PNN OCT 2021 by Pipeline News North

PIPELINE The Pipeline News North

NEWS NORTH October 2021

Serving the Oil and Gas Industry in Northern B.C. and Alberta VOL. 13 • ISSUE 10 • DIST: 17,500

FREE

LNG Canada surpasses 50% completion mark

LNG CANADA

Marine terminal construction at the LNG Canada site in Kitimat. LNG Canada says it has now surpassed the 50% completion mark, with its workforce expected to ramp up in the coming weeks. “Thousands of Canadians, most of them from B.C., are presently working on the LNG Canada project. In the coming weeks and months, activities will increase as more critical infrastructure arrives,” the company stated in an announcement on Oct. 6. “The transformation of our site in Kitimat will accelerate as we move through the next stages of project completion and ever closer to shipping our first cargo of low-

carbon, made-in B.C. LNG.” LNG Canada says its contractors and subcontractors have awarded $3.5 billion in contracts and procurement to business in British Columbia to date. Of this amount, over $2.7 billion has been awarded to First Nations-owned businesses and local area businesses. The company has also announced a vaccine mandate for workers, saying they will need to confirm their full vaccination status by Nov. 30. In a release, the company said it was adopting a mandatory COVID-19 vaccination program on the

recommendation of public health officials and to meet new travel requirements by the federal government. “We believe the B.C. Provincial Health Officer’s recommendation that workers at industrial sites such as ours be required to demonstrate proof of vaccination is the right thing to do,” the company stated in the release. “We also believe this recommendation meets the expectations of the communities in which we live and work.”

REAL ESTATE & EQUIPMENT AUCTION

MONDAY, NOVEMBER 29, 2021

weaverauctions.com Consign your equipment or book an auction!

Contact a Weaver representative today! Lorne: 250-219-0871 Evan: 250-219-4539 Joel: 780-864-5722 OFFICE & SHOP W/ 8 BAY DOORS

148,541 SQ. FT. WAREHOUSE

4.52 ACRES COMMERCIAL REAL ESTATE

3.41 ACRES COMMERCIAL REAL ESTATE

8602-110A ST GRANDE PRAIRIE, ALBERTA

11101-87 AVE GRANDE PRAIRIE, ALBERTA

88x50 FT. SHOP & 88x120 FT. SHOP 16.2 ACRES COMMERCIAL REAL ESTATE

711039 RGE RD 65 GRANDE PRAIRIE, ALBERTA

Cord Spero, ReMax Realty Contact: (780) 832-5880 Email: cord@gpremax.com

The Pipeline News North

OCTOBER 21, 2021

Coastal GasLink employing nearly 1,000 local workers

LNG CANADA

LNG Canada storage tank Tom Summer tsummer@ahnfsj.ca TC Energy officials say nearly 1,000 workers in the Peace Region are employed on the Coastal GasLink pipeline, noting the project is 50 percent complete. Public Affairs Advisor Heather Desarmia gave the Peace River Regional District an update Oct. 7 on the $6.6-billion pipeline project between the Peace region and Kitimat. “When we take a look at all of Coastal GasLink’s pipeline construction activity within the Peace region, we’re looking at just shy of

1,000 personnel working on the assets,” said Desarmia. There were 4,758 workers employed on the project at the end of August, surpassing the worker count of 4,000 last year. Latest construction milestones include the completion of the Kitimat Meter Station, alongside water crossings completed at the Murray River and Burnt River near Sukunka. Work continues on the Sukunka River water crossing and by the Burnt and Merrick Mountain areas, with 90 kilometres of pipe installed. Another 30 kilometres of pipe is

expected, says Desarmia, while a threekilometre connector is also being built in Groundbirch, and a compressor station under construction at Wilde Lake. Desarmia added that safety is a top priority for the project and the company is doing its best to prevent the spread of COVID-19. “The measures we have in place have been reviewed by Northern Health and they do meet all the provincial health officer’s guidance to keep our workers, families, and communities safe,” she said.

FORT ST JOHN

PETROLEUM ASSOCIATION FSJPA/

fsjpa.wildapricot.org

Become a Member

The Fort St. John Petroleum Association is actively seeking new members. The purposes of the society Fort St John Petroleum Association are: • To create a nonprofit fraternal organization for educational, benevolent and social purposes. • To create a medium through which the society members may express themselves in Social activities, Educational pursuits and Athletic endeavors. • To contribute to the community in supporting worthwhile projects as decided upon from time to time by the society. • To provide entertainment that is enjoyable, instructive and beneficial to its members and families. • To encourage a spirit of good fellowship among the society members.

Contact us: Unless otherwise specified all regular meetings are held 6:00 pm on the second Thursday of the month. Mailing Address:

Fort St. John Petroleum Association Box 6122, Fort St. John BC V1J 4H6

—Local Journalism Initiative

The Pipeline News North

Methane in local groundwater occurs naturally: study

OCTOBER 21, 2021 3

ARDENT ENERGY H-65R & F-101R THERMOSTATICALLY CONTROLLED WOOD STOVES

LOAD THEM UP WITH WOOD, SET THE THERMOSTAT AND RELAX • Up to 100,000 BTU/Hour Output • Stand-Alone or Forced-Air Furnace • Optional Water Coil Allows You to Heat Your Domestic Water Lines

F-101R

H-65R

11111 – 100th Street, Grande Prairie, AB 210042

Mon – Fri: 9am to 6pm • Sat: 9am to 5pm

780-538-1987 • www.gasfireplace.net

Region. Developing and supporting capabilities to detect and monitor gas migrating through the subsurface, as well as collection of baseline groundwater data, were key recommendations in the Province of British Columbia’s 2019 Scientific Review of Hydraulic Fracturing in British Columbia report. Project researcher and University of British Columbia Department of Earth, Ocean and Atmospheric Sciences Professor Roger Beckie said the work helps to establish the quality of near-surface groundwater in northeastern British Columbia. “Focusing on methane concentrations, in order to provide a knowledge base to make decisions about water and resource development.” “The BC Oil and Gas Commission was pleased to support this study which contributes to the evolving body of knowledge to continually improve our understanding of important values such as groundwater in northeast British Columbia,” added Paul Jeakins, Commissioner and CEO, BC Oil and Gas Commission. The research included installing a network of 29 new groundwater monitoring wells throughout the Peace Region, which will provide valuable infrastructure for future data collection and research. The wells were spaced both close to and distant from natural gas wells, and close to the communities of Chetwynd, Dawson Creek, Fort St. John and Hudson’s Hope. Samples were taken from the wells over four sampling campaigns to understand the chemistry and dissolved gas content of groundwater. Domestic water wells in the area were also sampled. editor@dcdn.ca

Brenna Burns Personal Real Estate Corporation

Phone 250-262-6441 Office 250-787-2100

The finest ranches and rural properties in beautiful Northern British Columbia

brenna@brennaburns.com MLS C8037586

$639,000 Brenna Burns

$6,500,000

MLS R2560695

SOLD

MLS C8026152

Personal Real Estate Corporation

Phone 250-262-6441 15758 283 Rd Office 250-787-2100 Fort St John, BC

20052 UPPER HALFWAY ROAD Fort St John, BC

brenna@brennaburns.com • Beautifully designed custom log home

• 1,320 deeded acres with 2,532 acre crown range tenure • Service home and shop w/ freshwater spring MLS C8037586 • Fully developed and operational gravel pit

Dawson Creek, BC

• Rare Development Opportunity • 157 Acres of highway frontage land within city limits MLS C8026152 • Zoned C3 (Highway Commercial) & M2 (Light Industrial)

Feature S1O3L0D3 ACRES Listing $6,500,000

MLS C8033146

$669,000

20052 UPPER HALFWAY ROAD Fort St John, BC

MOTIVATED SELLER

w/ garage • 79 acres of pristine & private land MLS R2560695 • Fenced & ready to accommodate livestock

$639,000

MLS R2573790

$639,900

$4,200,000

$2,859,000

Fort St John, BC

$799,999

HIGHWAY 97 Dawson Creek, BC

• 3752 acres of prime agricultural land • Merchantable timber/shale & $55,350 annual revenue MLS C8037044 • Surrounded by crown land w/ abundant wildlife

$2,859,000 $1,869,900 $599,000

$4,200,000

MLS R2548203

15758 283 Rd Fort St John, BC

MLS C8037044

The finest ranches and rural properties in beautiful HIGHWAY 97 BEATTON AIRPORT ROAD Northern British24865 Columbia

MLS R2557006

24865 BEATTON AIRPORT ROAD Fort St John, BC

Exceptional investment 15169 271 ROAD 13258 283 ROAD 275 ROAD Fort St John, BC Charlie Lake, BC Charlie Lake, BC opportunity 10 min from FSJ! 1,303 acres, 683 acres MLS C8033146 MLS R2573790 $669,000style $639,900 MLS R2548203 $799,999 MLS R2557006 $599,000 leasehold & country home. Quarters can be split & MLS R2569057 $509,900 MLS C8030416 $5,989,000 MLS R2556289 $449,900 MLS C8035620 $ $1,399,000 soldMOTIVATED independently, SELLER holding 9300 28 STREET value due 15169 271 ROAD 13258 283 ROAD 275 ROAD hugeDawson residential Creek, BC Fort St John, BC Charlie Lake, BC Charlie Lake, BC to location & access to each 15166 BUICK CREEK ROAD 5931 NORTH PINE ROAD 1016 240 ROAD 18944 BERRESHIEM ROAD Fort St John, BC St John, BC Fort St John, BC Fort St John, BC parcel!FortSource additional MLS#:C8039465 revenue from timber on MLS C8035620 MLS C8030416 13934 MLS R2569057 MLS R2556289 PACKHAM FRONTAGE FORT $ST. JOHN $5,989,000 $509,900 $449,900ROAD $1,399,000 property & second residence. • 1,320 deeded acres with 2,532 acre crown 9300 28 STREET range tenure Dawson Creek, BC • Service home and shop w/ freshwater spring •• Fully developed operational 6.15 acres of M2 and (Light Industrial)gravel in citypit limits • Option to purchase the adjacent 6 Acre lot • Excellent exposure & access

• 6.15 acres of M2 (Light Industrial) in city limits • Option to purchase the adjacent 6 Acre lot • Excellent exposure & access • 161 Acres with Beatton Valley views

• 4 bed/2 bath country home with basement • 5 acres of pasture, fenced w/dugouts

• Beautifully designed custom log home w/ garage • 79 acres of pristine & private land • Fenced & ready to accommodate livestock • Turn Key Cattle Ranch

• 3 bed/2 bath home, 36x40 steel-clad shop • Fenced with farmland in hay and oats

• Turn Key Cattle Ranch

• 3 bed/2 bath home, 36x40 steel-clad shop

Fenced with farmland in hay andPeace oats Region •• Well established Cattle Ranch in the • Impressive 5620 Acres 77 Km Northeast of Fort St John • Two homes, shop, barns,enclosed cattle handling facility,

• Rare Development Opportunity • 157 Acres of highway frontage land within city limits • Zoned C3 (Highway Commercial) & M2 • (Light Executive 6 bed /3 bath home Industrial)

• 3752 acres of prime agricultural land • Merchantable timber/shale & $55,350 annual revenue • Surrounded by crown land w/ abundant wildlife

• Executive 6 bed /3 bath home • 30x32 triple garage w/overhead doors & in ﬂoor heat • Fenced for horses w/shelters & water • 159 picturesque acres surrounded by crown land • Fully renovated 2 bed/ 2bath home • 40’x50’ shop, RV parking w/hookups

• 30 acres of pristine recreational land • Approx 1 kilometre of prime lakefront access • Zoned A2 with endless opportunities

• 30x32 triple garage w/overhead doors & in ﬂoor heat • Fenced for horses w/shelters & water

• 30 acres of pristine recreational land • Approx 1 kilometre of prime lakefront access • Zoned A2 with endless opportunities

SOLD

• 1242-acre farm only 35 minutes north of Fort St John • 725 acres in production w/ 787-acre crown grazing lease. • Small gravel quarry, merchantable timber, annual oil revenue

MLS#:C8037044 D www.ranchesandrural.com 24865 BEATTON AIRPORT RD, FORT ST JOHN SOL

Century 21 Energy Realty Fort St John, BC , BC

5931 NORTH PINE ROAD Fort St John, BC • 161 Acres with Beatton Valley views

• 4 bed/2 bath country home with basement • 5 acres of pasture, fenced w/dugouts

15166 BUICK CREEK ROAD Fort St John, BC

• Well established Cattle Ranch in the Peace Region • Impressive 5620 Acres 77 Km Northeast of Fort St John • Two homes, shop, barns,enclosed cattle handling facility,

1016 240 ROAD Fort St John, BC

• 159 picturesque acres surrounded by crown land • Fully renovated 2 bed/ 2bath home • 40’x50’ shop, RV parking w/hookups

18944 BERRESHIEM ROAD Fort St John, BC

• 1242-acre farm only 35 minutes north of Fort St John • 725 acres in production w/ 787-acre crown grazing lease. • Small gravel quarry, merchantable timber, annual oil revenue

Valley Realty, Peace River, AB www.ranchesandrural.com

Century 21 Energy Realty Fort St John, BC , BC

Buying or selling a farm or ranch in the Peace Country? Call for a free consultation today!

Henry Vos

780.835.1992 • henryvos1@gmail.com www.PeaceRiverFarmsandRanches.com

59885

Most methane found in groundwater in northeast British Columbia occurs naturally, not as a result of natural gas development, according to newly published independent research. Led by researchers at the University of British Columbia’s Energy and Environment Research Initiative, the Peace Region Scientific Groundwater Monitoring Network Installation Study focused on groundwater quality with a focus on the distribution, concentration and origin of dissolved hydrocarbons, principally methane. The research was funded by the BC Oil and Gas Commission, Geoscience BC, the Ministry of Energy, Mines and Low Carbon Innovation and Mitacs. Researchers found that naturally occurring methane is ubiquitous in Peace Region groundwater, mostly at very low concentrations, and that there was no correlation between the amount of dissolved methane in the groundwater and proximity to natural gas wells. Commenting on the publication of the final report and data from the project, Geoscience BC Executive Vice President and Chief Scientific Officer Carlos Salas said peerreviewed research like the Peace Region Scientific Groundwater Monitoring Network Installation Study is essential. “To understanding our environment, and any impacts natural gas development may have. Like all Geoscience BC funded research, the report and data are public, and so can help to answer questions raised by industry, communities, Indigenous groups, governments, the regulator and other academics,” he said. A key contribution of the research is an improved understanding of baseline levels of methane in groundwater systems in the Peace

Let us heLp you cLean out the attic!

Place a text classified ad in both print & digital for just $10/week* *Cost is $1 per word with $10.00 minimum

you & the Mirror... a Great team!

250-782-4888

The Pipeline News North

OCTOBER 21, 2021

PNN MISSION STATEMENT Pipeline News North provides current, interesting, and relevant news and information about the oil and gas industry in Northeast B.C. and Northwest Alberta. Have an interesting story to share or a news lead? Email us at editor@ahnfsj.ca.

WILLIAM JULIAN REGIONAL MANAGER 250-785-5631 wj@ahnfsj.ca

JANIS KMET ADVERTISING CONSULTANT DAWSON CREEK 250-782-4888 EXT 101 C: 250-219-0369 jkmet@dcdn.ca

RYAN WALLACE ADVERTISING MANAGER FORT ST. JOHN 250-785-5631 C: 250-261-1143 rwallace@ahnfsj.ca

ROB BROWN MANAGING EDITOR DAWSON CREEK 250-782-4888 ext 112 C: 403-501-1492 editor@dcdn.ca

MATT PREPROST MANAGING EDITOR FORT ST JOHN 250-785-5631 C: 250-271-0724 editor@ahnfsj.ca

Carbon capture biofuel plant planned for B.C. Nelson Bennett nbennett@biv.com A licensing partner of Carbon Engineering will build Canada’s first direct-air carbon capture and green hydrogen plant for the production of carbonneutral fuel in Merritt. The plant will be the green equivalent of an oil refinery, except the marine, aviation and diesel fuel it will make will be from green hydrogen and CO2 captured from the atmosphere. It will be the first of its kind in Canada, and promises to be a big job creator. Huron Clean Energy, a partnership that includes Oxy Low Carbon Ventures and Carbon Engineering, will finance the project, with a bit of help from the B.C. government, which is kicking in $2 million from its Clean Energy Fund. The project is expected to create 620 direct jobs for the project’s design and development, 4,780 jobs during

construction, and 340 ongoing jobs for the plant’s operation, accordingf to a B.C. government news release. Huron Clean Energy’s Merritt Electro Fuels plant in Merritt will use Carbon Engineering’s direct air capture technology to capture CO2 from the air, and use hydrogen produced from water and BC Hydro electricity to make a drop-in fuel that can displace diesel, marine fuel and aviation fuels. Producing 103 million litres of green fuel will require a massive amount of electricity -- 315 megawatts – to run the direct air capture plant and produce 35,200 tonnes green hydrogen from water using electrolysis. “The Merritt Electro Fuels Project advances made-in-B.C. technology to capture carbon dioxide directly from the atmosphere and convert it into clean fuels,,” Bruce Ralston, Minister of Energy, Mines and Low-Carbon Innovation, said in a press release.

“This innovative, worldleading project will support our economy͛’s shift away from fossil fuels while creating new jobs and opportunities for British Columbians.” Huron Clean Energy will finance, design, build and operate the plant. Huron Clean Energy is a partnership that includes the venture capital arm of Occidental Petroleum (Oxy Low Carbon Ventures), Carbon Engineering, the Macquarie Group, the TsleilWaututh First Nation and Upper Nicola Band. “When we launched our Clean BC plan in 2018, we committed to making our fuel cleaner, by increasing the low carbon fuel standard from 10% to 20% by 2030 and increasing the supply of ... low carbon transportation fuels,” Ralston said at a press conference this morning.” Ralston said the plant could be commissioned and in production as early as 2025.

www.pipelinenewsnorth.ca BILLING: Lisa Smith - Accounting Manager 250-960-2771 Fax: 250-960-2762 accounting@ pipelinenewsnorth.ca

Brian Aikens Photo

The Carbon Engineering plant in Squamish.

METAL ROOFING & SIDING The Pipeline News North

Shuttered bioenergy plant to restart

OCTOBER 21, 2021

METAL ROOFING & SIDING NOW DOING RE-ROOFS AND NEW INSTALLS NOW DOING RE-ROOFS AND NEW INSTALLS

AGRICULTURAL - INDUSTRIAL - RESIDENTIAL AGRICULTURAL - INDUSTRIAL - RESIDENTIAL

FACTORY DIRECT! FACTORY DIRECT! 11 Profiles - 32+ colours

11 Profiles - 32+ colours

Call CallJoseph Joseph250-794-6618 250-794-6618

AURORA

a manufacturer of:

STEEL & TRIM

1-877-8METAL2

jwalter@aurorast.com

Visit our website www.versaframe.ca Nelson Bennett nbennett@biv.com A bio-enegy plant in Fort St. James that was shuttered in July les than five years after it went into operation will be acquired and restarted by a new consortium of owners. The 40-megawatt biomass power plant, which generated power from wood waste, is owned by Veolia and Fengate Asset Management. The plant began operating in 2017, but In July this year, the owners announced they were no longer operating the plant, which had employed 38 people. BioNorth Energy, a joint venture between Vancouver’s Arrow Transportation Systems, the Nak’adzli Development Corp., and Dallas-based Nexus Program Management Group plans to acquire the plant and restart it. Tim Bell, vice president of Arrow Transportation and president of BioNorth Energy, said he expects the deal to close November 15. It’s not clear why Veolia-Fengate decided to shut it down. “They had challenges with fibre, they had plant challenges -- there was a host of reasons,” Bell said. “I actually don’t know the inner workings of why it went sideways, but we have a complete

recommissioning plan and fibre strategy.” Bell said he could not disclose the price of the acquisition but said the capital cost of building the plant was roughly $250 million. The plant still has 26 years left of an electricity purchase agreement with BC Hydro, and there is a forest licence associated with it. “We’ve secured fibre from the local sawmills,” Bell said, adding that the plan for fibre also includes “going into the bush” and grinding wood waste left from forestry operations. Forest fires in the area in recent years have also left a substantial amount of low-value wood debris that can be salvaged, Bell said. Local First Nations, the Nak’adzli Whut’en, have a forest licence that will supply some of the fibre, Bell said. “There’s going to be lots of jobs for them, in the plant and as suppliers,” Bell said. The plant itself will employ 35 people, and another 100 would be employed working on the fibre side of the business. Bell said the company expected the acquisition to close November 15, and hopes to see the plant restarted by the middle of December.

Medical

Oxygen

Safety

Portable medical oxygen in the home has grown over the past decade. Medical oxygen adds a higher percentage of oxygen to the air a patient uses to breath. Fire needs oxygen to burn. If a fire should start in an oxygen-enriched area, the material burning will burn more quickly. Homes where medical oxygen is used need specific fire safety rules to keep people safe from fire and burns. SAFETY TIPS KKK There is no safe way to smoke in the home when oxygen is in use. A patient on oxygen should not smoke. KKK Candles, matches, wood stoves and even sparking toys, can be ignition sources and should not be used in the home.

KKK Keep oxygen cylinders at least five feet from a heat source, open flames or electrical devices. KKK Body oil, hand lotion and items containing oil and grease can easily ignite. Keep oil and grease away where oxygen is in use. KKK Never use aerosol sprays containing combustible materials near the oxygen.

•

FACTS

! Oxygen saturates fabric

covered furniture, clothing, hair and bedding, making it easier for a fire to start and spread.

•

! Smoking materials is the

leading heat source resulting in medical oxygen related fires, injuries and deaths.

Post No Smoking and No Open Flames signs in and outside the home to remind people not to smoke. Dawson Creek Fire Rescue

Your Source for SAFETY Information NFPA Public Education Division • 1 Batterymarch Park, Quincy, MA 02169

www.nfpa.org/education

Phone 250-782-9898

The Pipeline News North

Skyrocketing natural gas prices power B.C.’s LNG prospects By Stewart Muir

atural gas prices are back to the heady levels that preceded the oil price crash of 2014, when nearly 20 prospective liquefied natural gas (LNG) projects were being talked about for the coast of B.C. alone as Asian nations lined up to secure supplies of the cleaner alternative to coal. A lot has happened since then. We most often talk about climate change policy and continuing growth in renewables. Also, the global economy keeps on growing, which means more energy consumption. Over the last decade, energy experts strenuously assured policymakers around the world that replacing fossil fuels with renewables would make energy supplies more secure, while lowering prices. Natural gas would become so cheap it would not be worth bothering to pull out of the ground. “To make their case, experts pointed to radical declines in the price of solar panels, wind turbines, natural gas and lithium batteries,” writes California nuclear advocate Michael Schellenberger in an analysis out last week. For years, the trend in prices has seemed to support this. The long list of B.C. LNG projects shrunk to a handful. A whole generation adopted new beliefs about the future of energy. The University of Calgary cancelled enrolment in its bachelor of science in oil and gas engineering, a stunning development in the heart of the oilpatch. The notion that fossil fuels are dead, to be replaced on the road to net zero 2050 by wind and solar, became widespread. What a surprise it will be to many, then, to learn how 2021 is shaping up. A combination of factors caused electricity prices in Britain to soar by 700% in recent days. Low wind idling the nation’s vast fleet of wind turbines is a major part of the problem. Economic recovery in Europe is another piece of the puzzle. From Britain to California, Ireland to Asia, years of ruling out gas as an option led to soaring prices for the commodity. Despite its widespread appeal as a cleaner, flexible fuel that can be switched on quickly when it’s needed, gas was dropped from energy systems in many places. In Britain’s case, the combination of high energy demand and low wind meant that when the crunch came, gas wasn’t there as a backstop.

LNG CANADA PHOTO Construction activities continue. There was no choice but to ramp up the use of dirtier coal and diesel. This was not in the script. Suddenly, the future of energy is confusing. The truth is that gas prices for Canadian producers have been quietly improving for some time now. The surprising new trend comes as good news for the B.C. LNG projects that survived the post2014 shakeout. Construction of LNG Canada is well underway in Kitimat. When the first ship sails to market, probably in 2025, its cargo will be worth at least $100 million and, if today’s trends hold, potentially much more. The Woodfibre LNG project, near Squamish, remains poised to begin construction of a $2 billion facility that will bring Canada’s first-ever Equitable Origin EO100-certified natural gas to overseas markets. B.C. Minister of Finance Selina Robinson reported this week that revenue from natural gas royalties is up $172 million, mainly due to higher prices for natural gas and natural gas liquids. Her ministry has been extremely cautious with its gas price forecast, which means that if new price trends continue, the provincial treasury has a bumper year ahead of it. Other Canadian provinces that produce gas are also benefiting.

“Incredible,” commented Calgary energy economist Trevor Tombe as this week’s price spike unfolded. “If this holds, Alberta might see natural gas royalties rising to levels not seen since the [2008] financial crisis.” It’s worth connecting a few dots here. Gas is the pervasive fuel of modern life in Canada in ways most of us seldom see or think about. It heats homes, cooks food and is used to make fertilizer that nourishes crops. Gas provides about one-tenth of the nation’s electricity. The alternative is more public debt, higher taxes, a smaller provincial economy and the risk of lessened services for the public. Policies that seek to eliminate natural gas will hit domestic consumers hard. Agendas that stymie the successful pursuit of B.C.’s LNG export opportunities will further constrain government choices. Renewables prophesizers who talk excitedly about their plans to collapse Western Canada’s oil and gas sector as part of a “just transition” are detached from what is really going on globally. Though it might seem counterintuitive at times, getting LNG to market is the best climate policy that Canada can pursue if it wants to make a difference in the world while prospering at home.

6 OCT Soaring inflation has driven up the cost of living in 2021 to the point that it was a major ballot box issue in this month’s federal election. Energy is intimately connected to this and worth factoring in to how we evaluate our choices. Stewart Muir is executive director of the Resource Works Society, a non-profit based in Vancouver. Follow him on Twitter at @sjmuir.

Catch you in the next

Pipeline!

The Pipeline News North Phase 1 Plant Piles. The program began in January 2020 and included 6,483 piles in total. To celebrate, LNG Canada made the last pile a special one with custom art recognizing the hard work of their construction team and prime contractor, JGC Fluor (JFJV) and their subcontractor, Soletanche Bachy Canada (SBC).

OCTOBER 21, 2021

New OGC CEO Michelle Carr has been named the new CEO and commissioner of the BC Oil and Gas Commission. The announcement comes following a four-month search after Paul Jeakins announced his retirement in April, the OGC said Sept. 21. Carr comes to the OGC from the provincial energy ministry, where she has worked as the assistant deputy minister of the LNG Canada Implementation Secretariat since October 2018. Carr also spent almost four years as assistant deputy minister and executive lead for the BC Environmental Assessment Office. “Michelle has a genuine and deep commitment to reconciliation, equity, diversity, and inclusion, and has provided strong leadership in addressing the impacts and benefits of resource development on the people, environment, and economy of northern British Columbia,” said Margie Parikh, Lead Director, Board of Directors, in a statement. “Her strong regulatory and engagement background coupled with experience in complex and changing operating environments

Michelle Carr position her well to oversee the Commission’s multifaceted mandate.” Carr holds a Master of Arts degree in Geography from the University of Victoria, as well as a Certificate in Advanced Leadership from the UBC Sauder School of Business Executive Program, the OGC said. “I am pleased to take on this role as the newest Commissioner and look forward to leading this dynamic organization as it delivers on its mandate with a focus on public safety and environmental protection for the benefit of British Columbians,” Carr said in a statement.

WANTED!

neWspaper Carriers Deliver Wednesdays or Thursdays

Deliver papers door-to-door locally in Dawson Creek! Join our Stellar Team!

• Direct deposit • Local routes • No collecting • Suitable for all ages

8 The Pipeline News North

OCTOBER 21, 2021

Enbridge’s announcement of the substantial completion of the Line 3 replacement project to be operational The Canadian Association of Petroleum Producers is pleased with Enbridge’s announcement of the substantial completion of the Line 3 Replacement Project that will be operational from October 1st. This vital piece of infrastructure will improve access to oil markets in North America, while strengthening Canada’s position as a responsible, affordable and reliable energy provider.

Join the CAOEC on November 3 for a Breakfast Speaker Series with Brian Davison, Q.C. The topic is CAODC Master Daywork & Master Well Services Contracts. Mr. Davison is one of the principal architects of the CA ODC Master Contract. For 15 years, has advised CAOEC on matters relating to it. Mr. Davison will present on the nuances of the CAODC Master Contract and legal precedents specific to it. For more details see www.caodc.ca

The Enbridge mainline, of which Line 3 is a major backbone component, has served as the principal route for exports of Canadian crude oil to U.S. markets for decades. The United States is a close and important trading partner, and the largest customer for Canadian energy exports. This relationship and working together on energy issues has driven economic growth, innovation and

raised standards of living for the people of both countries. According to the International Energy Agency, global demand for oil is set to reach record levels and will be needed for decades to come. Increased transportation capacity in all directions is needed to reach more Canadians and offer access to new markets. We live in growing world that will need more energy. Canadian energy is a better

source for the world and better for Canadians. Our energy industry is a recognized leader in environmental innovation and emissions reduction while being one of the largest employers and economic partners of Indigenous entrepreneurs in the country. -Tim McMillan, President and CEO, CAPP

The Pipeline News North

From the past Right - Royalite Oil Company workers on drilling floor of a rotary rig at Turner Valley, Alberta in 1934. L-R: Bert Goodison, Bill Lockhart, Chappin Clarkson, Arnold Strahote, I. Bartners and Dick Knight.

Right A caterpillar tractor is moving the rig in 1930. Below - Two employees involved in the work take a break.

OCTOBER 21, 2021

The Pipeline News North 10

OCTOBER 21, 2021

B.C. may deep-six deep well credits for oil and gas Nelson Bennett nbennett@biv.com Royalties and tax credits for B.C.’s oil and gas industry are outdated, piecemeal, complex, and don’t provide the societal benefits that they should, according to an independent assessment by two public policy and energy experts commissioned by the B.C. government to review its oil and gas royalty structure. But rather than try to tinker with the system – simply eliminating B.C.’s controversial deep well credit, for example – the assessment suggests a complete overhaul of the way the natural gas industry is taxed, and points to Alberta’s revised system as an example worth considering. The assessment, released today, was conducted by two noted academics – Nancy Olewiler, a public policy professor at Simon Fraser University, and Jennifer Winter, associate professor of economics and scientific director of the energy and environmental policy research at the University of Calgary. Their assessment will form the foundation for a public review of B.C.’s royalty and tax structure oil and gas that B.C.’s ministry of Energy, Mines and Low Carbon Innovation has launched. “The review process we are launching will allow the public to have their say on a new, modernized royalty system that meets our goals for sustainable economic development,” said Energy Minister Bruce Ralston. Anti-fossil fuel activists and the

Green Party have long criticized B.C.’s “fracked gas” for being subsidized by the B.C. government. B.C.’s deep well credits have been particularly singled out, and have been blamed for the declines in revenue that the government has received from natural gas producers over the last decade. In fact, declining natural gas royalties have largely been the result of declining natural gas prices – which only recently have begun to soar – although the assessment does suggest that the B.C. government is not getting full value from its royalty structure. Olewiler’s and Winter’s assessment concludes B.C.’s royalty system for oil and gas is out-of-date and may be incentivizing “lowervalue wells” that are not maximizing value, either for the companies or the government. “It may incentivize companies to drill to access the credit rather than to minimize costs and maximize revenue,” the assessment says. The deep well credit program was implemented in 2003, when horizontal drilling and hydraulic fracturing were still relatively new alternatives to conventional drilling. They were intended to offset costs of drilling and completion for wells that were very deep and, therefore, more capital intensive. “As of March 2021, the accumulated deep well credits total $7.325 billion,” the assessment finds. “Of that, $3.56 billion have been drawn down.” In other words, only half the credits approved have been claimed. The credits reduce the royalties the B.C. government

PREPROST PHOTO

A drilling rig in the Gundy region, Oct. 12, 2019 receives by 3% to 6%. Whereas deep horizontal drilling was an “unconventional” approach to natural gas extraction when the credits were introduced, it is now a standard approach in B.C., which raises the question of whether the incentives are even needed any longer. But deep well credits aren’t the only tax incentives offered, and the assessment suggests the whole system could benefit from a doover. “All of the royalty deduction programs are out of date,” the assessment notes. “They were introduced at a time with more favourable product prices, and do not take into account changing extraction technology and shift to natural gas liquids in the product mix and investment profile.” “The system is characterized by piecemeal changes over time with programs that have led to compounding effects that substantially reduced royalty payments as a share of net value of the resource.”

The most productive region in B.C. for oil and gas is the Montney formation, which straddles the B.C.Alberta border. The assessment suggests that, as part of a review of B.C.’s system, it could take a page from Albert’as playbook. “Alberta undertook a major reform of its oil and gas royalty system, phasing in its new system in 2017,” the assessment notes. “Given the Montney’s shale deposits straddle the BC-Alberta border, moving to a system such as Alberta’s would better align production, reduce any incentive to shift production from one province to the other to minimize royalty payments, and overall promote a more efficient and equitable system.” The Olewiler-Winter assessment will form the basis of a discussion paper that Ralston’s ministry plans to release in November, which will then be opened to a public consultation process. The government plans to release the findings of its review in February.

$65 million for land restoration The provincial government has announced $65 million in funding to support land and cultural restoration in northeast B.C., following the B.C. Supreme Court ruling that the province breached its treaty obligations to the Blueberry River First Nation. The province also said that a majority of forestry and oil and gas projects permitted and authorized before the court’s decision in June will still proceed. Indigenous Relations and Reconciliation Minister Murray Rankin and Blueberry River Chief Marvin Yahey made the joint announcement as part of an initial agreement following the court’s ruling. “It’s the first step and it’s an important step,” Rankin said. “It’s something that will support what we call healing the land. It helps provide stability and certainty for permit holders in Blueberry territory and in the immediate term provides that certain that industry has spoken to me about.” As part of the agreement, the province says it

will establish a $35-million fund for Blueberry to undertake activities including: -land, road and seismic restoration; -river, stream, and wetland restoration; -habitat connectivity; -native seed and nursery projects; and -training for restoration activities. Another $30 million will be allocated to support Blueberry River for g: -work on cultural areas, traplines, cabins and trails; -educational activities and materials, including teaching traditional skills and language; -expanding Blueberry River resources and capacity for land management; and -restoring the health of wildlife through wildlife management, habitat enhancement including prescribed burning, and research. Chief Yahey said he was pleased to see the province take the Supreme Court ruling seriously, which he said sets a new path for Blueberry’s

future. “Today’s initial arrangement provides stability. It allows us to get to work straight away,” Yahey said. “This includes our members and everyone living and working on our territory.” Rankin said 195 forestry and oil and gas projects will still be able to move forward under the agreement, or 90% of the permits that were already authorized before the court’s decision, he said. Twenty authorizations in areas of high cultural importance have been deferred, Rankin said. “Our next step is to develop an interim approach for decision making for new applications that will come forward, one that can be in place before the end of this year, and that meets our commitment to recognize and respect Blueberry Rivers’ treaty rights,” Rankin said. “That will set the stage to work together collaboratively with other Treaty 8 nations, with industry, with local governments on long term solutions,” he said.

The Pipeline News North OCTOBER 21, 2021

NorthRiver expansions planned Tom Summer tsummer@ahnfsj.ca NorthRiver Midstream appeared at the Peace River Regional District’s Oct. 7 board meeting, providing an overview on four expansion projects in the North and South Peace. The Aitken Creek, McMahon, Tupper West, and the Northeast BC connector are all slated for additional development. Supporting the community is a priority, says Land Manager Rod Locke, who presented the updates alongside Director of Operations Andrew Benjamin, noting they always aim to hire local and indigenous contractors. “Day to day we’re actively evaluating our opportunities to transform NorthRiver into an energy company of the future,” said Locke, noting while the company is new, their assets have been around for 65 years. At Aitken Creek, the company has proposed six new pipelines, with segments shipping natural gas liquids, condensate, and sour raw gas. “It’s really about maximizing the value of our existing footprint. It’s up near the Wonowon area, and this project will interconnect them to provide more value to us and our customers that

are connected,” said Benjamin, noting the goal to modernize their facilities. The project is already underway and slated to finish by July 2022, employing 55 people at the facility, and 60 on the pipeline when construction begins in February. A sequestration project has also begun in McMahon, but is in the early stages, with decisions yet to be made. Lowering emissions and improving air quality in Taylor and the surrounding areas is a key focus of the project, he added. Once completed, 122,000 tonnes of CO2 and 1,500 tonnes of SO2 would be captured, reducing sour gas flaring and CO2 venting. The Northeast BC Connector also remains in the works, with 215 km of pipeline stretching from

Wonowon to Gordondale in Alberta, connecting oil and gas sites across the Peace. “For the most part this project parallels existing infrastructure, so right around 90 per cent is paralleling existing right of ways,” said Locke, noting the project is pending regulatory approval, with construction expected to begin in 2023. $15 million has been directly invested in the connector for operating expenses, with 65 permanent jobs to be created. A third site is planned for Tupper West operations, dubbed Tupper West III, located south of Arras, with 25 km of pipeline added to service sweet sales gas.

PIPELINE

—Local Journalism Initiative

SERVING THE OIL & GAS INDUSTRY IN NORTHERN B.C.

NEWS NORTH

2021 SCHEDULE PUBLICATION DATE

BOOKING DEADLINE

AD COPY DEADLINE

21 JANUARY 2021

15 JANUARY 2021

18 FEBRUARY 2021

11 FEBRUARY 2021

18 MARCH 2021

12 MARCH 2021

15 APRIL 2021

9 APRIL 2021

20 MAY 2021

14 MAY 2021

17 JUNE 2021

11 JUNE 2021

15 JULY 2021

9 JULY 2021

19 AUGUST 2021

13 AUGUST 2021

16 SEPTEMBER 2021

10 SEPTEMBER 2021

21 OCTOBER 2021

15 OCTOBER 2021

18 NOVEMBER 2021

12 NOVEMBER 2021

16 DECEMBER 2021

10 DECEMBER 2021

ADVERTISING RATES

(colour included)

Full Page: Half Page: Quarter Page: Front Banner: Pipeliner:

$1000 $700 $400 $600 $100

E ELIN PEIP ORTH WS N

Legal/Career Rate: $2.82/Line

Contact Us: Ryan Wallace 250-785-5631 rwallace@ahnfsj.ca Nicole Palfy 250-782-4888 npalfy@dcdn.ca PRINT & ONLINE EXPOSURE

ER 2020 NOVEMB • DIST: 11,600

VOL. 12

11 • ISSUE

rth.ca

linenewsno

pipe

Servin

d Gas Oil an g the

o ry in N Indust

FREE

CAPP | PAG

ert nd Alb B.C. a rthern

nounces CAODC an of its e the releas g forecast in 2021 drill release of its 2021

ces the announ CAODC . Forecast increase Drilling 3,771 – an ls drilled: 2021 wel Projected 0 (3,296*) 202 – an of 475 from s: 33,938 rating day *) 2021 ope 0 (29,664 Projected from 202 4 4,27 of (505 increase e by 27 decreas to d t expecte ling rigs) Rig flee dril rigs to 478 ease of drilling 50, an incr d = 18,5 expecte Total jobs r year ove r 2,349 yea + actual t levels *forecas 0 activity along start, 202 end of Q1 ID-19 promising After a halt at the COV a crashing nomy due to the s in came to oric low global eco stry faced hist in drilling s with the indu low The oric ic. e hist tractors pandem ling con which drov DC dril oil pricing, with CAO ve rigs in June. activity, 17 acti it only record, averaging st year on nturn in the wor ed dow not only bers prolong 2020 was DC mem n of the cing extensio stry. CAO was an her redu gas indu y oil and in by furt ’s tedl aga ada den yet m Can rece ed the stor ing by on unp . However, weather and gett ice activityt numbers headcount and well serv rig flee ling the year. registered low dril ciation’s stable throughout the Asso ly tive rela d inside! remaine ed on the Continu

LOCATIONS THAT SUIT YOUR BUSINESS NEEDS

TURE A E F 0 HLY MONT MUM 17,50 INI M H T TION WI U B I R DIST Artistic

n rig. | Brow

mmer? es this Suarly. E Relief Valv Servicingok Your Turnarouertand&sB.C. Bo Alb ges tified in in All Ran m’s is Cer • Pim PSV’s of Valves. ck Taylor and • We Sto Supply All Makes Tracking and Can puterised ely Com • Complet System. PSI. g to 5000 Labellin Up of s.ca ability www.pimm nde Prairie • Test Cap Fort St.

John

Gra

(250) 787-08

(780) 513-28

• Distributed to the community in general through these ﬁne publications, Alaska Highway News, Dawson Creek Mirror. • Distribution by mail and direct drop-off to Oil & Gas companies,and related businesses and organizations, in the following communities: BRITISH COLUMBIA – Arras, Baldonnel, Cecil Lake, Charlie Lake, CHETWYND, Clayhurst, DAWSON CREEK, Farmington, FORT ST. JOHN, Goodlow, Groundbirch, HUDSON HOPE, Moberley Lake, Pink Mountain, Pouce Coupe, Progress, Rolla, Rose Prairie, Taylor, Tomslake, and Wonowon.

The Pipeline News North 12

OCTOBER 21, 2021

JOIN OUR YESS PROGRAM