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PIPELINE NEWS SASKATCHEWAN’S PETROLEUM MONTHLY Canada Post Publication No. 40069240

February 2019

www.pipelinenews.ca

Vol. 11/10

They’ve had enough

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PIPELINE NEWS February 2019

>ĞŌŽƵƚŝŶƚŚĞĐŽůĚ͗ZĞŐŝŶĂƌĂůůLJĨŽƌƌĞƐŽƵƌĐĞƐ By Brian Zinchuk Regina – The wind was cold, desperately cold, on the steps of the Saskatchewan Legislature at noon on Jan. 8. It was perhaps a fitting metaphor for the supporters of Saskatchewan’s energy sector, who have been out in the cold for a long time now. And that metaphor was not lost on several of the speakers, including Premier Scott Moe, when they addressed the crowd of roughly 200 attending the Regina rally. The rally was put on by Canada Action and Rally 4 Resources, along with the Regina Chamber of Commerce. There was a strong presence from Brandt, which brought out a sideboom on a lowboy trailer with a sign saying “Pipelayers built in Regina by Brandt.” The United Steelworks and United Association also had a significant presence, part of the building trades unions representation. May of the people held signs saying, “I love Oil & Gas.” The cold resulted in something akin to a flash mob. Ten minutes before the start, next to no one was standing outside, but once it did start, people departed their warm vehicles and gathered, sometimes using signs to shield their faces from the cold wind with a -30 C wind chill. And as soon as it was over, they were gone. Canada Action Cody Battershill, founder of Canada Action,

started out, saying, “We’re out here today because we know how hard we work to feed our families, working in our oil and gas, mining, agriculture and resource sector, but we’re not seeing support for our families, with policies from the federal government right now. This isn’t partisan, this is about policy, bad policy like Bill C-69. “The reality is you can’t say you support the energy sector if you’re going to ignore energy investors, energy workers, energy families, energy municipalities, First Nations, and executives, that are all telling the federal government Bill C-69 will mean no more pipelines. “We’ve also got Bill C-48, the no oil exports from northern B.C. (bill), that many First Nations are against. We need support for Trans Mountain. We need support for Energy East. And we need to all work together, because we’re all Canadian, and we’re all in this together. “I’m standing out here in the cold, because the federal government is leaving us out here in the cold,” Battershill said, to applause. Battershill added that Canada Action is positive, non-partisan, and respectful. “That’s why we’re focusing on our issues, energy and our energy families, and we’re not talking about other issues.” This was an oblique reference to his earlier re-

Premier ^ĐŽƩDŽĞ gave a rousing speech, ǁŝƚŚKƩĂǁĂŝŶŚŝƐƐŝŐŚƚƐ͘

quest that those attending not wear yellow vests, but rather, their work coveralls. There has been growing schism between the longestablished pro-energy activists, like Canada Action and Rally 4 Resources, and the upsurge of yellow vest protestors over the past month. Many in the yellow vest movement have included among their causes opposition to the recent United Nations Migration Pact, in addition to energy issues. Canada Action and its allies have sought to distance themselves from the Yellow Vest movement as a result, and next to one wore high-visibility gear to the Regina Rally. That didn’t sit well with everyone, however. One man from Ralph, Sask., expressed to Pipeline News he wasn’t happy about being told not to wear yellow, and he wore his high visibility yellow jacket anyhow. Premier Scott Moe The premier did have a work jacket on, a dark green fire retardant one (with stripes) provided by HSE Integrated. And he spoke to the crowd in a rallying-style speech. Moe thanked those present for coming out saying it was, “On a day, when, I think many of us agree, we feel like we’ve been left out in the cold here in Western Canada and Saskatchewan.” “We have here, with us today, rig hands, we have welders, we have pipefitters, we have steelworkers, we have truckers, we have miners, we have farmers, we have the folks that built that pipelayer, sitting beside you here today, built out at Brandt Manufacturing, right here in Regina. And we’re coming together for one reason, in support of our resource sector, a resource sector that powers, not only the Saskatchewan and Alberta economy, but powers the Canadian economy. A resource sector that supports hundreds of thousands of families across this great nation, providing hope and opportunity to so many,” Moe said. “And I dare say, a resource sector that pays for the quality of life that we enjoy in this great nation of Canada,” he said.

ďŽƵƚϮϬϬƉĞŽƉůĞĂƩĞŶĚĞĚƚŚĞƌĂůůLJŝŶZĞŐŝŶĂƚŽƐƵƉƉŽƌƚƚŚĞƌĞƐŽƵƌĐĞƐĞĐƚŽƌŽŶ:ĂŶ͘ϴ WŚŽƚŽďLJƌŝĂŶŝŶĐŚƵŬ “Ladies and gentlemen, you are here today because you care about our resource sector. You care about our province and you care about our nation. And I also know, sometimes, it just seems like no one is listening. Let me tell you, here today, let me tell you this clearly, and let me tell you this emphatically: we’re listening to you.” “We hear you, the government of Saskatchewan hears you, and we will advocate on your behalf, every step of the way, so that, very soon everyone in this nation is going to hear you,” Moe said to applause. He recounted telling the prime minister to “just watch me” when it comes to fighting the carbon tax. “While that still stands true today, ladies and gentlemen, we’re facing so much more than just a carbon tax. We now have Bill C-69, the no more pipelines bill. In Canada, we already have one of the most stringent review processes in the world, a review process that we can be proud of. We don’t need a complete overhaul of the federal review process, what we need is an environmental process that actually works.” “That’s why Bill C-69, the no more pipelines act needs to be scrapped.” He said that bill caused the proponent for the Energy East Pipeline to leave. “Now it’s causing the very slow death, by strangulation of the Trans Mountain Pipeline. The federal government says no to big oil tankers with their no oil tanker ban, now,

which essentially killed the Northern Gateway Pipeline. But they say yes to big oil tankers coming into Quebec. They say yes to big oil tankers coming into Quebec carrying oil from Saudi Arabia, from Venezuela, from Nigeria,” Moe said as the crowed booed. “In this nation, we have one of the largest proven oil reserves in the world, clean, sustainably produced energy products. Yet, each and every day, from Saudi Arabia and Venezuela, we import over 700,000 barrels of foreign oil, because we just can’t get a pipeline built in this country.” He noted what Saskatchewan has gotten from the federal government are tougher methane regulations, a mandated coal phase-out that will kill thousands of jobs in Saskatchewan, and a carbon tax. “A destructive, and ineffective policy that will kill jobs in our province and in our nation, and it will drive investment out of Saskatchewan, and out of Canada. A carbon tax that quite simply will not work, will nor reduce emissions. It only reduces jobs,” Moe said. “Today we are dealing with a federal government that, quite frankly, doesn’t get it. A federal government that doesn’t understand our industries, and it doesn’t understand how we support our families. A federal government that doesn’t understand us here in Saskatchewan. We are developing resources here, in Western Canada, in our nation, resources in

the most efficient manner possible. We are developing our resources in the most environmentally sustainable manner possible, when compared to anywhere else in the world, and our federal government just doesn’t understand. “Let me tell you: we get it. Our provincial government gets it.” “So I stand with you here today and I say this, I say to our Prime Minister, Justin Trudeau and the federal Liberal government in Ottawa, I say this with you, when you’re wondering how far we will go to stand up for our industries, and you’re wondering how far we will go to stand up for our Saskatchewan families, just watch us,” Moe concluded. Senator Denise Batters Senator Denise Batters spoke about Bill C-69. She called C-69 “The antipipeline bill,” saying it was horrible and unfixable, and that Conservative senators have been fighting it tooth and nail. However, independent senators, including those from Western Canada, supported the bill in principle. She called out various independent senators, including Senator Pamela Wallin of Saskatchewan, for supporting it. “We know the oil industry downturn, which has devastated Alberta, has also harmed Saskatchewan’s economy. We are fighting for pipelines, and for resources development, and against Trudeau’s donothing, costly carbon tax,” Batters said. Ź3DJH$

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Trudeau responds to oilpatch protests By Brian Zinchuk Regina – Protests, rallies and convoys have popped up in almost every significant oilpatch community since the middle of December 2018, and even more are being planned, including mid-February convoys to Ottawa. When Prime Minister Justin Trudeau was in Regina on Jan. 11, Pipeline News asked him about this upswell of protest against his government’s energy policies. The night before, while he spoke at a town hall at the Univer-

sity of Regina, a convoy of roughly 100 units was honking outside, and about a dozen protesters in yellow vests were on the sidewalk while those going to the townhall waited to enter. Here’s the full exchange: Pipeline News: Almost every oilpatch community in the past month has had some sort of rally, or convoy pass through it, protesting your government’s energy policies. Specifically, Energy East was killed, that there’s a

Prime Minister:ƵƐƟŶdƌƵĚĞĂƵ said, “I understand the concerns folks in the energy industry,” when asked on :ĂŶ͘ϭϭĂďŽƵƚŽŝůĮĞůĚƉƌŽƚĞƐƚƐ͘WŚŽƚŽďLJƌŝĂŶŝŶĐŚƵŬ

tanker ban, conventional coal is also part of that. In Estevan, it took less than 48 hours to organize a convoy 15 kilometres long with 427 units. How do you respond to that? Prime Minister Justin Trudeau: First of all, I understand the concerns folks in the energy industry, in the Prairies, Alberta, Saskatchewan and elsewhere, have about the softening price of oil, and the differential between the price we get in Canada, and the price in the United States. That is primarily, I mean, there’s lots of factors that go into it, from refinery shutdowns, to global contexts, but the primary reason is we are prisoners of the United States market for our oil resources, from the oilsands. We do not have access to markets, other than the United States. That’s why, moving forward in the right way, on the Trans Mountain pipeline expansion, is a priority for this government. It’s why, when the proponent was wanting to drop the project, the federal government stepped in, so that we could ensure the project continues to move

ďŽƵƚϭϬϬǀĞŚŝĐůĞƐŽĨǀĂƌLJŝŶŐƐŚĂƉĞƐĂŶĚƐŝnjĞƐůŝŶĞĚƵƉĨŽƌĂƉƌŽƚĞƐƚĐŽŶǀŽLJŝŶZĞŐŝŶĂ ŽŶ:ĂŶ͘ϭϬ͘dŚĞLJĚƌŽǀĞĂƌŽƵŶĚƚŚĞǀŝĐŝŶŝƚLJŽĨƚŚĞhŶŝǀĞƌƐŝƚLJŽĨZĞŐŝŶĂĐĂŵƉƵƐĂƐWƌŝŵĞ DŝŶŝƐƚĞƌ:ƵƐƟŶdƌƵĚĞĂƵĐŽŶĚƵĐƚĞĚĂƚŽǁŶŚĂůůŝŶƚŚĞŬŝŶĞƐŝŽůŽŐLJŐLJŵ͘dŚĂƚŐƌĞĞŶƌŝŐ ŝŶƚŚĞĨƌŽŶƚ͕ĨƌŽŵ&ĂƐƚdƌƵĐŬŝŶŐ^ĞƌǀŝĐĞ͕ĚƌŽǀĞƚŚƌĞĞŚŽƵƌƐĨƌŽŵĂƌŶĚƵīƚŽŐĞƚƚŚĞƌĞ͕ ĂŶĚƚŚĞLJǁĞƌĞĞĂƌůLJ͘WŚŽƚŽĐŽƵƌƚĞƐLJ:ĂLJZŝĞĚĞů forward in the right way. That is the focus we had, because we know that getting our resources to new markets has been a long, long-standing request and need of the oil industry and the oilsands. Unfortunately, the previous government had an approach that said if you marginalize, further, Indigenous peoples and if you ignore the science, you’ll be able to get things done quicker. They failed. That’s not way to get

resources built. Anyone that’s promising that you can snip, snap your fingers and build a pipeline, doesn’t understand that’s not the way we do things anymore in Canada, nor should we. A hundred years ago, and more, when we were laying down railroads across this country, nobody checked with Indigenous people to see whether we could have permission or partnership to do it. We have now changed, as a coun-

try. We know we need to move forward, in thoughtful ways, in partnership, so that the benefits are shared, so that the risks are minimizes, so that ordinary people can know that we’re being thoughtful about the environmental and longterm consequences of the choices we’re making. That is the approach we’re taking, not only because we think it is the right way to get energy projects built, and to new Ź3DJH$

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PIPELINE NEWS February 2019

PIPELINE NEWS

EDITORIAL

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To submit a stories or ideas: Pipelines News is always looking for stories or ideas from our readers. To contribute please contact Brian Zinchuk at 306-461-5599. Subscribing to Pipeline News: Pipeline News is a free distribution newspaper, and is now available online at www.pipelinenews.ca Advertising in Pipeline News: Advertising in Pipeline News is a newer model created to make it as easy as possible for any business or individual. Pipeline News has a group of experienced staff working throughout Saskatchewan, Manitoba and parts of Alberta, so please contact the sales representative for your area to assist you with your advertising needs.

Published monthly by the Prairie Newspaper Group, a division of Glacier Ventures International Corporation, Central Office, Estevan, Saskatchewan. Advertising rates are available upon request and are subject to change without notice. Conditions of editorial and advertising content: Pipeline News attempts to be accurate, however, no guarantee is given or implied. Pipeline News reserves the right to revise or reject any or all editorial and advertising content as the newspapers’ principles see fit. Pipeline News will not be responsible for more than one incorrect insertion of an advertisement, and is not responsible for errors in advertisements except for the space occupied by such errors. Pipeline News will not be responsible for manuscripts, photographs, negatives and other material that may be submitted for possible publication. All of Pipeline News content is protected by Canadian Copyright laws. Reviews and similar mention of material in this newspaper is granted on the provision that Pipeline News receives credit. Otherwise, any reproduction without permission of the publisher is prohibited. Advertisers purchase space and circulation only. Rights to the advertisement produced by Pipeline News, including artwork, typography, and photos, etc., remain property of this newspaper. Advertisements or parts thereof may be not reproduced or assigned without the consent of the publisher. The Glacier group of companies collects personal information from our customers in the normal course of business transactions. We use that information to provide you with our products and services you request. On occasion we may contact you for purposes of research, surveys and other such matters. To provide you with better service we may share your information with our sister companies and also outside, selected third parties who perform work for us as suppliers, agents, service providers and information gatherers.

If Energy East and Northern Gateway had been built, there would be no talk ŽĨĂĐŽŶǀŽLJƚŽKƩĂǁĂ In perusing the selection of available editorial cartoons this month, this one in particular leaped off the screen. Malcolm Mayes is usually really good with his work, but this one seemed to sum up the current situation quite nicely. Prime Minister Justin Trudeau (attired just as he appeared in Regina on Jan. 10, in a tie and white dress shirt with its sleeves rolled up), screams at the golden goose. Except the golden goose (Alberta), is no longer laying golden eggs. Rather, his goose is cooked. No more eggs for you, Trudeau. The anger in the oilpatch, the metaphorical golden goose, is palpable. With each truck committed to roll to Ottawa to show their displeasure, that’s one more person and company willing to commit thousands of dollars and a huge effort to say, “We’re not going to take it anymore!” January was flush with talk of a convoy or convoys to Ottawa, intent on making noise in Ottawa for several days. Should such a convoy come to pass, please take note of the commitment being made by its participants. If it goes ahead, they intend on willingfully driving in their own bumperto-bumper moving traffic jam for several days through that great wasteland of rocks and trees and blizzards known as Northern Ontario. They will be taking the better part of two weeks out of what would otherwise be the busiest part of the year, just to make their voices heard. That’s not showing up for a lunchtime and waving a sign, then going back to work. It’s hard not to think of the historical precedent set by the on to Ottawa trek of 1935. It was the depths of the Great Depression. Single, unemployed men were sent to work in relief camps for a pittance, just to keep them occupied with make-work projects. Eventually, they had enough. The Canadian Encyclopedia noted, “The protest was motivated by concern for improved conditions and benefits in the camps, and the apparent reluctance of the federal government to provide work and wages programs.” It goes on, “When local governments refused to take responsibility for the strikers' welfare, and when the men themselves began to grow restless at the apparent failure of their protest, (leader Arthur “Slim”) Evans and his associates decided to take the movement to Ottawa. On 3 June, more than 1,000 strikers began the "On to Ottawa Trek," determined to inform the nation of their cause and to lay complaints before Parliament and Prime Minister R.B. Bennett. “The strikers commandeered freight trains and made stops in Calgary, Medicine Hat, Swift Current and Moose Jaw before arriving in Regina. There the railways, supported by an order from the prime minister, refused further access to their trains.”

They were stopped in Regina, which, as home to the RCMP training depot, was conveniently full of cops. After police moved to arrest the leaders, the “Regina Riot” broke out. One city cop was killed, dozens of rioters, citizens and police were injured, and 130 people were arrested. It was a seminal event in the history of this nation, and was a factor in the defeat of the government of the day. It’s worth a read at https://www.thecanadianencyclopedia.ca/ en/article/on-to-ottawa-trek . Some people say history doesn’t necessarily repeat itself, but sometimes it rhymes. Many of the current themes are similar to the on to Ottawa trek. There’s a feeling of abandonment by the federal government; of unemployment, the threat of bankruptcy, helplessness and desperation. It’s worthy of noting that the 1935 trek was in the sixth year of the Great Depression, which started in the fall of 1929. We are now in the fifth year of the oil downturn, which started in the fall of 2014. Perhaps that is the magic number when it comes to the tipping point between patience and desperation. Five years is about all people will take. While the blame for the oil downturn can be squarely laid at the Saudi oil minister’s feet, the actions of this federal government have not helped. Indeed, the tanker ban of the northern British Columbia coast and Bill C-69, the “no-more-pipelines bill,” as Premier Scott Moe calls it, are entirely the fault of the current federal government. They’ve resulted in billions upon untold billions of forgone revenue and profits, of sky-high oil price differentials, landlocked barrels and now curtailment. The pain has not only been felt oil companies and the oilfield services, but the provincial governments of Alberta and Saskatchewan, as well as individual workers and families. They’ve meant job losses for tens of thousands, at a time when Quebec is getting an increase in its equalization payments (conveniently coming principally from Alberta taxpayers.) It’s worth repeating that this crisis, this anger, this desperation, could have largely been prevented if the Northern Gateway Pipeline and Energy East Pipeline had been built. Both were supposed to be in service by now. It is entirely due to the federal Liberal government that they are not. If they were in the ground, this would not be happening now. And that’s why there’s so much pressure on the Kinder Morgan Trans Mountain Expansion. When the courts punted that pipeline project back for the better part of a year, the oilpatch’s line had been crossed. That may be indicated by airhorns blaring in front of Parliament Hill. We shall see.


PIPELINE NEWS February 2019

Destroying the myth of Liberal screening of town ŚĂůůƋƾĞĆ?Ć&#x;ŽŜĆ? There’s a myth floating around cyberspace that Prime Minister Justin Trudeau’s town hall sessions include pre-screened questions and questioners, all Liberal-friendly. That, my friends, is a lie. Full stop. There wasn’t a lot of notice for the Regina town

hall, held in the gym at the University of Regina on Jan. 10 – just a few days. If you wanted to attend, you had to go to the website of Saskatchewan’s sole Liberal in the House of Commons, Regina-Wascana Member of Parliament Ralph Goodale. On the site you had to enter your name, email and phone

number. That’s it. As soon as you clicked submit, you got an RSVP in your inbox. I was going as media, and I took my daughter along to assist. This was not just for the learning experience (of which it was, in spades), but also because I needed someone to run my video camera while I was

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OPINION

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By Brian Zinchuk moving around shooting stills and video from other angles. But we both filled out RSVPs, just in case. Both came back immediately. Someone I’ve gotten to know is Jason LeBlanc, a farmer from Estevan. I did some video and photography work for him a few years ago. He is probably one of the most ardent non-Liberals out there. A few years ago, he used his tractor and a cultivator to write some, how shall we say, impolite words regarding Trudeau in his field, large enough to be visible from airliners. (Isn’t it a wonder how useful GPS is for tractors these days?) Jason and his group were second or third in line, waiting to get in. They weren’t going to miss this. After a brief introduction, the prime minister, in his tie and shirt with the sleeves rolled up, said he would start to take questions in a circular pattern going around the room. It wasn’t quite full. They still could have put maybe 200-300 more people in the back rows of seating. People were still being allowed in close to showtime. But it was a good showing, nonetheless. Having been the early bird, Jason got the worm. He was in the front row, facing the cameras, within literal spitting distance of where the prime minister would be walking around. In all the online video, you’ll find him in a grey shirt, behind Trudeau, on the left side of the screen. Another not-soTrudeau fan I know is Courtland Klein. He’s a steelworker at EVRAZ Regina, and has spent many years involved with the United Steelworkers union. As I was setting up my camcorder, he texted me, waving from a seat about 20 feet behind Jason.

Jason LeBlancÍ•ĆŒĹ?Ĺ?Śƚ͕Ć?Ć‹ĆľÄ‚ĆŒÄžÄšŽčÄ‚Ĺ?Ä‚Ĺ?ĹśĆ?ƚŚĹ?Ć?ŜĞžĞĆ?Ĺ?Ć?Í• ƚŚĞĆ‰ĆŒĹ?žĞĹľĹ?ĹśĹ?Ć?ĆšÄžĆŒÍ˜WŚŽƚŽÄ?LJĆŒĹ?Ä‚ĹśĹ?ĹśÄ?Śƾŏ As a union guy, Courtland might be expected to be very much the opposite side of the political spectrum. Or maybe not, as we were to soon find out. The first half of the town hall session was punctuated by some low-key questions. There were a few from international students complaining about the cost of education here in Canada, and quite frankly, Trudeau put them in their place in a nice sort of way. There were a few questions about immigration, Islam and Christianity that were simply bad – and indeed, a few days later the prime minister’s Twitter feed showed his response to these. But then he turned to Courtland, identifying him as the “Man in the I Love Pipelines shirt.â€? And Courtland let him have it, with both barrels. He wanted to know why Canada signed the new NAFTA deal without resolution on steel tariffs. And when it came to the Trans Mountain pipeline, which EVRAZ is supposed to supply with its pipe, Courtland said, “You can legalize marijuana, but you can’t twin a pipeline?â€? Over the next few days, the online views of the exchange numbered in the millions. A few minutes later, Jason got his chance. When he’s not farming, Jason is an auctioneer, and a very good

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one at that. He knows how to talk, and how to hold a crowd. And you could see the steel in his eyes as he took on Justin Trudeau, his nemesis. Jason questioned Trudeau on the impending carbon tax, which Trudeau in turn referred to as a “price on pollution.� Jason pointed to continuous cropping, huge efficiency gains in agriculture by using bigger, but fewer tractors, and the diesel engines that no longer belch black smoke. He also talked about the protests that CBC hasn’t been reporting on. Then he asked why the carbon tax is being brought in on Canada, and questioned if the same was happening in China. Trudeau’s response might have given him the sound clips he wants to use for the upcoming campaign, but Jason, at least, had his title shot, so to speak. The reality is, at the end of the night, Jason LeBlanc and Courtland Klein both got a chance, granted by Prime Minister Justin Trudeau himself, to give him a piece of their minds. If that’s Liberal screening of questions and those who attend these town halls, I’ll eat my fedora. Some dreams did come true. Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@ sasktel.net.

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PIPELINE NEWS February 2019

Our resources must get to market

Ż3DJH$ Regina Chamber John Hopkins from the Regina Chamber of Commerce also spoke, saying, “Today, we stand united, government, labour and business. We are all in this together. All of us, here, support sustainable, environmentally responsible resource development. But there are those who, in this country, who seek to shut us down. They have but one goal in mind, to keep it in the ground. Ladies and gentlemen, we need to say enough is enough.

Let’s put Canadians first! We are the true grassroots movements in this country. We have no foreign money funding us. We have not professional protesters, and we have no secret agenda. “We have one agenda, sustainable, environmentally responsible resource development. Canadians working for Canadians. In Regina, thousands of people work in the resource sector. Thousands. We are here to stand up for you.” Building Trades Dion Malakoff, executive director of Saskatch-

ewan Building Trades, said, “We are here today to support getting our resources to market, whether it’s oil and gas, potash or grain. It wasn’t too long ago we had our grain backlog, in much the same way as our oil is backlogged, discounted at ridiculous prices.” “Everyone here understands that if we can’t get our resources to market, then we don’t work, period. This province is rich in natural resources. Our ability to mass produce their resources is the backbone of our province. When

these resources cannot get to the people or country that need them, the factories cannot simply turn off or on a switch. It doesn’t work that way, depending on the day’s market. We need a smooth, reliable, and above all else, a safe way to move our resources. We Canadians, whether we like it or not, have bought a pipeline. Now it’ s time for the federal government to build it,” he said. Steelworkers Mike Day, president of United Steelworkers Local 5890 (EVRAZ),

Trudeau disappointed with pipeline ruling Ż3DJH$ markets. We think it’s the only way, to get energy projects to new markets. So when the Federal Court of Appeal decision came down, people were disappointed in Alberta and Saskatchewan. But I was disappointed as well, because we had done more on consultations, and more on consultations and more on environmental science than the previous govern-

ment had, and we thought we had got it right. But the Federal Court of Appeal said no, we need to do a little bit more. But they gave us a blueprint in order to do that and get it done in the right way. We are following that blueprint, because we know how important it is, to get our resources to new markets, and that’s why we’re continuing to focus on doing it the right way.

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Post as Pamela Blondeau, “a Regina resident from the Pasqua and Muskowekwan First Nations,” the woman bellowed at the top of her lungs throughout almost every speech, at times drowning out the four public address speakers in place. She crowded the personal space of the speakers at the podium, including the premier, carrying her red flag as she went. She even crossed briefly in front of the podium at one point, screaming, “Pigs!” into the microphone, gaining more courage even as her screams were ignored. Bernard the Roughneck It was a bit too much Ź3DJH$

Just before the crowd was allowed into the town hall, about a dozen picketers, most in yellow vests, spoke to the media a short distance from the entrance.

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said, “We represent 1,100 workers out at EVRAZ. That’s 1,100 direct jobs to this economy. We make this pipe. Four times that is the indirect jobs, that’s 5,000 jobs, strictly from the workers at EVRAZ. Built that pipe! We’re making that Trans Mountain, let’s get it done! Let’s get it in the ground! Let’s get Energy East going. You’ve got both sides of the fence. You’ve got the NDP here. You’ve got the Sask Party here. It’s great to see everybody fighting for the same thing.” Counter protest One singular woman staged a counter protest. Identified by the Leader-

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PIPELINE NEWS February 2019

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"This is the face of people who are opposed to pipelines" Ĺť3DJH$ for Benard Hancock, a service rig roughneck who has come to be known as “Bernard the Roughneck.â€? He drove down from Grande Prairie, Alta., to speak at the event, as he as addressed the press on Parliament Hill in the past. Hancock just couldn’t ignore her, saying, “Members of the media, I really want you to turn your cameras to the people who are protesting here today. This is the face of people who are against our oil and gas industry. I want you to see that, because I want the people at home to see how ridiculous those people are. I was trying to talk with that lady there, and she said, ‘I don’t eff-ing care about your job.’ That’s what she just said to all you people here today. What do you think about that?â€? Saying he supported her right to express herself, Hancock went on, noting, “This is why we can’t have an educated conversation about this. Because every time, only the most extreme elements of the conversation get included.â€? Exasperated at the woman as she was screaming at the top of her lungs, just a few metres behind

him, Hancock said, “I just came from Grande Prairie. My friend has had seven days of work in the last six weeks. And this is what we need to deal with. “This is the face of people who are opposed to pipelines.� Hancock led the group into a chant of “Build that pipe!� “We need to be able to speak to eastern Canadians and convince them on this issue. And a lot of the problems that we can’t get our pipelines built to the east, is political. But the answer is not political. The answer starts with every one of you here today, to be literate on these issues, to speak around, to your families, about why this issue is so important, and to always hold yourself with integrity and respect when you talk about these issues. Never act like that,� he said, referring to the woman screaming at him from just behind his left shoulder. “People shut you off, and people in Toronto and Quebec are not going to listen to you.� NDP statement While there were NDP MLAs present, none took the podium. In an emailed statement, NDP Leader Ryan

Meili said, “We were invited to join the rally by steelworkers and wanted to show solidarity with them and all the workers that are concerned about jobs in their industries. We want to ensure access to markets for Saskatchewan resources because it’s vital to the province’s economy. It was disconcerting to see the Sask. Party attempt to use this to pretend they are concerned for workers when their own actions, such as increasing the PST on construction labour and restaurant meals, refusing to increase the minimum wage and implementing policies that make it harder for workers to organize have made life harder for Saskatchewan families.�

ŽĚLJÄ‚ĆŠÄžĆŒĆ?ĹšĹ?ĹŻĹŻÍ•Ä?ÄžĹśĆšĆŒÄžÍ•Ĺ?Ć?ƚŚĞÄ¨Ĺ˝ĆľĹśÄšÄžĆŒŽĨĂŜĂĚĂÄ?Ć&#x;ŽŜ͕ŽŜĞŽĨƚŚĞĹ?ĆŒĹ˝ĆľĆ‰Ć?Ç ĹšĹ?Ä?Ĺš Ĺ˝ĆŒĹ?Ä‚ĹśĹ?njĞĚƚŚĞĆŒÄ‚ĹŻĹŻÇ‡Í˜

Moe: “I think you see, here today, quite simply, they’ve had enough� By Brian Zinchuk Regina– Premier Scott Moe generally doesn’t attend protests in front of the Legislature, but he was front and centre on Jan. 6, speaking at the Regina rally for resources. Immediately after the demonstration, Pipeline News spoke to Moe about the upsurge in activism in the oilpatch, something that was all but non-existent for the past decade, even

up until last fall. Asked what is going on with these energy sector protests, he replied, “I think you are seeing the frustration of an industry that is a sustainable industry. It’s an industry that produces wealth and jobs for us, here, in this province and in Western Canada. It’s an industry that is responsible, in many ways, for the high quality of life we have across the nation of Can-

ada. You see that industry under siege from our federal government. “We have the carbon tax that they’re attempting to introduce on our wealth-producing industries, here in Saskatchewan, our job-producing industries here in Saskatchewan, like agriculture, mining, manufacturing, and most notably, energy. You then see, Ĺš3DJH$

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PIPELINE NEWS February 2019

WĆŒÄžĹľĹ?ÄžĆŒ^Ä?ŽƊDŽĞĆŒÄžÄ‚Ä?ĆšĆ?ƚŽZÄžĹ?Ĺ?ŜĂĆŒÄ‚ĹŻĹŻÇ‡ĹŠĆľĆ?ĆšŽƾƚĆ?Ĺ?ĚĞŽĨĹšĹ?Ć?ŽĸÄ?Äž Ĺť3DJH$ piling on top of that, illinformed, ineffective policy, which we’ll be fighting in the courts in just over a month – Bill C-69, the no-more-pipelines bill being introduced which will essentially stop all pipeline construction across the nation. “Just the conversation around Bill C-69 caused the proponent for Energy East to leave that project. We see TMX (Trans Mountain Expansion Pipeline) in a stranglehold due to that bill making its way through the federal

parliamentary system. We see the tanker bill being introduced which killed (Northern Gateway). We see it causing great consternation in the case of the Eagle Spirit Pipeline. “We see a drilling ban in the northern parts of Canada that shuttered the Mackenzie Valley Pipeline. You see all of these regulatory policies that are being stacked on one another, essentially shutting down these industries that have been so important to the Canadian way of life, families’ way of life, across the nation. I think you see, here

today, quite simply, they’ve had enough, and they’re starting to voice that.� Estevan is ground zero With regards to the rapidity and the scale of the Estevan truck convoy, which was organized and took place in less than 48 hours, he said, “I don’t know if I would expect it, but if I did expect it, I would expect it out of Estevan. “When you look at Estevan, Estevan is ground zero for the siege that is being experienced by the federal government. Not only by the policies in the en-

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ergy industry, and the lack of pipeline infrastructure that we have, or are going to have the ability to have, if the federal government gets their way through the no-more-pipelines bill, through the carbon tax, through methane regulations, but also through the initiative of the federal government to phase out coal. Nowhere is that felt more than in the communities of Estevan and Coronach. “Am I surprised or have I see this before? No I haven’t. Am I surprised to see it come together so quickly and so forcefully in a community like Estevan? I think, if it could happen anywhere, it could happen there, because it is very indicative of the damage the federal government is exerting on all Canadians is most evident in a community like Estevan,� he said. Coal equivalency agreement Moe expressed frustration with the federal government, which had been dragging its heels for many years on a on fleetwide equivalency agreement on carbon dioxide emissions from coal-fired power generation. Three days later, Prime Minister Justin Trudeau, while in Regina, announced to the public that an equivalency agreement had been reached with the province. That agreement had

R.FRENCH TRANSPORT

dŚĞĹ˝Ĺ?ĹŻĂŜĚĹ?Ä‚Ć?Ć?ÄžÄ?ĆšĹ˝ĆŒĹ?Ć?Ŝ͛ƚĹŹĹśĹ˝Ç ĹśÄ¨Ĺ˝ĆŒĆ‰ĆŒĹ˝ĆšÄžĆ?Ć&#x;ĹśĹ?Í•Ä?ƾƚ ƚŚĞLJÇ ÄžĆŒÄžŽŜƚŚĞĆ?ƚĞƉĆ?ŽĨƚŚĞ>ÄžĹ?Ĺ?Ć?ĹŻÄ‚ĆšĆľĆŒÄžŽŜ:Ä‚ĹśÍ˜Ď´Í˜ been printed in the Dec. 29, 2018, Canada Gazette. The agreement is now in a 60-day consultation period. Moe noted that Saskatchewan has always operated on the plan we would have an equivalency agreement. This is to ensure not only that Saskatchewan is paying attention, but, “that we’re doing right by the environment,â€? he explained. “We’re paying attention to our emissions as a whole as opposed to segments of emissions. “We want to do better by the next generation. I think everyone wants to partake in that conversation. In order to do that, you need to pay attention to the global picture. For us, in Saskatchewan, that’s our whole emissions portfolio, as opposed to just (Boundary Dam Units) 4 and 5.â€? Pipelines Regarding the defunct Energy East Pipeline, asked if it could happen with a new government in Ottawa, within one mandate, Moe said, “I think it should, and could happen, anyway. It needs to happen, anyway. It needs to hap-

pen. Bill C-69 needs to be scrapped, right? Let’s get that straight. Let me put that out there, out of the gate. The fact of the matter is Energy East is an important piece of infrastructure, nation-building infrastructure, in Canada. And we need to look at it. We need to look at it together, as provinces and the federal government and the industries that build this type of infrastructure, because of its important in Western Canadian supply to Canadians in Quebec and Ontario and Eastern Canada. That’s point one, we need to do it for our own energy independence. “Point two is that we have a very sustainable product here in Western Canada, and it’s a product that we should be proud of, and we should talk about it. We should talk about it with other nations. So not only can we displace that dirtier energy product that’s coming in from other areas of the world for the energy we use in our nation, but we can launch some of our sustainable Canadian energy product Ĺš3DJH$

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PIPELINE NEWS February 2019

Engaging on Energy East Ĺť3DJH$ to other nations. Not only are we competitive, we’re sustainable. We can displace some of those barrels of oil in other areas of the world. “This is good for our economy, it’s good for Canadians and good for the environment,â€? Moe said. The Energy East Pipeline, with the associated Cromer Lateral, would have allowed up to a quarter million barrels of oil from southeast Saskatchewan to displace foreign oil in Central and Eastern Canada. With regards to that, Moe said, “I’m going to be engaging, as the

leader of this province, along with some premiers from some other provinces, not only with individuals and the leader of Quebec, as we move forward, but all of our leaders across the nation, because this is an important piece of infrastructure.� He said that’s not only for Saskatchewan’s opportunities, and from a carbon perspective, but also in New Brunswick, where it would terminate in a refinery. He noted that New Brunswick’s previous premier, and its current one, Premier Blaine Higgs, are both advocates of the pipe-

line, to put New Brunswickers to work and to ensure we’re creating wealth, not only in Saskatchewan and New Brunswick, but all along the line. “From Saskatchewan’s perspective, when we have the opportunity for additional markets, and that’s essentially what this is, an additional market in addition to the U.S, that’s good. It’s good for Saskatchewan energy producers. It gives us the opportunity to expand our sustainable production, but to ensure we can close that oil differential that we’ve been expanding across Saskatchewan,� Moe said.

A9

Hurry hard to a rink near you Estevan – It’s cold outside. That means its time for the oilmen and oilwomen to get out their curling brooms and hurry hard. Kipling’s Annual Oilmen’s Bonspiel is Feb. 1-4. For information or to enter, call Cliff Clark 306-7362641. The Weyburn Oilfield Technical Society 60th Annual Bonspiel will be held Feb. 8-9 at the Weyburn Weyburn Curling Club. Registration information can be found at https://weyburnots.webs.com/curlingbonspiel.htm. Carlyle will hold its Oilmen’s Bonspiel on Feb. 8-9. The number at the rink is 306-453-6722. Unity will hold its 18th Annual Oilpersons’ Bonspiel on Feb. 28-March 3. Information can be found at https://www.facebook.com/ events/2130225243908949/ In Lampman, they

will be hitting the ice on March 1-3. Contact Donald Willock at 306487-7407. The Lloydminster Heavy Oil Bonspiel will be held March 14-17 at the Lloydminster Golf and Curling Centre. The number at the rink is 306-825-5494. In Shaunavon, the Oilmen’s Annual Bonspiel is March 23 at the Shaunavon Curling Club. Call Butch Wright at 306-294-8884 or Blaine Sonen at 306297-2448 Wrapping up the season is the Estevan Oilfield Technical Society 60th Annual Open Bonspiel. It’s a two-day affair, March 29-30 at the Estevan Power Dodge Curling Centre. Registration information can be found at https://www. estevanots.com/curling.

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PIPELINE NEWS February 2019

Federal funding totalling $25.6 million announced for DEEP By Brian Zinchuk Regina – Handing Prime Minister Justin Trudeau a piece of core, Kirsten Marcia explained to him that it was from the deepest well in Saskatchewan, 3,530 metres down, and it had not seen the surface for around a half billion years. She also explained her intentions of producing green, emissions-free electrical power from it. “It’s full of water, and three-and-a-half kilometres in depth. When we drill into this, that water actually flows right to surface,” she told him, in explaining some of the science behind the geothermal electrical power project. Marcia, a geologist herself, has been working on since 2010. It was an enormous day for Marcia, originally from Estevan, and her team with Deep Earth Energy Production Corp. (DEEP) Trudeau had been in Regina the night before for a townhall at the University of Regina. Marcia is the president and CEO of DEEP. “We’re excited about geothermal in Saskatchewan. Of course, it’s an obvious place for geothermal, with all the volcanoes you have here,” Trudeau joked

after he put down the core. “Recognizing the extraordinary potential this is is very exciting,” he said, once the chuckles died down. He was then shown maps indicating the geothermal potential in southeast Saskatchewan and was able to take a look through a microscope at some of that core. Trudeau’s presence that morning was to announce $25.6 million in federal funding for DEEP’s geothermal project, location within sight of the U.S. border, south of Torquay and west of Estevan. The federal funding makes up approximately half of the funds needed to complete this, the second phase of the project, which includes building a pilot plant that would be supplying five megawatts of electricity to the power grid in about 2.5 years. Its initial well was spudded in mid-November and completed in late December. That included the retrieval of over 200 metres of core which were recovered across the targeted reservoir. The core captured the Winnipeg and Deadwood Formations and terminating in the Precambrian bedrock. Detailed geotechnical core

analysis will be conducted in the near term. This core data will tie into specialized geophysical data including detailed micro-images of the reservoir rocks captured inside the well. It was some of that core DEEP had on display to show the prime minister; the deepest, oldest core ever retrieved in Saskatchewan. It was deeper by over 100 metres that that from the Aquistore wells near Boundary Dam Power Station. Drill stem test (DST) results were positive, indicating reservoir pressure and permeability that exceeds the minimum threshold for project feasibility. The well was completed with a slotted production liner, in preparation for the second phase of the pilot project which includes a production flow and build up test this spring. Federal funding was a key component in DEEP being able to drill that first well at Torquay. The vertical well, managed by Frontier Project Solutions and drilled by Horizon Drilling, reached its target total depth of 3,530 metres on December 16, 2018. Several more are expected to be drilled, in “doublets” of injectors and producers.

Prime Minister :ƵƐƟŶdƌƵĚĞĂƵ͕ůĞŌ͕ĐŽŵƉůŝŵĞŶƚĞĚ<ŝƌƐƚĞŶDĂƌĐŝĂĨŽƌďĞŝŶŐĂĐůĞĂŶͲ ĞŶĞƌŐLJƚƌĂŝůďůĂnjĞƌĂƐŚĞĂŶŶŽƵŶĐĞĚΨϮϱ͘ϲŵŝůůŝŽŶŝŶĨĞĚĞƌĂůĨƵŶĚŝŶŐĨŽƌƚŚĞĞĞƉĂƌƚŚ ŶĞƌŐLJWƌŽĚƵĐƟŽŶŽƌƉ͘ƉƌŽũĞĐƚ͘WŚŽƚŽďLJƌŝĂŶŝŶĐŚƵŬ But they’re not producing oil. They’re producing hot, salty water. Heat recovered from that brine will use the organic Rankine cycle to generate electricity. Marcia said the results exceeded expectations and that they had found water 125 C in temperature. The next steps for the project include the drilling and coring of a Mannville injection well on the same location before spring. During production testing operations, produced brine from the source well will be

injected and disposed into the injection well, enabling a production/injection doublet. Further geothermal parameters including corroboration of the initial DST data with confirmation of pressure, temperature and reservoir permeability will be acquired during this next step which includes a longer term (30 day) injection and production flow and build up test. Trudeau said, “In Saskatchewan, when we talk about drilling, most people think about oil, and rightly

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A15

“You can legalize marijuana, but we can’t twin a pipeline?” By Brian Zinchuk Regina – For Courtland Klein, getting a chance to put some tough questions to the prime minister was a heck of a rush, and an opportunity. The EVRAZ steelworker, who has spent many years

with the United Steelworkers, had a lot of questions for Prime Minister Justin Trudeau. But halfway into a town hall at the University of Regina campus, no one had asked any really tough questions, especially in regards

to energy and pipelines; the very pipelines he and 1,000 other steelworkers like him make the pipe for. Then the prime minister made a bit of a show of it, before picking Klein, the man in the “I love

pipelines” shirt. That man, who also farms near Filmore, let the prime minister have it, breathing life into what had been, to that point, a pretty staid affair. Here is their full exchange, which can also be viewed at https://youtu.

be/ltUkQQ8mNn4 . Courtland Klein: First of all, I want to congratulate you, you made it 45 minutes in your speech without blaming Harper. That was pretty good. I’d really like to start talking here about some of the

pipe and steel tariffs going on, and also about the trans mountain pipeline. You made your way out to EVRAZ twice in the last year. You seemed quite proud about it. The second time you showed up was Ź3DJH$

Trudeau announces money for geothermal project near Torquay Ż3DJH$ “Once the proposed facility is done, the electricity produced will be able to power 5,000 homes, all the while taking the yearly pollution of 7,400 cars out of the atmosphere. And if all that sounds cutting edge, that’s because it is. “DEEP’s plant will be Canada’s first ever geothermal power plant. The federal government contributed $1.5 million to test and launch this project, we knew it would be just the start of some incredible work being done, right here in Saskatchewan.” He acknowledged the DEEP team and Marcia, as a “clean-energy trailblazer and an outstanding lady.” “This project is expected to create 100 jobs during construction, providing more people with good employment and opportunities,” he added, speaking

of growing the economy while protecting the environment. “Whether we’re supporting sustainable infrastructure, or putting a price on the pollution that causes climate change, while returning all the money collected back to Canadians, our government is committed to doing our part to build a better future for everyone,” Trudeau said. Marcia said, “The funding announced today is critical for the success of this first geothermal power project. It’s funding like this, paired with equity investments from Canadians, that helps launch new, innovative, clean energy projects that will reduce our greenhouse gas emissions and create jobs.” She thanked the Government of Canada and Natural Resources Canada for the funding. She also

thanked SaskPower, the Government of Saskatchewan, and DEEP’s investors, all of whom have also contributed. “What I find really unique about this project is that we are using Canada’s world-class oil and gas technology, and unleashing it for the first time, ever, on a renewable energy resource. Taking it one step further, I find it interesting that we wouldn’t even know this renewable energy resource existed, 3.5 kilometres beneath us, if it weren’t for the oil and gas industry doing their exploration. “At our location, there isn’t any hot springs or any geysers. It’s just wide-open farmland. It took oil exploration to discover this geothermal resources.” She reported the first well has been drilled west of Estevan, and it has exceeded expectations. “We

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are going to create clean, renewable power with it, emission-free and sustainable.” “Successfully drilling and validating the resource potential is the biggest achievement this project has seen to date.” In addition to federal funding, DEEP has also received money from SaskPower and Innovation Saskatchewan, in addition to its private investors. When completed, it will be the first geothermal power project in the country. Representing the provincial government, Tina Beaudry-Mellor, Saskatchewan Minister of Innovation, was present at the announcement. Speaking afterwards, she said, “One of the things I’ve heard is the oil industry played a very important role in helping this project advance, which I think was really

great to hear.” In addition to its investment, SaskPower has committed to buy the electricity eventually produced by the project. “The province has been backing this project for a very long time. We started in 2014, with allowing them to do some of the preemptive work. The federal government also partnered. It was matched funding. The prime minister referenced $1.2 million from the federal government, but there was also $1 million added by the province for that work in 2014. In 2017, SaskPower did a project with DEEP to allow them to do some work. In 2018, the Innovation Saskatchewan portfolio also added some SAIF funding, the Saskatchewan Advantage Innovation Fund, to help them get going. “So, the Saskatchewan

government has been investing in DEEP as well. I think it’s important, and I’m really pleased to see the investment from the federal government. But like all emerging technologies, they need some help and support, and the Saskatchewan government has been behind that,” she concluded. The backdrop of the announcement was the Saskatchewan Subsurface Geological Laboratory, or core lab, in Regina, the repository for all core collected in this province since it opened over 60 years ago. The staff there were able to prepare the facility on short notice for its first prime ministerial visit, laying out representative core on the roller tables which included potash and core from the Aquistore project, previously the deepest core retrieved in Saskatchewan.

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PIPELINE NEWS February 2019

Regina steelworker challenges Prime Minister Trudeau ŽŶƐƚĞĞůƚĂƌŝīƐĂŶĚdƌĂŶƐDŽƵŶƚĂŝŶƉŝƉĞůŝŶĞ Ż3DJH$ July 1. You made some statements that you wanted to come out here, fight for Canadians, and stand up for Canadians, on July 1st you put the counter tariffs on the U.S. manufactured goods, which was great. But for the life of me, what I can’t figure out is, why would you sign on to the USMCA, while the pipe and tariffs were still active? Why didn’t you walk away? When in that part of the negotiations did you decide that we here in Regina just weren’t good enough? You’re going to move on with this agreement without us and leave us behind?

Then to add insult on top of it, we have this transmission pipeline that was going to be funded 100 per cent by private investors, without a single cent of public money. Not even once when in your campaigning did you ever throw out the idea that… You talk here about investing in Canada, well, never in your platform did you say you were going to go out and buy a 4.5 billion dollar company. This whole pipeline was going to get put in the ground, without you spending a cent of all of our money. But here we are. You’ve got yourself in a hell of a predicament. You’ve pissed

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off the greens, you’ve pissed off your base, you’ve pissed off us that don’t like you, and the pipeline still isn’t in the ground. You know, I just can’t figure out how you’re going to get ‘yes’ on this one. It’s gonna get hung up in the courts, people are going to challenge you because now you own the pipeline and now you get the say on how it’s going to go in. We have a national energy board that was put in place that put all these bonuses on these companies to meet the standards of what the people wanted and we still can’t get there. You can legalize marijuana, but we can’t twin a pipeline? An existing pipeline? The fellow up here wants to talk about balanced budgets, and how you’re going to deal with the money coming in and the income. Well, we’re just getting hosed on oil something terribly. Like, get this pipeline in the ground, get it (inaudible) and you’ll have more money that you can spend like a drunken farm wife after harvest in New York City. Prime Minister Justin Trudeau: First of all, thank

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you, sir, for your hard work in the steel industry. I know how important it is, the work that you do, the work that folks do here in Saskatchewan and Alberta and right across the country; in our oil industry, in our steel industry, in making sure that we are getting our resources to markets and that we are crowing as an economy. So I recognize the challenges that these steel and aluminum tariffs represent to our economy, to your work, and that is why we are taking these steel and aluminum tariffs extraordinarily seriously. It’s why we came in with countervailing tariffs, and thank you for your support of those, on American products which is creating pressure within the American system by governors of Kentucky amongst others, to put pressure on the president to actually move off of those steel and aluminum tariffs. Your first question was indeed about the signing of the new NAFTA deal, and should we have not gone ahead with NAFTA because of the steel and aluminum tariffs. And that was certainly a question that we had to ask ourselves and that we reflect-

It took hallway into the town hall session, but Prime Minister :ƵƐƟŶdƌƵĚĞĂƵ was taken to task on steel ƚĂƌŝīƐĂŶĚƉŝƉĞůŝŶĞƐŝŶZĞŐŝŶĂŽŶ:ĂŶ͘ϭϬ͘WŚŽƚŽďLJƌŝĂŶ Zinchuk ed on because these tariffs are hurting our workers, are hurting our economy. One of the things that we’ve done is make sure that we are supporting and putting measures in place to support companies like EVRAZ, but it’s not just Regina, it’s companies in Sault Ste. Marie, Algoma Steel. It’s companies in Hamilton, it’s aluminum companies in B.C. and in Quebec that are all being negatively impacted by these punitive American tariffs.  In every single conversation I’ve had with the president, I bring up the fact that these tariffs are not just

hurting Canadian workers like yourself, and Canadian companies, they are also hurting American workers and American companies, and we’re seeing increasing stories on that. So, we’re in a position where we have to reflect on, do we sign the new NAFTA with our largest and most important trading partner… And pledge to continue to look for moments to pressure the US to remove these steel and aluminum tariffs. Or do we walk away from a two billion dollar a day trading relationship that is hugely Ź3DJH$

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PIPELINE NEWS February 2019

A17

Trudeau stresses the importance of selling oil to Asia, not just America Ĺť3DJH$ important for the Canadian economy? Securing NAFTA, at a time of unpredictability and protectionism in the United States, was a massive priority for all Canadians, and we did it and we did it together. Premiers and provinces right across the country, including right here in Saskatchewan, stepped up and all across political perspectives and ideologies, we spoke with a very clear voice about Canadaâ&#x20AC;&#x2122;s priorities, about what we needed in the new NAFTA deal, and we got a good deal for Canada, and we secured our most important trading relationship, and that is not a small thing. Yes, I would have liked to have been able to convince the president to pull back the steel and aluminum tariffs before signing, but that was not going to be possible. That was very clear from the U.S. administration. So the choice then became: do we actually secure NAFTA, or not? And I know, here, steel and aluminum is extraordinarily important, but so are agricultural exports, billions of dollars of trade that every part of the country does with the United States, our most important market,

every single day. And that is something we needed to secure. Now, itâ&#x20AC;&#x2122;s not over, obviously. The U.S. still has to ratify the new NAFTA deal. We have already been working with members of Congress, with governor, with business interests that are being affected negatively by these tariffs, that the president has put in, to put pressure on the president, that in the process of ratification, they should remove those steel and aluminum tariffs. But in the meantime, we will continue to support companies like EVRAZ and its workers, the steel and aluminum workers right across the country, to make sure that these tariffs do not adversely impact you, your livelihood, your families, and the communities that you rely on. Secondly, the Trans Mountain Pipeline. Letâ&#x20AC;&#x2122;s be very clear. Kinder Morgan was walking away from the Trans Mountain Pipeline Voice from the crowd: Why? Trudeau: They were walking away because they felt the political risks were too great. They felt that the context they were in, with the government of B.C. being opposed to the pipeline,

and the complications they were facing around this, they wanted to throw up their hands and walk away. For me, and for all Canadians, it is an absolute priority to get our oil resources to markets other than the United States. Folks in our oil industry, in Saskatchewan and in Alberta, are suffering right now because of a massive differential in the price for Canadian oil, because we are prisoners. Ninetynine per cent of our oil goes to the United States right now. And, on top of that, the United States is sometimes a challenging partner to deal with. It makes sense to diversify our markets to markets in Asia. So we need to get our landlocked oil resources to markets across the Pacific. The Trans Mountain Pipeline Expansion will allow meaningful impacts on that. And that is why we made the decision that the federal government should take over the pipeline expansion project. Now, I am confident, and I think most people who know the oil industry are confident that that pipeline, as it is, makes money every single month with the existing pipeline. It is going to be very valuable, once it is completed.

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It was not, as you pointed out, it was not in my platform that I was going to buy a pipeline for Canadians. But it was in my platform that I was going to grow the economy and protect the environment at the same time, and do it in thoughtful, responsible ways. And moving forward on the twinning of an existing pipeline, to a well-serviced marine area, in the Port of Vancouver, which also involves us investing massively in oceans protection, and moving forward in

partnership with Indigenous peoples, it is, in my mind, the way to get projects built. If you think back into history, a hundred years ago, people laid a railroad across the prairies. Nobody checked with the locals. Nobody checked with the people that had been living and had been stewards of this land for millennia. They just decided to put it through. Well, that was then. That is not now. Now, when we want to get big projects built in this

country, we have to engage in partnership, in respectful dialog, in benefit sharing, in respect and partnership with Indigenous peoples. Thatâ&#x20AC;&#x2122;s the way weâ&#x20AC;&#x2122;re going to get big projects built. We also have Canadians across the country that are worried about future generations, about protecting our air, and water and land. And we also know we have to be responsible about the environment, and thoughtful about the Ĺš3DJH$

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A18

PIPELINE NEWS February 2019

Over 200 units take part in Lloydminster truck convoy rally By Brian Zinchuk Lloydminster – Following truck convoy protests in Grande Prairie, Nisku, Estevan and Medicine Hat, the last weekend of 2018 was the Border City’s turn to get in the game. The “Oil and Gas Support” convoy took place in Lloydminster on Saturday, Dec. 29. The convoy mustered at Northern Livestock Sales, (formerly Heartland Livestock) on Highway 16 and rolled out at 11 a.m., according to organizers Dion Boser and Marc Ouellette. A coinciding Yellow Vest rally took place at the same time at Lloydminster City Hall. The convoy passed westbound through the

city along Highway 16, to Range Road 20 and then turned south. It immediately turned east onto the service road and rejoin Highway 16 eastbound at Range Road 15. It then headed back through the city eastbound, dispersing at the starting point. Boser said, “It went really well. The turnout was really good. I would say we had, it’s just a guestimate, I don’t have an official number, but about 150 trucks, and over 200, in total, with welding trucks, pickups and cars, what have you. Asked what their cause was, he said, “I want to get the voice out there that enough is enough. We need the pipelines built. We need the tanker

ban gone, so Canada can prosper again. Not just individuals and companies, all of Canada will benefit from our resources, whether its oil and gas, lumber, agriculture. Boser is a pressure truck operator in the oilfield, working a lot with service rigs. “We had hydrovacs, we had semi vacs, wireline, rigs, other rig equipment, pressure trucks, welding trucks, pretty much anything you can think of in the oilfield was there,” Boser said. “We had people from one end of Lloyd to the other, recording and waving.” He said some people would like to do a convoy out to Ottawa.

Marc Ouellette, another organizer and owner of a trucking company, said, “I am tired of the situation here with the energy sector and the government, both provincially and federally are not doing enough to make things go forward. “Too many empty talks, with the carbon tax, saying that it’s social licence for us to get pipelines through. Unfortunately, they’re not going as planned. It’s time for them to realize that there’s an entire industry here in a chaotic state, and we need to take action. “I hope our message gets amplified over the next weeks and months, and it resonates loud enough for the provin-

There were a lot of trucks in the convoy down the Yellowhead in Lloydminster. Photo courtesy Dion Boser cial government to move things forward and get this pipe built.” Ouellette referred to the Trans Mountain Expansion Pipeline, and he would also like to see a revival of the Energy East

Pipeline as well. As for Keystone XL, he noted we need to get to other markets than the United States. See related video at https://youtu.be/ghWgMWGMkQ0.

100 years ago, laying a railroad, we didn’t ask those who lived here Ż3DJH$ impacts on future generations. Now, the previous government, you might want to plug your ears, sir, I’m about to mention Harper again, sorry, I don’t mean to be (inaudible) about that. The previous government had, as everybody

does, a priority of getting our resources to new markets. But they thought the way to do that would be to minimize environmental oversight and marginalize Indigenous voices that disagreed with the pipeline. That fact didn’t work. For 10 years, the pipelines weren’t able to be built. We did not get resources

to new markets other than the United States under the Conservative government. We are now on track to doing that. (At this point a woman with a sign stood up to the right of the Prime Minister and started screaming at him, as another person started speaking to him as well. The woman with the sign

eventually made a show of storming out a few minutes later as he was answering her question.) Trudeau: I’m sorry, I’ve got two people shouting at me on exact opposite sides of the question right now. We’ve got exactly … But we are now in a situation where we are working with Indigenous

peoples. We are working with environmental scientists to ensure the impacts are minimized, and we are going to move forward in the right way. And quite frankly, the Federal Court of Appeals laid out a blueprint where we could get the consultations right and move forward in the right way, and that is what

we are focused doing. We are focused on getting our resources to new markets and doing it in the right way. That’s exactly what we are going to do, because that’s what you need, that’s what the oilsands need, that’s what the Canadian economy needs in terms of that. So thank you for your question.

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PIPELINE NEWS February 2019

A19

dƌƵĚĞĂƵĐŽŶĮƌŵƐĐŽĂůĞƋƵŝǀĂůĞŶĐLJĂŐƌĞĞŵĞŶƚ By Brian Zinchuk Regina, Weyburn – Prime Minister Justin Trudeau confirmed on Jan. 11 that the federal government and the government of Saskatchewan have reached an equivalency agreement for carbon dioxide emissions from its coal-fired power fleet. Trudeau was in Regina on Jan. 10 for a town hall session and a subsequent announcement the following day of $25.6 million in funding for the Deep Earth Energy Production Corp. (DEEP) geothermal project south of Torquay. In a press availability after the DEEP announcement, Trudeau spoke about the equivalency agreement in response to a question from Pipeline News. Trudeau said, “We were very pleased to announce, this morning, that Saskatchewan and the federal government have come to an agreement on coal equivalency. “It’s important. I think we all understand the need to phase out coal as an energy source, and we will be doing that by 2030. But it’s also extremely important that we’re supporting the workers and their families who are in that industry

now. That agreement we’ve come to with Saskatchewan will allow for exactly that.” Referring to the announcement of funding for the geothermal project, Trudeau said, “The announcement we’re making today is a great example of exactly how the expertise that folks have developed here in Saskatchewan, and indeed, across the country, in our resource sector is an integral part of how we move forward. We wouldn’t, as Kirsten (Marcia) said, have known about the renewable resource we’re going to being to draw on in the coming months and years, were it not for the oil industry. We need to build on the expertise and hard work the people have done to find better solutions as we move forward. That’s what folks in Saskatchewan want for their families, for their kids and grandkids. That’s what we want for our communities, and that’s exactly the kinds of things we’re going to keep innovating with and working on together.” Saskatchewan confirms Saskatchewan Minister of Environment and Minister Responsible for SaskPower Dustin Duncan, in his Weyburn constituency

Prime Minister:ƵƐƟŶdƌƵĚĞĂƵ announced an agreement with Saskatchewan that will allow it to extend the life of ƐŽŵĞŽĨŝƚƐĐŽĂůͲĮƌĞĚƉŽǁĞƌŐĞŶĞƌĂƟŽŶƵŶŝƚƐ͘WŚŽƚŽďLJ Brian Zinchuk office later that day, confirmed that an equivalency agreement had been gazetted on Dec. 29. “At the end of December, the federal government gazetted the agreement. And so that kicks off a 60 day consultation period. So basically, we’re in a 60-day period where the government can provide feedback. Provided that the federal government receives no feedback that will make them want to make amend-

ments to it, the equivalency agreement should be ready to signed, sometime in March,” Duncan said. The Agreement on the Equivalency of Federal and Saskatchewan Regulations for the Control of Greenhouse Gas Emissions from Electricity Producers in Saskatchewan was published in the Dec. 29 Canada Gazette, the official newspaper of the Government of Canada. Publication in the Gazette formalizes federal

statutes, new and proposed legislation, administrative board decisions and public notices. So the agreement is now public, but has not been signed yet, Duncan explained. Agreement The agreement puts mandatory greenhouse gas emissions limits for the electricity sector in Saskatchewan for the years 2018 to 2029. For the calendar years 2018 to 2019, the limit is not greater than 33.5 metatonnes (Mt) of carbon dioxide equivalent. For the calendar years 2020 to 2024, the output can’t be greater than 77 Mt (or 82 Mt if a carbon capture and storage (CCS) system is installed at Boundary Dam Units 4 and 5) of carbon dioxide equivalent. For the calendar years 2025 to 2029, emissions cannot be not greater than 64.5 Mt of carbon dioxide equivalent. (SaskPower has already announced it will not be proceeding with carbon capture on Boundary Dam

Units 4 and 5.) Saskatchewan agrees to meet a commitment to have at least 40 per cent of the provinces’ electricity generation capacity be from non-emitting energy sources by 2030, by achieving an escalating, specified targets. A long wait Saskatchewan has been waiting for this agreement for a long time. Duncan recalled speaking about an equivalency agreement to then-federal Minister of Environment Peter Kent, under the Stephen Harper Conservative government, when Duncan, himself, was in his first round as environment minister, from 2010 to 2012 In more recent months, Saskatchewan had essentially laid out all the information it felt it possibly could for the federal government and awaited a reply. That was the state of affairs when SaskPower president and CEO Mike Marsh addressed the Estevan Chamber of Commerce on Ź3DJH$

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A20

PIPELINE NEWS February 2019

^Ä&#x201A;Ć?ĹŹÄ&#x201A;Ć&#x161;Ä?Ĺ&#x161;Ä&#x17E;Ç Ä&#x201A;ĹśĹ&#x161;Ä&#x201A;Ć?Ä&#x201A;ĹŻĹ?ĆŠĹŻÄ&#x17E;žŽĆ&#x152;Ä&#x17E;Ä?Ć&#x152;Ä&#x17E;Ä&#x201A;Ć&#x161;Ĺ&#x161;Ĺ?ĹśĹ?Ć&#x152;ŽŽžŽŜ Ä?Ĺ˝Ä&#x201A;ůͲĎĆ&#x152;Ä&#x17E;Ä&#x161;Ć&#x2030;Ĺ˝Ç Ä&#x17E;Ć&#x152;Ĺ?Ä&#x17E;ĹśÄ&#x17E;Ć&#x152;Ä&#x201A;Ć&#x;ŽŜÄ&#x201A;Ć&#x161;ŽƾŜÄ&#x161;Ä&#x201A;Ć&#x152;Ç&#x2021;Ä&#x201A;Ĺľ Ĺť3DJH$ Dec. 6, 2018 â&#x20AC;&#x201C; no agreement had yet been reached. Duncan said it was â&#x20AC;&#x153;great to hearâ&#x20AC;? the prime minister make the announcement, so long as nothing comes up during the consultation period. â&#x20AC;&#x153;It provides for the ability of SaskPower to manage the coal-fired fleet, as a fleet, not as individual facilities. So under federal regulations, all facilities cannot exceed 420 tonnes of carbon dioxide per gigawatt hour (GHw) of production. So basically, rather than looking at each individual unit facility by facility, SaskPower is able to manage it on a fleetwide basis,â&#x20AC;? he said. That will allow SaskPower, rather than having to shut down Boundary Dam

4 and 5 by the end of this year (2019) to continue to operate them until 2021 and 2024, respectively. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s really the only effect that it has. Anything that doesnâ&#x20AC;&#x2122;t have carbon capture and storage attached to it is mandated to close, by the federal government by the end of 2029,â&#x20AC;? Duncan said. The key element in this agreement is the reduction of emissions of carbon dioxide by the Boundary Dam Unit 3 Integrated Carbon Capture and Storage project. Since it captures nearly all the carbon dioxide that would otherwise be emitted through the burning of coal, SaskPower can take those reductions and average it across its other units to hit federal targets.

So what changed? Asked what changed to finally bring this about, Duncan said there had been several minor agreements to get to this point. â&#x20AC;&#x153;This was a long time in the making. There were serious discussions back and forth going back to the summer, early fall, that were making me feel not really confident that we were going to get an equivalency agreement,â&#x20AC;? he said. He didnâ&#x20AC;&#x2122;t know for sure about the agreement until it was seen in the Gazette. â&#x20AC;&#x153;Why it took this long, people can have all sorts of opinions,â&#x20AC;? Duncan said. Carbon capture and storage With SaskPower foregoing CCS on BD4 and BD5, the remainder of the

coal fleet, Shand Power Station and Poplar River Units 1 and 2 (PR1 and PR2) are the next under consideration. Shand is the newest power station, with a life expectancy going to 2042. But the federal regulations will not allow operation of Shand beyond 2030 without carbon capture and storage. Recently gazetted federal regulations do allow for continued coal-fired power generation beyond 2030, like Boundary Dam Unit 3, if carbon capture is employed. A recent high-level study was released by the Reginabased and SaskPower-affiliated International CCS Knowledge Centre saying that the cost of the next generation of CCS would cost 67 per cent less, per tonne of CO2 captured, than the

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BD3 operation. â&#x20AC;&#x153;So (Boundary Dam Unit) 6 and Poplar River are possibilities,â&#x20AC;? Duncan said. â&#x20AC;&#x153;Shand has been the focus, at this point, just because it is the newest of the units.â&#x20AC;? Itâ&#x20AC;&#x2122;s also the least-congested site to work on. â&#x20AC;&#x153;Whatâ&#x20AC;&#x2122;s probably the best case scenario at this point? Likely, it would be Shand. Thereâ&#x20AC;&#x2122;s nothing in the equivalency agreement that says we canâ&#x20AC;&#x2122;t retrofit Poplar River 1 and 2, Shand, BD6, with CCS. It (the equivalency agreement) acknowledges the provincial government will now regulate coal-fired electricity, that the federal government sees our regulations as equivalent to the federal regulations, even though theirs are unit-specific, and ours are fleetwide,â&#x20AC;? Duncan said. Regarding Boundary Dam Unit 6, their deadline is Dec. 31, 2027, according to Duncan. The shutdown deadline for Shand, Polar River Unit 1 and Unit 2 is Dec. 31, 2029, without CCS. The decision is still being made to extend the life

Ä&#x201A;ĹśÄ&#x201A;Ä&#x161;Ä&#x201A;Ä?Ć&#x;ŽŜÄ?Ä&#x201A;ĹśÄ?Ä&#x17E;ĹŻĆ? Ĺ?Ć&#x161;Ć?Ä?ŽŜÇ&#x20AC;Ĺ˝Ç&#x2021;Ć&#x161;Ĺ˝KĆŠÄ&#x201A;Ç Ä&#x201A; By Brian Zinchuk Calgary â&#x20AC;&#x201C; Canada Action, one of the organizing groups behind a protest convoy to Ottawa, has put the brakes on its plans. It was one of two convoys planned to depart central Alberta on Feb. 15, and arrive in Ottawa on Feb. 19. Canada Action and Rally 4 Resources had a coalition of organizations working on this convoy. In a press release issued

Jan. 14, Canada Action said, â&#x20AC;&#x153;We would like to recognize the overwhelming support and courage that so many Canadians from coast to coast have expressed in their desire to participate in the Resource Coalition Convoy to Ottawa. This event was planned in response to the overwhelming momentum thatâ&#x20AC;&#x2122;s been building from our resource rallies. Ĺš3DJH$

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PIPELINE NEWS February 2019

A21

Build That Pipeline, an anthem for protests By Brian Zinchuk High River, Alta. – “So build that pipeline, build that pipeline, Alberta’s lifeline. “Build that pipeline, just build that pipeline, and bring us back to prosperity.” So goes the chorus to a song by the Spitzee Post Band, a High River, Alta. bluegrass band that put recorded the song and video on Jan. 4, and by Jan. 7, had it on YouTube and various music providers. “Enough is enough,” said Joe Gore, who is the lead singer and plays mandolin with the band, when asked on Jan. 7 why they recorded the song. “We put it out there so we could get some support. We want to support the pipeline.” “The province is having such a hard time. That was our whole reason of doing it. We weren’t looking to make a ton of money doing it. We were looking to support the

proud Albertans that we are.” “As far as we’re concerned, all of the oil and gas industry, it completely supports. We know our brothers in Saskatchewan are having just as hard of a time with oil and gas as we are,” Gore said. “I worked from Hibernia to Suncor and Syncrude,” he said, specializing in installing wellhead insulator blankets. The video can be found at https://youtu.be/FBnQTjoH-IQ. It starts with numerous video clips from newscasts about pipelines, before breaking into some guitar, banjo and mandolin pickin.’ The band also includes Wayne Corner on steel guitar, Gary Kurtz on fiddle, Coralee Gore on bass and Gerry Madigan on banjo. The song says, “We’ve encountered the objectors and we’ve heard those loud protestors “But what about our

starving families? “At this rate it won’t be long before our jobs they are all gone Alberta has been brought down to her knees.” Madigan wrote the lyrics. He said on Jan. 7, “I’ve got a personal interest in it. My son is in the oil and gas industry. He’s a rig welder. My son-in-law is a production accountant in oil and gas. They’ve both suffered in recent years. Contracts were cancelled all over the place. Then they start again. Both of them have children, families to rear. It’s been really difficult. “We hear people protesting about the pipelines and all. I think there’s a touch of surrealism about this. First of all, there’s a bit of hypocrisy. You see some provinces are trying to block the pipelines and curbing our ability to maximize the resources with our exports. But at the same time, they will take the equalization payments, with

no qualms, whatsoever. To me, that’s a double standard,” Madigan said. “These are the things that motivate me. I see all these things happening, and I think, the first thing we need to fix is putting bread on the table. “You need to fix your economy. You need to fix your basic, fundamental survival, if you like. Your basic needs. If you don’t have your basic needs, you can’t feed your family. It doesn’t matter. Nothing else matters. You’re going to starve and your going to die. “We’ve got housing being repossessed and foreclosed. We’ve got cars being repossessed. This Christmas, there were some horror stories about some families who couldn’t afford presents for their kids. “When they’re deprived of an income, and they’re willing to work, and want to work, and we’ve got natural

dŚŝƐƐĐƌĞĞŶŐƌĂďĨƌŽŵƚŚĞƵŝůĚdŚĂƚWŝƉĞůŝŶĞǀŝĚĞŽ ƐŚŽǁƐƚŚĞďůƵĞŐƌĂƐƐ^ƉŝƚnjĞĞWŽƐƚĂŶĚďĞůƟŶŐŽƵƚƚŚĞŝƌ ƐƵƉƉŽƌƚĨŽƌƚŚĞŽŝůĂŶĚŐĂƐŝŶĚƵƐƚƌLJ͘WŚŽƚŽďLJ^ƉŝƚnjĞĞ WŽƐƚĂŶĚͬzŽƵdƵďĞ resources that can provide that work for the people, and if we have a pipeline that can provide exports, we can rebuild the economy. But if the economy fails, we all know what it was like. “There are people who lived through the ’80s when the economy was bad. I was living in Ireland, where we had a fierce recession in the ’80s, and houses were being foreclosed, thousands and thousands a month. That’s incredible, when you think about it. But that’s the reality when a recession hits deeply and bites deeply.”

Madigan went on, “Unless we do something to stop the economic downturn at the moment in Alberta, it’s going to eventually effect all of Canada. Because it has a huge impact. It’s fundamental to the Canadian economy and the economy here in Alberta.” Asked about Saskatchewan, which didn’t earn a mention in the song, he said. “We’ve got loads of other songs in the pipeline, ready to write.” The next one is called, “Kill the Bill,” about Bill C-69.

ΗtĞĚŝĚŶΖƚĨĞĞůǁĞĐŽƵůĚŵŝƟŐĂƚĞƚŚĂƚĐŽŶĨƵƐŝŽŶΗ Ż3DJH$ “Unfortunately, we have come to the decision that it is no longer viable to proceed with our planned convoy. We cannot confidently mitigate the unexpected challenges associated with this event. As such, we will be issuing full refunds to all of our donors. We greatly appreciate your support. GoFundMe has advised us that donors will receive a full refund in 3-7 business days. Those who donated through the website will be contacted and fully refunded. “While we are disappointed that we cannot proceed, we would like to assure our supporters that we are committed to advocating for our natural resource sector, and our national economy. Please continue to take action to get our economy back on track. We need your help and support in order to make continued progress. The Resource Coalition has a number of exciting events planned for 2019. We look forward to promoting Canada’s valuable natural resources side-by-side with our supporters. Thank you for all you do in support of

Canada’s Resource sector. All questions may be directed to James by email at convoy@canadaaction.ca or by phone at 403-990-0401.” Reached by phone, James Robson, office manager for Canada Action said, “There was a lot of confusion in the public. We didn’t feel we could mitigate that confusion.” The confusion he referred to was with another convoy being organized by Yellow Vests, with nearly identical timing and missions. The difference is the message. The Yellow Vest protests, while focusing on energy issues like pipelines, Bill C-69 and tanker bans, have also included reference to the recent United Nations Migration Pact and other issues related to migration. Canada Action and its partners have stressed they are focused on resources, and are non-partisan. It came to a point on Jan. 8, when the organizers for the rally in Regina asked protesters to leave their yellow vests at home. “There was a lot of stuff going on,” Robson said, with regards to their deci-

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sion to cancel the convoy. In addition to split between the two protest movements, the practicality of a convoy to Ottawa has been an issue from the getgo. Pipeline News has spoken to oilfield service companies that would like to attend, but found sending a big rig to Ottawa, in February, typically the busiest time of the year, had its problems. It’s a ten-day round trip from Alberta (eight from Saskatchewan). There are issues with fuel costs, commercial vehicle licenses, permits, hours of service, accommodations, and the possi-

bility of a blizzard coming in off the Great Lakes that could stall the convoy. As a result, one company in Estevan determined it would be much simpler to take a pickup truck, instead, but that would take away some of the desired impact. Robson acknowledged this, saying they were working with the Ontario department of transportation, and that pickups were more practical, but they don’t have to worry about it now. Other projects are in the works, but much of their focus had been on this convoy.

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www.pentarods.com


A22

PIPELINE NEWS February 2019

Crescent Point cuts capital program by 30 per cent Calgary – The price of oil tumbled from US$75 per barrel of WTI in early October to US$42 on Dec. 24, before coming back to US$51 on Jan. 15. In that context, Crescent Point Energy Corp. released its capital budget for 2019, with a 30 per cent decrease compared to what it spent in 2018. “This year's budget highlights the new team's emphasis on returns and capital allocation,” said Craig Bryksa, president and CEO of Crescent Point, said in a Jan. 15 press release. “Given the significant decline and volatility in commodity prices, we have reduced our 2019 capital budget by approximately $500 million, or 30 per cent, compared to the prior year. Due to our revised approach to capital allocation and taking into account improved overall efficiencies, our annual average production is unchanged from the prior year, net of dispositions. Additionally, we are on track to meet our 2018 guidance with capital expenditures approximately $35 million below budget.” Crescent Point's reduced 2019 capital expenditures budget of $1.20 to

$1.30 billion is expected to generate annual average production of 170,000 to 174,000 boepd. After adjusting for dispositions that added approximately 4,500 boepd to the 2018 annual average production, the company's 2019 production guidance is unchanged from the prior year. As of Jan. 15, Crescent Point lead the entire country with the most active drilling rigs deployed, according to Rig Locator (riglocator.ca). Their 17 rigs working included 10 in southeast Saskatchewan, four in southwest Saskatchewan, two in west central Saskatchewan and one near Swan Hills, Alta. In total, Crescent Point disposed of assets producing approximately 7,000 boepd in 2018 for proceeds of approximately $355 million. This includes approximately 2,000 boepd of gas weighted production in the second half of 2018 for proceeds of approximately $65 million. Consistent with its previously stated transition plan, the company is currently exploring further disposition opportunities, including certain upstream and infrastructure assets. Crescent Point said it will be disci-

plined during its divestiture process to ensure appropriate asset values are realized for shareholders. Share repurchase and dividend Given Crescent Point's current share price compared to the fundamental underlying value of its common shares, the board of directors has authorized a share repurchase program. Based on current market conditions and the company's commitment to living within cash flow, Crescent Point will pursue approval from the Toronto Stock Exchange for a normal course issuer bid (NCIB) to acquire up to seven per cent of its public float. The commencement of the NCIB will be announced following receipt of approval from the TSX. The board has also approved a move to a quarterly cash dividend of CDN$0.01 per share, with the first quarterly dividend payable on April 1, 2019 to shareholders of record on March 15, 2019. The company's cash dividend of CDN$0.03 per share for the month of December 2018 is payable January 15, 2019, as previously announced. Crecent Point’s stock price at opening on

Jan. 15 was $4.24 per share. Its 52-week low is $3.70 and its 52-week high is $11.81. Cost reductions The company anticipates a total payout ratio in 2019 of approximately 85 to 95 per cent, including capital expenditures, dividends and potential share repurchases. Under Crescent Point's budgeted oil price of WTI US$50.00/ bbl, and assuming the midpoint of the company's capital budget range, over $150 million of funds is forecast to be available for debt reduction, share repurchases or a combination thereof. “Our 2019 budget is disciplined, focused and flexible,” said Bryksa. “Should oil prices fall below our budgeted WTI assumption of US$50.00/ bbl, we have the ability to further revise our capital program with a continued focus on returns and operating within cash flow. If oil prices strengthen, we are well positioned to generate excess cash flow and increased value for shareholders.” 2019 Capital spending by area Crescent Point has allocated approximately 55

per cent of its total capital expenditures budget in 2019 to its key focus areas in the Viewfield Bakken, Shaunavon and Flat Lake resource plays, all within Saskatchewan. This is an increase from approximately 45 per cent in the prior year, reflecting the company's commitment to riskadjusted returns. The company plans to develop these resource plays through a combination of low-risk, high-return drilling, waterflood programs and new infrastructure investments to support future growth. As part of its waterflood initiatives, Crescent Point plans to convert approximately 145 producing wells to water injection wells in 2019, compared to approximately 70 conversions in 2018. This increase demonstrates the company's ongoing focus on the consistent advancement of decline mitigation techniques, as previously outlined in its transition plan. Crescent Point's 2019 production guidance includes the anticipated impact on production of approximately 2,000 boepd from converting existing producing wells to water injection wells. The company has fur-

ther enhanced the horizontal well economics within its emerging Uinta Basin resource play in Utah by focusing on stacked, multiwell pad development. Unit costs for Crescent Point's two-mile horizontal wells have improved by over 10 per cent compared to the prior year, reflecting drilling efficiencies and completion optimization. Based on existing market access in the Uinta Basin and riskadjusted returns at current oil prices in the earlier stage East Shale Duvernay play, the company has reduced capital allocated to these resource plays. Approximately 15 per cent of Crescent Point's total capital expenditures budget is allocated to these plays in 2019, in comparison to approximately 25 per cent in the prior year. The company may increase spending in these areas as they continue to advance, or as oil prices improve. “Approximately 70 per cent of our 2019 budget is allocated to our focus areas, including emerging and earlier stage plays,” said Bryksa. “We allocate capital based on risk-adjusted returns taking into account the long-term development plans for each area.”

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A23

Female roughneck asks about ‘gender impacts’ Regina – When Hermina Paull isn’t in university as a fulltime student, she works summers as a service rig roughneck in southwest Saskatchewan. At a town hall at the University of Regina campus on Jan. 10, she asked Prime Minister Justin Trudeau about his recent comments about construction workers and “gender impacts.” Here is their full exchange: Hermina Paull: Welcome to Regina, Mr. Prime Minister. I would like to bring attention to comments you have made, back in November, when you

have spoken about the gender and social impacts construction workers create in rural areas. Although not a construction worker, I, myself, am an oilfield worker in addition to being a fulltime university student, and have spent my summers temporarily relocating to various rural areas in Alberta, Saskatchewan and Manitoba to work on various oilfieldrelated projects. During my time working in the oilfield as a young female, I have come across some of the kindest, most respectful male coworkers, and have created last-

ing friendships in the rural towns I have temporarily relocated to. I work very hard and have dedicated a lot of time in the oilfield industry during my summer in order to keep up with increasing tuition costs, and I feel that you have painted myself, my coworkers and friends in a negative light with your comment. My question for you, Mr. Prime Minister, is, what exactly did you mean by “gender impacts” when you put construction workers into a rural area? If you could, please provide a thorough explanation on your

comment, in addition to clarifying what exactly those social and gender impacts are? Prime Minister Justin Trudeau: Thank you for your question. Construction workers build this country, every single day. The work you do, the work your colleagues do, building our roads, building our bridges, building our homes, building

to a worker). The company was fined $71,429 plus a surcharge of $28,571, a total of $100,000. Great Western Tong Services (1987) Ltd. of Virden, Manitoba, pleaded guilty to contravening subsection 137(1)(a) of the regulations (being an employer fail to provide an effective safeguard where a worker may contact a dangerous moving part of a machine, resulting in a serious injury to a worker).  The company was fined $25,000 plus a $10,000 surcharge.

Hermina Paull didn’t get the answer she was looking for from Prime Minister :ƵƐƟŶdƌƵĚĞĂƵĂďŽƵƚ “gender impacts.” WŚŽƚŽďLJƌŝĂŶŝŶĐŚƵŬ

780 barrel tank pressures from 4 oz. PSI 78

16 oz.PSI. 400 Barrel 12’ diameter x 20’ high

Horizon Drilling and Great Western Tong ^ĞƌǀŝĐĞƐĮŶĞĚĨŽƌǁŽƌŬƉůĂĐĞŝŶũƵƌLJ Weyburn – Two out-ofprovince companies were fined for Occupational Health and Safety violations after pleading guilty in Weyburn Provincial Court on January 15, 2019. Western Energy Services Corp., operating as Horizon Drilling, of Calgary, pleaded guilty to contravening subsection 17(1) (a) of the regulations (being an employer, fail to ensure that all work at a place of employment is sufficiently and competently supervised, resulting in a serious injury

our factories, building our country, every day, is an essential building block of the country and the future we’re building. That’s why we’re investing historic amounts in infrastructure. That is why we know that investments in the work construction workers do across the country is essential for building the better future that we need. Thank you for your question.

500 Barrel 1 piece fibreglass Tank 15.6’ diameter x 16’ high or 12’ diameter x 25’ high

Both companies were fined following a workplace incident on March 19, 2017, near Stoughton. A worker was hospitalized after the worker’s forearm became entangled in the moving gear of a power tong. Companies operating in the province are required to be in compliance with Saskatchewan employment laws, including Occupational Health and Safety Regulations, the Ministry of Labour Relations and Workplace Safety noted in a press release.

780 Barrel 1 piece fibreglass Tank 15.6’ diameter x 25’ high 1000 Barrel 1 piece fibreglass tank 15.6’ diameter x 32’ high

650 Barrel 1 piece fibreglass Tank 15.6’ diameter x 20’ high ALSO MANUFACTURERS OF: • Fibreglass Belt Guards • Tank Skimmers

McLean Holding Ltd. (Formerly Estevan Plastic Products Ltd.)

306-421-3255

CAREER

TORC Oil & Gas Ltd. is a publicly-traded, intermediate, light oil company with a proven track record of growing production and creating significant value through an acquisition / exploitation / exploration strategy focused on light oil resource plays. Since inception in December 2010, the TORC Team has been successfully developing its high quality light oil assets in the Central Alberta Cardium resource play and southeast Saskatchewan, both being areas where the TORC Team has an established track record. TORC’s experienced management team is leading an exciting strategy of paying a sustainable dividend to shareholders while continuing to provide disciplined per share growth, and our success is attributed to that leadership and our team of skilled and dedicated people working together to achieve TORC’s goals. TORC is committed to conducting its activities in a manner that places the highest priority on the protection of its employees, contractors, the public, and the environment. TORC Oil & Gas Ltd. is currently accepting applications for a Health and Safety Field Advisor situated at the TORC Saskatchewan Field Office located in Estevan, SK. Reporting to the Manager of HSE, this position will be responsible for, and not limited to: •

Serving Southeast Saskatchewan for 35 years

• • • •

• We have cranes ranging from Spyder crane (small enough to fit through a doorway) to 245 Ton Mobile and RT Cranes • 27- 45 Ton Pickers • Tractor trailer units • Pile Driving • Telehandler • Office trailer rentals

245 Ton Terex-Demag 5800 Explorer with a tip height to 350’ Call dispatch for additional specifications and pricing

306.634.5555

• • • • • •

Working with production and operations teams to ensure compliance with corporate health and safety standards. Facilitate field level HSE committee meetings and track corrective actions. Develop and coordinate safety audit schedules and protocols for wells, facilities, construction, service and drilling rigs, and completion operations. Track all audit action items through to completion. Work with supervisors to ensure worker training and competency is up to date and tracked in corporate system. Work with production teams to develop site specific procedures and training of new hires. Ensure all incidents are investigated and corrective and preventative actions are tracked and completed. Orientate all new hires in TORC HSE Systems. Provide training on corporate policies and procedures and facilitate outside training where required. Monitor working alone personal gas monitoring system and follow up on potential exposure issues. Maintain and manage local emergency response plan(s) and systems.

Qualifications: • Minimum of 10 years of combined safety / oil and gas production operations experience, preferably in SE SK • Must have good software and computer skills • Must be able to work collaboratively with multi-disciplinary teams • Must be a professional, team player with strong interpersonal skills and ability to develop and maintain partnerships • Must be a detail-oriented, logic-based decision maker and a strong project manager • Effective verbal and written communication skills with acute attention to detail • Strategic thinker with exemplary analytical and problem solving skills and capacity to identify information and resources needed to complete tasks • Exceptional organizational and time management skills, ability to multi-task and manage priorities in a deadline driven environment If you are a qualified candidate and interested in this opportunity, please send your resume in confidence to the one of the following: Email: Fax: Mail: Attention:

careers@torcoil.com (Indicate the position title in the subject line of your email) (403) 930-4159 TORC Oil & Gas Ltd. Manager, HR & Corporate Services 1800, 525 – 8th Avenue SW Calgary, AB T2P 1G1

All applications will be treated with discretion. We thank you for your interest, however, only those applicants selected for an interview will be contacted.


A24

PIPELINE NEWS February 2019

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Our 1500’s trim level is Rebel. This Ram Rebel is an off-road beast that’s as capable in the dirt as it is in the street. It comes with an aggressive appearance package, aluminum wheels, four-wheel drive, Bilstein off-road suspension, an electronic locking rear differential, Uconnect infotainment system with audio aux jack, 2 LCD front monitors, mobile hotspot internet access, air conditioning, a trip computer, a rear view camera with parking sensors, and more. This vehicle has been upgraded with the following features: 25w Customer Preferred Package, Hemi V8, Sunroof, Cloth/vinyl Low-back Bucket Seats, Spray In Bedliner, Tubular Side Steps.

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