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SASKATCHEWAN The voice of the oil industry in Saskatchewan.

2014

Publications mail agreement #40934510

www.saskatchewanoilreport.com Keeping rail transportation safe Workforce wanted: How industry is rising to the challenge to meet labour market demands Fraser Institute survey results: Saskatchewan continues to be very attractive for petroleum exploration and development Hydraulic Fracturing Code of Conduct: Industry’s commitment to Canadians PTRC’s HORNET program: EOR research crucial to improving recovery


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Contents

messages – reports – events

Message from the Honourable Brad Wall, Premier of Saskatchewan...................................................................................8 Well-positioned: Saskatchewan’s petroleum industry .......................................................................................................11 Keeping rail transportation safe.........................................................................................................................................14 Fraser Institute survey results: Saskatchewan continues to be very attractive for petroleum exploration and development ..............................................................................................................................................................16 Workforce wanted: How industry is rising to the challenge to meet labour market demands ..........................................20 PTRC’s HORNET program: EOR research crucial to improving recovery and furthering environmentally friendly technologies ........................................................................................................................................................24 Educating the public on oil and natural gas practices ........................................................................................................28 Women bring diversity and expertise to Canada’s oil and gas sector .................................................................................32 Great Plains College dedicated to serving the training and education needs of the industry ............................................36 Saskatchewan resources and maritime transportation .....................................................................................................38 Oil-well reclamation processes across the Bakken .............................................................................................................44 Hydraulic Fracturing Code of Conduct: Industry’s commitment to Canadians ....................................................................46 Flying Dust soars with oil industry partnership .................................................................................................................50 Graham: The ideal partner for oil and gas projects in the region .......................................................................................54 Fitting a square tank in a round hole .................................................................................................................................56 Custom rod strings for maximum production ....................................................................................................................58 Oilmen honoured at 2013 Saskatchewan Oil & Gas Show .................................................................................................60 Finding the right air for extreme environments ................................................................................................................62 Visit the 22nd Williston Basin Petroleum Conference & Expo ............................................................................................64 WellTraxx delivers solutions for Saskatchewan landowners, rural municipalities ..............................................................66 Educating the new breed of energy industry leaders ........................................................................................................68 Seeing the big picture: Using remote sensing for reclamation monitoring .......................................................................70 No place for medical marijuana in safety-sensitive roles ...................................................................................................74 Economic expressway to market .......................................................................................................................................76 Estevan attracting a whole new generation of investors and residents .............................................................................80 D&D Oilfield Rentals: A growing concern ..........................................................................................................................84 RAM Industries Inc. – Custom cylinder solutions for the oil and gas industry ...................................................................86 Sterling Truck & Trailer Sales celebrates 40 years of success ...............................................................................................89 ‘SECUREing’ Saskatchewan ................................................................................................................................................90 Growing with today’s market ............................................................................................................................................92 IFR Workwear Inc. awarded Red Deer’s 2013 Business of the Year award ..........................................................................96 Leader Inn: 100 years of serving hotel guests and the community ...................................................................................98 Flexpipe Systems’ commitment to being local in Saskatchewan .....................................................................................100 Swift Current: A city for 100 years ...................................................................................................................................102 Park Derochie: Trusted partners in oil and gas .................................................................................................................104 Celebrating Weyburn and the growth of an economy .....................................................................................................108 Lots of new technology at the Redvers and District Oil Showcase ...................................................................................110 Kramer Ltd. built to work in Saskatchewan’s oilfields ......................................................................................................114 CAPPA hires new CEO ......................................................................................................................................................116 Penetrators Canada Inc. and the MaxPERF drilling tool technology ................................................................................118 Target Safety Services Ltd. continues strong growth pattern ..........................................................................................121 APEGS: Engineering and geoscience licensees ................................................................................................................124 Swagelok: Choosing the right hose .................................................................................................................................126 The quickest way around .................................................................................................................................................128 Seven straight years of growth and change ....................................................................................................................130 Small-town safety with huge experience: PB&J Safety Consulting .................................................................................132 Oil Boss Rentals Inc.: Dedicated to innovative solutions ..................................................................................................134 Case study: The Flexitallic Change gasket.........................................................................................................................136 Index to advertisers .........................................................................................................................................................136 6

Saskatchewan Oil Report 2014

SASKATCHEWAN Oil Report is published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba, Canada R3L 0G5 www.delcommunications.com President & CEO: David Langstaff Publisher: JASON STEFANIK Managing Editor: KATRINA A.T. SENYK katrina@delcommunications.com Advertising Sales Manager: DAYNA OULION dayna@delcommunications.com Advertising Sales Representatives: ROBERT BARTMANOVICH | JENNIFER HEBERT GLADWYN NICKEL | JIM NORRIS COLIN JAMES TRAKALO Production services provided by: S.G. Bennett Marketing Services www.sgbennett.com Art Director: kathy cable Layout & Design: dana jensen Advertising Art: CAITLYN HAIER | JOEL GUNTER Cover photo courtesy: Government of Saskatchewan © 2014 DEL Communications Inc. All rights reserved. Contents may not be reproduced by any means, in whole or in part, without the prior written permission of the publisher. While every effort has been made to ensure the accuracy of the information­contained in and the reliability of the source, the publisher in no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made 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 R2L 0G5 Email: david@delcommunications.com PRINTED IN CANADA | 04/2014

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Message from the Honourable Brad Wall, Premier of Saskatchewan On behalf of the Government and the people of Saskatchewan, I am pleased to welcome readers to this 2014 edition of the Saskatchewan Oil Report, which details the ongoing development and successes of the communities, companies and organizations that make this industry what it is. And it is, certainly, a significant industry in Saskatchewan. We are Canada’s second-largest oil producer. We will set an oil production record in 2013, breaking the old record set in 2012. We produce more than 480,000 barrels of oil a day and export more oil to the United States than Kuwait. Our oil and gas sales are expected to reach close to $15 billion for 2013. The industry also employs more than 35,000 directly and indirectly. Saskatchewan’s crude oil and natural gas producing industry contributed a significant share of the province’s real GDP in 2012, accounting for about 15 per cent of the total. What does this kind of economic activity mean to Saskatchewan? The answer, in part, was apparent in September 2013 when Saskatchewan’s population surpassed 1.1 million for the first time. Our province’s population is growing faster today than it has in 70 years. A thriving oil and gas industry is 8

Saskatchewan Oil Report 2014

helping to attract tens of thousands of people who feel their futures are potentially brightest here. We have strong job growth and the lowest unemployment rate in Canada, and we have a great quality of life in Saskatchewan. It is a great place to find a job or start a business. It is a great place to work, live and raise a family. Saskatchewan has one of the most competitive investment environments in Canada. The province is ranked as the number one jurisdiction in Canada for oil and gas investment policies, according to The Fraser Institute’s annual Global Petroleum Survey. This is a vote of confidence straight from the industry that tells us we are doing the right things, and moving in the right direction, to ensure Saskatchewan remains competitive not just nationally, but globally as well. There is huge potential for heavy oil in Saskatchewan. The Lloydminster/ Kindersley/Kerrobert heavy oil areas accounted for over one-third of all drilling in 2013 and have also been popular in recent land sales. Continued progress in technological innovation is gradually moving more and more of Saskatchewan’s “in-place” oil to the “recoverable” category. Also, as outlined in Saskatchewan’s Plan for Growth, we

intend to increase innovation and research and development in new technologies. Additionally, recent events are contributing to the positive outlook for the future of Saskatchewan’s petroleum industry. The decision of the National Energy Board’s independent Joint Review Panel to recommend approval of the Northern Gateway pipeline project, subject to conditions, is very encouraging. Increased pipeline capacity in western Canada benefits not only Saskatchewan, but the entire country. In Saskatchewan, it means more jobs and additional investment, as well as royalties that will assist us as we manage our province’s continued growth. There has never been a better time to invest in Saskatchewan. Saskatchewan’s investment climate features competitive and stable royalty regimes, competitive taxes and a supportive regulatory environment. For petroleum investors looking for a good place to do business, Saskatchewan is a sound choice.

Brad Wall Premier


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Well-positioned:

Saskatchewan’s petroleum industry In many respects, Saskatchewan is arguably North America’s “power pack”. No other Canadian jurisdiction can match the diversity of Saskatchewan’s energy resources, or its ability to punch above its weight—with only about three per cent of Canada’s population, the province accounts for 36 per cent of its primary energy production. This is including, but not limited to, uranium, natural gas, oil and coal. Oil, however, is in many respects the star player. Saskatchewan is the secondlargest producer of crude oil in the country (after the province of Alberta), which translates to approximately 17 per cent of total Canadian oil production. At an average production of over 487,000 barrels per day, Saskatchewan takes the number-six spot in North America behind Texas, Alberta, North Dakota, California and Alaska. Approximately 65 to 70 per cent of its crude is exported to the United States, making it a larger exporter to the U.S. (primarily to the upperAmerican Midwest) than the country of Kuwait. About four per cent of U.S. electrical power is generated from Saskatchewan uranium—enough to light up New York City. But perhaps most important of all is not so much what Saskatchewan produces, but the context in which it is produced, and how. Saskatchewan is, above all, a stable supplier of these and other energy sources, with an established and growing reputation for innovation and significant future potential for development. Arguably, a secure North American energy market depends in no small part on continued progress in development of Saskatchewan’s energy resources. It’s no secret that the province’s oil and gas in-

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48.3 billion barrels:

Estimate of Saskatchewan’s conventional oil-in-place, which does not include the unproven potential from oilsands or oil shale

87:

$15 billion:

Approximate estimate for Saskatchewan’s expected oil and gas sales for 2013

65 to 70 per cent: Proportion of Saskatchewan crude exported to the United States

2,433:

6:

Number of horizontal wells drilled in Saskatchewan in 2013, which set a new record

177.9 million barrels:

Saskatchewan’s 2013 oil production, a new record for the province

172.9 million barrels:

The previous record,

set in 2012

40:

Percentage of Saskatchewan’s conventional oil-inplace that is considered commercially unrecoverable with current technology—approximately 42.1 billion barrels

Saskatchewan’s ranking in North America for average oil production per day (over 487,000 barrels) behind Texas, Alberta, North Dakota, California and Alaska

2:

Saskatchewan’s ranking among producers of crude oil in Canada, which translates to approximately 17 per cent of total Canadian oil production

1:

Percentage of the above 2013 production that came from heavy oil reservoirs

Saskatchewan’s ranking among jurisdictions in Canada by the Fraser Institute’s annual Global Petroleum Survey for oil and gas investment policies Photo courtesy: Government of Saskatchewan.

dustry is central to this idea, and central to its economy. Saskatchewan’s oil and gas sales are expected to reach close to $15 billion for 2013, and the industry contributed approximately $1.6 billion in revenue to the provincial economy. The province is just coming off a record year for the industry in Saskatchewan in 2013: oil production for 2013 is 177.9 million barrels (487,400 barrels per day). That’s up from the previous record of 172.9 million barrels (472,500 barrels per day) set in 2012, and it is worth noting that over 40 per cent of that production came from heavy oil reservoirs. Horizontal drilling activity also set a new record, with a total of 2,433 horizontal oil wells drilled in 2013, which was the third-best year ever for total oil well drilling (3,371 oil wells drilled). The impact of activity of this sort in a key economic sector is profound. Saskatchewan is currently experiencing the fastest and most sustained population growth its communities have seen in generations. The province is riding a wave of strong job growth and has posted the lowest monthly unemployment rate in Canada for a full calendar year. On a larger scale, the investment environment in Saskatchewan is currently one of the most opportunity-rich jurisdictions 12

Saskatchewan Oil Report 2014

one can find anywhere in Canada. And Saskatchewan’s energy sector is arguably its star attraction. The Fraser Institute’s annual Global Petroleum Survey currently rates Saskatchewan as the best jurisdiction in Canada for oil and gas investment policies. With such a business environment coupled with resource potential, it is the place to be in Canada for oil and gas producers. Saskatchewan is seeing a real surge in new heavy oil enhanced recovery projects in the recent past, thanks in part to continued progress in technological innovation. In October 2012, Premier Brad Wall released the Saskatchewan Plan for Growth, which sets out the government’s vision for the province for 2020 and beyond. One of the six core growth activities of the plan is to advance Saskatchewan’s natural resource strength through innovation—essentially, to build the next economy. Oil and gas is a major part of the plan. There is an emphasis on continuing to pursue enhanced oil recovery (EOR) and carbon capture and storage (CCS), and to place a priority on research and development of these new, innovative technologies that have significant potential for widespread application elsewhere in the world—not just in Saskatchewan. Agencies like the Petroleum Technology

Research Centre (PTRC) and Innovation Saskatchewan will be at the forefront of this activity, which may provide the means to tap into Saskatchewan’s massive light and heavy oil potential. And that potential is considerable. Saskatchewan’s conventional oil-in-place is estimated at 48.3 billion barrels, which does not include the unproven potential from oilsands or oil shale. Only around 13 per cent (or 6.2 billion barrels) of the province’s 48.3 billion barrels of oil-in-place is considered commercially recoverable at this time. This leaves 42.1 billion barrels, or 87 per cent, unrecoverable with current technology. With regard to the province’s heavy oil resources, the recovery rate falls to less than 10 per cent. Roughly half of the province’s current conventional crude oil resource is composed of heavy oil; the rest is light and medium. This represents an incredible economic opportunity if even a small portion of that was to become recoverable. For example, successes are being experienced in certain thermal projects in the province, where up to 60 per cent recovery is expected. One of the government’s objectives is to increase the amount of recoverable reserves in the province, and to capture as much of the oil-in-place as possible through the application of new technologies.


The provincial government understands a driving principle behind economic development: that it must create the very best possible fiscal and operating environment for business, and then step out of the way. Saskatchewan’s future lies not only in going after new oil with old ideas; but also in going after old oil with new ideas. Much of our potential is effectively a locked door, and all that’s needed is the right key that unlocks and opens this door. The PTRC is one of the entities at the leading edge of our efforts to create that key, and private partnerships are one potential means of conceivably accelerating the discovery and development of such a key. External events are adding optimism to Saskatchewan’s oil and gas outlook. After the Northern Gateway pipeline project received a recommendation for conditional approval from the National Energy Board’s independent Joint Review Panel in December 2013, the U.S. State Department released an environmental assessment the following month in favour of the proposed Keystone XL pipeline project. The National Energy Board had approved the Canadian portion of the proposed pipeline in March 2010, including more than 250 kilometres of pipeline in Saskatchewan. These favourable assessments and the known economic benefits of the project—an important infrastructure initiative that will benefit both nations—have increased the confidence that this pipeline can be constructed and operated in a manner that protects the environment and public health and safety. More broadly, it would mean additional energy security for Canada and the U.S., and additional opportunities to invest in the industry. Such investors would, and should, look to the promise and value in Saskatchewan’s oil and gas industry. Private enterprise, in particular, is seeing Saskatchewan as well-positioned for future development. Fortunately, the provincial government understands a driving principle behind economic development: that it must create the very best possible fiscal and operating environment for business, and then step out of the way.

To this end, it is working hard with its industry associations and stakeholders to ensure that remains the case. It continues to encourage confidence and commitment from the industry. It is something to tell others about when the province seeks new investments and builds on

existing ones as Saskatchewan communities and companies thrive and prosper because of it. Together, these people and businesses aren’t just anticipating a future for Saskatchewan that lives up to the vast potential that exists today—they are creating it. v

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Keeping rail transportation safe By Laureen Kinney, Acting Assistant Deputy Minister, Transport Canada

Almost 130 years after the last spike was driven to open this country’s transcontinental railway, Canada’s economy continues to depend on rail. Some 70 per cent of our surface freight moves by rail transport, including oil and what we define as “dangerous goods.” Last spring, the government amended the Railway Safety Act to further enhance oversight of railway safety. Since then, Transport Canada has accelerated development of a number of regulations, including new administrative and monetary penalties—essentially fines—to strengthen enforcement of the Act. Proposed regulations were also recently published that will require railway companies and road authorities to meet improved and enforceable safety standards for grade crossings. Last summer, the tragic events in LacMégantic, where 47 people lost their lives, demonstrated why we must continue to improve our systems, so that when accidents do occur they do not result in tragic consequences.

In the aftermath of this tragedy, the federal government has taken action, basing our response on three key elements of rail safety: prevention; preparedness and response; and liability and compensation. First off, we have taken regulatory actions. We issued emergency directives on train operations, as well as directing that classification retesting be carried out. We ensured that dangerous goods information be shared with municipal emergency planners and first-responders, and we investigated whether those involved in this incident followed the requirements of the Railway Safety Act and the Transportation of Dangerous Goods Act. Our actions on rail safety also involve working with many federal stakeholders. For example, Minister Raitt asked the Commons Standing Committee on Transportation, Infrastructure and Communities to review the existing state of safety in the transportation of dangerous goods and the use of safety management systems and to report back.

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Saskatchewan Oil Report 2014

Furthermore, Transport Canada has recently received and published reports from three industry-led working groups, which examined factors related to the transport of dangerous goods. We are reviewing these reports on an urgent basis. In addition, the Transportation Safety Board of Canada has investigated the LacMégantic accident, delivered three key recommendations to improve rail safety and will deliver its final report later this year. We are already moving to address these issues proactively. The department is working to hold polluters accountable for accidents so that taxpayers do not have to cover the cost of damages. To this end, Transport Canada is consulting stakeholders on how to strengthen the existing liability and compensation regime for rail so that, in the event of an incident, sufficient resources are available to adequately compensate victims, pay for cleanup costs and protect taxpayer funds. This complements recent consultations by the Canadian Transportation Agency into the insurance coverage it requires of federally regulated rail operators when issuing certificates of fitness. We are also working with the United States and the rail shipping sectors in both countries to develop more sophisticated testing criteria for crude oil shipments and to apply proposed new and more stringent tank car construction standards to a broader range of products. These actions demonstrate how we are working to strengthen the Canadian rail transportation system—a system that statistics show is one of the safest in the world. These measures will reinforce this system and ensure that safety remains a priority. v


Results from the most recent Fraser Institute survey: Saskatchewan continues to be very attractive for petroleum exploration and development By Gerry Angevine, Senior Fellow, the Fraser Institute

Saskatchewan ranks as the most attractive Canadian jurisdiction for upstream petroleum oil and gas investment according to participants in the Fraser Institute’s 2013 Global Petroleum Survey. Saskatchewan dislodged Manitoba from the top spot—regaining the position that it held in 2011. Both provinces have consistently placed either first or second in Canada since 2009. In addition to its favourable performance in the survey, which assesses jurisdictions on the basis of regulatory climate, business environment and geopolitical risk factors, but ignores their resource endowments, Saskatchewan has proved oil and gas reserves close to one billion barrels of oil equivalent or about 30 times greater than Manitoba’s. Consequently, Saskatchewan can be expected to attract considerably more investment in petroleum exploration and development. The 2013 Fraser Institute Survey results reflect responses from 864 petroleum industry executives, managers and experts to questions regarding barriers to investment in oil and gas exploration and production development in 157 provinces, states and countries. The survey questions focus on 16 important factors impacting petroleum companies’ willingness to invest in upstream oil and gas activities (as opposed to downstream activities such as oil refining, transportation and marketing). These include fiscal terms, taxation and other factors affecting the bottom line, such as the availability of 16

Saskatchewan Oil Report 2014

skilled labour; quality of and access to essential infrastructure; the regulatory framework that investors must face, including factors such as the cost of regulatory compliance, duplication, inconsistent interpretation and enforcement of regulations, and uncertainty pertaining to how environmental regulations may be altered; and a number of other important issues such as land-claim disputes, political stability, and security of personnel and equipment. A jurisdiction’s survey score is based on the percentage of negative responses, such as “a mild or strong deterrent to investment” or “would not invest” received with regard to each factor. For this reason, jurisdictions with the lowest scores are considered to pose lower or fewer barriers to investment and, therefore, be the most attractive for investment. Table 1 shows that among Canada’s seven most significant oil and/or natural gas-producing provinces, Saskatchewan, Manitoba and Alberta ranked

first, second or third for the second year in a row. However, some changes occurred in the rankings in addition to Saskatchewan and Manitoba changing places. Newfoundland and Labrador’s improved score allowed it to move from sixth spot to fourth, while British Columbia’s less-attractive score resulted in that province slipping to sixth place from fifth. Nova Scotia dropped to fifth position from fourth. Saskatchewan displaced Manitoba in 2013 for a number of reasons. For example, Saskatchewan jumped from 16th place (of 147) to eighth place (of 157) with regard to the cost of regulatory compliance issue, while Manitoba tumbled from fifth position overall to 22nd place on the same issue. In addition, Saskatchewan achieved an improved score when compared with 2012 with regard to uncertainty pertaining to environmental regulations— moving to top place in the world from 15th position while Manitoba slipped from fifth place overall to 27th place.

Table 1

Survey Results for Selected Canadian Jurisdictions Index values and Canadian Rankings (of 7) Saskatchewan Manitoba Alberta Newfoundland & Lab. Nova Scotia British Columbia Northwest Territories

2013

2012

2011

2010

2009

11.4 (1)

14.6 (2)

17.5 (1)

17.6 (2)

25.1 (2)

16.9 (2)

11.1 (1)

17.5 (2)

12.5 (1)

20.1 (1)

24.5 (3)

21.1 (3)

32.7 (5)

37.7 (6)

47.5 (6)

26.4 (4)

33.8 (6)

32.3 (4)

32.4 (3)

40.1 (5)

27.5 (5) 35.6 (6)

26.2 (4) 27.7 (5)

26.6 (3) 41.4 (6)

33.3 (5) 33.2 (4)

30.4 (3) 37.7 (4)

40.8 (7)

39.6 (7)

64.8 (7)

44.1 (7)

62.8 (7)


Saskatchewan also performed more strongly versus Manitoba than in 2012 on survey questions pertaining to a number of other issues including regulatory inconsistency, uncertainty with regard to protected areas, quality of infrastructure and regulatory duplication. Newfoundland and Labrador’s improved standing mainly resulted from a much-improved score on the labour regulations and employment regulations question. That province also achieved lower percentages of negative responses than in 2012 with regard to the questions dealing with labour availability, uncertainty regarding protected areas, and database quality, as well as in relation to a number of regulatory climate factors such as regulatory uncertainty and the cost of compliance. British Columbia’s less attractive score than a year earlier resulted mainly from greater percentages of negative responses with regard to a number of factors including: political stability (reflecting the fact that a change of government was being anticipated by many pollsters at the time of the survey), disputed land claims, taxation in general, and uncertainty with regard to environmental regulations. Table 2 shows how Saskatchewan improved from 2012 to 2013 on the global scale—achieving third place (of 157) in terms of attractiveness for investment. Manitoba, the only other Canadian jurisdiction among the top 10 worldwide, slipped slightly. Alberta has continued to improve from a global perspective since the provincial government’s announcement in 2010 that it would revert to a royalty structure closely similar to the scheme that was in place prior to the highly unpopular “new royalty framework” that was imposed in 2009. While Saskatchewan, Manitoba and Alberta each appear very attractive for upstream investment on the basis of the survey, participants’ assessments of regulatory climate, business environment and geopolitical risk factors, the rankings don’t reflect the scope of any of the jurisdictions’ known oil and gas

Table 2

How the Western Provinces Rank W orldwide Saskatchewan Manitoba Alberta British Columbia

2013

2012

2011

2010

2009

(of 157)

(of 147)

(of 135)

(of 133)

(of 140)

3

13

11

17

38

9

5

12

8

21

19 42

21 39

51 69

60 52

92 71

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resources. When an indication of the extent of their resources is considered, the results are somewhat different. For example, when grouped with 26 other jurisdictions, each holding at least one per cent of the total proved petroleum reserves of the 138 (of 157) jurisdictions ranked in the survey with at least some proved reserves, Alberta—the only Canadian jurisdiction in the group—is indicated to be the third most attractive jurisdiction for investment, behind only Texas and Qatar. In a group of 41 jurisdictions each holding at least 0.1 per cent of total proved reserves, but less than one per cent, British Columbia ranks as the 14th most attractive jurisdiction for investment according to the 2013 survey. In a third group comprised of 70 jurisdictions with yet smaller reserves, where all of the remaining Canadian jurisdictions fall, Saskatchewan is in second place, after Mississippi but ahead of Kansas, Alabama and Manitoba, which fall in third, fourth and fifth place, respectively. Clearly, Saskatchewan and Manitoba both have very attractive rankings compared with most of the jurisdictions in this group. Saskatchewan’s high ranking both overall and within the group of jurisdictions with relatively small reserves reflects a number of very positive factors. For example, survey respondents indicated no concerns whatsoever about investing in the province of Saskatchewan on the basis of five of the 17 factors

addressed in the survey: political stability, security of personnel and equipment, quality of the database, fiscal terms, and uncertainty with regard to environmental regulations. Moreover, the province scored very high with respect to all other factors, except disputed land claims on which it ranked approximately in the middle of the group of 157 jurisdictions. In order to maintain its position as one of the most attractive jurisdictions for upstream investment, Saskatchewan will need to ensure that its oil and gas royalties remain highly competitive. Further, the cost of regulatory compliance and uncertainties with regard to environmental and other regulations must continue to be minimized to ensure that the province’s favourable regulatory climate does not deteriorate. In addition, efforts will be required to defuse investors’ relatively high level of concern with regard to the barrier posed by land claim disputes. The Fraser Institute is a non-profit research and education organization. The full report on the results of the 2013 Global Petroleum Survey may be downloaded free-of-charge at: http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/global-petroleumsurvey-2013.pdf. The 2014 survey will be launched during the summer and results will be available early in 2015. v

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Workforce wanted: How industry is rising to the challenge to meet labour market demands By Tim Banman

When it comes to the oil and gas labour market in recent years, the story is always the same: industry cannot find enough qualified professionals and labourers to meet demand. In short supply and high demand include power and petroleum engineers, mechanical and instrumentation technicians, heavy-duty equipment mechanics, welders, insulators, crane operators, millwrights, machinists, steamfitters and pipefitters, among other occupations. Whether in the service sector, conventional exploration and production, oilsands or pipelines, industry has more jobs than it can fill. Enter the Petroleum Human Resources Council (“the Council”). The Council and its partners have set out to investigate the nature of industry’s labour market demands and offer solutions for meeting the needs of tomorrow. In its 2013 report, The Decade Ahead: Labour Market Outlook to 2022 for Canada’s Oil and Gas Industry, the Council found that by 2022, low-growth and high-growth scenarios will add 2,600 to 3,450 industry jobs in Saskatchewan by 2022. Adding to the challenge, Saskatchewan boasted the lowest unemployment rate in Canada in 2013, below four per cent. Driven by increased activity in the Bakken region and an uptake in heavy oil production around Lloydminster, oil and gas jobs accounted for 11,605 direct jobs in Saskatchewan in 2012. Depending on market diversification efforts, total industry hiring activity in Canada will range from 125,100 to 149,800 by 2022. Including direct, indirect and induced jobs in construction, 20 Saskatchewan Oil Report 2014

Employment benefits of investments and activities within Canada’s oil and gas industry. From The Decade Ahead: Labour Market Outlook to 2022 for Canada’s Oil and Gas Industry.

manufacturing, transportation, professional and other services, the oil and gas industry will support 894,100 to over a million jobs in Canada, including 40,900 to 46,000 in Saskatchewan. According to the Council, chronic unfulfilled jobs are slowing economic growth. Furthermore, the retirement of a generation of skilled oilfield workers will impact dramatically—and soon. The average age of the oil and gas industry’s workforce is 40 and attrition is expected to reach 23 per cent by 2022. The lack of current enthusiasm for oil and gas work from youth presents another obstacle. Combined with a three per cent natural turnover rate, industry has its work cut out just trying to keep up with growth. “The biggest issue that confronts the entire industry and trickles down to the drilling companies is the retirement and pending retirement. That’s going to hit everybody faster than they realize,” Carla Campbell-Ott, Council executive director, explains. The Council says labour market demands can be alleviated in part by con-

Carla Campbell-Ott, executive director of the Petroleum Human Resources Council.

necting Canadians with available jobs, including targeting under-represented labour pools and workers in provinces with higher unemployment rates. Giant strides have been made towards placing Canadians where the job market is located in recent years. Fort McMurray hosts the second-highest concentration of Newfoundlanders off the island, Campbell-Ott notes. “The mobility of workers is already taking place, but when you look at some pockets of unemployment, it would be great to see those diminish and for people to either get skills in the right occupations or move,” Campbell-Ott reflects. For Canadians living outside of oilproducing areas, the lack of knowledge


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about the oil and gas industry can hinder recruitment. Often, capable individuals are unaware that skills they possess could transfer to high-paying oil industry jobs, something the Council hopes to change with increased “energy literacy.” They are reaching out to career counsellors and immigration services to promote “energy literacy” by providing information about the oil and gas industry, what occupations are available and what skills are required to land a high-paying job. “The whole skills mismatch may actually be alleviated by understanding transferability,” Campbell-Ott says. “People have skills all across Canada potentially that could transfer to good-paying jobs.” Exploring the transferability of skills potential recruits already possess, whether they live in Winnipeg, the East Coast or elsewhere, is a vital strategy for meeting long-term labour market needs. When the pine beetle invasion threatened the B.C. forestry industry, a pulp and paper mill closure left hundreds of skilled workers without jobs. The Council partnered with local employment and education stakeholders to explore transferability of skills between forestry and oilsands. The Council found many transferable skills with about 200 individuals, and found placement for around 90 workers in the oilsands industry who took minimal additional training. Many of the former forestry industry workers now commute to work in the oilsands, avoided EI and at the same time, are helping to ease critical labour market demands. “There is great opportunity for transferability between pulp and paper and oilsands occupations, specifically power engineers and process operators,” Campbell-Ott explains. “Choosing to fly in and fly out to Fort McMurray allowed for workers to continue to work and support their families and homes in Campbell River. Examples like that are successes. That shows you where you can connect Canadians with jobs, where you can take EI candidates or displaced workers and are able to match their skills to needs elsewhere. That’s ideal.” Beyond recruiting Canadians, industry is meeting labour needs with recruitment of skilled immigrants and temporary 22

Saskatchewan Oil Report 2014

Canada’s Oil and Gas Industry Employment Outlook to 2022. From The Decade Ahead: Labour Market Outlook to 2022 for Canada’s Oil and Gas Industry.

foreign workers (TFWs). While industry needs to focus on securing skilled immigrants to provide a stable, long-term labour supply, TFWs will continue to fill a role for the foreseeable future not only in direct oil and gas jobs, but also in the service sectors required to support oil and gas. As Campbell-Ott notes, TFWs contribute considerably in construction and other supporting industries, and without servicing industries, oil and gas production would be negatively impacted. Federal budget initiatives like the Canada Job Grant, which provides up to $15,000 per person for skills and apprenticeship training for in-demand jobs, First Nations grants for youth training, as well as promotion of education in highdemand fields can also help address labour requirements. The Council notes that employers are able to attract more employees by exploring retention strategies beyond compensation. “It’s easy to get someone through the door; it’s harder to keep them,” Campbell-Ott says. Since merging with Enform in 2013, the Council has gained insight into how improving safety can improve retention. For instance, drilling industry turnover is 400 per cent, meaning employers have to hire four workers to keep one. High turnover can affect overall implementation of safety protocols. The merger has helped tackle safety issues by bringing together resources to address workplace safety and improve retention strategies. Recruiting First Nations employees to fill industry jobs will be critical to meeting labour demands. The Council recently compiled HR Trends & Insights Report

on Aboriginal Employment in Saskatchewan’s Oil and Gas Industry, a report on Aboriginal employment in Saskatchewan to address the lack of uptake in available jobs. The report finds that employers gain success when they are able to build long-term relationships of trust with First Nations communities. “The engagement of aboriginal workforce is done though trust. Those companies that are successful engaging aboriginal workers are those that have spent the time. It’s not a one-way street. It has to be mutually beneficial,” Campbell-Ott summarizes. Reporting on Labour Market In addition to the HR Trends & Insights Report on Aboriginal Employment in Saskatchewan’s Oil and Gas Industry mentioned above, PHRC plans to release the following labour market research reports into trends and outlooks in the spring and summer of 2014: HR Trends and Insights: Supply of Canadian Apprentices and Trades for Select Oil and Gas Occupations Consolidated Construction and Operations Oil Sands Labour Demand Outlook to 2023 Labour Market Outlook to 2023 for Canada’s Oil and Gas Industry Labour Market Outlook to 2023 for Alberta’s Oil and Gas Industry Workforce Diversity in Canada’s Oil and Gas Industry Labour Market Outlook to 2023 for Saskatchewan’s Oil and Gas Industry For more information, visit: www.careersinoilandgas.com. v


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PTRC’s HORNET program EOR research crucial to improving recovery and furthering environmentally friendly technologies Research into enhanced oil recovery (EOR) has been crucial for the development of Saskatchewan and Alberta’s oil deposits for decades. Innovative technologies— from froth treatment extraction of oil sands in the 1960s through to the successful deployment of advanced waterflood methods and Steam Assisted Gravity Drainage (SAGD) in heavy oilfields in the ’70s and ’80s—have allowed the two provinces to turn what were once inaccessible deposits into full-fledged energy reserves. The Petroleum Technology Research Centre in Regina, Saskatchewan, was founded in 1998 with an eye to furthering these technological successes by conducting enhanced oil recovery research, development and deployment with a particular focus on the province’s heavy-oil deposits along the border with Alberta. Many of the wells in this part of Saskatchewan experience returns as low as five per cent of the oil in place, so even doubling this low recovery rate could mean billions more barrels of oil. “The PTRC was formed to do two things, really,” says Ken From, the company’s new CEO who joined the PTRC in January 2014. A former VP at SaskEnergy, and past president of the Association of Professional Engineers and Geoscientists of Saskatchewan, From brings with him a significant knowledge of the challenges facing Western Canada’s oil and gas industry. “[The] PTRC’s first priority is to facilitate collaborative research to develop new technologies for the oil industry that 24 Saskatchewan Oil Report 2014

improve recovery, while at the same time lessening the environmental impacts of production. The second purpose was to develop the capacity within the province of Saskatchewan to conduct such research here—to attract and develop highly qualified researchers to build our universities and research community.” HORNET: EOR INNOVATION The PTRC’s Heavy Oil Research Network (HORNET) is at the heart of its portfolio and has included an ongoing series of projects aimed at improving recovery rates from post-CHOPS (cold heavy oil production with sand) reservoirs. This has included advanced modeling of existing reservoirs using 3D imaging and— through its research partnerships with the University of Regina and the Saskatchewan Research Council—developmental work on solvents and surfactants to overcome the challenges within such reservoirs. “Water production and the creation of gaps—or wormholes—within reservoirs have been common industry issues, particularly in the Lloydminster area,” notes From. “We’ve had some success over the past number of years helping to characterize these reservoirs and understand how wormholes develop.” Waterflood is a basic staple of enhanced heavy oil recovery, though with different parameters and methods and to varying degrees of success. Recognizing the process’s almost universal application, the PTRC funded a project with the Saskatch-

Ken From, CEO of the PTRC.

ewan Research Council that created a database of all major waterfloods in Western Canada to provide operators with specific details of successful and unsuccessful floods and the geological characteristics of individual sites. One of the PTRC’s industry partners—which operates heavy oil wells outside of Canada— has found the information contained in this database crucial in making decisions about its own reservoirs. ADVANCING FIELD APPLICATION “We’re at the point,” From suggests, “that our focus on reservoir characterization and waterflood optimization is coming to a head. We’ve begun to move testing to the field with a technology that may prove important for improving recovery from post-CHOPS reservoirs—microsensors that help us to look right into the formation.” A field test in 2012 in the Lloydminster area saw the successful passing of blank microsensor motes from an injection to a production well in a heavily “wormholed” reservoir. The recovery of the motes at the production well illustrated that gaps in the reservoir are pronounced enough to allow for the passing of objects five and seven millimetres in diameter. INDUSTRY CHANGES Recognizing the ascendency of the Bakken formation in the past few years, the PTRC has also begun to broaden its research and development program.


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The PTRC building houses state-of-the-art research facilities of the Saskatchewan Research Council and University of Regina.


Working closely with its research partners at the University of Regina and the Saskatchewan Research Council, the PTRC has begun, for example, to look at the application of CO2 to improve recovery in hydraulically fractured tight oil reservoirs. As the manager of the IEAGHG Weyburn-Midale CO2 Monitoring and Storage Project, the PTRC has established itself as a world-leader in CO2 research, both in terms of storage and enhanced oil recovery. “We understand that the Bakken formation is an exciting play in North America, and that it also faces some of the same low recovery challenges as heavy

oil,” says From. “If we can provide solutions because of our extensive knowledge in areas like CO2, to help extend the production lives of many of these extremely expensive horizontal wells, that would be a major victory.” HOW PTRC WORKS The PTRC conducts research in the HORNET program by bringing together both public and private-sector money to fund research that is of particular importance to industry. Companies that provide a small yearly sponsorship gain access to the results of all the projects undertaken in the program, and also sit on

the Technical Advisory Group (TAG) that helps to choose the projects that come in during the request for proposals (RFP) process. “We are interested in creating a research consortium that directly addresses challenges being faced in the field. The funding we receive allows for a wide array of potential issues to be addressed, using the best researchers from across Saskatchewan and beyond.” Companies interested in finding out more about the PTRC and its research should visit ptrc.ca, or contact the company via email at info@ptrc.ca. v

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Educating the public on oil and natural gas practices While the oil and natural gas industry provides abundant, affordable, clean energy with the associated job creation and economic prosperity, it has been proven that our good work can be threatened if the public does not believe we are developing in a safe and environmentally responsible way. For that reason, Western Energy Alliance conducted a public relations campaign highlighting the environmental stewardship of the western exploration and production industry. Our Common Ground1 campaign delivered over 44 million radio and online messages to targeted audiences across the West and in Washington, D.C. Our campaign centered on four short videos featuring a variety of western voices, helping to inform the public that producers are good stewards of the environment by protecting the land2, air3, water4 and wildlife5 in our daily operations. Western Energy Alliance represents over 480 companies engaged in all aspects of exploration and production of oil and natural gas in North Dakota, Montana, and across the West. Over the past 30 years, we’ve been advocating for policies that help to improve the business climate, but are focusing increasingly on public outreach as it becomes clear that we need to ensure we have a social license to operate. We take the word “Alliance” very seriously, and have cultivated deep relationships with stakeholders—landowners, ranchers, sportsmen’s groups, state officials, county commissioners, civic and 28 Saskatchewan Oil Report 2014

business groups, and many others—who understand there’s common ground we share developing abundant, affordable energy while protecting the places in which we live, work, and raise our families. The following are highlights of our Common Ground campaign. These are voices from within the industry and our partners—not paid actors. These individuals represent the focus to preserve vital resources in the environment where they work. LAND Besides complying with hundreds of regulatory requirements in laws such as the Clean Air Act, the Clean Water Act, Safe Drinking Water Act, National Environmental Policy Act, National Historic Preservation Act, and the Endangered Species Act, oil and natural gas companies go beyond what’s required by law to ensure the environment is protected. It is important for the public to understand the lengths our industry goes to comply with regulations and the coordination that exists with other stakeholders on the land. For example, Stephanie Tomkinson, a senior biologist with QEP Resources, describes a land reclamation project on ranch property where QEP operates. “We have a location that was reclaimed 14 years ago. We came in and we re-contoured. We planted native vegetation. You’ll never know we were here. In my line of work, a success is when you get a location re-

Kathleen Sgamma, Vice-president of Government and Public Affairs, Western Energy Alliance.

claimed properly to blend in with the surrounding landscape. We work together to make sure it’s done right.” “The oil industry is relatively new as far as history. They’ve had to evolve faster than possibly ranching did, but we’ve learned, through communication, how to pat each other on the back and to help each other,” explains rancher Scott Chew. “Sometimes when energy companies go in and build locations, there’s an opportunity to damn-off a drainage and create a water hole. There are areas that are actually better now because of the reclamation work that was done, than they were before.” AIR In our campaign, we highlight how energy companies are committed to maintaining quality air in the regions where they work. We show the work they are doing on and around well sites to protect the air. “Green completions has been our commitment to the general public that we want to operate cleaner, safer, and faster,” explains Susan Alvillar of WPX Energy. “We capture the gas and that’s good for the environment, but it’s also good for the company.” Operations manager Kevin Williams highlights QEP Resources’ focus to reducing emissions from vehicles. “People do need to understand that industry has put a lot of time, effort and money into trying to improve air quality. We’ve looked in detail at every aspect of every operation to find ways to reduce and mitigate emissions.


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Early in our development we identified trucks were a big source of our emissions. Thus we implemented liquid gather systems to help eliminate trucking fluids from a well site and eliminate emissions from a truck, the exhaust and the dust they create. I think we’ve done a good job of collaborating, working together trying to find common ground.” WATER Water quality is a primary concern for citizens living near oil and natural gas operations, a concern shared by industry. Wells are constructed specifically with multiple layers of steel pipe and cement to ensure nothing inside the well can come into contact with underground drinking water aquifers. Spill prevention control and containment plans are in place at every site in the event of an accidental spill of produced water, drilling or hydraulic fracturing fluids, or hydrocarbons. These procedures ensure the vast majority of spills are contained and remediated on site. Companies constantly work to reduce the amount of water used and to achieve higher rates of recycling and re-use. They clean up and re-use produced water and return it to the hydrologic cycle. For this reason, our Common Ground campaign features the work of an environmental consultant whose work is dedicated to improving practices and technology in order to achieve high rates of water re-use. “My charge is to make sure that we as an industry responsibly use water,” explains Tekla Taylor, environmental consultant with

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Golder Associates. “Companies have to have water to do the exploration that they do. As you look into the future with increasing needs for water, there may be potential to treat that and then put it back into the hydrologic cycle for other uses, and you’re actually seeing that happening now.” WILDLIFE Oil and natural gas development can co-exist with wildlife, and companies work hard to ensure that wildlife thrive in our operational areas. Besides complying with the Endangered Species Act and state wildlife regulations, oil and natural gas companies often further mitigate impacts by working with sportsmen and conservation groups for on-the-ground improvements to habitat and forage. The industry, sportsmen and conservation groups are close partners when it comes to using natural resources. Denny Behrens of the Colorado Mule Deer Association highlights the lengths industry partners have gone to preserve wildlife. “Hunting and fishing is a huge industry in this state. When the oil and gas companies moved in here and started doing exploration, we sat down and talked with them,” explains Behrens. “They’ve helped us out with water projects, they’ve helped us out to do vegetation projects for mule deer. Not only mule deer but elk, grouse, small game and non-game species all benefit from what we’re doing here. We’ve seen a constant decrease in funding by the federal government, the U.S. Forest Service and the Bureau of Land Management, when it comes to habitat restoration. The only ones that have really stepped up to the plate to do anything has been oil and gas.” The oil and natural gas industry is part of the communities where we operate. We share the same values when it comes to protecting air, water, wildlife and the land. We do our part to deliver energy that people need to heat their homes, get safely to work and school, power their computers, produce their food, and generally support a high quality of life, while protecting the environment. There’s truly common ground we share, and Western Energy Alliance will continue to promote safe and environmentally responsible oil and natural gas development. We’re expanding our campaign to focus on health and safety within our industry and the communities in which we operate. Stay tuned for more. REFERENCES: 1 http://www.westernenergyalliance.org/why-western-oil-naturalgas/protecting-environment/environmental-stewardship-videoseries 2 http://www.youtube.com/watch?v=JDCLgcd-qZs&feature=shar e&list=UUsbktdkBYBPedFnyAuw81Tg&index=4 3 http://www.youtube.com/watch?v=uhMIUK_IV-s&list=UUsbktd kBYBPedFnyAuw81Tg&feature=share&index=3 4 http://www.youtube.com/watch?v=wEQDGWjH5pc&list=UUsbkt dkBYBPedFnyAuw81Tg&feature=share&index=2 5 http://www.youtube.com/watch?v=uN_8opDchBA&feature=shar e&list=UUsbktdkBYBPedFnyAuw81Tg&index=1 v


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Women bring diversity and expertise to Canada’s oil and gas sector By Lisa Fattori As with most resource-based industries, women are under-represented in Canada’s oil and gas sector. With the boomer generation approaching retirement, employers will need to broaden their pool of workers, and attract and retain more female employees. Flexibility, opportunities for advancement and a more inclusive culture, throughout all levels of an organization, are the key issues that women face in considering a career in oil and gas—a career that offers over 120 types of occupations and lucrative earnings in an exciting and fast-paced industry. A 2013 national outlook report by the Mining Industry Human Resources Council (MiHR) reveals that there is a lot of overlap between the mining sector and surface mining operations in the oilsands. According to the report, women make up 48 per cent of Canada’s overall labour force. In mining, women make up 16 per cent of the labour force. Another 2013 MiHR publication, Mining In Canada’s Oilsands: Labour Market Trends and Human Resources Challenges, reports that in oilsands mining, about 15 per cent of workers are women. The majority of female oilsands workers are heavyequipment operators, while heavy-duty equipment mechanics is the occupation that shows the smallest amount of participation by women. “The takeaway here is that when compared to the overall labour force, Canadian resource sectors are underperforming in regards to the participation and engagement of women,” says Courtnay Hughes, project manager at MiHR. 32

Saskatchewan Oil Report 2014

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A WinSETT workshop that is geared towards helping women advance in resource/tech industries.

“There are a lot of women in administration and corporate-services positions, whereas you see mostly men in management and leadership roles. Given there is a significant labour shortage in mining, we need to grow and diversify the labour pool. We need to attract the best and the brightest to remain competitive, and that includes women, as well as immigrants and Aboriginal peoples.” According to the Petroleum Human Resources Council of Canada, hiring activity for the oil and gas industry’s direct workforce to 2022 ranges between 125,000 and 150,000 people. Engineers, geoscience professionals, tradespeople, operators and field workers are all in demand and are positions that can easily be filled by women. Studies show that while women may gravitate to the oil and gas

sector early in their careers, it is more difficult to retain these women when they hit the 30 to 34 age group. These women are starting families and raising young children, and have domestic demands that a fly-in, fly-out field position may not accommodate. Infrastructure to support family life, including on-site daycare services, recreation centres and medical facilities, as well as more flexible work schedules are what women cite as important issues. “Companies look for linear progression; if a woman takes time off to have a child, her career path is interrupted,” says Dr. Eve Sprunt, earth scientist, petroleum engineer and consultant based in California. “It’s been a relatively short time of all human history that we’ve had rigid work hours. With advanced technologies, we


QP1

QP2

QP3

QP6


again have a 24/7 world. The oil and gas business is an international industry where you can have a conference call at any time of the day or night. With today’s computing power, telecommuting and even control rooms for drilling rigs operated remotely, many oil industry roles don’t require the physical presence of a young mother. There is the opportunity for a lot more flexibility.” Challenges to career advancement have also been identified as an obstacle for women, particularly in technical positions, skilled trades and senior leadership roles. Women can also feel excluded in a male-dominated environment, finding themselves not invited to networking and team-building opportunities, such as company fishing trips or golf tournaments. While such oversights may be unintentional, exclusion affects the working culture and minimizes a woman’s contribution to the organization. Mentoring programs and workshops, such as those provided by the Canadian Centre for Women in Science, Engineering Trades and Technology (WinSETT Centre), help women to navigate challenges and advance their careers. In February, Status of Women Canada announced support for a project to enhance women’s participation and advancement in Alberta’s oil and gas sector. WinSETT is receiving $248,400 for a 36-month project that will help develop more inclusive and supportive employment environments. “This project builds on the work we’ve been doing and gives us the opportunity to focus on one sector,” says Carolyn Emerson, project consultant for WinSETT Centre. “We’ve delivered 57 workshops in 12 cities in seven provinces across Canada. We’ll continue to work with women and employers to identify what the needs and opportunities are, and we’ll partner in developing some new tools and initiatives such as additional workshops to address those needs. We’ll look at the current effective policies of companies, in recruitment and retainment, to come up with an action plan that can be applied across the country and in other sectors.” Mentoring is an effective way to of34 Saskatchewan Oil Report 2014

A rig crew at Savanna Energy Services.

fer support and guide women as to how they can advance their careers. More influential, however, is the sponsorship of a woman, by someone in a senior position, who can recommend a person for promotion. “In large organizations, small groups of people make decisions about promotions to highly desirable positions,” Sprunt says. “A sponsor is someone in a position of power who will speak up and champion a woman’s cause. It’s an informal thing, where the sponsor thinks a junior person has talent for the position and puts in a good word for her.” For the last four years, Savanna Energy Services has been actively recruiting female crew members for their rigs, with between 10 to 16 women working in the field. In fact, the company’s first female rig worker is currently on maternity leave and, while pregnant, had her position changed to driving a crew truck, which wasn’t as physically strenuous as rig work. This flexibility is indicative of how companies can accommodate women so that their careers are not disrupted or replaced altogether. “When you’ve invested in a person, you don’t want to throw that away,” says Laura Koronko, diversity coordinator for Savanna Energy Services. “Really, it’s no different than hiring men. We try to make it a good fit, whether it’s a woman,

an aboriginal person or an immigrant. Not only do we want to broaden our employee pool, we also want to be seen as a leader in the industry and a company that is progressive.” Equipment changes, such as criss-cross harnesses, have been developed for women, and today’s automated systems make the work less physically demanding. The pay scale for oil rig work ranges from $20 per hour to $44.80 per hour, taking approximately seven years to work through every position to reach rig manager. “We have some women moving into Derrickhand right now,” Koronko says. “They worked to this level in just four years, so it’s very achievable.” Studies have shown that organizations with women employees outperform, and have stronger relationships with customers and the communities in which they operate. The challenge is to ensure that an inclusive workplace culture extends from the corporate head office to all locations and levels of an organization, and that on-site contractors and consultants are on board with company policy. “By engaging a more diverse workforce, companies make better decisions and are more responsive to customers and communities,” Hughes says. “This extends beyond the bottom line to create an environment of respect and engagement among all stakeholders.” v


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36 Saskatchewan Oil Report 2014

You could think of safety as a quarterback’s worst nightmare (aka Craig Butler, Glen Suitor, etc.). You could also think of it as training designed to prevent injury and hazardous operation of devices on the jobsite. To some in the energy sector, safety is sometimes looked upon as a four-letter word. But it can also be looked at as the key to a fatter wallet. “The more tickets and training you have, the better off you are, the more money you’ll make and the more you’ll be needed,” says Shawn Pennington of REV Energy in Kerrobert during a recent interview. Safety training for the energy sector can be conveniently found at Great Plains College, which serves an area of over 100,000 square kilometres in


southwest and west-central Saskatchewan. Campuses are located in Biggar, Kindersley, Maple Creek, Rosetown, Swift Current and Warman but skills and safety training is available in virtually any community in between. The college doesn’t just “talk the talk” when it says it offers skills and safety training “when and where you need it.” It walks the walk, too. “We can go where they are and we can plan it,” says program coordinator Lyla Cooper. “You want us to be there at 7:30 to do your training? Okay, we’ll do that.” For Pennington and other REV employees that meant being able to take part last summer in a Confined Space Entry class on-site in Kerrobert. “We have state-of-the-art, topnotch simulation units that provide a real work experience type of simulation,” explains program coordinator Lana Rhodes. As your trusted partner in safety training, the college works closely with business and industry to deliver courses and provide the certification that is required for the development of productive and safe employees—H2S Alive, First Aid, Fall Protection, Confined Space, and Ground Disturbance to name just a few. But wait … there’s more. “We offer all the basic ones, the H2S, First Aid, Confined Space, Ground Disturbance, but then there are some of the larger ENFORM classes, the well service BOP (blow out prevention), coil tubing BOP, fall protection for rig work,” says Cooper. The college also offers fire extinguisher training in partnership with the Swift Current Fire Department. “We do the instruction in the classroom,” states Swift Current fire chief Denis Pilon. “They’ve been looking to offer these courses but they need qualified instructors who can do it. Our firefighters are all qualified and they’re also certified instructors.” Great Plains College is dedicated to

understanding and serving the training and education needs of the industry sectors vital to the college region. A full list of courses is available at greatplainscollege.ca, or you can contact Great Plains College directly to arrange specific, customized training at 1 (866) 296-2472 (Swift Current) or 1 (888) 3827972 (Kindersley).

“They’ve been trying to work with the oil companies here locally and trying to bring in what training suits us or meets our needs,” says Jim Cadrain, safety coordinator for Crescent Point in Swift Current. “I’m pretty sure it looks positive in the future for oil production and exploration so I’m confident it’s not going to go away in the Southwest.” v

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PP Oil Gas and Energy Report Jan 31 2014 due Jan 23.indd 1

1/7/2014 11:17:56 AM

Saskatchewan Oil Report 2014

37


Saskatchewan resources and maritime transportation By Harry Valentine Saskatchewan’s resource and agricultural sectors have long depended on maritime transportation to carry the province’s exports to distant markets. Railway lines carried Saskatchewan’s bulk exports to the ports of Churchill, Thunder Bay and Vancouver for transfer to ships. These railway lines, which date back many decades, precede the development of the St. Lawrence Seaway and commercial navigation along the Mackenzie River. Recent developments along the European barge canal system suggest the possibility of bringing maritime transportation closer to Saskatchewan. American Maritime Precedent During 2005, Sea Point Marine of New Orleans studied the cost of shipping containers between Long Beach, California, and Memphis, Tennessee, comparing the maritime route via the Panama Canal and Mississippi River to direct freight-train service. Despite the additional sailing distance and a transfer of container from ship to barge at New Orleans, maritime transportation incurred a cost-savings of some US$200 per container upon arrival at Memphis. Maritime’s savings in terms of economy of scale forms the basis of bulk-freight transportation across the Great Lakes and along the inland waterway system. In 2010, professor Jerry Fruin of the University of Minnesota published a report comparing the cost of shipments by rail, truck and inland waterway over distances of up to 1,000 miles. His research indicated that a single tug-pushed barge of 50-foot width by 270-foot length 38 Saskatchewan Oil Report 2014

Inland waterways.

could carry 72 containers at lower total cost than either railway or truck transport over such distance. Coupled assemblies of multiple barges, called tows, carry transport containers which transport bulk freight, such as grain or barrels of oil, along the American and European inland waterway networks. Tanker Barges A tug-pushed tanker barge of 50-foot (15.3-metre) beam by 295-foot (90-me-

tre) length can carry 30,000 barrels each, with a tow of six barges coupled two abreast by three lengthwise able to carry up to 185,000 barrels of oil. Tug-pushed and navigated tows of barge-tankers carry an estimated 16 per cent of domestic American crude oil along the Mississippi River that is barge navigable to St. Paul, Minn. while the Missouri River is bargenavigable as far north as Sioux City, Iowa. Growing public opposition to pipelines in the U.S.A. provides oil transportation op-


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pegosis. The close proximity of the eastern section of the Saskatchewan River to the Manitoba lakes allows for possible uphill pumping of water, for the purpose of maintaining barge-navigable depth along the eastern section of the Saskatchewan River. A navigable waterway system could carry massive volumes of bulk freight from both Saskatchewan and Manitoba to ocean ships destined for Asia at the mouth of the Mackenzie River.

Transportation costs.

portunities to trucks, railways and river barges. Pipelines may connect America’s Bakken oilfields to oil terminals on the Mississippi and Missouri rivers, at Sioux City and Minneapolis-St. Paul. The pipelines would involve 33 per cent of the distance to oil refineries on the American Gulf Coast. Future American Bakken oil development could prompt extending Missouri barge navigation from Sioux City to Bismarck or Williston, N.D., near the Canadian border. Should oil barges gain access to Williston, bulk-freight shippers from Saskatchewan could gain access to cost-competitive waterway transportation to Toledo, Ohio on Lake Erie and ships that sail to overseas destinations. Canadian Waterway Prospects The Mackenzie River is barge-navigable

between the Beaufort Sea and Great Slave Lake. Precedents developed along the expanded European barge network may develop a barge-navigable canal though the Slave River to Lake Athabasca in northern Saskatchewan, with additional barge-navigable waterway connections upstream to Lake Wollaston and an excavated navigable canal to Reindeer Lake that flows into the Reindeer and Churchill rivers. European precedent suggests the possibility of a barge-navigable canal from the Churchill River to Deschambault Lake, and through Amisk and Cumberland lakes to the eastern section of the Saskatchewan River. Recent revisions to Canada’s navigable waterway act offer future prospects of expanding Canadian inland waterway commercial navigation, including into northern Saskatchewan, northern Alberta and toward lakes Winnipeg and Winni-

Northern Navigation Ships have already sailed across the Russian side of the Arctic, between the North Pacific and North Atlantic oceans. There is an annual window of opportunity that allows for barge navigation along the Mackenzie River, as well as ship navigation across the Beaufort Sea between the Bering Strait and the Mackenzie River. During that period, there would be future potential to ship bulk agricultural produce, bulk mining ore and crude oil via inland waterway transport from regions in Saskatchewan, Alberta and Manitoba to the Beaufort Sea, for transfer to ships destined for overseas ports. While the waterway between the Beaufort Sea and Slave River may be free from navigation locks, there would be a need to install navigation locks with water-saving technology between Great Slave Lake and Lake Athabasca, to maintain navigation depth and to move barge trains between different elevations. Navigation locks built to Mississippi lock dimensions may include European-style side reservoirs and/or pumps to reduce water consumption required to transit vessels sailing in opposite direction. During the four to sixmonth northern navigation season, river transportation may compliment pipelines and carry a seasonal peak load of oil. Seaway Oil Navigation An oil pipeline from Saskatchewan’s Bakken region may connect to an oil terminal at Thunder Bay, Ont., from which oil-tanker ships may carry crude oil across the Great Lakes to oil refineries near Sarnia, Ont., or through the St. Lawrence Seaway to eastern Canadian oil refineries. The Seaway option would be available

40 Saskatchewan Oil Report 2014


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during late March to late December, during which time the maritime option may supplement an oil pipeline built across eastern Canada. During summertime, the maritime option allows crude oil to move into central and eastern Canada while the pipeline undergoes regular repair and maintenance. Future Navigation Several rivers flow in opposite direction from the same watershed region in Northwestern Ontario, emptying into Lake Winnipeg and Lake Superior. Precedents from the European barge canal system offer the future prospect of developing a navigable canal between Lake Superior and Lake Winnipeg, with a possible extended waterway connection to Lake Athabasca and the Mackenzie River. Such a canal system may carry output from the resources, mining and agricultural sectors of Saskatchewan and Manitoba to provide a potentially cost-competitive transportation link to ocean transport and overseas markets.

Transportation Economics While pipelines may be the optimal form of transportation for oil, maritime bulk-freight transportation is cost-competitive against railway and road transportation, possibly even safer given recent mishaps involving railway and truck transportation of oil. A tow of six tanker barges (50-foot by 295-foot, coupled two abreast by three lengthwise) can carry the equivalent volume of crude oil as 250 railway tank cars. The increased maritime navigation distance of the Long Beach and Memphis precedent suggests that inland waterway transportation may move bulk freight from Saskatchewan to either Lake Erie or to an ocean port at a lower cost than truck or railway. The cost of an ocean voyage between the Mackenzie River and several Asian ports would be cost-competitive with the ocean voyage to/from Vancouver. Precedents in American maritime economics suggest that the cost of carrying bulk freight via inland waterway between

Saskatchewan/Manitoba to the mouth of the Mackenzie may be lower that the cost of moving the same tonnage by rail to a Pacific bulk port. Access to inland waterway networks that connect to ocean/lake ships could offer competitive transportation costs to Saskatchewan exporters, and especially as the resource sector expands in northern Saskatchewan. Conclusion A navigable canal system may carry the output and products of Saskatchewan and Manitoba’s mining, resources and agricultural sectors at competitive transportation costs, to connecting overseas maritime transportation. The volume and mass tonnage that will sail along the canal system will ultimately justify the development and operating cost. It warrants further study and further evaluation. A consortium of private companies may consider developing such a waterway transportation system using private funding. v

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Oil-well reclamation processes across the Bakken Thousands of oil wells have been successfully drilled and developed in the Bakken region of Canada and the United States. However, once a well is no longer viable economically, it will be eventually abandoned. Whether in the United States or Canada, there are similar regulations that guide the reclamation process. For companies operating in the Bakken in these different jurisdictions, a complete understanding of the rules and regulations is required. Typically, well-site abandonment begins with the removal of site infrastructure including well-head equipment, tanks and associated buildings. The well bore is plugged and cut off below the surface. The well site and any associated access roads are then reclaimed. During production, partial reclamation may also occur, as an operator will often minimize the footprint of disturbance by reclaiming portions of the well lease not needed for production operations. One of the primary goals of reclamation on land impacted by oil and gas developments is to restore the site stability and ecological functions. This is accomplished by returning disturbed lands to their original use prior to disturbance, which can range from agricultural production to wildlife habitat. Successful reclamation on

land utilized for agricultural purposes must meet minimum requirements for topsoil depth, plant height, density and vigor that are comparable to vegetation and soil assessments on undisturbed lands adjacent to the lease. Often, the benchmark for successful reclamation in native prairie environments is the establishment of native plant communities that are self-sustaining and meet the standards for density and forage production, and the re-contouring of all disturbed land area to match or blend with the original landform. Regulations related to the abandonment of exploration or production wells vary, depending on the province or state in which the well is located. There are often additional requirements if the well is located on federally controlled land. In Saskatchewan, there are several regulatory requirements under the Oil and Gas Conservation Regulations that must be met prior to a well or facility receiving an Acknowledgement of Reclamation. The Saskatchewan Ministry of Economy administers this Act and is responsible for issuing the Acknowledgement of Reclamation. The process includes the submission of landowner’s acknowledgement, Phase 1 Environmental Site Assessment (ESA), a Phase 2 ESA (where applicable), remediation report (where applicable) and a

Detailed Site Assessment (DSA). Within six months of approval of the detailed site assessment, the Acknowledgment of Reclamation application can be submitted. The reclamation liability associated with the site will be removed once the Acknowledgement of Reclamation is issued and accepted by the Ministry of Economy. In Manitoba, the licensee can apply for a Certificate of Abandonment under the Oil and Gas Act. Once the Certificate of Abandonment is issued, the licensee is still liable for costs associated with site and any land or ground-water contaminants six years after the certificate is issued. In North Dakota, oil-well abandonment must meet certain specifications in accordance with North Dakota Administrative Code (NDAC) regulations. Oil wells must be plugged in a manner that will permanently confine all oil, gas, and water in the strata that originally contained them. All casing strings must be cut off at least three feet (one metre) below the final surface contour and a cap shall be welded on. Any core or stratigraphic test holes drilled to or below sands containing freshwater also need to be plugged in accordance with the applicable provisions above. North Dakota regulations regarding site construction and reclamation are also found in the NDAC. The regulations state

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“that topsoil shall be removed, stockpiled, and stabilized or otherwise reserved for use when the area is reclaimed.” Within six months after completion of a well, any portion of the well site not used for well operations must be reclaimed unless waived by the director of the North Dakota Industrial Commission. Well sites and all associated facilities are required to be stabilized to prevent erosion. The Bureau of Land Management (BLM) requires that interim reclamation consists of minimizing the footprint of disturbance by reclaiming all portions of the well site not needed for production operations. The BLM also states that reclamation will begin as soon as practical, but no later than six months after the installation of any production facilities. The operator will monitor the pad for the life of the project and will control all noxious and invasive plants using methods that have been approved by the BLM. The Bureau of Indian Affairs (BIA) also requires that reclamation be initiated six months after construction, if environmentally feasible. The BIA considers reclamation successful if seeded areas become established, adjacent vegetative communities encroach back into disturbed areas, and noxious weeds have been controlled. If the seeding effort is unsuccessful after two years, the BIA may require additional action from the operator. In Canada, for wells or facilities located on federal land, the lessee must receive authorization from the responsible federal regulatory authority (e.g., Indian Oil and Gas Canada) as well as the provincial regulatory authority (e.g., Saskatchewan Ministry of Economy, Manitoba Petroleum Branch) prior to abandoning the well or facility. Regulations and best management practices are in place in Canada and the United States to ensure that operators responsibly restore lands back to a condition that allow landowners and occupants to continue to safely utilize the land in a productive fashion. Despite the jurisdiction, an operator must undertake activities that will result in successful reclamation of the site upon abandonment of a well. Effective management of abandoned oil and gas sites can assist in reducing environmental liabilities.

Golder Associates has offices in the Bakken regions in Canada and the United States and works closely with our clients to assist them with the many steps required to successfully abandon and reclaim their sites and meet regulatory obligations. About Golder Associates With offices strategically placed in the Bakken Shale region in Estevan, Sask., and

Bismarck, N.D., Golder is well-positioned to provide a full range of environmental and ground engineering services to our oil and gas clients on both sides of the Canadian-U.S. border. To learn more about our services in the Bakken, please contact Brad Novecosky in Estevan (bnovecosky@golder.com, 306.634.2814) or Jon Ellingson in Bismarck (jellingson@ golder.com, 701.258.5905). v

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Engineering Earth’s Development, Preserving Earth’s Integrity. Bismarck + 701 258-5905 Estevan + 306 634-2814 bakken@golder.com www.golder.com

Saskatchewan Oil Report 2014 45


Hydraulic Fracturing Code of Conduct: Industry’s commitment to Canadians Hydraulic fracturing operations have been around for more than 60 years in Canada 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 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 fracturing, 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 respond46 Saskatchewan Oil Report 2014

ing 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.


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VISION L R E P TD SU

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R.L. Supervision Ltd. has over 20 years of oilfield experience with logistics, construction and reclamation. R.L. Supervision provides on-site supervision of oilfield construction and cleanup of drilling sites. Reclamation and remediation projects throughout Western and Northern Canada can be provided. R.L. Supervision also provides project personnel, equipment management and cost tracking. R.L. Supervision is in good standing with all governing bodies.

P.O. Box 131 | Waldeck, SK | Canada S0H 4J0 Office: 306-773-3413 | Cell: 403-704-3989 | Fax: 403-206-7766 | E-Mail: rl.supervision@gmail.com

Prairie Storm Construction is located in Swift Current, Saskatchewan with a second office located in Kindersley, Saskatchewan. Prairie Storm Construction has been in business since 2005 and is excited to expand serving established and new customers. Prairie Storm Construction has a proven record of excellence in managing reclamation, fencing, supervision and several lease construction projects throughout Saskatchewan and Alberta. No matter the size of your project, the experienced professionals at Prairie Storm Construction will plan, construct and maintain your project. We have a full line of construction equipment (including cats and hoes) at our disposal. As a strong provider throughout oilfield maintenance and service for construction and drill projects from first construction to final reclamation, we are dedicated to serving the needs of our customers each and every day.

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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 (the “Code”) 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 that partnered in the development of the Code have voluntarily agreed to follow it wherever they work in Canada.

48 Saskatchewan Oil Report 2014

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: 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, 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 than 250 of Canada’s leading service, supply and manufacturing companies in the upstream industry. Our 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. v


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Flying Dust soars with oil industry partnership By Tim Banman In the 2008-2009 Bakken play land rush driven by the breakthrough in technology, Flying Dust First Nation and Braveheart Oil and Gas Ltd. went out looking for success and found it. After years of careful negotiations and hard work, the partnership between the First Nation and private industry gained four parcels of prime resource real estate totalling 1,440 acres in southeast Saskatchewan and successfully converted the land to reserve status for the future economic prosperity of Flying Dust. Now, Flying Dust is poised to reap the benefits from years of laying the groundwork, with drilling expected to start this season. The four First Nations commercial islands were a long time in the making, but the foresight of former and present chief and councils will benefit Flying Dust First Nation for generations to come. “It’s been about a seven- to eight-year process that’s finally coming to fruition,” Flying Dust First Nation Chief Bob Merasty reflects. “It’s something that’s very positive for our First Nations in terms of generating revenue. Corporate business development is the big focus for our community.” Flying Dust, through its corporate entity FDB Holdings Inc., has established a number of new business ventures including the recent acquisition of a gas station in December 2013, a new gravel operation, a market garden and FDB Farms, which has been in operation for 50 years. The venture-driven band now has a stake in the oil game with a long-term partnership with industry to tap the recently added lands. Merasty hopes to see royalties from the land fuel further economic and social development goals for his band members. The southeast Saskatchewan commercial zones, while hundreds of kilometres from the home reserve in the northwest of the province near Meadow Lake, were added 50 Saskatchewan Oil Report 2014

Former Flying Dust chief Jim Norman signs the agreement in 2011 with Kim Wallace and Keith Hemke of Braveheart Oil and Gas Ltd. PHOTO COURTESY: MEADOW LAKE NORTHERN PRIDE.

to the Flying Dust First Nation’s land base under the federal government’s Additions to Reserves policy. The federal initiative has added 10 per cent to First Nations land since 2006, 339,982 hectares in total, to make up for unfulfilled legal obligations. The Minister of Aboriginal Affairs and Northern Development created Flying Dust’s first southern reserve on June 18, 2013, with three parcels added on September 12. Flying Dust started inquiring about land acquisition soon after a 1992 Treaty Land Entitlement framework agreement provided the First Nation 33,910 in ‘equity acres.’ The process allowed the band to receive undisposed minerals transferred to them at no cost, as well as to acquire lands with a set amount of funding. Flying Dust purchased 11,000 acres of land close to the home reserve, which used two-thirds of the allotted funding for land acquisition. The limited amount of remaining funds placed the band in the

position of having to find other means of funding to fulfill the TLE agreement. The band sought and found financial partners with the goal not only to add reserve land, but also to add land that would contribute to the long-term economic development goals of Flying Dust and raise funds for the fulfillment of the remaining TLE claim. The circumstances brought Flying Dust into partnership with Braveheart Oil and Gas Ltd., an Albertabased company created with First Nations development in mind. Working closely for the same goal, Braveheart and Flying Dust’s leadership persevered through seven years of exploration and negotiations to see the project come to fruition. “We became true partners,” Darwin Derocher recalls, director of lands and resources for Flying Dust throughout the process. “I worked under three different chiefs and councils and for the most part, Flying Dust has been focused on achieving this


economic development opportunity, but also expanding on that,” Derocher says. “It offers us the opportunity for further economic development down the road.” After forging the partnership, Braveheart set out to lay the groundwork by exploring Bakken lands near Estevan. Braveheart located undisposed Crown minerals on soldier settlement lands, which presented a unique opportunity for purchasing and eventually converting to reserve status—an opportunity that no longer exists, since the Province of Saskatchewan took over soldier settlement lands from the federal government shortly after Flying Dust’s southern properties achieved reserve status. Braveheart narrowed its search to 3,000 acres and began working to secure the land and mineral rights in negotiation with farmers, many of whom decided to rent the land back and continue farming. In exchange for providing funding to acquire the surface rights from the farmers, Braveheart retained the exclusive right to drill on the reserves, with the band earning royalties on future production. When the dust settled, Flying Dust had bought nine quarter sections. “It all began with federal Crown mineral rights that existed within the Province of Saskatchewan,” Braveheart director Kim Wallace explains. “We seemed to be at the right place at the right time.” The process took longer than expected and by the time the land and mineral rights were secured, the leadership at Braveheart had neared retirement and decided it would be best to pass the torch to new partners. Although Braveheart’s role has ceded to new ownership, Wallace says Braveheart will continue to provide technical support and advice to Flying Dust to help transition to production. “In terms of getting the most out of the Bakken, the First Nation is in very good hands now,” Wallace reflects. Chief Merasty says the band’s focus continues to be on capacity-building, education and training for the band’s members as Flying Dust seizes the opportunity at hand. The agreement specifies that qualified band members have the opportunity to work on the southern

reserves, while another benefit for members is matching dollars for education and training. While direct employment and training possibilities for members are one benefit, the larger economic development goals of the band continue to move forward with careful planning. With royalties from drilling expected to impact shortly, the band continues to evaluate its options to fulfill the TLE agreement, and may look at accessing deeper plays where new

technology is opening up new areas for oil production. Considering the band’s model record of financial compliance with funding requirements, Merasty sees potential to work with more partners in the oil industry going forward. “We are certainly keen on new partnerships and exploring mutually beneficial arrangements. There’s a lot of potential there yet. We would make a good business partner for anyone.” v

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Graham: The ideal partner for oil and gas projects in the region From Graham’s earliest beginnings in Moose Jaw, Saskatchewan, over 85 years ago, the company has made innovation, safety and continuous improvement the cornerstones of everything they do. It’s part of the value that extends beyond the materials, the talent and the timelines. Real value delivered by real people whose experience and passion for the work—from project concept, construction, to delivery—ensure great project outcomes for every customer, every time. “Our clients look to us for construction management, general contracting, direct workforce execution and subcontracting capabilities,” says June Verhelst, Graham’s vice-president of Industrial in Saskatchewan. “From small to large-scale and complex [projects], we deliver streamlined project management and high-quality execution with an uncompromising eye for safety and risk management.” With revenues exceeding $2.2 billion annually, and financial strength that supports our integrated capabilities, robust network of 14 offices across North America, and large equipment fleet, Graham is precisely the ideal integrated construction solutions partner for oil and gas projects in the region. At a conservatively estimated 40 billion recoverable barrels, and spanning some 25,000 square miles, the Bakken oilfield is among the largest in the world and just brimming with opportunity. This is one of the regions on which Graham wants to focus because of operational proximity and capability. At Graham, they understand largescale industrial projects—especially those that demand a “big picture” approach. Graham has served the industrial market for over 50 years, applying mechanical, process piping, civil earthworks, electrical and structural exper54 Saskatchewan Oil Report 2014

Cameco’s Cigar Lake Uranium Mill, in Saskatchewan, where Graham continues to deliver multiple industrial contracts.

tise to hundreds of complex industrial projects. Graham delivers full-spectrum solutions to North America’s extraction, processing and manufacturing sectors including vital projects in: oil, natural gas and petrochemicals; refining and upgrading; potash, gold and uranium; power generation; and mining and forestry—and to large-scale, international clients including Suncor, SaskPower, Cameco and PotashCorp. “With experienced, well-trained professionals, and specialized equipment, we have the capability and expertise to self-perform the groundwork for any construction project,” says Verhelst. “But we also understand the specialized needs of industrial projects and continue to effectively execute such projects throughout Canada.” Another extension of Graham’s vast portfolio includes our Earthworks, Underground and Piling division, which stages our industrial projects for success. Site preparation is offered either as a stand-alone service or as a part of an integrated project solution and in-

cludes: site preparation, excavating and grading; underground pipe installation; mass excavation; haul-road construction and operation; and piling and heavy construction. “Our capable and modern fleet includes some of the heaviest classes of earth-moving and hauling equipment in the industry,” says Bill Koehn, Graham’s vice-president of Earthworks, Underground and Piling division. “These strategically deployable resources, along with dedicated frontline staff, ensure consistently sound project outcomes— in and above ground.” And yet, while Graham focuses on delivering exceptional projects, it is done with the utmost focus on health, safety and the environment. Graham’s Health, Safety, Environment and Quality management (HSEQ) system provides a framework for excellence at all levels, providing clear management expectations, detailing employee responsibilities and serving as a mechanism for continuous improvement.


Graham’s heavy haulers are able to move massive mounds of earth and soil—even in very remote locations, such as northern Alberta pictured here.

Graham’s broad range of piling and digging equipment is capable of executing any type of drilled or driven piling program.

Graham is precisely the ideal integrated construction solutions partner for oil and gas projects in the region.

“We strive for zero incidents on each project through good management and utilization of our resources,” says Mike Court, Graham’s vice-president of Health, Safety, Environment and Quality. “We actively deploy a comprehensive HSEQ system, a strong supervisory presence and

senior management commitment to all personnel on our project sites.” If you’re looking for a committed integrated construction solutions partner with experience to not only see your vision in the oil field, but also to see it through—look to Graham. v

SMS Equipment is a one-stop supplier of the most complete range of equipment. With various locations to serve you across Canada, SMS Equipment is your local equipment and solutions provider. KRents, a division of SMS Equipment, provides short-term rental solutions of Komatsu and complimentary OEM equipment. Our customers have access to more than 300 machines for immediate rental! Rely on the Wirtgen Group’s full range of products for new construction and rehabilitation of roads. SMS Equipment’s sales and service experts offer the expertise and all-round support your business needs. Regina Eastgate Drive, Regina, SK, S4P 3C6

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Fitting a square tank in a round hole By Cindy Soderstrom, Manager, Communications, CAODC

The rig industry is in the middle of a big transition. The transition involves systematically removing all of the fuel tanks that had been in the fleet in 2007. By 2033, all of the fleet’s fuel tanks—an inventory that numbers over 6,000 units—will use a new design, one known as TC44. Why, one might wonder, would Canadian rigs take on such a project? After years of tough conversations about the regulation of fuel tanks on public roads, it was the best solution that the Canadian Association of Oilwell Drilling Contractors and Transport Canada (CAODC) could arrive at. The solution is a unique made-in-Canada approach. Hard Negotiations CAODC members own fuel tanks because they need to power rigs, not because they need to transport fuel. Fuel tanks are nearly empty when they move to new locations. It makes no sense for a contractor to pay to move a full fuel 56 Saskatchewan Oil Report 2014

tank when it’s much cheaper to move it near empty and fill it up at the new site. In 2003, Transport Canada decided it would no longer exempt certain items, the sort of exemption that recognized the fuel tank that is part of a rig package is different from the fuel tank that is attached to a semi-truck and delivers large volumes of fuel to gas stations.

When CAODC completed the design work and tabled TC44, it was the first time Transport Canada approved a ‘made in Canada’ tank specification.

Transport Canada’s new position asserted that if a fuel tank was on a road and if it carried fuel—even minimal amounts—the tank had to comply with Transportation of Dangerous Goods (TDG) legislation.

Without the exemption, rig contractors had a serious logistical challenge. In order to move equipment from point A to point B, they had to meet all the same criteria that fuel-haulers do. Two years later, the industry, working through CAODC, and Transport Canada were still struggling to find agreement. CAODC began discussions with the Canadian Standards Association (CSA) B-620 Technical Committee. The technical committee was an influential group: Transport Canada used their recommendations when determining Means of Containment (tanks) policy. The industry was hopeful. That was the sense in a 2005 article in CAODC’s magazine, The OilDriller: “TDG: A Look at Alternatives.” The article outlined the logistical challenges behind the issue. Equipment used on drilling and service rigs is very specialized and built for purpose. The fuel tanks that were part of these packages were never constructed to transport dangerous goods.


The rig industry hoped to convince both the CSA B-620 Technical Committee and Transport Canada that the industry could identify a series of tank inspection elements in a CAODC Recommended Practice. CAODC Recommended Practices (RPs) are a standard resource that rig contractors use to demonstrate that components of a rig meet a required engineering standard. Industry hoped that by following this avenue, Transport Canada could then acknowledge the RPs as a minimum standard that is equivalent to TDG legislation. But Transport Canada was not budging. In their view, all fuel tanks on public roads were to be treated the same. Equivalency programs would not be accepted. Transport Canada suggested that industry consider the many designs that Transport Canada had already deemed TDG-compliant. They encouraged CAODC members to adopt any one of these for rig operations. Unfortunately, all of Transport Canada’s TDG standards were cylindrical, again harkening back to the kind of vessel that delivers fuel to gas stations. None of the tank designs would fit into the careful layout of a rig package. All rigs are powered by slab-sided fuel tanks. A square tank is simply more efficient. It has greater capacity and packs tight against other rig components. A slabsided tank contributes to a smaller drilling footprint. TC44: CAODC Members Go Where No Canadian Industry Has Gone Before That’s when industry proposed a new tank design. CAODC members would engineer a slab-sided tank specification that would be specific to industry’s needs and be TDG-compliant. It was an ambitious proposal. A square tank means more capacity. It also means the tank must withstand more pressure per square inch (psi). The new design had to withstand 4.5 pounds psi, a 10fold increase in strength over old industry tanks. CAODC staff and members spent the next four years in consultation with Transport Canada and industry engineers.

When the CAODC completed the design work and tabled TC44, it was the first time Transport Canada approved a ‘made in Canada’ tank specification. Previous to this, all of Transport Canada’s designs had been adopted from other international jurisdictions. The next dilemma faced by CAODC members was how to reasonably transition some 6,000 rig fuel tanks to the new standard. The CAODC and Transport Canada worked out a transition model: every fuel tank in the CAODC membership was given an identifying number. Tank categories were established based on the age of the tank, and retirement dates were scheduled for each category. Drilling and service rig contractors need to periodically review their inventory to ensure they are prepared to meet the out-ofservice dates of old tanks. Retirement means that they must be taken out of service completely and replaced with tanks built according to Transport

Canada regulations and CSA Standards. Tanks in operation must be a TC-44 tank, or have a decal that shows it is registered as a 1A category tank or a Type2 category tank. Tanks that fall under the ‘1A’ and ‘2’ categories are to be transitioned out before 2022 and 2032. (Type 2 tanks were built new in the period that CAODC was negotiating with Transport Canada.) “This initiative has required a lot of perseverance from our members, but it’s a remarkable accomplishment,” Nancy Malone, CAODC vice-president, Operations, has remarked. “Basically, TC44 is an industry-built solution. It’s one that satisfies both Transport Canada’s concerns and rig contractors’ needs.” The CAODC is a trade association. Its members include all of Canada’s drilling contractors and 98 per cent of Canada’s service-rig contractors. For 65 years, the CAODC has promoted safer and more efficient rig operations through advocacy, communication and needed products and services. v

Regina (306) 525-2777

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Bienfait (306) 388-3788

Winacott Equipment Group located in Regina, Saskatoon, and Bienfait, are dealers for new and used Western Star trucks, Hyundai construction equipment and Cancade trailers. Winacott Equipment Group carries a full line of parts for the equipment we sell and our certified technicians are qualified to handle all your service needs. We carry all major brands of engine parts for Detroit, Cummins, Mercedes and Caterpillar, we also carry a full line of heavy-duty drive train parts, Fuller transmissions, Eaton and Meritor clutches, Spicer and Meritor driveline components, Detroit and Dana axles and parts. We are proud to be a member of the Saskatchewan Oil & Petroleum Industry.

www.winacott.ca Saskatchewan Oil Report 2014

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Custom rod strings for maximum production Penta Completions Supply and Services Ltd. provides complete rod-pumping optimization, design, supply and services to companies in Western Canada and worldwide, specializing in sucker rodpumping difficult oil wells. From its very beginnings in 1987, Edmonton-based Penta Completions had the good fortune to work with rodpumping design and analysis pioneers, Dr. Sam Gibbs and Mr. Ken Nolen, whose expertise has stood Penta in good stead over the ensuing years. “We’ve earned an international reputation for helping producers design and install anything from a conventional pumping configuration, to a highly specialized rod string,” says Penta Completions president Tom Dennehy. Penta provides analysis and optimization recommendations based on fluid level, POC data and dynamometer testing, together with a complete line of steel and fiberglass sucker rods, sinker bars and related accessories to support those recommendations. Its services also include long-term monitoring and optimization through cellular-accessed pump-off controllers. Penta specialists will supervise installs to ensure optimal performance and life cycles in rodpumped oil wells. “The things we do will increase the life of the downhole pumping system, limit pumping unit repairs, and increase the average time to failure from months to years,” says Penta consulting engineer Fred Morrow, who has been involved in the design and manufacture of fiberglass sucker rods since their inception. “We’ve optimized rod-pumping to where the mean time to failure has been increased by magnitudes.” “Everything we’re doing now is based on years of analysis and evaluation,” says Penta sales manager Jeff Wanner, not58 Saskatchewan Oil Report 2014

ing that the company’s 10 front-line staff have an average of 25 years experience, with some having close to 50 years in rod pumping. As Penta’s business development specialist Bob Wanner puts it: “With our experience, and having worked so closely with customers over the years, we are able to utilize the available software to more accurately predict end results. All we’ve ever done since the company was incorporated 27 years ago is exactly what we do today.” Jeff Wanner adds: “We’re not guessing at anything—our methods rely on making decisions based on experience and actual well data. There is no trialand-error involved in what Penta does. Our past experience allows us to be proactive. We can typically spot potential problems before the well is equipped, as opposed to waiting for a problem to arise and then fixing it afterward.” SUPEROD, Penta’s supplier of fiberglass sucker rods, has installed more than 3,900 rod strings with zero operational failures since coming on the market. The principals behind SUPEROD— the same people who worked on the development of the original fiberglass

rod—have spent the past 25 years improving their product, to a point where SUPEROD is the most technologically advanced fiberglass rod on the market today. Fiberglass rods, which have increased corrosion resistance, are a tool that saves surface equipment costs, cuts power consumption and lowers energy bills. “Fiberglass rods reduce operating costs overall, as well as reduce capital costs,” Bob Wanner says. The Bakken play in the U.S.—trending deeper than in Canada—lends itself to take full advantage of all of the benefits achieved when utilizing SUPEROD fiberglass rod technology. With the addition of HiTemp SUPEROD fiberglass, there are no longer wells that should not be considered fiberglass candidates. As end-users look for ways to reduce capital and operating costs, fiberglass can go a long way to achieving that goal. From the very beginning, Penta has worked with software developers and assisted them in the development of today’s industry-wide premier rod-pumping predictive software. Penta was one of the first companies to become involved with dynamometer


analysis and automation, helping in the advancement of design and optimization of oilwell pumping systems. “Our automation services focus on an understanding of the application,” Bob Wanner says, explaining that Penta believes a successful fibreglass rod installation is usually related to a successful automation program. “It’s like having a field operator on the well-site 24 hours per day, seven days per week, watching that you don’t have equipment failures, and indicating trends in the data coming back.” These are just some of the reasons why customers are choosing Penta for the long term.

“They offer the full-service package: not only the product but also the design, installation and follow-up,” says Rod Mumby, Western Canada production manager for ConocoPhillips Canada. “That’s the benefit and the beauty of Penta—that, and the quality of their people. Their staff are very, very knowledgeable. They make great suggestions to help our engineering staff out.” In Western Canada, ConocoPhillips has been using Penta’s steel and fiberglass rods for the past 15 years. “It’s a fully encompassing relationship we have and it covers all aspects of our business, not only new wells but the old wells as well,” Mumby says. “They are com-

petitive on pricing, but they aren’t just trying to sell us a product—they really want us to get the right product for our wellbores and ensure we make money with the product they are selling us. They are full-service—that is what they are really, really good at.” Another benefit, adds Mumby: Penta holds SROD and SAM schools for its customers. For well optimization on pumping installations, Penta’s prompt service, technical expertise, pumping equipment and attention-to-detail are an invaluable asset to companies seeking to achieve maximum production with minimum operating costs. v

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Oilmen honoured at 2013 Saskatchewan Oil & Gas Show By Jennifer LaCharite He’s a “Big” deal in the oil industry and in June 2013, Derrick Big Eagle, cofounder of Eagle Drilling Services Ltd., was named Saskatchewan Oilman of the Year by the Saskatchewan Oil Industry Board of Governors at the Saskatchewan Oil Gas Show in Weyburn. Every two years since 1989, the board has recognized individuals who have made significant contributions to the petroleum industry in Saskatchewan, as well as outside the province. The Saskatchewan Oilman of the Year Award recognizes an individual currently working in the Saskatchewan oil and gas sector who is making a significant contribution to the growth and success of the industry in the province. “Derrick Big Eagle’s story is a true Saskatchewan success story—a man who had a vision, and worked to realize that vision. A positive force in our industry and in our community,” said Bonnie DuPont, former Enbridge executive and cochair of the awards, at the event. Also honoured at the awards luncheon were inductees to the Saskatchewan Oil Patch Hall of Fame Awards. These awards recognize exclusively Saskatchewan-born oil industry leaders who have had a significant impact on the industry in Saskatchewan and beyond. The 2013 Hall of Fame recipients included: • Murray Edwards, owner and president of Edco Financial Holdings Ltd. and chairman of Canadian Natural, a world-class oil company, originally from Regina. 60 Saskatchewan Oil Report 2014

Left to right: Saskatchewan Oil & Gas Hall of Fame inductees Hank Swartout, Marvin Romanow, Oilman of the Year Derrick Big Eagle, Stewart Hanlon, and Murray Edwards.

• Stewart Hanlon, president and CEO of Gibson Energy, originally from Swift Current. • Marvin Romanow, former president and CEO of Nexen, originally from Canora. • Hank Swartout, founder and former executive chairman of Precision Drilling (1987) Ltd., originally from Melfort. “These individuals are some of the best and brightest in the petroleum industry—not just in Saskatchewan, not just in Canada, but [also] around the world. They are a testament to the leadership and talent our province produces,” said co-chair Murray Propp, CEO of Paxton Energy. 2013 Saskatchewan Oilman of the Year: Derrick Big Eagle Derrick Big Eagle was born and raised in Manor, Saskatchewan. At the age of 15, Derrick was offered the opportunity

to work in the drilling industry. The hardworking teenager soon parlayed that summer stint into a career. After he graduated from high school, he became a full-time “roughneck”. By the age of 20, and working with various contractors, he became the youngest driller in Saskatchewan’s regional oil industry. When he turned 25, he was the youngest drilling rig manager in southeast Saskatchewan. Five years later, he changed his focus and became a drillling consultant. Derrick worked for numerous small exploration and production companies but also worked very closely with Northrock Resources for four years. During this time, Northrock’s production went from 800bbls/day to over 7,000 bbls/day and Derrick earned Northrock’s Health, Safety and Environment award. At 35 years of age, he co-founded Eagle Drilling Services Ltd. to become the


youngest owner of a drilling company in Canada. A member of the Ocean Man First Nation, Derrick also became the first aboriginal to own and operate such an enterprise. The Saskatchewan-based business, which serviced the burgeoning Canadian Bakken oilfield area, achieved rapid growth in three years through advanced technology and commitment to its employees’ health and safety. In 2011, Eagle Drilling was acquired by CanElson for $78 million. Other 2013 Saskatchewan Oil and Gas Show Hall of Fame award winners Originally from Regina, Murray Edwards is the owner and president of Edco Financial Holdings Ltd. and chairman of Canadian Natural, a world-class oil company. Edwards is also one of the most successful entrepreneurs in Canadian history. He has a wide range of business interests, including oil and natural gas, energy services, mining, aerospace, ski resorts—and even NHL hockey, as he is chairman and one of the co-owners of the National Hockey League’s Calgary Flames. Edwards has built and revitalized enterprises that today support over 25,000 direct employees and tens of thousands of indirect employees, and have contributed hundreds of millions of dollars in taxes, royalties and community investments throughout Canada. In addition, he has been a leader in embracing and implementing corporate social responsibility within his business enterprises and has a strong record of community service. Originally from Swift Current, Stewart Hanlon is the president and CEO of Gibson Energy. Under Hanlon’s leadership, the enterprise value of the company grew significantly, setting Gibson up for a successful IPO in June of 2011 (the stock price on the IPO was $16). In the ensuing two-year period, the company has grown rapidly and today trades near $27 with an enterprise value just shy of $4 billion. Hanlon and his family have been tremendous supporters of the Swift Current community: the Hanlon wing of the new hospital is a testament

Left to right: Bonnie DuPont, co-chair of the awards; Oilman of the Year Derrick Big Eagle; Murray Propp, co-chair of the awards; and Minister of the Economy Bill Boyd.

to the philanthropic mindset of this family. Originally from Canora, Marvin Romanow is the former president and CEO of Nexen. In leading Nexen through collaboration and influence, Romanow structured three joint-ventures with Asian interests, bringing over $3.0 billion of investment to Nexen’s business. The relationship with one of the joint-venture partners led to a friendly bid for Nexen at a 60 per cent premium to the existing share price. Romanow was recognized as Canada’s “CFO of the Year” in 2007. He co-chaired a $75-million capital campaign for the University of Saskatchewan and served as division leader of the Nexen United Way 2002-2006.

Originally from Melfort, Hank Swartout was the founder and former executive chairman of Precision Drilling (1987) Ltd. Swartout was able to direct and lead Precision Drilling into becoming one of the largest oilfield service companies in the world with over 15,000 employees working in 34 countries. Co-chair of the Calgary United Way campaign 2006, Swartout continues to support the Calgary United Way as a major annual donor and provides ongoing annual support to the Multiple Sclerosis Society and the Sheldon Kennedy Centre. Republished from DiscoverWeyburn.com with permission from Jennifer LaCharite and www.DiscoverWeyburn.com. v

Arcola, SK

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Finding the right air for extreme environments By Lurene Haines, VMAC Communications

During the course of Jason Obenauer’s career, he has witnessed significant improvements in the mobile compressed air industry. The most notable of these, and the ones that have had the most benefit for him, are portability and the ability of equipment to operate reliably in extreme cold climates. Now, as the branch manager for Finning (Canada) in Fort Nelson, B.C., Obenauer is responsible for the fleets that provide service to the oilfields and other heavy industries. And those industries operate in extreme-cold and highly-rugged environments. Obenauer must ensure that his customers’ needs are met reliably. “Prior to the compact VMAC UNDERHOOD system, options were too limited [in the mobile compressed air industry],” he says. “Tow-behind units were not an option due to terrain and reciprocating compressors were too slow.” Portability and weight are critical in order to run the maximum chassis capacity. The right CFM, ease-of-use, and space and weight are the three most important factors for a company like Finning (Canada). “We need to get air quickly and ensure that no customer waits. The compact, lightweight characteristics of VMAC’s hydraulic system [the PREDATAIR] and their engine-driven systems

62 Saskatchewan Oil Report 2014

[the RAPTAIR60 and the RAPTAIR-MF] make them a superior solution and provide the ability to easily transfer the service body and compressor to a new chassis. However, the VR70 UNDERHOOD is our staple product. It allows us more payload and doesn’t take up valuable space on a service body side pack.” With an 80-year history, Finning (Canada) is a massive company that sells, rents and provides customer support services for Caterpillar equipment and engines in western and northern Canada for many big industries including pipeline/oilfield construction, mining, forestry, and construction. Because of the size of their fleets they expend a lot of effort, before equipment is installed on their vehicles, discovering any issues that might crop up once the equipment is in the field. Depending on the type of compressor, many different factors can impact optimum performance. Oil type and pre-warming the system are two factors that have an immediate impact on engine-mounted systems, but the use of the right synthetic oil and simply firing up the vehicle engine can prevent problems. Hydraulic systems can be remarkably resilient in the cold, since only the PTO needs to be engaged for hydraulics to run, and simple solutions like automated heater blocks for cold climates and hydraulic tank heaters to keep hydraulic fluid flowing correctly provide painless fixes.


Finning (Canada) is also very pro-safety—a primary focus of Obenauer’s job—and mobile compressed air choices are carefully reviewed with that in mind. Slipping, falling and equipment risks, for example, are part of the overall analysis that Finning (Canada) does when considering equipment acquisitions. “Correct system use is key,” says Obenauer, “and for that reason Finning (Canada) conducts many pilot projects with prospective equipment. Finning (Canada) can’t have any safety issues at all,” he asserts. “We look for any and all possible issues. Safety is a priority concern for us and our customers.” This pre-use analysis gives Finning (Canada) a chance to determine where challenges might exist and ensure that correct operation and maintenance procedures are in place before equipment is deployed. Finding the right air compressor system for extreme environments is not just a challenge for our most northern neighbours. Service providers like Finning (Canada) take those concerns seriously and expend much energy and effort in ensuring that the right mobile air compressor system is selected, that it is operated correctly, properly outfitted with the right cold-weather accessories, and regularly maintained. “As a consumer I am constantly amazed at VMAC’s subtle [product] upgrades,” Obenauer adds. “They are the right choice for our needs.” v

Saskatchewan Oil Report 2014

63


Visit the 22 Williston Basin Petroleum Conference & Expo nd

By Ron Ness, President, North Dakota Petroleum Council

It’s an exciting time for North Dakota, particularly in the Williston Basin, as the Bakken and Three Forks continue to produce great results and capture the attention of the region and the country. The Williston Basin continues to enjoy worldwide attention, having a significant impact in the United States and Canada. As our theme says, we are “Bakken Strong”—with strong economies, technology and business and job opportunities driving our states, provinces and nations forward into an energy renaissance and new era of North American energy security. For those interested in learning more about this valuable resource, the 22nd

annual Williston Basin Petroleum Conference & Expo to be held May 20th to 22nd, 2014 will provide the perfect opportunity. The Conference will be held at the Civic Center in Bismarck, North Dakota. The North Dakota Petroleum Council will host the event along with the North Dakota Department of Mineral Resources and the Saskatchewan Ministry of the Economy. Attendance for this international conference is anticipated to exceed 4,000 individuals. The Williston Basin Petroleum Conference & Expo was created in 1992. The conference goal has been to provide an outstand-

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64 Saskatchewan Oil Report 2014

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ing line-up of presenters at a great venue for local, regional, national and international industry leaders to gather and exchange new ideas and technology. In recent years, information exchanges have led to more efficient oil drilling and completion methods being implemented in the Bakken and Three Forks formations. The Williston Basin Petroleum Conference & Expo is held annually, with the location alternating between Saskatchewan and North Dakota. Every year, this conference brings together a wide array of industry representatives, regulators and political leaders from across the United States and Canada, all with a vested interest in the Williston Basin. As always, the technical presentations will be a highlight of the conference, as industry experts from across North America will share information on all the hot topics surrounding the shale play in the Basin. The conference will include more than 75 presenters covering a wide array of topics including the latest advice on technology, engineering, geology, drilling, well-completion techniques, pipelines and marketing. A Bakken/Three Forks Core Workshop will also be offered on Tuesday, May 20th. In years past, these presentations have been of interest to many conference attendees and have sold-out quickly. New to this year’s conference will be Bakken Basics Education Sessions for the public on Tuesday, May 20th at the Ramkota Hotel. Delivering the keynote speech at the 2014 conference will be Lee Tillman, Marathon president and CEO. The conference

23

RD

will also feature a CEO panel with participants Harold Hamm, Continental Resources chairman and CEO; Tommy Nusz, Oasis Petroleum director and CEO; and Jim Volker, Whiting Petroleum chairman and CEO. The conference will feature an expo comprised of more than 450 indoor and outdoor exhibitors. Registration information is available online at www.wbpcnd. org. Contact the North Dakota Petroleum Council with questions at 701-223-6380 or via email at ndpc@ndoil.org. v

WILLISTON BASIN PETROLEUM CONFERENCE

SAVE THE DATE

April 28 - April 30, 2015 Regina, Saskatchewan, Canada • Technical Talks • Exhibitor Booths

• Workshops • Activity Updates “Hot Plays” NORTH DAKOTA

 NORTH DAKOTA





OIL AND GAS DIVISION

Department of Mineral Resources

For more information please visit www.wbpc.ca Saskatchewan Oil Report 2014

65


WellTraxx delivers solutions for Saskatchewan landowners, rural municipalities For many Saskatchewan landowners and rural municipalities, the province’s booming oil and gas industry has created numerous opportunities and benefits. It has also created many challenges for those tasked with managing its growth on their land, or within their municipal boundaries. Two Saskatchewan-raised entrepreneurs

WellTraxx co-founders Kris Bower (left) and Casey Ziegler launched the company in 2009.

are delivering dynamic software applications and some common-sense solutions to help meet those challenges. WellTraxx Ltd. co-founders Kris Bower and Casey Ziegler began their careers in the energy industry as licensed land agents, acquiring surface leases and pipeline right-of-ways from landowners for

Prepare your Staff for the Oil and Gas Industry

Safety training is offered weekly at both Battlefords and Meadow Lake Campuses. For more information, visit

www.nwrc.sk.ca 66 Saskatchewan Oil Report 2014

oil and gas development. In 2009 they launched WellTraxx Ltd., an oil and gas asset management company designed to help landowners more effectively administer their oil and gas holdings. They extended their services to include Saskatchewan rural municipalities with the development of WellTraxxRM, a software application born through a 2013 pilot project with the rural municipalities of Gull Lake, White Valley and Monet. WellTraxxRM was officially launched in March 2014. The growth in demand for WellTraxx’s services is a direct result of the significant oil gas development in the Saskatchewan, which Ziegler feels represents a brandnew chapter for his home province. “The positive impact of oil and gas development in our province is immeasurable,” says Ziegler. “It’s created jobs and opportunities that have either allowed our young people to stay home, or finally come home in my case.” Bower manages the WellTraxx head office in Medicine Hat, Alberta, while Ziegler moved back to the southwest in 2012, officially opening the company’s Saskatchewan office in Eastend in March 2014. It’s an opportunity he didn’t ever think would come when he followed many of his peers to Alberta 20 years ago. “It’s sure funny how things work,” says Ziegler. “When I left in 1993, I really didn’t think I would ever be back.” When it comes to managing significant oil and gas development, the challenges landowners and rural municipalities face


The new WellTraxx location in Eastend, Saskatchewan, opened in March 2014.

are generally a result of the significant amount of paperwork and information with which they are dealing. Without the proper tools to get the job done, it can quickly become overwhelming. “For many of our clients, they were dealing with oil and gas development on this scale for the first time,” says Bower. “Yet there was no one out there offering them the assistance they needed, or spending time with them to develop solutions that would simplify the whole process.” “Unfortunately, the only way to get the job done was the hard way.” What makes WellTraxx unique is its solutions-based approach founded upon defining the clients’ needs and then bringing together the resources required to develop products and administrative services to solve real, every day challenges. “We’re not a software company; our focus is using our energy industry experience to help those who are working with it every day,” says Bower. “None of what we do is based on theory; it’s about working directly with each client to help them develop the tools and resources they need.” With WellTraxx, landowners can consolidate all of their important oil and gas agreement information into an online account. From there, the software does much of the work for them, tracking annual rental payments and alerting the landowner of time-sensitive elements such as lease rental reviews or pipeline crop-loss damages as they come due. “It’s an easy-to-use, straightforward program designed to meet the landowners’ needs,” says Ziegler. “And we sup-

port it with a team of oil and gas administrators who are there to help and answer any questions along the way.” It was through working with landowners that WellTraxxRM was born. “I was setting up a friend of mine on WellTraxx, who also happened to be an RM councilor,” explains Ziegler. “He was impressed, and said you know who could really use some help like this: our RM administrators.” Ziegler worked directly with three RMs throughout 2013 to identify their needs, with the result being WellTraxxRM, the first dedicated software solution designed to help rural administrators manage oil and gas development. “There were a lot of dynamic elements that had to be brought together

The WellTraxx administrative team brings over 20 years of energy industry experience.

to make this happen—software, mapping, data services for licensing information,” explains Ziegler. “It was a big project, but a great experience to work closely with some talented rural administrators to create something that is going to benefit municipalities across the province.” It’s been quite a ride for Bower and Ziegler, since launching their enterprise from a spare bedroom in the latter’s basement in late 2009. “We had the work ethic; it seems like Saskatchewan farm kids come with that built in,” laughs Bower. “But it takes an incredible amount of luck and good timing to get any new idea off the ground, and we’ve been fortunate to have both.” v

Saskatchewan Oil Report 2014

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Educating the new breed of energy industry leaders By Dr. Tim Coburn, Director, Master of Energy Business, and Professor of Energy and Operations Management, Collins College of Business – The University of Tulsa Unless you’ve spent the last few years on Mars, you are keenly aware that North America is in the middle of a monster oil and gas boom. The current energy “revolution” … and it’s not limited only to oil and gas … is front-and-centre in towns and communities all across the continent, powering local and regional economies, as well as the livelihoods of individual citizens. Propelled by transformational technologies and spiraling worldwide demand, this latest industry expansion seems destined to continue for the foreseeable future. The energy workforce is changing, too. Employment-wise, the timing of the present industry surge couldn’t be worse, what with baby-boomers steadily moving into retirement, taking their wealth of knowledge with them. To make matters worse, the industry is still paying dearly for restricted hiring and training during a period of contraction a decade or so ago. There simply aren’t enough experienced, well-trained workers, whether technical or managerial, to go around, particularly in the five- to 10-year experience window. Advances in technology are also changing the face of today’s energy workforce. Automation, computerization, and standardization are drastically altering the skills needed to get the jobs done. Moreover, there is a lot more focus on business processes, overall corporate performance, and social responsibility. An important result is that younger professionals, particularly those who 68 Saskatchewan Oil Report 2014

are tech-savvy, are being asked to take on a lot more responsibility, creating a new breed of energy-industry leaders. Unfortunately, their backgrounds don’t always include the kinds of business skills needed to manage organizations effectively. Companies find themselves having to invest in expensive, time-consuming training programs just to bring these emerging leaders up-to-speed. Making matters worse, today’s newfound energy resources are often located in geographic areas with limited accessibility or lessthan-desirable living conditions, making it difficult to promote and relocate workers (particularly those who are accustomed to more urban environments) and to provide the experiences and training they need to do their jobs. In response to industry pleas for universities to teach students more about the business of energy, the University of Tulsa launched its Master of Energy Business (MEB) program in the fall of 2012. Designed for working professionals, the MEB program builds on the university’s long-term success at delivering energybusiness training at the undergraduate level and intentionally targets the earlyto mid-career talent pool that is poised to move into corporate management and leadership. With all course content delivered online, the goal of this innovative graduate management program is to rapidly advance students’ career trajectories, positioning them to fill the many jobs that are already available. The

program is perfectly suited for individuals working in communities where access to energy business and management training are locally unavailable. Presented by the nationally-ranked and fully-accredited Collins College of Business, and headquartered in one of North America’s most significant energyproducing regions, the Master of Energy Business program leverages energy-focused instructional resources unparalleled at other universities, including the preeminent McDougall School of Petroleum Engineering; Petroleum Abstracts, the world’s leading source of oil and gas information; The Energy Law Journal, a joint publication of the College of Law and the Energy Bar Association in Washington, D.C.; the Energy Management Center; and the Tulsa Institute of Alternative Energy.

Our primary mission is to train energy professionals to become strong managers, problem-solvers, and idea-generators so they can add value to their companies. Modeled on a traditional MBA platform, the Master of Energy Business curriculum includes courses such as management, accounting, and finance that would be found in almost every MBA offering. Its distinctiveness is that every course is taught from an energy perspective. Rather than the retailing, manufac-


turing, and service industries typically emphasized in MBA programs, students intentionally study energy companies and their operations. In addition to these core courses, the curriculum includes a number of other topics, such as energy policy and energy markets, that are unique to this industry. The program is specifically designed to provide graduates with the breadth of corporate knowledge and skills necessary to address the rapidly evolving and expanding energy economy. Individuals who approach online learning for the first time often have a number of questions about how things work and frequently ask about the interaction between faculty and students. The University of Tulsa expends considerable resources in an effort to replicate its traditional brick-and-mortar classroom environment as closely as possible, providing similar kinds of learning opportunities and experiences that are available to oncampus students. Courses are taught by full-time faculty members from across the campus, most of whom have past or current experience and strong connections in the energy sector. Industry practitioners and other experts enrich the curriculum as guest lecturers, and team projects are included in most classes. All of this is accomplished through stateof-the-art communications technology, much of which participants already use in their day-to-day work activities. MEB courses are definitely not self-study or correspondence courses. Students have full access to recorded lectures, participate in “live” discussion sessions, and engage their professors and classmates through a variety of channels. Most students report that they find themselves interacting with their online classmates more than they ever did in a face-to-face classroom environment. In addition, over the course of their programs, students attend two three-day executive-style residency seminars on-campus to facilitate networking and team-building. With close to 150 students currently admitted or enrolled from all across the U.S. and Canada, the MEB program represents an attractive opportunity for individuals working in the fast-paced and

Our campus has long been known for being the top faculty in the areas of petroleum engineering, chemical engineering, and the geosciences. We’ve recently added world-class expertise in energy accounting, energy economics, and related disciplines. Combine these exceptional campus-wide faculty and resources with our city’s rich energy heritage, the University of Tulsa’s many ties to energy partners, and a strong investment in state-of-the-art instructional technology, and you have a winning environment for working professionals seeking to advance their energy business careers. ~ Gale Sullenberger, Dean, Collins College of Business dynamic energy industry to enhance their careers. Current students range in age from 23 to 63, with the typical student being about 33 and having six to eight years of experience (a minimum of two years is required). The student pool represents almost all segments of the energy industry, including upstream, midstream, and downstream oil and gas, along with power generation, nuclear, and alternative fuels. Major integrated energy firms to small independent service companies are represented.

If you’re seeking a way to move your energy career to the next level, you may find that the University of Tulsa’s Master of Energy Business program is exactly what you’ve been looking for! To learn more about it, you should contact Ashley Chapa, recruiting and marketing coordinator for graduate business programs in the Collins College of Business, at: ashley-chapa@utulsa.edu or 918631-3553. You can also find additional information and application details at www.utulsa.edu/meb. v

Noble Well Services Inc.

Box 393 • Arcola, Saskatchewan • S0C 0G0 • noble.well.services@sasktel.net AREA MANAGER Chris Nidesh | 306.577.8793 FIELD SUPERVISOR Shane Ippolito | 306.577.7807 SAFETY CO-ORDINATOR Kim D’Amour | 306.575.8792

Locally owned and operated. Experienced crews. Mobile freestanding equipment. Saskatchewan Oil Report 2014 69


Seeing the big picture: Using remote sensing for reclamation monitoring Satellite imagery is used to monitor and forecast vegetation health and growth.

A web-based management tool showing health over time and predicted plant growth.

70 Saskatchewan Oil Report 2014

Although it is often viewed as one of the last stages of a well project’s operation, reclamation activities are planned and execution has begun long before ground is broken. Often, stakeholders including governments, communities and oversight groups consider reclamation activities a barometer for the overall environmental impact of a project. Because of this scrutiny, accurate monitoring and reporting on the progress of reclamation activities is an important link between the developer and these stakeholders. But environmental and social responsibilities aren’t the only issues at stake for reclamation activities. Like most aspects of the industry, there is a huge financial stake in reclamation monitoring. The Alberta Government reports that there are currently over $912 million in reclamation security bonds held from the industry, alone. Given the importance of all of these issues, it becomes clear that accurate, easy-tounderstand information is essential to reclamation monitoring. But getting the big picture of the progress of a reclamation area can be very difficult. Often, plant and soil tests are carried out as part of an environmental assessment. However, spot tests are not indicative of an entire area, and on large projects there can be a significant difference in health across a reclamation area. But as technology progresses, so too does our ability to use it to solve problems. With the proper tools, training, and experience, satellite imagery can provide answers. Satellite imagery is optimized for vegetation and with more than 20 years experience analyzing satellite imagery, Western Heritage has developed a management tool that


One of the most desirable aspects of satellite footprint monitoring is that it provides a visual reference, so that interested parties can actually see the “big picture” of the progression of reclamation efforts.

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uses remote sensing to accurately measure vegetation change in an environmental footprint. This web-based tool provides managers with a detailed map of the area of interest that measures and displays vegetation health on several key indices. The map is regularly updated through an imagery subscription, and provides faster, more accurate monitoring and reporting by measuring the health and growth of vegetation in a reclamation area in real time. One of the most desirable aspects of satellite footprint monitoring is that it provides a visual reference, so that interested parties can actually see the “big picture” of the progression of reclamation efforts. In addition to demonstrating the effectiveness of current reclamation activities, satellite monitoring has the ability to look back in time. With imagery available dating back to the early 1980s, it is possible to track footprint changes pre-, during, and post-project. With reclamation judged on equivalent land capability, and many efforts lasting several decades, it can also look at vegetation growth patterns to establish a more accurate baseline for goals. With Western Heritage’s custom model, it is also possible to forecast the growth and health of a reclamation area. This information can to be used to help set realistic goals, or to act as a measuring stick for ongoing activities. Embracing new technology for monitoring is valuable, as it provides more information and better answers. But using it also demonstrates a commitment to sustainable resource development; it shows that an organization takes its reclamation commitments seriously and will employ cutting-edge technology to reach them. As the world changes, so too do the ways we are able to see it. Satellite imagery allows us to see the big picture, while focusing on the information we need. For more information about remote sensing and other valuable services, contact Western Heritage at info@westernheritage.ca or 1-306-975-3860, or visit www.westernhertage.ca. v


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No place for medical marijuana – in safety-sensitive roles By Arlene Jorgenson

Safety-sensitive industries, such as construction, oil and gas, transportation, mining and manufacturing have been utilizing substance-abuse prevention policies with drug and alcohol testing since 1997, especially in Western Canada. Most follow what has become known as the “Canadian Model”, a solid policy framework of responsibility based on preventing the effects of drug and alcohol misuse and abuse in the workplace. This policy prescribes a balance of education for supervisors and offer of help for workers who need it, with protocols for testing and consequences in circumstances that require it.

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As a large third-party administrator (TPA) based in Saskatchewan, we average 4,000 drug and alcohol tests per month across the Prairies. Taking all industries together, three per cent of those tests are positive, with marijuana being number one and cocaine a fast-rising second. It’s not surprising, then, that medical marijuana shows up as a “defense” once or twice a year. Medical marijuana is prescribed by select physicians as a last-resort treatment, most often for chronic illness with pain, weight loss, and/or loss of appetite, such as multiple sclerosis, HIV/AIDS, cancer, or spinal cord injury. The use of medical marijuana has been well-researched from experience in the Netherlands, Israel, and other countries, as well as work done in Canada. From this experience, guidelines and protocols have been developed. Health Canada is very clear to say that medical marijuana is “not an approved therapeutic product”. But since there is a demand for it, they have taken the lead in setting guidelines for doctors and controlling the product for the safety of Canadians. When I use the term “medical marijuana” here, I am only talking about those who have sought and obtained true authorization from Health Canada, not those with cards from the “Hemp Society of Lower B.C.” or something similar, who want us to think they have a legal card. We’ve seen plenty of those! So what happens in the workplace when medical marijuana shows up? Medical review officers and TPAs have had to get very clear on the medical, legal, and safety issues surrounding this so we can advise our clients well. Let’s be clear: workers in non-safety sensitive positions should not be identified nor penalized for using medical marijuana. However, when a drug test comes back as positive for a worker in a safety-sensitive position, and in discussion with the medical review officer (MRO) the worker reveals they have a Health Canada prescription for medical marijuana, the MRO will not pass the worker. The result will be reported as “positive”. There is no automatic pass for medical marijuana in a safetysensitive position – the same way there is no safe amount of alcohol when driving.


Summary: • In a safety-sensitive position, a prescription for medical marijuana will not yield a pass on a drug screen and does not require the employer to accommodate the worker. • Workers cannot be tested simply on the basis of knowing they are using medical marijuana. • Workers who test positive on a drug screen and who use medical marijuana will have to make a choice if they want to remain in their safety-sensitive position. To update your company policy, here is suggested wording for those on medical marijuana: “The company’s drug and alcohol policy and procedures do NOT accommodate any worker in a safety-sensitive position for the use of medical marijuana. Medical review officers will not verify a drug test as ‘negative’ based upon information that a physician recommended that the worker use medical marijuana as it is still listed as a controlled substance. Should the use of marijuana be legalized at any time, its use will still be prohibited under this program and shall continue to be tested for. “If a worker is legally registered for the use of medical marijuana, this should not be used as the basis for reasonable suspicion testing in and of itself, as it does not automatically imply that a worker is impaired while on the premises of the workplace so long as it is used in accordance to the restrictions

established by the prescribing physician. Workers in safetysensitive positions will not be tested for reasonable suspicion purely based on the knowledge that the worker was registered to use medical marijuana. Reasonable suspicion testing is done upon a trained supervisor’s evidence and signs of impairment only.” You can access the full Health Canada medical marijuana prescribing profile with all research through this link. It is easy to read and very educational: www.hc-sc.gc.ca/dhp-mps/marihuana/med/infoprof-eng. php#chp77 Point to ponder: Is the emergence of medical marijuana in safety-sensitive industries indicative of more tradespeople working with chronic illness or is it evidence that workers are trying to “beat the system”? What’s your experience? I would love to hear from you. Click on “contact us” from our website, healthservsask.com. Arlene A. Jorgenson BSN RN COHN-C is the CEO of HEALTHSERV (SASK), a division of WellPoint Health Ltd. with 13 occupational health clinics from Ontario to B.C. specializing in drug and alcohol testing, fit-for-work medicals, and disability management. You can reach her at www.healthservsask.com or 1-877-374-9079. v

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Economic expressway to market Sidebooms being used to support the pipeline during welding. Image courtesy: Alliance Pipeline.

History has a way of repeating itself, as the saying goes, and it certainly rings true for Alliance Pipeline. The idea behind Alliance’s original mainline was to help Western Canadian Sedimentary Basin producers move trapped natural gas to market. Fast-forward to today and a similar situation in the North Dakota Williston Basin. Oil is the region’s primary focus, but a lack of transportation infrastructure means many producers must flare the natural gas associated with oil production. With Alliance Pipeline’s mainline already running through North Dakota, and with the state recently reaching gas production of more than one billion cubic feet per day, the timing was right for Alliance to expand into the heart of the Williston Basin. With Alliance’s unique ability to transport natural gas and natural gas liquids (NGLs), its connection to Aux Sable’s NGL fractionation facility and the environmental benefit of transporting gas versus flaring or venting, Alliance saw the business value of building a new pipeline 76 Saskatchewan Oil Report 2014

that would again help producers capitalize on their assets by exporting natural gas and natural gas liquids. In keeping with the Federal Energy Regulatory Commission’s process, which requires stakeholder consultation and efforts to minimize environmental impact, Alliance finalized the pipeline route and construction schedule. Taking extra care to avoid residences and sensitive habitats, highways, roads and railways, the final route extends in North Dakota from existing gas-processing facilities near Tioga and interconnects with the Alliance mainline near Sherwood. The Tioga Lateral not only provides an important economic opportunity for Williston Basin producers, but is also a key part of Alliance’s new competitive service offering. While market dynamics have shifted dramatically since 2001, when Alliance’s initial 15-year transportation contracts were signed, the design and capabilities of the Alliance Pipeline system remain competitive and financially advan-

tageous for producers today. Both the mainline and the Tioga Lateral provide a two-in-one solution; shipping natural gas with NGLs entrained in the gas stream. In liquids-rich geology like the Williston Basin’s, that makes the new Tioga Lateral particularly valuable. Construction on the lateral began in October 2012, which meant building and installing a majority of the pipeline during the winter. While not typical, the winter build provided additional environmental benefits, especially in wet areas, because the frozen ground created a stable surface for equipment. It also minimized impacts on native vegetation by leaving it intact instead of clearing it. However, a winter timeline was not without challenges; construction activities were modified to accommodate for the frozen ground, and teams worked through frigid temperatures to keep the schedule on-pace. Similar to the Alliance mainline, damage prevention and safety was incorporated into all aspects of the Tioga Lateral’s de-


Alliance Pipeline:

Well Connected Western Canadian Sedimentary Basin

Midwest Market Bakken

ACE Hub Connecting to Chicago Market

Ontario Market (Dawn) East Coast Market

Gulf Coast Refineries

u

Alliance’s mainline reliably delivers 1.6 billion cubic feet of high energy natural gas per day.

u

We provide customers a direct connection to Aux Sable’s world‑class gas processing facilities at the Chicago market hub and beyond.

u

Our new Tioga Lateral Pipeline connects Bakken producers via our mainline to strategic mid‑continent markets.

u

Alliance’s unique value proposition enables customers to capitalize on their NGL value.

Connect with Alliance at: www.alliancepipeline.com


Welded pipeline being lowered into the trench using backhoes. Image courtesy: Alliance Pipeline.

sign and construction process. This meant

Alliance applied the same state-of-the-art

using steel specifically sourced from a mill

technology used along the mainline that

that could provide the required higher-

monitors and operates the pipeline 24/7

quality and higher-strength steel, and

and can remotely control block valves to

coating the pipe with an epoxy to protect

adjust the flow of natural gas along the

it from possible corrosion. Additionally,

pipeline route.

78 Saskatchewan Oil Report 2014

After months of planning and hard work, it paid off; on September 1, 2013, the newly constructed Tioga Lateral added an additional 126 million cubic feet per day of takeaway capacity to the Alliance system and for Williston Basin producers. The system is currently contracted to ship 61.5 million cubic feet of gas per day, with additional capacity now being available for area producers. As the shale revolution continues, Alliance is fortunate to have receipt capabilities in several high-volume producing areas in close proximity to Alliance’s two pipeline rights-of-way, in both Canada and the United States. When you look at all factors: a two-in-one value proposition, new suite of customer services, and a connection to Aux-Sable’s world-scale fractionation and extraction plant (which saves producers upstream capital costs and provides access to premium downstream natural gas and natural gas liquid markets), it’s clear that Alliance Pipeline is the right company, in the right places, at the right time. v


WE KNOW THE DRILL. As the world’s largest privately held John Deere Construction and Forestry dealer, Brandt gives our customers the best value – like the John Deere 624K Wheel Loader. Its PowerShift™ torque converter transmission with Smart Shift™ technology lets you continuously evaluate speed and load conditions – meaning more power and control, for more productivity. At Brandt, our strength begins with our support, giving our customers access to our 24/7 Customer Support Centre staffed with John Deere certified parts people. With 27 locations across Canada and Brandt’s commitment to uncompromising after-sales support, we’ll always be there when you need us. That’s Powerful Value. Delivered.

brandt.ca 1-888-2BRANDT


Estevan attracting a whole new generation of investors and residents

Estevan provides its residents with a high quality of life and tremendous career opportunities.

Prairie Mud Service Serving The Saskatchewan Oil Industry Office: 738-6th St. ESTEVAN, SK

Oil Well Drilling - Mud

Rotary Drilling Bits

Ray Frehlick Cell - (306) 421-1880 Gerald Smith Cell - (306) 421-2408 Estevan 24 Hour Service

Phone: (306) 634-3411 Fax: (306) 634-6694 80 Saskatchewan Oil Report 2014

Known as Saskatchewan’s “Energy Capital”, Estevan has seen tremendous levels of growth in recent years. The local economy has long been based on coal mining, power generation, agriculture, and oil and gas; now geothermal has been added to the mix, further diversifying the local resource base. Significant financial investments have been made in the area, particularly as it relates to the resource sector. Attracting the people to fill the jobs required to achieve these projects has been the largest hurdle businesses have had to clear; recent movement on the housing front should start to alleviate this issue going forward. In the past two years, the city has seen 306 new units added to the local housing stock. This includes 44 single-family homes, six secondary suites, and 23 multi-family buildings comprising 256 total units. With three new subdivisions currently under construction, it is expected that the next two years will see additional home development. Four new hotels constructed over the past five years have also added 325 hotel rooms, while the two open work-lodges provide in excess of 500 rooms for workers. Located on the main north-south rail line and highway corridor with easy access to North American markets, Estevan is ideally located to take advantage of both Canadian and American markets. As such, Ceres Global Agriculture Corporation, in partnership with The Scoular Company, bought 1,500 acres of land 60 kilometres southeast of Estevan to construct a $90-million logistics terminal for shipping oil and agricultural commodities. The new facility will include a grain terminal, oil-loading site and transloading facilities for the import of oilfield items and equipment. The facility will include two high-efficiency rail loops, each capable of handling unit


Located on the main north-south rail line and highway corridor with easy access to North American markets, Estevan is ideally located to take advantage of both Canadian and American markets.

The local economy has long been based on coal mining, power generation, agriculture, and oil and gas; now geothermal has been added to the mix, further diversifying the local resource base. Photo credit: Jennifer Durr Photography.

trains of up to 120 rail cars. The three-year construction period began in the fall of 2013; once complete, the facility is designed to handle up to 40 million bushels of grain annually and 75,000 barrels of oil per day. The company anticipates in excess of 100 construction jobs to be created, with about 30 permanent positions made available once fully operational. Deep Earth Energy Production Corp. (“DEEP”), based out of Saskatoon, has planned a geothermal power plant by tapping into heat resources underneath oil and natural gas fields in the area. The project, starting in 2014, is expected to cost around $35 million and produce five megawatts of generating capacity. The technology is widely used south of the border as the U.S. is the world’s top producer of geothermal power; this facility will be the first of its kind in Canada and DEEP is already considering further develop-

ment of future facilities in the area that could generate upwards of 20 MWs each. Bayhurst Energy Services Corporation, in a joint-venture with Mistral Midstream Inc., has announced the construction of a facility called a “straddle plant” that will extract ethane and hydrocarbons from natural gas being transported on SaskEnergy’s natural gas system from the Bakken formation. The $72.5-million facility will be located near the Viewfield area of Saskatchewan (just north of Estevan). Once processed to recover the natural gas liquids, the natural gas will be compressed and re-injected into the transmission pipeline. Construction on the facility will begin in 2014, and the plant is expected to be operational in early 2015. Estevan is not just a great place to pick up a paycheque; there are tremendous cultural and recreational opportunities that ap-

Celebrating our 10-year anniversary.

Saskatchewan Oil Report 2014

81


The only largemouth bass fishing opportunity in Western Canada.

peal to a broad base of individuals. The Estevan Motor Speedway, a 1/8-mile oval dirt track, draws thousands of fans and drivers from both sides of the border. Right next door is the motocross track and soon enough, drag racers will have their own track to rip up, making for a

top-class racing complex only a few minutes out of the city. Boundary and Rafferty Dams offer tremendous fishing and boating opportunities, including the only largemouth bass fishing opportunity in Western Canada and more than 50 miles of waterways.

NOW OPERATING IN THE U.S.

hotshot

needs

Call 306 421 8822 for inquiries and pricing.

The Souris Valley Aquatic and Leisure Centre features a 25-metre indoor swimming pool, squash courts, weight room, skating rink, gymnasium and public library. The gem of the facility is Affinity Place, the newly opened arena that is home to the SJHL’s Estevan Bruins, as well as home to southeast Saskatchewan’s top concert facility; since opening in June of 2011, Affinity Place has hosted Tom Cochrane, Kim Mitchell, Hedley, Motley Crue and several other rock, country and children’s acts. The facility seats in excess of 2,200 for games and features 24 executive suites plus a lounge overlooking the ice area with retractable windows to bring spectators closer to game action. For more cultural pursuits, Estevan is home to the Souris Valley Theatre, offering two live theatre productions through the summer. As well, the Estevan Art Gallery and Museum along with the North West Mounted Police Museum present a diverse program of exhibitions and displays that contribute to the critical reflection of today’s art, culture and historical context. Estevan is also home to the Souris Valley Museum, a regional history museum that focuses on human development and daily life in southeast Saskatchewan. Estevan provides its residents with a high quality of life and tremendous career opportunities. With continued focus on economic and community improvement, Estevan will continue to maintain its position as Saskatchewan’s Energy Capital while attracting a whole new generation of investors and residents set to take part in this growing community’s exciting future. v

FM Trenching Ltd. We specialize in conductor, mouse and rat hole drilling as well as pilings & test holes. Mel Trobert, Owner #3 Jahn Street | Estevan, SK (306) 634-4577 | prairierathole@sasktel.net SERVING SASKATCHEWAN & MANITOBA FOR OVER 20 YEARS 82 Saskatchewan Oil Report 2014

NO JOB IS TOO BIG OR TO SMALL, WE DO THEM ALL P.O. Box 285 | Yellow Grass, SK S0G 5J0

Mickey 306-891-9508


• Coil Tubing • Snubbing Brooks, AB: Calgary, AB: Estevan, SK: Fort St. John, BC: Grande Prairie, AB: Lloydminster, SK: Red Deer, AB: Virden, MB: Swift Current, SK:

(403) 362-4335 (403) 781-5555 (306) 634-8886 (250) 785-5096 (780) 539-4440 (780) 875-5333 (403) 343-3174 (204) 748-2381 (306) 778-7707

• Fluid Pumps • Nitrogen Pumps High Performance / High Value PWS rigs are deployed from key centres in Saskatchewan, Alberta, Manitoba and British Columbia.

www.precisiondrilling.com


D&D Oilfield Rentals: A growing concern

D&D Oilfield Rentals (D&D) provides the safe, convenient and reliable accommodations, equipment and tool rentals in the Western Canada Sedimentary Basin. Our exceptional performance packages help our customers to lower risk and operating costs. The largest to the smallest oil and gas operators rely on our people, equipment and proven processes to perform safely and efficiently in all conditions. Conveniently located in Fort McKay, Redcliff, Lloydminster, Nisku, and Acheson, Alberta; and Swift Current and Weyburn, Saskatchewan, D&D offers a huge selection of virtually anything needed for oilfield services, from totally self-contained well-site trailers, to custom-built trash receptacles, state-of-the-art pre-mix tanks, trucks and loaders. Since joining Savanna Energy Services Corp. (Savanna) in 2008, D&D has been steadily expanding its operations to meet customer demand, and the start of 2014 has seen two very exciting advancements. Over the past few months, D&D has been working on a new, more comprehensive website with the goal of allowing customers better access to its equipment. The site was designed to be user-friendly, responsive to mobile viewing (smartphone and tablet), and contains an upgraded review of D&D’s products—from annulars to well-site trailers—with better photos, and equipment layouts where applicable. The site’s navigation has been upgraded, and other new features include a detailed contact page with Google enhanced location maps and a new content-management system. As the oil and gas industry is so dynamic, customers demand solutions that can meet their needs for flexibility and convenience. D&D recognizes that customers may want information in a variety of ways depending upon their individual circumstances or the nature of the task at hand. Other than geographic diversity, and the ability to provide for customers in both Alberta and Saskatchewan, D&D is always exploring ways of enhancing the customer experience and making their jobs easier.

84 Saskatchewan Oil Report 2014


“We wanted to provide our customers easily accessible, mobile information, wherever they are,” says Ken Goldade, D&D’s general manager. “At the same time, we will not compromise our responsive service. You will still get a real, live person when you call us, 24 hours per day, seven days per week.” Another major success story for D&D, and its parent company Savanna, moving into 2014 is the formation of a partnership with Fort McKay First Nation (FMFN), a Cree, Dene, and Métis community located approximately 60 kilometres north of Fort McMurray. In 2013, the Fort McKay First Nation was looking to partner with an energy services provider to add depth to its ability to effectively contribute to the stewardship of bourgeoning oilsands production in the Wood Buffalo area. In its assessment of potential partners, the FMFN had Savanna Energy Services Corp. (Savanna) on its list. Savanna has extensive experience in partnerships with First Nation communities throughout Alberta, and has been widely recognized for their approach to these ventures. In fact, in both 2005 and 2012, Savanna was winner of the prestigious Alberta Chamber of Commerce “Aboriginal Partnership Award”, and also won the Premier’s Award of Distinction in 2010 for its partnerships with First Nations groups. This track record appealed to the FMFN, as they are also well-known for their good working relationships with surrounding oilsands companies. The first joint venture of this partnership is the creation of Fort McKay Savanna Oilfield Rentals (FMSOR). The newly formed rentals operation already has a location in Fort McKay’s Caribou Energy Park, in the heart of the oilsands operations, with pumps, diverters, well-site trailers, catwalk trailers, light towers and heaters available. As its equipment offering increases, FMSOR will be able to serve the Wood Buffalo region with the same expertise and customer focus as all other D&D Oilfield Rentals locations in Western Canada. “Fort McKay First Nation has a long history of providing high-quality services to the energy industry through its joint venture businesses and the Fort McKay

Group of Companies,” says Gail Boehm,

operational expertise, we see growing op-

D&D’s VP, Rentals. “With their reputation

portunities for this partnership in the oil-

and solid experience combined with our

sands region.” v

EXCEPTIONAL PERFORMANCE • Well Site Accommodations

• Hot Shot Trucks

• Annulars

• Picker Deliveries • Light Towers

• B.O.P’s & Spools

• Loaders

• Trash Pumps

• Manifold Shacks

• Down Hole Tools

• Pipe Racks

• Drill Collars

• Pipe Trailers

• Drill Pipe

• Premix Tanks

• Tubing

• Rig Matting

• Flare Tanks

• Casing Scrappers

• 400 BBL Tanks

• High Sided & Reg Shale Tanks

• Floc Tanks • Flygt Pump • Generators

• Shock Subs • Slips • Stabilizers • Tongs & Power Tongs • Elevators • Trash Receptacles • Well Head Accessories

D&D Oilfield Rentals provides the safest, most reliable equipment and tool rentals in the Western Canadian Sedimentary Basin. With our exceptional performance packages and unmatched services/support, we help our customers lower risk, operating costs and expensive down time.

Redcliff, AB • Calgary, AB • Lloydminster, AB • Swift Current, SK • Weyburn, SK • Acheson, AB • Nisku, AB • Fort McKay, AB Head Office

Corporate Office/Sales

info@ddoil.net • www.ddoil.net • 1-877-548-2700 Saskatchewan Oil Report 2014

85


RAM Industries Inc.

Custom cylinder solutions for the oil and gas industry

RAM Industries Inc. (“RAM”) was established in 1973 in Yorkton, Saskatchewan. In its early years, the company focused on the production of hydraulic and pneumatic cylinders serving agricultural manufacturers across the prairies of central Canada. With four factory expansions over the last 40 years, cylinder design and manufacturing is still RAM’s core business and expertise. RAM Industries now serves a much more diverse engineered-product range of users in industries that include oil and gas, construction, mining, forestry, transportation, agriculture, material handling, and industrial equipment across the North America. As a custom manufacturer, RAM establishes a close technical rapport with every customer to share ideas and gather critical information regarding the cylinder’s fit and performance requirements. Within the oil and gas industry, this relationship is often with project managers, engineering consultants or teams, branch operations, service shops, rig sites, end-users, and entrepreneurs developing new applications to serve this dynamic market in Canada, the United States and Mexico. RAM Industries is very versed in cylinder applications within the oil and gas industry, including cylinder applications on drill86 Saskatchewan Oil Report 2014

ing and exploration equipment, production and service equipment, and accessories such as power-torque wrenches, pipe-handling equipment, grapples, and rig-walking systems. RAM can supply cylinder products from pre-engineered cylinder drawings; however, complete design services are more often the norm. Cylinder designs by RAM may originate from something as simple as a customer’s conceptual idea or a new product innovation, which is common in this growing industry. RAM also has the technical expertise to deliver cylinder solutions for other needs, such as cost reduction or performance improvement, reverse-engineering for replacement or repair cylinders, or re-engineering foreign designed cylinders to North American dimensional and material standards. Our engineers will work with you to design for your specific needs. Engineering services using 3D modeling are available to our customers and provide critical dimensions and simulated images of their custom cylinder. This service is beneficial to design verification, customer pre-approval, and integration of the file into the customers’ overall equipment design. On-site visits, engineering meetings, technical support, and prototype services are also

available to ensure cylinder fit and function testing before full production. RAM provides a diverse mix of cylinder designs to the oil and gas industry. While any customization is available, examples of common cylinders produced by RAM include: • Welded double- and single-acting cylinders • Dog house cylinders • Mechanical locking stabilizer cylinders • Pipe tub cylinders • Levelling cylinders • Hydraulic wrench cylinders • Mast-raising cylinders • Indexing cylinders • Mast-scoping cylinders • Make-up/break-out cylinders • Custom-designed telescoping cylinders • Heavy-duty cylinders • Position sensor (smart) cylinders • BOP cylinders • Catwalk cylinders • Hydraulic pump-jack cylinders • Large-bore cylinders • Long-stroke cylinders RAM’s manufacturing facility, equipment mix, and production flow is set-up to ensure customer orders are delivered on time. This gives customers the advantage of receiving the exact number of cylinders as required, at the time


Mast Raising Levelling Scoping Kicker Indexing Make-up/Break-out Top Drive Dog House Pipe Tubs Hydraulic Pump Jacks Hydraulic Wrenches Walking Systems

           

RAM’s expertise is with you from the initial concept to the final product. RAM INDUSTRIES INC. is a leading manufacturer of Custom Hydraulic Cylinders in North America. RAM’s ability to design and manufacture to Customer specifications is our specialty. The demanding environment of the Oil & Gas Industry and the need for longer cycle life can be a challenge. RAM’s proven designs are successfully working 24/7 today in the Oil & Gas sector as mast raising telescopic cylinders, leveling cylinders and doghouse platform cylinders. RAM cylinders are also extensively used on power catwalks, top drives, iron roughnecks, and pipe handling equipment. RAM is ISO 9001 certified. We employ state of the art equipment and processes to ensure the highest level of quality at every stage of manufacturing. RAM also offers CNC machining services for a dependable source of custom machined components and quick-turnaround cylinder repair services. For the best reliability in the industry call RAM today!

Your first choice reliable supplier of ISO 9001 certified custom design hydraulic cylinders and precision machining MEMBER

www.ramindustries.com RAM INDUSTRIES INC. PO Box 5007, 33 York Rd E., Yorkton, SK, S3N 3Z4 Canada Telephone: 1-877-799-1005  Fax: (306) 786-2651

Hydraulic Cylinder Design & Manufacturing  Precision Custom Machining


ing facility by over 40 per cent in size to accommodate new large capacity CNC machines, increased crane capacity, and greater production capabilities. The addition has given RAM the ability to handle additional product lines, increased volume, more sophisticated machining, and larger-sized cylinders. An active capital equipment acquisition program, particularly in CNC machining capabilities, also offers customers a reliable source of custom-machined components with the same quality and delivery performance as its custom cylinder production. For more than a decade, RAM Industries Inc. has maintained ISO 9001 certification for cylinder manufacturing and custom machining services. This dedication to quality continues today with the company’s commitment to test every cylinder to one-and-half-times operating pressure. RAM is also experienced with accommodating quality requirements to API (American Petroleum Insti-

needed for installation. RAM’s company-wide ERP system using a bar-coding system that tracks, material, and production progress. The system provides RAM with a reliable means to ensure on-time deliveries are met while maintaining cost and ISO 9001 quality standards expected by customers. RAM continues to add to its capabilities and expertise in meeting the cylinder needs of its customer base. Recently, RAM expanded its manufactur-

tute) standards or other customer-specific requirements. Every RAM customer receives after-sales support, installation guidance, parts, and warranty services as part of its ongoing commitment to every relationship. RAM was recently named the Yorkton Chamber of Commerce Business of the Year. Additionally, the company has been recognized as a finalist in the prestigious Saskatchewan Chamber of Commerce ABEX Awards for its achievements in growth and expansion. The RAM name has become synonymous with delivering quality custom cylinder solutions to the oil and gas sector. For more information contact: RAM Industries Inc. 135 York Road East Yorkton, Sask. S3N 3Z4 Toll Free: 877-799-1005 Fax: 306-786-2651 Email: estimating@ramindustries.com www.ramindustries.com v

Spend Less Travel More At Pyramid Corporation, our pride and professionalism is shown in our dedication to quality and development. Pyramid is an expanding corporation with offices in Canada and the U.S. and is strategically placed to meet the electrical and instrumentation service needs of the oil, gas, pulp paper,

TOLL FREE: 1-800-955-2988 www.pyramidcorporation.com

mining, petro chemical, wood products and manufacturing industries. Pyramid Area offices are in a position to service the industrial E/I workload in Saskatchewan. Please see applicable Pyramid locations below: ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

Join us on Facebook! 88 Saskatchewan Oil Report 2014

Estevan, SK Carnduff, SK Swift Current, SK Saskatoon, SK Lloydminster, AB Provost, AB Medicine Hat, AB Coronation, AB Bonnyville, AB

PH. 306.634.6022 PH. 306.482.3233 PH. 306.773.5935 PH. 306.668.5284 PH. 780.875.6644 PH. 780.753.4700 PH. 403.527.2585 PH. 403.578.2584 PH. 780.826.4227

• Flat screen TV, mini-fridge, microwave, coffee maker, hair dryer, iron & board • Free Daybreak Café breakfast, daily newspaper & local calls • Free high-speed Internet and Lobby The Bestterminal Value Under The Sun SM computer Flat screen TV, mini-fridge, microwave, coffee maker • •Fitness room & hair dryer in all guest rooms

• •Jacuzzi suite,Café wheelchair Free Daybreak breakfast &accessible daily newspaper & one bedroom suiteinavailable •suite Free high-speed Internet access all guest rooms Lobby computer terminal • •On-site Lounge, Beer & Wine Store • Free local calls

• •Banquet & meeting facilities Fitness room JacuzziTruck suite &parking wheelchair accessible suite available • •Large with plug-ins • On-site lounge, beer & wine store • Banquet & meeting facilities

www.daysinn.ca LOCAL: 773-4643 TOLL FREE: 1 800 DAYS-INN (1 800 329-7466)

905 North Service Rd East Swift Current, SK S9H 3V1 Fax: 773.0309


Sterling Truck & Trailer Sales celebrates 40 years of success Sterling Truck & Trailer Sales and Hornoi Leasing are run by the Hornoi family and have been since founder and president Sterling Hornoi opened his first business, Sterling Truck and Trailer Sales, in 1972. Hornoi was raised on a farm south of Roleau. In 1958, he and his father started their own trucking company, Hornoi Transport. In 1972, his father returned to the farm and Hornoi started Sterling Truck & Trailer Sales in Regina. He also took over the Hayes Truck dealership there, and then in 1973 formed Hornoi Leasing, renting out trucks and trailers. With a drive to succeed, Hornoi turned his focus to the sale of used trucks and trailers and eventually opened a new, larger office in Regina and one in Saskatoon in 1977. In the fall of 1992, Sterling Truck & Trailer Sales became the authorized Volvo and GMC truck dealership in Regina, under the name Regina Volvo Trucks. Two years later, in 1994, a Saskatoon dealership was opened – Saskatoon Volvo Trucks. The expansion of Sterling Hornoi’s business, which now included Sterling Truck & Trailer Sales, the Volvo and GMC dealerships, as well as several trailer lines led to the opening of a new 33,000 squarefoot facility at 762 McDonald Street in Regina in the fall of 1997. In 2000, a new 40,000-square-foot facility was opened in Saskatoon at 2326 Northridge Drive, allowing Sterling Truck & Trailer to expand its services and product lineup. Today, the impressive array of equipment for sale at Sterling includes Volvo VNL series highway tractors, Volvo VHD vocational trucks, Isuzu class 3-5 trucks, Eby livestock trailers and decks, Felling flatdeck and lowbed trailers, along with

Vanguard dry and refrigerated van trailers. As well, Sterling Truck & Trailer carries a large inventory of used trucks and trailers, available at both locations. With an inventory of over $2 million in parts, the family-owned Sterling Truck & Trailer has what customers need to keep their equipment running. With a staff of over 90 employees, Sterling Truck & Trailer Sales gives every customer the personal care they deserve and their vehicles require, whether it’s one truck owned by an independent owneroperator or a large fleet of vehicles. “We believe in being personable when it comes to business – we’ve got longtime employees and our customers know where to come to get treated properly,” says Hornoi. Sterling Truck & Trailer Sales prides itself in creating partnerships with its customers, from the initial sale to trade up. The sales staff are knowledgeable about the vehicles they sell and understand what types of vehicles suit their customers’ needs. Sterling’s technicians will ensure the long life and productivity of the customer’s purchase through maintenance, repair work, and parts replacement. And, if there’s ever an emergency with a vehicle, Sterling is there to make sure customers are up and running again in the shortest possible time. Sterling Truck & Trailer Sales have all the latest products to satisfy any customer. Businesses that rely on trucks to get their merchandise to their customers and owner-operators who use their own vehicles to carry loads across the nation have a great range of vehicles to choose from at Sterling. The company also has all types

Sterling and Pat Hornoi, founders and owners of Sterling Truck and Trailer cutting cake.

With a staff of over 90 employees, Sterling Truck & Trailer Sales gives every customer the personal care they deserve and their vehicles require.

of vehicles perfect for the large farming community in Saskatchewan and the expanding oil and mineral industries. With a great selection of new and used vehicles in two locations in Saskatchewan, Sterling Truck & Trailer Sales can satisfy the needs of any customer. “We are dedicated to customer service, innovation, and integrity. Your success is our success.” v Saskatchewan Oil Report 2014 89


‘SECUREing’ Saskatchewan XL Fluid Systems (“XL Fluids”) has been servicing wells in southeast Saskatchewan since 2004 and has grown from a small, technically focused drilling fluids provider to a company that by 2011, had serviced 1,326 wells in the region. XL Fluids’ Saskatchewan presence grew as a result of one of its partners, Devon Hanson. Having grown up on a farm just north of Alameda, Saskatchewan, Hanson worked service and drilling rigs throughout Saskatchewan’s southeast and saw the emergence of oil and gas development right in his backyard. With Hanson developing drilling-fluid programs and checking mud at the rig, the company quickly grew its Saskatchewan presence by hiring local employees who not unlike himself, had grown up in the area, worked the rigs, and understood the challenges the market faced. XL Fluids continued to expand its market share in Saskatchewan, while building a strong presence in Alberta and British Columbia by providing unique industry solutions to oil and gas producers; these include using dry drilling fluid products instead of liquids to reduce mud bills; developing Uniq-RM, a clay-free invert system and XL Longreach; a product for horizontal well applications; floc water drilling in the Bakken and Viking; high dispersion polymers based on well flow-ability; and utilizing groundbreaking lubricants for both water and oil-based mud. In 2011, XL Fluids and Marquis Alliance Energy Group (“Marquis Alliance”)—a drilling fluids, solids control and equipment rental and environmental service company—began discussions about a possible merger. At the time, XL Fluids was a leading drilling fluid company in Saskatchewan, and Marquis Alliance led in drilling fluid market share in British Columbia and Alberta. Combined, they would become the largest drilling fluid provider in Canada. Now enter SECURE Energy Services (“SECURE”). SECURE approached Marquis Alliance in hopes of expanding its existing service line to include a drilling services division, the foundation of Marquis Alliance’s operations. With drilling services complementing SECURE’s Processing, Recovery and Disposal division (“PRD”), the organization could capitalize on drilling waste recycling and disposal to expand a more comprehensive service offering to their existing customers. SECURE’s humble beginnings began in 2007, with the start-up of their PRD division catering to the needs of oil and gas producers for crude oil treating and terminalling, solids disposal at engineered Class 1 and Class 2 oilfield landfills, deep-well injection of produced and waste water, and hydrocarbon recovery in Alberta and British Columbia. XL Fluids, Marquis Alliance and SECURE are companies founded by hardworking, passionate people keen on providing a better, more efficient way of doing business for its customers. With shared values and the potential for an integrated process for recycling oil-based mud, SECURE Energy Services acquired both 90 Saskatchewan Oil Report 2014

On-site pipeline services.

Marquis Alliance Energy Group (June 2011) and XL Fluid Systems (July 2011) to form its Drilling Services division (“DS”). The DS division is comprised of drilling and completion fluids, solids control equipment and equipment rentals. Development in Saskatchewan continues, with the opening of a wholly owned drilling fluid warehouse and office in Arcola in early 2012. The XL Fluids team converted an old, unused auction mart into a drilling fluids warehouse and office and hired local residents to join the team. SECURE Energy continues to grow its presence in the Saskatchewan market with two fullservice terminal facilities, one of which is located in Silverdale, near Lloydminster, and services the heavy oil market. Silverdale was SECURE’s first facility to use railways to transport crude oil to market. Most recently, SECURE opened its Kindersley facility. These two locations offer increased recycling and disposal options for producers operating in the Viking and Shaunavon areas. Just across the provincial border lies Virden, Manitoba, where SECURE’s On Site division operates an industrial waste treatment and disposal facility. The Virden Class 1 Landfill is strategically located in southwest Manitoba, close to producing and active development drilling areas in Manitoba and southeast Saskatchewan. In 2012, the organization began development just south of the border in North Dakota. The demand for PRD and drilling services in the Bakken has resulted in dramatic growth for the company. Marquis Alliance is a supplier of drilling fluid products and solids control equipment in the Rocky Mountain region of the United States with a significant presence in Williston, North


Dakota. Over the past two years, SECURE has acquired and built five standalone water disposal facilities in North Dakota to service the Bakken drilling activity. Standalone water disposal facilities dispose of produced and waste water generated from oil and gas drilling and completion activities by pumping the liquid streams down a disposal well. Two of these facilities are in the process of being converted into full-service terminals to better cater to the needs of the Bakken market. At the end of 2013, SECURE opened a special waste landfill just outside of Williston for the safe disposal of solid oilfield by-products such as drillcuttings, drilling mud, and contaminated soil from remediation and reclamation activity. Growth is something that XL Fluids, Marquis Alliance Energy Group and SECURE Energy Services are all familiar with and will continue to be part of the organization’s strategy long into the future. What started as a drilling fluid company with deep Saskatchewan roots has grown into something far greater. Although the company is larger, there are more people and the service offering is far more extensive, one thing that hasn’t changed is the hardworking, passionate people who are always looking for a better way to help.

Solid control.

Fast-forward to present day, SECURE Energy Services now has over 26 processing, recovery and disposal facilities across the Western Canadian Sedimentary Basin and the Rocky Mountain states of the U.S.A.; 1,000 employees; and three divisions: Processing, Recovery and Disposal, Drilling Services, and On-Site. Customer service has laid the foundation for all that SECURE and its three divisions do. It’s about helping the customer and finding better ways of doing things while maintaining integrity and commitment to health, safety and the environment. v

INNOVATIVE SERVICES INTEGRATED APPROACH Processing, Recovery & Disposal

Drilling Services

OnSite Services

www.Secure-Energy.com Saskatchewan Oil Report 2014

91


Growing with today’s market By Laurie LeBlanc, Sales manager, Rosenau Transport Ltd.

Rosenau 24-foot cube van with power tailgate lift.

Acropolis heated warehouse facility.

Rosenau Transport Ltd. was established in 1957 by Gus and Colleen Rosenau with one pickup truck. Over the last 56 years, the Rosenau fleet has grown to include more than 350 power units and 1,200 trailers, including heated and dry vans, flat-decks and bulk-units servicing the needs of customers throughout Western Canada. As one of the largest privately held transport companies, we continue to grow and service customers from Fort Nelson, B.C., to Brandon, Manitoba, with 600 employees at over 26 terminal and agency locations. Rosenau Transport and Acropolis Warehousing Inc., a sister company, work hard to service both the agricultural and oil and gas industries at all our locations. We are able to extend our western Canadian service to the rest of North America through one of our partner carriers.

CLASSIC CLASSIC VACUUM LTD. VACUUM TRUCK TRUCK LTD.

24 Hour 24 Service Oil Cleanup Cleanup 24Hour Hour Service Service •• Oil Vacuum Trucks • Hydrovac Drilling RigWork Work Drilling Rig Rig & Service Service Rig Water Trucks • Steamers VacTruck Trucks Water Trucks Vac Trucks Water Trucks •• Steamers Steamers Fire • Air••Trailer • Safety Consultant FireTruck Truck••Air Air Trailers Trailers • Safety Fire SafetyConsultants Consultants

COR Certified Certified COR Alida, Saskatchewan • S0C 0B0 Alida, Saskatchewan • S0C 0B0 Dispatch: (306) 483-8697

Dispatch: (306) 483-8697

Drilling Production & Geology 6844 Highway 40, Tioga, ND 58852

Kathleen Neset | Geologist nscoffice@nesetconsulting.com www.nesetconsulting.com

Office (701) 664-1492 • Fax (701) 664-1491 92 Saskatchewan Oil Report 2014


Keeping Saskatchewan’s Diverse Industries On The Move

SERVING WESTERN CANADA

DAILY DEPARTURES FROM

• LTL • Full Load • Bulk • Hot Shots/Express • Scheduled Delivery • Overnight Service • Consolidation • Yard Storage • Heated Warehouse Storage

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We are growing in Saskatchewan, with the recent construction of a new terminal in Saskatoon and a 23,000-square-foot addition in Regina, set to open later in 2014. With this extra capacity, we will be better-positioned to handle and service the needs of our customers. In spring, summer and fall, Rosenau Transport is very active in the agriculture sector, providing freight and storage services for the farming communities of Saskatchewan, Manitoba and Alberta. Rosenau Transport is a vital part of the economies in all areas we service. We look to enhance and increase business opportunities for our customers. By providing the best service possible, both Rosenau and our customers grow, partnering in each other’s success. As a leader in the transportation industry, Rosenau Transport enriches the communities in which we live and work. When we

set up a new terminal, warehouse or agency partner, we invest in a long-term commitment to community infrastructure. As a family business, Rosenau Transport has entrenched community involvement and responsibility into our organization. We support national campaigns such as cystic fibrosis and breast cancer. Regional trailers are dedicated to assist with fundraising for projects such as Support Our Troops and the 18 Wheels of Christmas. We provide local support to Stars Air Ambulance, Tele-Miracle, Festival of Trees, Martinsville Fire Department Dine and Dance, as well as sponsorships for first-aid/CPR for army cadets and support for numerous sport teams. Rosenau Transport Ltd. is part of growing markets and investment in our communities. This enables us to provide the best service possible to increase and enhance the success of all our customers. v

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IFR Workwear Inc. awarded Red Deer’s 2013 Business of the Year award

IFR Workwear Inc. was founded in 2005 by Reg Radford and Erin Buckland in Red Deer, Alberta. The goal of IFR Workwear Inc. is to provide a high-quality product, offering customers comprehensive options of safety and comfort with our full line of IFR Protective Workwear. We manufacture fire-resistant workwear, including coveralls, parkas, insulated bib overalls, fleece-wear and hardhat liners. We service the oil and gas, electrical, construction and mining industries and many more. In order to provide consistent quality, we are using proven and tested fabrics

like DuPont™, Nomex® and Westex™ Ultrasoft, Indura® and other components made in North America. We use 3M Scotchlite™ Reflective Striping on all our garments to meet the reflective visibility requirements of industry. We carry a large inventory of five different fabrics and eight different colours in Red Deer for quick delivery of products to your door. All our garment materials meet safety standards and comply with industry standards controlled by the CGSB (Canadian General Standards Board), the CSA (Canadian Standards Association), the NFPA (National Fire Protection As-

• Fluid Levels • Dynamometers • Pressure Surveys • Foam Depressions • New or Reconditioned Equipment Sales & Rentals Well Optimization Sales & Services

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96 Saskatchewan Oil Report 2014

sociation), the ASTM (American Society for Testing and Materials International), and the OSHA (Occupational Safety and Health Administration). Our IFR Workwear encourages employee safety, productivity and satisfaction. We are proud to announce receiving the Red Deer Chamber of Commerce’s prestigious 2013 Business of the Year award! IFR Workwear Inc. currently employs approximately 25 people at the distribution level and many contract sewers. We have excellent employee retention as our company grows, and we welcome new people to our IFR family, strengthening our professional team and improving our ability to serve our customers with consistent quality. In December of 2013, IFR Workwear Inc. moved into a stately new 31,000-squarefoot distribution centre in the new Queen’s Business Park on the northwest side of Red Deer. We have added more equipment to our embroidery and sewing department to enable us to keep our goods shipping out quickly and efficiently. We can embroider company logos, install name tags, and do any repairs or adjustments in our Red Deer facility.


“We are IFR Workwear Inc., the trusted leader in quality flame-resistant workwear.� As we continue forward in 2014, we are excited to announce the upcoming launch of our new e-commerce site, which will provide a more streamlined, simplified online shopping experience for our distributors. We are developing and working on new IFR Workwear all the time and we encourage people to check our website www.ifrworkwear.ca often for new products and updates. We are also very open to any suggestions our distributors and their customers may have that can help develop new products or improve upon ones we already offer. We are easy to connect with through our website contact or phone line, where you will be pleased to discover a real person answering your call. We pride ourselves on superior customer service and premium product. Safety should settle for nothing less. v

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Leader Inn 100 years of serving hotel guests and the community By Gloria Taylor Saskatchewan’s Leader Inn celebrated 100 years in business in 2013—the same year that the town of Leader celebrated its centenary—and for 39 of those years, the Tweten family has owned and adapted the hotel to the modern attractive home-away-from-home that it is today. “The Leader Inn was purchased by my parents Mel and Phyllis Tweten in 1975,” says Bonnie Tweten, who today owns the pet-friendly hotel complete with dining room, bakery, bar, spotless stainlesssteel professional kitchen and 22 guest rooms—all equipped with the technological amenities any traveler can hope for. Over the years, uncommon dedication and extraordinary hard work have

helped the family to mark many firsts in their quest to give their guests and the community of Leader the best possible services. The Leader Inn provided the first Sunday opening of a dining room; the first buffet service in the community; and the first off-premises catering service when the family added the bakery in the early 1980s. Through it all, Bonnie has had a birdseye view of the many changes and improvements. She grew up in the hotel and worked alongside her parents from the time she was a child, doing a variety of jobs until she started to manage the hotel full time in 1996. In 2002, she purchased it outright.

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98 Saskatchewan Oil Report 2014

“All my siblings, myself and generations of grandchildren have worked in this hotel doing every job from being the chambermaid, the waitress, the cook or anything that needed to be done,” says Bonnie. Mom Phyllis ran the hotel for the first several months after the family purchased it, while dad Mel worked full-time in the meat-packing industry. A strong and capable woman, Phyllis formally became a journeyman cook when she was “grandfathered” by Kelsey College in Saskatoon. The Leader Inn kitchen became a teaching kitchen as a result, and Phyllis welcomed many apprentice students over the years who needed to gain their practical experience. She contributed her skills inexhaustibly until she died in 2004. Eventually, father Mel came to work in the hotel full-time, and he has been a backbone of the business for years. He is still working in the hotel at the age of 88 and oversees ongoing renovations. In 2004, the family renovated the dining room, and the guest rooms in 2006. “There were 34 rooms with a common tub, shower and toilet rooms,” says Bonnie. “My father had a lot of foresight, as he completely gutted the upstairs, making 13 single rooms: seven double and two two-room suites with bathrooms.” Rooms were painted, new tub surrounds put in, as well as new fridges, hair-dryers, microwave ovens, coffee pots and brand-new flat-screen TVs with built-in DVD players. “Business increased immediately,” she recalls. Mel also substantially increased the power that allowed the hotel to accommodate the refrigerated food trucks, which had to remain plugged in to maintain their cold temperatures—an important and timely upgrade. “Before then, the milkmen had to sleep in the top of their trucks to keep


Pipeline and oil industry personnel have been exemplary and loyal customers over the years and many have become good friends. them running. It was a redesign and an important increase in power, and it is something that we could just not afford now. Now, it would be hundreds of thousands of dollars,” Bonnie points out. In 2009, Mel gutted the still-existing common rooms and created two extremely high-end doubles. In 2010, he helped Bonnie to remove steam heat and put in individual electric heat and air-conditioning units throughout. “Before these renovations, our heat and utility bills in the winter were in excess of $28,000. Now it is half, or less, as winter is not over yet,” she adds. Bonnie credits her father with having an unusually good eye for design that has proved very useful during renovations. “The rooms are absolutely beautiful. He’s got a wonderful eye for fabric and colour. A man once told me that he woke up and thought he was in a multimillion-dollar high-end hotel because our room was so nice.” The result? “We have so much recurring business that little advertising is necessary,” she says. Pipeline and oil industry personnel have been exemplary and loyal customers over the years and many have become good friends. When she turned 36, Bonnie received the 25-Year Full-Time Service Award from the Saskatchewan Hotel Association in recognition of her many contributions. Like her family, Bonnie has loved the business and the many repeat customers she has come to know. But after a lifetime, at the age of 49, she is ready to retire when the right offer comes along to purchase the hotel. Meantime, she and her father are always open to meeting new friends and customers at the Leader Inn. v Saskatchewan Oil Report 2014 99


Flexpipe Systems’ commitment to being local in Saskatchewan Flexpipe Systems, a leader in providing reliable and innovative composite pipeline solutions to the global energy sector, has proudly had a presence in Saskatchewan for seven years. Initially, Flexpipe Systems partnered with local service companies to distribute and install its pipeline products; it has since expanded into its own facility—Flexpipe Solution Centre in Estevan now provides distribution, local field installation and operational support. This growth is thanks to the expansion of the oilfield activity in the region. A local team, a solution centre for easy deployment of pipe and fittings, and Canadian-made products represent Flexpipe Systems’ commitment to the province and the oil and gas industry that drives Western Canada. The local team is comprised of Luke Guest, sales and service representative who is a board member for the Weyburn Oilfield Technical Society and a high school volleyball coach; Jason Mapletoft, sales and service representative and a local rodeo veteran; and Chris Lafont, materials and rentals coordinator and an avid muscle car enthusiast. Guest is based in southeast Saskatchewan, Mapletoft is located in the Kindersley/Swift Current area, and Lafont coordinates activity at Flexpipe’s new Estevan centre. “The value of having local connections has allowed us to quickly become part of the community. Without our strong team, we could not have realized the level of success we have,” says Steven Gouthro, sales manager, Canada. Flexpipe Systems manufactures their composite linepipe in Calgary, Alberta. It is the only product on the market made in Canada and thus supports the local econ100 Saskatchewan Oil Report 2014


omy while driving job creation. “Supporting the communities [in which] our employees live is an integral value at Flexpipe. We are proud of our contributions and support of the areas [in which] our employees and clients live and work. Corporate-social responsibility is important to us as a company and as members of the energy sector as a whole,” says Gouthro. Flexpipe Systems manufactures four product lines: FlexPipe Linepipe, FlexPipe Linepipe High Temperature, FlexCord Linepipe and FlexCord Anti-buoyant Linepipe. All products are based on a threelayer principle that includes a thermoplastic liner, a helically wound reinforcement layer and an external thermoplastic jacket. The products excel in applications where a corrosion-resistant, high-pressure pipeline is required, and have proven results. Over 20,000 kilometres of linepipe and 90,000 fittings have been installed worldwide. Customers choose Flexpipe over other product lines because of its low environmental impact, total job cost-savings (approximately 30 per cent over traditional pipeline installations) and customizable solutions. Recently, FlexPipe Linepipe (FPLP) was installed in southwestern Saskatchewan on a large gathering system for a prominent oil and gas company. The project tied 31 oil wells to seven central testing facilities; all seven testing facilities were then tied into a group line that tied to an oil battery. The total length of ditching for the project was 14,931 metres. As many as 17 lines were run in one ditch with a right-of-way (ROW) of only 20 metres. There were 74 crossings, 13 bored, 20 road crossings, 122 risers and 56 couplers to complete the project. “We have been using Flexpipe Systems’ products for a number of years now and its almost second nature for us. We have used their products all over Alberta and Saskatchewan in various ground and weather conditions, and in both gas and oil applications. Using FPLP has reduced our installation costs as there is less labour and equipment needed to install the product (i.e., welders, NDE and side-booms). Our land costs are also lower. In areas where we ran 16 lines in one ditch, our ROW is only 20 metres. If this was a steel project,

we would have had to acquire at least double the ROW. Flexpipe Systems has built a strong relationship with us and we look forward to working with them in 2014 and beyond.” ~ Satisfied construction coordinator in southwest Saskatchewan Many of the 296 rural municipalities in Saskatchewan are in the process of banning jointed pipe products, so there is going to be even greater demand for spoolable composite products. Compos-

ites offer fewer leak points, less joints and increased reliability. Another driving force behind demand for these types of products is the Prairie Farmer Rehabilitation Act (PFRA); the goal is to assist farmers in the region, while enforcing minimal environmental impact. The changes to directional drilling make composites the logical choice for Saskatchewan. Flexpipe Systems is modernizing pipelines. v

Saskatchewan Oil Report 2014 101


Swift Current: A city for 100 years Honouring the past and remembering those who made our present possible demonstrates the respect and admiration we hold for each and every resident who has ever called our city home—all those who have had a hand in weaving the tapestry we enjoy today. Swift Current was born a “railway town”, but it quickly grew from there: it has deep roots in farming, agriculture and livestock, in oil and gas, in culture and performing arts, in sports and recreation, and most of all, in people who believe in their community and in their community’s future. While times have changed, it’s imperative that we remember why we are here. It is not difficult to imagine that our forefathers, a century ago, had the same vision for our community that we hold today. Their vision was one of growth—of building a community that people were proud to call home… where business was welcome and where facilities and services were available to meet the needs of the entire community.

CONTRACTOR • SAND • GRAVEL • ROCK • EXCAVATION BACKHOE • TRACKHOE • LOADER SERVICES P.O. Box 609 Stoughton, Saskatchewan S0G 4T0 Del Coderre Bus: 306-457-3131 Fax: 306-457-3244

Cell: 306-577-7219 Res: 306-457-3173 Email: coderre@sasktel.net

www.coderre.sasktelwebsite.net 102 Saskatchewan Oil Report 2014

Black Gold The entire community of Swift Current, and the southwest as a whole, celebrated the discovery of oil in our region in 1952. In the decade that followed, Swift Current’s average net income soared to the highest in Canada, and in three short decades following that first discovery, the oil industry has provided Swift Current and area with unprecedented economic growth. Many drilling and oilfield service companies have established here since then, providing several thousand direct and indirect jobs; injecting millions into the rural and municipal coffers; hundreds of thousands of dollars to community causes; and centering attention on southwest Saskatchewan’s famous crude. The Fosterton strike in 1952, about 48 kilometres northwest of here on farmland near the Socony-Vacuum Exploration Company, created the first commercial oil find, with more following at Success, Cantuar, North Premier and Midway. As the years ticked by, drilling rigs were seen on farms throughout the district, even within the city limits. A major oil pipeline from Cantuar to Regina was even built. The industry’s growth through the years has been substantial and instrumental to the development of the city of Swift Current and southwest Saskatchewan. The Next 100 Years With significant oil activity in all directions around Swift Current, the importance of this industry will continue for years to come. The city of Swift Current is committed to working with new and existing businesses to take advantage of the tremendous opportunities that exist now and into the future.


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Ph: 306-773-1547 PROFESSIONAL INSURANCE SERVICES FOR OVER 100 YEARS. In addition to our robust energy sector, growth and development in manufacturing, agriculture, retail, service and tourism continues to rise. Over the next two years, the city of Swift Current anticipates in excess of $200 million worth of construction will take place. This will encompass new homes, schools, longterm care facilities, industrial and commercial businesses, all of which bring new friends and families to our city. Swift Current is very proud of its rich history within the oil and gas industry, yet we are equally privileged to share with it a very bright future of growth and prosperity. v

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www.swiftcurrent.ca Saskatchewan Oil Report 2014 103


Park Derochie: Trusted partners in oil and gas By Krystal Simpson and Michelle Ward

With 57 years’ experience offering services including coatings, fireproofing, mechanical and spray-foam insulation, scaffolding, and abrasive blasting, Park Derochie has earned its reputation as one of Canada’s most trusted partners in the oil and gas industry. As Saskatchewan’s economy and the oil industry continue to grow, large commercial and industrial clients can rely on Park Derochie’s unique ability to provide services individually, or as a combined package of coordinated services with a single project manager, resulting in superior coordination that translates to time and cost-savings for projects. Expertise gained by having worked with and applied product from several of the large coatings manufacturers allows accurate recommendations regarding products to be utilized for numerous varied and specialty applications. Park Derochie Coatings (Saskatchewan) Inc. heads up the company’s polyurethane spray foam insulation services. Mobile units offer this service to clients throughout Saskatchewan and across Canada. Certified by BASF The Chemical Company (one of the largest manufacturers of spray foam and spray-foam chemicals in the world), Park Derochie is capable of spraying according to client formula specifications. Where required, they are willing and able to make necessary accommodations to ensure exceptional service and quality, including additional consideration for rough, rocky or steep terrain. Most commonly considered for building insulation, spray-applied polyurethane foam (SPF) services can be beneficial to the oil and gas industry in multiple 104 Saskatchewan Oil Report 2014

Pipe rehabilitation.

capacities including roofing, insulation of tanks and buildings and pipeline applications. When polyurethane spray foam is used for roofing the seamless and monolithic placement keeps water out and its excellent wind uplift resistance withstands even hurricane force winds. It can provide up to 30 per cent savings in both heating and cooling costs, allowing full cost recovery to occur in as little as five years, the benefits of which have been seen in commercial applications and in many Saskatchewan potash mines. Polyurethane foam can also be used to cool off tanks by insulating them with spray-applied polyurethane foam and coatings. It uses the same principle as a thermos jug, the spray-applied insulating foam system helps maintain the desired

internal temperature, as well as protect from rust, age and harsh weather. Proven spray-applied products and applications perform equally well in hot and cold temperatures with high R values. In addition to temperature control, the foam and coatings help dampen sound on interior and exterior surfaces and reduce thermal shock between changing summer and winter conditions. Additionally, spray foam is a cost-efficient, environmentally friendly alternative to traditional pipeline pillows, breakers and shields. Spray-foam pillows are used to prevent and protect the pipe from laying on rock or rough surfaces can be pre-formed on site or sprayed directly in place using our mobile spray-foam units. To prevent flooding and control erosion, water barriers or breakers can be


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Thickener tank, drive shaft for 180-metre rake arm. Spray-foamed tank.

Photos courtesy of Park Derochie Coatings (Saskatchewan) Inc.

QUALITY Park Derochie Coatings (Saskatchewan) Inc. staff includes NACE-certified coatings inspectors and NACE corrosion technicians—aiming to provide NACE certified supervisors on every job and ensuring quality workmanship. As a result of continuing efforts in education, training and safety, Park Derochie has achieved SSPC QP level one, two, three and six certifications. This makes PD the only Canadian company to hold all of these certification levels. Adhering to the stringent standards set out by the Society of Protective Coatings (SSPC), the BASF Raising Performance to New Heights® program, and guided by ISO 9001-2000, Park Derochie’s quality management system is designed to meet the specific requirements of each client. SAFETY Park Derochie Coatings Saskatchewan is proud to be an industry leader in safety; our WCB experience ratio, which is consistently lower than the industry average, speaks to our dedication to protect people and the environment. For client convenience, Park Derochie is a member of prequalification management companies such as ISNetworld, PICS, ComplyWorks and the CQ Network (formerly CanQual).

installed that do not require the use of forms. Polyurethane foam adheres to almost any surface, including itself, allowing breakers to be sprayed vertically, thus eliminating the pyramid effect necessary when using sandbags. Spray-foam application is less labour-intensive, as spraying can be done from the top of the ditch, making installation more economical and timely than traditional methods. When spray foam is applied, it reacts and becomes totally inert, making it safe for the environment. “We have 15,000 square feet of shop space at our Saskatoon facility capable of handling materials 42-feet wide, 23-feet high and 100-feet long. The tempera106 Saskatchewan Oil Report 2014

ture-controlled environment provides the perfect setting for facilitating both spraying and curing times year-round,” says Dave Odnokon, vice-president of Park Derochie Coatings (Saskatchewan) Inc. “All that space, plus a crane capacity of 120 tons and our 10-acre yard make Park Derochie an ideal contractor for a wide range of projects.” “Our shop is often just the first stop for many projects that move to module yards and then on to site. Park Derochie is often contracted to follow those materials each step of the way; it just makes economic sense for the client,” Odnokon adds.

EMPLOYMENT Park Derochie is proud to be an equalopportunity employer and encourages the hiring and training of any qualified individuals, regardless of gender or ethnicity. Preference is given to candidates who most closely meet the knowledge, skills, and competencies required. We are proud that our diverse workforce is comprised of several long-term superintendents, general foremen and foremen of aboriginal descent, including women. As a company, we promote, encourage and financially support continuous learning for all employees, at all levels, and provide mentors for trainees in numerous trades. Park Derochie is known for providing the right people, expertise, quality, safety and value, demonstrating time and again a well-earned reputation for being “Proven Partners since 1956”. v


Celebrating Weyburn and the growth of an economy

During 2013, Weyburn celebrated its centennial as a city transformed by unprecedented growth with new buildings and expansions in the business sector, whole new residential neighbourhoods in areas that were filled only with prairie grass seven years ago, expanded in-

frastructure to support both areas of development, and many new faces from within and outside of Canada. “The last 10 years has been one of the biggest growth periods in the history of Weyburn. Businesses choose Weyburn because they want to pick a community

Experience, leadership, performance.

CanElson Drilling Inc. Suite 700, 808 - 4th Avenue SW, Calgary, AB, Canada T2P 3E8 Phone 403.266.3922 Fax 403.266.3968 www.CanElsonDrilling.com TSX: CDI Operations offices: Nisku Alberta

108 Saskatchewan Oil Report 2014

Carlyle Saskatchewan

Midland Texas

Mohall North Dakota

that’s good for their families. We have a beautiful city and we have everything you need here without the problems of the big city,” says Jeff Richards, manager of the Weyburn Chamber of Commerce. “The opportunity for jobs and businesses is here, as well. In 2003, there were 30 to 40 job listings, now there are three to four hundred.” In 2013, with a 6.5 per cent increase in business licences issued from 2012, commercial and industrial building permits valued over $14 million, the Weyburn Chamber of Commerce estimates over $200 million in capital projects is planned for Weyburn over the next 15 years. While growth might be fueled by oil, agriculture and manufacturing, Weyburn is also a centre for regional health and school offices. Jobs in all sectors are bringing in the kind of wages that attract workers. In 2006, the city reported a population of 9,435 and by 2011, the city grew by 1,000 people. Growth and the prosperity it brings have contributed to projects like a new performing arts centre and fundraising efforts around a new hospital. A population with money


and an average age of 40 attracts more services, retail and restaurant business. According to a report from the Canadian Homebuilders Association, the population of the city alone could reach 22,000 by 2025. It may seem a stretch, but considering the diversity of the local economy and the fact it creates stable jobs in an unstable national and world economy, maybe it isn’t so far a reach after all. The City of Weyburn has developed strategies to accommodate growth while maintaining this vision. A housing advisory committee now reports to council and has proven invaluable to the five developers now working on projects in the city. Incremental spending on infrastructure has kept costs down and a planning district has been formed. In 2010, the City of Weyburn and the RM of Weyburn began working together under the Weyburn Planning District Commission with the intent of effectively managing the infrastructure and service demands of growth. The Weyburn Planning District is a model of excellence for inter-municipal cooperation and planning, ensuring that there is clear dedication from all stakeholders to removing any barriers to growth and development in the region. Area investors are confident in the stable and sustainable business policies of local governments. As leaders in fiscal responsibility, they are in position to effectively manage the infrastructure and service demands of growth without interruption to the pace of development. Weyburn’s commitment to ensuring availability of adequate housing options is giving area employers a competitive edge in attracting employees. Working collaboratively with stakeholders is the foundation for the city’s commitment to cultivating a sustainable environment for development opportunities. “The community might change but our core values are still intact,” says Weyburn Mayor Debra Button. “We have a good quality of life here and Weyburn is clean and safe.” A close-knit neighbourhood community with low crime rates and economic strength makes Weyburn a place great

for a family to live. Weyburn is wellknown as one of the cleanest, most attractive communities in the province. Its enviable character is intrinsically linked to its natural surroundings. A safe, healthy balanced lifestyle defines the culture and vitality of Weyburn. The exuberance of a young, engaged population offers a wealth of social networking opportunities that create a welcoming atmosphere for new residents. The safe city environment supports the priority that residents place on an active, healthy lifestyle, creating an open, walkable atmosphere.

Weyburn is proud of the richness of community life that is reflected in the growing and diverse population. For over 100 years, the spirit of investment in community has led Weyburn to be one of the most sought-after locales in which to live, raise a family and build a business. With record job numbers, record population and high business growth, Weyburn looks forward to the next 100 years of abundant opportunity. It’s a whole new century for the city of Weyburn. v

Saskatchewan Oil Report 2014 109


Lots of new technology at the Redvers and District Oil Showcase The fifth annual Redvers and District Oil Showcase is coming up fast—May 8th and 9th, 2014—so don’t miss out as there are limited spaces available to get in as an exhibitor! This year’s keynote speaker at the dinner on Thursday night is Tim McMillan, MLA in charge of energy and resources. We are also in the process of lining up a couple of daytime speakers, so make sure you join us for those events, as well! The previous shows were held in 2007, and the second-annual in 2008. We then

DYLAN GILLISS

General Manager, Sales, Tong Operator Cell | 306-421-8158

CARLA FRIESS

Office Manager Email | carla@gilliscasingservices.com

RYAN WALLINGTON (WALLY) Sales, Safety, Tong Operator Cell | 306-421-7011 Email | ryan@gilliscasingservices.com

LOGAN GILLISS

Sales, Tong Operator Cell | 306-421-8481 Email | logan@gilliscasingservices.com Gilliss Casing Services Inc. Main Shop Box 1055, Estevan, SK S4A 2H7

24 hr. line 306-634-6768 | Fax: 306-634-6738 110 Saskatchewan Oil Report 2014

moved to biennial conference format in 2012 and now it is 2014—time flies when you’re having fun! Based on some of the feedback that was received from various exhibitors from the last show, we are planning to keep the schedule of events similar to 2012. Set-up for exhibitors will be Wednesday all day and Thursday morning, with the show opening to the public from noon to 4 p.m. on Thursday. Dinner will be served at 6 p.m., with cocktails just prior to dinner and the keynote speaker around 7 p.m. Friday, the

show will be open to the public from 10 a.m. to 4 p.m. With Redvers being situated right in the middle of the Bakken play in southeast Saskatchewan and southwest Manitoba (as well as adjacent to the same play in North Dakota), this makes it the perfect location to showcase existing and upcoming technologies for the oilfield and related industries. The Redvers and District Oil Showcase will have items and exhibits of interest to everyone from company officers and engineers to consultants, drillers, landspeople and many others who work in the oil industry. Our previous oil shows revealed Redvers as a town progressing and moving forward, and we want to show that we are continuing that trend. With a new hotel in progress, as well as an expansion planned at the campground, we anticipate that there will be ample space for all to stay in town at the next oil show. The 2012 oil show was a tremendous success with Patrick Ward, president and CEO of Painted Pony, being the keynote speaker to a sold-out crowd at the roast beef banquet on Thursday evening. Onehundred thirty-seven exhibitor spaces were filled, both inside and outside, at the Redvers arena—showcasing numerous oilfield companies and other industry technologies. Close to 1,500 people came through the door. With slightly less than desirable weather leading up to the show, the help of Dangstorp Services, Swayze’s Redi-Mix, and Easy Rider Trucking, among many others, was greatly appreciated in helping the show go on. Feedback from the last oil show was remarkable and we anticipate a full show yet again, with loads of exhibitors and


TOWN OF REDVERS Redvers & District Oil Showcase May 8th & 9th, 2014 Dinner Guest Speaker Thursday evening:

Tim McMillian, MLA

(Limited Space Available)

Sponsorship for this years show includes:

Gold - $1500

page ad in program, tradeshow booth, ( 1/48 tickets for dinner, poster advertising (

(

Silver - $750

Business card ad in program, tradeshow booth, 4 tickets for dinner, poster advertising

(

Bronze - $200

( Listing in program ( Deadline for full sponsorship: April 12, 2014 To be on poster, banner, radio & program

For more information go to www.redvers.ca and click on the link to the Redvers Oil Showcase

Email: redversoilshow@hotmail.com or call (306) 452-3225


hopefully a similar showing of people taking the opportunity to take a look around and make new industry contacts. The committee would like to thank all of the sponsors and volunteers who helped to make the 2012 event a success, and we look forward to seeing you in May 2014! To be a sponsor or to request a booth at the next show being held Thursday, May 8 and Friday, May 9, please contact the Redvers and District Oil Showcase Committee at 306-452-3225, or e-mail redversoilshow@hotmail.ca. You may also visit the town of Redvers website and click on the Redvers and District Oil Showcase link.   Redvers & District Oil Showcase May 8th & 9th, 2014 Supper Guest Speaker Tim McMillan, MLA Redvers & District Oil Showcase Committee would like to thank the 2012 Sponsors for helping make their fourth Oil Showcase and Dinner a Success!

Gold Sponsors: 24-7 Enterprises Ltd., Acutec Systems Ltd., Classic Vacuum Trucks Ltd., Crescent Point Energy Corp., Dangstorp’s Services Ltd., DEL Communications Inc., DSG Power Systems, Easy Rider Trucking, Enbridge, Enform, Ensign Energy Services Inc., Equal Transport, Essential Coil & Stimulation Services, FAST Trucking Service Ltd., Fiberglass Solutions, Frontier Peterbilt Sales Ltd., Gibson Energy Ltd., Land Solutions, Lightning Creek Hot Shot, MagnaFab Inc., Mazergroup Construction Equipment Division, Mid Canada Filtration Solutions, Millennium Directional Service Ltd., Northern Mat & Bridge Ltd., Painted Pony Petroleum Ltd., Rhino Green Fx, Safety Source, Saskatchewan Ministry of Economy, SaskPower, SB Navitas, Site Energy Services, Spearing Service, Spectra Credit Union, Swayze Concrete Ltd., Tervita, The Rig Store, Three Star Trucking Ltd., Total Oilfield Rentals, TS&M Supply, Tundra Oil & Gas, United Centrifuge Ltd., Winacott Western Star and Sterling Trucks

• Manufacturer of Irontech Service Rigs & Pump Trucks • Repair & Total Rebuilding Services for Rigs, Pump Trucks & Associated Equipment • Complete Oilfield Fabrication, Mechanical, Machining, Certification, Sandblasting & Painting Services

“We Build Your Rig” #11 53016 Hwy 60, Acheson, AB T7X 5A7 Telephone: (780) 960-4881 • Fax: (780) 960-8840

irontech@irontechrig.com • www.irontechrig.com 112 Saskatchewan Oil Report 2014

Silver Sponsors: Adoil Inc., AGAT Laboratories, Badger Daylighting, Border Insulators Inc., C & N Oilfield, Canada Capital Energy Corporation, Carson Energy Services, Clarence Campeau Development Fund, Cromer Valley Store Ltd., Dynamic Resources Ltd., Eagle Oilfield Services Ltd., Element, Elite Safety Services Inc., Emission Solutions Inc., Envirotrap Systems, Evolution Operating Ltd., Firefly Rentals, Flexpipe Systems, Flyin E Medical Ltd., Girard Bulk, GRIT Industries Inc., Hepburn Enterprises Inc., Highrock Energy Ltd., Impact Oilfield Management Team Inc., JK Containments, Nelson Motors, Plains Environmental, Poplar Services Ltd., Prairie Rat Hole Services, R&R Tank & Equipment Rentals Ltd., Rapid Heating Services Ltd., Red Hawk Well Servicing Inc., Saskatchewan Energy Training Institute, Tremcar West Inc., TSL Industries Ltd., Vortex Production Services, Western Star Inn & Suites, Winkler Structures Bronze sponsors: Absolute Locating, Allied Cathodic Services, Brady Land Services Ltd. Corner Pocket Publishing Ltd., Courage Oilfield Services, DEL Equipment, Estevan Plastic Products Ltd., Evergreen Environmental, Fort Garry Industries Ltd., Genco/QCI, KC Oilfield Services Ltd., L.D. Allan Enterprises Ltd., RBC Royal Bank, Commercial Banking, Redvers Generators, Stoney Mountain Rentals Ltd., The Real Slashers, Weyburn Review Sponsorship for this year’s show includes: • Gold – $1500 | 1/4 Page Ad in Program | Tradeshow Booth | Table of 8 for Dinner | Advance Advertising | Poster Advertising at the show • Silver – $750 | Business Card Ad in Program | Tradeshow Booth | 4 Tickets for Dinner | Poster Advertising at the show • Bronze – $200 | Listing in Program For more information go to www. redvers.ca and click on the link to the Redvers Oil Showcase, e-mail redversoilshow@hotmail.ca or call (306) 4523225. v


OIL FIELD DRILLING SPECIALISTS SUPPLIER OF Sandline Cable (MFG by Prodinsa) • Drill Line Cable (MFG by Prodinsa) • Domestic Cable - WRI BG • Loading Slings Tire Chains (in all types including studded) • Transport Chains, Fittings and Tie Down including Cargo Straps and Load Binders Lifting Chains & Fittings including Yoke & Crosby Products • Delivery Service available

Roughrider Rigging Ltd. | 585 Henderson Drive | Regina, SK S4N 5X1 Phone 306-721-4122 | Fax 306-721-2737 | Email cory@rrrigging.com 118 Faithfull Crescent | Saskatoon, SK S7K 8H8 Phone 1-306-651-1834 | Fax 1-306-651-1839

www.rrrigging.com


Kramer Ltd. built to work in Saskatchewan’s oilfields Kramer Energy is proud to serve the Saskatchewan oil business with our industry-leading line-up of solutions that provide the power your operation needs. Kramer offers prime power and standby generators, along with multiple configurations of Cat® engines and transmission that will meet any need in the oilfield. Kramer Energy is pleased to provide the reliable, long-lasting Cat® equipment that has earned the trust of customers around the globe. Cat® engines have proven themselves to be useful in the most demanding applications in the oilfield. Engines and generator sets from Kramer Energy feature proven Cat® reliability and durability. They have the right power for each application, offer easy servicing, and are tuned to optimize fuel consumption. Cat® engines are known for their ease of installation and low owning and operating costs. Kramer is pleased to have seven branches located around Saskatchewan to serve our customers. With facilities located in Regina, Saskatoon, Tisdale, Swift Current, Estevan, Kindersley, and Battleford, we have over 160,000 square feet of shop space and 53,000 square feet of parts warehousing to meet your needs. Customers can count on Kramer to be there to support you and your equipment long after the purchase is complete. Kramer is also proud to have 30 Class 4, 5, and 6 vehicles in our fleet that we use to bring our service to your job site. These mobile shops have the tools, technology, and highly skilled technicians needed to get work done in the field. Kramer Rents is another aspect of the Kramer Ltd. organization that is built to support business in the oilfields of Saskatchewan. Kramer Rents is your total equipment solutions provider; we can access any type of rental product you may need. Offering pumps, generators, air compressors, heaters, electrical and instrumentation equipment, and safety gear to name but

COURSE

24 Hour Tank Truck Service (204) 838-2050

Get ready to work.

• Fresh Water Hauling, Oil & Salt Water Transfers • Service Work, Pressure Tuck, Bed Truck • Frac Packages

Shop Parts & Service - Kenton, MB (204) 838-2064 | foxtailhauling@hotmail.com 114 Saskatchewan Oil Report 2014

a few of our product lines, Kramer Rents is there to support the fluctuations in equipment needs you will have in your business throughout the different seasons. Some of the advantages of Kramer Rents are that we help you minimize costly breakdowns; we help you to complete projects more efficiently; we eliminate equipment obsolescence; reduce your capital investment; and give you better control over your maintenance and storage costs. With daily, weekly, monthly, and rent-to-own options, be sure to remember Kramer Rents in your project planning. The Kramer Truck division also offers equipment that is built to work in the oilfield. The Cat® CT660 Vocational truck is available in a variety of configurations. Whether outfitted with a fifthwheel hitch for hauling a trailer, a water tank, or a dump box, the CT660 does what you need it to do. Kramer is pleased to be the exclusive distributor of the Premier Oilfield Equipment (POE) Hydrovac. With several sizes available, the POE Hydrovac lets you work safely on many oilfield sites and is sure to be a valuable addition to any truck fleet. As Kramer celebrates 70 strong years in 2014, we are very happy to continue to maintain deep relationships with our customers that are built on trust and mutual respect. Please contact your nearest Kramer facility and get us working for you! v


Kramer Ltd. offers parts, saLes, and service for the sasKatchewan oiL fieLds.

Neil Shaw

energy specialist regina (w) 306.949.6202 (c) 306.533.3568 nds@kramer.ca

kramer.ca

BreNt Uitti

energy specialist saskatoon (w) 306.343.7368 (c) 306.380.7100 bru@kramer.ca


CAPPA hires new CEO Concerned with a looming demographic shift and slow progress in keeping our key offerings current and relevant, the CAPPA Board decided it was time for a fundamental change to CAPPA’s organizational structure. Moving to a governance model, with a CEO overseeing the daily operations, enables the volunteer board to focus on the important directional considerations. “Making a choice between the status quo and being relevant to our stakeholders was becoming inevitable. We choose to run CAPPA with a growth business model. The biggest wins will be more continuity in our operations, effective distribution of resources amongst the committees, and being able to act on the multiple opportunities we couldn’t get to as an administrative board in the past,” explains Gavin Schafer, CAPPA chairman of the board. Thus the CAPPA Board of Directors was pleased to announce in January that they hired Sheila McFadyen as CAPPA’s new chief executive officer. McFadyen comes to CAPPA with a solid business background from the insurance industry. Most recently, she worked

Goudy Transport In the heart of the Saskatchewan Oilfield

OUR COMPANY SUPPLIES SERVICES IN MANY AREAS INCLUDING: Tank trucks • Mobile wash and steaming, local and long haul freight – including full load and LTL shipments • Skid steer, services warehousing and open yard storage is available.

Our Vac truck holds up to 4 cubes and can suck any fluid and small contaminate. We also operate end and belly dump trailers.

306.457.2785 116 Saskatchewan Oil Report 2014

at the Certified General Accountants Association and the Alberta Accountants Unification Agency. McFadyen has extensive experience developing and managing education programming, marketing brand and services, and leading business development. “I’m honoured to be CAPPA’s inaugural CEO, and look forward to working with the board and staff as we embark on this new and exciting chapter in our association,” McFadyen says Sheila McFadyen and the board immediately started working on CAPPA’s five-year strategic plan and reviewing their existing certificate program content. McFadyen comments she “is looking forward to getting to know our membership, further enhancing our value proposition and advancing the profession of production sccounting.” McFadyen can be reached at the CAPPA office and will be attending upcoming events, so please say hello. v


TRUCKING LTD. BOX 282, CARNDUFF, SASKATCHEWAN S0C 0S0

Ph: 306-671-7885

Fax: 306-482-5286 Email: easyridertruckingltd@gmail.com


Penetrators Canada Inc. and the MaxPERF drilling tool technology Creating better completion/ workover tunnels; providing productive advantages Superior reservoir contact and unsurpassed value: this is what everyone at Penetrators Canada Inc. preaches and provides to the many valuable customers who have utilized the MaxPERF drilling tool completion and workover technology. Based in Red Deer, Alberta, and entering their 24th year in business, Penetrators Canada Inc. is proud of its history and very excited about the future of providing the oil and gas industry with the alternative and proprietary MaxPERF technology. MaxPERF is a hydraulically actuated, mechanical alternative to conventional explosive perforating techniques. MaxPERF creates one-inch holes milled through the casing and +/-0.7-inch (17mm) drilled holes into formation rock while being non-damaging to the casing and surrounding cement sheath—the cement integrity is left intact. The tool drills tunnels radially from the wellbore to a depth up to 72 inches and provides an opportunity to communicate deeper into reservoir rock than conventional methods. MaxPERF can be operated in cased 118 Saskatchewan Oil Report 2014

or open-hole wells that are vertical, deviated or horizontal. MaxPERF Applications Penetrators Canada Inc. currently maintains a number of MaxPERF downhole assemblies designed for working in 114.3-mm casing and larger. Based in the Red Deer head office, Penetrators has four pumper-spread set-ups—three that are wheel-mounted and one that is a C-Can skid set-up for working in remote areas. The majority of the work Penetrators is doing is Canadian based, with plus/minus five to 10 per cent of the work load coming from U.S. and overseas opportunities. Most applications are in oil-producing wells or in related facility (injectors, water disposal) type wells. Where MaxPERF tends to be most beneficial is dealing with wells that have near-wellbore damage, have thin/streaky formations that are difficult to communicate with, or where the producing zones are closely located to underlying water. Precision tunnel size and placement for steam or water injection is another ap-

plication that is keeping the MaxPERF equipment busy. Examples of these applications are seen in the Mannville formations in central Alberta, the Dina formation in eastern Alberta, the Glauconite formation in southern Alberta, the Viking formations in the Kindersley area of west-central Saskatchewan, and numerous dolomite formations in southeast Saskatchewan. Southeast Saskatchewan has been, and continues to be, an active area for Penetrators and provides good applications for the MaxPERF technology. Formations like the Souris Valley, Alida beds, Midale, Frobisher, Tilston, and Bakken shale, etc., steadily show good production through MaxPERF tunnels. MaxPERF tunnels can be acid-stimulated in a “less risky” fashion than through conventional perforation holes; deeper MaxPERF tunnels where formation material is drilled and removed, versus being compacted, can be stimulated by low-volume/lowpressure acid-washing, instead of higherpressure acid-squeezing. MaxPERF tunnels are also providing benefit in south-


SUPERIOR RESERVOIR CONTACT

n

f Hart's E& er o P inn

W

DRILLING TOOL

eering Innova gin t io En

ous Award tori for eri M

8002 Edgar Industrial Avenue Red Deer, Alberta, Canada T4P 3S2 P: (403) 346-7474 E: info@maxperf.ca

F: (403) 343-7260 www.maxperf.ca

UNSURPASSED VALUE


west Saskatchewan water injection wells for formation pressure maintenance; larger diameter, deeper tunnels that can take production water longer before filtering off. Frac initiation work in the Viking play near Kindersley is another area where MaxPERF has benefitted clients; precision holes are located in monobore casing, precisely placed, and flowpaths into the reservoir rock for the fracture treatment extend deeper into the reservoir. Since incorporation in Alberta in 1990, Penetrators has grown six-fold to a staff of 18 people, based in Red Deer and Calgary. Field operations, engineering, manufacturing and administration staffs are based in the Red Deer head office facility, and sales staff have an office in downtown Calgary.

MaxPERF tool development has seen many changes over the years and it continues to evolve and improve: the average number of tunnels per tool run has more than doubled in the last five years, all due to tool development and improvements. Research and development is a big part of the day-to-day operations at Penetrators Canada Inc. Currently, we are looking into modifications to the MaxPERF technology whereby the tool will be able to mill through multiple strings of casing; plug and abandonment applications for the North Sea off-shore; modifications to the hydraulic motor assemblies in the MaxPERF tool to be able to work in thermal applications in the Cold Lake and Fort McMurray regions of Alberta; development of a wireline version of our MaxPERF tech-

nology to open doors to providing our service rigless (this is the big one!), and other technological developments. “We are very proud of our people, their tenacity and drive to make the MaxPERF drilling tool technology as good a service as it can be. Our history is important to us and we are very excited about our future,” states Dwayne West, president of Penetrators Canada Inc. “Maintaining a strong presence here in Western Canada is number one to us, but we are thrilled with the global opportunities put in front of us and welcome the challenges.” For further information contact Dwayne West, president, at: dwest@maxperf.ca or Barb Denham, sales, at: bdenham@ maxperf.ca. Visit: www.maxperf.ca. v

101 Supreme Street | Estevan, SK

Ph: 306.634.1221 | Fax: 306.634.1200 www.suncountrywellservicing.ca Sun Country Well Servicing began operations in October, 2009 and provides Class II & III Mobile and Free Standing Service Rigs to oil and gas operators in South Eastern Saskatchewan.

120 Saskatchewan Oil Report 2014


Target Safety Services Ltd. continues strong growth pattern

Target Safety Services Ltd. is a locally owned and operated business with the head office in Lloydminster, Alberta; other locations in the province include: Bonnyville, Edmonton and Red Deer. The company has shown consistent growth since inception on October 1, 2006. What started off as a company of three employees in 2006 has now become a company that reached almost 500 employees in 2013. Target’s Corporate Mission Statement is quite clear: Use our knowledge, leadership and commitment to safety to help protect workers and ensure they return home safely to their families each day. Target’s Corporate Vision Statement is just as clear: Inspire our people to help us become the most reliable, well-respected and successful safety company in Canada.

In order to accomplish such a daunting task, owner and corporate general manager Clint McKinlay relies heavily on the organization’s core values. “When it comes to the selection of new members to our team, the selection of the right person is imperative. We have to ensure that not only does the individual understand and accept our corporate values, they must also share the same values as an individual,” McKinlay states. Target’s values are safety, leadership, integrity and relationships. It is no coincidence that all four values of the company are directly related to people. “We are a people-driven company that inspires our employees to be leaders on our clients’ worksites,” says McKinlay. “We value the integrity that our people bring to jobsites and cherish the relationships we have

developed over the years. Our goal every day for every job is to ensure that workers under our supervision return home safely to their families.” To keep up with increasing customer demand, the company has recently finished the construction of their brand-new head office in Lloydminster, Alberta. The new facility is substantially larger than the original location and will allow for future growth in the Lloydminster and Saskatchewan regions. The new facility will be home to senior management, in-house operations, field operations, administration, accounting, and quality assurance/ quality control as well as training. “The new facility allows us to be able to provide more services to support the industry. It was also built as recognition to our employees who have done so Saskatchewan Oil Report 2014 121


much for us… they deserve this facility,” adds McKinlay. “We are very fortunate to have assembled a fantastic team that I am proud of every day. Giving them a great place [in which] to work is the least we can do for them.” McKinlay says that while being one of the owners comes with a lot of responsibility, he has managed to stay involved in the day-to-day running of the company without losing touch with his passion: safety. “I think I have the best job out there,” McKinlay says. “Some days I definitely miss being the safety supervisor out in the field, getting my hands dirty. But knowing that I have several safety personnel out on worksites across Saskatchewan, Alberta and B.C. positively influencing those jobs makes me even happier.” Target Safety Services understands it is people who make a difference. “I am very thankful with regard to the people we have on our team here at Target,” says McKinlay. “I don’t know how many business owners out there are able to admire and look up to the people who work for them. I am definitely one of the lucky ones.” While Target understands that people play the most vital part in any business, the company also knows that excellent equipment is required to complete the package. “We have an extremely regimented quality assurance, testing and inspection program for all of our company equipment.” Whether it is gasdetection equipment, breathing apparatus or a truck, all equip-

ment is thoroughly serviced, tested and inspected prior to use by manufacturer-trained technicians. The future looks bright for Target Safety Services Ltd. With the oil and gas industry seeing an increasingly inexperienced workforce, it is going to rely heavily on the professional safety support that Target can offer. v

Protecting Your Future! A growing awareness for environmental protection creates great concern for companies in the oil and gas industry. ZCL provides fibreglass tanks that are able to be monitored through their unique double wall design. Ensure your sites have the security and protection of a corrosion free ZCL tank.

Contact Us Today! www. zcl.com 1.800.661.8265 TM

PIPELINE TANKS | PrESSurE VESSELS | FLArE KNOCK OuTS | DrAIN TANKS CHEMICAL STOrAGE TANKS | WATEr STOrAGE TANKS | FIELD SErVICE

122 Saskatchewan Oil Report 2014


www.targetsafety.ca SERVICES Safety Coordinators Safety Supervisors Construction Safety Officers Safety Watch Spark Watch High Angle Rescue Teams Equipment Technicians Fit Testing Safety Training ISNetworld Management Safety Program Auditing and Development

EQUIPMENT RENTALS Breathing Air Trailers Self-Contained Breathing Apparatus Supplied Air Breathing Apparatus Gas Detection Equipment Fall Protection Equipment Confined Space Entry Kits Air Purifying Respirators Fire Extinguishers Emergency Shower Units

WE ARE SKILLED Bonnyville, AB (780) 826-5552 Edmonton, AB (780) 464-5372 Lloydminster, AB (780) 870-5350 Red Deer, AB (403) 343-6900


APEGS: Engineering and geoscience licensees You may already qualify for registration with the Association of Professional Engineers and Geoscientists of Saskatchewan (APEGS). A suitable combination of education and experience may enable you to become an Engineering Licensee or a Geoscience Licensee with APEGS. Persons who are issued a “restricted licence” become members of the association with the rights and privileges of membership, and are entitled to engage in the practice of professional engineering or professional geoscience within an approved field of practice without being supervised by a professional engineer or professional geoscientist. What is a Restricted Licence? The restricted licence is an official authorization to engage in the practice of professional engineering or professional geoscience within a specified field of practice. It is intended to give practice rights to individuals who do not have the academic qualification for registration as a professional engineer or professional geoscientist but who can carry out specific engineering or geoscience functions based on a combination of education and experience. Persons who are issued a restricted licence become members of APEGS and receive the rights and privileges of membership. They are entitled to engage independently in the practice of

124 Saskatchewan Oil Report 2014

professional engineering or professional geoscience within an approved field of practice. Members with restricted licences may offer consulting engineering or geoscience services, provided the services offered fall within the field of the restricted licence. Information regarding registration for all membership types can be found on the APEGS website www.apegs.ca under the “Apply” tab. What are the Qualifications for a Restricted Licence? There are varying categories for qualification, each requiring a combination of education and experience. At least five years of the required experience must be supervised by a professional engineer or professional geoscientist, and the professional member must endorse the experience reports submitted with the application. For Further Information More detailed information is contained on the website in the Engineering and Geoscience Licensee section: www.apegs.ca/ Portal/Pages/Eng-Geo-Licensee. Questions can be directed by email to Patti Kindred, P.Eng., FEC, Director of Education and Compliance: pkindred@apegs.sk.ca, (306) 525-9547, or toll free 1-800-500-9547.v


Choosing the right hose

The right hose keeps your process performing safely and cost-effectively. The wrong hose could undermine your process, put personnel at risk, and compromise your bottom line—sometimes without you being aware of it. For example, an improperly chosen hose may kink. This permanent buckling of the hose disrupts the system media flow and creates a rupture threat. But because kinked hoses are not easily detected, they are in operation throughout industry. Despite its importance, hose selection is often treated as an afterthought. Proper hose selection starts with an understanding of the four main parts of a hose (Figure 1).

Selection requires making choices in those areas while paying attention to the variables in your application. Temperature, pressure and flow requirements, as well as requirements ranging from chemical compatibility to drain-ability, are some of the specifications that will dictate your choice. Hoses cost more than their purchase price. Selecting wisely also requires the consideration of hose longevity, maintenance and replacement costs, and other cost-of-ownership factors. Core Tube Material and Construction When selecting a hose, the place to start is the core tube, which is the hose’s

Looking Back...

Looking Forward... 1954 GMC

2007 Kenworth 1966 International

innermost layer, the one that comes into contact with the system media. There are some basic questions to answer when selecting the core tube material. You can address these with the help of product catalogs and your sales and service representative. The steps below will help you arrive at the right hose for your application: • Is the material chemically compatible with the system media? Will it corrode or deteriorate over time? • Can it tolerate temperature ranges of the system media? • Will the core material prevent permeation and absorption? • Do you need easy drain-ability? The typical core materials are metal, fluoropolymer, thermoplastic and rubber. Each one has its own features. For more details on these core wall constructions, refer to manufacturers’ selection guides. Reinforcement Layers Reinforcement layers are your next consideration. In most cases, the core tube is reinforced by a flexible, stainlesssteel woven braid, which is layered on top of the core. Proper reinforcement layers improve pressure containment and flexibility in the hose. Comparing flexibility is trickier. To do so, you need to understand bend radius. All hoses have a minimum bend radius, which measures how far a hose can bend before kinking (Figure 2). Covers A cover is an outer layer that protects underlying layers, personnel, and sur-

126 Saskatchewan Oil Report 2014


rounding equipment. Covers come in materials such as silicone and rubber and are integral to the hose. Covers will help prevent fraying of the braids in stainless steel reinforcement layers, which can happen from abrasion. Frayed braids weaken the hose and create a burst threat, and can injure the hands of operators. Silicone covers can provide enhanced burn protection for operators who grab or bump hoses that are carrying very hot fluid. You’ll also find covers for specialty applications which can include hose identification/labelling. End Connections End connections, usually made of metal, are where most leaks occur. The performance of the hose assembly you purchase depends largely on the hose manufacturer’s ability to attach end connections, so choose a reputable manufacturer. For all metal hoses, connections are usually welded, which completely and permanently seals the product. Fluoropolymer and thermoplastic hoses will be swaged or crimped.

Conclusion To make the best hose selection, consider your choice in the main parts of a hose—core tube material and wall construction, reinforcement layers, covers, and end connections. You will find many options in each of these areas. The variables in your application, including the tempera-

ture, pressure, and flow of your system media, will direct your decision-making. For more information, contact Swagelok Central Canada, the authorized sales and service centre for Saskatchewan, Manitoba, and northwestern Ontario: www. swagelok.com\winnipeg. v

Industrial / Commercial Development Lloydminster Land for Sale/Lease Highway16 Frontage Build to Suit/Sale or Lease

New development at Highway 16 West of Lloydminster

DEVELOP BUILD LEASE

780-808-2233

Saskatchewan Oil Report 2014 127


The quickest way around

Magazine Add.plt 08/01/2013 1:23:53 PM

128 Saskatchewan Oil Report 2014

Scale: 1:0.59 Height: 2.135 Length: 4.635 in

Suretuf Containments Ltd. is a full manufacturing and service company that provides secondary containment products to the Canadian oil and gas industry. We offer a complete selection of engineered galvanized steel containment solutions for various sizes of storage tanks and vessels. We also provide various types of geomembrane liners and geotextile fabrics for secondary containment applications. All Suretuf secondary containment systems are manufactured in Lloydminster, Alberta, by skilled, full-time, Suretuf Containments employees. No subcontractors are used in the manufacturing of our products, further guaranteeing our workmanship and quality. Local manufacturing allows us to control costs as well as constantly improve upon our systems. Suretuf Containment’s local manufacturing facility means a quick turnaround time from order to installation; no more backorders or wait times that delay your site’s construction. With the help of our engineering department, we can design site-specific containment solutions for the most difficult of projects. Suretuf Containments Ltd. offers professional installation of all of our secondary containment systems, as well as liner installations and repairs. We fabricate and stock liners in Lloydminster to provide the customer with fast and efficient service. Our longstanding relationships with liner and textile fabric suppliers allow us to provide a complete line of geosynthetics for civil construction projects. Through independent dealers, as well as Suretuf containments stocked warehouses in key areas of Alberta and Saskatchewan, we are one of the leading distributors of secondary containment systems in Western Canada. For further information, please visit www.suretuf.com. v


Now Available in 25” Tall for Multi-Pad Well Setups New Walk Through Access Door - Patent Pending

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Suretuf Containments Galvanized Wall Suretuf containment packages are a patented (patent #2362105) and P.Eng. certified design. Suretuf containment packages meet or exceed all D-055 (Alberta) and S-01 (Saskatchewan) secondary containment requirements. Suretuf has been manufacturing containment packages for over 15 years. All package components past and present are compatible with one another- no dead stock. The lightweight easy to handle drop pin connecting panels with new single slide in leg design do not require nuts and bolts for assembly providing safe, quick and easy installation or complete package relocation without special tools. Further the slide in leg design allows the entire containment systems to float with ground heaving while maintaining wall integrity. Suretuf containment packages are a zero ground disturbance system.

NEW 25” WALL

No caulking or gaskets required to attach the liner to the containment wall or to attach the walls together. The top mount liner with square top cap eliminates sharp hazardous edges providing greater safety when working near or around the wall.

Secondary Containment Access Door Our Suretuf patiented pending secondary containment walk through access door is P.Eng. stamped. This innovative walk through access door design meets or exceeds D-055 (Alberta) and S-01 (Saskatchewan) secondary containment standards. This industry first eliminates the need for crossover stairs and/or sting doors providing greater safety to operators and fluid haulers as the walk through door elimates the safety hazards associated with crossover stairs in all environment and weather conditions. No more slippery surfaces and potential fall hazards.

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Phone: 780-875-0032 • Cell: 708-214-7808 • Fax: 780-808-2273 • Email: greg@suretuf.com DEALER / DISTRIBUTORS WANTED


Seven straight years of growth and change

Saskatchewan is the second-fastest growing province in Canada with over 1.1 million residents. “We are now in our seventh year of strong population growth — the most sustained period of growth in Saskatchewan in quite some time,” Premier Brad Wall said in a media release.1 One constant through this growth phase has been continuous change. “We have put the boom and bust cycle behind us and today, Saskatchewan’s growth is strong and steady,” Wall said. “Our government will release another balanced budget that will keep us on the path of steady growth.”3 Saskatchewan is going through seven straight years of growth and change and Summit Liability Solutions has reflected this trend in our nine years of operations. A key reason for our growth is due to the dedicated, educated and hard-working employees working out of our Weyburn, Swift Current and Lloydminster offices. Summit employs over 75 full-time personnel and 15 contractors in these offices and has experienced growth since inception because of a rich local resource of highly qualified people. In nine years, we have witnessed many changes in this province, including changes in the regulatory framework. Saskatchewan has shifted from a “command and control” model to a “results-based regulations” model. As our population and economy continue to grow, so too do the demand for our resources and the pressures on our air, land and water. A healthy environment and a healthy economy are not mutually exclusive.4 The old system required significant ministry resources and specialized expertise. Environmental knowledge and technical skills have expanded profoundly, surpassing government’s capacity to be the expert on solutions.4 This has also resulted in the need 130 Saskatchewan Oil Report 2014

for companies to have the proper resources and personnel to meet these changes head-on. “The required level of knowledge, expertise and service capability has increased dramatically and as a result, so has the demand for better-educated and properly trained personnel,” says Jeff Carratt, Summit’s VP of Business Development. “The framework has evolved and so must the industry in general. We are lucky to have a strong employee base but the demand for quality people is at a premium. This is one of the side-effects of constant growth.” Saskatchewan is a province rich in uranium, wheat, and potash and accounts for a third of Canada’s primary energy production; it is also one of the few jurisdictions in the world to produce crude oil, natural gas, uranium, biofuels, geothermal, wind and hydro power. On top of this, Saskatchewan boasts over 100,000 lakes and rivers, 34 provincial parks, 300 golf courses and has more hours of sunshine than any other Canadian province or territory.2 Saskatchewan is a great place in which to live, work and play. “We are witnessing growth but the competition for skilled personnel is also on the rise. In a niche industry such as environmental services, there is a specific skillset required. Summit has been lucky to have such a dedicated group working for us but with the growth in our industry, we are always on the lookout for highly skilled and hard-working employees,” Carratt states. Saskatchewan’s new way of protecting the regulated environment is to define the desired outcome by law and empower the operator to determine how that standard will be achieved or surpassed.4 It is up to producers to change their mindsets to meet this change and to hire service companies capable of navigating this regulatory framework.


Summit is a leader in providing environmental services and guiding our customers through these changes because of the company’s expertise in Saskatchewan’s regulations and experience working in results-based regulations. “You need a very clear understanding of the regulations and the qualified personnel to keep your customers compliant. It is not ‘paint by numbers’ anymore and companies have to be willing to drive the process, not ride along,” Carratt explains. “We project continued growth in Saskatchewan and are proud to be a part of this great community,” explains Taylor Peck, Summit’s regional manager. “We are committed to providing the highest level of service through a clear understanding of our clients’ needs and the regulations which we follow.” Summit provides environmental approvals and assessments, reclamation and remediation, and drilling waste management

services enabling a cradle-to-grave, one-stop shop for customers. In addition to Summit’s Saskatchewan bases of operation, they have offices in Fort St. John, Grande Prairie, and Calgary and very recently opened an office in Virden, Manitoba. Please visit Summit at www.summitls.ca for additional information. References: . http://saskatoon.ctvnews.ca/sask-second-fastest-growingpopulation-in-canada-1.1599015) 2 . www.aboriginalbusinessdirectory.com 3 . http://www.yorktonthisweek.com/article/20140326/YORKTON0501/140329974/-1/yorkton05/province-continues-togrow 4 . http://environment.gov.sk.ca/Regulations/ v 1

24 HOUR SER VICE FULL FLUSHBY & PRESSURE SERVICES BODY VACS & SEMI VACS STEAMER/PRESSURE WASHER SERVICES SALTWATER DISPOSAL PUMPING SERVICES TANK STINGING / SLOP HAULING COMBO UNITS SKID STEER SERVICES LEASE CLEAN UPS Ken McConnell • Owner/Operator Fax: 306-397-2697 Box 238, Edam, Saskatchewan Email: rackenent@hotmail.com

24 Hour Dispatch • 780-205-9001 Saskatchewan Oil Report 2014 131


Small-town safety with huge experience PB&J Safety Consulting PB&J Safety Consulting is a small company located in Carnduff, Sask. Established in 2008 by Trish Bayliss, it offers a variety of safety services. Most commonly known for supplying mature professional experienced staff and Mobile Treatment Centres (MTC) in the oil patch, they also offer safety consulting and manuals, incident investigation, safety supervision, and COR/SECOR coaching. At a minimum, PB&J employees must be emergency medical responders licensed with the Saskatchewan College of Paramedics. They are trained in basic life support, and when licensed, must meet minimum skills training requirements every year, as well as continued education credits. Employees also have H2S and WHIMIS training. As well as keeping their skills and knowledge at their best, it is asked that employees also try to give back to our small communities. Many employees are first responders in their area if their situation allows, as well as being asked to donate time to community events. A truck is supplied free of charge, along with two

experienced personnel. PB&J MTCs are very well equipped to deal with multiple trauma incidents. All units are stocked with oxygen tanks, AED, spinal immobilization devices, trauma kits, burn kits, splints, STARS baskets, and other numerous items to deal with many types of trauma or medical issues that may arise, as well as staff that has the trained skills to use it. There are many misconceptions when it comes to the MTC and oilfield medic. Rules are set out by the province, and medics are not the safety hand. They are there to provide lifesaving medical aid and transport to meet the ambulance, saving critical response time in the “golden hour” of injury and illness. Our company provides services in a rural area where emergency services are more than just mere minutes away. OH&S regulations state that trained staff must be provided on locations that are not within 30 minutes of a medical facility. Now, with STARS being available in Saskatchewan, having the knowledge of how STARS works is crucial also. Employees are on site to save lives; if they don’t have the

232 12th Avenue, Estevan, SK S4A 1E2 | Suite 200, 2100 Airport Drive, Saskatoon, SK S7L 6M6

Garth Hoffort - Land Manager Sheila Guenther - Operations Manager

Surface:

Services offered:

Wellsite acquisitions Pipeline right-of-ways Damage settlements Third party agreements Rental reviews

Minerals:

Freehold lease acquisitions Crown lease acquisitions Locate missing title owners All related administration Confidentiality

Estevan Phone: 306.634.5614 Fax: 306.634.9131 Saskatoon Phone: 306.978.0778 Fax: 306.978.0775 Email: surfaceland@watsonlandservices.com or mineralland@watsonlandservices.com

132 Saskatchewan Oil Report 2014

knowledge or know their surroundings, they shouldn’t be out there. All trucks are compliant with the Canadian Transportation Act. PB&J carries E&O insurance, as well as insurance that allows anyone with a valid driver’s license to drive the truck while the medic is in the back with a patient. PB&J trucks will work when and where they are needed, providing units and personnel on site at drilling rig sites, service rig locations, and fracking locations. Volunteer sites include, but are not limited to, quad rallies, rodeo events, motocross events and sporting events, or any other event that requires medical personnel. Staff provided will generally also have knowledge of the industry or event they are covering. Bayliss, the owner, started in the oilfield in 1994. She has swamped, roughnecked, and drove pilot trucks. After moving to the safety side of the patch, she did a lot of rig-move safety supervision and taught safety classes. She eventually saw the future in on-site safety and branched out a little more, investing in an MTC and running it, as well as growing and building a staff as the demand grew. In 2010, Justin Read, Bayliss’ fiancé, joined her team bringing a wealth of experience with trucks and drilling rigs. Read maintains the trucks and runs to the field to help out as needed, as well as driving trucks in the patch himself. Running a business in the oilfield is in the family. In addition to PB&J being the first initial of each of her children’s names, not peanut butter & jelly as some may think, each of Bayliss’ brothers also run oilfield businesses of their own. v


Oilfield Medics & Safety Consulting Medic Trucks • Safety Services COR/SECOR Coaching PB&J SAFETY CONSULTING is a small privately

PB & J

SAFETY CONSULTING

owned company in Southeast Saskatchewan dedicated to providing our clients with the best care possible. Our employees are experienced, mature, family oriented professionals that provide medical and safety for today’s industrial needs. We would be pleased to hear from you and how we can assist in being to provide the best care possible in the critical “golden hour” of life.

PB&J Safety Consulting - Carnduff, SK

Ph: 306-482-7997


Oil Boss Rentals Inc. Dedicated to innovative solutions Oil Boss Rentals is an Albertan company that prides itself on offering innovative solutions and competitive pricing for everyday problems. Founded in 2011 by Gerry Casorso, general manager and owner, Oil Boss Rentals is a family-owned and -operated company that puts top-of-the-line equipment and excellent service as its number one priority. Headquartered in Rocky Mountain House, Oil Boss Rentals also operates a secondary northern office in Lac La Biche and lay-down yards in Athabasca, Whitecourt, Bonnyville and Fort McMurray. This past October, in its third rental company acquisition in three years, Oil Boss Rentals acquired Mid-West Hot Shots and Rentals Services. “It’s a strategic move to help strengthen our commitment to service. It’s going to help us diversify ourselves, as we now have a permanent service location and office in Lac La Biche within the oilsands,” Casorso says. “It will help us better service the customers we currently have, and grow the business within the oilsands [industry]. This way, our northern customers will have better service and more equipment readily available, to help bring the comforts of central Alberta to isolated areas in the oilsands. “It’s our commitment to service that carries us and our relationships with our customers that allow us to carry on doing business within the oilpatch. Anybody can have the equipment for rent, but it’s our commitment to service that makes the difference. They’re getting their best experience with Oil Boss that we hope is better than the rest, and that’s why they would continue dealing with us. Our competitive pricing and innovative solutions for everyday problems shows in all our equipment, which is GPS-tracked and regulated, so we can monitor and track equipment and troubleshoot any issues in the field.”

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134 Saskatchewan Oil Report 2014

Oil Boss also prides itself on being an environmentally friendly company, with a mission to become one of the most environmentally friendly companies in Saskatchewan and Alberta—and helping customers do the same. In all that it does, Oil Boss Rentals continually seeks to improve the customer service it provides. As just one example, to meet customers’ demands, Oil Boss Rentals has designed, engineered and built 30-cubic-metre hot tub units to keep fluids warm during the winter. In another milestone, Oil Boss Rentals is now an accredited Energy Resources Conservation Board (ERCB) facility handling oilfield waste, one of only a dozen companies in Alberta to have earned this designation. “There are plenty of companies renting out combo environmental trailers, but very few of them are regulated to do so properly, operating within ERCB regulations,” Casorso says. You will find Oil Boss Rentals active in the community in a variety of ways. The company, which believes in being a good community partner, is a strong supporter of the local communities in which it operates. From minor hockey to dance academies, and from 4-H and rodeo-related sports to STARS, the company provides a helping hand whenever it can. “We are really a community-involved business,” Casorso says. Among its many community sponsorships, Oil Boss Rentals seeks to promote activity and leadership skills in Alberta youth. “They get lots of that from hockey and a lot of these programs we support,” says Casorso, who recognizes that success is a team effort. Thanks to a strong support group made up of employees, subcontractors and suppliers, and good working relationships with its customers, Oil Boss Rentals is looking to the future with optimism. “We are actively looking for our next opportunity to grow the business.” Looking forward, Casorso sees the oilsands fuelling Alberta’s short-term growth. “We are really committed to service and to the oilsands area,” he says. And in the long term, when natural gas prices have recovered, “then we can flourish throughout Alberta and the western provinces.” For further information, please contact: Oil Boss Rentals Inc. T: 403.844.3031 Toll-free: 1.888.844.3031 www.oilbossrentals.com v


3

3

IL BOSS RENTALS LIGHT OILFIELD HAULING OILFIELD HAULING OFFICE TRAILER RENTAL ROUGHNECK TRAILERS WELLSITE SHACKS & ORIENTATION CENTERS LIGHT TOWERS AND GENERATORS 56 KW / 70 KVA SILENT PACK LIGHT TOWERS 60 KW / 60 KW TWIN SKID GENERATORS ENVIRO BINS COMBO UNITS ELEVATED WORK PLATFORMS & CATWALKS BOOMLIFT/ TELEHANDLER/ SKIDSTEER 30m3 HOT TUBS RIG MATS HEATERS / HEATER TRAILERS FUEL TRANSPORTATION & STORAGE POTABLE RADIO SR CELLULAR REPEATER 210 CFM COMPRESSOR MUD CANS / GER CANS SPILL CONTAINERS Office (888) 844-3031 • Fax (866) 914-7507 info@oilbossrentals.com www.oilbossrentals.com

“DEDICATED TO PROVIDING INNOVATIVE SOLUTIONS FOR EVERYDAY PROBLEMS”


Case study: The Flexitallic Change gasket

Index to Advertisers

Yara Belle Plain is a leading chemical company that converts energy, natural minerals and nitrogen from the air into essential products for farmers and industrial customers. In an effort to reduce fugitive emissions, Yara proactively sought a long-term solution to a problematic leaky joint in their convertor-elbow to waste-heat boiler flange. Their application required a seal that could withstand high temperatures, caustic media, and also cyclic conditions. In discussions regarding the nature of the leaking joint, it was established that the Thermiculite® filler material used on previous gaskets was working exceptionally well at handling the high heat in excess of 500C and caustic conditions, whereas conventional gasket styles (Kammprofile, spiral-wound, etc.) did not have the necessary recovery properties to maintain a seal as the process underwent high/low temperature cycling, subsequent bolt-loading swings and was the cause for fugitive emissions. The Flexitallic Change gasket, a novel product invented by Flexitallic in 2012 and recently launched in North America, was chosen as the best option for this application. One of the novel features of the change gasket is that it introduces elastic recovery into a traditionally stiff gasket; this allows high levels of sealing to be achieved under low initial bolt stress, and enables it to accommodate thermal cycling in the system. Thermal cycling in an application results in gasket destruction and potential leakage. The use of an inorganic Thermiculite® filler system allows freedom from the oxidation process that other non-metallic gaskets 24-7 Enterprises Ltd..............................................96 APEGS.................................................................125 Adoil Inc................................................................13 Advance Engineered Products Group..................137 Affinity Credit Union...............................................4 AGS Flexitallic, Inc.................................................52 Alliance Pipeline...................................................77 Annugas Compression Consulting Ltd...................19 Big Country Energy Services Inc............................26 Brandt Tractor.......................................................79 Canadian Linen & Uniform Service........................42 Canadian Western Bank......................................105 CanElson Drilling Inc...........................................108 Cat-Tek Cathodic Services Ltd................................39 City of Swift Current............................................103 Classic Vacuum Truck Ltd.......................................92 D & D Oilfield Rentals............................................85 D & G Polyethylene Products Ltd...........................78 Days Inn - Swift Current........................................88 DSI Thru-Tubing Inc...............................................62 Eagle Well Servicing..............................................40 Easy Rider Trucking Ltd........................................117 Elad Geological Consulting Ltd..............................64 Ener-Test Well Servicing and Rentals Ltd...............36 Enform Canada.....................................................21 Essential Energy Services......................................51 Estevan Energy....................................................106 Fast Trucking Service Ltd.....................................126

136 Saskatchewan Oil Report 2014

Flexpipe Systems..................................................27 FM Trenching........................................................82 Fmc Technologies Canada Ltd.................................5 Foam Concepts, LLC...............................................44 Foxtail Hauling....................................................114 Ftca Ltd................................................................17 Gilliss Casing Services Inc....................................110 Glentel............................................................... OBC GlobalFlow Inc......................................................31 Golder Associates Ltd............................................45 Goodwater Machine Shop (1986) Ltd....................75 Goudy Transport..................................................116 Graham Construction...........................................IFC Great Plains College..............................................37 Healthserv (Sask)..................................................75 Hunt Hot Shot.......................................................82 Ifp Technologies (Canada) Inc...............................30 IFR Workwear Inc.................................................97 Import Tool Corp. Ltd.............................................11 Intricate Well Servicing.........................................18 Irontech Rig Repair & Manufacturing Inc............112 JJ Trucking.............................................................61 Karam A.l..............................................................59 Kenilworth Combustion........................................10 Kenosee Inn Resort Hotel......................................74 Klohn Crippen Berger............................................41 Kramer Energy....................................................115 Leader Inn...............................................................7

are subject to. This provides safe sealing for the full life cycle of the application without fear of leakage. The Flexitallic Change gasket has an integral compression limitation, and its unique patented design allows retrofitting to flanges where limited sealing area is available. The elastic compression of the product allows it to be used on flanges that are not perfectly flat; being freed from the requirement to machine the flanges saves end-users both time and money. Time is also saved on installation by using gaskets manufactured to close tolerances—as change gaskets are made with laser machines and tight tolerances—so that fitting is carried out quickly and efficiently. After an engineering review of the change gasket, Yara Belle Plain agreed that the change gasket with the Thermiculite® filler and facing was a good fit for their requirements as it met all their operating conditions. They decided to install the gasket. After it had been in place for over a year, Grant Corbett, maintenance engineer with Yara Belle Plain, is happy to state: “Flexitallic Group was very solutionfocused and worked with us to find the right fit. Their product is innovative and well-made.” The Flexitallic brand represents global leadership in the engineering and manufacturing of industrial sealing products. Developer of the spiral-wound gasket in 1912, today Flexitallic continues its legacy of innovation with product materials such as Thermiculite® and the revolutionary Flexitallic Change gasket. v Level Best Technologies.........................................14 Marquis Alliance Energy Group Inc........................91 Meter-Man Flow Products Ltd...............................44 Millennium Directional Services...........................48 Neptune Pumps Services......................................43 Neset Consulting Service.......................................92 Noble Well Services Inc.........................................69 North West Regional College.................................66 Oil Boss Rentals...................................................135 Park Derochie Coatings.........................................33 PB & J Safety Consulting.....................................133 Penetrators Canada, Inc......................................119 Penta Completions................................................23 Petroleum Technology Research Centre................25 Platinum Grover......................................................9 Prairie Mud Service...............................................80 Prairie Rat Hole Services Ltd..................................82 Praxair..................................................................64 Precision Well Servicing........................................83 Pyramid Corporation.............................................88 Quality Mat Company.........................................138 Racken Enterprises Ltd........................................131 RAM Industries Inc................................................87 Ranger Land Services............................................81 Redvers and District Oil Showcase.......................111 Reinhart Group...................................................127 RL Supervision / Prairie Storm Construction.........47 Rosenau Transport Ltd...........................................93

Roughrider Rigging Ltd.......................................113 Saskatchewan Department of Economy...............IBC Sasktel..................................................................49 Sereda.................................................................109 Site Energy............................................................94 SMS Equipment Inc...............................................55 South East Electric Ltd.........................................101 Southeast Regional College..................................73 Sterling Truck & Trailer Sales Ltd............................29 Suburban Extended Stay Hotel.............................95 Summit Liability Solutions Inc................................3 Sun Country Well Servicing.................................120 Suretuf Containments Ltd...................................129 Swagelok Saskatoon.............................................15 Target Safety Services.........................................123 Tranter, Inc............................................................98 Trinity Safety & Training........................................35 TSL Industries........................................................72 Vehicle Mounted Air Compressors.........................63 W. H. Coderre & Sons Construction Ltd................102 W.W. Smith Insurance.........................................103 Watson Land Services (1984) Ltd........................132 WellTraxx..............................................................67 Western Heritage..................................................71 Western Safety Sign Co.......................................128 Williston Basin Petroleum Conference..................65 Winacott Equipment Group...................................57 ZCL Composites Inc..............................................122


ENGINEERED FOR THE TOUGHEST CONDITIONS

Year round, and around the clock, the drivers of Saskatchewan’s Northern Resource Trucking (NRT) cover immense distances on gravel roads to and from the uranium and gold mines, hauling mining materials, bulk commodities and heavy machinery for the companies that extract the rich resources of this unforgiving region. “Breakdowns are not an option on these roads. Your cell phone doesn’t work here.” Dave McIlmoyl - Vice-President Northern Resource Trucking

With facilities across Saskatchewan and Alberta, Advance offers the ultimate in Parts, Sales and Service. We are committed to Customer Satisfaction and providing you with equipment that you can count on.

REGINA 195 Henderson Dr. Regina, SK S4N 5P7

SASKATOON 2335 Schuyler St. Saskatoon, SK S7M 5V1

Ph: (306) 721-5678 Fax: (306) 721-4380

Ph: (306) 933-2445 Fax: (306) 934-6466

There are no truck stops, hotels or coffee shops, to stop at along the way, but NRT’s team of highly trained pros can be counted on to safely navigate super “B” equipment weighing up to 160,000 lbs. across a challenging terrain in temperatures that sink to -40 C in the winter. When bulk liquid and dry commodities need to move north, they move in ADVANCE Engineered equipment.

LLOYDMINSTER EDMONTON Willoughby St. West 10498 - 17 St. Lloydminster, AB T0B 0L0 Sherwood Park, AB T6P 1V8

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CALGARY 5502 - 56 Ave. S.E. Calgary, AB T2C 4M6

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ALL-WEATHER LOCATION 24/7

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1 - 8 0 0 - 2 2 7- 8 1 5 9

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Rich in Resources. Rich in Opportunity. The Fraser Institute Global Petroleum Survey 2013 ranked Saskatchewan first in Canada—third in the world—for petroleum exploration and development investment potential. Saskatchewan has what business needs. Discover the opportunities.

Saskatchewan.ca/invest


COMMUNICATION SAVES LIVES With award-winning service and 50 years in operating excellence, GLENTEL is committed to providing the oil and gas industry with your communications solutions. • Two-Way Radio Products • Remote Camera Links • Integrated Solutions

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MOTOROLA, MOTO, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners. © 2012 Motorola Solutions, Inc. All rights reserved.

Saskatchewan Oil Report 2014  

The Saskatchewan Oil Report is the premier guide to oil production and development in the province and features key industry reports, profi...

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