Special Dividend
Gain (loss) on Disposal of Property and Equipment
1,900,000 2,000
Gain (loss) on Foreign Exchange
(778) 1,901,222
EXCESS OF REVENUES OVER EXPENSES
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ENFORM 2012 ANNUAL REPORT
918,469
Statement of Financial Position As at December 31, 2012
2012
ASSETS CURRENT Cash
Term Deposits
Accounts Receivable
Goods and Services Tax Recoverable
Prepaid Expenses
1,319,489 12,323,064 1,501,488 29,633 331,654 15,505,328
PROPERTY AND EQUIPMENT LONG TERM INVESTMENTS
5,639,245 126,921 21,271,494
LIABILITIES AND NET ASSETS CURRENT
Accounts Payable and Accrued Liabilities
2,374,842
Deferred Revenue
2,346,577 4,721,419
NET ASSETS
Invested in Property and Equipment
5,639,245
Unrestricted Reserve
5,910,830
Restricted Reserve
5,000,000 16,550,075 21,271,494
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OUR LEADERSHIP
BOARD MEMBERS 1 Cameron MacGillivray President and CEO Enform 2 Mark Scholz (CAODC) President Canadian Association of Oilfield Drilling Contractors 3 Duane Mather Chairman Past President Nabors Canada
ABSENT FROM PHOTO 4 Robert Haynes (CEPA) Vice President, Human Resources SaskEnergy/TransGas 5 Mark Salkeld (PSAC) President Petroleum Services Association of Canada 6 Glenn McNamara (CAPP) Chief Executive Officer Petromanas Energy Inc.
EXECUTIVE Cameron MacGillivray President and Chief Executive Officer Jeff Rose Chief Operating Officer Rick Shatosky Controller Lloyd Harman Vice President, Health & Safety and General Manager, Nisku
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ENFORM 2012 ANNUAL REPORT
7 Ziad Saad (CEPA) Vice President, Safety & Sustainability Canadian Energy Pipeline Association 8 Dave Collyer (CAPP) President Canadian Association of Petroleum Producers 9 Rod Garland (CAGC) Business Development Manager Bear Slashing Inc.
Karl Ruud (CAODC) Executive Vice President Akita Drilling Ltd. Michael Poltz (CAGC) HSE Manager, Americas CGG Veritas Jonathan Lexier (EPAC) President & CEO Terrex Energy Inc.
Walter Dumont (PSAC) Senior Vice President, Industrial Services Clean Harbors Energy & Industrial Services Gary Leach (EPAC) Executive Director The Explorers & Producers Association of Canada
ENFORM ADVISORY COMMITTEE MEMBERS: CHAIRMAN Glenn McNamara, Chief Executive Officer, Petromanas Energy Inc.
CEPA
CAGC Andrew MacLeod, Manager, Safety & Training, Canadian Association of Geophysical Contractors
Dean Wihnan, Team Leader, Health & Safety, Alliance Pipeline Ltd.
Mike Colwell, Manager, Health & Safety, SAExploration CAODC Nancy Malone, Vice President, Operations, Canadian Association of Oilwell Drilling Contractors Tim Dibben, Health, Safety & Environmental and Human Resources Manager, Akita Drilling Limited CAPP Brad Herald, Manager, Alberta & Saskatchewan, Canadian Association of Petroleum Producers David Pryce, Vice President, Operations, Canadian Association of Petroleum Producers
Thomas Linder, Director, Safety, Canadian Energy Pipeline Association
EPAC Jim Swiss, Managing Director, Alliance Borealis Canada Corp. Cory Larson, Supervisor, Health, Safety & Environment, Crescent Point Energy PSAC Patrick Delaney, Vice President, Health & Safety, Petroleum Services Association of Canada John Artym, Vice President, Health, Safety & Environment, Strike Group Inc. SASKATCHEWAN John Kennedy, General Manager, Corporate Division, Diamond Energy Service BRITISH COLUMBIA Vacant
Enform is located close to industry activity. Based in Calgary, Enform also has a hands-on training facility and classrooms at Nisku, Alberta and provincial offices in Fort St. John, British Columbia and Regina, Saskatchewan.
info@enform.ca | www.enform.ca Enrolment Services and Certificate of Recognition: 1.800.667.5557
CONTACT CALGARY
NISKU
BRITISH COLUMBIA
SASKATCHEWAN
5055 - 11 Street NE Calgary, AB T2E 8N4
1020 - 20th Avenue Nisku, AB T9E 7Z6
#1240, 9600 - 93rd Avenue Fort St. John, BC V1J 5Z2
1912 Prince of Wales Drive Regina, SK S4Z 1A4
Phone: 403.516.8000
Phone: 780.955.7770
Phone: 250.785.6009
Phone: 306.337.9600
Toll Free: 1.800.667.5557
Toll Free: 1.800.667.5557
Toll Free: 1.855.436.3676
Toll Free:1.877.336.3676
ENFORM 2012 ANNUAL REPORT
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info@enform.ca | www.enform.ca Enrolment Services and Certificate of Recognition: 1.800.667.5557