B.C. Oil & Gas Report 2014

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Green light for the Northern Gateway project: traversing the long road ahead Prince Rupert LNG terminal proves a hotbed for entrepreneurs B.C. on the cusp of an upward swing of construction thanks to LNG

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Pipeline & Facility Construction

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B.C. Oil & Gas Report 2014 is published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba Canada R3L 0G5

British Columbia

Oil & Gas Report

2014

Contents 12 Message from the Premier of B.C., the Honourable Christy Clark

70 Hydraulic fracturing code of conduct: Industry’s commitment to Canadians

16 Message from the B.C. Minister of Energy and Mines, the Honourable Rich Coleman

72 Economical and environmentally responsible geochemical method reduces program costs for oil and gas exploration in difficult terrain

18 Message from the Minister of Aboriginal Relations and Reconciliation, John Rustad 20 B.C.’s Skills for Jobs Blueprint – Preparing our workforce for the future

74 Paramedics re-shaping emergency care in British Columbia’s oil and gas sector 76 Analytics in the oil and gas industry

22 Green light for Northern Gateway Project: Traversing the long road ahead

78 TOG Systems takes telecommunication reliability to the next level

26 The role of natural gas in reducing global GHG emissions

80 Unmatched in service and support: Canadian Pump & Compressor

30 B.C. LNG development offers great potential, but thorny issues remain to be solved

82 Mud innovation

32 Northern Gateway – A path forward with First Nations and Metis communities 34 Drilling in 2014 puts Nexen in great shape for next year in Northeastern B.C.’s Cordova Basin 36 Encana going saline to reduce surface water use

84 Landsea Camp Services: Providing your remote accommodation and catering solutions 86 Prior preparation: Alpha Safety Ltd. 88 Flexpipe Systems as a tool in low-impact pipelining

37 Water portal adds to B.C.’s online water information

90 Making the Earth move for over 50 years

38 Crafting a bright new future for Canada’s energy exports

94 A promising partner for a long-term future: Gas Drive

40 Fueling the future: Energy Services BC actively advocates province’s service sector

96 Safely home: Diversified Transportation Ltd.

41 Will the China-Russian natural gas deal sink British Columbia’s LNG dreams?

98 A comprehensive solution for workforce logistics management 100 Soil stabilization An emerging technology

48 Housing hiccups: Communities feel the crunch of temporary workers

102 LAE brings robust solutions for transfer of hazardous fluids through innovation

51 From the ground up: Keeping B.C.’s workers safe

104 For all your needs: Raven Oilfield Rentals 106 Size doesn’t matter to ENTREC

57 Horn River Basin Producers Group: B.C., the U.S. and global context

108 British Columbia lift specialists: Full-service lifting solutions

60 Service rigs and the long-reach well

110 First in safety and service: Industrial Scaffold Services LP

62 Keystone XL debate rages throughout summer 2014 64 Working in the oil and gas sector in B.C.?

Know your responsibilities and your options 66 Preparing for success: Progress and development in the Northern Rockies 68 A broad scope of unconventional hydrocarbon resources to be explored at the 2014 Unconventional Resources Conference – Canada 6

B.C. Oil & Gas Report • 2014

Associate Publisher Jason Stefanik Managing Editor Shayna Wiwierski shayna@delcommunications.com Contributing Writers Dave Collyer Melanie Franner Leonard Melman Jillian Mitchell Yarah S. Moharam Catherine Pennington Jay Roberge Connie Shepherd Kathy Smith Cindy Soderstrom D.A. Sutherland Sales Manager Dayna Oulion

Account Representatives Brian Gerow Jennifer Hebert Mic Paterson Anthony Romeo Colin James Trakalo Production services provided by S.G. Bennett Marketing Services www.sgbennett.com

92 SDI “TILT” desanders range expanded

44 Shift. Build. Grow. B.C. on the cusp

56 A new kind of gold: Prince Rupert LNG terminal proves a hotbed for entrepreneurs

President David Langstaff

111 Van Houtte Coffee services: A unique solution to all your beverage needs 112 For all your testing needs, Peregrine Pressure Testing Ltd. has you covered 112 Communications solutions for the north coast: Coast Mountain Wireless 114 Index to advertisers

art Director Kathy Cable Layout & Design Dana Jensen Advertising art Joel Gunter Sheri Kidd

Cover photo courtesy of the Prince Rupert Port Authority. © 2014 DEL Communications Inc.

All rights reserved. Contents may not be reproduced­by any means, in whole or in part, without the prior written permission of the publisher.

While every effort has been made to ensure the accuracy­of the information contained herein and the reliability of the source, the publisher­in no way guarantees nor warrants­ the infor­ma­tion­and is not responsible­for errors, omissions or statements­made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees.

Publications Mail Agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba R3L 0G5 Email: david@delcommunications.com

DEL

Communications Inc.

Printed in Canada | 09/2014

Trained & licensed paramedic professionals Local, Regional & International Service Paramedic equipped 4x4 Mobile Treatment Centres Industrial Ambulances Emergency Air Ambulance Medevac Advanced Life Support (ALS) Capabilities Clinic & Remote Healthcare Solutions

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• Residential & commercial development needed for growing population.

• Demand for multi-family and age-friendly housing.

• Land available for estate lots.

• Tourism operators wanted to provide outdoor experiences in the Shangri-La of the Northern Rockies.

• Bioenergy – utilizing timber infected by the Mountain Pine beetle.

• Community Forestry – recently approved application is providing the community with its own forest with an annual allowable cut of 20,000m3.

Economic Drivers • 9 billion ton met coal deposit discovered.

• Innovative long wall mining process.

• Two 180mw wind farms operating or under construction.

• Ideally situated for the Trans-Canada and Enbridge pipelines, as well as multiple natural gas projects.

For a copy of our Economic Outlook Summary, Community Profile, or any other info please contact:

Economic Development Office T: 250.242.4242 | edo@dtr.ca | www.investTumblerRidge.ca

B R I T I S H

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Lasting Impressions

Homegrown

Modular Solutions

At Williams Scotsman of Canada, we’re proud of the work we do. Our talented team of experts understands the specific challenges of each unique region of our country because our knowledge and expertise is homegrown. From the harshest, most remote locations, to the heart of major cities and everywhere in between, our design professionals have the local experience necessary to work with you to combine functionality, innovative technology, and intelligent design to satisfy your every need.

Whether your project requires a temporary or permanent facility, for a few workers to several thousand, we can design and customize a modular solution that supports your company goals. Fast, functional, flexible solutions that are as hard working as the country they serve.

• Administrative offices • Bunkhouses • Kitchen and dining facilities • Recreation complexes

• Washcars and water storage units • VIP staff quarters • Conference rooms • Command and security centers

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SERVICE FIRST Expect us to bring our best today and tomorrow.

Our commitments to technological innovation, well-trained personnel, industry-leading health and safety programs and service excellence make us the leaders in the pressure pumping industry.

We strive to further our ability to perform for our customers and push for innovation through technical expertise in the following areas: fracturing and coiled tubing design and

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simulation, advanced lab analysis capabilities, strategic pre-job planning, pre-frac and post-frac analysis.

“WE’RE BREAKING NEW GROUND…. EVERY DAY”

Message from the B.C. Premier

The Honourable Christy Clark

B

ritish Columbia is blessed with a lot of advantages – an educated population, some of the world’s best tourist destinations, and a growing economy – but one of the most important is our abun-

dance of natural gas.

British Columbia has been a leader in safe, responsible natural gas development for more than 50 years, with the most modern regulations in Canada. But the global demand for energy, specifically the cleanestburning non-renewable resource in natural gas, continues to increase, particularly in the growing economies of Asia.

With an abundant supply, a global reputation as a stable and secure trading partner, and the shortest North American shipping routes to Asia, this presents B.C. with a unique opportunity, and our focus is to build the world’s most competitive jurisdiction for LNG development.

We have ambitious targets for a new LNG industry, with a goal of three LNG facilities by 2020.

B.C.’s LNG industry is all about creating more opportunities in communities across the province and the country. It’s a legacy we can pass onto our children and grandchildren.

This opportunity transcends politics. That’s why I have reached across the table to anyone and everyone who shares our goals of a strong, prosperous B.C. and Canada. We’ve hosted two international LNG conferences in Vancouver. I’ve led five international trade missions, led a delegation to Ottawa to secure agreement on the Canada Job Grant, and worked with labour and First Nations to ensure British Columbians are first in line for the jobs that will come. Their recommendations played a key role in launching the Skills for Jobs Blueprint, a comprehensive strategy to re-engineer B.C.’s education and apprenticeship systems.

We are working to ensure students today and tomorrow are ready for the job market they will enter into, and that they’re equipped with the right skills to compete and win.

The next few months are crucial. We’re getting closer to final investment decisions, with PETRONAS and Woodfibre LNG agreeing to reach project development decisions with us by November 30. When the legislature resumes in the fall, we’ll finalize aspects of our LNG policy framework that will provide certainty for proponents as they look to finalize projects.

While there’s a lot more work to do, we’ve come a long way. This is an incredible opportunity to build a stronger, more prosperous province and country – and our focus will not waiver. S

12 B.C. Oil & Gas Report • 2014

The AEU1 series is the first unit heater of its kind in the world to receive the ATEX, IECEx & EAC Ex Gas and Dust certifications.

Hazloc Heaters™, a leading manufacturer of industrial unit heaters for hazardous and severe-duty locations, is pleased to announce the introduction of the AEU1 series of Explosion-Proof Electric Air Heaters certified to ATEX, IECEx & EAC Ex (Customs Union) requirements.

The AEU1 series of unit heaters are designed for industrial applications to provide primary or supplementary heating for comfort or freeze protection in areas that are classified as hazardous locations (Gas or Dust atmospheres). AEU1 models are CE Marked and certified to meet ATEX/IECEx/EAC Ex Zone 1 & 2 or Zone 21 & 22 requirements with IP55 & IP65 ratings respectively and a T4 (135°C) temperature code.

The three cabinet sizes (from 5 to 30kW) of AEU1 heaters include our ExCaliber™ high performance liquid-to-air heat-exchanger cores that are available in fourteen 400 Volt, 50 Hz model choices from 5 to 30kW to meet customer specific heat output requirements at supply voltages between 380 V to 440 V and fourteen 480 Volt, 60 Hz models to

accommodate shipping vessels, offshore rigs or other applications requiring 60 Hz. The rugged and versatile AEU1 heater incorporates a high quality immersion heater, IEC motor connected by cable and cable glands for easy field replacement, a sturdy 2 mm (14 GA) steel cabinet with epoxy/polyester powder coating for corrosion resistance, large control enclosure with an extra port for convenient wiring of an external room thermostat, and enclosure O-rings to minimize moisture ingress. Standard safety features include two temperature high limits and a high-quality pressure relief device.

and Dust certifications. This reinforces our dedication to helping our customers grow and prosper by providing leading edge industrial heating products, technical expertise, and outstanding service.” Hazloc Heaters™ is also committed to a high standard of quality and on-time delivery performance.

Hazloc Heaters™ Vice President of Sales and Marketing, Darren Ochosky, stated, “The AEU1 series is the first unit heater of its kind in the world to receive these approvals for Gas

Hazloc Heaters™ is based in Calgary, AB, Canada. For further information, please contact Darren Ochosky at 1-866-701-Heat (4328) or 403-730-2488 or visit www.HazlocHeaters.com.

SERVING WESTERN CANADA • LTL • Full Load • Bulk • Hot Shots/Express • Scheduled Delivery • Overnight Service • Decks • Container Chassis • Heated Vans • Consolidation • Yard Storage • Heated Warehouse Storage

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WWW.ROSENAU.ORG For more information please go to our website.

B.C. Oil & Gas Report • 2014

13

HAVING A SAFE WORKPLACE DOESN’T HAPPEN BY ACCIDENT

SAFETY – IT DOESN’T HAPPEN BY ACCIDENT COR Solutions is a Canadian-owned-and-operated company serving all of Canada. The company is now in its 10th year of assisting various industries in meeting and exceeding their safety requirements in several key areas. With 25 years in the construction and oil and gas industries, and 10 years in safety consulting, COR Solutions’ experience is key in assisting their clients with all Canadian OHS requirements.

The company’s focus is on the four main areas that are essential to their client’s successful operation:

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COR Compliance Made Convenient & Hassle-Free

COR Solutions is 100% Western Canadian-owned and operated with many years’ experience in various industries. As safety experts, we provide invaluable assistance with all of your safety requirements.

COR/SECOR

Development of OHS-compliant Canadian HSE Safety Manuals for COR and SECOR requirements to enable clients to achieve and maintain a Certificate of Recognition.

Available in all provinces, this is a service that is also available to American companies who wish to expand operations into Canada, and must comply with Canadian safety legislation.

The company gives guidance on choosing the appropriate certifying partner for pursuing COR and SECOR in any province in Canada. Depending on the province and industry, companies will become certified through the appropriate certifying partner for their industry. In British Columbia, most construction and oil and gas companies will qualify through Enform or the BC Construction Safety Association (BCCSA).

ISN, COMPLYWORKS, PICS, CQN COMPLIANCE

We specialize in assisting and supporting small, medium and large-sized employers in achieving

Assisting clients with contractor registries, such as ISNetworld®, Complyworks, PICS Auditing and CQN.

Recognition Safety Program.

Another service we offer is assistance with gaining membership in contractor registries like ISNetworld®, ComplyWorks, PICS Auditing, and CQN (CanQual). With our expert staff we can complete initial data input for companies, and they offer monthly packages to maintain and monitor your account, ensuring a top level of compliance, which enables your company to perform services for owner/clients without interruption and seamlessly.

ISNetworld / ComplyWorks • ISNetworld® • RAVS® & MSQ™ • ComplyWorks®

• PICS Auditing • CanQual

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WHMIS TDG PPE OH&S & the Law Sexual Harassment Hours of Service Fatigue Mgmt Ground Disturbance Over 130 available courses

Serving all of WESTERN Canada

They also supply ISNetworld® RAVS®, T-RAVS® and training modules based on company safe operating practices.

ONLINE SAFETY TRAINING Online safety training courses save travel time and expenses.

Although legislative compliance is a motivator for getting personnel trained, organizations that invest in safety training can benefit from increased job satisfaction of their personnel, improved productivity, lower accident frequency, increased retention, and a stronger overall safety culture within the organization.

COR Solutions offers over 130 online safety training courses through our website, with a portal on the homepage. Learners print off a certificate upon successful completion of every course.

Many of these courses meet the requirements for specific safety training that are asked for in a COR/SECOR audit, such as PPE training and fire extinguisher training, very helpful in passing a safety audit.

The contractor registries (ISN®, Complyworks etc.) have questionnaires that also ask for records of specific training, and many of the courses required to meet these requirements are also available through their online training portal on the website.

Assistance with the following Contractor Registries:

The certificates that company personnel achieve after having passed online courses can be uploaded to meet T-RAVS® requirements in ISN® and questionnaire requirements in contractor registry subscriptions.

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There are also many courses targeting the trucking industry and their particular regulatory compliance requirements.

Initial Data Input • Uploading of Required Documentation Monthly Monitoring/Maintenance Packages

SAFETY REQUIREMENTS Another service offered is development of company-specific safe procedures, such as journey management, industrial hygiene, fatigue management, ergonomics, PPE, or any other sections for your HSE safety manual, and/or help with completion of master service agreements or pre-qualification questionnaires.

Also available is their service to develop formal hazard assessments to complement any company safety manual/plan. All certi-

fying partners for the Certificate of Recognition Program are now insisting on having formal hazard assessments included in all company’s safety manuals.

COR Solutions is a Better Business Bureau member.

Spend more time working, and less time training.

Online courses now available COR Solutions now provides online safety courses to keep training up to date and remain compliant.

Visit www.corsolutions.ca for more.

COR Solutions “Your Safety Specialists” Phone 1-866-530-4267

Ltd.

Message from B.C. Minister of natural gas development and deputy premier The Honourable Rich Coleman

B

ritish Columbia’s natural gas and oil sector is a pillar of the province and we now have a generational opportunity to build a liquefied natural gas industry, create jobs and secure economic stability for communities across B.C.

The province is poised to be a player in the global LNG market. A long history of safe, responsible natural gas development makes B.C. a reliable place to invest and conduct business. In addition to a low overall tax burden and a competitive royalty regime, B.C. has a vast supply of natural gas located fairly close to proposed facilities; a skilled workforce; robust infrastructure; political and economic stability; relatively short transport times to key Asia markets; and a cooler coastal temperature that saves energy and costs during the liquefaction process.

Our government is pursuing LNG vigorously because it will create jobs and new economic opportunities. We will create lasting, responsible economic development, and are working hard to build an entirely new industry in our province.

Global investors and major companies have come forward with multiple project proposals. This will bring thousands of new jobs to our province and we want British Columbians to have the opportunity to fill those openings.

Recent analysis shows that if five plants are constructed in B.C. between 2015 and 2024, the LNG sector will need to fill 100,000 jobs, including more than 58,000 construction jobs. We’ve released the Skills for Jobs Blueprint, a targeted plan to re-engineer B.C.’s education and training system to be ready to meet this demand.

We know there will be increased demand for natural gas-related occupations.

For example, we know we will need 1,800 more welders, 2,900 more steamfitters and pipefitters, and 10,500 more construction labourers. Most of these jobs will be in the North – either through upstream development in the Northeast or in LNG export facilities in the Northwest.

Many of these job opportunities are taking shape now, and we are ready to take advantage of these opportunities by putting a plan in place to train people with the skills they need.

In May 2014, we hosted the second international LNG in B.C. conference, one of the largest events of its kind this government has ever hosted. The conference was a sold-out success with over 1,400 delegates attending the three-day showcase.

Provincial government officials, local communities, First Nations leaders, academics and local communities participated in 14 engaging panel sessions focused on furthering B.C.’s LNG growth. It clearly demonstrates our commitment to build an LNG industry and the interest and enthusiasm from participants shows we are on the right track.

We look forward to hosting another successful conference October 14-16, 2015.

This is all possible as a result of the growth and success of our province’s oil and gas sector.

Please see http://www.gov.bc.ca/mngd/doc/LNG101.pdf for more information on LNG in B.C. and visit www.workbc.ca for more details about the Skills and Jobs Blueprint. S 16 B.C. Oil & Gas Report • 2014

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Message from Minister of Aboriginal Relations and Reconciliation John Rustad

A

s British Columbia’s Minister of Aboriginal Relations and Reconciliation, and as a lifelong resident of northern B.C., I understand the tremendous opportunity for economic growth currently facing northern communities. This includes the chance to transform Aboriginal communities and change the lives of First Nations communities.

In order to bring about that positive change, we need to continue to build and maintain respectful relationships and find ways to work together more collaboratively. B.C.’s First Nations need to be full participants in the economic opportunities, and their environmental values should be considered.

Liquefied natural gas presents a once-in-a-lifetime opportunity to accomplish this generational change for all British Columbians – for both Aboriginal and non-Aboriginal people.

Our government is committed to achieving arrangements that provide First Nations with tools to participate and benefit from LNG. We’re well on our way with negotiating and achieving these agreements.

In the Peace region of our province, we already have economic benefit agreements that share provincial gas revenues with Treaty 8 First Nations. We’re looking to update these agreements to reflect the growth of the LNG industry.

Along the mid-stream, we have an agreement providing $32 million to 15 First Nations along the Pacific Trails Pipeline route.

Downstream, we have agreements with the Lax Kw’alaams and Metlakatla First Nations to share a portion of provincial government revenues from sole proponent agreements related to the Grassy Point lands.

But we understand that LNG is not just about economic opportunities. For First Nations, and all British Columbians, it is important that we also have long-term environmental benefits from LNG development.

It’s because of this that I recently announced our new LNG Environmental Stewardship Initiative, where First Nations, the Province and industry will work together on key environmental priorities. The LNG ESI will build a focal point for collaboration between natural gas proponents, First Nations and government, and will bring stewardship initiatives that create a lasting legacy.

Over the coming few months, we will be engaging with First Nations and proponents to design the LNG Environmental Stewardship Initiative.

And I believe that’s the best way forward: collaboration, respect and listening.

A key part of my role as minister is to make sure First Nations participate in, and benefit from B.C.’s LNG opportunity. S 18 B.C. Oil & Gas Report • 2014

Industrial Scaffold Services

Western Canada’s leading provider of scaffold and associated services

B.C.’s Skills for Jobs Blueprint – preparing our workforce for the future

By Hon. Shirley Bond, Minister of Jobs, Tourism, Skills Training and Minister Responsible for Labour

B

ritish Columbia’s liquefied natural gas (LNG) sector is taking shape and we have a plan to make sure our province is ready for this once-in-a-generation opportunity. It isn’t every day that you get to create a brand-new industry, and the potential of LNG for our province cannot be overstated.

We released the BC Jobs Plan in 2011 with a commitment to build a liquefied natural gas sector in our province. Already, there are 13 project proposals on the table, nine of which have already received approved export licences from Canada’s National Energy Board.

We are projecting 100,000 new jobs if five plants become fully operational. These will be high-paying jobs with steady work in a growing industry. And we are clear that we want British Columbians to be first in line for jobs.

That’s why this spring we released the B.C. Skills for Jobs Blueprint. We’re re-engineering our education system – from kindergarten straight through to post-secondary training – ensuring apprenticeships, education and training are in line with the growing demands of the LNG industry.

jobs in the resource sector. Over the next three years, our gov-

One of the key objectives of the Skills for Jobs Blueprint is to prepare British Columbians for these new high-paying jobs in the resource sector.

termine what the province needs to do to prepare for the LNG

ernment will invest $185 million in trades and skills infrastructure and equipment projects, including the new Centre for Trades Education and Innovation at Camosun College in Victoria. We want to make it easier for B.C. families and students to make the best possible career choices in a changing economy.

Many LNG sector jobs will be in found near small communities in the North. Participation of aboriginal people is critical to the success of these LNG projects, and to our province as a whole. We’re helping more than 2,300 aboriginal people get access to trades training and apprenticeship programs.

With our access to the Asian market, B.C. is in position to become the most competitive jurisdiction in the world for LNG, building a sustainable industry with a legacy of highpaying, highly skilled jobs. The LNG industry could be the biggest energy development this province has ever seen.

The premier’s LNG working group consulted with 18 key representatives from government, industry and labour to desector. LNG companies are making final investment decisions and they need to know we will be ready.

There is work to be done ahead, but the momentum for LNG is building and we think we are on track. We’re trying to build a brand-new industry in LNG that will transform our

Partnerships with industry and labour are the foundation for building the skills necessary to get the LNG sector the workers it needs to start exporting LNG. Our government currently invests more than $7.6 billion annually in education and training. We’re doing that because the labour market in 2018 will look very different than today.

We’ll need more welders, steamfitters, pipefitters, trades labourers and skilled technicians.

One of the key objectives of the Skills for Jobs Blueprint is to prepare British Columbians for these new high-paying 20 B.C. Oil & Gas Report • 2014

province’s economy and wellbeing. The tax revenues will help to pay off the debt for our kids and continue keeping our taxes low. We think the best way to be prepared for the LNG sector needs of the future is by following the carefully planned steps outlined in our comprehensive Skills for Jobs Blueprint.

For more information on the BC Jobs Plan, please visit www.bcjobsplan.ca. For more information on B.C.’s Skills for Jobs Blueprint, visit www.workbc.ca/skills. S

Based in Fort St. John since 1961 V.E. Brandl has been serving the Canadian Oil and Gas Industry for over 50 years. With a fleet of 105 pieces of earthmoving equipment we have the right machine for any job whether it is building roads, wellsites, plansites, or wherever you need material moved quickly and cost effectively. In response to the growing demand to move large quantities of material for wellsites, plantsites and water storage facilities we have increased our fleet of motor scrapers to 19, 15 627 size and 4 631 size. We have outfitted multiple pieces of equipment with Topcon 3D GPS control to maximize the efficiency and accuracy that jobs can be done with. V.E. Brandl has been an industry leader in designing improved guarding and making safety modifications to their equipment.

With a WCB claims cost that is one third of the industry average and the achievement of the rarely awarded score of 100% on our most recent external COR audit V.E. Brandl truly puts safety into action.

Green light for Northern Gateway Project: Traversing the long road ahead

By Melanie Franner

T

he federal government of Canada may have given the go-ahead on the $6.5 million Northern Gateway pipeline project but there is still a long way to go before the province could realize the potential $1.2 billion in tax revenue and $4.3 billion in labour-related income anticipated over the next 30 years.

The project itself has been a long time in the making and the recent governmental green light comes with 209 conditions from the federally appointed Joint Review Panel (JRP).

There are also five conditions from the B.C. government. Together, the conditions point to the passing of even more time before the project gets off the ground.

“Today’s decision gives us greater confidence in developing a world-class project. However, we don’t see this decision as the final step – rather, it’s one more step in the process,” said Al Monaco, president and CEO of Enbridge Inc., in an official press release after the federal government’s June 17th announcement. “This is a process that requires a considered and respectful approach, and one that takes time to do it right.”

A pipeline in the making The pipeline project officially began on May 27, 2010 when the Northern Gateway Pipelines Limited Partnership filed an application with the National Energy Board to construct and operate a 1,170-kilometre twin pipeline that would carry up to 525,000 barrels of crude oil per day and up to 193,000 barrels of condensate per day between Bruderheim, Alta., and Kitimat, B.C. The project also consists of a marine terminal at the port of Kitimat, which would include two ship berths and 22 B.C. Oil & Gas Report • 2014

19 tanks for oil and condensate. The forecast suggests that the terminal would serve 220 ships per year.

According to information from Enbridge, 70 per cent of the proposed pipeline route would use previously disturbed land.

The economic benefits from the project are suggested to include: some $300 billion in GDP over the next years; $300 million in employment and contracts for aboriginal communities and businesses; $4.3 billion in labour-related income across Canada during the construction of the twin pipeline; $2.6 billion in local, provincial and federal government tax revenues; and 1,150 long-term jobs throughout the Canadian economy (of which 560 are projected to be in B.C.).

The Northern Gateway project has been met with both strong support and strong opposition all across the country.

Industry on side The Canadian Association of Petroleum Producers (CAPP) is one of the organizations on side with the Northern Gateway Project. On June 17th, CAPP issued a press release stating that the federal government’s decision on the Northern Gateway project is “positive for Canada’s oil and gas industry, British Columbians and all Canadians because the safe, responsible construction and operation of the pipeline would allow Canada to benefit economically from increased crude oil exports to growing global markets”.

“This is a key milestone for the process of getting access to offshore markets,” explains CAPP vice-president Stringham.

“The government’s decision to give the go-ahead on this project, while stipulating that Enbridge fulfill the JRP’s 209 condi-

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tions, supports Canadian prosperity while protecting people and the environment.”

Stringham went on to state that more than 100 of those conditions will need to be met before any construction could take place.

“It has now become an industry issue where we will see how well Enbridge can properly fulfill the 100-plus conditions,” adds Stringham. “The National Energy Board has not set a time limit, but Enbridge itself has said that it will take between 12 to 15 months to fulfill those conditions but want to get it right. How and when they do it will set the stage on how soon they can move into the construction stage.”

Other supporters of the project include a group of prominent Canadians, among them the premiers of Alberta and Saskatchewan, former federal cabinet ministers and provincial premiers, and influential business and community leaders.

All on board The other side to the Northern Gateway Pipeline project is also well represented.

Despite the fact that Enbridge has announced 24 B.C. Oil & Gas Report • 2014

Kitimat Mayor Joanne Monaghan.

Greg Stringham, vice-president of CAPP.

the signing of 26 equity partnerships with aboriginal commu-

“Polls consistently show two-thirds of B.C. voters agree the

nities (which it suggests represents more than 60 per cent of

North Coast is no place for oil tankers,” noted a West Coast

the aboriginal population along the proposed right-of-way),

Environmental Law press release.

opposition from other First Nation groups remains.

Residents of Kitimat are also torn over the decision.

According to a June 16, 2014 announcement from B.C.’s

“Our community is almost evenly divided over the issue,”

West Coast Environmental Law, an organization dedicated to

states Kitimat Mayor Joanne Monaghan, who adds that a re-

safeguarding the environment through law, there is strong op-

cently held plebiscite showed a 12-to-15 per cent sway be-

position to the project from many groups, including Coastal

tween the nays and the naysayers. “I wrote letters to the pre-

First Nations (a coalition of First Nation groups), Dogwood

mier and the prime minister. At this point, as a council, we

Initiative (a B.C. non-profit group), Unifor (Canada’s largest

have decided that we are going to hold Enbridge’s ‘feet to the

private-sector union) and One Cowhichan (a private citizen

fire’, which means we’re going to make sure they fulfill all 209

group).

conditions and the five B.C. government conditions. We’re go-

[Of note, Minister Greg Rickford, Canada’s Minister of Nat-

ing to make sure that they’re doing what they need to do.”

ural Resources for the Federal Economic Development Initiative for Northern Ontario, announced in May of this year the

A time to reflect

creation of a major projects management office west, which

The years that it has taken to get the Northern Gateway Pipe-

opened in June, and a tripartite forum, which has yet to be

line project to the point where it is today has provided ample

announced. Both measures are designed to help strengthen

time to make this a very public and controversial project in

engagement with First Nations and involve them in energy

the media spotlight. Regardless of the number of people and

infrastructure development in Canada.]

groups for and against the project, it is now up to Enbridge

B.C. residents aren’t 100 per cent sold on the project either.

to meet the conditions set out by the JRP. If and when it can

West Coast Environmental Law points to survey results that

manage to do that, Canadians will be but one step closer to

indicate the majority of British Columbians support legisla-

the realization of a significant project that may forever change

tion in line with the First Nations ban.

the face of the Canadian oil export market. S B.C. Oil & Gas Report • 2014

25

The role of natural gas in reducing global GHG emissions

By Dave Collyer

A

realistic approach to meaningful reductions in global greenhouse gas emissions is to gradually shift the energy mix in countries that emit a large part of the world’s carbon emissions to less GHG-intensive fuel sources.

This can be particularly effective in developing countries, whose CO2 emissions are surpassing those of developing countries and are growing at a faster rate.

Natural gas is ideally suited for this purpose: it is the cleanestburning hydrocarbon, and it produces electricity more efficiently than coal and more reliably than intermittent energy sources such as wind and solar. For example, due to wider use of natural gas in the United States, CO2 emissions are stable or declining.

China, which primarily relies on coal for electricity generation, outstripped the U.S. as the world’s largest CO2 emitter in 2007, with emissions rising an average 2.1 per cent a year, according to the U.S. EIA.

British Columbia, because of its abundant natural gas resources and proximity to Asia, is in a good position to become a supplier of responsibly produced natural gas to Asian markets. Realizing this vision requires that B.C. take a pragmatic approach to economic growth and environmental performance.

Let’s start with a global reality check.

Global demand for all forms of energy, including renewables, is growing rapidly. Hydrocarbons, however, will continue to be the dominant source of supply for the world’s energy needs.

The International Energy Agency (IEA) forecasts that in 2035, hydrocarbons’ share in the global energy mix will be 76 per cent, down only slightly from current levels.

That same IEA forecast projects global demand of natural gas will increase 48 per cent by 2035, driven primarily by countries such as China as their economies grow and standards of living improve. Our collective challenge, therefore, is to determine

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how we will help meet this global demand and, at the same time, seek to reduce greenhouse gas intensity of natural gas production, transportation and use.

Western Canada, especially B.C., has vast natural gas reserves – enough to both satisfy domestic demand and help meet growing global demand.

This is an opportunity for B.C. to provide a global net benefit from an environmental perspective by helping to displace more carbon-intensive fuel sources for power generation in rapidly growing nations in Asia.

Natural gas, used in power generation, emits about 50 per cent fewer greenhouse gases than coal and far fewer smog-causing air pollutants. China is suffering from significant air-quality issues caused in large part by the use of coal for heat and power generation.

This is why the Chinese government is trying to reduce its reliance on coal and has prioritized the use of natural gas-fired power plants. As a result, Chinese natural gas demand is increasing rapidly.

Natural gas from Canada and other sources will help China and other Asian economies reduce their reliance on coal for industrial and residential power generation, and in aggregate will

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lower global GHG emissions and provide air-quality benefits.

The opportunity to export natural gas to Asia exists now, as customers are trying to secure long-term contracts from reliable suppliers. To participate in the increasingly competitive global LNG market, we must be cost-competitive and ensure we develop LNG and supporting natural gas reserves responsibly.

Industry broadly agrees with the goal of competing on a GHG-intensity basis with other natural gas suppliers to the Asian market. Doing so will require industry to focus on improvements in GHG intensity across the full value chain: upstream production, transportation and downstream liquefaction.

B.C. and Alberta regulate flaring, venting and fugitive emissions from upstream facilities. For example, venting of methane from well drilling and completions is not permitted in B.C. or Alberta, and leak detection and repair programs are a regulated requirement in both provinces. These regulations serve as models for other jurisdictions as examples of how to do it right.

Further electrification of upstream production facilities also has the potential to mitigate growth in GHG emissions.

In addition, industry and the governments of Alberta and B.C. are looking at the feasibility of carbon capture and storage to further reduce emissions from the sector.

We must also be pragmatic about fuel sources for B.C.’s proposed LNG facilities. Wind and solar are unlikely to have either the scale or reliability to provide base-load power for most facilities, and the availability of competitively priced electric power for facilities in northwestern B.C. is by no means assured.

For those reasons, we believe the B.C. government made the right decision when it authorized the use of natural gas for power generation for LNG facilities.

West Coast LNG facilities would also be the only LNG facilities in North America that are subject to a carbon tax. We encourage the B.C. government to invest a portion of this tax in innovation and technology development to further reduce carbon emissions in the LNG sector.

We must always keep a close eye on the overall competitiveness of the industry in B.C., including GHG emissions intensity.

At the same time, we need to think beyond the borders of B.C. and recognize the opportunity to use natural gas globally to reduce GHG emissions and improve air quality.

LNG is a global industry and British Columbians should assess the economic and environmental dimensions of the LNG opportunity in a global competitiveness and environmental performance context. This will largely determine the ultimate success of the LNG industry in B.C. and is a reasonable and pragmatic approach to global leadership.

Dave Collyer is the president and CEO of the Canadian Association of Petroleum Producers (CAPP). S

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B.C. LNG development offers great potential, but thorny issues remain to be resolved

By Leonard Melman

S

eldom has any issue divided British Columbians to the extent of the entire Liquefied Natural Gas (LNG) controversy. As the year 2014 has progressed, two distinct sides have emerged.

One side has consistently advocated in favour of the enormous economic benefits which might accrue from LNG development. In fact, Premier Christy Clark made social gains from potential revenues from LNG production and distribution one of the central planks of her re-election campaign of 2013. According to one study by the B.C. Ministry of Mines, Energy and Natural Gas conducted during 2013, potential revenues to the Government of British Columbia could amount to between $130 billion and $180 during a 20-year production period from 2018-2038. Aside from government revenues, economists also pointed to

significant job creation and other economic benefits down the road.

As international industrial production combined with advanced urbanization and infrastructure expansion has progressed, so also has the demand been growing for all forms of energy.

This situation is particularly acute in Asia where energy demands are rising most rapidly, but where there are few natural sources of fossil fuels, particularly including natural gas.

Unfortunately, this has led to another difficulty: most sources of natural gas are located in regions far removed from Asian markets, making pipeline transportation virtually impossible, except for potential Russian sources which might eventually use pipelines to reach Asian markets. This leaves liquefaction of natural gas from abundant other sources for subsequent transshipment to high-demand areas

as one of the remaining workable solutions.

As it applies to British Columbia, natural gas would have to be transported to terminal facilities where it would be converted into liquefied form and loaded onto ocean transport vessels for shipment to Asian markets, where it would be re-constituted back into its original form.

The other side includes powerful opposition forces pointing out a litany of possible environmental, safety, and aboriginal difficulties which they predict would accompany the proposed projects if they are ever undertaken.

Environmentalist groups have demanded further environmental studies on several subjects including potential spills from the many hundreds of vessels expected to ply the waters off the central and northern B.C. coasts if full production goals are reached. They

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also point to the potential damage to marine life due to increased usage of seawater in the LNG production process, which would alter the balance of sensitive marine ecosystems. In addition, concerns have been raised about degradation of air quality due to possible leakage of condensed LNG into the atmosphere.

Several important safety concerns relating to the volatility of LNG once it has been loaded onto ocean-going vessels have also been advanced. Fears of major explosions have led to the suggestion of safety “buffer zones” separating LNG shipping from other conventional uses of B.C. waterways.

First Nations concerns have centered to date on possible environmental threats to their special way of life, as well as proper consultation throughout public hearings regarding the approval and permitting processes.

Five projects are now at various stages of pre-development, including Woodfibre Natural Gas Ltd.’s “Woodfibre LNG Project” near Squamish, B.C.; Malaysia-based Petronas’ “Pacific Northwest LNG” near Prince Rupert; Shell-Canada Energy-led “LNG Canada” project near Kitimat; BG Group PLC’s “Prince Rupert LNG” project, and the “Kitimat LNG” project, coowned by the Canadian units of Chevron and Apache corporations.

Given the important nature of these ongoing concerns and the important economic potential of LNG development, the province has sponsored a series of conferences bringing together participants representing potential production project developers, aboriginal and environmental leaders, plus government representatives. The first such conference took place in 2013 and the second occurred in Vancouver from May 21-23, 2014. A third and final one is presently scheduled for Vancouver in October 2015.

Economic discussions were a feature of the second conference. Major topics included the total potential worldwide market for LNG, growing international competition to satisfy that market, and special attention was paid to the announcement – probably timed for the conference – of Russia’s major supply deal with China, which many participants believed could be a devastating blow to British Columbia’s plans for LNG participation, a position with which the premier strongly disagreed.

According to the International Energy Agency, demand for LNG is expected to grow by an average of about seven per cent per year from a present 300 million tonnes LNG per year in 2014 to an estimated 500 million tonnes by 2030. The biggest question is who will supply that demand and Canada is hardly the only participant seeking markets within that projected growth. Other countries active in the field include the USA, Australia, Mozambique, Tanzania and Russia, and several of those nations enjoy closer proximity to giant Asian markets than Canada.

Strangely enough, it was the tensions brought about by the Russian incursion into the Crimean in April 2014 that brought about the mammoth Russia-China Natural Gas deal announced on May 21, 2014. As Russia faced reprisals by several European nations for those incursions, they quickly sought out alternative markets for their abundant natural gas reserves and the China deal was a direct result.

According to that transaction, Russia will transport 38 billion cubic metres of Siberian gas per year via pipeline – a much more safe and cost-efficient method than trans-oceanic shipment of LNG – beginning in 2018 and lasting for 30 years.

The deal threatens to undercut demand for North American LNG and also threatens the price structure which would have supported the planned North American production operations.

In summary, LNG development could be of vital importance to British Columbia’s economic future, but several important questions have yet to be resolved as of early summer 2014. S

B.C. Oil & Gas Report • 2014

31

Northern Gateway – A path forward with First Nations and Metis communities

By Catherine Pennington

T

he role First Nations and Metis communities must play in important decisions about natural resource development and economic infrastructure is central to an ongoing discussion about the future of our country.

The recent Supreme Court decision in the Tsilhqot’in case brought this discussion into even sharper focus by reaffirming through a declaration of aboriginal title, the requirement for government and resource companies to engage in meaningful consultation, and to foster long-term and mutually beneficial relationships with aboriginal communities.

Much of the discussion generated from the decision is focused on whether, and to what degree, proposed resource development projects now might be in jeopardy. And these are valid questions and concerns, but from my perspective, sustainable and environmentally sound development can best occur through true partnerships with aboriginal communities.

I think it is important to understand what is at the heart of this discussion – a concern that aboriginal communities will use title to block development. As a Metis woman working in the resource sector, I have long understood that aboriginal communities do not want to block development as a matter of principle.

Rather, First Nation and Metis communities want a say in what happens in, and what directly effects, their communities. They want to know projects are environmentally sound. And they rightfully want a share of the economic benefits.

For industry, this means taking a profoundly different approach than has been taken in the past. As the lead of community benefits and sustainability

32 B.C. Oil & Gas Report • 2014

at Northern Gateway Pipelines, I am already seeing this kind of relationshipbuilding at work.

Northern Gateway understands the critical role aboriginal communities play in the success of our project. We strongly believe in the power of respectful discussion – that legislation and court rulings should absolutely be the last refuge of negotiation.

A priority for Northern Gateway is to build lasting partnerships with First Nations and aboriginal communities along the proposed pipeline route.

Yes, there have been mistakes along the way. And our work is far from finished. But we have made lasting and meaningful progress. Years of meaningful discussion and hard work have resulted in one of the energy sector’s most comprehensive benefit packages in Canadian history. Northern Gateway’s unique approach offers First Nations and aboriginal communities ownership in a major Canadian energy project. We have gone further than consultation by seeking partnerships with First Nations communities as owners giving them seats of influence to fully participate in decisions relating to the project. Our project is a new way of doing business and will set a precedent across Canada for collaborative partnerships between First Nations and Metis communities, and the resource industry.

The community is the expert, and as the stewards of their own futures, communities know the challenges they face and how to meet them better than anyone else. As owners of this project, Northern Gateway will bring long-term financial dividends, jobs, economic development opportunities, community development, and educational opportunities to aboriginal equity partner com-

munities. As well, First Nations and aboriginal communities will have a direct role in the environmental protection of lands along the right of way and in marine operations.

For example, as a result of our unique approach we have been actively providing skills training to more than 2,000 people – many of them aboriginal even before a shovel has even been put into the ground. Aboriginal-owned businesses are applying in strong numbers for construction and service contracts.

And critical resources are being directed to programs and services that can make a real and lasting difference.

The Supreme Court of Canada’s decision in the Tsilhqot’in case recognized title in law but really underscored what Northern Gateway has come to understand in practice: In today’s Canada, both government and industry have a higher economic and social responsibility to the communities we work in and serve.

At Northern Gateway, we accept and recognize the rights of First Nations and aboriginal peoples. We recognize we have much more to do with First Nations and aboriginal communities. We have learned we must be open to change.

This process cannot be forced and we will take as much time as is needed.

We share a deep belief that Northern Gateway will provide a positive economic impact for aboriginal peoples for generations to come, while safeguarding the environment. We look forward to continuing our work with these communities on our shared hopes for a better, more prosperous future.

Catherine Pennington is the senior manager of community benefits and sustainability for Northern Gateway. She lives and works in Prince George, British Columbia. S

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Drilling in 2014 puts Nexen in great shape for next year in northeastern B.C.’s Cordova basin

Nexen’s drilling team finishes ahead of schedule with no HSE&SR incidents

Nexen’s Cordova drilling team completes a three-well pad with no injuries, environmental incidents or regulatory compliance issues.

N

exen – a CNOOC Limited company – and our joint-venture partner INPEX Gas British Columbia Ltd., have wrapped up a highly successful drilling season in the Cordova basin in northeastern British Columbia.

With no injuries, environmental incidents or regulatory compliance issues, the project – a three-well pad – was a huge success.

The project began with the moving of a Nabors rig to Cordova from Dilly

Creek in early January 2014. Drilling set a new record for Cordova/Dilly Creek wells. Once the drilling team completed their tasks, the completions team took over. All work was finished before the end of March 2014. It was critical to keep to the schedule – or beat it – due to Cordova’s swampy conditions in non-winter seasons.

“The work done this winter puts us in great shape for next year,” says Bruce

Garland, Nexen’s manager, drilling & completions shale gas. “Completions will come in next winter and execute operations of their own to gain valuable reservoir information so that we can further understand the potential of the Cordova basin.

“We’re really proud of the Cordova team. They ticked off all the boxes, especially in safety, environment and regulatory categories.”

Cordova is adjacent to the Horn River Basin – one of the most prospective shale gas fields in North America – where Nexen began acquiring large blocks of high-quality acreage in 2006.

In 2010, Nexen purchased more land in the nearby Cordova and Liard basins, bringing its total land position to approximately 300,000 acres growth.

The calibre of Nexen’s resource base and operating expertise were underscored by the joint-venture agreement announced in 2011 with a consortium led by INPEX Corporation of Japan.

Third-party evaluators have estimated that Nexen’s joint-venture lands in the Horn River and Cordova basins hold between four trillion and 15-trillion cubic feet of recoverable contingent resources, and the Liard joint-venture lands contain an estimated five to 23 trillion cubic feet of prospective resources. S

We’re really proud of the Cordova team. They ticked off all the boxes, especially in safety, environment and regulatory categories.

34 B.C. Oil & Gas Report • 2014

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Encana going saline to reduce surface water use

A

s Encana increases its level of development in the Dawson Creek region, responsible water use and sourcing are critical components for the company to fully realize the potential of British Columbia’s portion of the Montney resource play.

Water management approaches tailored for specific operating areas have long been at the heart of Encana’s stewardship philosophy and reflect an enterprise-wide mandate of continuous improvement. To this end, the company seeks innovative solutions and technologies to decrease its reliance on surface water sources wherever possible.

This commitment has taken on different forms throughout Encana’s operations; namely through, where feasible, such approaches as reuse, accessing wastewater, and tapping into saline sources that are unfit for typical human or agricultural use.

The latter option informs the company’s Water Resource Hub (WRH) facility located in the Cutbank Ridge area of Encana’s Montney operations. Scheduled to be completed by the end of 2014, the WRH is expected to meet 50 to 75 per cent of Encana’s water needs in the Dawson Creek area – significantly reducing the company’s reliance on surface water by replacing it with otherwise unusable water from a subsurface aquifer. In doing so, the project’s unique distribution and return system will also substantially reduce water hauling truck traffic and associated emissions, noise, and dust.

“Water is a critical component of natural gas production and crucial for the continued success of our industry, both the upstream sector and the many jobs it provides, as well as for B.C. to realize its LNG export potential,” says Richard Dunn, Encana’s vice-president, government relations Canada. “A facility such as the Water Resource Hub demonstrates our commitment to always seeking alternative sources to surface water for our operations.”

Designed for a maximum intake of 50,000 barrels per day, the facility accesses saline water from the Paddy Cadotte aquifer located 1,000 metres below ground. Encana began the project by converting two pre-producing gas wells into saline source water wells – the debut pair of what is project-

36 B.C. Oil & Gas Report • 2014

ed to be up to 20 source wells. The unusable water flows via pipeline network to the WRH. It is then filtered, stored and pumped through other pipelines to new well sites for use in hydraulic fracturing – and this is where the cycle begins anew.

In what is an innovative recycle and reuse loop, the flowback water returned from the formation after completions operations will be pipelined back to the central point of the WRH. Hydraulic fracturing water returns are then blended at the site with the saline source water and/or produced water and thereafter redistributed for use. This step further reduces Encana’s dependence on surface water.

The WRH is but one example of Encana’s innovative use of saline water in its operations. In the Horn River Basin of Northeastern B.C. Encana teamed up with Apache in 2010 to tap into the Debolt formation, an underground non-potable aquifer with water similarly too saline or salty for human or agriculture use. The formation and its associated water treatment plant ultimately provided about 98 per cent of the water needed for both companies’ hydraulic fracturing operations in the Two Island Lake area of the play.

In addition, Encana last year began the development of an unutilized water source project in the Pipestone area west of Grande Prairie, Alberta. This endeavour also targets a nonpotable subsurface source in the Cardium formation and long-term plans include the transport of this water through a pipeline network to lined pits planned for the area.

“Each of our operating areas has its own unique geology and hydrology,” says Dunn. “The Water Resource Hub is a great example of how we fine-tune our water management approaches according to the specifics of each area in which we operate. Protecting and efficiently using water is crucial to the continued success of our business and the vitality of our operating communities. Using water as responsibly as possible, while seeking alternate saline or non-potable sources, represents a win-win from both an environmental and an economic perspective.” S

Water Portal adds to B.C.’s online water information

R

egulating water used by the oil and gas industry is a key priority for the BC Oil and Gas Commission, and 2014 saw a new tool launched that adds to the commission’s extensive online information.

The new Water Portal was completed in partnership with the B.C. Ministry of Forests, Lands and Natural Resource Operations, Geoscience BC, and the Science and Community Environmental Knowledge Fund. It provides public access to a wide range of water-related data and information in northeast B.C, including streamflow information, climate information, groundwater quality data, and observation well data. The mapbased tool allows users to search provincial information stations related to surface water, groundwater and climate.

“The Water Portal is another valuable tool developed by the commission and its partner agencies to enhance water knowledge and water information for us, industry, First Nations, and the general public,” says Allan Chapman, commission hydrologist. “The development of the Water Portal reflects our commitment to providing public access to critical information desired by a range of stakeholders. The commission’s website really has become an excellent source for information on water resources and water use in B.C. as it relates to the oil and gas industry.”

Specifically, the water-related data and information includes: • Streamflow information collected by the Water Survey of Canada (and others, such as the Horn River Basin Producers Group).

• Climate information collected by Environment Canada, Ministry of Transportation (road weather), Ministry of Forests, Lands and Natural Resource Operations (fire weather), BC Hydro, and others.

• Ministry of Environment observation well data.

• Groundwater quality data (from Northern Health, Ministry of Environment, and others).

• Data collected as a permit requirement from the commission, or through investigations (streamflow, water quality).

• Various water data collected by government that is contained in the Provincial Environmental Monitoring System database.

Other water information available on the commission’s website includes the Northeast Water Tool, which is map-based and allows users to search active Section 8 permits and water licences, as well as streamflow data for the northeast, and quarterly and annual water reports that contain data on water used for oil and gas activities.

Data from the 2013 Annual Report on Water Use for Oil and Gas Activities shows water used for hydraulic fracturing was nearly

Water is used for a number of purposes for oil and gas activities, such as drilling wells, washing machinery, dust control and freezing ice roads. two-million cubic metres (m3) less than in 2012 (5.3 million m3 and 7.1 million m3 respectively). Despite 14 more wells being hydraulically fractured in 2013 at 433, the majority were in the Montney play, where the geology requires less water for a formation to be fractured.

Water is used for a number of purposes for oil and gas activities, such as drilling wells, washing machinery, dust control and freezing ice roads. The largest use is for the process of hydraulic fracturing, wherein water is injected underground at high enough pressures to fracture natural gas bearing rocks.

The Water Portal, Northeast Water Tool, and water reports are all available on the commission’s website at www.bcogc.ca. S

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Crafting a bright new future for Canada’s energy exports

P

rogress Energy Canada Ltd., a leader in Canadian natural gas development, is one of the most active

drillers in the country. Producing more than 350 million cubic feet of natural gas per day, Progress serves Canadian markets while ambitiously expanding production capacity in preparation for the opening of new liquefied natural gas (LNG) markets in Asia.

British Columbia’s’ government has its sights set on a thriving LNG industry in the province and Progress is a key piece of the equation. Progress’ parent company PETRONAS, a global leader in LNG, is also the owner of Progress’ sister company, Pacific Northwest LNG (PNWLNG), which is planning to build a world-scale

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38 B.C. Oil & Gas Report • 2014

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This project has the resource, the pipeline, the LNG expertise and the market – it’s the total package.

LNG export facility on Canada’s west coast in Port Edward near Prince Rupert, British Columbia. Progress will supply the gas to the PNWLNG terminal at a volume of two billion cubic feet per day to be shipped and supplied to markets in Asia.

PETRONAS is working towards making a final investment decision on the project by the end of 2014 with the first gas shipment expected beginning of 2019, creating thousands of jobs, billions in economic activity, and clean fuel for some of the largest populations on the planet.

In anticipation of a positive final investment decision, Progress is ramping up activity to identify natural gas reserves. The company has set a target of 15 trillion cubic feet in reserves by Q4 2014. Already halfway there, Progress operated 28 rigs in the Montney in Northeastern British Columbia this past winter. This activity alone created approximately 3,500 direct and indirect jobs for Canadians. Additionally, Progress has invested more than $280 million into British Columbia’s economy this year alone through its resource extraction activities. Total direct spending on this project is expected to be $36 billion.

There are more than a dozen competing projects with aspirations to export LNG to Asian markets, however, Progress has been working diligently to form partnerships that gives it an advantage

in meeting its objectives. PETRONAS and Progress have entered into a joint venture with four partners who will each take a portion of the exported gas for their local markets. PETRONAS (62 per cent), JAPEX (10 per cent), PetroleumBrunei (three per cent), IndianOil (10 per cent) and China’s Sinopec (15 per cent) are part of the North Montney Joint Venture.

Progress has secured an agreement from TransCanada Corporate to both extend its NOVA Gas Transmission system into the North Montney region, and also to build an 850 to 900-kilometre pipeline to deliver North Montney gas to Prince Rupert on the west coast of British Columbia.

This project has the resource, the pipeline, the LNG expertise and the market – it’s the total package. S

A leader in Canadian natural gas development, Progress Energy is building upon its history of performance excellence in North America to pioneer new infrastructure to deliver liquefied natural gas to Pacific Rim markets.

Together with Pacific NorthWest LNG, Progress is helping craft a bright new future for Canada’s energy exports.

To learn more visit ProgressEnergy.com

Canadian EnErgy. global rEaCh.

B.C. Oil & Gas Report • 2014

39

Fueling the future

Energy Services BC actively advocates province’s service sector

By Jillian Mitchell

B

ritish Columbia’s Energy Services BC (ESBC) has created an environment where businesses want to be, today and for years to come. Their secret? A three-fold approach built on advocacy, education, and relationshipbuilding.

As the voice of B.C.’s oil and gas service sector for over 35 years, the non-profit association has been well established as a service sector resource for members, explorers and producers (E&Ps), as well as the community. In fact, the multi-region association has a reputation for remaining abreast of natural gas activities, while concurrently working to increase industry benefits for all British Columbians, including their 250-plus members.

Advocate Member advocacy is integral to the service sector association, and as such, they continue to market the capacity of the province’s service sector, promoting members to E&Ps with projects in B.C. “Our member companies are amongst the longest established within the Peace Region service sector,” affirms Art Jarvis, executive director at Energy Services BC, citing that the association facilitates much capacity development and networking opportunities on their behalf.

Add to that, ESBC is a superior advocate of the province in which they live and work. A prime example, the criteria for membership speaks well to this idea – to acquire membership with ESBC, members must have a presence in B.C., hire B.C. residents, and maintain an office and/or operations in the province.

Indeed, the province is vast with opportunity in the service sector, and yet the 40 B.C. Oil & Gas Report • 2014

sector has many challenges, including a limited understanding of E&Ps procurement processes. An integral focus for ESBC, therefore, is relationship-building with E&Ps, particularly those who are Alberta-based and view the cost of the B.C. service sector as a challenge (among the limited information about B.C. service sector and gaps in service needs).

Subsequently, ESBC maintains constant contact with Alberta-based E&Ps to address the following key issues brought forward by the local service sector: • Identifying potential suppliers • Service sector companies’ safety concerns • Increasing opportunities with aboriginals and First Nations Educate Participation in energy expos remains at the top of the ESBC to-do list. As such, the team retains a regular appearance at the many national and provincial expos.

Of the recent B.C. expo, Jarvis offers, “The greatest value at our expo was the presentations by Donny Van Dyke (Northern Gateway), Bill Gwozd (Ziff Energy), Bob Zimmer (M.P.) and Pat Pimm (MLA). These people informed and impressed hundreds of service sector personnel in the show’s two days.”

The ESBC website, of course, is one more way in which the association promotes education and communication amongst community and ESBC members, alike. The user-friendly website features industry-related events, periodic newsflashes, job postings and a member directory, among other features, to

keep the service sector community informed and engaged.

In addition to determining and relaying E&P procurement processes to membership, the association offers marketing resources for service sector companies through website advertising, and assists service sector companies with labour and training issues.

Strengthen For ESBC, the strengthen pillar is three-fold: strengthen relationships with members; identify B.C. service sector companies, and promote said companies to E&Ps; and finally, identify and build relationships with E&Ps who operate in B.C. and Alberta.

“Our goal is to strengthen our role as the voice of the B.C. service and supply companies,” says Art Jarvis, ESBC executive director. “We aim to promote the growth and development of these companies, as well as to increase the utilization of B.C. service and supply companies.”

To this point, the following relationship building blocks have been developed: • Develop a shared vision • Address each other’s expectations • Identify each other’s strengths • Support each other’s limitations • Set goals • Ensure quick resolve to disputes • Define roles and responsibilities • Develop a communications strategy For more information on Energy Services BC, please contact Art Jarvis at art@energyservicesbc.org or visit the ESBC official website, http://www.energyservicesbc.org/ S

Will the China-Russia natural gas deal sink British Columbia’s LNG dreams?

By Jay Roberge

I

n May 2014, Chinese president Xi Jiping and Russian president Vladimir Putin announced a 30-year energy agreement worth an estimated $400 billion that will deliver 38 billion cubic metres of natural gas to China starting in 2018. It is an energy coup for China who secures natural gas supplies to fuel future economic growth, and ends an energy courtship that many thought would never produce a final agreement. In past articles in the B.C. Oil & Gas Report, I have written about how natural gas is having a major geopolitical impact on the world and fundamentally changing the energy mix as it emerges to become the most important energy source over the next century.

Some analysts speculate that this massive China-Russian deal will have a major negative impact on British Columbia and Canada and sink Prime Minister Harper’s plans for Canada to become a global energy superpower and sink Premier Christie Clark’s plans for B.C. to become a major global LNG exporter. The theory being that natural gas from Siberia will be provided to China at deep discounts to current prices in Asia. However, at this point no one really knows the price that was agreed to between China and Russia. For years, the two countries have struggled to put a deal together. Russia has not wanted to sell at a price lower then it demanded from Europe – their biggest customer; and China did not want to pay a higher price then what it pays Turkmenistan – its biggest supplier. Some simple calculations on the $400 billion deal have the price at about $350 per thousand cubic metres, which is believed to be close to the price China paid Turkmenistan for natural gas last year.

Like Russia, Canada has vast energy resources, and natural gas is a major contributor to the Canadian economy.

It’s in Canada’s national and economic interest to ensure that the country has the capability to export energy to the international market. It’s not just a question of the economic benefit of creating much-needed jobs, as much as it is a question of strengthening an industry for the long term with diversified distribution. But while we take our time to debate issues that need to be resolved, the rest of the competitive international market is building infrastructure, making commitments, and signing longterm energy agreements. They are doing so by addressing the same concerns we have, but doing so based on the latest available facts and in a timely, efficient manner and in the process validating the increasingly important role of natural gas in the global energy market.

Under the current situation, Canada only has one customer – the United States –which used to be the largest buyer of Canadian natural gas. New technologies unlocked vast amounts of natural gas trapped in shale rock formations in Canada and the U.S. The end result was the U.S. went from being our largest customer to being our largest potential competitor. The U.S. is seizing the opportunity by constructing their own capacity to export Liquid Natural Gas (LNG). On June 19, the Federal Energy Regulatory Commission voted unanimously to let Sempra’s Cameron LNG project in Louisiana move forward.

Sempra said it plans to start building the estimated $9 billion to $10 billion terminal later this year – the second such facility to receive U.S. government approval.

Vast North American supply, lower production costs and extensive North American pipeline distribution systems dictate lower natural gas prices in North America compared to the prices in Asia, which can be four times higher.

Producers can contract a higher price in Asia and make a better profit margin by producing in North America and selling into the Asian market. This international distribution requires pipeline capacity and LNG export facilities to allow Canada to sell into the global market and simply make a higher margin for their product even after considering seaborne shipping costs.

Perhaps there is the outside chance that the U.S. will import natural gas from Canada in order to simply support their domestic needs and add to their own export capacity through Louisiana, which will capture a market that Canada should service directly. In other words, with only one distribution point to the south, Canada continues to simply be a part of the U.S. supply calculation – part of the overall U.S. inventory, which would run in surplus support exports that are refined and converted to LNG in the U.S. and sold at a higher price on the global market by the Americans. A surplus will dictate very low prices, and with no international export capacity in B.C., Canada will remain beholden to North American pricing, dictated by the Americans – like it is now. The same goes for oil. Currently, the U.S. dictates the price. Canada gets a price dictated

by America rather then a global price because it is sold to the lowest bidder – the only bidder – the USA. This is not a negative against the U.S. You would do the same thing if you knew you were the only buyer. It’s a negative shot against B.C. Oil & Gas Report • 2014

41

Canada and its citizens for poorly managing our natural resources and not being able to efficiently and effectively address the various concerns from various groups and move forward with construction. A weak natural gas market will have far-reaching economic impact on Canada and declining industry revenues that will impact Canadian social programs.

What is the likely impact of the Chinese-Russian gas deal for Canada and B.C.? Some analysts believe the ChinaRussia deal will make Canada’s oil and gas industry non-competitive and unable to deliver a product to the global market at a competitive price, and that Canada should cut bait and forget about moving forward with building our LNG export capacity. Such a view is shortsited and will ensure the slow-death of a critical industry in Canada. Let’s not

42 B.C. Oil & Gas Report • 2014

take our eyes off of the long-term objective and the critical importance of diversified distribution capabilities and the growing global demand for energy.

China is not the only customer that Canadian LNG exports are targeting. Korea and Japan are major target markets and have also been making major commitments to B.C.’s LNG industry.

The capital considerations are substantial. But the economic consideration is not a simple exercise of taking the latest deal, or piece of news and doing some linear extrapolation. LNG export capacity is long-term planning for an important industry to Canada and is about having diversified distribution for a commodity that is of increasing global importance in the global energy mix. For the Canadian and British Columbian natural gas market, this means having the pipeline capacity and LNG

facilities in place to open Canada’s natural gas to a global market and global pricing.

The more likely factor to scare away investment commitments to LNG projects in Canada are labour concerns. Provincial workforce projections reviewed

by Reuters show that the province could face a shortage of nearly 12,000 skilled workers to staff the most in-demand trade jobs at peak LNG construction.

The B.C. government has promised to provide the training and having education programs focus on engineering and construction skills rather then other areas. A successful educational transition will likely still require support from the import of foreign workers, which has suffered a set back in recent months in Canada.

Regardless, the easiest way to lose a game is to quit. Canada and British Columbia cannot afford to pull up the tent pegs and quit because of the short-sited view of the real impact of the ChinaRussia deal, or because someone believes Canadians cannot compete. Without the pipelines to the coast of B.C., we will remain beholden to the United States and the prices they dictate for our product, and we will never compete in a global market. The sooner we get people trained and facilities built, the better.

Why would China do this deal with Russia? China has perhaps the world’s largest reserves of shale gas on the planet, far exceeding the reserves of the United States. China has some technical challenges in extracting domestic shale gas, but more importantly, China – more then anyone – understands the long-term value of resources, and as a culture, has always planned for the long term and for future generations. Energy is a priority, but for the first time, President Xi Jiping has put the environment in the central government’s five-year plan priorities as well. China recognizes the importance of natural gas as a lower

a diversified distributing system, Can-

erage, especially when the world moves

ada and British Columbia must keep

from subsidized growth to real global

their eye on the long-term outlook and

growth.

not make decisions based on the latest

Natural resources are valuable com-

headline news alone. Canada and other

modities that need to be managed and

western societies have allowed their de-

not squandered at low prices. Canada

cisions to be driven by today’s news and

is blessed with vast resources that far

the daily stock market numbers, rather

exceed our domestic requirements.

then taking a long-term view on invest-

Canada should increase its own domes-

ment and planning. Today’s news may

tic use of natural gas, and as a global

impact the daily or short-term trading

citizen, continue to offer surplus re-

of commodities, but should not cloud

sources to other countries that do not

our vision for seeing the macro trend

have sufficient domestic supply. In or-

of a growing population and growing

der to get the best price for these val-

demand for energy. A temporary slow

ued resources, Canada and B.C. need to

down in major markets like China and

have the capability to deliver that prod-

India only matters to the short-term

uct to a global market and not just one

trade and does not mean the demand or

customer. Pipeline capacity and LNG

importance of natural gas, oil and coal

export facilities must be completed in

is over. Markets cycle up and down, but

order to do so and to ensure a stronger

the overall trend is that demand and

Canadian natural gas industry for gen-

prices for energy will go higher on av-

erations to come. S

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carbon emission advantage of natural gas and is looking to make natural gas a bigger part of the country’s overall energy mix. That natural gas, nuclear, and other non-coal resources of energy are taking up a greater percentage of their energy mix. Bottom line is that China recognizes the long-term importance of natural gas for China’s energy needs and environmental wellbeing. They are buying energy security, not supply, and complementing this with investments into other energy sources and technologies.

If analysts can do one linear extrapolation of data, it is the real fact that the world’s population will continue to grow. The continued global growth of the planet will dictate increasing demand for energy that can only be met with all available sources, including natural gas, coal, wind, solar, etc. Russia will not meet all of China’s energy needs, nor will it fully displace other suppliers like Turkmenistan, or potential future suppliers like Canada. Unlike many countries, China is planning and buying for the future of their country.

Evolving technology will continue to improve both the environmental impact on all resources, while increasing their efficiency. And, natural gas will play an increasingly important role in the overall global energy mix, resulting in higher global demand over the long term as natural gas is used more in transportation and power generation worldwide.

Add to this the fact that the global economy is still in a state of subsidized growth with cheap capital provided by loose monetary and fiscal policy. The global economy is still recovering, and one day will return to real global growth (and inflation). The question becomes, when we return to real global growth, will the demand and price for commodities go up or down? The answer is up.

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43

Shift. Build. Grow.

B.C. on the cusp

Dean Baumeister, manager/co-owner, and Will Debolt, technician, at Dalco Parts & Service, Fort St. John. (Photo credit: Dave Silver Photography / BCCA).

O

n June 17, the federal government announced its agreement to let Enbridge build its Northern Gateway pipeline, subject to 209 conditions recommended by the National Energy Board and further talks with aboriginal communities. This moves Enbridge one-step closer to getting access to the Pacific coast, and B.C.s construction sector one-step closer to major opportunity.

For some time, the BC Construction Association (BCCA) has challenged B.C. industry and government to grow the skills capacity to build a new industry amidst booming resource, industrial, commercial and residential construction sectors.

Light is beginning to shine. Both the federal and provincial governments have recognized the need for more

44 B.C. Oil & Gas Report • 2014

skilled tradespeople: the B.C. government released its Skills for Jobs Blueprint and began an overhaul of the Industry Training Authority. The federal government’s new Canada-BC Job Grant is forcing the country into a new model to support increased development of indemand skills in trades and technology.

The focus on demand side is correct, but requirement of increased employer contributions is misguided. We’ll see where it lands.

The BCCA will continue to advocate strongly on behalf of construction employers who already contribute significant resources to supporting apprentices and employees, as well as government tax coffers.

While the new federal and provincial plans rightly emphasize industry collaboration, data-based decision making

and accountability, until there is action, there is no outcome.

The BCCA focuses on three levers: demand-driven sourcing for skilled workers and apprentices from B.C., sourcing skilled, specialized journeypersons for roles which can’t be filled domestically, and the broader culture shift that is required to re-kindle interest in the trades in our children and youth – and their parents. There is progress on all fronts.

Demand-driven sourcing At home…

When direct connection is made to the demand side, jobs get filled. We’ve been operating the Skilled Trades Employment Program (STEP) this way since 2006, connecting over 8,000 British Columbians to skilled trades careers. We actively source non-traditional workers,

Aaron Smith, apprentice sheet metal worker.

[Photo: Dave Silver Photography / BCCA]

Both the federal and provincial governments have recognized the need for more skilled tradespeople.

and with 68 staff in the field making thousands of points of contact with employers each year, we are operating the most connected, successful, and effective HR program this industry has ever seen.

STEP specialists network via 13 offices around the province, including six in B.C.’s north. This program has no fee and there is no better resource for sourcing skilled labour and apprentices.

And away…

The BCCA also addresses the need for experience with our Foreign Skilled Workers B.C. service. Canadians are slowly beginning to recognize the critical difference between low-skilled hospitality jobs and the highly skilled, specialized jobs in the construction industry.

Each journeyperson opens the door for at least two Canadian apprentices and four-to-six entry-level Canadian workers. It’s important to get past the

emotional jargon and focus on the opportunity at hand – therefore, we help B.C. construction employers to source this expertise even when we’re not able to find it at home.

Cultural shift Even with a youth unemployment rate of 14.5 per cent, only about 1,400 B.C. high school graduates choose to enter the trades directly out of high school. To fill B.C.’s shortage, that number must be closer to 10,000 – 20 per cent of our grads, and a seven-fold increase over current rates, which started June 2014.

The B.C. government’s Skills for Jobs Blueprint aims to the number of B.C. students entering the in-demand trades at the right time. The program also identifies a greater need for industry collaboration and data, and increased support for post-secondary trades training – im-

portant keys to successful shifts in how British Columbians think about a future in the trades.

New York Times columnist Thomas Friedman wrote: “We have gone from the Iron Age to the Industrial Age to the Information Age to the Talent Age, and countries that make it easy to draw in human talent will have the advantage.”

As a society, we need to change how we are educating and motivating our youth. As employers, we need to think about our responsibility to our sector.

And as leaders, we need to stimulate a cultural shift that recognizes the value of the skilled trades.

It will take continued collaborative effort to successfully leverage the opportunities in front of us. Employers, universities, colleges, government, and industry are engaging each other in tough conversations about their collective future success: join in. S B.C. Oil & Gas Report • 2014

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Housing hiccups

Communities feel the crunch of temporary workers

By Melanie Franner Photos courtesy of the District of Kitimat.

T

he good news is that the economies of small, northern towns like Kitimat and Terrace are reap-

nity planning & development for the Dis-

and related pipelines. All projects have

trict of Kitimat. “We have almost enough

attracted additional workers and service

housing units for that population, espe-

providers to the area in anticipation of

ing the benefits that increased industry

cially with the construction that is antici-

the increased activity. It has also strained

brings. The bad news is that the housing

pated to occur this and next season.”

local housing markets.

markets in these areas are among the first

The hiccup in the mix is recent in-

“We started feeling the affects of a

to feel the onslaught of an abundance of

dustrial activity. The modernization of

shortage in temporary accommodation

workers and too few beds.

the Rio Tinto Alcan aluminum smelter

about two years ago,” adds Sewell. “It

“We’ve been a town of 12,500 peo-

in Kitimat has “stretched” housing re-

became more acute recently and has

ple before the present boom,” explains

sources in the area, as have the pro-

lessened somewhat over the last three to

Gwendolyn Sewell, director of commu-

posed KLNG and LNG Canada plants

four months.”

48 B.C. Oil & Gas Report • 2014

The ebb and flow Just as recently as October 2013, according to the Housing Facts 2014 report from the District of Kitimat, rental vacancy rates in town were as low as one per cent. The average value of a single-family dwelling hit $228,000 in 2014 – up from $152,082 in 2012 and $192,223 in 2013.

“The community is always abuzz with a number of different projects,” notes Shannon Dos Santos, sales representative, RE/MAX Kitimat Realty. “We see a lot of workers come and go. Some stay in town. Some stay in the camps. Some bring their families. Things are always

The modernization of the Rio Tinto Alcan aluminum smelter in Kitimat has “stretched” housing resources in the area, as have the proposed KLNG and LNG Canada plants and related pipelines. shifting. A couple of months ago, you couldn’t keep a bungalow on the market. You would get numerous bids on the same day and the house would sell for more than the asking price. Today, we have 55 properties available. Two months ago, we had maybe 11 homes and only two or three of them didn’t have conditional offers.”

Dos Santos estimates that housing prices have risen by more than 50 per cent over the last couple of years.

Kimberlee Ulmer, regional manager, Randall North Real Estate Services Inc., sees the same housing shortages occurring in nearby towns like Terrace and Prince Rupert. Ulmer oversees 140 rental units in the three vicinities. They include a mix of apartments, furnished and unfurnished townhouses, and detached homes.

B.C. Oil & Gas Report • 2014

49

A rental unit example of the properties managed by Randall North Real Estate Services Inc.

“As of May 1, we had 27 rental units available, although most of them had pending leases,” she states, adding that it’s based on the nature of the projects. “The jobs end and the workers go home. And then a new phase or new project starts and we get an influx of people.”

According to Ulmer, the town of Terrace has traditionally been a tighter rental market than Kitimat, although she adds that rental prices in Kitimat are typically 15 to 20 per cent higher than those in Terrace.

“We received 30 applications on an apartment that just came up in Terrace,” she says. “Demand for lower-priced units is still high.”

New accommodations Aside from the work camps being brought onboard by the contractors themselves (e.g. the renovated 600-bed cruise ship or “camp on water” as the locals refer to it, and the new Civeo/ PTI Group 2,000+ bed facility), the area’s towns are also experiencing a significant upturn in renovations and sales of existing residential houses.

“Before the main boom in Kitimat, there were a lot of vacant houses that had fallen into disrepair,” states Ulmer. “The housing demand has spurred renovation and a lot of these homes have now been fixed up and rented out.”

There is also a lot of new construction underway.

“We have experienced a lot of new-build projects,” states 50 B.C. Oil & Gas Report • 2014

Manual Leite, managing broker, RE/MAX Kitimat Realty. “We pre-sold a 36-unit complex fairly quickly. Some were corporate buyers, but most of the purchasers were investors.”

The days ahead The rapid rise in housing demand for small, northern towns like Kitimat, Terrace and Prince Rupert appears to have kickstarted a renovation and new construction boom that, for the most part, can handle the ebb and flow of workers moving in and out of the area – as new industry is announced and the need for required services increases.

At the same time, the companies themselves are recognizing the strain brought on by a quick influx of workers and are doing their part to help alleviate the housing shortage that inevitably arises. Be it a new townhouse development, a renovated cruise ship, or a new 2,000-plus bed work camp, the end game is a flexible and thriving community that can continue to adapt and reap the rewards of their growing local economies. S

From the ground up

Keeping B.C.’s workers safe

By Jillian Mitchell

S

afety is an inside job. At Enform, Canada’s safety association for the upstream oil and gas industry, it starts with one – one worker, one site, one company at a time.

For over 50 years, the not-for-profit safety association has worked to ensure that every worker in the oil and gas sector goes home safely, everyday. It’s a lofty vision, says Rick Newlove, manager of Enform’s B.C. operations, but one that the association is proud to take on.

“Our vision is to have no work-related incidents or injuries in the Canadian upstream oil and gas industry,” says Newlove.

“We want to try our best to accomplish that.”

Collaboration constitutes much of the Enform vision. In 2013, the safety advocate partnered with industry organizations to train more than 255,000 workers in health and safety practices. Of that, 165,000 were certified in the Enform flagship course H2S Alive. Through Enform’s Certificate of Recognition (COR) program, 2,900 companies received their COR certificate, enabling them to improve their health and safety

performance. Add to that, the association’s strategic alliances with six major industry associations allows for further enhancement of safety and training services in Canada’s oil and gas industry.

Established for industry by industry, Enform has become synonymous with safety. With locations in Calgary, Fort St. John, Nisku and Weyburn, the leading safety advocate is wellsituated for continuous improvement in health and safety practices, as they readily assist companies to achieve safety goals through practices, assessment, training, support, metrics, and communication.

“We’re a service-focused organization,” says Newlove. “We work very hard to understand our stakeholders and share the diverse health and safety challenges, and we also work with industry and government to merge industry expertise with the government legislation.”

Bringing industry experts together – that’s the Enform way.

In British Columbia, the team regularly invites speakers to B.C. Oil & Gas Report • 2014

51

We’re a service-focused organization.

Fort St. John to address member inquiries and hot industry topics, just one of the perks of the organization’s diverse training model. Complementary lunch and learns are also open to all industry participants.

“The speakers focus on issues that we experience in B.C. in particular,” he says. “Last year, we had speakers delivering topics on regulatory awareness, education on regulatory differences between the western provinces, new legalities around drug and alcohol testing, and featuring guest speakers such as WorkSafeBC.” Many investments have been made to ensure the association remains on the cutting edge of industry. Last year alone, a $3.7-million investment was made into the organization’s Nisku location, Canada’s main oil and gas training facility, in celebration of the facility’s 25th anniversary. The upgrade will meet current and future technological needs. Additionally, last year bore witness to the reinstatement of the B.C. Enform conference in Fort St. John, a subsidiary of Petroleum Safety Conference held in Banff, Alberta, each year.

As of late, Enform has recently secured an agreement with the three provincial Workers’ Compensation Boards (WCB) that provides important safety data relating to the three western provinces. The data, says Newlove, will help better inform future safety initiatives.

“We’re currently examining the data to determine potential focus areas and identifying safety trends in the industry,” he says. “From there, we can assess the best safety initiatives and programs that meet industry needs in the future.” S 52 B.C. Oil & Gas Report • 2014

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A new kind of gold

Prince Rupert LNG terminal proves a hotbed for entrepreneurs

By Jillian Mitchell

D

espite the proposed status of the natural gas-export terminal on B.C.’s Ridley Island, entrepreneurs by the hundreds have flocked to the city of Prince Rupert in hopes of harnessing the opportunity.

“We’re starting this population climb because of the LNG industry and when this huge spike in population comes, we will try to mitigate the effects,” says Paul Vendittelli, economic development officer, Prince Rupert and Port Edward EDC, citing that the rental of a cruise ship may be included in future plans to house workers.

Over the next four to five years, an estimated 4,000 workers will be required to construct the facility in Prince Rupert (population 13,000), and as the City confirms, priority will be given to local hires. Subsequently, to best prepare workers for procurement opportunities, a series of informative bootcamps have been hosted by the City in partnership 56 B.C. Oil & Gas Report • 2014

with the Northern Development Initiative Trust.

The 125-hectare (255 acre) site on Ridley Island was secured by the Prince Rupert Port Authority for the proposed $16-billion BG Group liquefied natural gas (LNG) facility due to its prime location, says Vendittelli.

“Geographically, Prince Rupert is a day and a half to two days closer to Asia than any other port on the western side of North America,” he says. “We’re the third naturally deepest port in the world and it’s an ice-free port; the shipping lanes are uncongested.”

With an anticipated start date of 2016, the Ridley Island LNG project will be developed in two phases: Phase 1 to include the construction of an LNG plant (comprised of two LNG processing trains, to start); Phase 2, the addition of the third LNG processing unit to achieve full processing capacity, as well as two ship-loading berth and associated port facilities.

Upon completion, the plant will have a total capacity of approximately 21 million tonnes of LNG per annum, which will be liquefied and exported to international markets. The first ship is projected to sail in 2021.

As of March 2014, Britain’s BG Group PLC was approved for an exporting license by the National Energy Board.

The company is currently seeking the required environmental assessment certificates and has recently partnered with Spectra Energy to jointly develop plans for a new natural gas transportation system from the Northeast B.C. to the proposed Prince Rupert LNG terminal.

“BG Group has not made a final investment decision,” says Vendittelli.

“We’re talking about a $10-14-billion project, so they have to do their due diligence. They’re working on all that right now and once they check all the boxes, they’ll make the final investment decision.” S

Horn River Basin Producers Group: B.C., the U.S. and global context

By Kathy Smith

D

avid Rushford is the chair of the Horn River Basin Producers Group (HRBPG) and senior vice-president and chief operating officer for Quicksilver Resources Canada.

We spoke with Rushford and discussed how the transport of natural gas from shale gas plays in Northeastern B.C. fares in relation to worldwide competition.

B.C. Oil and Gas: Mr. Rushford, where does Canada stand relative to the U.S. in terms of gas price recovery?

David Rushford (DR): When you look at the North American gas market, there’s been incredible growth in shale gas in the U.S. and Canada. However, in five years, the Marcellus gas play in the eastern United States has gone from zero to producing more than all of Canada, so that creates a cap on gas prices in North America. We are seeing a rebound in prices up over the last two years – we’re probably up 100 per cent from two years ago. That’s a combination of economic recovery in North America and worldwide, plus increased demand as a result of that. But we’re still setting natural gas production records south of the border, and that impacts prices domestically.

What direct effect do we see on the Canadian side of the border?

DR: We’ve actually seen quite an entrenchment in gas production in Canada – a bit of wet gas is being drilled now, but the dry gas isn’t. Conventional gas is at a standstill in B.C. and Alberta – we’ve seen volumes shrink, so that helps temper the demand side a bit.

How would you describe our link to the U.S. with their high level of gas production versus Canada’s lower levels right now?

David Rushford, chair of the Horn River Basin Producers Group.

DR: When you look at the gas business in North America, it’s a fully integrated business under the North American Free Trade Agreement, so there are no restrictions to gas trade. The pipeline networks, trading, and pricing mechanisms are fully integrated. What you see in one country, you’ll see a mirror image of in the other country. When you look at the gas market you really have to look at all of North America, you can’t just look at one country by itself.

How does the U.S. trade of large volumes of gas compare to the level of activity in the Horn River Basin, Liard Basin, and Cordova Embayment in Northeastern B.C.?

DR: Over the past six or seven years, the U.S. has gone from almost no shale gas production to 25 per cent of their gas production coming from shale plays.

When gas prices firm up, you see a flurry of drilling which moderates any price gains. The competitive challenge for B.C. is that the northeast is at the wrong end

of the pipeline in some cases. The way gas pricing works in North America is the closer you are to market, the higher the price you receive for your gas. In B.C. we’re just about as far from that market as you can get. So you have to discount the price by the amount transportation costs to get to those markets. A counter to that is if the United States market is Asia, they have to go through the Panama Canal, which costs considerably more than moving gas from the west coast of Canada to Asia – that is a very good competitive advantage for Canada.

Logistically, will the conversion of existing U.S. LNG import terminals into export terminals be more beneficial than the brandnew LNG export terminals planned for the coast of B.C.?

DR: For LNG, you have to look at whether it’s a stand-alone facility or an integrated facility. The cost for what we call ‘brown field’ projects in the U.S. to convert existing re-gas facilities to export facilities is much less than in Canada, but there’s a limited number that can be converted. Quite a few of them have received export permits from the U.S. government to non-free-trade countries.

One of the restrictions there when trying to export gas is whether it’s a country they have trade agreements with, so that hurdle has now been removed with the recent export permits.

When will the U.S. conversions of LNG plants be ready?

DR: Those will be the first ones that go, and they’re roughly timed for 2016.

Most are going to add several-billion cubic feet per day (bcfd) of additional demand capacity in North America, so that’s good.

B.C. Oil & Gas Report • 2014

57

For Northeastern B.C., specific to LNG plants that can utilize natural gas from the Horn River Basin, Liard Basin and Cordova Embayment, what are the main challenges for production?

DR: In the current gas price environment, the area is challenged economically, so you’ve seen a significant pullback of operations there. Encana is working on some of their joint-venture lands, Nexen has ongoing operations tied to the CNOOC purchase, and Apache’s work is tied to their joint-venture with Chevron and their LNG project. For the majority of the land in the Horn River Basin, there will be minimal activity until either a gas price recovery occurs, or the land is tied to an LNG export project on the west coast.

DR: The story is so much broader than that. When you’re talking to a potential Asian partner to do an integrated project where they’re going to buy into the upstream, contracting capacity on pipelines to the coast, and doing multi-billion dollar investments in an LNG facility to bring gas to Asia, they’re shopping all over the world for gas. They’re looking at attributes and concerns for every potential supplier, which covers the gamut from political stability, fiscal regimes, timing, risk of nationalization of resources, and much more. First Nations consultation requirements and regulatory timelines are just one of many many things these parties look at. It all goes into timelines, and the federal and B.C. governments are making great efforts on that front.

When are the earliest LNG facilities expected in Canada, and what hurdles do you foresee?

DR: They’re timed for approximately 2018, with several more projects in the 2020 to 2022 timeframe. All of this is good because that increases demand for natural gas in North America. In the case of B.C., it’s a matter of getting the fiscal, tax, and royalty structures sorted

Are timelines or perceived delays impacting northeastern B.C.?

DR: They’re measured in the range of months. So yes, there are some local frustrations for projects that had certain timing. Some HRBPG members have run into that, and certainly Quicksilver is one of them, but those are specific to individual activities in the basins for routine facilities. I have 100 per cent confidence that the government will get those issues resolved, and get clarity on well licensing and water permits. Water concerns and consultation issues need to be worked through, and the OGC is working diligently on those.

All of this is good because that increases demand for natural gas in North America. out with the government. The B.C. government anticipates making announcements on these toward the end of 2014, so once that’s in place we’re hoping to see some of the first projects get to a final investment decision. There will be good lead-time to building the structures.

How do regulatory timelines and First Nations consultations affect potential investors in decision making if they perceive delays or unrest?

58 B.C. Oil & Gas Report • 2014

With some examples measured in months, what do larger infrastructures like gas plants look like for permitting?

DR: Permitting for larger facilities require processes that go way beyond that of the OGC. Examples, like the Cabin Gas Plant, or in Quicksilver’s case, our Fortune Creek Plant, we would have done six-toeight months of preliminary work before engaging the environmental assessment office. You need to have your application very well thought-out with lots of aborigi-

nal consultation and local consultation before that. Then, an additional 18 to 20 months to go through the processes involving legislation and regulations before you go to final permits by the OGC. They look after conventional facilities under their legislation. Delays on regular permits through the OGC occur because more work needs to be done on them from various parties, often to meet environmental requirements and sufficient consultation.

The OGC process is very prescriptive and we’ve used it for a long time. Industry understands it very well. You can’t have a regulatory framework that has no flexibility to react to issues.

What do timeframes look like for LNG facilities?

DR: You’re talking about a project that spans most of a decade. As long as you have certainty on the regulatory timelines on the upstream, I don’t think there’s an obstacle to get these big projects completed on the coast. The main things are getting the fiscal structure right, permitting the facilities, and permitting the pipelines out to the coast – the big marbles in the jar, if you will.

What about options for powering LNG facilities?

DR: Hydro or self powering through natural gas turbines; I think the position of the B.C. government and industry is that greenhouse gas (GHG) emissions aren’t a local issue – that’s an international issue. When you look at all of these projects on the west coast, every single one of them, they are all going to bring gas to Asia and they’re largely displacing coal and oil-fired power. When you look at what we call well-to-wheels, from upstream all the way to where it’s being consumed in Asia, you are looking at up to 50 per cent reductions in GHG emissions over what’s currently there, and almost a 100 per cent reduction in smog-causing pollutants.

When you look at all of these projects on the west coast, every single one of them, they are all going to bring gas to Asia and they’re largely displacing coal and oil-fired power.

For skeptics who say this development should not happen in their backyard, territory, province, and so on, what do you say?

DR: If you are looking at this on a worldwide scale, you should be cheering every one of these LNG plant projects on. They are going to have a massive positive impact on GHG emissions at a worldwide level. They’re also going to have a huge impact on pollutants at a local level in Asia. Two-thirds of China’s

power comes from coal-fired generation, and fairly dirty sources of coal. They have massive pollution and public health issues in their cities. There’s been a huge impetus toward renewable energy sources, but the reality is, it’s not possible to replace coal with renewable sources in the timeframe they need that by – it has to be done with natural gas turbines.

The value of striving for global health and environment aside, people have concerns about what’s going in B.C. DR: You can read many articles that suggest there’s an increase in GHG emissions just inside the borders of B.C. You can’t have that level of upstream and pipeline development and not have an increase, but looking just inside the fence of B.C. is absolutely naïve. You really need to look at it on a global scale. Both B.C. and Canada are looking at GHG regulation, and that has to be done in step

with our trading partners, primarily the U.S. B.C. already has one of the toughest GHG regulations in the world.

Other than the high level of stability in B.C. that is attractive to investors on many levels, what else makes B.C. a reliable front-runner for success in LNG and natural gas production?

DR: The regulatory process for upstream oil and gas operations is very mature in B.C. We’ve been working in B.C. since the 1950’s, so I’m not concerned. You’ll see an increase in activity as the LNG projects come through. We want to create another avenue for shale gas sales in North America, and there is a very compelling case for buyers from Asia to look at integrated investments in the upstream of northeast B.C., along with the LNG facilities on the west coast. Those projects can deliver gas to Asia at very competitive prices that exist internationally. S

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59

Service rigs and the long-reach well

By Cindy Soderstrom, manager, communications, CAODC

Photo courtesy of Essential Well Service.

has a better lifespan for requiring maintenance and repairs. And also, the well gets more complicated when you start going lateral.”

These two factors – wells with oil payzones, as well as more complicated wells, suggest that Canada’s service rig fleet will stay busy. And, both factors are at play in horizontal drilling activity.

Horizontal wells tend to be more lucrative than vertical wells. So it’s no surprise that this drilling program is attractive for exploration and production (E&P) companies. Drilling vertically to access an oil or gas formation offers limited production opportunities. But if a wellbore runs laterally into the payzone, the E&P company can penetrate the formation at several points and dramatically improve the inflow of oil and gas.

This multi-stage fracking is commonly associated in the media with shale gas

2014’s 11,000 wells offer service rigs more opportunity than 2006’s 22,000 wells.

T

he service rig industry is feeling optimistic, and this confident outlook has everything to do with the recent dominance of long-reach horizontal wells in Canada.

Rig activity is typically tracked in terms of drilling rig utilization. An active drilling industry today puts in place the wells for service rigs to maintain and repair tomorrow.

Looking ahead to the end of 2014, the Canadian Association of Oilwell Drilling Contractors’ (CAODC) Forecasting Committee anticipates that drilling activity will come out slightly ahead of 2013 activity.

These well counts are nothing close to what the drilling industry achieved in 2006 when 22,000 wells were complet60 B.C. Oil & Gas Report • 2014

wells, but it’s also applicable oil wells and other gas wells.

Advancements in horizontal drilling and in fracking have made many old

ed. But, with just over 200,000 existing wells that continually need workovers or repairs, the service rig industry is steady and strong for the future.

The service rig industry is optimistic not because of how many wells are drilled. Rather, it’s the kind of well that’s being drilled that matters. 2014’s 11,000 wells offer service rigs more opportunity than 2006’s 22,000 wells.

“There was a lot of shallow gas drilling in 2005 and 2006,” says Preston Reum, chairman of CAODC’s Service Rig Executive Committee and director for Essential Well Service Inc. “But those wells just don’t require the maintenance.”

Reum counts off two qualities in today’s drilling program that service rig contractors are happy to see. “Every well

oil and gas fields economically feasible again.

Less wells, more workovers Service rigs have been busy in recent years bringing old fields back into production. And service rig equipment and crews will stay in demand to keep these wells in production.

The long-reach horizontal well has friction points. Because of these friction points, downhole equipment needs regular maintenance.

“When you start going lateral, more torque is needed on the drilling side. For the service rig side, going lateral means you’re responding to more tubing wear and more rod wear.”

This is especially true for equipment that sits where the well bore bends to become lateral.

Another industry shift that has been good for service rigs is the focus on oil wells. When natural gas prices were high earlier in the last decade, activity focused on gas wells. The Canadian industry drilled one oil well for every three gas wells in 2006. Today, about three oil wells are drilled for every one gas well.

“Oil wells, as a rule, need more maintenance than a gas well,” say Reum.

When an oil well is particularly lucrative, producers try to avoid downtime in production as much as possible. Essential is several service rig crews on 24-hour standby in northeast Alberta where Steam-Assisted Gravity Drainage (SAGD) wells are in production. It’s an unusual schedule for service rigs, a sector that traditionally works during the day.

The stage is set for steady work ahead Looking ahead, industry is turning their attention to export opportunities for gas. Shale gas development has made the commodity abundant in North America, and this has driven the price down to bargain basement prices.

But depressed pricing isn’t the case for markets overseas, and Canadian producers are actively pursuing opportunities to move gas product overseas.

What’s needed is the infrastructure to move natural gas to the west coast and terminals to send Liquefied Natural Gas (LNG) to Asia. Plans for several LNG terminals along the B.C. coast are underway. David Daly, former manager for fiscal policy with the Canadian Association of Petroleum Producers, has noted that these terminals and pipelines are a critical component for Cana-

da to reach new markets: “We could see an LNG terminal later this decade. By 2018 or 2019 we’ll possibly have one of these terminals completed.”

In light of the infrastructure discussions underway, producers are eyeing gas production opportunities in Northeast B.C. (around Fort St. John and Fort Nelson).

Unlike 2005’s shallow gas wells, these gas wells will require the same long reach that is predominantly used today.

Overall, horizontal drilling has brought increased opportunities to service rigs across Western Canada.

“Our job is to help with all of this production, whether we’re getting a well going or doing workovers or repairs,” says Reum. “It looks like there will be plenty of that kind of work ahead.” S

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61

Keystone XL debate rages throughout summer 2014

By Leonard Melman

I

t is amazing how sometimes random events serve to highlight areas of public controversy, and in terms of fossil fuel production and distribution, the summer of 2014 has been particularly significant on two counts. First, the Ukraine-Russia dispute has served to place new pressures on natural gas distribution, particularly within the huge European market. Second, the sudden eruption of violence within oil-producing regions, such as Iran and Nigeria, has raised questions regarding the reliability of petroleum production and exports from those regions.

Both episodes serve to highlight the importance of generating reliable North American supplies. And, that consideration brings sharpness to the polarizing debates surrounding one of the most important projects now dominating North American media headlines, the proposed Keystone XL pipeline, which is designed to move Canadian petroleum through the central U.S. and eventually down to major refining facilities located on the American Gulf Coast.

The project could be of vital interest to the Canadian provinces of British Columbia, Alberta, Saskatchewan, and Manitoba, where intense exploration and development efforts relating to both ‘natural’ petroleum deposits and those associated with tar sands developments are ongoing. In fact, those provincial

governments regard petroleum production – both present and future – as important bases upon which to build future economic growth.

Alberta, of course, is already well known for conventional, as well as oil sands development and production, while the other three provinces look toward natural gas and petroleum extraction as major sources of present and future economic growth.

Keystone XL is actually only one part of the “Keystone Pipeline System”, with three phases carrying crude oil from Alberta already in operation (as of mid2014), including Phase 1 from Hardisty, Alberta through Regina, Saskatchewan to Steele City, Nebraska and then on to refineries in Illinois; Phase 2 operates between Steele City and Cushing, Oklahoma; and Phase 3A continues on to Nederland, Texas. Phase 3B, which extends the pipeline to Houston, is currently under construction.

The Keystone XL pipeline – Phase 4 of the total system – will be an entirely new pipeline from Hardisty directly to Steele City, located in southernmost Nebraska – and it is that location which lies at the heart of a major environmental controversy since the proposed route would carry the pipeline through areas considered important to Nebraska’s and neighbouring states’ fresh water supplies.

The fact that controversies surround-

The project could be of vital interest to the Canadian provinces of British Columbia, Alberta, Saskatchewan, and Manitoba, where intense exploration and development efforts relating to both ‘natural’ petroleum deposits and those associated with tar sands developments are ongoing.

62 B.C. Oil & Gas Report • 2014

ing Keystone XL are making well-publicized pro and con headlines on an almost daily basis can be attributed, at least in part, to the influence of great personal wealth on either side of the issue.

To a large extent, forces opposed to the construction of the Keystone XL are funded by billionaire Tom Steyer, founder and former chairman of Farallon Capital Management. In a recent interview, Steyer declared that he was dedicating himself to tackling energy and climate issues, and in order to work toward those goals he founded – and funded – “NextGen Climate”, which identifies itself strongly with promoting climate change awareness, as well as supporting clean air and water issues.

Meanwhile, noted libertarian and free market activists Charles and David Koch – also themselves billionaires – are equally vigorous in support of Keystone XL. The Koch Brothers, chairman and executive vice-president of giant Koch Industries, have consistently promoted Keystone XL on the basis of the huge potential economic and job-creation benefits which could accrue upon its construction and successful completion.

Political influence has played an important part in the overall debates regarding the project. Generally, those on the political Left, and therefore carrying substantial influence within Democratic Party circles, right up to President Obama, are fervently opposed to the project on environmental grounds. One of their arguments is that the completion of the Keystone XL would enable further expansion of tar sands petroleum recoveries in Northern Alberta, which they regard as environmentally harmful, while another is that approval of the Keystone XL could endanger the entire Ogallala Aquifer, one of the largest reserves

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On the opposite side, those favouring the project point toward two significant considerations. First, there are the direct economic benefits which would include construction employment, permanent operational job creation, support of many retail establishments during construction and operation, further employment within the Canadian oil industry, and capital gains which would then be redistributed throughout the economy.

Most recently, they have also noted that the Ukraine-Russia and Iraq-Syria and Nigeria instabilities demonstrate the potential vulnerabilities associated with the importation of fossil fuels from distant – and possibly unreliable – sources.

Accordingly, they favour extensive development of North American alternatives.

There are other political issues as well.

Since the Keystone XL pipeline originates in Canada but passes through U.S. territory, relations between Canada and the USA are also involved. It is a matter of record that American President Barak Obama has openly questioned the ultimate value of the project compared to the environmental damage that might ensue and has therefore used his powerful influence to delay final approval while Canada’s Prime Minister Stephen Harper has been vociferous in favour of quick approval of Keystone XL leading to early construction and production.

It is also worth noting that because both nations are involved, final American responsibility for approval lies with the state department, which is also subject to political pressures.

Whatever the eventual regulatory outcome, the release of important information from both sides of the Keystone XL debate have served to significantly raise the level of public knowledge regarding the entire subject of North American fossil fuels developments. S

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63

Working in the oil and gas sector in B.C.?

Know your responsibilities… and your options

I

f you own or operate technical systems and equipment within the oil and gas sector in British Columbia, you have a legal responsibility to be aware of your operating permit requirements.

According to B.C.’s Safety Standard General Regulation, it is your legal obligation to have operating permits for the operation and maintenance of boiler, pressure vessel, refrigeration, electrical, elevating, gas, and various other types of equipment.

When do I need to have an operating permit?

• You must obtain an operating permit before operating equipment or performing maintenance work subject to B.C.’s Safety Standard General Regulation.

• You must adhere to an ongoing permit renewal process as long as the equipment remains in service.

• Operating permits are non-transferrable. You must obtain new operating permits for each piece of equipment within any site acquired. Existing permits become invalid when equipment changes ownership. The sale of regulated equipment must be declared to the BC Safety Authority.

Compliance with existing codes and standards is mandatory and the BC Safety Authority (BCSA) can undertake actions to enforce operating permit requirements.

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Are there any other options?

Yes. Alternative Safety Approaches (ASAs) are the only alternative option offering equal or better safety outcomes than prescriptive regulatory requirements in B.C. ASAs were included in changes to the Safety Standards Act that were approved by the provincial government of British Columbia in 2010. The program gives owners and operators of regulated products and equipment a different method to effectively manage safety. An ASA provides flexibility by treating safety as an integrated whole instead of simply complying with a series of prescriptive requirements.

Interest in BC Safety Authority’s ASAs continues to grow, especially in the oil and gas sector. The BCSA currently has 32 ASAs in place and another 25 applications are currently under assessment.

According to Fred Tewfik, BCSA’s acting leader of business development, “our clients are seeing the benefits of ASAs as a way to streamline the administration of operating permits, especially in the area of boilers and pressure vessels,” says Tewfik. “Safety is important to everyone and the ASAs put the focus directly on safety outcomes while lowering administrative burden.”

According to B.C.’s Safety Standard General Regulation, it is your legal obligation to have operating permits for the operation and maintenance of boiler, pressure vessel, refrigeration, electrical, elevating, gas, and various other types of equipment.

To improve efficiency, the BC Safety Authority offers the following ASA options: • Safety Management Plan: Applies to the safety of an entire facility and allows for significant substitution or equivalency to prescriptive regulations, making it possible to seek exemption from the regular permitting process.

• Equivalent Standard Approach: Allows for limited equivalency or substitution of a regulation, adding operational flex-

into account the individual characteristics of their operations to ensure a high level of safety performance,” adds Tewfik. “We use a robust auditing practice to support the safety management plan process.”

The BC Safety Authority is confident that a number of additional companies will have new ASA options in place by the end of 2014. BCSA is also planning to work with the design and engineering teams on proposed new liquefied natural gas (LNG) projects.

For more information about alternative safety approaches, visit the Permits section of BCSA’s website at www.safetyauthority.ca, or email asa@safetyauthority.ca.

The BC Safety Authority is an independent, self-funded organization mandated to oversee the safe installation and operation of technical systems and equipment. In addition to issuing permits, licences and certificates, we work with industry to reduce safety risks through assessment, education and outreach, enforcement, and research.

ibility and streamlining of the administration for operating permits.

“An alternative safety approach is an opportunity for owners and operators to implement innovative safety practices, taking

With our mission to build confidence in safety systems for life, through a focus on risk and support for innovation, we are achieving our vision of safe technical systems. Everywhere. S

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B.C. Oil & Gas Report • 2014

65

Preparing for success

Progress and development in the Northern Rockies

T

Fort Nelson, heart of the Northern Rockies.

Scheduled Service Charter Cargo

1-800-663-2872 66 B.C. Oil & Gas Report • 2014

pacificcoastal.com

he Northern Rockies Regional Municipality (NRRM), working with the province, industry and Fort Nelson First Nation (FNFN) are all focused on ensuring development in British Columbia’s most northeastern region that is both balanced and sustainable. Significant new discoveries as the result of ongoing natural gas exploration, combined with known energy reserves and the refinement of technologies in both upstream and downstream production, and momentum in the development of west coast Liquefied Natural Gas (LNG) projects, foretell continued growth in both the natural gas sector and the community itself. Canfor’s disposal of assets (two production facilities and equipment) in the Fort Nelson area where a large, available wood supply, as healthy as it is diverse, with the capacity to support a range of new operations, poses substantial investment opportunities in this industry.

The achievement of an Infrastructure Development Contribution Agreement (IDCA) with the Province of British Columbia in 2013 attests to the Province’s commitment to sharing financial and leadership responsibility with the NRRM to develop crucial components of the region’s infrastructure, benefitting residents and contributing to the economic future of the province. With the IDCA in place, investment into the rehabilitation of aging infrastructure, essential to sustainable industry access and development, is already underway.

A primary source of natural gas to future LNG developments in Kitimat and Prince Rupert, and having one of the most desirable baskets of timber in the

province, Fort Nelson and the NRRM

There are 250 local, fully serviced acres,

have established themselves in Fort

sees 2014-2016 as a period of prepara-

accessible by an industrial traffic route

Nelson since 2009, with a continued

tion. Forecasts for direct employment

off of the Alaska Highway available for

expectation of growth beyond 2014.

of future natural gas sector expansion

purchase. At the same time, the Forestry

Storefronts in retail, service-sector pro-

alone show the potential for a work-

Roundtable meets regularly to explore

viders, corporate oil and gas drilling,

force of up to 10,000 in the NRRM by

new options in our changing forest sec-

2020.

tor, maintaining focus on that industry.

completion and production services,

The Alaska Highway, combined with

FNFN and the NRRM have agreed to

railhead access and regular scheduled

pursue a community forest agreement,

and charter air service at the North-

one which would lead to a community

ern Rockies Regional Airport (NRRA),

forest tenure.

makes Fort Nelson an ideal transporta-

Tourism in this incredible region also

tion hub. Strategic business and capi-

remains a force, with the world-famous

tal planning and development around

Alaska Highway as Fort Nelson’s main

transportation are well advanced as

street, and the globally significant 6.4M

manifested in the Alaska Highway Cor-

hectare Muskwa-Kechika wilderness ly-

ridor Study and upgrades to aprons and

ing in the backyard. The number of visi-

runways at the NRRA. In response to

tors to the area steadily climbs annually,

the development of shale gas resources

as the desire to explore and experience

Contact: Invest Northern Rockies

and the associated needs of the service

the “true north” remains a motivational

Email: ecdev@northernrockies.ca

sector, new light-industrial lands are

driver for many new and repeat visitors.

Tel: 250-774-2541

in the second phase of development.

Over 300 new businesses of all sizes

www.InvestNorthernRockies.ca S

and the expansion of the accommodations sector all show the value and measurable potential of the NRRM. Many of those interested in possibilities in the region will be attending the 2014 B.C. Oil and Gas Conference in Fort Nelson September 30 through October 1, 2014.

Reaching the peak of business success is no small feat: doing so in the Northern Rockies is well within reach.

B.C. Oil & Gas Report • 2014

67

A broad scope of unconventional hydrocarbon resources to be explored at the 2014 Unconventional Resources Conference–Canada

By Yarah S. Moharam

T

he Canadian Society for Unconventional Resources (CSUR) and the Society of Petroleum Engineers (SPE) have joined forces to plan and operate the 2014 Unconventional Resources Conference–Canada, which will be held September 30 to October 2, 2014 at the BMO Centre at Stampede Park in Calgary, Alta. The conference will focus on evolving industry innovations and technologies that have the potential to improve the economics of North America’s rapidly developing unconventional oil and gas plays.

The increased number of challenges associated with the exploration and development of unconventional reservoirs in the region has motivated the industry to move into a new era of technological discovery. Best practices and groundbreaking methods that mitigate those challenges are becoming a major focus in today’s industry.

The Unconventional Resources Conference–Canada will provide a platform for sharing solutions and advanced technologies among experts in North American resources and technology who lead the industry.

Attendees will engage with trailblazers and pioneers in the technological development of unconventional hydrocarbon resources. Through a multi-session highly focused technical program, attendees will learn about key topics, such as LNG development and water management, rock fluid interaction, hydraulic fracturing design and analysis, tight oil and gas performance and forecasting, unconventional stimulated reservoirs model-

68 B.C. Oil & Gas Report • 2014

ling, hydraulic fracturing materials and operations, geological challenges, and drilling and completions.

In addition, the conference will offer an exceptional opportunity to participate in keynote presentations and interactive panel sessions. These sessions provide topics directly related to the unconventional resources exploration and production industry. Some of the topics will include the emerging LNG industry in Canada, the path of proper water management, and collaboration efforts among producers, stakeholders, and regulatory organizations in dealing with the challenges of sourcing, producing, and disposing of high volumes of water.

Case studies on various unconventional resource plays, utilizing microseismic for assessing the effectiveness of hydraulic fracturing, induced seismicity and social licensing, are among the hot topics that will be covered.

Not only will the conference offer an unmatched opportunity for delegates to learn through training courses and a highly focused technical program, the event will be an occasion for networking, connecting with key decision makers, and building long-lasting relationships. The conference is designed to include interactive networking functions, from coffee breaks and breakfasts to networking receptions.

A large exhibition will be held adjacent to the conference. It will fulfill the expressed needs of the industry to learn about market trends, competitive technologies, and new solutions available in the North American market. The exhibition will allow giant players and SMEs in the region to showcase their latest products, solutions, and innovations.

Companies can increase their brand awareness, source new sales leads, monitor competition, and close deals on the spot. S

30 September–2 October Calgary, Alberta

Great reasons to attend this 3-day event! ➊ Five keynote and panel sessions and a 12-session technical program over three days

➋ An unmatched lineup of speakers, including: Steve Carr, Ministry of Natural Gas Development, Government of British Columbia Deanna Cottrell, Water/Groundwater Risk SME, Shell Ryan Genyk, Team Lead, Production Engineering, Athabasca Oil Corporation Roy Hartstein, Vice President—Strategic Solutions, Southwestern Energy Jill Haynie, Senior Geoscientist, Enerplus Energy Cal Hill, Executive Vice President, Strategy & Regulatory Division, Alberta Energy Regulator

Neil Horbachewski, Vice President—Production, Progress Energy Kevin Lynch, Vice Chair, BMO Financial Group Holger Mandler, Shell Oil Neil Spriggs, Co-President, Nanometrics Bill Whitelaw, CEO, JuneWarren-Nickle’s Energy Group Peggy Williams, Editorial Director, Hart Energy Ivan Wong, Principal Seismologist/Vice President, URS Corporation

➌ Other features including an awards luncheon, young professional and teacher workshops, training courses, and a state-of the-art exhibition

Register now at www.spe.org/go/urccbc.

Hydraulic Fracturing Code of Conduct: Industry’s commitment to Canadians

H

ydraulic fracturing operations have been around for more than 60 years in Can-

ada and used safely to complete more than 170,000 wells. The technology has evolved to allow for more complex wells to be drilled and completed, and some

70 B.C. Oil & Gas Report • 2014

of these wells now reach lengths in excess of 2,000 metres. Today, hydraulic fracturing is often credited as one of the key technologies responsible for extending the potential supply of Canada’s unconventional energy resources by over 100 years.

The technology of hydraulic fracturing is very complex, and so it’s no wonder there is a growing public interest in how the technology works and the impacts of modern-day oil and gas operations using the technology. With industry relying heavily on hydraulic fractur-

By supporting this initiative, companies pledged to communicate with communities, continuously improve how they develop Canada’s oil and gas resources, and to create a hydraulic fracturing code of conduct.

water and the environment; fracturing fluid disclosure; technology development; health, safety and training; and, community engagement. The code captures the common operating practices amongst the 11 endorsing companies,

ing, there was a need to respond to and inform Canadians about this technology and the regulations surrounding it.

With that goal in mind, the Petroleum Services Association of Canada (PSAC) and 11 of its members who conduct these operations launched the Working Energy Commitment in February 2013.

This initiative outlined a set of guiding principles under which PSAC members conduct themselves. By supporting this initiative, companies pledged to communicate with communities, continuously improve how they develop Canada’s oil and gas resources, and to create a hydraulic fracturing code of conduct. And this is exactly what they did.

The guiding principles attached to the Working Energy Commitment set the framework for discussions with residents in local communities across Western Canada where the industry is active, with a specific focus on listening and responding to questions and concerns related to hydraulic fracturing. A six-month series of community engagement sessions were held across Western Canada, and PSAC had the chance to meet with more than 100 local community residents including landowners, local business, and local government.

Representatives from provincial regulators, producer companies, and other upstream associations joined PSAC to provide an overview of industry operations and the world-class regulatory regime here in Canada. In addition, PSAC used the opportunity to seek out input and feedback that was then used to inform the development of a hydraulic fracturing code of conduct.

Community engagement sessions were held in: Dawson Creek, British Columbia; Drayton Valley, Lethbridge, Grande Prairie and Red Deer, Alberta; Carlyle, Saskatchewan; and Brandon, Manitoba. In addition, PSAC returned to several communities to ask for additional feedback on the code of conduct in its draft form.

PSAC’s president and CEO Mark Salkeld explained the relevance of the Working Energy Commitment.

“Working closely with stakeholders is critical to building trust in oil and gas operations,” he said. “We’ve seen public concern surrounding hydraulic fracturing operations increase over the past years. It was definitely time to address that in a proactive and positive way, but we knew talking to community members wasn’t going to be enough. We had to act. That’s why we developed the Hydraulic Fracturing Code of Conduct.”

After completing this intensive engagement program, PSAC released the Hydraulic Fracturing Code of Conduct for the Canadian oil and gas service sector on October 30, 2013. This code is a significant milestone for Canada’s oil and gas services sector, as the 11 member companies who partnered in the development of the code have voluntarily agreed to follow it, wherever they work in Canada.

The Hydraulic Fracturing Code of Conduct outlines standard practices for sound technical and environmental performance when fracturing a well and defines mutual expectations for working with stakeholders. The code also includes a series of commitments focused on five key areas of their operations:

as well as their commitment to continuous improvement in their technical and environmental performance.

Endorsing companies: • Baker Hughes Canada • Calfrac Well Services • Canyon Technical Services • Element Technical Services • Gasfrac Energy Services • Halliburton Group Canada • Iron Horse Energy Services • Millennium Stimulation Services • Sanjel Corporation • Schlumberger Canada • Trican Well Service “This code is about improving communications with local communities in an effort to enhance transparency in our operations, and build greater public trust in our members’ commitment to ensuring the safe operations of our industry,” added Salkeld.

PSAC is the national trade association representing nearly 250 of Canada’s leading service, supply and manufacturing companies in the upstream industry. Members employ more than 75,000 people and contract almost exclusively to exploration and production companies.

For more information about PSAC and the Hydraulic Fracturing Code of Conduct, please visit oilandgasinfo.ca. S B.C. Oil & Gas Report • 2014

71

Economical and environmentally responsible geochemical method reduces program costs for oil and gas exploration in difficult terrain

By D. A. Sutherland

T

he BC Energy Plan has stated in regards to the central and northern interior of the province that,

Spatiotemporal Geochemical Hydrocar-

ferentiate between the possible presence

bons (SGH) is an innovative and tested

of buried petroleum-based targets from

geochemical method with unique capa-

geophysical targets of no interest, such as

“The delayed evaluation and potential

bilities that analyzes surficial samples to

bodies of granite gneiss and dunite. The

development of these areas is largely

detect a forensic signature of identifica-

SGH geochemistry directly addresses the

due to geological and physical obstruc-

tion associated with both conventional

need for easier, more economical explo-

tions that make it difficult to explore in

and unconventional oil, gas, and coal

ration in difficult and exotic terrain. A

the area. Volcanic rocks that overlay the

plays. This nanotechnology analyzes

survey for SGH represents perhaps the

sedimentary package, combined with

surficial samples from a collected survey

easiest and most unobtrusive sampling

complex basin structures, have hindered

grid to detect the nano-seepage of 162

program that can reduce the impact to

development”.

specific hydrocarbons. The resulting fo-

even the most sensitive environments to

These hurdles are met head-on with a

rensic signature is used for identification

near zero. A shovel is all that is required

thoroughly tested Canadian innovation.

and has been shown to be able to dif-

to collect a small sample of a near sur-

72 B.C. Oil & Gas Report • 2014

Figure 2: 3-D view of symmetrical SGH anomaly shown in Figure 1.

Figure 1: Five member SGH segmented halo anomaly approximates Redox zone having an SGH Petroleum Signature. Outline agrees with structure defined by subsequent seismic work. face material at each station that can include soil, sand, glacial till, peat, humus, etc. Thus in difficult terrain, a wide variety of sample types can be used to enable the collection of a complete grid of sample locations to provide the most ideal representation of the survey area.

In areas that are the most challenging to access, there is the option to collect snow samples in a survey using snowmobiles.

The SGH results emulate the flux of hydrocarbons from the target at depth that self-organize during the migration through the electrochemical conditions of the overlying Redox cell in the overburden and produce segmented symmetrical anomalies. This close association to redox conditions, and thus many geophysical measurements, allows the prioritization of geophysical programs, thereby improving the economics of the overall exploration program. The advantage of using a nanotechnology is highlighted in areas of complex geology and exotic overburden exactly like that found in British Columbia. The SGH anomalies obtained and interpreted by this geochemistry are unaffected by overlying features such as sedimentary rock, clay and basalt caps, and permafrost previously thought to be impermeable. In other parts of North America, SGH has been shown to be a deep-penetrating geochemistry for oil plays to a depth

of 4,725 metres (15,500 feet) as shown in Figures 1 and 2. Due to these capabilities, the SGH geochemistry can both identify the type of target and vectors to an ideal drill target as the geometric centre of redox conditions.

Over 1,000 SGH surveys have been completed for the petroleum and mineral sectors and this technique has been proven to be successful in the B.C. environment through several independent studies. Activation Laboratories Ltd. can further assist petroleum sector clients with the latest detailed analysis of biomarkers and diamondoids to help

geochemists infer source rock thermal maturity, lithology, depositional environment, organic matter input, and age.

Activation Laboratories Ltd. (Actlabs) is a global company with a local presence. With branch laboratories in Stewart and Kamloops, British Columbia, our family of 30 laboratories in 14 countries with our 25-plus years of experience and ISO 17025 accredited procedures, help clients in Canada and around the world.

D.A. Sutherland is a forensic scientist and the organics manager and director of research at Activation Laboratories Ltd. He can be reached at dalesutherland@actlabs.com. S

High-Resolution Gas Chromatography / Mass Spectroscopy in the C12-C44 Carbon Range for Petroleum Exploration PAH/PNA Analysis Analysis of n-alkane Distribution Biomarker and Thiophene Analysis

Diamondoid Analysis Diamondoid/Biomarker Packages SGH Geochemistry

Activation Laboratories Ltd. (Actlabs) Phone: 1.905.648.9611 customerservice@actlabs.com www.actlabs.com

B.C. Oil & Gas Report • 2014

73

Paramedics re-shaping emergency care in British Columbia’s oil and gas sector

A

s British Columbia’s LNG sector ramps up, workers are travelling further afield and farther away from community-based ambulance stations. As the number of remote workers increases, so do the risks of sudden medical conditions and trauma emergencies requiring rapid paramedic care and intervention.

What was once the domain of ambulances located in major centres such as Vancouver, Kamloops, and Kelowna, paramedics in industry are rapidly transforming the way care is delivered in the oil and gas sector. British Columbiabased LIFESUPPORT Emergency Medical Services is an industry leader in deploying paramedics around the world – often in support of complex medical evacuation missions for ill and injured workers, executives, and tourists.

74 B.C. Oil & Gas Report • 2014

The benefits of transitioning British Columbia towards a paramedic-focused level of care in the resource sector are obvious, says Graham Williamson, CEO of LIFESUPPORT Emergency Medical Services, himself a licensed paramedic.

“We are able to bring the latest emergency medical treatment protocols and procedures directly to the worksite,” he says, adding that paramedics operating under advanced standing written orders issued by their medical director can act to treat a variety of conditions. “Folks think of paramedics as responding only to major traumatic emergencies, however, many calls that paramedics in the resource sector respond to are not only related to trauma – paramedics have the drugs and equipment necessary to quickly react to a variety of medical

emergencies, including chest pain and heart attacks, diabetic emergencies and allergic reactions.”

A significant percentage of the workforce in remote camp environments live and work with pre-existing medical conditions, such as heart disease and diabetes, and paramedics are trained to treat these conditions if an emergency arises. By transitioning from a first-aid model of care, where the skills of an OFA 3 attendant are limited, and focused primarily on traumatic injuries, resource companies in British Columbia’s oil and gas sector are able to ensure their remote workforces are covered by skilled, licensed professionals who are located directly on site, rather than waiting for a traditional ambulance to respond from the nearest community – often several hours away.

“The benefits are obvious with minimal cost implications,” says Williamson.

LIFESUPPORT’s paramedics treat and transport over 2,000 patients per year, both within British Columbia and around the globe, including missions to hostile areas, such as Afghanistan. Agreements with WorkSafe BC allow paramedics to fill dual roles – both as the on-site first-aid attendant, as required by legislation, and as an emergency medical professional, who is licensed by the Ministry of Health.

LIFESUPPORT Emergency Medical Services is leading the way in integrating paramedic care into B.C.’s oil and gas sector.

“Paramedics are healthcare professionals – not only do they fill the role of firstaid attendant and emergency responder, but they offer value-added services, such as being able to tend to lumps, bumps

and minor injuries.” Value is added when paramedics are able to administer potent pain medications to fracture and burn patients, as well as drugs to control nausea.

“Not only is life-saving care provided by the paramedic on scene, but they can provide symptom relief and comfort to their patient while transporting them to definitive care.”

Paramedics work directly under written authorization from their medical director – a licensed physician hired by the company to provide clinical oversight, using written treatment guidelines. The physician medical director is also available by telephone to supply advice in certain complex circumstances.

In addition to hiring licensed paramedics to work on its fleet of industrial ambulances and mobile treatment centres,

LIFESUPPORT EMS has recently completed the full integration of its dedicated fixed-wing air ambulance resources with its mobile EMS program. Paramedics in the field – with a simple text message to LIFESUPPORT’s dispatch centre, can activate a Vancouver-based fixed-wing air ambulance and critical care transport teams for major trauma conditions, such as head injuries and burns. This valuable tool ensures that patients in the field make it to trauma centres as quickly as possible, thus increasing the likelihood of survival.

For more information on LIFESUPPORT’s paramedic programs, visit www.LNG-EMS.com, or call 250-947-9641. S B.C. Oil & Gas Report • 2014

75

Analytics in the oil and gas industry

By Connie Shepherd, CPA CMA

A

s Canada continues to emerge as a world leader in energy, oil and gas (O&G) industry participants are faced with divergent challenges ranging from cost pressures and volatile commodity prices, to regulatory and environment pressures. For companies to thrive in today’s competitive marketplace, the effective implementation of analytics is critical to understanding customers, markets, suppliers and efficiently deploying resources, which ultimately impact financial performance. But what are analytics exactly, and what are analytics tools? How can it help your company?

Gartner, one of the world’s leading information technology research and advisory companies defines analytics as “leveraging data in a particular functional process or application to enable context-specific insight that is actionable” (Kirk, 2006). Analytical tools are the applications used to organize, communicate, and transform data into information so that insights can be inferred. There are different classes of analytical tools, including business intelligence (BI) tools, predictive analytics, and enterprise performance management (EPM) software.

O&G companies already capture a plethora of data, an asset of untapped potential. Advances in technology, such as databased in-memory platforms like SAP HANA, allows for realtime processing of a large quantum of data, enabling companies to detect trends, anticipate behaviours, and respond quickly with their actions. Companies are deploying analytical tools to broaden and deepen analysis, speed up existing processes, and take planning and forecasting to new levels with advanced simulations.

A recent Performance Analytics project demonstrates how these analytical tools can provide a gas company with an advantage in a dynamic environment. The project was for the energy supply division of a gas company, which forecasts gas costs and performs price scenario simulations as the market price of gas fluctuates.

Performance Analytics helped by implementing an EPM solution – SAP Business Planning and Consolidation – which successfully reduced the company’s forecasting cycle time.

Furthermore, the software provides the company with insight into data by allowing its energy supply team to analyze the impact of price changes to gas costs incurred and recovery rates. With this fresh insight, the company uses BPC to model strategies under consideration before taking action for rate setting.

In another gas company project, Performance Analytics implemented SAP Business Planning and Consolidation and

76 B.C. Oil & Gas Report • 2014

Advances in technology, such as data-based in-memory platforms like SAP HANA, allows for real-time processing of a large quantum of data, enabling companies to detect trends, anticipate behaviours, and respond quickly with their actions.

SAP Disclosure Management solutions in the finance department. The solution is being used to expedite the monthly financial close and the external reporting processes. A financial reporting consolidation cycle that had previously taken over one day is now automated and completed in about an hour with strengthened controls. With efficiencies gained by deploying these software solutions, finance professionals now redirect their time on value-added analysis of the business.

The aforementioned projects highlight how analytical tools in the form of EPM solutions can help companies respond to business challenges. O&G companies are awash with field data, logistics and customer information that can be harnessed by analytical tools to help executives deal with the complexities of today’s business environment. Whether you are considering business intelligence, predictive analytics, consolidation, planning, or forecasting for your analytics strategy, look to Performance Analytics for a custom solution.

Performance Analytics Corporation is a boutique financial analytics firm, specializing in business planning and consolidation with operations throughout North America. They assist in implementing and advising on financial management systems. www.performanceanalytics.com/ For further information, please contact Michael Matrick, managing partner, (604) 506-6965.

Sources: Kirk, J. (2006, February 7). InfoWorld. Retrieved August 4, 2014, from InfoWorld: http://www.infoworld.com/t/datamanagement/analytics-buzzword-needs-careful-definition-567 S

INVEST IN TUMBLER RIDGE Northeastern BC’s most desirable community

The perfect place...

A place for people. A place for business. A place for you to grow.

Impressive Opportunities

Emerging Industries

• Residential & commercial development needed for growing population.

• Demand for multi-family and age-friendly housing.

• Land available for estate lots.

• Tourism operators wanted to provide outdoor experiences in the Shangri-La of the Northern Rockies.

• Bioenergy – utilizing timber infected by the Mountain Pine beetle.

• Community Forestry – recently approved application is providing the community with its own forest with an annual allowable cut of 20,000m3.

Economic Drivers • 9 billion ton met coal deposit discovered.

• Innovative long wall mining process.

• Two 180mw wind farms operating or under construction.

• Ideally situated for the Trans-Canada and Enbridge pipelines, as well as multiple natural gas projects.

For a copy of our Economic Outlook Summary, Community Profile, or any other info please contact:

Economic Development Office T: 250.242.4242 | edo@dtr.ca | www.investTumblerRidge.ca

B R I T I S H

C O L U M B I A

C A N A D A

TUMBLER RIDGE

Lasting Impressions

TOG Systems takes telecommunication reliability to the next level with the introduction of their new Integrated Communications System

TOG does more than just provide telecommunication systems, they create them

Walter Nordhagen, president of TOG Systems.

TOG Systems fleet.

I

magine this: It’s mid-December. You’re on site in northern Alberta, and you just logged

on to a videoconference with the Calgary office. Meanwhile, site medical technicians are downloading documents from their company intranet site. Your cross shift is on FaceTime, meeting his new nephew, and the well-site data system is running an update.

Everything is running concurrently and smoothly. Seem unrealistic? Not anymore.

TOG’s newest innovative technology offers an integrated system for managing Internet service on remote sites. The Integrated Communications System (ICS) is a complete network that brings a new and 78 B.C. Oil & Gas Report • 2014

very high level of bandwidth availability, site visibility, and management capabilities.

Access to high-capacity Internet networks is relatively easy in urban centres through a variety of means such as fiber or DSL. Bringing this same level of Internet to remote sites is much harder and has the potential to be very cost prohibitive.

TOG’s goal was to find a way to incorporate any and all sources of Internet into one pipe, bringing a level of redundancy and reliability that can’t be achieved with any single source.

“We wanted the flexibility to combine any number of sources available in an area and the ability to utilize the entire band-

width stream of the combined sources, which would allow the bandwidth intensive applications to run smoothly,” Walter Nordhagen, TOG’s president, who founded the company, explains.

This is becoming more important as the applications on “smart rigs” become more bandwidth intensive. “Every Internet source has both benefits and drawbacks; the trick is to be aware of the different aspects of each source and to utilize the positive facets of each while minimizing any risk,” states Nordhagen.

Satellite can be deployed anywhere and is often a primary communication source on site because of its dependability. The cost associated with satellite bandwidth

TOG Systems portable tower remote-site set up.

has traditionally been high, and as such has always been limited on the end sites.

These limitations restrict both the number of users and the number of applications that run simultaneously or concurrently.

As reliable as satellite is – and it is quite reliable – it has the potential for issues, like anything else.

“A satellite is vulnerable to atmospheric conditions, because the site you set up on is only one part of the equation. You have your site, you have the actual ‘bird in the sky’, and then you have the teleport hub, which could be halfway across the country or in the U.S., depending which satellite you’re on,” says Nordhagen. Volatile weather in Montreal may cause issues at an Alberta site, just like local weather could.

Cellular data is being used more and more, can be cost effective and is becoming more readily available in even the more remote areas of Canada. The drawback to cellular is that it can be vulnerable to seasonal overloading in active drilling areas, making it unreliable during heavy usage times.

TOG has integrated multiple sources with a sophisticated combination of

hardware and software that makes clients less vulnerable to failure through flexible mixed-source networks.

TOG’s ICS combines multiple Internet sources into one larger Internet connection that is distributed together through a meshed network utilizing high-performance multi-radio routing protocols.

What this does for clients is provide a high level of redundancy and failover not conventionally seen in the industry. If one source goes down, all systems continue to run uninterrupted. The ICS allows TOG to combine up to 12 Internet connections into one large pipe to service any size site.

“Any time we can provide redundancy by aggregating different sources, we make that site more secure,” says Nordhagen.

The system has enterprise-grade firewall and advanced security features, and it provides layer-7 application visibility and traffic shaping, allowing TOG to remotely manage sites right down to the individual user. TOG can remotely adjust the load balance, change the source preferences, or even manage users or programs based on company specifications.

Effective network monitoring allows TOG to respond proactively to analysis

rather than reactively to issues. That means instead of you calling your provider to report problems, TOG may call you to report modifications that are keeping your business functioning. The ability to effectively manage a site remotely means fewer service calls, and saves time and money.

Another cost-saving feature for clients is the ability to have all site vendors access the same Internet system. TOG can serve multiple clients or vendors on the same site, without the need for multiple systems or service providers.

“This technology has a lot more flexibility and expandability than traditional systems,” says Nordhagen. “We can expand the product to handle a variety of needs and increase the number of users. For example, the well-site data system provider can run their data seamlessly on TOG’s ICS system.”

As the landscape of remote sites continues to change, you can expect TOG to stay ahead of the game, continuing to come up with new ways to keep both businesses and people connected. S B.C. Oil & Gas Report • 2014

79

Unmatched in service and support

Canadian Pump & Compressor

By Dave Côté

B

efore starting Canadian Pump & Compressor, president Owen Myhre had worked since 2004 in the oil field, taking care of the most important asset to the operation of any oil field: the pumps. The company he has since built is involved in the rental, sale and service of a wide variety of pumps, generators, light towers, filtration, and associated rental equipment.

In the beginning, it was rather a rough start. Myhre practically lived in his truck with his laptop and phone, moving around from job to job in a timely manner on the remote and sometimes dangerous roads of Western Canada. His customers relied on him to ensure the proper operation of the pumps that would keep their operations going.

Even though there were some challenging times, by the beginning of January 2012, Myhre was able to open his first branch of Canadian Pump & Compressor in Nisku, Alberta and, by July of that year, had opened a second in Grande Prairie.

“I thought that there was a robust market for our products and services in Canada. The opportunity to start this business came through my network, and I was able to find a solid financial backer. It was just the right timing to start this business,” explains Myhre.

The trend continued and a few months later, in November, yet another branch was opened in Vancouver, British Columbia followed by a fourth branch in Calgary, Alberta, this past May. “To date, from the start of the company, we’ve done business with over 140 customers in Alberta and British Columbia,” he says. Canadian Pump & Compressor, headquartered in Calgary, Alta. is affiliated with National Pump & Compressor, which is headquartered in Beaumont, TX, and through that partnership, has over 30 service centres throughout the United States as well. Through this affiliation, the team is able to offer unmatched support and service on both sides of the border.

Although the company’s expansion has been rapid, management has been careful to grow organically, without taking any risks of becoming unsustainable.

Today, the company has grown to over 20 employees, and each service centre includes a business development specialist, at least one mechanic, and one rental coordinator. The mechanic is responsible for maintaining the equipment and keeping it to specifications with a 51-point checklist; Myhre feels that the standard to which all of the rental equipment is maintained differentiates the company from its competition. The rest of the team comprises drivers, electricians, field 80 B.C. Oil & Gas Report • 2014

installers and management who also offer sales and assistance to clients. The company also has a fabrication facility in Alberta where it manufactures its own brand of diesel pumps, which are, Myhre proudly announces, “the highest performance centrifugal pump that is available on the market, for a very competitive price. Our products have applicability across many, many business sectors and we’ve done business literally from Vancouver to Baffin Island in the short time that we have been in business.”

When the company began, its focus was on diesel pumps from Pioneer Pump – a private-label submersible pump line – small generators and a small range of light towers. Since then, the company has seen a great deal of demand for larger generators and larger submersible pumps. The team was able to meet those demands by adding more power to its product line.

“We have a lot more big power in our fleet then we did when we started,” he explains. “We also have a more diverse range of pumps; we now carry small sump pumps for residences, small gas pumps for the construction industry. We started off with around 50 units in our rental fleet and we now have over 500 units for rent.”

Today, the company has grown to over 20 employees, and each service centre includes a business development specialist, at least one mechanic, and one rental coordinator.

In fact, the company is the primary rental distributor for Pioneer Pump in Canada. “The Pioneer pump is a real gamechanging pump,” Myhre says. “It is a centrifugal diesel pump that we package here in Canada, and is proving to be much more hydraulically efficient than other pumps on the market.

This means clients are able to get more flow and pressure while using less energy, making it a more efficient way of pumping.”

Other examples of more efficient pumping systems are the BBA well-point pumps, of which Canadian Pump & Compressor and National Pump & Compressor have the exclusive rights to sell in North America.

Canadian Pump & Compressor also performs many turnkey installations for clients in the field. For example, when a mu-

Canadian Pump & Compressor has high expectations for its staff, focusing on teamwork and getting anyone with multiple talents to lend a hand wherever it may be needed.

There is no job too tough (or too dirty) for any member of the staff; even the company owner will get his hands dirty when he is needed. nicipal pumping installation needs to be upgraded, the company can deal with the project from top to bottom. This includes the piping, the electrical, and the proper pumps for the volume of water or sewage. All contractors chosen for turnkey work are experienced in the industry and are known as being able to produce quality, hassle-free work.

Canadian Pump & Compressor has high expectations for its staff, focusing on teamwork and getting anyone with multiple talents to lend a hand wherever it may be needed. There is no job too tough (or too dirty) for any member of the staff; even the company owner will get his hands dirty when he is needed.

The company has the ability to react to the changing demands of its clients, even if it means purchasing a large amount of brand new equipment. With the slogan, “Whatever you want.

Whenever you need it. Whatever it takes”, Canadian Pump &

Compressor strives to take customer service to the next level as it focuses on delivering value from all the areas of the business.

Canadian Pump & Compressor plans to continue building its strong presence in the oil and gas industry, municipal markets, sewer bypass markets, construction, pipeline construction, mining and agriculture, as well as continuing to expand the business through building relationships with its customers.

“We don’t take any business for granted, and we are just extremely aggressive about how we go after the market,” Myhre shares. “Which takes us back to our tagline – the ‘whatever it takes’ philosophy that is on the back of every one of our business cards.”

Previously published in the November 2013 issue of Business in Focus magazine. Reprinted with permission. S

Doing whatever it takes to help get the job done.

Following our recent acquisition of the second largest pump rental company in North America, United Rentals has further expanded its specialty offerings to meet customers’ diverse business needs. Our team is proud to provide the best equipment, tools and solutions in the industry.

You’re building the future. We’re here to help.™

UnitedRentals.com/Pumps | 800.UR.RENTS Aerial | Earthmoving | Material Handling | Pumps Power & HVAC | Trench Safety | Tools | Technology © 2014 United Rentals, Inc.

B.C. Oil & Gas Report • 2014

81

Mud innovation

By Blain Davis

M

y first day on the job, Colin Schmidt, vice-president of TerraPro, looked at me and said, “In one aspect, what we do is easy, we put wood on dirt. On the other side of the coin, what we do is hard. Anyone can put wood on dirt but we need to stay ahead of the competition in every aspect of the game so we can keep our customers loyal.”

TerraPro provides market-leading terrain protection and remote-access products and services for the energy sector in Canada and around the world. The company started out in 2007 with a loader, a few hundred mats, and a lot of long days. Getting that “wood on dirt” for customers when and where they needed was what TerraPro built their name on.

When word got around that TerraPro did what they said they would do, more customers came calling. The company was able to purchase more inventory, equipment, and build more experienced crews.

Flash forward a couple years. TerraPro is still working long days but began to become “innovators of mud”. The company pressed hard on the gas pedal with what is known as “limited partnership”. Investors were able to invest in the

82 B.C. Oil & Gas Report • 2014

purchase of mat inventory and receive a healthy return from the rental rates charged out on those mats. This allowed the company to build up their inventory quickly and take a bigger bite into the market.

Staying ahead of the competition is the key to the success of the company from the people TerraPro hires, the product we provide, and the pricing we charge. The company has continually tried to hire not only the best people laying the mats in the field, but also the very best people to support what is happening in the field through accountants, mechanics, sales, inventory and right down to the person answering the phone. In 2011, the company was named one of Canada’s top new companies (No. 15) by Profit magazine; in 2012, it was named one of Canada’s fastest growing companies (No. 9), again in 2013 (No. 4), and has just been awarded the number-four fastest-growing company again for 2014 by Profit magazine.

Being an “innovator in mud” in the highly competitive energy industry may not sound glamorous, but TerraPro continues to lead the way.

“We’re buying the best equipment that is out there to be reliable on the

site. We’re making a high-density composite mat and selling it not only locally but into the international markets,” says Schmidt. Last year, the company also built a state-of-the-art mat-washing plant from the ground up that hasn’t turned off since it first fired up. They also developed an inventory tracking computer program that not only is being used by TerraPro to track mats from job to job, but some of the largest energy companies in Canada are using it as well. As Schmidt considers the future of TerraPro, he states, “The company has developed relationships that go far beyond a mat job with our customers.

We are trying to grow a culture within the company that says that it’s not just about putting ‘wood on dirt’, but one that gets to know our customers, cares for its employees, and give back to the community that we’re working in … but as soon as we get comfortable, is the day we become the second phone call instead of the first.”

Find TerraPro at www.terraprogroup.com 1.855.255.6287 info@terraprogroup.com S

INNOVATION Temporary Roadways and Work Surfaces for the Resource Industry PRODUCT We source the highest quality product for sale and rent with several staging yards all over western Canada.

PEOPLE We work to clearly understand your needs, confirm our understanding with you and then go about our business delivering the solution.

PRICING We strive to offer you the greatest value for your matting dollar.

MAT TRACKING We can help you know where your mats are anytime and anywhere.

• Oak • Hybrid • Fir • CLT • Rig mats • Composite • Tanks • Experienced crews • Safe • Professional • Courteous

• Fair • Competitive • Predictable

• Online • Real time • Customized reporting

2012

200

855.255.MATS (6287) toll free

www.terraprogroup.com

Corporate Office #200 Brentwood Professional Place 48 Brentwood Boulevard Sherwood Park, AB T8A 2H5

855.255.MATS (6287) toll free Email: info@terraprogroup.com

A portion of Mat Rental revenue goes to support Breast Cancer research.

LandSea Camp Services: Providing your remotE accommodation and catering solutions

I

n 2010, LandSea entered into the remote camp and catering market led

by Michael Coyne, marine accommodation and catering specialist with 17 years of past experience operating firstclass resorts and workforce camps on the coast of B.C. From a modest three camps in 2010, LandSea has grown to manage multiple projects in all sectors year-round. LandSea provides turnkey solutions, establishing modular land-based and floating camps for projects in the oil and gas, renewable energy, major construction, and mining sectors across Western Canada.

Working from the ground level up, LandSea and the developer or prime contractor will design a specific accommodation and catering package to meet the projects’ needs. This process flows through a system starting with land development and site permitting all the way to full camp mobilization. LandSea provides a fundamental construction component and manages all aspects of ongoing operations throughout the project to ensure that both the client and their workers receive the highest level of customer care.

LandSea is equipped and prepared to meet the growing demands of the ac84 B.C. Oil & Gas Report • 2014

commodation and catering supply required to serve the oil and gas workforce industry in Northern Canada. This past year, LandSea has been operating four floating camps in the Prince Rupert area for mining and marine projects, as well as servicing major oil and gas companies in Northern B.C. and Alberta. LandSea is capable of providing floating workforce camps to coastal LNG projects and landbased modular camps servicing both pipeline construction and drilling programs.

LandSea is proud to be in partnership with several First Nations throughout the province, and has established long-term relationships encouraging sustainable economic development, subcontract opportunities, job training and education, and ultimately, growing capacity for these local communities.

This year, LandSea launched “Stepping Stones”, a camp catering and accommodation services training program aimed at supporting youth or entry-level workers to gain positions at remote camps. Upon successful completion of the course, students will have a basic understanding of the remote camp industry and will have developed the skills required to gain immediate employment.

On LandSea’s horizon includes expanding existing operations in Fort St. John and a calculated endeavour into the oil and gas market in Alberta. LandSea will provide turnkey solutions to some of the hundreds of medium-sized projects coming up over the next few years.

“What we create is an environment where crews look forward to coming back, whether it be at the end of their day or after their break,” says Michael Coyne. “LandSea hires staff based on high qualifications, but more importantly, on their guest service experience to ensure the guests staying with us are genuinely comfortable and feel well taken care of.”

LandSea’s commitment to conquering unique challenges, engagement in communities, and the ability to work in many different industries are just a few reasons why LandSea has become a proficient remote camp service provider.

With the oil and gas industry flourishing, an abundance of newly proposed clean energy, mining and construction projects, LandSea looks forward to continued success on land or sea. S

Prior preparation

By Sarah Conkin, Alpha Safety Ltd.

“M

an down! Man down!”

There are few things you will hear on a jobsite that induce the instant adrenaline rush and requirement for action than these words evoke. Whether it’s a diabetic with low blood sugar, an H2S gas emergency, or equipment malfunction, an immediate response is required. Depending on the emergency and the worksite, a first-aid attendant and/or an H2S safety supervisor is likely to respond in accordance with the ERP in place. You entrust your life and the lives of your coworkers to the professionals hired to respond in times of emergency, and rightly so. Unfortunately the truth is, as in most industries, that levels of competence can vary greatly.

At Alpha Safety we believe that prior preparation is the key to success in an emergency. All our medics receive on-thejob training with an experienced medic

before we send them out in the field.

They are coached through the many different scenarios they may encounter in the field, and have 24-hour access to professional medical staff should a situation arise where they have questions regarding a critical treatment. They are taught to drive for the road conditions, and are not sent out to a jobsite until they have met all of the performance requirements. We also cross-train our medics in seismic, service rig, drill rig, construction, mining, gas plants and forestry.

Ultimately we focus on hiring medics who are progressive in training, and are passionate about what they do. We avoid high-turnover rates, and work hard to keep a loyal and successful team of medics.

Alpha Safety accomplishes this by focusing on delivering an effective service, and managing growth at a responsible rate.

In the event that emergency personnel

are not immediately available to respond to an emergency, do you and your coworkers have the training necessary to save the life of an injured worker, or do you know what to do in case of an H2S incident?

Alpha Training Solutions, a division of Alpha Safety Ltd., is the largest, privately owned safety training company in Northern British Columbia, with as many as 8,000 students annually. It is located in Fort St. John, B.C., but is also capable of providing on-site courses to remote communities and facilities.

Alpha Training Solutions has been established in Fort St. John for over 15 years, and provides qualified instructors with life experience in what they teach.

Alpha Safety Ltd. and Alpha Training Solutions – train for life and reduce the impact of risk and liability on your worksite – prior preparation does pay! S

FIELD MEDIC

AND H2S SUPERVISION

24 HOUR DISPATCH

1 855 870 1199

8703 - 101 Avenue Fort St. John, BC, V1J 2A5 PH: 250-785-7035 E: dispatch@alphasafety.net

TRAINING

www.alphasafety.net

FIRST AID, H2S, INDUSTRIAL, DRIVER & OUTDOOR COURSES TOLL FREE 888 413 3477 www.alpha-training.ca

9803 102 Street, Fort St. John, BC V1J 4B3 PH: 250-787-9315 | FAX: 250-787-8839 E: receptionist@alpha-training.ca

86 B.C. Oil & Gas Report • 2014

A DIVISION OF ALPHA SAFETY LTD.

Flexpipe Systems as a tool in low-impact pipelining

By Glynn Pearson, MBA – account manager, Flexpipe Systems

O

ver our first decade of full commercial sales, Flexpipe Systems has enjoyed enormous growth with our corrosion-resistant pipelining system. The proven reliability of our products has them used in numerous oil and gas service applications. Over the last couple of years a new trend has emerged using spoolable composite pipeline materials in trenchless pipelining projects.

The major drivers are increased stakeholder concerns around land clearing, ground disturbances and construction remediation. The advent of low tillage and no tillage farming techniques means farmers aren’t remediating residual low spots from pipeline trenches; instead, they are damaging their valuable equipment. In some sensitive areas, disruptions of the landscape can cause breaks in eco-systems and migratory paths that take decades to recover. There are greater regulatory burdens and costs to clearing forested land and managing waste. The cost and level of complexity associated with even small-diameter pipelining projects is growing exponentially. The answer for an increasing number of Flexpipe clients is to forego digging altogether.

In the past, trenchless technologies, alternately known as horizontal directional drilling (HDD), were typically used for the shortest distance possible under an obstacle like a road or a body of water.

From a cost point of view, HDD was only seen as a viable alternative to traditional methods in high-density areas, but the economics of HDD are improving considerably. Recently, we’ve seen Flexpipe customers adopt HDD for large portions, or in some cases, entire gathering systems.

An ongoing example is a Flexpipe client pipelining near community pasture

88 B.C. Oil & Gas Report • 2014

A reel of FlexPipe Linepipe being pulled across a community pasture.

Photo by J.Mapletoft, Flexpipe Systems.

land in Saskatchewan. It became apparent that disturbing this pasture land was going to be extremely difficult or impossible, so the producer asked for and received permission to HDD beneath the pasture. Over the last six months, nearly 90 kilometres of Flexpipe product has been installed without disturbing any of the protected area. Last year in North Central Alberta, a producer was having trouble finding affordable, timely, safe and environmentally acceptable landclearing services. The answer was an HDD installation of over 70 kilometres of gathering and water injection systems.

A particular source of pride to this client was that the low-impact trenchless technique actually cost them less than traditional pipelining methods. The project was an environmental showcase for the producer.

Almost any pipelining material can be used for HDD, but Flexpipe offers some key advantages. A spoolable product means hundreds, even thousands, of metres can be placed on a very small

piece of land. Stick products require a large drag area to assemble prior to being pulled back by the drill stem. Flexpipe has a particularly strong fitting system allowing for reels of pipe to be connected together above ground then pulled subsurface without reducing maximum pull forces. In favourable soil, one customer successfully pulled over two kilometres of Flexpipe in one run. It would be a rare landowner who would choose several days of a large crew pipelining across their land over drill pits 2,000 metres apart.

All in all, hundreds of kilometres of Flexpipe have been installed with minimal ground disturbance, whether as a remediation method using failed steel lines as conduit or taking advantage of the latest advancements in HDD to pull vast distances with tiny ground disturbance. Working closely with our clients and their contactors, Flexpipe has built a strong practice in this exciting technology and see it as one of our largest growth areas for the future. S

CORROSION-RESISTANT LINEPIPE

Flexpipe Systems’ spoolable composite linepipe products are ideal for use in Canada. Operating temperatures of up to 82°C, flexibility and minimal equipment requirements make Flexpipe Systems the answer to your next pipeline project.

flexpipesystems.com

Making the earth move for over 50 years

V

.E. Brandl Ltd. is a family-owned business based in Fort St. John, B.C. that has been delivering quality service, equipment and earthmoving expertise to the oilfield construction industry in northeastern B.C., northwestern Alberta, and the Yukon since 1961. A respected name in the industry, V.E. Brandl has built an outstanding reputation over the years, priding itself not only on the quality of its work, but also on its integrity and concern for employee safety and the environment.

Originally founded by Vic Brandl, sons Barry, Ron, and Kevin are now running the company.

V.E. Brandl has approximately 90 employees, many of them long term, and its supervisors and operators bring a wealth of experience to the job. In addition to its people, V.E. Brandl’s large fleet of modern equipment gives them the ability to handle a wide range of projects. V.E. Brandl maintains its fleet of equipment according to one of the most thorough maintenance programs in the industry in order to prevent downtime on job sites.

When maintenance or repairs need to be done in the field they have six fully rigged

service trucks, which are able to be mobilized quickly to deal with the issue.

V.E. Brandl also prides itself on its commitment to safety. In its recent annual Certificate of Recognition (COR) audit, the company scored the rarely awarded perfect score of 100 per cent.

V.E. Brandl has been innovative in modifying equipment so that it’s easier for operators to get on and off our crew trucks and equipment because over the years that’s been one of the major causes of LTA’s. V.E. Brandl has modified its service truck decks with a flip-out platform that workers can stand on, so they don’t have to balance themselves on the tracks to fuel up. The company has also installed guardrails at the back of its trucks to ensure that operators use the proper steps when climbing in and out of their service trucks, along with adding steps and handholds to all of its equipment, in addition to the ones provided by the manufacturer.

V.E. Brandl also seeks to ensure employee safety inside its vehicles. In response to concerns and documented cases of people being injured by being struck by objects inside a vehicle, V.E.

Leading safety instrumentation suppliers • Emerson Net Safety toxic/LEL/ultrasonic & optical flame detection • Emerson Net Safety oil mist/airborne particulate detection • Federal Signal visual and audible signals • Industrial Control Links programmable ethernet SCADA controllers, RTUs, HMI’s and distributed I/O • Sonim intrinsically safe celluar phones • Sensear intrinsically safe communication headsets • Cordex explosion-proof digital cameras Toll Free: 1-888-388-1592 | www.microwatt.com | mwsales@microwatt.com Fort St. John, BC Suite 118, 10704 97 Ave, Fort St. John, BC, V1J 6L7 Phone: (250) 785-8876 | Fax: (250) 785-8788

90 B.C. Oil & Gas Report • 2014

BCOilandGas2013.indd 1

Calgary, AB 2721 Hopewell Place NE, Calgary AB, T1Y 7J7 Phone: (250) 785-8876 | Fax: (250) 785-8788

08/12/2013 1:23:25 PM

Brandl had a local plastics company build containers which are attached to the back seat of its crew cabs using the existing seatbelts along with bolts on the floor, which allow for objects such as lunchboxes and thermoses to be secured during travel. All trucks are equipped with in-vehicle monitoring systems which helps track where employees are at all times, in addition to ensuring that they drive within the speed limits. V.E. Brandl personnel have taken the AMA collision avoidance in to further ensure their safety while on the roads.

With shale gas development, the energy industry has changed the way it operates, and V.E. Brandl has changed with it. With many multi-well pads measuring 250 metres by 200 metres or larger, along with larger plant sites and waterholding ponds, it is no longer efficient to move the material with dozers as was the norm in the past. In response, V.E. Brandl has been constantly adding to their scraper fleet as they have found this to be the most efficient way to move material these distances. The current fleet consists of 18 Caterpillar motor scrapers, 15 627’s, and three 631’s. In order to further increase the efficiency of their crews, they are now able to offer Topcon GPS control for their motor scrapers, dozers, excavators and graders, which allows them to finish projects to precise tolerances with greater speed than would otherwise be possible.

Looking forward, V.E. Brandl sees a long-term future for shale gas in northeastern B.C. And the company is looking forward to serving the energy industry for many years to come.

Please contact for more information: V.E. Brandl T: (250) 785-2916 T: (403) 835-2916 E: info@vebrandl.com www.vebrandl.com S

1.800.558.0881 tastructures.com

SDI “TILT” Desanders range expanded

By Craig McDonald P.Eng., vice-president, technical services

S

pecialized Desanders Inc.’s (formerly Specialized Tech Inc.) provides engineered solutions for the removal of sand and particulate matter from produced well fluids. Industry acceptance of its multiphase desanding equipment has fuelled rapid expansion of the company’s fleet of patented equipment. With pressure ratings up to 41,370 kPa (6,000 psig), SDI now offers a range of TILT Desanders from 12 through 24 inches in diameter.

Removing sand without a pressure drop is one of the many benefits offered

by SDI. Temporary separation of the multiphase flow allows a stratified flow to develop within the desander. Gravity separation causes the sand to drop through the liquid and collect in the desander.

The clean discharge stream then passes through the chokes, valves and any other process equipment with reduced risk of erosion and equipment damage.

SDI’s desanding product line is continuing to evolve like it has since its introduction to the market in 2001. Larger 92 B.C. Oil & Gas Report • 2014

units featuring greater capacities and higher pressure ratings are examples of this evolution. The current market for desanders is growing due to the popularity of horizontal, multi-stage stimulated, liquids-rich gas wells.

Installed at the wellsite, SDI desanders remove fracturing proppants and produced sand from the production fluid, preventing uncontrolled or accidental releases of hydrocarbons that might occur with erosion damage. A typical design targets 95 to 98 per cent removal of all particulate, 150 microns or larger in diameter. At lower flowrates, particles as small as 60 microns may be removed without any filter media. SDI’s engineers model the performance for each desander installation to ensure that the equipment chosen will provide optimum performance over an expected range of operating conditions.

With the sand removed, the liquid and gas phases recombine as they leave the desander, ready to feed into the gathering infrastructure under pressure. Notably, it

is not necessary to flare early gas production in order to remove the sand, yielding higher revenues, as well as achieving regulatory compliance. Wells can be put on production sooner, immediately following testing, without concerns about equipment damage, disturbance to the environment or nearby land-owners, especially at sites where production contains hydrogen sulphide (H2S) gas.

SDI desanders function effectively over a wide range of flowrates. Sized to work with high initial rates, they are also able to handle the higher gas phase velocities that develop as production continues and flowing pressures drop. This allows the same equipment to remain in service despite changing conditions. For wells with continuing sand production, it is not uncommon for the desander to be on the well for extended periods of time, with some installation durations reaching years.

In 2013, Specialized Desanders Inc. introduced a patented, TILT desander with increased sand removal efficiency.

Throughout 2014, the TILT desanders being added cover several pressure classes (ANSI 600, 1500 and 2500) and come in a variety of sizes including 12, 20, and 24 inches in diameter. TILT desanders have become the new standard design for SDI. They feature a modified geometry that, as the name suggests, incorporates an angled vessel. Computer modeling has confirmed that the TILT models offer increased operating efficiency. Supported by more than 15,000 unit-months of desanding service experience, the proprietary engineering design software used to model desander performance has been validated and calibrated, ensuring that the SDI-recommended desander employed will perform reliably throughout the expected range of operating conditions.

All TILT desanders are fully NACEcompliant for use in sour service, and are fully compatible with SDI’s web-based Sand Sentry monitoring system.

“With their improved performance, STI expects its future fleet will predominantly be TILT desanders”, says Chris Hemstock, president, STI. Features • Pressure ratings: o 9,930 to 41,370 kPa • Temperature ratings: o – 29°C & -45°C • ASME Section VIII, div. 1 ABSA-registered • NACE MR0175 for sour service • No pressure drop • No emissions • Minimal service/clean-out time • Eliminates flaring • Removes sand and other particulates such as asphalts and free precipitants • Early production • Frac sand clean up • No freezing issues • ABSA Pressure Equipment Integrity Management System (PEIMS)

For more information, contact: Specialized Desanders Inc., Multiphase Desanding Services www.desanders.com • SDIInfo@desanders.com Calgary Office: #111, 3355 –114 Ave. SE, Calgary, Alberta T2Z 0K7 Bus: (403) 233-2040 • Fax: (403) 266-0948 Field Offices: Grande Prairie, AB: (780) 897-8140 • Fort St. John, B.C.: (250) 793-5140 Three Hills, AB: (403) 443-545 S

SPECIALIZED DESANDERS INC. Multiphase Desanding Services SPECIALIZED DESANDERS INC. Multiphase Desanding Services

www.desanders.com

SPECIALIZED DESANDERS INC. has provided an engineered solution associated with sand production in high pressure oil and gas wells since 2001. With SDI’s equipment, operators save money and keep their wells producing no matter how challenging the conditions.

SDIInformation@desanders.com Head Office in Calgary, Alberta........................................... (403) 233-2040 Field Offices in Three Hills, Alberta .................................... (403) 443-5453 Grande Prairie, Alberta ........................................................ (780) 897-8140 Fort St. John, B.C. .................................................................. (250) 793-5140

B.C. Oil & Gas Report • 2014

93

A promising partner for a long-term future

G

as Drive is an industry-leader in field operation capabilities with a well-balanced portfolio of after-market services for gas engine compressors and power genera-

controls products in Canada. Our product portfolio features gas

tors, electric power packaging and sales, gas compression and

their high efficiencies, low emissions, durability and high reli-

electric power rental fleet, field and shop retrofit, optimization

ability, these engines run on methane from virtually any source:

services, and operations and maintenance.

system natural gas, biogas, landfill gas, coal bed methane, sew-

Our extensive network of over 25 service locations in Canada

age gas, and combustible industrial waste gases.

and the northern United States allow us to rapidly mobilize

Gas Drive is capable of being the sole provider from the start

engines, generators, compressors, spare parts and experienced mechanics to any job site, 24 hours a day, year-round. We have distribution and manufacturing facilities in Calgary and Leduc, Alberta; and Denver, Colorado. With access to over $40 million in on-hand inventory, and more than 200 fully equipped service trucks, we can be anywhere our customers need us, fast. Best of all, Gas Drive customers gain access to our unmatched knowledge from more than 300 trained and certified mechanics.

Gas Drive is the authorized distributor and service provider of Waukesha engines and parts in Canada and the Northern United States, and Jenbacher and MAN engines and parts in Canada. As well, we are the authorized distributor for Altronic ignition and

Our extensive network of over 25 service locations in Canada and the northern United States allow us to rapidly mobilize engines, generators, compressors, spare parts and experienced mechanics to any job site, 24 hours a day, year-round.

engines ranging from 37 kW – 9.5 MW of power designed for stationary and mobile, continuous duty operations. Known for

to the finish of the project– providing turnkey solutions to suit any needs, such as civil work, concrete, steel structure installation, grid interconnection, generator installation and commissioning. Whatever the job, we always strive for enhanced performance, higher uptime and longer service life to meet design standards and codes.

From full turnkey solutions to individual packages, Gas Drive has a variety of offerings such as rentals and retrofit capabilities.

Through our rental fleet, customers can rent or lease compression or electric power equipment, portable compression, flue gas compression units, and take advantage of the flexibility and extensive options to optimize their equipment. Gas Drive is known for our ability to find innovative and cost-effective ways to modify or upgrade equipment to maximize efficiencies through our retrofit offerings, such as re-cylindering, stage changes, driver change outs, modularization of existing equipment, and sweet-to-sour conversion of existing equipment. No matter where you need us, our customers will receive excellent technical and application support whether in the field or at a Gas Drive facility.

Gas Drive is committed to providing top quality support and the best engine applications possible throughout the equipment’s life-cycle – from the initial scoping of our customer’s needs, through the bidding and ordering phases, installation and commissioning, to years and decades of maintenance, parts, overhaul or engine exchange and warranty fulfillment. By working with Gas Drive, our customers are put in the driver’s seat to decide which integrated solution will meet their needs to get the job done right and on time. S

94 B.C. Oil & Gas Report • 2014

CONFIDENCE YOU CAN COUNT ON MAN ENGINES TURNKEY CONSTRUCTION RETROFIT INVENTORY RENTALS WAUKESHA OPERATIONS AND MAINTENANCE ALTRONIC

OPTIMIZATION JENBACHER

ELECTRIC POWER

SERVICE

Gas Drive supports our customers in the day-to-day business to help them succeed in today’s competitive marketplace.

When you work with Gas Drive, you draw on our 40-year legacy of capability, experience and customer relationships to help you succeed on your next project. We have a lineup of superb gas engine compressors and electric generators, compressor retrofit capabilities, field and shop services, turnkey construction and electric power packaging for the energy-producing sector. No matter the turnaround schedule, Gas Drive maximizes the uptime of your equipment.

We go the extra mile to deliver the highest in quality, power and efficiency. Approach your next project with confidence – the kind you feel when you work with Gas Drive.

1.403.387.6300 info@gasdriveglobal.com www.gasdriveglobal.com

Safely home

Diversified Transportation Ltd.

D

iversified Transportation Ltd., a subsidiary of Pacific Western Transportation, is proud to be one of Canada’s largest privately owned, people transportation companies. Our founder R.B. Colborne often commented that “our people are our greatest asset – it is because of them that we are the leaders in the industry.” We recruit, train, and retain only the best. In our quest for success, we have the commitment to provide exceptional service and ensure the safety of our passengers, co-workers, and the public.

Diversified Transportation is driven by safety in all of our operations. We have a critical responsibility to care for our passengers, employees, and the public in all of the communities that we serve. We strive for continuous improvement in our health and safety program, and are proud to have achieved our COR (Certificate of Recognition) for our company.

Diversified Transportation endeavours to remain a leader of, and innovator within, the industrial employee transportation sector. No job is too big or small. We can offer smaller group shuttles with smaller vehicles, but also specialize in large group movement 96 B.C. Oil & Gas Report • 2014

for corporations, teams, tours, conventions, and special events.

Our mission statement is to exceed customer expectations by employing talented people who share in the dedication of a company committed to safety and service.

Diversified Transportation has provided, and will continue to provide, transportation services for such companies as Shell, Encana, WorleyParsons, Thompson Creek Endaco Mines, CN Rail, Ledcor, Walter Energy, Peace River Coal, Huckleberry Mines, Spectra, KBR & CIMS, just to name a few.

Diversified Transportation has a fleet of various-sized units, which include Suburbans, 14-passenger Mercedes Sprinters, 28 passenger units, 40 passenger units and 55 passenger coach units. With the size and variety of our fleet, as well as the ability to draw more units from our parent and sister companies, Diversified

Transportation will be equipped to handle your company’s transportation needs.

All of our units are equipped with mobile two-way radios to meet the communication requirements of the service.

Mobile radios provide instant access to drivers, dispatch and security, and are instrumental in dealing with any potential situations. We also have units that are equipped with lavatories and air conditioning. We always operate with a spare unit factor relevant to the operation to ensure minimum interruption to the services.

We here at Diversified Transportation are excited about the many opportunities that are knocking on B.C.’s doorsteps and look forward to an exciting future for the province. We look forward to maintaining our positive relations with our current customers and will strive to forge new relationships with future partners. S

A comprehensive solution for workforce logistics management

W

orkforce transportation has become an increasingly important component of resource development projects, which require a large number of workers with a broad range of skills, both to develop the infrastructure and to operate it on completion. North Sands Air Workforce Logistics was formed in 2013 by the owners of Flair Airlines Ltd. to provide comprehensive workforce transportation solutions to a range of companies operating in the natural resource development and heavy construction industries in Western Canada.

“The ability to efficiently and cost-effectively manage the transportation and delivery of skilled workforces is a key component in the successful operation of many remotely located major projects,” says Chris Lapointe, president of North Sands. The company is exclusively focused on the needs of clients in this sector. North Sands employs a team of experienced professionals who understand the projects they service and workforce transportation dynamics, and who are able to provide start-to-finish trip planning, management and tracking services. Backed by Flair Airlines Ltd., and with an established network within the air carrier community in Western Canada, North Sands can manage the movement of both large and small workforce complements to project sites serviced by international, regional or local airports.

98 B.C. Oil & Gas Report • 2014

Core capabilities • Centralized program management: Single source for comprehensive workforce logistics project planning and operations.

• Aircraft procurement & vendor management: Ability to draw on a wide variety of aircrafts from multiple vendors.

• Aircraft scheduling & gauging: Transportation schedules that are tailor-made to fit your projects’ unique personnel requirements.

• Data tracking & reporting: Careful review of on-time performance, passenger loads, yield management, etc. to identify areas for potential increased efficiency and cost savings, and to provide tracking for project KPI’s.

• Safety & quality assurance: Safety assurance and oversight of all transportation vendors with safety management system integration.

• Reservations & inventory management: North Sand’s reservation system has been specifically designed to meet the unique needs of workforce-related transportation.

Fleet options With North Sands, you will have the ability to flex gauge across a variety of aircraft types and vendors, allowing you to mix and match resources together to fulfill demand and in-

crease reliability. For example, in the event an aircraft is unable to make a trip, an alternative will be readily available to step in.

North Sands offers a diverse range of aircrafts from seven to 158 seats. All aircrafts sourced by North Sands operates under Transport Canada regulations and have been successfully audited by multiple aviation quality-assurance organizations to ensure the utmost level of transportation safety and operational quality.

Customized solutions A key benefit of North Sands is the ability to customize your workforce transportation schedule to meet specific operational needs. This includes your choice of departure and arrival airports, with access to private boarding areas at most locations that are away from congested main terminals. Additionally, North Sands offers custom scheduling for effective crew rotations.

The advancement of newer technologies can also increase safety. Some airlines have invested in flight data monitoring (FDM or FOQA-Flight Operations Quality Assurance) to enhance the oversight on both mechanical systems and personnel. Though significantly expensive and not required by regulation, this technology has a proven track record of improving

performance by providing more detailed feedback of flights to those companies using it.

Safety, flexibility, and customization can truly be the differentiators between service providers, along with their responsiveness. Ultimately with any contract, you are buying the people, not the plane. North Sands is a group that is responsive to your needs and is able to customize your schedule at a moment’s notice without sacrificing safety and efficiencies.

For more information about North Sands, visit http://www.northsands.ca or call (587) 885-1043. S

COMPREHENSIVE WORKFORCE LOGISTICS • • • •

Centralized Program Management Aircraft Scheduling & Procurement Reservations & Inventory Management Safety & Quality Assurance

WWW.NORTHSANDS.CA

1 587-885-1041 B.C. Oil & Gas Report • 2014

99

Soil stabilization – An emerging technology

T

he oil and gas service sector has seen numerous technology changes and innovations over the years, and the environmental sector is no different. Summit believes that innovation is paramount to the continued, long-term success of our industry.

One on-going problem our industry faces is with respect to stabilizing soils for road and lease construction and for dust suppression. Weather, erosion, frost heaving, washout, traffic, and more create challenges operationally and economically.

There are many solutions for soil stabilization and dust suppression, including soil cement, polymer products, recycled asphalt, and cement to name a few. Summit has tested and compared a variety of products and has selected environmentally friendly, biodegradable liquid copolymers used to stabilize, solidify, and suppress a variety of soil types.

Depending on the application and soil type, this product is applied to the soils and as the water dehydrates, the copolymer molecules coalesce and form bonds between the soil or aggregate particles creating a durable, flexible, and water-resistant matrix. Under a microscope it would look like a network of tiny fibers connecting and linking particles together. The key advantage of this solution originates with its long, nanoparticle molecular structure that link and cross-link together. Once cured, the product becomes completely trans-

parent, leaving the natural landscape to appear untouched. Comparatively, existing stabilization solutions, such as soil cement, are a higher cost solution with potential reclamation challenges down the road. For dust suppression, CaCl and CaMg are not environmentally friendly and though a cheap solution, not a responsible choice.

Through our R&D, we feel there is a significant opportunity to reclaim this product in-situ. Summit has put our products through rigorous testing to determine if in-situ reclamation is achievable and to ensure these products do not have any adverse effects on our environment. Within this testing, there are concurrent tests being done to determine the impacts of hydrocarbons,

Weather, erosion, frost heaving, washout, traffic, and more create challenges operationally and economically.

Applications for our suite of products include, but are not limited to, lease roads, leases, well pads, laydown yards, heli pads, parking areas, pathways, construction sites, forestry and agriculture roads, municipal roads, plus many others. Additional benefits include the reduction or elimination of compaction and admixing. Application rates are prescribed based on the soil type, available aggregate and operational requirements. For dust suppression, in most cases, the application can be made on an annual basis without having to provide maintenance or re-application.

This provides us the ability to provide a cost-effective solution while providing a stellar product that is extremely durable, environmentally responsible, and cost effective.

acid, and condensates on the finished product. All of these results combined can provide a “win-win-win” situation for producers, service companies, and municipalities.

The biggest foreseeable challenge hinges on Mother Nature and the abbreviated window for the stabilization of soils. For dust suppression, it is not an issue, but to achieve optimal stabilization there are installation conditions which need to be met. The product has to be applied properly, in favourable conditions (above five degrees Celsius) and has to dehydrate completely for the bonds to properly form and result in an effective solution. In Western Canada this leaves a window of about five months (June-October).

Summit

continues

push

the

head on. Working in partnership with our suppliers and customers, we are carrying out continuous R&D and trials to bring leading-edge and environmentally responsible solutions to these problems. S

Please recycle 100 B.C. Oil & Gas Report • 2014

to

boundaries to meet these challenges

LAE brings robust solutions for transfer of hazardous fluids through innovation

By Jack X. Liu, PE, Ph.D, president of Liu Advanced Engineering, LLC (LAE)

L

ui Advanced Engineering (LAE) has extensive experience with pipelines, from onshore to offshore, and from shallow water to deep water.

Here are some facts about LAE: • In 2009, LAE quantitatively linked the crude-oil pipe damage in Mississippi river delta to mudslides and to Hurricane George.

• In 2010, LAE’s voluntary solution helped seal BP’s well in the Gulf of Mexico. A cap with open valve was essential for avoiding gas hydrate and for setting onto the crippled blow-out preventer (2010).

• In 2012, LAE co-authored a monograph entitled “Seismic Design of Buried and Offshore Pipelines”.

• In 2014, LAE’s proprietary relaxing Liquefied Natural Gas (LNG) transfer system was the most cost-effective solution that resists natural disasters, such as earthquakes and tsunamis.

LAE has foreseen the vulnerability of existing LNG transfer systems. As a matter of fact, a 10-metre-high tsunami triggered by a strong earthquake in Japan in March 2011 devastated the Sendai LNG Terminal. The tsunami destroyed everything on the ground except for the underground storage tank.

LAE has developed and certified a relaxing LNG transfer system (patented and patent pending). The system has the following components (as shown in Images 1 and 2): an underground tunnel and a loading shaft; a high end near the storage tanks, and a low end at the loading shaft; a transfer line supported on stationary rollers inside the tunnel, preferably with the offshore end free; flexible hoses for connection with ship manifolds; a transfer line having a pipe-in-pipe configura102 B.C. Oil & Gas Report • 2014

tion with superior insulation in the annulus.

This system is isolated from storm surges, tsunamis, ice gouging and heat waves. Resisting the natural disaster is only one merit of the system. There are five more distinctive merits.

1) Automatic vapour removal: Typically storage tanks are located perhaps 10-metres above the sea level, while a LNG tanker needs 15 metres of water.

A pipeline can be installed following this natural contour. With a slope and an open high end, a circulation loop forms within the pipe in which liquid flows down by gravity, and vapour flows out automatically along the top of the pipeline and through an opening at the high end, as shown in Image 3. The system is kept at cryogenic temperature during idle periods with minimum control.

2) Low stress: The pipe stress is reduced by 50 per cent through a free end.

There is no concern for fatigue and the system can be shut down frequently.

3) Lower boil-off gas (BOG): The system can reduce BOG by up to 80 per cent during idle periods using superior insulation materials and eliminating pumping heat.

4) Enhanced safety: In a pipe-in-pipe configuration, the outer pipe serves as a secondary LNG containment in case LNG starts leaking through the inner pipe wall. Regarding water ingression, there are three barriers. They are: the tunnel, inert gas inside the tunnel, and external coating of the outer pipe. In addition, if water enters the tunnel, it will flow down to the lower end and can be drained with a pump.

5) Significant cost reduction: The initial investment is reduced by at least 25 per cent through eliminating trestle and eliminating recirculation line and pump. It also reduces operating cost by about 20 per cent through minimizing boil-off gas and maintenance.

The system can be used for loading a LNG tanker docked along a shoreline or offshore. The system is applicable for both receiving terminals and loading terminals.

LAE can be reached by phone at 888316-6675, or by other means as listed on its website: www.laengr.com. LAE welcomes any challenging issues/projects in fluid transfer with pipelines. LAE treats every project as its own. S

11211 Katy Freeway, Suite 450, Houston, TX 77079 Tel: (888) 316-6675 | LAE@laengr.com

For all your needs

Raven Oilfield Rentals

R

aven Oilfield Rentals has been operating in northeastern British Columbia and northwestern Alberta since 1988. Our head office is located in Fort St. John, B.C.,

trailers for the transportation of large quantities of access mats.

with branch offices in Fort Nelson, B.C., Grande Prairie, and

to build, modify, or customize just about anything for its cus-

Calgary, Alta. Raven Oilfield Rentals is one of the largest inde-

tomers’ needs. They have just completed their new 1,600 barrel

pendently owned rental companies in the area. We have an ex-

(250-cubic-metre) horizontal fluid tanks. These tanks are lined,

tensive inventory of exploration, production, construction, and

insulated, come with a double pass four-inch steam coil, and

pipeline equipment available to rent year-round.

large number of four, eight, and 12-inch valves.

Raven is one of the largest suppliers of access mats in north-

Raven Oilfield Rentals is COR certified and is registered with

ern B.C. and Alberta, with a large inventory of wood mats avail-

both the HSE Registry and ISNetworld. Raven strives to be a

able for rent or sale.

leader in the oil and gas sector with outstanding service, excel-

The company can take care of all your transportation and mat

lent safety programs, and quality staff. Working with the B.C.

installation needs with our fleet of specialized equipment. Our

Safety Council, the Canadian Society of Safety Engineers, and

fleet of loaders, skid steers, excavators, six winch tractors with

the Workers’ Compensation Board of B.C. and Alberta, Raven

trailers and five-bed trucks can move or transport any mats or

Oilfield Rentals is committed to providing a safe work environ-

equipment safely and efficiently. Raven also has three Super B

ment whether it be in the field, in the shop, or at the office. S

104 B.C. Oil & Gas Report • 2014

All equipment is operated by trained, quality professionals.

Raven is able to utilize its 6,000-square-foot fabrication shop

OPERATING IN NORTHERN BRITISH COLUMBIA SINCE 1988

New

250 m3 (1600 bbl) horizontal fluid tanks

Raven Oilfield Rentals is a full service mating company with rentals, sales, transportation, install & removal, and inventory services. With over 20 years of experience in the Oil and Gas Industry, be assured that any job will be done safely and effectively.

RENTAL EQUIPMENT FOR ALL OILFIELD APPLICATIONS • GARBAGE BINS • 400 BBL TANKS • RIG MATS • GENERATORS • MAN LIFTS • TRAILER MOUNTED FUEL TANKS (DOT APPROVED) • LIGHT TOWERS • SHALE TANKS • MUD (FLOC TANKS) • 24’ OFFICE TRAILERS • 36’ MEETING TRAILERS • WASHROOM TRAILERS • COMBO TRAILERS (GENERATOR, FUEL TANK, LIGHTS)

PO Box 6238 Fort St. John, BC V1J 4H7 P: (250) 787.8474 | F: (250) 787.3097

www.ravenoilfield.com Toll Free: 1.800.799.7188

Size doesn’t matter to ENTREC

W

hen it comes to the size of a heavy-haul load, the ENTREC Corporation can handle it all – big or small!

As a case-in-point, ENTREC was able to offer a customer significant cost and time savings by shipping 14 fully completed Inclined Plate Separator (IPS) units from their point of manufacture in Lloydminster, Alta. to an oil sands site north of Fort McMurray. Fully assembled, the IPS units are over 43-feet tall, with a diametre of over 37 feet – well in excess of the Alberta Transport permitted dimensions of 24feet wide and 29-feet, six-inches tall.

Given the enormous dimensions, the project was initiated with multiple indi-

vidual components for each unit shipped separately and assembled on-site. Unfortunately, this led to significant cost inflation, quality issues given the uncontrolled fabrication environment, and scheduling difficulties in dealing with a highly congested site, which created multiple delays.

ENTREC knew they could safely and efficiently solve these problems, and worked closely with both its customer and prime regulatory authority (the Alberta Transportation Department) to plan the route and obtain all pre-approvals to ship the 14 remaining IPS units to site fully assembled. And, at 41-feet, six-inches tall and 37-feet, six-inches wide, ENTREC was trusted to move multiple loads that were

ACTION HEALTH & SAFETY SERVICES

by-far the highest and widest to be moved over the highway in Alberta history. ENTREC subsequently invested approximately 2,500 hours over a 12-week period to plan the move in every detail – including public notification, traffic management, utility line lifts, railway crossings, and 22 bridge traverses (which each required engineering study and in-transit monitoring). Other notable elements included the election of night-only travel to minimize disruption and maximize safety considerations, and the decision to ultimately train two IPS units per movement. Each units were driven by a prime mover pulling a modified 12-axle hydraulic trailer and pushed by two additional tractors; a pilot vehicle led and followed the convoy, and at least two RCMP escorts at all points – dedicated back-up also accompanied, including a mobile repair truck and an ad-

MEDIC / PARAMEDIC

ditional prime mover. Currently, eight of

SAFETY SERVICES

and successfully to site, with the remain-

SECURITY PROFESSIONALS

ENTREC is a leading provider of heavy

the 14 IPS units have been delivered safely ing convoy scheduled for early August. lift and heavy haul services with offerings encompassing crane services, heavy haul transportation, engineering, logistics, and

Toll Free: 1-888-782-8204 Phone: 250-782-8202 actionservices.ca 106 B.C. Oil & Gas Report • 2014

support. ENTREC provides these services to the oil and natural gas, construction, petrochemical, mining and power generation industries.

Go to www.entrec.com for more details. S

HEAVY LIFT DRIVEN BY PEOPLE

HEAVY HAUL

ENTREC is the leading provider of heavy lift and heavy haul services to industry in western Canada • crane and rigging • heavy haul transportation • engineering • logistics and support As an employee-owned company, the ENTREC team is committed to providing exceptional service with a focus on operational excellence – we deliver the safest and most cost-effective crane and transportation solutions for every customer.

ENTREC is best-positioned to meet the most challenging heavy lift and heavy haul needs!

ACHESON 780.962.1600 BONNYVILLE 780.826.4565 CALGARY 403.777.1644 CALGARY-BUSINESS DEVELOPMENT 587.955.9183 DAWSON CREEK 250.782.2728 DICKINSON, ND 701.364.3688 FORT MCMURRAY 780.790.0279 FORT NELSON 250.774.7638 FORT ST. JOHN 250.785.5750 GRANDE PRAIRIE 780.814.2189 LEDUC 780.980.0906 PRINCE RUPERT 250.624.6802 TERRACE/KITIMAT 250.635.6802 WATFORD, ND 701.483.8363 WHITECOURT 780.706.7111 TSX:ENT www.entrec.com

British Columbia lift specialists

Full-service lifting solutions

A

ll-West Crane & Rigging Ltd., a family-run business out of the centrally located city of Ques-

and gas industry. Owners Barb and Jerry

supplied up to 12 cranes to assist in the

van Halderen have grown their business

construction of the Northwest Transmis-

from a local forest industry service pro-

sion Line, a 344-kilometre, 287-kilowatt

nel, British Columbia, has been busy ex-

vider into a company that can handle

transmission line north of Terrace. Other

panding their fleet and scope of services

major projects across multiple indus-

major projects include providing cranes

ahead of development in the B.C. oil

tries. Most recently, All-West Crane has

for all-steel erection work at Taseko’s

108 B.C. Oil & Gas Report • 2014

Gibraltor Mine for their major mine expansion.

Customer service and safety are the primary goals of the company, so when the transmission line customer continued to require more and more lifting equipment, All-West Crane responded by obtaining four new Link-Belt Rough Terrain cranes in rapid succession and rented two additional cranes to facilitate an efficient jobsite. They went so far as to hire an additional eight operators. All of this took place within a four-week period, showing their ability to be flexible in responding to customer needs. With safety and efficiency in mind, they chose to purchase and rent Link-Belt cranes because of their ease of mobilization and state-of-the-art safety features.

Phone: 250-992-5592 Cell: 250-983-9293

www.allwestcrane.com CRANE & HAULING SERVICES

In addition to new cranes, All-West Crane has recently acquired two tractor units, and four trailer units, which affords them quick and efficient mobilization of their cranes.

Complementing their crane services, All-West Crane offers 3-D lift planning; a lift planning software that allows them to easily evaluate all lift parameters and

Featuring the 130 Ton Rough Terrain Crane – the largest RT in BC

can even create 3-D renderings and animated lift simulations. By creating 3-D drawings and simulations, operations personnel can get a visual of the lift that is to be done, which ultimately increases efficiency and safety on site. Their software even evaluates the most efficient and cost-effective crane for the job.

Rounding out their scope of services, All-West Crane has become a distributor for DICA Outrigger Pads, Caldwell Lifting Solutions, and Diversified Lift Wise Products.

With their current fleet and scope of services, All-West Crane has the ability to see projects through from start of construction, to completion, and then on to maintenance and shutdown work. They

LET OUR TEAM RAISE YOUR NEXT PROJECT TO NEW HEIGHTS

SPECIALIZING IN ROUGH TERRAIN CRANES FOR THE MINING, CONSTRUCTION, and OIL & GAS INDUSTRIES

are a full-service lift provider. S B.C. Oil & Gas Report • 2014 109

First in safety and service

Industrial Scaffold Services LP

I

ndustrial Scaffold Services LP is a full-service scaffold and environmental containment provider servicing the oil & gas, pulp & paper, energy & utilities, mining and marine sectors for over 25 years.

We have built a strong and dedicated team that manages a diverse and recurring base of large and reputable industrial customers all over Western Canada. Our head office is in the town of Crofton, B.C. on Vancouver Island, where it was founded almost three decades ago. Al Brown, president and founder, is still very active in the business and everyday aspects of the company.

Our management and scaffolders ensure the highest safety standards in the industry. This sets us apart, as we meet all your expectations in your most demanding production and delivery needs. Project consultation, ongoing communication, mock modeling, and specification review ensures our safety and yours, and in turn, keeps the project on target and on budget.

Industrial Scaffold Services LP is a 24-hour full-service scaffolding company that maintains a substantial inventory for material rentals. Our material is delivered, erected and dismantled by specialists and highly qualified field supervisor personnel that maintain a safe and efficient work environment for our employees, your employees, and the successful completion of any project.

Our teams can design the scaffolding from the ground up, around, over, hanging or down to suit each project’s needs.

Whatever the job, the challenge, or the complex specifications, our men and women, from apprentices to journeyman to management, successfully complete shut down’s, maintenance, and new projects.

Safety and the environment is a core business value at Industrial Scaffold Services LP. Our shrink-wrap specialists are the best in the business and meet all HSE requirements. This is the best way to contain potential hazards from entering the environment. It can also protect workers from the environment itself, such as strong winds, cold, and other extreme weather conditions.

Some of our recent projects in the oil and gas industry include: • Spectra Energy – Highway flow splitter and kobes compressor upgrade • Progress Energy – Lily Lake refrigeration plant • CNRL – West stoddart • Keyera – Cariboo plant upgrade These are a just a few of our projects. Please visit our website for more great pictures and information about Industrial Scaffold Services L.P. at www.industrialscaffoldservices.com. S 110 B.C. Oil & Gas Report • 2014

Van Houtte Coffee Services – a unique solution to all your beverage needs

V

an Houtte Coffee Services is known for its rich Canadian history for delivering high-quality coffees and coffee equipment service to a variety of workplaces in a variety of industries. Drawing upon nearly a century of master roasting and 30 years of café-bistro experience, we have grown to become the largest coffee services network in all of Canada, serving up over one-million cups of coffee per day.

Unlike our competitors, Van Houtte Coffee Services is a fully integrated coffee service provider. From sourcing beans, to roasting, to manufacturing brewing systems, to distribution and service, Van Houtte Coffee Services is part of the most integrated coffee service company in Canada.

With our unique total coffee solution, we provide an exciting selection of gourmet coffees and other beverages, as well as the most complete line-up of renowned Van Houtte coffees in Canada. Our palate-pleasing portfolio also includes some of the most popular brands available on the market. These include Timothy’s, Green Mountain, Barista Prima, Tully’s, and Starbucks. We also offer an impressive variety of teas, hot chocolate, specialty beverages, iced products, and allied products.

Van Houtte Coffee Services offers cutting-edge brewing equipment that responds to every specific business brewing need. Our line-up of brewing equipment ranges from traditional brewing systems and high-capacity brewers, to single-cup brewers and specialty-coffee brewing systems. We pride ourselves on offering our customers only the best in brand-name coffee brewing equipment, such as WMF, LavAzza, Keurig®, Bunn, and Newco.

As a firm supporter of sustainability, Van Houtte Coffee Services integrates Fair Trade and eco-friendly initiatives into all of our business practices. We do this by offering a wide range of Fair Trade, and Organic coffees and teas, and single-cup brewers that reduce overall waste. We offer a wide range of coffees and products that are regulated under Fair Trade, Rainforest Alliance, and Organic certifications. We also offer eco-friendly auxiliary products, and water-filtration systems that help minimize employee dependency on office bottled water.

And, when it comes to service, our quality of service is unmatched in the industry. At Van Houtte Coffee Services, we assign an in-house trained dedicated service team to each and every client to ensure that our customers’ needs are looked after in a timely and professional manner. We recognize that different organizations have different requirements and it’s rarely the case that “one size fits all”. That is why we introduced our total coffee solution, which offers customers a wide range of service options from simple call-in order placements to convenient online ordering.

Van Houtte Coffee Services has branches in Victoria, Coquitlam, Cranbrook, Kelowna, Kamloops, Prince George, and Terrace/Kitimat, as well as across the country. Whether your branches are large or small, national or local, or a different kind of enterprise like an office or a cafeteria, Van Houtte Coffee Services has precisely the right equipment, marketing support, and service you’re looking for. S

Van Houtte Coffee Services is a fully integrated coffee service provider. From sourcing beans, to roasting, to manufacturing brewing systems, to distribution and service, Van Houtte Coffee Services is part of the most integrated coffee service company in Canada.

B.C. Oil & Gas Report • 2014 111

For all your testing needs, Peregrine Pressure Testing Ltd. has you covered

P

eregrine Pressure Testing Ltd. has been operating in Northeast B.C. and Northwestern Alberta since 2006. The company currently operates a fleet of 14 pressure-testing units with all their units equipped with computerized digital charting and a recording system and a back-up system with manual gauges and Barton chart recorder. All of their units are equipped with a heated and well-lighted operators cab with lots of room for the operator and a couple of customer reps to oversee any testing if they choose.

Peregrine specializes in all types of hydrotesting, BOP tests, formation leak-off tests, formation integrity tests, micro fracs, DFIT tests, pipeline and facility testing. All BOP test units come

equipped with a full line of test subs, cup testers and cross-over subs, and can haul up to 2,000 litres in three separate compartment tanks.

They also operate units for completions and pumping jobs that require higher pumping rates and volumes of fluid. One unit is capable of 90 litres per minute at pressures of up to 105,000 Kpa, and has a tank capacity of 6,000 litres in two compartments: 2,000 litres and 4,000 litres. Their larger unit is capable of pump rates of 275 litres per minute at 69,000 Kpa, or can be set up for 375 litres per minute at 42,000 Kpa. Both of these units are also equipped with a centrifugal pump for line filling or fluid transfer at rates of up to 1,500 litres per minute. This unit also has a

Communications solutions for the north coast

Coast Mountain Wireless

I

n the northwest, communication isn’t as easy as having a cellphone.

With the mountainous terrain, snowstorms, and dense forests, it can be difficult to send out a simple message. As infrastructure in the northwest expands, so does the need for communication. At Coast Mountain Wireless, we take this into account, and work to deliver the innovative technology you need for all conditions. Our goal is to help bring safety and security to all of the various types of clients and projects.

Our technology is meant to work where other methods of communication can fail. We know that we live in an area where conditions can go from

112 B.C. Oil & Gas Report • 2014

great to treacherous in a matter of minutes. We work to make sure that even in the worst of conditions, you have security.

At Coast Mountain Wireless, we offer a variety of products, such as: • Two-way radios • Portable and fixed repeaters • Satellite phones and messengers • Microwave radio • Digital trunking systems • Satellite Internet • Wireless broadband Whether it is to keep contact between a crew, or for safety purposes while driving, two-way radios are the way to go. There are options for handhelds,

three-compartment tank capable of holding 12,000 litres of fluid. They also have one unit with a three-compartment 8,000-litre tank for facility work and small pipeline jobs. It is equipped with a 35,000 Kpa pump capable of 35 litres per minute.

With their computerized digital charting and recording system, they are able to chart and record pressure at the test unit, remote pressure, volume pumped, pumping rate and temperature. Their system is also able to poll data at fourtimes per second if required.

For all your hydro testing needs, feel free to give Peregrine a call at (250) 787-8662. S

as well as truck radios in both analog and digital format. There is a variety of brands, channel capacities, and designs to suit any needs.

Our portable and fixed repeaters are designed to handle all of the weather that our region can encounter. When it comes to safety, you don’t want distance to be an issue. Our repeaters are designed to extend radio coverage.

You can’t always predict what can happen when you’re out of cell reception. Our satellite phones and satellite messengers make it so you’re never out of reach, no matter what the situation.

They give the option to check in, as well as get help in the worst of scenarios.

At Coast Mountain Wireless, we don’t just sell you equipment, we rent and maintain it. Our goal is that our customers don’t just leave satisfied, but stay satisfied. S

YOU WORK IN ALL KINDS OF ENVIRONMENTS.

Toll-free 1.855.638.0577 3650 River Drive, Terrace, BC www.coastmountainwireless.ca

WE’RE WITH YOU.

Coast Mountain Wireless Ltd. is the only authorized Motorola™ two-way radio dealer west of Prince George.

Motorola and the Stylized M Logo are registered in the US Patent and Trademark Office. © Motorola, Inc. 2005.

CMW 2295d (Oil & Gas Report half page).indd 1

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B.C. Oil & Gas Report • 2014 113

Index to advertisers Action Health & Safety Services.........................................................106

Industrial Scaffold Services..................................................................19

Actlabs..................................................................................................73

International Union of Operating Engineers Local 115....................... IFC

Akita Drilling Ltd...................................................................................42

Kitimat..................................................................................................31

All-West Crane & Rigging Ltd.............................................................109

Land Sea Camp Services.......................................................................85

Alpha Safety Ltd...................................................................................86

Lifesupport Emergency Medical Services...............................................7

Aluma Systems.....................................................................................33

Liu Advanced Engineering, LLC...........................................................103

Aurora Park Inn & Suites.......................................................................37

Marmit Plastics Inc...............................................................................43

BC Safety Authority..............................................................................65

Micro Watt Control Devices Ltd.............................................................90

BK Two-Way Radio Ltd..........................................................................63

Muskwa Valley Ventures Ltd.................................................................23

Calfrac Well Service Ltd.........................................................................11

Nira Resources......................................................................................26

Cambridge House International Inc......................................................87

Northern Rockies Regional...................................................................67

Can-Am Geomatics...............................................................................38

Northlands Water & Sewer Supplies Ltd...............................................63

Canadian Pump & Compressor.............................................................81

Northwest Tank Lines Inc......................................................................35

Cappa..................................................................................................26

Pacific Coastal Airlines..........................................................................66

Chetwynd and Area Economic Development.........................................3

Peregrine Pressure Testing Ltd..............................................................17

Coast Mountain Wireless Communications Ltd..................................113

Praxair..................................................................................................64

Compass Bending Ltd...........................................................................28

Progress Energy Canada Ltd.................................................................39

COR Solutions Ltd.................................................................................14

Quality Mat Co......................................................................................27

D&D Insulators Ltd................................................................................46

Raven Oilfield Rentals........................................................................105

D&D Soft Covers Ltd..............................................................................47

Rosenau Transport Ltd..........................................................................13

District of Tumbler Ridge........................................................................8

Society of Petroleum Engineers............................................................69

Diversified Transport Ltd.......................................................................97

Specialized Desanders Inc....................................................................93

Drive Products / Docap.........................................................................10

Summit Liability Solutions.................................................................101

Enform Canada.....................................................................................53

Synergy Land Services Ltd....................................................................29

Entrec Corporation..............................................................................107

TA Structures........................................................................................91

Fabcor 2001, Inc.....................................................................................4

TDB Consultants Inc..............................................................................72

Flair Airlines Ltd....................................................................................99

Terrapro Group of Companies...............................................................83

Flexpipe Systems..................................................................................89

TOG Systems........................................................................................IBC

Focus Surveys.......................................................................................30

Trans Peace Construction (1987) Ltd......................................................5

Gas Drive...............................................................................................95

V.E. Brandl Ltd......................................................................................21

Green Patch Environmental Consulting Ltd..........................................59

Van Houtte Coffee Services.................................................................OBC

Harris Rebar..........................................................................................61

Volant...................................................................................................54

Hazloc Heaters......................................................................................13

Williams Scotsman of Canada................................................................9

114 B.C. Oil & Gas Report • 2014

YAWN. FIELD TECHNICIAN AND OFFICIAL SUPPLIER OF “WHATEVER-IT-TAKES”

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PHONE TOLL FREE EMAIL

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Kamloops: (250) 554-9665 Nanaimo: (250) 753-4107 Victoria: (250) 475-2222

VanHoutteCoffeeServices.com