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Pipeline News May 2010
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PIPELINE NEWSSaskatchewan’s Petroleum Monthly
May 2010 FREE Volume 2 Issue 12
Focus Edition:Focus Edition:Heavy EquipmentHeavy Equipment
Mid-sized dozers are commonly in de-mand by Saskatchewan’s oilpatch, ac-cording to SMS Equipment, Saskatch-ewan’s Komatsu dealer. See story on Page C14.
Photo by Brian Zinchuk
PIPELINE NEWS May 2010A2
NewsNotes
Briefs courtesy Nickle’s Daily Oil Bulletin
NuLoch Sanish Well averaged 205 bpd
NuLoch Resources Inc. announced on Mar.
29 that one of its horizontal Sanish oilwells (one
net) in Tableland, Sask., averaged 205 bbls of oil
per day over 30 days (including 19 continuous
days) since commencement on Feb. 2. Water cuts
are averaging 48 per cent.
Th is well has been followed up with four ad-
ditional Sanish locations (2.8 net at 70 per cent
working interest), the fi rst of which has recently
been fracture stimulated and was in the early
stage of fl ow-back. Th e second well was scheduled
for a frac in early April week. Th e third and fourth
wells were drilled.
NuLoch has licensed, with plans to drill, an
additional three (2.1 net) Sanish wells in Sas-
katchewan during the second quarter of 2010.
Th e company also has a well (0.7 net) cased
and awaiting completion in the Middle Bakken at
Taylorton, six miles east of the Sanish Tableland
well.
Painted Pony plans another 20 net
wellsPainted Pony Petroleum Ltd. plans to conduct
an active drilling program in 2010, with about 20
net wells planned for the rest of the year in Sas-
katchewan, primarily targeting oil in the Bakken
formation.
Painted Pony Petroleum Ltd. earned a $1.95
million profi t in the fourth quarter and increased
production through drilling and third quarter ac-
quisitions.
All of Painted Pony's light oil sales come from
Saskatchewan while sales of gas, condensate and
natural gas liquids are primarily from northeast
B.C.
Sales volumes in 2009 were weighted 58 per
cent towards oil, refl ecting the focus of the year's
capital program towards oil, as opposed to the 51
per cent oil weighting in 2008.
By Geoff LeePipeline News
Regina – Cha-Ching! Th e April sale of Crown
petroleum and natural gas rights registered a whop-
ping $190.1 million in revenue for Saskatchewan,
the second highest total for an April land sales – but
don’t expect this to become a trend.
“We don't expect the interest to be as high as
this in upcoming land sales, but with a rebounding
industry and the other spin-off s from its exploration
work, we are looking at a very exciting year ahead
for our oilpatch,” Energy and Resources Minister Bill
Boyd said.
Th e April sale blew away the total for the whole
year of 2009, which came in at $118.2 million.
Of the $190 million total for April, $139 million
was generated from sales in the red hot Weyburn-
Estevan area.
Th e Kindersley-Kerrobert area was next at $25
million, followed by the Swift Current area at $23.2
million and the Lloydminster area at $2.9 million.
“We’re very encouraged by these results,” said
Boyd. “It demonstrates increased interest and activity
in our oil patch in 2010, after a somewhat slower year
in 2009.”
April’s sale included 26 petroleum and natural
gas exploration licences that sold for $142.4 million
and 286 lease parcels that attracted $47.7 million in
bonus bids.
Th e highest price for a single parcel was $23.5
million, paid by Scott Land and Lease Ltd. for a
4,210-hectare exploration licence near Oungre in
southeast Saskatchewan.
Th e highest price on a per-hectare basis was $15,600.
Canadian Coastal Resources Ltd. bid approximately
$1 million for a 65-hectare lease parcel near Redvers.
Boyd noted the average price of $1,629 per hectare
for the entire sale is considerably more than the av-
erage per hectare prices recorded in the most recent
land sales in Alberta ($974) and British Columbia
($716).
Th e next sale of Crown petroleum and natural
gas dispositions will be held on June 7. Th e following
is an area summary with all numbers rounded up.
Weyburn-Estevan sale ($139 million)Th e total bonus received in the area was $139
million at an average price of $2,042 per hectare. Th is
compares to $26 million at an average of $618.45 per
hectare at the last sale.
Th e top purchaser of acreage in this area was
Scott Land and Lease Ltd., who spent $62 million to
acquire 10 lease parcels and four licences.
Th e top price paid for a single lease in this area
was $1 million paid by Canadian Coastal Resources
Ltd. for a 259 hectare parcel situated 1-km east of
the Redvers Tilston Beds Pool, 2-km northeast of the
town of Redvers.
Th e highest price paid for a single licence in this
area was $24 million paid by Scott Land and Lease
Ltd. for a 4,210 hectare block off ering predominantly
deeper rights and located partially within the Oungre
Ratcliff e Beds Pool, 53-km west of Estevan.
Th e highest dollar per hectare in this area was
received from Canadian Coastal Resources Ltd, who
paid $15,600 per hectare for a 64.75 hectare parcel
located 2-km west of the Bellegarde Tilston Beds
Pool, 5 km southeast of Redvers.
Kindersley-Kerrobert sale ($25 million)Th e total revenue received in the area was $25
million at an average price of $1,945 per hectare. Th is
compares to $4 million, at an average of $207 per
hectare at the last sale.
Th e top purchaser of acreage in this area was
Scott Land and Lease Ltd. who spent $7 million to
acquire nine lease parcels.
Th e highest price paid for a single lease in this
area was $4 million paid by Windfall Resources Ltd.
for a 649 hectare parcel situated partially within the
Avon Hill Viking Sand (Oil) Pool, 6-km northeast
of Kindersley. Th is is the highest dollar per hectare in
this area at $6,104 per hectare.
Swift Current sale ($23 million)Th e total revenue received in the area was $23
million at an average of $719.42 per hectare
Th is compares to $4 million at an average of $275
per hectare at the last sale.
Th e top purchaser of acreage in this area was
Scott Land and Lease Ltd., who dished out $13 mil-
lion to acquire one lease parcel and three licences.
Th e highest price paid for a single lease in this
area was $558,862 paid by Canadian Coastal Re-
sources Ltd. for a 259 hectare parcel situated 50-km
southeast of the Lacadena Milk River Gas Pool, 24-
km northwest of Herbert.
Th e top price paid for a single licence in this area
was $12 million paid by Scott Land and Lease Ltd.
for a 2,851 hectare block situated 2-km south of the
Rapdan South Upper Shaunavon (Oil) Pool, 2-km
southwest of Frontier. Th is is the highest dollar per
hectare in this area at $4,321 per hectare.
Lloydminster sale ($2.9 million)Th e total revenue received in the area was $2.9
million, at an average price of $834 per hectare. Th is
compares to $5.6 million at $272 per hectare at the
previous sale.
Th e top purchaser of acreage in this area was
Prairie Land and Investment Services Ltd., who
spent $1.1 million, to acquire four lease parcels.
Th e highest price paid for a single lease in this
area was $402,928 by Prairie Land and Investment
Services Ltd. for a 259 per hectare parcel situated
9-km northeast of the Carruthers Cummings Sand
(Oil) Pool, 19-km southeast of Maidstone.
Th e highest dollar per hectare in this area was re-
ceived from Mineral Consulting Services Ltd., who
paid $6,523 per hectare for a 16 hectare parcel lo-
cated within the Edam West Mannville Sands (Oil)
Pools, 27-km northeast of Maidstone.
Land sale not sustainable
PIPELINE NEWS May 2010 A3
NewsNotes
Briefs courtesy Nickle’s Daily Oil Bulletin
Sask. Geological Survey Open House
Th e 41st annual Saskatchewan Geologi-
cal Survey Open House will be held at the Delta
Bessborough Hotel in Saskatoon, Nov. 29 to Dec.
1, 2010. Last year, over 700 delegates, including
those from Brazil, China, Korea, Japan and United
States registered for the conference. Th is is the pre-
miere event to learn about recent developments in
geology and mineral exploration in Saskatchewan.
Current mineral exploration activity will also be
profi led. Registration is free, and will commence in
September, 2010. More information can be found
at www.er.gov.sk.ca
Stealth signs joint venture deal
Stealth Ventures Ltd. says it has signed a joint
venture with MOI Resources Ltd., a Saskatche-
wan based, private oil and gas company looking to
expand into the Colorado group of shales resource
play.
"We're excited to be entering into a partner-
ship with Stealth and see a lot of potential in the
Colorado. It's a good time to be entering into the
gas markets as we probably wouldn't have had this
chance if gas was $10 per mcf," said MOI Re-
sources chief executive offi cer Kerwin Mondor in
a news release.
Th e Cretaceous Colorado group in the West-
ern Canadian Sedimentary Basin is represented
almost continuously in a 1,000 kilometres east-
west profi le. Of the over 250,000 well bores that
penetrate the Colorado, most have been drilled to
target deeper horizons.
Derek Krivak, president and CEO of Stealth,
said there is more potential than his company
would ever be able to manage on its own and "so
we're excited to be expanding our eff orts with
MOI."
Lionel Kambeitz grew up in Sedley, not terribly far from the Weyburn oil elds that are now leading the world in carbon dioxide storage. Now his Regina-based company is poised to commercialize the carbon capture technology developed at the University of Regina and sell it around the world.
Years of CCS research ready to be implemented
By Brian ZinchukPipeline News
Regina –Th e conventional thinking behind car-
bon capture and storage is to put a great big plant
on the tail end of a large coal-fi red power plant, then
build a large pipeline to some distant oilfi eld in order
to pump the highly pressurized greenhouse gas un-
derground. While that is still the big prize of carbon
capture, what if you could do it on a small scale, right
at the wellhead?
HTC Purenergy of Regina says it’s ready to
do just that, with a modular carbon capture system
meant for steam-assisted gravity drainage (SAGD)
operations. But they are also doing it in the large
scale, too.
HTC Purenergy (not to be confused with Ko-
rean smartphone maker HTC) is the sole licensee of
the carbon capture technologies developed over the
past 20 years at the University of Regina’s Interna-
tional Test Centre for CO2 Capture (ITC). Malcolm
Wilson, PhD, and director of the U of R Offi ce of
Energy and Environment, which includes the ITC,
has said over the past year that the technology was
ready to take the big leap into commercialization.
HTC Purenergy is ready to do just that.
Th e company has two major thrusts – the large
scale carbon dioxide capture associated with power
plants, and a smaller, modular system, that can handle
up to 1,000 tonnes of CO2 per day (tpd).
“At 1000 tpd, or larger it’s diffi cult for it to be
modular,” explained Lionel Kambeitz, CEO of HTC
Purenergy.
Kambeitz is the founder of the publicly-traded
company. Th e university owns some shares, and
Doosan Power Systems has about 15 percent. Kam-
beitz, the founders and managers own about a third.
“About 30 of our founding shareholders are from the
Weyburn area,” he said.
Th eir offi ces are within a stone’s throw of the In-
ternational Test Centre for CO2 Capture, within the
Innovation Place research park.
Major ND projectIn December, 2009, it was announced that HTC
Purenergy would be providing the technology for the
sister plant to the coal gasifi cation plant that already
provides CO2 to the premier carbon capture and
storage projects at Weyburn and Midale. Bismarck,
North Dakota-based Basin Electric Power Coopera-
tive owns the Dakota Gasifi cation Company (Dakota
Gas), which is at the other end of the pipeline from
the Weyburn-Midale Project. Th e new project will be
at the nearby Antelope Valley plant, and will capture
3,000 tonnes of CO2 per day.
Put in perspective, that’s roughly the size of the
SaskPower Boundary Dam 3 project.
Page A6
FULL FLUSHBY & PRESSURE SERVICES
BODY VACS,STEAMER/PRESSURE WASHER SERVICES
SALTWATER DISPOSAL PUMPING SERVICES
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24 HR Dispatch: 780-205-9001Mike #: 403*11*29001
Fax: 306-397-2697Box 238 Edam, SK
24 HOUR SERVICE24 HOUR SERVICE
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Mission Statement:Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people.
Pipeline NewsPublisher: Brant Kersey - Estevan
Ph: 1.306.634.2654
Fax: 1.306.634.3934
Editorial Contributions: SOUTHEAST
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SOUTHWEST
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• Lloydminster
Daniela Tobler 1.780.875.6685
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• Virden - Gail Longmuir 1.204.748.3931
• Estevan - Jan Boyle 1.306.634.2654
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gatherers.
PIPELINE NEWS May 2010A4 EDITORIAL
Editorial
Th ere’s a spirit of optimism in the oilpatch that’s
in the air this spring. It was noticeable at the Estevan
OTS Bonspiel at the end of March, the big southeast
Saskatchewan social event that draws winter season to
a close. Moods were much more upbeat than they were
at the last Estevan OTS bonspiel, right around the
time oil was bottoming out and oilmen were looking at
a gloomy summer.
Th e optimism has become more noticeable as the
weeks go on. As soon as the road bans come off , watch
out! Saskatchewan’s going to be going great guns.
It probably has a lot to do with the whiff of oil
priced over $80, as it has been for several weeks this
spring.
Th ere’s nothing like a strong Crown land sale to
get people in the mood. Th e April 12 sale was a doozy.
At $190.1 million, it brought in substantially more
than the entire calendar year of 2009, which totalled
$118.2 million. It’s the second largest April land sale to
date. Th e bonus from that sale alone will go a long way
towards covering off the recent budget’s rainy-day fund
withdrawal.
It also looks like the increased seismic activity this
past winter we reported on has borne fruit.
Th e government isn’t expecting such strong sales
later in the year. Th ey might be in for a surprise. Th en
again, maybe they’re just being cautious, after the pot-
ash windfall or lack-thereof fi asco.
Early in 2010, one business told Pipeline News that
they expected 2010 to be bigger for them than 2008.
Optimism in the windSince then, we’ve thrown that out as a challenge, ask-
ing a number of businesses in the southeast in particular
if they felt that would be the case for their operations.
Most of the responses have been yes, they expect it will
be. Very few have responded that they weren’t expecting
a strong year. Since 2008 was the banner year for most
of these businesses, spread across several sectors of the
oilpatch, that’s the type of optimism economists swoon
over. Many of these companies have mentioned they
will likely be looking for additional staff in the coming
months, if they can fi nd them.
Th at could be a challenge. Saskatchewan’s drilling
rig count kept climbing from the beginning of the year,
reaching into the low 90s before road bans came into
eff ect. If drilling continues on that path, it will outstrip
the 2008 pace, and blow away 2009. We’ve heard of idled
rigs being reactivated this season.
Th e Williston Basin Conference, which alternates
between Saskatchewan and North Dakota each year, is
expected to be a big one this year, when it is held in Bis-
marck, ND, in early May. By April 20, the registration
was already in excess of 1,900, far outstripping previous
records. While a large part of that will be the tremen-
dous growth in the North Dakota oilpatch, some of it
will also be a refl ection of what’s going on here.
Saskatchewan’s oilpatch has two rounds each year.
Th e fi rst round is winter work, followed by a respite in
the corner known as spring breakup. When the bell rings
for round two, summer drilling, it’s going to ring loudly.
Fighters get ready, and come out swinging.
PIPELINE NEWS May 2010 A5
PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR ARE WELCOME.
Email to: [email protected]
Brian Zinchuk
From the top of
the pile
Opinion
Geoff Lee
Lee Side of Lloyd
Th ose who smoke or drink alcohol were prob-
ably not in the mood to celebrate Saskatchewan’s
balanced spring budget that contained some good
news for the oilpatch.
While the budget hiked so-called sin taxes on
smoking and drinking, a strong measure of the $9.95
billion in the budget forecast is based on a WTI
(West Texas Intermediate) US$77.50 per barrel that
will help generate $1.1 billion in oil royalties.
Only $35.1 million will enter the coff ers from
increase taxes on smokes and booze, but those af-
fected in the oilpatch will presumably be healthi-
er and able to produce more oil – so it’s all good
news!
Th e extra tax revenues also allow the govern-
ment to declare a tiny surplus of $20 million in the
General Revenue Fund.
On the cost reduction side of the equation, gov-
ernment expense levels are reduced by 1.2 per cent,
while protecting important programs and services in
health, social services and education.
Th e budget is expected to generate 4,100 new
jobs in the budget year in a province that grew by
15,760 from Jan. 1 2009 to Jan. 1 2010.
Th e provincial population is now 1,038,018 and
counting according to the latest fi gures from Statis-
tics Canada on Mar. 25.
Th e population gain and the balanced budget
prompted Finance Minister Rod Gantefoer to wax
poetic on budget day about Saskatchewan’s positive
economy.
“Th e Saskatchewan economy remained strong
through the worst of the global recession," Gante-
foer said.
“And with the recovery now well underway,
there is plenty of reason for optimism.
“All the independent forecasters say Saskatch-
ewan will be one of the economic leaders in Canada
in 2010 and 2011. Saskatchewan’s economy is strong,
and this budget will give our province the solid fi scal
foundation it needs to stay strong.”
Another good sign for the energy sector is an
investment commitment of $16.6 million for the
Saskatchewan Research Council to continue its cur-
rent research and development projects.
Th ese projects include everything from en-
hanced oil recovery and carbon sequestration to
biofuels and oilsands science and technology.
Th e budget has also earmarked $3 million from
by Crown Investment Corporation for First Nations’
economic development initiatives.
No doubt that’s in recognition that more oil
and gas exploration development is taking place on
First Nation’s territory creating new investment and
training needs.
With road bans still fresh in our minds, the gov-
ernment will make the hauling of oil goods more ef-
fi cient and safer with $250 million in new highway
construction and repaving this year.
Th e budget includes $86 million to commence
or complete 470-km of work under the rural high-
way strategy.
Another $76 million will be spent to commence
or complete 600-km of resurfacing across the pro-
vincial highway system as well and $36 million to
repair or replace bridges and culverts.
Th e budget news however comes with this ca-
veat: If you choose to celebrate with a smoke and
drink, it will cost you – in more ways than one.
Somebody has to pay for the $126.9 million
funding increases to improve delivery of health care
services to Saskatchewan people.
Budget no cause for worries or parties
It didn’t get a lot of fanfare, but Canada and the
United States signed onto a fuel effi ciency agreement
this spring that will have a profound eff ect on our
lives, as well as the oilpatch.
By 2016, new cars and trucks will be required to
get 35.5 miles per gallon (15 km/L), up from current
rules mandating 25 mpg, a 42 per cent increase.
At the same time, carbon dioxide emissions per
mile must fall to 250 grams per mile, down from the
2012 regulation of 295 grams per mile. Since Canada
and the U.S. share an integrated auto industry, the
standards will be the same on both sides of the bor-
der.
If indeed these rules do hold and aren’t whittled
away by Congress, the vehicles we are going to be
looking at on the lots are going to be a lot diff er-
ent than the ones in our driveways. Th ink more Geo
Metro-types and fewer Ford Expeditions.
Th ey’re going to be smaller, lighter, likely with
less horsepower than what we’re used to.
Ah, yes, horsepower. We all want more. It’s a tes-
tosterone thing. “More power!” as Tim Allen would
say.
Th ere’s been a continual rise in horsepower for
decades, with each new model of vehicle typically
beefi er than the one before. My 2004 Buick Rainier
SUV has 265 horses under its hood, derived from an
inline-six. Two decades ago, that might have been a
decent rating for a one-tonne, and unheard of in an
SUV. Th e Rainier also sucks gas like a pickup, if not
a one-tonne. While I’ve got plenty of power to pass,
I can’t pass the gas station after 400-km, or I’ll be
walking. I usually get around 20 mpg, or 7.1 km/L
on the highway. I personally wouldn’t mind a more
effi cient vehicle, but one with the same capabilities.
Engineering-wise, improvement in performance
generally give you one of two things, more power, or
better effi ciency, rarely both. Th e market has almost
always trended more to the power side of the equa-
tion. Th at’s going to change.
While fuel effi ciency ratings have climbed, to see
such a dramatic change in such a short time is going
to mean compromises. Yes, engines are much more
effi cient today than yesteryear, but to make those
mileage gains, horsepower is going have to give way.
If, 10 years down the road, the bulk of the North
American fl eet is indeed 42 per cent more effi cient, it
means a drop in demand for oil, so much so that the
American refi ners are already squawking. Th at might
not be so bad in the long run, because peak oil theo-
rists might not be too far off the mark when it comes
to maximizing production in the near future. We
might just need those fuel effi ciencies to compensate
for the lack of ability to ever-increase oil production.
We will literally have to do more with less, driving
more effi cient vehicles because we won’t be able to get
as much oil as we used to.
It also has the eff ect of reducing emissions, not
just of greenhouse gases, but of all other air pollut-
ants. Higher effi ciency, as a general principle, is a
common good.
Th e question is, why has it taken so long to get
to this place? Why didn’t fuel economy standards rise
gradually over the years, instead of the big shock to
the system now?
Th e answer lies in an ineff ective Congress, too
hamstrung to actually do anything for decades. Now,
everyone has to play catch-up.
For the next several years, expect to see fl eet
purchases of pickup trucks follow the pattern of big
rigs. Each time the emissions requirements move up
a notch, there will be high demand for the previous
year’s model. No one wants to buy a more anaemic
truck if they can help it.
A decade down the road, we may see the power
levels return to their current heights, but with the im-
proved fuel effi ciency. Until then, expect the power
of engines to plateau or even drop over the next six
years.
So if you are a Tim Allen-type of truck buyer, go
shopping now, because your “Arr arr arrr” choices are
going to be limited.
Brian Zinchuk is editor of Pipeline News. He can be reached at [email protected].
More power days are numbered, at least for now
PIPELINE NEWS May 2010A6
Modular CCS system to improve SAGD Page A3
Th e eventual aim of the project is to use the captured CO2 for enhanced oil
recovery close to the power plant with the CO2 subsequently stored underground,
according to Basin Electric. Th e CO2 will be used in the Dakotas, and possibly
Canada as well, Kambeitz said.
Using U of R research, HTC Purenergy may be providing the brains for the
project, but the brawn comes from power plant heavyweight Doosan Power Sys-
tems, HTC’s partner, one of the biggest power plant builders in the world. HTC
might be small so far, but they rated high enough to be mentioned in the fourth
paragraph of a Doosan corporate booklet talking about multi-billion dollar coal,
wind, combined cycle, nuclear and water plant projects worldwide. Th e booklet
states, “By making strategic
investments in and licensing
agreement with HTC Puren-
ergy, a leading Canadian CO2
management company, we
are now at the forefront of
carbon capture and storage
(CCS) technologies, which
will enable the signifi cant
reduction of the CO2 emis-
sions from existing and newly
built power plants.”
“Our business model for
projects over 3000 tpd is to
go in with a big company like
Doosan,” Kambeitz said. “We
say here’s the technology, and
here’s our partner who will
construct it and integrate it.
“When it comes to big
projects, you need companies
with billion dollar balance
sheets.”
Doosan has a strong pres-
ence in the UK, and last year
HTC Purenergy and the U
of R’s ITC spent six months
training Doosan representatives on the technology, up to 18 at a time, so that
they can now promote it the world over. HTC and Doosan joined CO2 forces in
late 2008.
Modular CO2 captureHowever, you don’t need to be the size of a multi-billion dollar power plant to
capture CO2. HTC Purenergy is in the process of rolling out its modular design,
which can vary from 30 to 1,000 tonnes per day in capacity.
“Heavy oil plays a very important role in Saskatchewan’s oilpatch,” Kambeitz
said. “Th e experience in heavy oil and CO2 isn’t substantial,” he added, unlike
Cenovus’ and Apache’s experience with CO2 in light oil.
“Everybody thinks it’s a pressurization technique,” he said. Th e big factor
of CO2 in enhanced oil recovery is not so much pressurization, pushing the oil
out, but rather miscibility. Th e carbon dioxide acts like a solvent, allowing for
increased recovery factors in the reservoir.
He can’t say who, but the company is working with heavy oil producers in
Alberta and Saskatchewan to fi eld the technology. Th e idea is a huff -and-puff
cyclic injection, injecting carbon dioxide with steam.
Th ese small scale projects diff er greatly from the large ones, in that there is no
major pipeline involved. Th e carbon dioxide is captured from the exhaust of the
SAGD boilers, and then re-injected, at low pressure, along with the steam, into
the well right there on site “exactly where you need the CO2,” Kambeitz said.
By getting rid of the high pressure compression, you also eliminate one of the
biggest costs of large scale carbon dioxide capture projects. Compression can add
$5 to $6 a tonne to the cost, according to Kambeitz.
“It’s an amine scrubbing system done at atmospheric pressure.”
You also don’t need to pipeline it great distances, saving an additional $2-$4
per tonne.
A SAGD boiler system can produce 250 to 500 tonnes of CO2 per day, he
said. Th e systems are often incrementally increased in size. HTC Purenergy’s
CCS Capture System is designed to be modular as well, so that it can grow with
the SAGD plant, capturing CO2 from two or three boilers. Th at allows the CO
2
capture to be brought into the fi eld incrementally.
Th is can have a strong impact on oilsands development, including Saskatch-
ewan’s own future oilsands,
according to Kambeitz. Th e
federal government has
pointed out it wants carbon
capture and storage to be part
and parcel with new oilsands
development. Th e vast major-
ity, 80 per cent, of the Alberta
and Saskatchewan oilsands
are not mineable, Kambeitz
noted. In situ techniques like
SAGD are needed to develop
them.
It was one of the reasons
HTC Purenergy brought
in Jim Carter, PhD, former
CEO of Syncrude, and chair-
man of the Alberta Carbon
Capture and Storage Devel-
opment Council, to speak at
the University of Regina on
Mar. 31.
“We have an opportu-
nity in Saskatchewan to re-
ally learn all about the in situ
development in Alberta,” said
Kambeitz. “We think that
steam and CO2, in various application protocols, are going to be a formidable
combination.
“I’m going to call that early in situ technology. I think the THAIs, Toe-Heel
Air Injection, and other technologies, are the very promising next generation
technologies. But steam and CO2 for light bitumen and heavy oil is going to be
the initial core technology.”
Ready for sale“We announced our commercial initiatives for Alberta, in Calgary 30 days
ago,” he said on April 6. “I think we’re going to tackle all of the opportunities with
this modular system. Th e concept is modularize, whether its 1,000 tonnes a day,
or 200 tonnes a day – to create enough of these modular systems and use CO2 as
a feedstock.
“If you wanted to buy one of these, we can have it supplied for you by the end
of this year,” he said. Manufacturing would be done right in Regina, by a company
that HTC has a fi nancial interest in, Pinnacle Industrial Services. “A traditional
system, we can have up and running in six to nine months. We’ve literally just of-
fered it to the SAGD industry.”
On the web:www.htcenergy.com
www.doosanbabcock.comwww.basinelectric.comwww.uregina.ca/oee/
The International Test Centre for CO2 Capture’s research is now ready to by commercialized. The ITC, seen here, is on the University of Regina campus.
PIPELINE NEWS May 2010 A7
*** Correction ***Chicken scratch in note taking resulted in a misspelled name in the April
edition of Pipeline News.In the story entitled “A little something for every season,” profi ling Phil’s
Oilfi eld Contracting of Radville on page A24, Cara Th ompson was mistakenly
identifi ed as Lara Th ompson. Pipeline News regrets the error and any confusion
it may have caused.
By Brian Zinchuk
Regina – Capturing carbon dioxide
and using it for enhanced oil recovery
isn’t just smart for the environment, it
also has the potential of substantially
increasing recoverable oil reserves.
Th at’s according to former Syn-
crude Canada CEO Jim Carter, PhD,
who is heading up Alberta’s eff orts
on carbon dioxide capture and stor-
age. Carter is chairman of the Alberta
Carbon Capture and Storage Develop-
ment Council.
Th e Alberta Carbon Capture and
Storage Development Council is a
partnership between governments,
industry and scientifi c researchers.
Established by the government of Al-
berta, the council will work towards the
implementation of CCS to ensure that
Alberta’s energy resources are devel-
oped in an environmentally sustainable
way.
Carter was at the University of Re-
gina on Mar. 31 presenting two lectures
on carbon dioxide capture and storage.
He was invited by Regina-based HTC
Purenergy, the sole licensee of the Uni-
versity of Regina’s carbon capture tech-
nologies.
He spoke to about 100 graduate
and undergraduate students in his fi rst
lecture and over 125 business stake-
holders in his second.
Between lectures, Carter spoke
with Pipeline News about carbon diox-
ide sequestration, and its relevance to
enhanced oil recovery.
Pipeline News asked where Carter
sees Saskatchewan when it comes to
carbon capture, where does it need to
be, and what does it need to do?
“I think Saskatchewan’s already got
a really good head start on this in terms
of building a body of knowledge,” he
said, pointing out the experience in the
Weyburn fi eld, with about 14 million
tonnes of CO2 already safely under-
ground.
Carter also referenced Regina-
based HTC Purenergy’s eff orts to de-
velop modular carbon capture technol-
ogy. “Saskatchewan has certainly been
putting eff ort into this, as has Alberta,
over the last few years. It behoves us to
do that, as two provinces that produce
a lot of Canada’s energy.”
He added Alberta and Saskatch-
ewan have huge coal reserves, and want
to continue developing that resource as
a sustaining part of our economy.
Coal is the keyWhere do we need to go next?
“It’s a matter of continuing to fo-
cus on the research and development,
and to be involved in the large scale pi-
lots that are being pursued around the
world, really, to further enhance carbon
capture and storage,” says Carter.
“Staying on the leading edge of
emerging trends and being part of driv-
ing that is I think is very important.”
“I see that happening, in my visit
here today, to the University of Re-
gina. With Saskatchewan’s heavy oil
reserves, and with its opportunity in
the oilsands, it just makes sense. Pro-
vincial boundaries don’t recognize 100
million years of geology. Th e oilsands
do in fact fl ow into Saskatchewan and
there’s opportunity here to utilize that
technology.
“On a global scale, it’s all about
coal. How do we continue to use coal
to generate electricity, and do it in a
way that reduces the carbon footprint?
One of the obvious ways there is to
utilize carbon capture and storage with
coal-fi red power plants. It just makes
sense for Alberta and Saskatchewan
to do that, because we rely heavily on
coal-fi red power.
“Th e United States, for example,
produces 50 per cent of its power to-
day from coal-fi red electricity. Th at
probably will not shrink, if you look
at demand going forward, and could
perhaps even increase. Developing this
technology and making it so it can be
used around the world I think is an op-
portunity.”
Retrofi tsOn the Boundary Dam 3 and
Sask-Montana carbon capture projects,
Carter said they are the kind of things
the industry in a broader sense will be
interested in. “An awful lot of what
we’re going to be able to do in the next
few years, at least in North America, is
retrofi t technology on existing coal fi re
power plants. Making sure that we’ve
got the right processes that utilizes the
least amount of energy to capture the
carbon and store it, are going to be very
important.”
Processes that can be added to the
back end of existing plants will be very
important to the developed world, he
said, where power plants are quite old
but still have useful life. “Th ese retro-
fi t technologies have a lot of value in
those circumstances,” Carter said.
Dirty oil? Carter took issue with the idea of
‘dirty oil’ from the oilsands.
“Th e carbon footprint of a barrel
of oil from the oilsands is about 10 per
cent higher than the footprint of a bar-
rel from the average crude oil available
around the world,” he said.
Page A8
Carbon storage could boost reserves
”
PIPELINE NEWS May 2010A8
“ Page A7
“Th at’s down from about 15 per cent a few years
ago for a couple of reasons. One, the oilsands have
become more effi cient, in terms of energy use, and
reduced the energy per barrel by about 38 per cent
since 1990. Th e other factor is the oil available around
the world is getting heavier. A lot of people call that
‘dirty oil,’ and when they do, they are referring to the
carbon footprint. Th e carbon footprint is really not as
high as the moniker ‘dirty oil’ suggests.”
Asked about federal guidelines for carbon cap-
ture in future oilsands development and how that will
aff ect Saskatchewan, Carter pointed to the eff ort to
update the Fort Saskatchewan Scotford Upgrader to
capture carbon dioxide. Once that is done success-
fully, of which he has no doubt will occur, it will re-
duce the carbon footprint of oilsands oil to below the
average slate of crude oil available around the world.
It would drop from ten per cent higher to 10 per cent
below the average carbon footprint, he said.
Th e “Quest Project,” as the Scotford initiative
is known, was one of the projects successful in get-
ting money from the Alberta government’s $2 billion
CO2 capture funding, according to Carter.
“Th at sort of resolves the argument about it be-
ing ‘dirty oil.’
How much for CO2?When questioned on what the price of carbon
has to be per tonne for carbon capture to make sense,
Carter said, “It’s more in the $60 to $70 a tonne range.
What’s going to happen here as we develop these
commercial scale pilots? We’re going to bring down
the cost of the carbon capture and storage itself. Th e
cost is really in the capture and compression. “
He made a comparison to fl ue-gas desulfuriza-
tion, pointing out its cost has dropped by about half
since the initial work was done. “You’re going to see a
similar pattern in carbon capture. Th at will help bring
the cost down.”
“You’re going to see the value of carbon go up
over time,” he said, noting it would likely be in the
$60-$70 per tonne range in six-12 years.
“Th e impact of carbon capture on the oilsands
production could be about $8 or $9 a barrel, if the
cost of capturing it did not drop,” he explained. “It
only gets passed on [to the consumer] if the whole
world decides to do this. Otherwise, it’s a penalty that
hits our industry in Canada, and doesn’t hit the oil
producing nations elsewhere in the world. We have
to be really careful how we do this, so we don’t pe-
nalize our industry to the point where we make it
uncompetitive.”
Potential doubling of reservesJustifying the government of Alberta’s $2 billion
investment into CO2, Carter said, “Th ere are stud-
ies that indicate, if we can get CO2 available at the
wellhead, for all the enhanced oil recovery opportu-
nities we have in Alberta ...If you look at light oil, it
essentially would double the reserves of light oil we
could actually extract. It would add another 1.4 bil-
lion barrels of light oil to the reserves in Alberta. Can
you imagine, at $75 a barrel, you’re talking something
in excess of $100 billion in revenue, and $25 billion in
royalties to the government of Alberta.
“It certainly makes sense.”
He added there were issues around miscibility,
CO2 and heavy oil, and that research was needed.
In regards to how much oil companies might be
willing to pay for CO2 to be used in enhanced oil
recovery in southeast Saskatchewan, Carter said if
CO2 were available by pipeline at the wellhead, he
said the price of CO2 would come down, compared
to the over $100 a tonne it costs to truck it in. “We
used something in $35 to $40 per tonne,” he said in
their calculations.
“I would suspect we’ll end up with a price in that
range.”
Concluding, Carter said, “Every challenge has an
opportunity attached to it. We have an opportunity
for Saskatchewan and Alberta to make a diff erence on
a global issue. We have the educated folks at the Uni-
versity of Alberta, University of Calgary, University
of Saskatchewan, University of Regina – the research
institutes to enable that to happen. Th e companies
that are forward thinking, like HTC Purenergy, have
the opportunity to demonstrate to the world we’re
not only good at developing resources, but we’re good
at solving technology problems. “
Former Syncrude CEO now touts carbon capture and storage
We have an opportunity for Saskatchewan and Alberta
to make a diff erence on a global issue.
- Former Syncrude Canada CEO Jim Carter, PhD
PIPELINE NEWS May 2010 A9
Lloydminster – How
safe is your work place
and community? Th at’s
a question worth posing
during this year’s North
America Occupational
Safety and Health or
NAOSH week May 2-8.
NAOSH week is a
joint occupational health
and safety venture in-
tended to raise awareness
of health and safety issues
and importance of pre-
venting injury and illness
in the workplace.
Th e annual NAOSH
event is led in most Ca-
nadian communities by
the Canadian Society
of Safety Engineering
(CSSE) in partnership
with the Canadian Centre
for Occupational Health
and Safety and Human
Resources and Skills De-
velopment Canada.
National events are
held in conjunction with
the North American So-
ciety of Safety Engineers.
Th is year’s theme is
“Safety and Health: A
Commitment for Life!
How Safe Are You?” and
will be celebrate by vari-
ous community events in
Saskatchewan and Al-
berta.
In Lloydminster, the
week will be marked by
a barbecue and safety
tradeshow May 4 at the
Communiplex and fi re
extinguisher training
May 3-4.
Cam Peneff chair of
the Lakeland Regional
Safety Committee, a sub-
committee of the Lloy-
dminster Construction
Association that orga-
nizes the Lloydminster
events in the absence of
strong CSSE member-
ship, hopes more compa-
nies from the oilpatch get
involved this year.
“We don’t get as
many as we’d like to see”
said Peneff who runs his
own safety consultant
business. “We’d like to see
more participation from
the patch.
“Th e oilpatch and
construction is pretty
damn close – certain parts
of it anyway. We face a
lot of the same hazards
and the same issues. We
would love to see a lot
more oilpatch participa-
tion.”
Th ere will also be a
presentation about safety
awareness by a young
area farm worker who
was electrocuted when
his equipment contacted
an overhead wire. Th at
personal presentation
goes ahead May 5 at the
West Harvest Inn.
Th e Lloydminster
Construction Association
along with affi liated in-
dustry trade associations
is coincidentally holding
at “Try A Trade” con-
struction career expo to
be held at the Lloydmin-
ster Exhibition Grounds
on May 5.
Th e Try A Trade
event to be held from 9
a.m. to 6 p.m. will attract
students from all high
schools in Lloydminster
and surrounding area to
experience fi rsthand the
various construction ca-
reer opportunities that
are available.
In Regina, NAOSH
week kicks off May 4
with an 11 a.m. luncheon
at the Queensbury Con-
vention Centre in Re-
gina.
Th e guest speaker
will be safety advocate
Rob Ellis whose 18 year-
old son David died in
a workplace accident in
1999.
Ellis’s safety presen-
tation and story with be
broadcast to a similar
NAOSH luncheon to
be held at the same time
at TCU Place in Saska-
toon.
NAOSH week wraps
up May 5 in Regina with
a construction safety
trade show and barbecue
at the Tartan Curling
Club in Regina starting
at 11 a.m.
Safety week to focus on injury prevention
Work place safety is the focus of North America Occupational Safety and Health Week May 2-8. Safety is paramount at the construction site of the new Thorpe Recovery Centre in Lloydminster that is supported by donations from the oilpatch. The Centre also received $150,000 donation from an anonymous company in April.
Photo by Geoff Lee
PIPELINE NEWS May 2010A10
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Story and photos by Geoff Lee
Kerrobert – Th e population of the Town of Ker-
robert is more than 1,100 today, not including a ghost
or two said to dwell in the historic court house build-
ing that now serves as the town offi ce and museum.
While news of apparitions might scare off some
visitors, what rattles Deputy Mayor Myrna Kissick
and administrator Michele Schmidt is the specter of
not having enough housing to accommodate new oil-
fi eld workers and families.
“It’s a huge need with the infl ux of people coming
in and looking for new homes,” said Schmidt. “Pres-
ently, we have three or four homes in town that are
listed for sale – some of them fairly new homes. Th ey
are priced up to that $200,000 to $250,000 range.
“If a young couple is moving to town, we don’t
have anything in a nice midsize. We don’t have a lot
of nice three bedroom homes – that average home –
[for] $150,000 to $160,000.”
Th e town continues to advertise for a developer
to build 30 new lots in two subdivisions. With no
takers in line, the town is resigned to service nine lots
itself, starting this spring near the landmark water
tower. Other lots within the popular nine-hole golf
course subdivision will follow in the coming years.
“It will be done in stages,” said Schmidt. “Unfor-
tunately, with the town being the developer, it’s pretty
tough to be able to develop those lots and hold that
fi nancial debt. We will service those lots in town this
spring.
“Right now, we have two lots in the older part
town that are presently for sale.”
Kerrobert is awash in rental properties that came
on the market during the construction of the Alberta
Clipper pipeline built in 2008-09 by Enbridge Pipe-
lines Inc., one of the major employers and infl uences
in the area.
“We have heard through the grapevine, there is
going to be some growth coming our way this sum-
mer,” said Schmidt. “We are hearing about an infl ux
or a reorganization of the oil and gas industry.
“We are hoping that will entice people to move
to our community because they can get a job with
Nexen or Enbridge or one of the other companies.
Hopefully, we will see the spinoff from that aspect.”
Alliance Pipeline Ltd., Enbridge Pipelines Inc.,
Inter Pipeline Fund and Plains Marketing Canada
LP, are some of the major oil and gas players in the
area, with pipeline links and storage assets at or near
the Kerrobert Terminal, east of town.
Th e terminal is the site of a co-generation pow-
er plant built SaskPower and NRGreen Power that
converts waste heat from Alliance’s gas compressor
station and generates it into fi ve megawatts of elec-
tricity.
Page A11
The Enbridge Kerrobert Station is a major oil and gas storage and pumping station just east of Kerrobert.
Kerrobert energized by word
PIPELINE NEWS May 2010 A11
of pending oil eld growth Page A10
Several oilfi eld service and supply companies are
also located in Kerrobert where Mynra Kissick has
lived since 1946 and knows fi rsthand what the indus-
try means to families likes hers.
“I’ve seen a lot of impact. Our son works for Nex-
en and our grandchildren have worked in the oilpatch
as various jobs. It’s provided lots of employment for
our family,” she said.
“My husband Adgey and I farm south of Ker-
robert, and the oil wells that are pumping on our land
kept us farming for a lot of years – through a lot of
bad years.
“My dad had a grocery store in town. At some
times during the poor years, he used to take shares
from the guys that maybe needed a little bit of help.
“Instead of paying for the groceries they would
give him some shares from Inter provincial Pipe Line
(1949) before it became Enbridge. It’s always been a
part of our lifestyle here.”
“We have a good core of service industries in
Kerrobert. Our young people can stay in Kerrobert.
Th e town’s average age is around 40.”
When Kissick was young herself, Kerrobert had
a bigger population than it does today, but a series
of fi res in the 50s and 60s wiped out core downtown
businesses and dealerships that never came back.
“I think the population will recover to that level,
but I don’t know if the business district will ever re-
cover because the larger companies are centralizing in
large communities,” said Kissick.
On the bright side, Kerrobert has a small town
lifestyle where everybody knows everybody and kids
can walk to school or the arena or the outdoor swim-
ming pool.
“We have three children and they have all made
their homes in Kerrobert,” said Kissick. Th ey all have
businesses in Kerrobert or work out of here.
“I have two of 10 grandchildren that live away,
and one of them lives in Lloydminster and comes
back here to work at the hospital. It’s an excellent
place to raise family.”
InfrastructureNew oil and gas industry workers and businesses
are helping to boost the tax base of the town for badly
need infrastructure projects including the recent con-
struction start of a new $4.5 million reverse osmosis
water treatment system.
“Th e project itself is a requirement of the prov-
ince to meet new standards for water treatment,” said
Schmidt.
Th e cost is partly off set by a $2.1 million grant
from Infrastructure Stimulus Fund from the provin-
cial and federal governments, and $500,000 from the
Municipal Rural Infrastructure Fund. Th e town will
have to borrow approximately $2.3 million to pay the
balance. Page A12
Deputy Mayor Myrna Kissick and administrator Michele Schmidt are proud supporters of their community and the oil and gas industry.
NRGreen Power built this gas powered turbine generator next to the Kerrobert Terminal.
A12 PIPELINE NEWS May 2010
, ASME
New home construction needed
Page A11“Th at is a huge debt
load for a small commu-
nity this size, but we are
going to forge ahead,”
she stressed.
“We still have to
struggle with cast iron
water mains, and we have
been changing about two
to three blocks a year.
At some point, we will
have all of the mains re-
placed.”
Repaving and re-
pairing residential streets
and downtown beautifi -
cation are on the town’s
to-do list.
Meanwhile, an ele-
vator is being installed in
the court house building
with a $50,000 contri-
bution from the federal
government.
It won’t go to the
basement, where the sup-
posed ghost is thought to
have a connection with a
skull locked in an evi-
dence room and a 1931
murder trial that took
place on the fi rst level.
Th e town has com-
mitted $300,0000 to the
Kerrobert, Luseland &
District or KLD Foun-
dation that is raising
funds for the $18 million
capital cost of a new hos-
pital and nursing home.
“It’s very important
to our community that
we have a good well han-
dled health care facility,”
said Kissick.
“If we were to ever
have an oilfi eld accident
we need to be set up to
handle something like
that. We have hired an
EMO (emergency mea-
sures offi cer) to set up
plans and work with oil
companies on plans in
case we do have a prob-
lem.”
Oilfi eld donations
have helped the town
with the purchase of a
new fi re truck, upgrades
to the arena and the
rebuilding of the golf
course that was torn up
for a pipeline in 2000
and the list goes on.
“I appreciate the oil
and gas industry in that
it’s allowed me to keep
my family close,” said
Kissick. “I love to have
my grandchildren grow
up right under my nose.
“It’s supported a
lot of things. I have my
grandchildren playing
hockey and half their
sweaters have a logo or
their programs are print-
ed by a local oil company.
It lets us keep a whole
lot of our programs run-
ning.”
This functioning 1914 standpipe water tower is one of the main attractions in town that will mark its centennial next summer.
Crews work on a $4.5 million expansion and up-grade of the Kerrobert water treatment plant.
New affordable housing and lots are at a premium but the town will begin to service nine new lots this spring.
PIPELINE NEWS May 2010 A13
Lloydminster – It’s
early days, but prepara-
tions are underway to
draft an agenda for the
17th Annual Heavy Oil
Technical Symposium to
be held at the Lloydmin-
ster Convention Stockade
Sept. 15-16.
Th e event is orga-
nized by the Lloydmin-
ster section of the Society
of Petroleum Engineers
that has put out a call for
presentations.
Potential present-
ers are invited to submit
a brief biography and
an abstract of their talk
for consideration on the
agenda.
Th is year’s sympo-
sium will be held in con-
junction with the Lloyd-
minster Heavy Oil Show
under the theme, “Chal-
lenges, Opportunity,
Change.”
Suggested topics for
presentations include
new innovations for the
future, fi eld research and
pilot studies, workover
techniques, production
issues, operating cost re-
ductions and case studies
of oil production or treat-
ing.
Anyone interested
in delivering a presenta-
tion at the show is asked
to contact a SPE execu-
tive member noted on
the SPE website, at www.
specanada.org/Lloyd-
minster/index.html. Th e
deadline for abstracts and
biographies is May 31.
SPE president Beh-
rooz Fattahi, was the
guest speaker at the Lloy-
dminster lunch and learn
presentation in April.
Look for a report on
his presentation titled,
“Challenges of the Fu-
ture” in the next edition
of Pipeline News along
with more news about
the fall symposium.
Call goes out for heavy oil symposium
Story and photos by Geoff Lee
Th e Lloydminster Showcase tradeshow held at
the Lloydminster Exhibition Grounds in late March
featured a variety of home and garden, sport and lei-
sure products and services that are on the wish list of
many oilpatch consumers.
Th e three day show was well attended with warm
spring weather turning visitors’ thoughts to visions of
relaxing around the home and garden and enjoying
some of the leisure products on display at the show.
Ken Deleff, service manager for Rec-Tech Power Products, stands by a Can-Am Renegade quad.
Toys for oilpatch consumers draw a crowd
SPE president Behrooz Fattahi, Aera Energy LLC. Photo submitted
Myron Bassett, branch manager of Cummins Western Canada, showcased an RS 12,000 stand-by generator for the home powered by natural gas.
PIPELINE NEWS May 2010A14
NEW LOCATION
6401 63rd Avenue, Lloydminister (Northwest of Kenworth)Phone: (780) 875-6604 • Fax: (780) 875-6634
In celebrating NAOSH Week we’re proud to announce our
New and Improved ISNet Compliant Safety Program managed by Owen Noble
our committed Safety & Compliance Manager
New State of the Art Facility exceeding Alberta and Saskatchewan Environmental and Safety Standards
By Brian Zinchuk
Weyburn – For a company that’s only been
around since last July, Legacy Oil & Gas was worth
$912 million in market capitalization as of April 21,
with most of their assets in southeast Saskatchewan.
Not too shabby, but then, perhaps that’s to be ex-
pected from a management team that makes a habit
of growing companies and then crystallizing the in-
vestment. Trent Yanko, the president and CEO, is
on his sixth venture.
Th e company held three open houses in south-
east Saskatchewan Mar. 19-21, in Weyburn, Creel-
man and Roche Percee. Much of the management
team was out for these events. So far, the company’s
staff only numbers 30 employees, plus contracted
production employees.
Th e message Yanko wanted to get across was that
while they may be a new company, they are familiar
faces and familiar with the area and have a proven
track record. Many of the players with Legacy have
been around in other capacities, with other compa-
nies.
“New, but with old names and faces,” said
Yanko.
Pipeline News got some one-on-one time with
Yanko, someone whose name came up frequently
in an interview last month with Grant Kook, CEO
of Westcap Mgt Ltd., the company that manages
the Golden Opportunities Fund. When Kook talks
about “tier one management teams,” the fi rst person
he mentioned was Yanko and his group.
Yanko, 43 is a professional engineer who earned
his degree at the University of Regina. He is origi-
nally from Regina, but is now based in Calgary. He
started at SaskOil, and moved to Lloydminster to
work for the company for four years. After that, he
began down the path of starting and growing com-
panies.
“We recapitalized Glamis. We took over the
company in July,” Yanko said. Since then, they had
completed fi ve transactions, raised $215 million and
purchased $535 million in assets. “Th at established
our production base and undeveloped base,” he ex-
plained.
“Th is is my sixth start-up of a new company.
All ended in some crystallization of values, a sale or
merger.”
However, he said there is no expiry date on this
venture. Th ey looked at issues that cause other com-
panies to fl ounder, like running out of capital or drill-
ing locations, and endeavoured to ensure that doesn’t
happen to them. “We can continue to grow over a
number of years,” he said. “Th e strongest position we
can be in is to have a clean balance sheet with low
debt to cash fl ow, and lots of drilling upside. We try
to keep the hopper full of drilling opportunities.”
At the current rate, they have fi ve years of inven-
tory, he said. Th ey were active in the April 12 Crown
land sale, but he didn’t want to say how much.
Th e company’s production is 97 per cent oil, and
just three per cent in associated gas. “We’re an oil
company in all defi nitions of the word,” Yanko said.
Th ey went after Connaught due to its Bakken
holdings. After that acquisition, the company was
renamed Legacy Oil & Gas.
Th eir main thrust in 2010 and 2011 is develop-
ing the Bakken. Th ey have in excess of 125 drilling
locations. If you include down-spacing, that number
climbs to 250.
Much of that is close to the U.S. border, south of
Estevan, where the wells are deeper that the typical
Viewfi eld-area Bakken wells. Th at makes them more
prolifi c, he explained, a function of depth and pres-
sure. “We have an interest in 320 net wells,” he said.
Page A15
Legacy Oil & Gas president & CEO Trent Yanko addresses the over 50 people who turned up for the company’s April 19 Weyburn open house.
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Page A14Th e company is looking to drill 78 gross, ap-
proximately 58 net wells in 2010. “We’re looking to
spend $117 million, $110 million to go in southeast
Saskatchewan.”
About two-thirds of that is slated for Bakken de-
velopment. However, he said, “We’ve never branded
ourselves as just a Bakken play.”
Th eir typical well will be a horizontal, multi-stage
frac, which Yanko said is standard now.
Th ey also looking at the Torquay, also known as
the Th ree Forks-Sanish, in the Antler area, where it is
approximately 900 metres in depth. “We see that as a
potential waterfl ood candidate,” he said.
Asked if they are looking at CO2 enhanced oil
recovery, as Tundra Oil and Gas is piloting just across
the Manitoba border, Yanko responded, “Yes,” but
added they would follow the typical primary, water-
fl ood, and EOR path.
“We can lever off their experience,” he said, using
information in the public domain.
Th eir Taylorton fi eld is just 16 km from the
Boundary Dam Power Station, where SaskPower is
working on a carbon capture project, and needs wells
to inject the CO2 into. Yanko said they are thinking
about it internally, and there may be an opportunity
to inject fl ue gas. He noted that the issue with carbon
capture and storage is proximity to the source, and
they are amongst the coal mining right now.
“I think people have been supportive,” he said of
their eff orts. “We’re not done yet. We’re just getting
going.”
Legacy Oil & Gas
Trent Yanko, left, visits during the Legacy Oil & Gas’ Weyburn open house on Apr. 19. Yanko is president and CEO of the rm.
PIPELINE NEWS May 2010A16
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Lloydminster – Big
Bore Directional Drill-
ing is a relative new-
comer in the horizon-
tal directional drilling
market, but it’s already
a force to be reckoned
with.
Big Bore, owned by
Doug Fischer in Lloy-
dminster, was launched
in Red Deer, Edmon-
ton and Lloydminster
in August 2009 with
one drill and a lot of
promise.
Now the company
has four drills, 12 em-
ployees, and its fi rst
manager, Des Ross, who
is keeping crews orga-
nized and busy with
most of the initial work
in Alberta.
“We have been able
to expand our market
share and we plan on
continuing to do that,”
said Ross, who came
onboard Feb. 1.
“We are off ering
customers an honest
day’s work for an hon-
est day’s dollar – good
value. Th ere are a lot
of guys out there do-
ing directional boring,
and there are a lot of
guys out there doing it
poorly.
“We are trying to do
it as effi ciently as we can
and be the best guys out
there. Th at’s ultimately
what our goal is – to be
the best.
Big Bore has two
Ditch Witch bor-
ers and two Universal
HDD machines with
power ranges of 36,000,
80,000 and 140,000 lbs
of thrust and pullback
force.
Big Bore’s service
menu includes oilfi eld,
municipal and resi-
dential installations of
pipelines, utilities ca-
bles, fi bre optic cables,
and gas and sewer lines
crossing roadways and
waterways and other
environmentally sensi-
tive areas.
“Mostly what we
have been doing is oil
and gas pipelines. We
are always looking to
expand our market share
in every area,” said Ross,
who says Alberta is the
hotbed for Big Bore’s
services at the moment.
“Th ere is more
business out that way,”
he said. “Th ere is more
call for directional there
than there is here. Th ere
is a lot more pipelining
and single wells being
pipelined into a facility
and that type of stuff .
“Here in Lloyd-
minster all of the single
wells go into tanks and
it’s trucked. Th ere is just
more work in that neck
of the woods.”
Big Bore has a shop
in Red Deer, an offi ce in
Edmonton and a fl eet
of trucks trailers, pickers
and support vehicles.
Some of truck and
trailers are safety inspect-
ed and maintained at
Fischer’s Oil City Diesel
Repair in Lloydminster,
where business is also
picking up.
“We have done some
work around here and
we are looking at park-
ing more of the drills here
permanently.
“What I’d like to
see is a fl eet of 12 to 16
drills strategically locat-
ed throughout Alberta
and Saskatchewan,” said
Ross.
“I would like to see
us become number one in
the HD and boring busi-
ness.”
Currently, Big Bore
has a shop in Red Deer,
some staff in Edmonton
and a fl eet of trucks trail-
ers, pickers and support
vehicles.
Big Bore is poised
to capitalize on the trend
toward horizontal direc-
tion drilling as an envi-
ronmentally friendly, effi -
cient and safer alternative
to surface trenching.
“It doesn’t disturb
ground,” said Ross. “If you
are running a pipeline un-
der a road, you don’t have
to dig the road up. If you
are running your pipe-
line underneath someone
else’s pipeline you don’t
have to worry about dig-
ging their pipeline up.
Page A19
Big Bore directional driller quick out of the gate
Des Ross, manager of Big Bore Directional Drilling is dwarfed by this Uni-versal HDD 140 stationed at their Red Deer location. The company has a eet of four boring machines and its own support vehicles.
Photo submitted
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Page A18Th ere are also environmental considerations.
When you come to a river or a creek you can’t be
digging a river up, so you bore underneath it.
From a business perspective Ross knows from
experience that effi ciency is the key to profi table
oilfi eld drilling.
“Th e more effi cient you are the more effi cient
is your customer because they’ve got other equip-
ment tied up. Th ey are waiting for you,” he said.
Ross comes into the job with years of hands-
on and managing experience most notably with
Fischer’s fi rst business Allstar Oilfi eld Services
in Lloydminster that operated fl usbys, vac trucks,
pressure trucks, steamers and hydrovacs.
When Eveready Energy Services purchased
Allstar, both men worked together again with Fis-
cher as regional manager and Ross as an area man-
ager of employees and a fl eet of 68 units.
Eveready was in turn, bought by another com-
pany in 2009, and shortly after Fischer launched
Big Bore then off ered Ross a job.
“It’s a challenge,” said Ross of his new job. “A
lot of the stuff is new to me and I kind of learn as
we go. A lot of it is common sense too.”
As a safety coordinator Ross says it’s his job to
make sure all of his employees get home safely and
in one piece and not harm any equipment or the
environment.
“Our employees are some of the best guys in
the industry, so we were lucky that way,” he said.
“We rely on them to train any new hires. Right
now, we don’t have anybody on staff with less than
fi ve years experience.”
As for marketing Big Bore Ross said, “We are
fl ipping a lot rocks. We are knocking on doors and
advertising in your paper and growing by word of
mouth from some of the people we work with.
A satisfi ed customer is a repeat customer. Ul-
timately that’s the goal – every time we go out
there, we are leaving the guy happy, so he’s calling
us back.”
Experience shows that ef ciency is key
It seems selling heavy equipment at auction has its perks. Dave Ritchie is one of the
co-founders of Ritchie Bros., the big dog when it comes to heavy equipment auctions in
Western Canada. However, it was one of his own items going up for bid that drew head-
lines on Mar. 31.
Th e Financial Post reported that Dave Ritchie’s 220-ft. yacht Apoise sold for $46 mil-
lion in a public auction in the Cayman Islands on Mar. 30.
“Bidding for the ship, formerly owned by Ritchie Bros. co-founder Dave Ritchie,
opened at US $20-million and was sold within 15 minutes,” the Financial Post reported,
adding, “Not surprisingly, Mr. Ritchie said he was “really pleased” with the sale.”
Th e yacht was listed as the 89th largest in the world.
Ritchie Bros. co-founder sells yacht for $46 million
PIPELINE NEWS May 2010A20
Tim SharpCell: (780) 871-1276
Offi ce: (780) 847-4666Fax: (780) 847-4661
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Kerrobert – Erhard Poggemiller and his wife Evelyn, who own and operate
Kep Industries Ltd. in Kerrobert, are bilingual in “ag and oil speak” as a manufac-
turer and dealer of agricultural and industrial products.
With oil and gas now on the upside, most of Kep Industries’ business is con-
ducted in the language of their oilpatch clients for SGI inspections on trucks and
trailers, oilfi eld repairs, custom manufacturing, and auto air conditioning repairs
and service.
Farm talk is not heard as often, but Kep Industries stocks recycled air fi lters
and umpteen parts for oilfi eld related vehicles and the agricultural market that
used to dominate the business chatter.
“It’s switched,” said Poggemiller who voiced no worry about which hat to
wear for the interview.
“It used to be 90 per cent agriculture, and now we are about 75 per cent oil-
fi eld related and about 25 per cent agriculture.
“Th e oilfi eld kicked in big time in the ’90s and in the last number of years
especially. Ever since we had a change in government, there has been a fair bit of
increase in oilfi eld activity.
“Kerrobert is very uniquely positioned in the oilfi eld even in the existing
(original) oilfi eld which is Coleville and that area. We get a lot of business from
the whole area. It comes through town here.
“Now, we carry a lot of supplies related to heavy trucks and trailers in the
oilfi eld. We are kind of a general store for parts and supplies to do with the oil-
fi eld.”
Kep Industries has shelves fi lled with everything from hydraulic fi ttings and
bearings and seals to plumbing parts and nuts and bolts related to oilfi eld busi-
ness.
Th e resurgence of oil and gas exploration and drilling, pipeline construction
and oilfi eld servicing in the area, sends a steady stream of vehicles to the Kep
Industries’ shop for semi-annual and annual safety inspections.
SGI requires two inspections a year for a highway tractor, and one a year for
a trailer or a truck that doesn’t pull a fi fth wheel.
Page A21
Busy, bumpy oilpatch steer Busy, bumpy oilpatch steer business to Kep Industriesbusiness to Kep Industries
Erhard and Evelyn Poggemiller have owned and operator Kep Industries Ltd. since 1978. Photo by Geoff Lee
PIPELINE NEWS May 2010 A21
Page A20
“For inspections, we
do heavy duty stuff from
3/4 ton trucks and all the
way up,” said Poggemill-
er. “It’s a total inspection.
It takes about two hours
to do and that’s just an
inspection. Th at’s not
doing any work.
“We do some heavy
duty repairs related to
those inspections, and
we are also seeing a lot
of agriculture people
coming in here doing
the same thing – getting
their trucks inspected –
and bringing them up to
standard. Th e same rules
apply.
“Th e highway traf-
fi c guys – the RCMP we
know around here, are
telling us that with com-
mercial units, the safety
standards have greatly
improved on the roads,
which has been a big
help.”
Poggemiller is a for-
mer mayor of Kerrobert
whose sources tell him
oil activity could boom
this summer as it did last
summer to the benefi t of
the business community.
“It has started to pick
up now already, but from
what I am hearing it’s
not the big companies,
but it’s a lot of smaller
companies that are start-
ing to drill out here,” he
said.
“Th ere is usually a lot
of spinoff from that. Also
a lot of the stuff comes in
from Alberta, and anyone
who comes from Alberta,
and has a lot of vehicles
that are going to be in
the province for awhile,
is required to have certi-
fi cation to operate in the
province.”
Alliance Pipeline
Ltd, Inter Pipeline Fund,
and Enbridge Pipelines
Inc. are some of the ma-
jor energy companies
with pipeline networks
and facilities in the Ker-
robert area.
Enbridge, which op-
erates the Kerrobert Ter-
minal west of town built
a section of the Alberta
Clipper pipeline near
Kerrobert last year.
Poggemiller says
the buzz is that another
pipeline will be built this
year.
“I heard there was
going to be some other
oilfi eld lines coming
through here too from
other companies, but I
can’t remember what the
name is,” he said.
“Last year we had a
big year. Th e main line
(Clipper) went through,
and that helped the town
immensely. We were
running out of space to
accommodate people.
Some people bought
some lots and put camp-
sites on them.
“It’s a really big deal
and we were fortunate.
Th e pipeline crews were
very good in supporting
the local economy.
“Th ey didn’t bring
everything in and do ev-
erything on their own.
Th ey supported the local
economy.
“A lot of the stuff in
this community has been
done as a result of oil and
gas. A lot of the funding
that comes from diff er-
ent projects comes from
oil and gas. Kerrobert has
expanded not because of
agriculture, but because
of oil and gas.”
Th e growing oil and
gas industry also brings
in custom fabrication
orders that Poggemiller
says tend to be for one of
a kind projects.
“Usually, it is some-
thing they can’t just buy
off the shelf,” he said.
“It’s a one of a kind thing.
Th ey may want a stand
out in the oilfi eld that
will hold pipe or ladders
to fi t on tanks.”
At one time, Kep
Industries used to manu-
facture rebuilt air fi lters
but Poggemiller says
they sold that off a few
years ago and now have
two employees.
“It was very labour
intensive, and hard to
fi nd people for that,” he
said.
“Right now, we are
comfortable with what
we do and how many
employees we’ve got.
Th ey are trained to do
what they do. It’s a lot
less headache for us.
Inspection related Inspection related repairs keeps KEP repairs keeps KEP Industries busyIndustries busy
Kep Industries owner Erhard Poggemiller is kept busy with oil eld SGI safety inspections and fabrication in his back shop.
Foreman Mike Warkentin conducts an SGI safety inspection on an oil eld truck.
PIPELINE NEWS May 2010A22
Are you getting your invoices out in time?
Are you meeting all your deadlines?
We are experienced Oilfi eld and Transport Bookkeepers - We offer Monthly and Annual book Keeping Services.
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AttentionAttentionOwners, Operators & Small Business OwnersOwners, Operators & Small Business Owners
Ph.306-825-5630Fax.306-825-6305
Payroll&
Bookkeeping
Lloydminster – Businesses need to turn a profi t to succeed.
With that in mind, Doug Fischer who owns Oil City Diesel Repair and Big
Bore Directional Drilling launched Allstar Ventures Ltd. bookkeeping service in
March to help other small businesses keep track of their bottom line.
“Good bookkeepers are extremely important,” said Fischer. “Th ey know day-
to-day, how your expenses are compared to your income.
“A lot of owner-operators and companies don’t know where they are at re-
garding revenue to expenses. We should be able to let them know daily where
they are at.
“We will do any bookkeeping, but we will specialize in the transport area. We
know how to get permits for the tri-axles and how to deal with the Saskatchewan
government with big trucks and deal with the safety side of the operation of
trucking.”
Th e new business, spelled with a small letter “a” on corporate letterhead, is
headed by Dot Andrews, a former offi ce manager and Doreen Kilbreath, the staff
bookkeeper for Oil City.
“For clients, basically we are looking for owner-operators and small oilfi eld
service operations,” said Andrews.
“Th ey need an offi ce, but they don’t need an offi ce full-time. We’d like to pro-
vide full offi ce services for them. We provide almost anything in the administra-
tive line. We can do bookkeeping, make sure they meet their deadlines, and take
care of any reporting they have.
“In the transport area, we certainly understand the problems. Th ere are prob-
ably more regulations covering these guys, so we would like to help them meet
those regulations.”
Andrews was the bookkeeper for Fischer’s fi rst business, Allstar Oilfi eld Ser-
vices, that was bought out by Eveready in 2005.
When Eveready was in turn purchased last year by another company, Fisher
found an opportunity to start Big Bore and Andrews followed suit this March to
help launch Allstar Ventures.
“Dot has been a big inspiration,” said Fischer. “She has the experience behind
her with Eveready and Allstar Oilfi eld so she knows what she’s doing.”
Andrew is certainly excited about her new challenge as the head bookkeeper
and says he loves her work.
Page A23
Transport bookkeeping a specialty for Allstar Ventures
Doreen Kilbreath and Dot Andrews head up Allstar Ventures bookkeeping.
PIPELINE NEWS May 2010 A23
Page A22“I like to take something that’s really
messy and nasty with bookkeeping, and
I like to take it and put it into a structure
and a framework – and when you are
fi nished – it’s something everyone can
look at, and they know exactly what it
says from a fi nancial point of view.”
Fischer and Andrews are hiring ad-
ditional bookkeepers for Allstar to meet
a steady demand from owner operators
for added-value bookkeeping that meet
their line of work.
“Th e owner-operator wants to make
money,” said Fisher. “Th e less time he
spends on administration the more time
he’s available to be out earning revenue.
“We both know what we saw previ-
ously, and the services that the indepen-
dent owner operators received. We felt
we could do a better job. Doug brought
me over to do his bookkeeping.
“We thought we could take book-
keeping that one step further and pro-
vide them with more of what they need
than just a bookkeeping service.
“We found from our experience
with lease operators and the service they
were getting from their accountants – I
don’t think was very good.
“Th ey were accountants who just
did bookkeeping. Th ey didn’t have the
specialized knowledge that Doreen and
I do.”
Allstar Ventures will off er monthly
and annual bookkeeping services in-
cluding payroll, WCB reporting, E-bill-
ing services and GST reporting along
with acquiring permits, licensing, IFTA
International Fuel Tax Agreement re-
quirements and administrative safety
services.
“Th e specialized transport part of it,
you have to learn on the job,” said An-
drews. “Th ere is no place you can go for
training like that.
“Th ere are GST deadlines. Th ere’s
WCB reporting. You have your permits
and your licensing that has to be looked
after.
“You have to keep track of safety
tickets and orientations and safety issues
for your trucks.
“I think because you are so heavily
regulated you have to make sure all of
your reporting requirements are met.
“You are frequently pro-rated in
diff erent province so you have diff erent
WCB reporting and GST reporting.
We would like to bring it up to the point
where tax planning takes place.
“We can also write letters for them
depending on what they need.”
With Allstar Ventures in good
hands, Fischer is free to work on grow-
ing Big Bore Directional Drilling that
he started last August specializing in
pipeline boring. See related story on
Page A18.
“We are going to try to focus a little
more on the Lloydminster area. More of
our growth will come from Big Bore,”
said Fischer.
“It’s exciting, but the whole key to
running a good business is hiring the
right people,” said Fisher.
It’s in the books
PIPELINE NEWS May 2010A24
Lloydminster – Th e
Lloydminster Lions
Club 2010 Border Bike
Rally, to be held June
18-19, promises to be
the biggest and best yet
with a fundraising goal
of $40,000 to $50,000
for community causes.
“We have increased
our attendance volume
every year,” said Lions’
fundraising and rally
chair Nick Laley. “Th is
is our fourth year. We are
expecting 700 to 1,000
bikes and we expect
about 200 classic cars.”
Th ere will also be the
ever popular biker rodeo,
bike and car show and
shines, a poker run, live
bands and a trade show –
for a summer event that
is drawing a lot of sup-
port from the oilpatch.
“A lot of people own
bikes and many people in
the oilpatch have a bike,”
said Laley. “Th ey see the
signifi cance of this.
“Th e Lions are pret-
ty big in Lloydminster.
We have been around for
more than 60 years in the
community. It’s a way for
them to be giving. We
are in turn, giving them
an event and a party.
“Oil and gas com-
panies also donate door
prizes or even make
prizes for us. Last year,
we had a welding shop
make a custom bench.
Th e oil and gas compa-
nies help us out quite a
bit. It’s awesome really.”
Western Plains Pe-
troleum Ltd., Raider
Well Servicing and Clas-
sic Oilfi eld Service Ltd.
are listed among the ma-
jor event sponsors.
In keeping with a
fundraising strategy to
add a new event each
year, Alberta vintage fl at
track bike racing will de-
but at the horse racing
track at the exhibition
grounds.
“We want to change
it a little bit every year so
people say ‘We gotta go
there.’ Th e fl at track will
be a big thing this year,”
said Laley.
“It’s the fi rst year
here, so it’s a non-sanc-
tioned race by the Al-
berta Vintage Flat Track
Racing Association.
“We are just trying it
out and see how it works
with the public. I think it
will work good.
“Th ey said this is the
best track they have ever
been on. It’s the wid-
est and the biggest. We
have even got some peo-
ple coming up from the
States.”
Th e Border Bike
Rally is the biggest and
most exciting fundraiser
of the year for the Lloy-
dminster Lions, boosted
by sponsorships and do-
nations from oil and gas
companies. Page A25
Motorcyclist from all walks of live will take part in the 2010 Border Bike Rally in Lloydminster.
Photo by B&R Photography Ltd.
Border Bike RallyBorder Bike Rallybecoming a well-oiled eventbecoming a well-oiled event
PIPELINE NEWS May 2010 A25
NEW LOCATION! Corner of Hwy 16 & Upgrader Road, Lloydminster
Kim LeipertPh. 306.825.5355
Cell: 306.821.2880Fax: 306.825.5356
www.heavyoilfi [email protected]
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Page A24“Th ey provide us with
funds and prizes,” said
Laley. “We sell them ad-
vertising for our program
guide, and they also help
to sponsor the bands.”
Th is year, there will
be fi ve bands including
Prism, Kenny Shields
and Street Heat booked
for the Saturday night
cabaret, and excitement is
beginning to build.
Hundreds of local
and out-of-town bikers
including many riders
from the oilpatch are ex-
pected to sign up for the
$10 per person poker run
that drew 315 riders last
year on a cold summer’s
day.
“Th is year we are
planning on going to
Vermilion, Wainwright
and back,” said Laley.
“We call it the White
Cane Run since all pro-
ceeds are donated to the
CNIB.”
Other proceeds
from the bike rally go
toward the Lions’s Quest
(Th rive) program for
youth citizenship pro-
grams off ered at most
area schools.
Additional funds
are raised from the sale
of weekend passes to all
events including over-
night camping without
power for $40 or admit-
tance to the popular Sat-
urday cabaret for $30 per
person.
Public admission
to the grounds is $5 on
the opening Friday with
children 12 and under
free. Saturday’s admis-
sion is $7 with children
12 and under free.
“It’s a family type
rally and we want the
public to come and see it
too,” said Laley.
“If you get a couple
of hundred muscle cars
and antique cars, it’s nice
to see too. Last year, we
had 140 cars at the show
and shine.”
Th e Classic Car
and Hot Rod Show will
be sponsored by the
Lloydminster Just Kruzin
car club.
Raffl e tickets are be-
ing sold at the border
bike rally website for
$20 each for a chance to
win the grand prize – a
1500cc Suzuki Boule-
vard motorcycle. Th ere
are runner-up prizes for a
50-inch Samsung plasma
TV, and a Garmin 660
GPS for motorcycles or
passenger vehicles. Th e
early bird draw is for a
$500 fuel voucher.
A bike rodeo will be included once again in this year’s Border Bike Rally. Photo by B&R Photography Ltd.
Border Bike Rally 2010 will feature more than 200 classic autos. Photo by B&R Photography Ltd.
Lions club president Rich McMahon who works for Frontier Peterbilt, and Nick Laley, Border Bike Rally chair, set up this raf e display for a 2009 1500cc Suzuki Boulevard motorbike at the Lloydminster Mall.
Photo by Geoff Lee
Excitement is beginning to buildExcitement is beginning to build
PIPELINE NEWS May 2010A26
Before June 1st $40
At the Gate $45
BIKE RODEO 1 - 5 pm
Sponsored by CE Franklin and Full Tilt
WHITE CANE RUN (Poker Run)
Sponsored by Don’s Speed Parts in Wainwright
8:30 am - 1 pm Proceeds go to CNIB
SHOW N’ SHINE 2 - 5 pm
Sponsored by Layd-Rite Construction
CLASSIC & HOT ROD CAR SHOW N’ SHINE
Sponsored by Just Kruzin’ Car Club 11 am - 4 pm
www.justkruzin.com
FRIDAY NIGHT ICE-BREAKER WITH ONE CENT MELON & NO WEISER * BEER GARDENS * DOOR PRIZES
TRADE SHOW * SWAP MEET * ON SITE CAMPING (Free tenting for bikers) * DEMO RIDES * FOOD
LAYD-RITELAYD-RITE
CONSTRUCTION
Band Sponsor
Band Sponsor
Wainwright
Demo Rides
Draw to be made Saturday night at the Rally! Grand Prize - 2009 Suzuki
Boulevard C90T. Sponsored by Suzuki and RoughNTough Powersports
Tickets available on website and most sponsors. 2nd Prize - 50” Plasma TV
3rd Prize - Garmin 660 GPS
For more information contact
Nick at (306) 825 - 3852
Pre-order your tickets at
www.borderbikerally.com
Everyone Welcome!
Band Sponsor
Demo Rides
Victory Motorcycle dealer
LLOYDMINST
ER
LLOYDMINST
ER
Admission
ONLY $7!!!
12 & under FREE!
NEW FOR 2010! 1 - 5 pm
ALBERTA VINTAGE FLAT TRACK RACING
Sponsored by Action Towing & Recovery
SATURDAY CABARET - Earl Stevenson, PRISM and back
by popular demand - KENNY SHIELDS & STREETHEART !!
Cabaret tickets only $30
Available at Bo Diddly’s or online at
www.borderbikerally.com
Must be 19 or older
SATURDAY EVENTS
Demo Rides
Saskatoon –Th ere is a right tool for every job.
Th e handyman’s creed also applies to the light-
footed mulchers and shredders deployed by Maverick
Construction Ltd. to provide oil and gas customers in
Western Canada with top quality shredding and land
clearing services with minimal ground disturbance.
Maverick specializes in providing brushing and
mulching solutions for seismic clearing, lease site
preparation and access road clearing with environ-
mentally-friendly equipment based in Saskatoon and
Sylvan Lake in Alberta.
“We have a variety of diff erent machines, and
what we do is customize most of our machines,” said
company owner Ron Bodnar in Saskatoon.
“We have been in mulching business for 10 years.
We have certainly found out there is no such thing as
an off -the-shelf machine.
“It takes years to determine what you need for
the appropriate horsepower for the mulching end,
and the diverted power to the tracks.”
Maverick will order a shredding or mulching unit
from a manufacturer with a list of specifi cations, then
modify it for weight and power, and customize it to
certain widths and features.
“It’s our own customized brand,” said Bodnar.
“We will use diff erent parts from Caterpillar, John
Deere and Berko. We will go to a manufacturer and
say this is how we want it spec’d.
“Our specifi cations, our modifi cation and our
customizations are important. Th ose are the three
things we do to have the appropriate machine.”
All of Maverick’s versatile land clearing units are
equipped with GPS, 2-way radios and come with
customized bush guarding and auxiliary fuel storage
capacity.
“It’s important to customize the machine, but
after that, it’s important to place the appropriate ma-
chine for the appropriate job,” said Bodnar.
“With the equipment, we match the proper
mulcher for the proper job in size and power, and
with the imprint that we leave. We follow protocol,
so we don’t leave marks on the top surface, and there
aren’t all these tracks and divots.
“Ground pressure is a big thing in the environ-
ment. We will bring in the proper weight of the ma-
chines.
“Th e other part of being environmentally friend-
ly is to be as unobstrusive as you can possibly be in
the bush. You want to do the job of seismic clearing
and leave it like we were never there.”
Maverick uses biodegradable hydraulic oil in its
units for extra environmental protection and is in the
process of switching some of its older diesel engines
to a new fuel-saving diesel engine.
More equipment modifi cations are possible as
Maverick uses the spring break-up to maintain and
improve their machines.
“We are right around the corner for late spring
and summer work to start up again,” said Bodnar.
“We don’t take too much of a break. We just kind of
go through a full maintenance program.”
With oil steadily rising during the winter over
the $80 a barrel mark, Maverick picked up a lot of
seismic and road clearing work in northern Saskatch-
ewan and northern Alberta.
“For access reasons, most of the mulching and
clearing for oil companies is done in the winter time
in a lot of the northern areas because of the opportu-
nity to go on the muskeg,” said Bodnar. “We like to
use lighter machines. Th at’s a big thing with environ-
ment nowadays.
“Most of the work in Alberta is in the Fort Mac
area. If you were there this winter, you kind of wouldn’t
know there was a recession. Th ings are pretty busy.
It’s buzzing around.
“It seems to be the pace of work is picking up
faster than last year. I am pretty sure it’s got to do
with the dollar fi gure on oil. It’s a positive activity and
I think it’s also due to what’s happening in the Unit-
ed States. Economic recovery is obviously around the
corner.”
Maverick is also attracting more business from
the military lately as it latches on to the benefi ts of
environmentally friendly land clearing as an attrac-
tive alternative to using a heavy Cat or a chain saw.
“Th e oil and gas sector is the main focus of our
business,” said Bodnar. “Th ey are our number one cli-
ent.
“We take the hassle of working for a land clearing
company because of the fact we’ve got the experience.
We provide solutions. We provide scouting services,
a lot of GPS services, and a good past relationship
with customers.
“We are not a company that needs a lot of
babysitting. We provide solutions. Our clients like to
deal with us. Th ey want to see us on site.
“We continually strive to improve methods of
operation and increase productivity. Our team holds
a unique pool of knowledge and experience.”
Bodnar say he is also busy because Maverick is
known to follow all of the safety practices in Western
Canada and boasts a zero incidents record to date.
It also helps that that Maverick operates their
own equipment transportation company with a fl eet
of semis and support vehicles.
“Our semis are dedicated to hauling out units,”
said Bodnar. “One feature that our customers like is,
when we take our mulchers to the job site, the trans-
port units stay with the machines rather than custom
haul.
“You can’t demobilize fast enough. By the time
you book a semi and get someone else to come up in
two or three days – we can react right now, load up
and get the heck going.
“We can mobilize and demobilize very fast to the
site. We also have special equipment that can haul to
the seismic program.
“If you have a larger winter program that is spread
out over a few miles, we can move our equipment
within that program as well.”
Maverick has a new mulcher that reaches 22 feet from the machine for those hard to get areas.
Photo submitted
Oilpatch relies on Maverick for mulching solutions
Pipeline News is a proud sponsor of the Lloydminster Lions Club 4th Annual Border Bike Rally
PIPELINE NEWS May 2010 A27
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Lloydminster 306-825-2062 Regina 306-721-9710 Saskatoon 306-933-4022
Kerrobert – Th e Kerrobert Bakery and Coff ee Bar is the most popular fi lling
station in town for many oil and gas workers on the go who stop by to top off
their stomachs with a hearty breakfast and lunch in a bag.
Th e oilpatch has been good to bakery owners Tammy and Leighton Krahn,
who bought the downtown business two and a half years ago, in time for a mini-
boom from local pipeline construction.
“Our fi rst summer was fi rst major pipeline coming through, and it was a huge
boom for us,” said Tammy during a busy lunch hour.
Based on feedback from that fi rst season, the couple now opens at 6 a.m. and
sometimes earlier to serve breakfast and make lunches for early rising oilfi eld
crews.
“Th ey really appreciate that especially since they start so early,” said Tammy.
“Some of the guys will order for the next day, and we will have it ready for
them in the morning. Th ey can grab it on their way to work.
“Sometime when they are having safety meetings they will order lunch from
us. Th at’s pretty big for us too.”
Lunch is a soup and sandwich concept with made to order subs and wraps
with a mouth- watering lists of meats, cheeses, sauces, toppings and baked bread
to choose from.
“Th e bakery is the main part of the business because we also supply grocery
stores in at least half a dozen other surrounding communities” said Tammy. “We
do a lot of wholesale baking for restaurants too.”
Th e Krahns bought the bakery to satisfy their own hunger to own a business,
although that meant giving up their professional careers.
Tammy worked at the Royal Bank while Leighton was employed by IBM.
“We both had professional jobs, but we both got tired of sitting behind a
desk,” explained Tammy. “Th is is totally diff erent. My husband was working in a
basement basically, and he needed to get out.
“He likes to be face to face with people. He loves to cook and he loves to be
able to cook for people. He starts at 3 a.m. and does all of the baking.
“He will deliver and then go and have a sleep and be back in the afternoon
to do some preparation for the next day. I manage the restaurant, and the front
end of it too.”
Th e Kerrobert Bakery has been a fi xture in town for over 50 years and has an
appealing funky atmosphere and décor.
Th e dining area features an old fashioned u-shaped lunch counter with swivel
chairs as the centre piece that is great for single eaters and conversations.
“I think the locals enjoy it,” said Tammy, who hopes the talks she hears at
bakery about another pipeline project are true.
“We are hoping for this other pipeline – we have heard it is this summer, so I
guess we will have to wait and see.
“It brings a lot of people in. If they are staying in the area, then we get the
ones coming in for breakfast fi rst thing in the morning or we are making a lunch
for them.”
Kerrobert Bakery goodies energize the local oilpatch
Waitress Amber Richelhoff and Tammy Krahn react to the punch line of a customer’s joke.
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PIPELINE NEWS May 2010A28
NW Sask - for all of your advertising needs contact: Ph: 780.875.6685 Fax: 780.875.6682
Email: [email protected]
SE Sask and SW Manitoba - for all of your advertising needs contact:Ph: 306.634.2654 Fax: 306.634.3934
Email: [email protected]
SE Saskatchewan and SW Manitoba
Jan BoyleSales Manager
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Over Over 28,00028,000 circulation circulation targeting the Oil and Gas Sector!targeting the Oil and Gas Sector!
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SW Sask - for all of your advertising needs contact:
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PIPELINE NEWS May 2010 A29
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2010 marks
17 years
Lloydminster – It’s
one of those win-win
deals. Western Plains
Petroleum Ltd., a Lloy-
dminster Alberta-based
junior heavy oil producer
has acquired a 50 per cent
stake in Nordic Oil and
Gas Ltd.’s land holdings
and heavy oil wells in the
Lloydminster area for
$2.5 million.
Th e agreement was
announced April 13 with
Western Plains paying
Nordic $2.1 million in
cash and $400,000 of its
Class A common shares.
Th e agreement pro-
vides Nordic with much
needed cash for further
capital expenditures in
the area while allowing
Western Plains to play its
strong card as an opera-
tor.
“We are indeed ex-
cited at the opportunity
of working with Nor-
dic Oil and Gas Ltd. in
Lloydminster,” said Da-
vid Forrest, president and
chief executive offi cer of
Western Plains.
“Our strength has
always been that of an
operator and together,
with Nordic’s strong land
holdings in the area, I’m
sure both companies will
signifi cantly benefi t from
this agreement.”
Forrest has more
than 15 years experi-
ence developing heavy
oil plays located around
Lloydminster and Maid-
stone.
He founded IC En-
ergy Ltd., a private oil
and gas exploration and
production company,
building production to
approximately 750 bar-
rels of oil equivalent per
day, with petroleum and
natural gas leases totaling
5,440 acres, before selling
to Arsenal Energy Inc. in
2005, for $10 million.
It is anticipated that
Western Plains will com-
mence bringing on the
fi ve new wells that Nordic
drilled at the end of 2009
as soon as possible, result-
ing in almost immediate
production.
In addition, Western
Plains will also turn its
attention to some of the
maintenance issues facing
Nordic’s other nine wells,
meaning that all 14 wells
are expected to be on full
production in short order.
Under the agree-
ment, Nordic will retain a
50 per cent interest in its
Lloydminster land hold-
ings and heavy oil wells
and is already eyeing new
opportunities for growth
in the Lloydminster area.
“Th is is a deal of sig-
nifi cant magnitude and
importance for Nordic
Oil and Gas Ltd.,” said
Donald Benson, president
and CEO of Nordic.
“Firstly, it provides us
with a much needed in-
fl ux of capital which will
allow us to move forward
on numerous fronts.
“Secondly, we could
not be more pleased to be
associated and working
with Western Plains, an
experienced, competent
and successful operator in
the Lloydminster region.
“I am confi dent that
with their skill and exper-
tise, we will see the value
of our property strength-
en considerably in the
coming months, leading
to solid cash fl ow and
many new growth oppor-
tunities for us in Lloyd-
minster,” he added.
“Furthermore, I see
this strategic alliance as
a stepping stone to oth-
er deals with Western
Plains down the road.”
Nordic Oil and Gas
Ltd. is a junior oil and
gas company engaged
in the exploration and
development of oil,
natural gas and coal
bed methane in Alberta
and Saskatchewan.
Western Plains buys a stake in Nordic’s Lloydminster oil play
Nordic Oil and Gas Ltd. has sold a 50 per cent interest in its Lloy-dminster heavy oil wells and land holdings to Western Plains Petroleum Ltd. Here, a Nordic well is drilled last November.
File Photo
PIPELINE NEWS May 2010A30
Phone (306) 825-6302 • Fax (306) 825-6305Box 796, 3702 41 Street Lloydminster, SK S9V 1C1
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of the Muscles.
Calgary –Smoother sailing is ahead for Diaz Re-
sources in 2010, as the Calgary gas and oil explorer
emerges from rough economic waters and the shelter
of heavy oil production in the Lloydminster area.
Diaz drilled three producing heavy oil horizontal
wells in the fourth quarter of 2009 and plans to put
them into production in coming weeks, according its
year-end results and reserves summary released April
1.
Th e company reports it has raised approximately
$1.2 million to fund its continuing Lloydminster
heavy oil development program and expects to exit
2010 with almost half of its production derived from
oil sales.
To further right its fi nancial ship in 2010, Diaz is
locking in approximately half of its anticipated 2010
natural gas prices at fi xed gas price contracts in excess
of $5.75 per Mcf, higher than current market values.
Th e new exploration and fi nancial course with
the focus on heavy oil follows a stormy 2009 as for
Diaz as noted in the summary.
Th e company’s total production for 2009 de-
creased 28 per cent to 642 barrels of oil equivalent
per day, compared with the prior year average of 886
BOE/d. Diaz’s total reserves before royalties at year
end were estimated at 3.8 million BOE.
In Canada, production for the year decreased
21 per cent as a result of the sale of production of
its Carmangay and Parkman fi elds and a signifi cant
drop in production from the Leahurst and Big Bend
fi elds.
In the U.S., production rates for the year fell by
45 per cent as mature well production declines com-
bined with the abandonment of the Black Owl fi eld.
Diaz was rocked by the eff ects of the global reces-
sion that nearly drowned the value of its U.S. natural
gas assets with an oversupply and drop in prices and
tightened borrowing in capital markets.
To keep afl oat, Diaz put in place fi xed gas price
contracts for half of its 2009 production and stepped
up its exploration and development on heavy oil proj-
ects.
Th e company also raised $4. 4 million in 2009
from the sales of properties in Canada and the U.S.
with plans to sell its remaining U.S. producing as-
sets, which area mostly natural gas, when gas prices
recover to more marketable prices.
Diaz’s fi nancial strategy, combined with some
fundraising, led to a reduction of debt from $8.5
million in January, 2009 to $5.8 million at year end
with available capital directed to exploration and
development in heavy oil.
In 2009 Diaz also acquired development proj-
ects in the Lloydminster Alberta area and in Shau-
navon, Bird Bear and Viking oil plays in Saskatch-
ewan.
Oil and gas explorer Diaz sails into calmer waters
Contact your local Pipeline News Sales rep.
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PIPELINE NEWS May 2010 A31
PIPELINE NEWS May 2010A32
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ALL Makes
By Geoff LeeRegina – Th e end of seasonal road bans incites
what Redhead Equipment Ltd. believes is one its
equipment sales wonders of the year at six locations
in Saskatchewan.
Th at’s the word from Craig Slobodian, sales
manager of Redhead’s construction division in Regi-
na, who said in late April, “As soon as road bans come
off , all hell breaks loose and our yard empties.”
Right now, the service side of the business is hav-
ing a fi eld day as Redhead’s service departments book
checkup appointments for the full line up of heavy
duty trucks and construction, agriculture, oil and gas
and forestry equipment the company sells.
“People are getting ready for a new season,” said
Slobodian.
“We see that on all sides. On the agriculture side,
guys are getting their equipment ready for seeding
and the construction guys – absolutely.
“Th ey are taking advantage of their uncontrolled
downtime due to road bans and making sure their
equipment is serviced and ready to go.”
Redhead also has approximately 30 fully equipped
service trucks to deliver vehicle and equipment ser-
vice in the fi eld.
“Redhead has built its reputation on service,” said
Slobodian. “We are basically like a lot car lot. We sell
it, service it, fi x it, sell parts, and we do rentals and
leases – basically touching all sectors of the construc-
tion equipment side.”
Redhead operates sales and service dealerships
for Case Equipment, Volvo Construction Equipment,
Mack Trucks and Case IH farm equipment in Lloyd-
minster, Saskatoon, Estevan and Swift Current.
Th e Regina sales location specializes in the sales
and service of construction equipment and trucks.
In general, the big movers in oilfi eld equipment
on Redhead’s sales lots are excavators, skid steers,
wheel loaders, crawler dozers, motor graders and
loader backhoes in many makes and models from
Case, Volvo, Terex, Takeuchi and Astec.
“With excavators you can do pipelining work
with them,” said Slobodian. “A lot of guys use wheel
loaders to move matting and pipe with pipe grap-
ples.”
Wheel loaders are often used for moving gravel
and dirt, while dozers and motor graders are often
put to work building or maintaining lease sites.
Th e backhoe is one of the most versatile vehicles
for all industry sectors with the Case backhoe top-
ping the sales charts at Redhead.
“It has a lot of history and a lot of features,” said
Slobodian. “A lot of guys have been running them
forever and when it comes time to buy another one
they look at Case.
“Case is in an innovator. Th ey have lots of produc-
tivity features and it’s just an overall industry leader.
Redhead has its roots in the construction equip-
ment market dating back to 1948, when it was a
Champion motor grader dealer under the name of
W.F. Fuller Machinery Limited.
Gordon Redhead bought and renamed the busi-
ness in 1968 keeping the head offi ce in Regina. His
son Gary purchased his father’s interest in 1980 and
still heads it today with more makes and models for
sale.
“Th e longest account we have is the construction
account,” said Slobodian. “We came from construc-
tion roots. Volvo bought Champion in 1997, and as a
result we were able to take on the full Volvo construc-
tion line.
“It’s been fantastic for us. Volvo has a great repu-
tation – good on fuel, quality and safety. Volvo makes
some equipment that is larger than what we have on
the Case side.”
Volvo makes rock trucks, motor graders, back-
hoes, excavators and loaders used by oil and gas com-
panies and contractors.
Redhead also sells a full range heavy haul trucks
by Mack including water trucks, pickers and vac
trucks for the oil and gas industry.
Th ey also sell some Astec horizontal directional
drill machines and a selection of mulchers.
Page B2
Redhead braces for après Redhead braces for après road ban sales frenzyroad ban sales frenzy
Case and Volvo construction equip-ment are prominently displayed at Redhead Equipment in Lloydminster.
PIPELINE NEWSSaskatchewan’s Petroleum Monthly
B-SectionMay 2010
PIPELINE NEWS May 2010B2
Redhead equipment built on diversityRedhead equipment built on diversity Page B1
All Redhead locations off er customers short and long term rentals, rental
purchases and sales of rental equipment.
“Redhead has built the company on diversity,” said Slobodian. “If one sector
seems to slide a little bit, we’ve got another one that takes off .
“Every once in a while like in 2008, you have a year when all cylinders fi re and
there is no downside.
“Last year construction was down a bit and agriculture was up. All predictions
are that things are going to take off this year.
“Th e reports were that oil needed to be stable in the $70 to $80 (per barrel)
range, and we’ve been there now for awhile.
“We’ve got that stability going and we are into a new year with new
budgets for most of the oil companies.
“Saskatchewan doesn’t seem to be developed to the extent that Al-
berta has, so there is still a lot of exploration and drilling going on. Th ere
is a lot of new activity going on.”
Slobodian sees stronger oil activity ahead at all sales points with Es-
tevan, Swift Current and Lloydminster leading the way along
with steady growth in the agriculture sector.
“In Saskatchewan, it seems that every farmer has another
job,” said Slobodian.
“A lot of those guys who are work-
ing in the oilfi eld also farm on the
side. It does quite well for us. A lot
of our customers deal with multiple
sectors of our business.
“Farmers need to move grain so
they need trucks. Farmers have drain-
age problems so they need to dig a
trench with a backhoe or bury rocks.
Th ey use skid steers to feed their cat-
tle. It all keeps feeding each other.
“Th ere are a lot of guys who farm
who maybe drive a water truck or they
have a backhoe that they run as a contract in
the oilpatch and all that kind of stuff . Lots of
guys have duel jobs.”
Slobodian doesn’t expect a return to the boom times soon but the memory of
the “call of Alberta” as he puts it is still fresh in his mind.
“We had guys from all parts of Saskatchewan going and taking contracts in
Fort McMurray and Conklin and wherever,” he said.
“Because their roots are here, there were buying equipment here and taking it
up there to make their fortune.”
This Volvo wheel loader is made for moving gravel and earth. Rick Allan at Redhead in Lloydminster says the major manufacturers are focusing on reducing emissions to the highest Tier 4 standards.
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PIPELINE NEWS May 2010 B3
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Making Waves in the Oil Patch
Lloydminster – As the steel frame
begins to rise for the new Th orpe Re-
covery Centre (TRC) so do expecta-
tions that the $16.25-million addic-
tions treatment facility will meet its $3
million capital funding raising target.
Th e Alberta government is con-
tributing $10 million toward the
capital cost with balance of funds
anticipated from the federal and Sas-
katchewan government.
Th e TRC has raised just over $1
million in its Building Hope Cam-
paign.
Plans are afoot to launch the fi nal
community-wide phase of its Building
Hope Campaign in June, but that’s
not stopping oilpatch companies
from continuing to donate to the cur-
rent leadership and major gift giving
phase.
“Th e building project started in
spring of 2009, and we really got ac-
tive in fundraising later last year in ap-
proaching industry,” said Stan Parke,
marketing coordinator.
“It’s been in what we call the quiet
phase. We haven’t made a big public
notice about it yet. Th at’s coming up
in June.
“It’s pretty public now, but we
haven’t put up a ‘thermometer’ yet or
put notices in the paper. We are ex-
cited.
All industries are telling us they
are coming off a tough year. We un-
derstand that, but we’re excited.”
Enthusiasm grows as large do-
nations make the news including
$125,000 from Husky Energy in
March for the naming rights to the
new youth dining room.
Grit Industries Inc. and Grithog
Sand Control Systems got the ball
rolling in February with their com-
bined $100,000 donation for the nam-
ing rights for two lecture rooms.
“Th ere are several diff erent lev-
els of naming rights left,” said Parke.
“Th ere’s the adult dining room as an
example.
“Th e biggest of all is the gymna-
sium. We’ve got everything from lec-
ture rooms and counseling rooms to
outdoor recreation courts and walking
paths that we have naming rights for.
Th ere are lots of opportunities.”
Th e Building Hope Campaign
also extends to local service clubs,
TRC board member pledges and do-
nations from recovered clients and
their respective family members.
“Th e next phase breaks out into
our community division,” said Danika
McCullogh fund development coor-
dinator. “Th at will include all aspects
of the community.”
“Because we are still in that quiet
phase, we don’t want people to know
about the whole donation process yet.
We are still trying to work around
more of the businesses in our leader-
ship and gift phase fi rst.”
Th e new TRC will provide a wide
range of services and support for
youths and adults seeking recovery
treatment for alcohol, drugs and gam-
bling addiction.
Th e facility will feature a 72-bed
residential treatment program and a
full suite of detoxifi cation, outpatient,
prevention services, post treatment
programs and family programs.
Th e new centre will make room
for 42 adult and 10 youth residential
treatment beds and 20 detoxifi cation
beds, up from the six in the existing
centre.
Tours of the new TRC will be
available as construction progresses
and Parke says he is eager to share
“our hope and vision” with oil compa-
nies who want to donate.
“Th e thing they need to know is
that when they are donating we are
accredited, but they are also making
a diff erence in people lives,” he said.
“We have being doing this since 1975
and we will make a diff erence.”
Parke is touring and speaking
with oil and gas companies in Alberta
and Saskatchewan where he says they
are beginning to see addictions in
the workplace as an occupational and
safety issue.
“Th e oil companies that have
stepped forward are very strong sup-
porters of us,” said Parke. Page B5
In the market for Thorpe naming rights
Management teams from Grit Industries Inc. and Grithog Sand Control Sys-tems Ltd and the Thorpe Recovery Centre visited the construction site of the new Thorpe centre in Blackfoot, Alta., west of Lloydminster. Grit do-nated $100,000 toward the cost of the new addictions treatment centre.
Photo by Grit Industries Inc.
Lloydminster Paint& Supplies Ltd.
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PIPELINE NEWS May 2010B4
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Lloydminster – If methane leaking from pipelines
were a clearly visible gas, phones would be ringing off
the hook to authorities to halt emissions, as methane
is 22 times more potent than CO2 as a greenhouse
gas.
Methane leaks from pipeline systems average ap-
proximately four million cubic feet per year, per leak,
and some of the largest leaks can emit more than
250,000 cubic feet of gas per day.
Th ese are some of the more alarming facts that
caught the attention of the March Lloydminster SPE
Lunch ‘N Learn audience during a presentation on
pipeline leak detection by Peter Wolski, president of
Gas Trak Ltd. in Medicine Hat.
Gas Trak is the developer of the SuprSnifr fl ame
ionization system that companies such as Pro Line
Locators in Lloydminster, Line Hunters Locating
in Drumheller and First Alert Locating in Grande
Prairie are using to detect pipeline leaks in Alberta
and Saskatchewan.
From 2000 to 2008, Gas Trak and its service pro-
viders, located 978 methane leaks, with more to be
added to the database from the last couple of years.
“Gas leaks result in the loss of a valuable resource
to the point of sale,” said Wolski, who noted the av-
erage leak costs producers about $50,000 a year in
the value of natural gas. It can also cost them ap-
proximately $35,000 to clean up soil contaminated
by produced fl uids.
Most leaks are primarily attributed to inter-
nal corrosion from sulphur reducing bacteria while
a small number are due to mechanic damage from
equipment, faulty welds and lightning.
Any produced fl uids spilled on the ground can
cause the soil to become hydrophobic, eventually de-
stroying surrounding crops and vegetation.
Wolski says the traditional and alternative meth-
ods of detecting pipeline leaks, including walking or
riding an ATV over the right of ways or aerial sur-
veys, can’t compare to the SuprSnifr when it comes to
speed, accuracy, cost eff ectiveness and safety.
Th e SuprSnifr uses an extremely sensitive and
stable fl ame ionization device mounted inside a
pickup. Th e truck is driven downwind of a pipeline
and the air is sampled continuously for hydrocarbons
through a calibrated collection apparatus.
“It’s an amazing tool for integrity management.
Companies are using this as a maintenance tool. We
conduct regular surveys as part of their due diligence,”
said Wolski.
“It’s the only real way they can know if their
pipeline systems are intact without having to shut ev-
erything down and do a pressure test.
“Th e cost of doing that is much more than us-
ing us, and we can fi nd much smaller leaks using our
system than doing a pressure test.
Page B6
Gas Trak SuprSnifr has a nose for pipeline gas leaks
Companies recognize addiction problems Page B3
“Th e industry recognizes the safety issues around people either working while
impaired or under an addiction of some sort. It’s a huge safety risk to these com-
panies and they recognize that.
“Because of the way we are structured we can off er almost immediately a bed
on a self-paid basis.”
Th e TRC operates as a nonprofi t society and also administers Harris House,
a 14-bed post treatment residence for men located downtown Lloydminster.
TRC will continue to operate its downtown outpatient and walk-in centre
that provides counseling, workshops and community awareness and prevention
services.
Th e current three-day program for families and friends of people in treat-
ment will expanded at the new TRC, located west of Lloydminster near Black-
foot on Highway 16.
Th e existing building has been sold and program inquiries are up as word
spreads about the construction of the new centre and its treatment programs.
“If oil and gas companies are looking for information on how to build a pro-
gram or how to build a drug policy, they can give us a call,” said Parke.
“We will come to you and give you a structure and something that will start
to work. We all know what to do when a person has an accident – we phone 911.
For addictions, 911 is not going to work.”
Parke says the questions he’s hearing from people in the oilpatch are, where
do I turn and who do I call?
“People have a legal obligation to seek treatment for employees,” said Parke.
“Addictions are recognized today more and more as a disease and therefore you
can’t turn a blind eye. Call us.
“An employer is a very powerful individual when it comes to seeking an em-
ployee’s treatment. We like to think that we off er a good solution.
“We also work with other professionals. We work with concurrent disorders.
We are one of the leaders in embracing that idea.”
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IF IT IS BIG N’ UGLY WE CAN HAUL IT!
PIPELINE NEWS May 2010B6
Most leaks have no visual indicators Page B5
“Also 90 per cent of leaks have no visual indicators.
Th e old way was vegetation surveying, but it can take
an enormous amount of methane before you detect
damage.”
Wolski noted it can cost between $60 to $100 per
kilometre to conduct an over-the-line survey on foot
or using an ATV, making it prohibitively expensive to
do an entire pipeline system on a consistent basis.
Woloski also noted the SuprSnifr method of de-
tecting pipelines is a lot safer that an over-the-line sur-
vey, as it can be done from a truck one mile from the
source.
“We are as safe as any motorist driving down the
road. We know before we go into the leak that’s it’s
already there, and we know where it is and how big it
is,” he said.
“It’s way safer especially on the sour gas systems.
With H2S, you have to worry about the person who is
doing the surveying collapsing in the fi eld.
“In most cases, they require two people plus a
backup and self-contained breathing apparatus so they
can go in safely and look for leaks.”
When a leak is located using the SuprSnifr, the
client or producer is notifi ed that they have a leak or a
suspected leak.
“Th ey can shut it down and bring in sweet gas if
it’s possible and we can pinpoint it that way or they can
just go look for evidence on the surface,” said Wolski.
“We can pinpoint it on the ground with a stake.
Th at’s the starting point for repair.”
Th e downside of the SuprSnifr is that readings are
not as eff ective or accurate in temperatures above 15
Celsius, but Gas Trak schedules most of its surveys be-
tween fall and spring or at nighttime.
Other gas leak detection technologies on the mar-
ket include passive infrared multi-spectral scanning,
laser-based diff erential absorption, hyperspectral im-
aging and tunable diode laser absorption.
Wolski reports the SuprSnifr boasts a detection
success rate close to 100 per cent in year-over-year
comparisons with ATV surveys on a large gathering
system with good visible trench lines.
Gas Trak grew 40 per cent a year for fi ve years
starting in 2004 to meet the demand, but business has
slowed recently with the drop in natural gas prices and
regulations in Alberta that mandate the need for a vi-
sual inspection.
“It’s the legislation, the way it’s written, that hin-
ders our progress because they (Alberta Energy and
Utilities Board) have made a visual inspection manda-
tory, and ours is not a visual survey even though our
system is much better at detecting leaks than any visual
survey could be,” said Wolski. “We are being sidelined
by a regulation.
“Because these companies are required to do that
at much more expense, they are not going to add a
duplicate service or do leak detection our way, even
though they know it’s not eff ective to do the right of
way inspections.”
On the bright side, Wolski says the demand for
pipeline leak detection is not just about due diligence
anymore for pipeline operators and producers.
“It’s about looking after environmental concerns,”
he said. “Th ey are looking for a solution, and up un-
til recently, we have not been big enough to provide a
solution blanket to the industry. We can only accom-
modate so much.
“Th at’s why we joined forces with Pro-Line Loca-
tors, First Alert Locating and Line Hunters Locating
so we are covering the province. Within a year, we will
be able to off er this to everyone.”
PIPELINE NEWS May 2010 B7
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PIPELINE NEWS May 2010B8
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Kerrobert – Hav-
ing blue chip companies
such as Nexen Canada,
Penn West Petroleum,
Enbridge Inc. and Plains
Marketing Canada in
their backyard motivates
Rev Energy Services Ltd.
in Kerrobert to beef up
their pipeline construc-
tion and oil maintenance
services to stay competi-
tive.
Rev Energy, owned
by Brian Burgardt, is
currently constructing a
bigger shop in the new
Burt Sample Industrial
Park at the south end of
town.
Th e new 300 by 110
ft. building will house
new pickers and track-
hoes along with exist-
ing maintenance trucks,
sandblasting and coat-
ing units, Bobcats, and a
loader, and will include
a fabrication/ welding
shop.
“We have been work-
ing with Penn West in
the Coleville and Hoo-
sier area for 15 years,
and we have taken on a
number of their tasks,”
said Frank Beausoleil,
Rev’s area supervisor
who spoke in Burgardt’s
absence.
“We have set up
for batteries, single well
completions and pipe-
lining, and are expanding
into the construction side
of the oilfi eld because we
felt there was a need for
it in this area.
“Th at’s why we are
expanding into the new
shop. We’ve got three
brand new trackhoes and
some new pickers rang-
ing from three tonne to
20 tonne.
“Right now, we are
doing a lot of “integrity”
digs for Enbridge, and
we are hoping to expand
that to Plains Marketing
and other companies that
need that type of work.”
An integrity dig in-
volves a variety of servic-
es from stripping, dig-
ging, sandblasting, pipe
checking, repairing pipe
(sleeving), coating, back
fi lling and reclamation.
Rev Energy also handles
all kinds of gravel prod-
ucts.
While pigging tech-
niques are being devel-
oped to locate and size
what’s called Stress Cor-
rosion Cracking (SCC)
in pipelines, the indus-
try still relies heavily on
manual inspection of the
pipe at various locations
to identify cracking.
In the Kerrobert
area, Rev Energy is called
upon often by Enbridge
to excavate sections of a
pipeline and remove the
protective coatings for
an inspection of the area
with magnetic particle
testing to locate and as-
sess the SCC area. Re-
pairs then follow.
“We have been do-
ing corrosion and SCC
digs for Enbridge for 17
years,” said Beausoleil,
who noted the compa-
ny has been around for
nearly 20 years.
“We basically set up
for Enbridge, but now
we are equipped to han-
dle any other customer.”
Rev Energy works
in tandem on integrity
digs with KB Sandblast-
ing and Coating Inc., co-
owned by Burgarht and
Scott Kissick.
“We blast for cor-
rosion or cracks or just
to maintain pipe,” said
Brenden Wilson, who
operates a sandblasting
unit on pipelines.
“We will sandblast it
to remove coatings and
heat it up for an X-ray.
If the client has to, they
will hang a sleeve (weld-
ed section) over top, and
we will come back and
sandblast again, and
paint it, and coat it.”
Rev Energy can also
respond to year-round
emergency digs and ac-
tively markets its safety
credentials with its Cer-
tifi cate of Recognition
(COR), IRP-16 basic
safety awareness training
and registration with IS-
Networld.
“When you have
companies like Nexen
and Penn West, En-
bridge and Plains – they
are all in your backyard
– they are the custom-
ers we want to look after
110 per cent,” said Beau-
soleil.
“With our oilfi eld
maintenance work, we
like to stay within driv-
ing distance of Kerrobert.
We do a lot in the Luse-
land, Coleville, Dodsland
and Plenty area.
“We don’t want to
have to drive out to Swift
Current or Hardisty. We
want to look after our
number one customers
right here.
“All of our guys have
to have their tickets be-
fore they can go on site,
and they are working ac-
cording to required safe-
ty codes and company
regulations. “
Rev Energy also
boasts quality control or
QC pipefi tting and QC
welding capabilities and
employs a safety coordi-
nator and a licensed gas
fi tter on staff .
“Diversity gives
us a lot of strength,”
said Beausoleil. “With
Petrobank out there, for
example, we can also do
steam fi tting, so if they
require some mainte-
nance work, we have the
people on staff that can
do that too.
“A lot of companies
nowadays like to make
a one-shop stop, so it
helps us big time, when
we go out there and they
need equipment.
“With our equip-
ment, the key there we
feel is [that] we have all
new equipment.
“Th e number one
thing we stress is that
we have operators with
three to four years of
hot line (pipelines with
fl uid) experience. Th at is
key.
“A lot of companies
have trouble keeping op-
erators. If I promise you
a hot line crew – if we’re
digging around the hot
line of one of Enbridge’s
large pipes – we have the
most qualifi ed and certi-
fi ed persons to go out on
that site.”
Rev Energy has
about 14 employees and
three or four crews that
also do oilfi eld main-
tenance, completions,
well tie-ins and pipefi t-
ting for a growing list of
clients including Penn
West, Nexen, Baytex,
BP Canada and Inter
Pipeline.
Beausoleil hopes to
do more business in the
future with Plains Mar-
keting that recently built
a new shop in Kerrobert
after moving some of
their operations from
Lloydminster.
“Plains is putting in
a pipeline up by Slave
Lake and we will be bid-
ding on that,” said Beau-
soleil. “Th e way we are
set up for construction,
we can go to the Mani-
toba border or northern
Alberta or wherever.
“I have meetings
with their people and
hopefully, we will have
a good relationship with
Plains to get things es-
tablished.”
Rev Energy expands its oil eld construction footprintRev Energy expands its oil eld construction footprint
Frank Beausoleil reports Rev Energy now has six pickers in its eet, including this 4-ton beast used for oil eld construction. Photo by Geoff Lee
PIPELINE NEWS May 2010 B9
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Calgary - A refi nanced and oil-weighted Wild
Stream Exploration Inc. announced plans for an ac-
tive drilling program this year.
Based on several acquisitions in the fi rst quar-
ter and better-than-budgeted drilling results, Wild
Stream set its 2010 exploration and development
capital budget to $60-65 million with increased drill-
ing expected in all core areas.
Wild Stream is the former Eagle Rock Explo-
ration Ltd., which was recapitalized, renamed Wild
Stream and given new management and directors.
Th e company achieved a 100 per cent success
rate on the fi rst quarter drilling program in which 11
gross (9.4 net) crude oil wells were drilled.
In the Shaunavon Area, Wild Stream drilled
four gross (3.2 net) Lower Shaunavon horizontal
wells. Two gross (1.9 net) have been on production
for multiple weeks with rates in excess of 100 bbls/d
of oil from each well. Two gross (1.3 net) wells are in
various stages of completion.
Th e company drilled one gross (0.93 net) Up-
per Shaunavon horizontal well. Th e well is currently
producing at rates exceeding 125 bbls/d of oil sig-
nifi cantly above initial expectations.
Wild Stream implemented the fi rst phase of
their waterfl ood in the Upper Shaunavon formation
which is expected to see positive results by the fourth
quarter of 2010.
Th e company also acquired 10,300 net acres of
exploration acreage in the Upper and Lower Shau-
navon fairway.
Around Dodsland, Wild Stream drilled three
gross (3.0 net) Viking horizontal wells. All wells
have been placed on production with average initial
production rates exceeding 50 bbls/d of oil per well.
Th ey have also acquired an additional 1,920 net acres
of highly prospective Viking lands in the Dodsland
area.
In Garrington area of Alberta, the company
drilled one gross (1.0 net) Cardium horizontal well. It
is producing at a restricted rate exceeding 200 bbls/d
of oil. Th ey also drilled one gross (0.75 net) Viking
horizontal well. It was operationally successful, how-
ever the well is producing at lower than expected
rates, according to a company release. A follow up
Viking horizontal evaluation well will be drilled in
the third quarter.
Based on its revised capital budget, Wild Stream
now expects to drill 16 (14.4 net) horizontal wells in
the Shaunavon area, 12 (12 net) horizontals in the
Dodsland area, six (5.2 net) horizontals in the Gar-
rington area and two (1.5 net) wells at unspecifi ed
locations.
Th e company now expects average production of
more than 1,700 bbls of oil equivalent (90 per cent
oil) a day with a 2010 exit rate in the range of 2,200-
2,300 BOE a day, which would be a 280 per cent
increase its 2009 exit rate.
Wild Stream budgets $60-65 millionExploration and development budget increased
PIPELINE NEWS May 2010B10
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Kerrobert – Rock
chips, wildlife collisions
and other fender bend-
ers send a lot of personal
and corporate oil patch
vehicles to Kerrobert
Paint and Body Ltd. or
KPB.
From now on, all
paint jobs or touch ups
at KPB will be made
with water-based paint
that can turn any vehicle
into a looker.
KPB completed a
$300,000 switchover of
its solvent-based paint
system to water based in
early April, and business
owner Richard Ander-
son is excited with the
initial results.
“It’s the best paint
I’ve ever seen as long as
I have been in the indus-
try, and I’ve seen pretty
much every brand that’s
been used since day one,”
he said.
“Water-based is
more durable; the clear
coats don’t sun fade, and
it’s more environmen-
tally friendly. Th at’s the
main reason for this.”
Th e switchover is in
keeping with new Envi-
ronment Canada regu-
lations that require col-
lision repair facilities to
use only low volatile or-
ganic compound (VOC)
undercoats, clear coats
and surface preparation
products by June 18,
2010.
Environment Cana-
da’s regulations prohibit
the sale and import of
non-compliant prod-
ucts.
Th e new law
prompted Anderson to
upgrade his air move-
ment systems, tempera-
ture and humidity con-
trols, and invest in new
peripheral equipment
and training in order to
be compliant.
“Th is is the biggest
switchover we’ve had,”
said Anderson, who
started the company in
1974.
“We built a new ad-
dition on the back and
put in a new state-of-
the-art paint booth, get-
ting ready for this wa-
ter based paint. We are
pretty excited about it.”
Anderson has yet
to formally broadcast
the new improvements
to the community, but
when he does, oilpatch
workers will be one of
his target audiences.
“Th e oilfi eld brings
us all kinds of work. Th e
employees bring their
vehicles in, of course,
and the oil companies
bring us all kinds of
work. Th ey are a large
presence in our area so
they have a lot of vehi-
cles,” he said.
“Th ey come in for
various mishaps. Deer
hits are the most com-
mon ones we see. We do
a lot of their suspension
and front end needs as
well.”
As a collision re-
pair shop, KPB per-
forms wheel alignments
and repairs suspensions,
brakes, and air condi-
tioning systems along
with complete auto body
repairs and glass instal-
lations.
Th e only thing they
don’t do is work on mo-
tors or transmissions.
“Our main business
is the collision industry,”
said Anderson, who says
the new paint system
supports KPB’s niche
as a quick turnaround
shop.
“We are able to get
the vehicles in right away
and done right away and
keep our customers on
the road,” he said.
“So many people
in the oilfi eld use their
vehicle for work. Th ey
can’t do without it. Our
goal is to get the vehicle
fi xed properly and back
on the road real quick.”
Anderson sent three
of his employees to Van-
couver for a week of
training on the water
based system while an-
other employee logged
six weeks of training at
SIAST in Saskatoon.
“My staff is very ex-
perienced,” said Ander-
son during the week of
the changeover.
Page B11
Kerrobert body shop primed for vehicle mishaps
Company owner and former Kerrobert mayor, Richard Anderson has completed a $300,000 switcho-ver to water-based paint at his paint and body shop.
PIPELINE NEWS May 2010 B11
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Page B10“Some of the men
have been painting for
20 to 30 years already. It
was just a matter of go-
ing to school and learn-
ing any techniques that
go with water-based. It’s
fairly similar to spray on
as the previous paints.
“We’ve all been fully
trained, and the DuPont
rep is here for a week to
help with the changeover.
We feel really comfort-
able with it already.”
Ditto the endorse-
ment from 30 year vet-
eran painter Rick McNi-
col, who thinks the new
water-based paint will be
more abrasive resistant
to rock chips while driv-
ing on gravel roads in the
oilpatch.
“Th e water-based
paint is far superior to
anything I have ever
worked with,” he said.
“It’s a stronger base,
and it should retain its
integrity out here es-
pecially because of the
gravel that we get.”
Th e timing of the
switchover is expected to
work in Anderson’s fa-
vour as everyone in town
is expecting more oilfi eld
activity and road traffi c
this summer.
As a former mayor of
Kerrobert, Anderson says
any kind of new infra-
structure project, pipe-
line or drilling program
is good for business.
Th e last mini-boom
stretched from the fall
of 2008 through 2009
with various phases of
the construction of the
interprovincial Alberta
Clipper pipeline built by
Enbridge Pipeline Inc.
“With pipelines, you
get the transient work-
ers and they’re good for
business” said Anderson.
“It’s good for the restau-
rants and the hotels, but
we also have the perma-
nent employees who live
here.
“Th ey tend to be
good citizens involved
in the community. It re-
ally helps out the town to
have a good oilfi eld pres-
ence.
“It’s good for the
economy, and good for
all our businesses. We are
taxed to the limit some-
times, but we appreciate
the opportunity to be
that busy.”
Over the years,
Anderson has seen his
business grow from two
employees to 11 em-
ployees along with the
pace of the oil and gas
economy.
“I am positively
surprised by the growth
of the industry,” he said.
“It’s good to see. It’s
been a real boom for
our community.
“We also seem to
have more wildlife col-
lisions in the area and
we have our fair share of
fender benders as well.”
Matt Davis applies water-based paint to a vehicle part inside KPB’s pres-surized paint booth. Davis was once a Canadian Idol contestant.
Photo by Geoff Lee
Brennan Murphy, a frame and suspension technician performs service work on a Volkswagen.
Busy body shop
B12 PIPELINE NEWS May 2010
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Estevan – Pure En-
ergy beat out Fusion 7-1
in the fi fth end to win the
Estevan Oilfi eld Techni-
cal Society (OTS) Oil-
men’s Bonspiel on Mar.
28.
Th e event ran Mar.
25-28, and was the cul-
mination of the oilmen’s
bonspiel season in the
southeast.
“He didn’t have much
to shoot at the whole
game. My guys were
all shooting good,” said
Duane Lamontagne, the
victorious skip. His team
was made up of lead Jim
Blanke, second Michael
Bunz and third Aaron
Lamontagne.
“My style of game is
to have a lot of rocks in
play,” Duane Lamontagne
said.
“We stole one in the
third, two in the fourth,
and two in the fi fth,” he
explained.
Lamontagne said
there were lots of good
teams at this year’s OTS
Bonspiel, and that the ice
conditions were excellent.
Th e B-Event fi nal
lasted the longest of the
last draw, with Estevan
Meter coming out vic-
torious over Syntech.
Th ey played shorthanded
much of the tournament,
including the last game.
Skip Curt Johnson said,
“We kept drawing to the
button.
“Th ey tried to take us
out, then we drew. We hit
his back onto theirs, and
spilled out two red to keep
the yellows,” he explained
of the last shot. Th e fi nal
score was 9-7.
Th e C-Event went
to Jerry Mainil who beat
out Weatherford ALS
7-4. “It started out with a
steal of one, then we gave
up three. Th en we took
our own three to get back
in the game, and we stole
from there,” explained
skip Michael Mainil
Epping Energy took
the D-2 event, winning
6-3.
Brent Gedak Welding
was victorious in the D-1
event. Skip Brent Gedak
said, “We got a four-ender
in the fi fth end. X-site lost
a player who had to leave.”
Th e game wrapped up in
fi ve ends.
Th e bonspiel featured
54 times, down from 64,
according to OTS presi-
dent Jeff Mosley. At the
time of the tournament,
he said people are still re-
ally busy.
It’s typical for the
OTS to make a chari-
table donation from the
event. Mosley noted that
the OTS had paid off its
commitment to the new
Estevan arena several
years ahead of schedule.
“We’ve got some
ideas, we haven’t made
any fi nal decisions yet,” he
said.
Th e bonspiel had
curlers from all over West-
ern Canada, and features
breakfasts on the Friday
and Saturday. Th e ban-
quet took place on Friday,
Mar. 26. One company
came forward this year to
provide shuttle service all
weekend.
“All indications are
we’re in for a busy year
in the oilpatch,” he con-
cluded.
Pure Energy was the championship rink for the Estevan OTS bonspiel, Mar. 25-28. They beat out the Fusion team. From left are lead Jim Blanke, second Michael Bunz, third Aaron La-montagne, and skip Duane Lamontagne.
Pure Energy winsPure Energy wins
PIPELINE NEWS May 2010 B13
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The B-Event winners played shorthanded most of the tournament. They were, from left, third Seteven Chernenuk, skip Curt Johnson, and second Duane Martin. Missing is Chris Roche, who helped out.
C-Event winners Jerry Mainil were, from left, lead Calvin Tracey, second Bruce Miller, third Jeremy Maurer, and skip Michael Mainil.
There was plenty of action on all sheets of ice during the Estevan OTS Oil-men’s Bonspiel.
TS&M skip Arnold Marcotte throws a rock in the D-2 event nal at the Este-van OTS Oilmen’s Bonspiel.
PIPELINE NEWS May 2010B14
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Regina – Th e boardroom table is
covered with geological surveys, and the
laptop on it has similar information on its
screen. Two men, a banker and a geolo-
gist, have been pouring over it, preparing
for the next Crown land sale. Welcome to
the birthplace of a new wildcat exploration
fi rm.
Perhaps birthplace is a bit of a misnomer,
as the company fi red up six months before, and
started buying land four months ago. Th e start-
up, Kingsland Energy Corp., is focused on fi nding
and developing new oil resources, and is still in its
infancy.
Mark Kilback and his partners are heading up
the eff ort, which is based at the offi ce of their
core business interest, Kingsland Capital.
It’s a Regina-based, energy industry mer-
chant bank, with its offi ce at the Innova-
tion Place research park, on the Univer-
sity of Regina campus.
“Our team is excited to pursue large
Saskatchewan oil resources,” Kilback says
over a coff ee in the atrium of Th e Terrace
offi ce building. “We’ve identifi ed some
exciting exploration projects and have be-
gun to secure strong land positions.
“We will leverage innovation and
technology to assist in developing these
assets. Th is industry is very competi-
tive. New exploration technology
and the skills and the global expe-
rience of our engineering team are
strong diff erentiators for us. Th e
experienced engineering team has
previously successfully developed
resources in Western Canada as
well as several projects overseas,
primarily in Iran and Chi-
na,” Kilback
says.
“We are also very fortunate to be working with
some of the top geologists in the province; I’m excited
how our team has come together.”
Kilback off ers some clues as to what they’re af-
ter. “We’re not only in the heart of the Bakken,” he
explains, as they have land interests all through Sas-
katchewan.
In addition to the Midale, Bakken, or the Torquay
(also known as the Th ree Forks-Sanish) zones, they are
also looking deep – very deep. Th ey have the engineer-
ing capabilities of looking right above the ‘basement,’
in the rocks formed during the Ordovician period. Th e
‘basement’ is the bedrock below the sedimentary rock
in which petroleum reserves form.
Th e company’s engineers have worked with deep
formations overseas, where it’s not uncommon to drill
deep, so they have no apprehension to do the same
here.“Th ere are a lot of deep drilling prospects in the
province. Th e challenge will be in developing the res-
ervoir.”
“We’re really trying to stay off the beaten path, to
use our experience, technologies and knowledge.”
“Th e time is right. I’m a believer in ‘peak oil.’ I
think we’re on the other side of that trade,” Kilback
says, adding there is some euphoria back in the energy
capital markets. He refers to the launch of new fi nan-
cial products enabling investors to trade oil and gas
commodities in a sophisticated way. “I’m a believer in
long term higher oil prices, absolutely.”
Kilback says, “We’re wildcatting. We’re going to
areas where there’s going to be the next big play and
signifi cant opportunity. We’ve acquired strong initial
land positions, and we’ll be looking at additional free-
hold and Crown land opportunities in the upcoming
months.”
As for putting holes in the ground, Kilback says
that’s a year down the road. “We’re going to target next
summer (2011), right after breakup.” Th e initial drill-
ing activity would primarily be vertical exploratory
wells for core analysis.
Asked how many wells they are looking at, Kil-
back laughs. “We’re focused on securing the resource,
and drilling the exploratory wells as required. Our
team is working hard to fully understand the resource
before we develop a comprehensive drill program.”
Pipeline News will be following the progress of
Kingsland Energy Corp in the coming months as it
goes through the early stages development for a junior
oil producer.
Mark Kilback and his partners are leveraging innovation and technol-ogy to uncover oil resources in Sas-katchewan.
Kingsland Energy Corp. in launch phase
B15PIPELINE NEWS May 2010
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Bismarck, ND – In March, Ron Ness, presi-
dent of the North Dakota Petroleum Council,
predicted there would be 1,500 to 2,000 registered
participants attending this year’s Williston Basin
Petroleum Conference. By April 20, that number
was already confirmed at over 1,900.
The Williston Basin Petroleum Conference
will take place in Bismarck, North Dakota, May
2-4. The conference is titled, “Bakken and Be-
yond!”
The conference alternates between Saskatch-
ewan and North Dakota each year, with the gov-
ernments of each jurisdiction playing a part. The
Williston Basin encompasses southeast Saskatch-
ewan, southwest Manitoba, northeast Montana
and much of western North Dakota.
The booths sold out months ago, and now the
core workshops are full, too. There will be 300
exhibition booths, double what they had in 2008.
There are also 25 outside exhibitors. If you want
a hotel room, you’re going to have to look in the
surrounding area, according to conference organiz-
ers. Th ey are still taking registrations, and do not
have an upper limit.
In previous years, the conference usually has
featured numerous speakers all addressing one large
group. However, with its sheer size this year, only
the keynotes will be speaking to one large group.
Th e rest of the sessions will be in smaller groups in
a breakout format. Th ere will be as many as three
diff erent sessions to choose from at a particular
time. There are over 70 speakers lined up.
North Dakota Governor John Hoven is one
of the keynote speakers. Saskatchewan Minister
of Energy and Resources Bill Boyd is also con-
firmed to speak
Other keynote speakers of interest include
Clarence Cazalot, president and CEO of Mara-
thon Oil Corp., James Volker, president and
CEO of Whiting Petroleum Corp.
On the web:www.ndoil.org
Williston Basin Petroleum Conference to set record
PIPELINE NEWS May 2010B16
NEW LOCATIONNEW LOCATIONQuality Control Cerfti ed Welding Shop
• Skid Packages • Header Packages• Vessel Packages • Pressure Piping Systems
• Rig Repairs • Rig Matting
BRENT GEDAK WELDINGBRENT GEDAK WELDINGVisit our new location atVisit our new location at
126 Lamoro St.126 Lamoro St. just off Hwy 39 W. of Estevanjust off Hwy 39 W. of Estevan
Of ce: (306) 634-5150Of ce: (306) 634-5150Cell (306) 461-9946Cell (306) 461-9946
Fax: (306) 634-5148Fax: (306) 634-5148www.brentgedakwelding.comwww.brentgedakwelding.com
By Brian ZinchukSaskatoon – After spending several years in the
crucible of cellular phone development, and having
just completed a PhD in electrical engineering, Dar-
ryl Jessie wanted a simpler life for his family. Five
years down the road, his company, Saskatoon-based
Raum Energy, is now making small wind turbines
that are meant not only to provide green energy, but
are also economically feasible.
A professional engineer, Jessie is the president
and CEO of Raum, as well as one of the major
shareholders. Th e Saskatchewan Entrepreneurs Fund
is another major shareholder, along with 10 other
smaller investors.
Raum is originally from Estevan. He lived in
Prince Albert for a while, then Estevan again before
attending the University of Saskatchewan’s College
of Engineering. He completed his degree in engi-
neering physics in 1993, a program at the time con-
sidered one of the hardest in the college. In 1995 he
completed his engineering physics masters degree,
and spent some time working on the linear accelera-
tor atom smasher that would form the foundation of
the current synchrotron.
It was tough getting a job in engineering in the
mid-90s, however. In the summer of 1995, he put out
376 resumes, and got only eight interviews.
In 1996 he would end up in San Diego, along
with his wife, Julie, who now works in admin with
Raum. Th ere he would work on CDMA cellular
technology with Qualcomm. Pulling a cellular phone
out of his pocket, he said, “Some of my designs are in
this phone.”
His group worked on four or fi ve chips that other
companies like Motorola, Siemens or Samsung would
buy, and then build a chipset around.
It was a rough year in 2004. Jessie’s father died
in February, and by that time, he “had enough of the
California life.” Besides, he loved hockey (which he
now coaches), and pointed out you can get across
Saskatoon in 15 minutes. So Jessie, Julie, and their
three American-born children, now 10, 8 and 6, came
back to Saskatoon.
“When I came back, it was a solution looking for
a problem,” he said.
Th ey had bought some land north of Saskatoon a
few years earlier, and he wanted to put up a wind tur-
bine for electrical generation. Th e idea wasn’t to live
off the grid, but rather to supplement grid power. At
the time, he found no Canadian suppliers, and three
U.S. suppliers had about 80 per cent of the market for
small wind turbines. A 10-kilowatt installation was
going to run around $70,000. Page B17
PhD returns to Saskatoon,
”“When I came back, it was a solution
looking for a problem.- Darryl Jessie, PHD
PIPELINE NEWS May 2010 B17
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designs wind turbines Page B16
Th e number of manufactures has
grown to around a hundred globally, he
explained.
(“Big wind” is considered the large
wind turbines, usually arranged in wind
farms that are seen in places like Swift
Current. Th ey and will often gener-
ate 1.5 megawatts of power for power
utilities. “Small wind” is generally small
installations, usually just one wind tur-
bine, generating a small fraction of the
power of a massive turbine. Small wind
is typical for places like farms.)
“At the time it was hard to get any-
thing,” he said, and in the credo of most
new entrepreneurs, Jessie thought he
could do better.
Most of 2005 he worked on his
own, developing the wind turbine gen-
erator. “My background is in electro-
magnetics.
“We incorporated in February,
2006.”
In Saskatchewan, it was quite bur-
densome to connect a wind turbine
to the provincial grid. “Th e policies to
connect to the grid were very bureau-
cratic,” he said. Th at wasn’t the case
in other jurisdictions, like California,
however. Th e big change provincially
came when ‘net metering’ was intro-
duced here in October, 2007.
Page B18
Darryl Jessie looks down a plastic wind turbine blade, used by Raum En-ergy for its ve-bladed turbines. Jessie, with a PhD in engineering, has worked as an adjunct professor at the University of Saskatchewan, which turned out to be a good way to recruit promising engineers.
PIPELINE NEWS May 2010B18
* Bed Trucks* Winch Tractors
* Pickers
RIG MOVING Phone: 482-3244
CARLYLE
453-2262
REDVERS
452-3216
ALIDA
443-2466
OXBOW
483-2826
ESTEVAN134 4th Street
637-4370
Girard Bulk Service Ltd.Girard Bulk Service Ltd.PROPANE
Serving Southeast Saskatchewan’s Propane RequirementsServing Southeast Saskatchewan’s Propane RequirementsFarm & Commercial Deliveries • Propane Tank Sales & RentalsFarm & Commercial Deliveries • Propane Tank Sales & Rentals
Tank Delivery & Pick-Up ServiceTank Delivery & Pick-Up Service
Available at our Estevan Location:Available at our Estevan Location:Propane Fittings & Accessories • Propane Vehicle & Bottle RefillsPropane Fittings & Accessories • Propane Vehicle & Bottle Refills
Hei-Bro-Tech Petroleum ServicesA Division of 24-7 Enterprises Ltd.
Box 4, Midale, SK S0C 1S0Phone: (306) 458-2367 or (306) 861-1001
Fax: (306) 458-2373
• Fluid levels• Dynamometers
• Pressure surveys (automated & manual)
• Foam depressions• Equipment sales (new & used),
rentals & repairs• Repairs done on all models including:
Sonolog, Echometer, DX, etc.• Major parts and supplies in stock
at all times
A turbine for every farm
This is the old school design of windmills. Raum Energy of Saskatoon would like to see modern windmills once again become a feature on every farm.
The generators for Raum Energy wind turbines are an example of simplicity: the generator has a permanent magnet, and is brushless with a gearless, direct drive. There are only two moving parts.
Page B17Net metering allows
a small power generator,
like a wind turbine or
solar set up, to sell ex-
cess power into the util-
ity grid. If during part of
the day the turbine cre-
ates more power than is
consumed by the client,
then the excess power is
sent into the grid, and
the power meter essen-
tially runs backwards.
When the generator isn’t
meeting the client’s de-
mand, such as when the
wind dies down, power
is drawn off the grid like
usual. At the end of the
month, the power bill is
assessed on how much
net power is consumed.
“Th at made it much
easier for us,” he said.
Some jurisdictions,
like Ontario, even pay
a premium for green-
power generated and sold
into the grid through
net metering. For wind
power, they pay 13 cents
a kilowatt hour, and 80
cents per kilowatt hour
for solar. To draw power
off the grid is approxi-
mately 10 cents per kilo-
watt hour. Th at means in
Ontario, every kilowatt-
hour of wind power you
generate on your own
is worth roughly a third
more than the power you
buy from the utility.
Saskatchewan does
not have that incentive,
however, simply buy-
ing and selling at the
same rate. And while
Jessie pointed out there
is no federal program in
support of small wind
generation, there is a
substantial grant in Sas-
katchewan subsidizing
small wind installations.
Support for green
energy doesn’t have to be
complicated, he added. A
simple tax break will do.
ManufacturingMost of their manu-
facturing is done in Sas-
katchewan. Th e make
two models, with 1.5 and
3.5 kilowatt outputs.
Th ere are a few key
parts to a wind turbine
set up. First, you need a
pole to put it on, which
can be lattice or a mono-
pole, similar to a light
pole. Th en there is the
generator itself, which
rotates 360 degrees at the
top of the pole.
Th e generator has
a permanent magnet, is
brushless, with a gearless,
direct drive. Th at’s an-
other way of saying ‘low
maintenance,’ because
there are only two mov-
ing parts.
Next are the blades,
which in this case, are
made of plastic, not fi -
breglass.
Most wind turbines
you see, big or small, have
three blades. Yet the two
Raum models have fi ve.
Th at’s because it was
easier for them to cre-
ate the moulds for fi ve
thinner blades than the
thicker blades a more
conventional three-blade
turbine has. “It’s easier
to manufacturer thinner
blades with our technol-
ogy,” he said.
Th e company has
a CNC machine in the
shop which is used to cre-
ate moulds for the blades,
along with other uses.
It turned out the CNC
machine was a little over
half the price of sub-con-
tracting out a mould.
Plastic also has the
benefi t of being low cost,
once the mould is made.
Th eir blades are fi bre-
reinforced.
Finally, there is the
connection to the grid.
You can’t just hook up
the wind turbine and go.
Th e power it produces is
not ‘clean,’ in that in a
‘wild wind’ turbine like
the Raum models, the
frequency of power gen-
erated varies with the
wind speed. Th e inverter
cleans up the output,
making it 240 volts, and
60 hertz. Th eir inverters
can also be used in solar
applications, an area the
company will be pursing
this year.
Raum now has 19
staff . Th ey were at sev-
en for two years, then
jumped to 15, and now
are hiring a few more, in
anticipation of the sum-
mer and fall big push.
About half of their
sales are Canadian, with
the rest coming from the
U.S., and a few overseas
sales. Of the Canadian
sales, about half of those,
or a quarter overall, are in
Saskatchewan.
“It’s got to make
sense fi nancially,” Jes-
sie explained, with low
capital costs, effi ciency,
and simplicity. Accord-
ing to Jessie, 3.5 kilowatt
Raum unit should pay for
itself in about seven years
in Saskatchewan, factor-
ing in the grant, or in
ten to 12 years without a
grant, depending on how
strong the wind blows in
that area. Th e smaller 1.5
kilowatt until has a lon-
ger payout.
Just as it used to be
said, “A computer in ev-
ery house,” Jessie noted,
“We want a wind turbine
on every farm.”
“I see no reason why
the majority of those
couldn’t have a wind tur-
bine on them.”
PIPELINE NEWS May 2010 B19
Quality Post Frame Buildings
...And Much More!
Call for your FREE estimate
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1-800-665-0470
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Phil Thompson
Owner/Operator
• Mobile Steam/Wash Unit • Crew Trucks • Mowing Leases • Vegetation Control • Fencing • Back hoe • Tandem Gravel
Truck • Installation of Culverts and Texas Gates • Snow Plowing and Removal
• CECOR Certified • Competitive Rates
306-869-7861 Radville, SK.
The Soo Line running through Weyburn and Es-tevan has frequent trains carrying Evraz pipeline pipe, produced in Regina, heading down to the United States.
Photo by Brian Zinchuk
On theright track
S aska toon-based
Claude Resources Inc.
announced Mar. 19 that
it is putting its remaining
oil and natural gas inter-
ests on the market as it
further executes its cor-
porate strategy of mon-
etizing non-core assets.
Signifi cant proper-
ties, which are situated
in Alberta, include a 1.82
per cent working interest
in the Nipisi Gilwood
Unit No. 1 located 110
kilometres northwest of
Edmonton, and a 6.29
per cent working interest
in wells near Zama, Alta.
Claude Resources sellsremaining O&Gassets
Contact yourlocal pipeline
sale rep. to get you
28,500Circulation
on your career ad!
Speci c Targeting
PIPELINE NEWS May 2010B20
Member of
WHAT you need, WHEN you need it.
Proudly Canadian for Over 37 Years762 McDonald Street
Regina, SaskatchewanPh: (306) 757-2828Fax: (306) 352-7011
2326 Northridge DriveSaskatoon, Saskatchewan
Ph: (306) 931-3017Fax: (306) 931-4817
SERVING YOU FROM 2CONVENIENT LOCATIONS
Daily Rentals Daily Rentals to Long Term to Long Term Leases on:Leases on:
Tractors • Straight Trucks • Flat Decks • Vans Low Beds • Refrigerated Trucks and Trailers
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RM #32 Phone: 306-536-7800 306-781-2205 306-646-4540
Tremcar West Inc. offers our customers a certi ed repair shop with quali ed workers, who specializes in:
New 406 & 407 Stock Units on location
5 – 22nd Avenue S.E., Weyburn, Sask.Tel: (306) 842-6100
For 24 hour emergency service call:
Francis Lessard - Service Manager at (306) 861-2841
Parts: (306) 842-6100
• Tanker Trailer Repair • PIVK B620 Inspections • Auto Greasing • SGI Inspections • Trouble Shooting ABS Systems • Stock and Sell Parts • Leasing available
Suzanna Nostadt Suzanna Nostadt Vice President Vice President (306) 861-2315(306) 861-2315
Unity – It's a cliché,
but every day is a new
beginning, work wise at
least, for Grant Huber,
owner of Huber Ma-
chining Ltd. in Unity.
Huber Machining
makes and repairs parts
for agricultural and oil
and gas companies and
individuals in the Unity
area.
Th at could mean
anything from fi xing
drivelines and hydraulic
cylinders to rebuilding
parts for combines and
balers.
“Every day there’s a
challenge,” said Huber,
who runs the shop on his
own.
“Th ere is something
new that walks in the
door every day almost.
You have to scratch your
head and fi gure how to
repair it or make a new
one up for them.
“I enjoy the satisfac-
tion once you get it done.
Sometimes it’s frustrat-
ing getting to that point.
Once it’s done, it’s pret-
ty satisfying.”
His main tools of
the trade are a couple
of engine lathes, drill
presses, a milling ma-
chine, a 50-ton hydrau-
lic press, a small brake,
welders, and a plasma
cutter.
“I am a machinist
by trade, and I picked
welding up as I have
been going along. Th is
is my 22nd year,” he
said. “My work is half
agriculture and half oil
and gas.”
Th e North West
Terminal, and the new
North West Bio Energy
Ltd. ethanol plant and
Viterra provide Huber
with a lot of his corpo-
rate agricultural related
machining work.
For the ethanol
plant, he said, “I work
on their pump shafts
or stuff that their weld-
ers can’t do – machin-
ing. It generated a lot
of work for me when it
was being constructed,
but now it’s backed off
a little bit.”
He also fi xes pick
up rollers for combines,
and repairs a lot of baler
rollers for local farmers
during the fall harvest,
along with repairing
hydraulic cylinders on
farm equipment.
On the oil and gas
front, Huber says most
of his work is equip-
ment repairs for local
companies.
“Th e odd time it’s
drive shafts that get
damaged going down a
bad road or over a pas-
ture and hitting a rock,”
he said.
“Also I do a lot of
stuff for service rigs and
a bit of work for survey-
ors. Sometime, they are
bouncing around all over,
so I will weld in their tool
boxes and fi x things.
“My February and
March were really good
so we are hoping for a
busier year. Last year was
quiet. Th ere’s a bunch
of oilfi eld activity to the
west.
“Most of my busi-
ness is local – crews from
around town. We repair
stuff for them. If a new
crew comes to town, they
usually fi nd me pretty
quick.”
Th e raw materials
for Huber Machining
include a wide variety
of steel shafts from 3/16
to 4-inch diameter in
diff erent shapes includ-
ing square and hexagon.
Th ere is also a supply of
square tubing, angle iron,
black pipe, fl at iron and
channel iron.
When Huber added
a new addition to his
machine shop in 2000,
he installed a set of over-
head cranes to handle
most of the heavy lifting.
“Lots of time you
have to lift iron and lots
of times you might have
to replace a truck hoist,
so that crane can lift the
box off the truck,” ex-
plained Huber.
“At times it can be
a physically demanding
job.”
Page B21
If it’s broke, you can x it at Huber Machining
Grant Huber volunteered his time and skills to build these steel dugout frames for local minor softball.
Photo by Geoff Lee
PIPELINE NEWS May 2010 B21
Estevan & Area’s Newest Service!Estevan & Area’s Newest Service!
Ken Sebastian & Connie Byers • Estevan, SK • [email protected]
Thank you to Estevan, Lampman and area for all your support. Without you we would not continue
to grow and be able to offer our services.
ExtreeemeExtreeemeLimousineLimousine 421-7750421-7750
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Estevan, SK 634-7276
Located off Located off Hwy 39 West, Hwy 39 West,
Lamoro St.Lamoro St.
• Concrete - Redi-Mix & mix on site • Demolitions• Concrete - Redi-Mix & mix on site • Demolitions• Excavation Services - Skid Steer, Loaders, Backhoes, and Trackhoes• Excavation Services - Skid Steer, Loaders, Backhoes, and Trackhoes
• Sand & Gravel• Sand & Gravel• Site Preparation - Crawlers, Scrapers & Compaction Equipment• Site Preparation - Crawlers, Scrapers & Compaction Equipment
• Water & Sewer Install & Repair• Water & Sewer Install & Repair
25 Years1985 - 2010
Phone: 637-6055 Fax: 636-2606400 Kensington Ave., Estevan
Arti cial Lift Systems
AMPSCOT®PUMPJACKSProudly made in Canada
Page B20A forklift truck also
comes in handy to move
around his inventory of
metal sprockets, bearings,
seals, hubs and hydraulic
cylinder shafts including
chrome shafting for hy-
draulic cylinders.
Outside, Huber
stores a weighty supply
of square and rectangular
iron, angle iron and grip
struts and bar grating for
customers. He also sells
iron to people who want
to build their own stuff .
Huber says no matter
what the job is, the cre-
ative process for building
a new part or repairing
something starts with a
bit of detective work.
“First of all you have
to determine from the
customer how it broke
or how it failed if, and it
was from normal use or
abuse, and then you have
to go from there to make
it stronger or improve it
in any way,” he said.
“Sometimes the cli-
ent will have a drawing
to make something new.
If it’s parts all in pieces,
then you have to put it
together and make draw-
ings of it.
“I make a lot of
‘one-ofs.’ If you mak-
ing 10, you can make it
a lot cheaper than one,
but making something
is usually cheaper than
buying a new one.”
Huber says the rea-
son a lot of oilfi eld cus-
tomers comes to him is
because they can’t fi nd
the part they need or it
would take too long to
order.
“In the oilfi eld, the
sooner you can get them
going, the better they are.
Th ere is less downtime,”
he said.
When he is not busy
himself, Huber likes to
curl and volunteer his
time to help organize the
annual Unity Oilperson’s
Bonspiel.
“Someone has to do
it,” he said. “It’s fun once
you get going. Everyone
has a lot of fun.”
Th e day Pipeline News dropped by, Huber
had a set of metal base-
ball dugouts he volun-
teered to build ready for
delivery. Th e community
project is in keeping with
his “variety is the spice
of life” approach to ma-
chining.
Asked what he had
on his plate that very day,
Huber said, “We ma-
chined a fan for a seed
plant this morning. To-
day, I also put a hitch on
a fi fth wheel camper.
“I have a couple of
driveline to repair and re-
place yokes and u-joints.
Every day, there is usually
something diff erent. “
Every day is different
Above: Huber Machining carries a wide variety of iron stock. Right: The eye of the sprocket is the focal point of this photograph.
PIPELINE NEWS May 2010B22
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A FULL COMMERCIAL TRUCK WASH attached to our FULLY EQUIPPED, SAFETY CERTIFIED TRUCK REPAIR SHOP, including two licensed
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PIPELINE NEWS May 2010 B23
PIPELINE NEWS May 2010B24
Conforming to ISO and API Standards • 24hr Service
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www.metaltekmachining.com
C-SectionMay 2010PIPELINE NEWS
Saskatchewan’s Petroleum MonthlySaskatchewan’s Petroleum Monthly
By Brian Zinchuk
Regina – Every few years, a major pipeline gets
built across Saskatchewan. Th e majority of contrac-
tors who work on those projects use mainly Cater-
pillar equipment to get the job done. As such, this
equipment plays a major role in the business plan of
Kramer Ltd., Saskatchewan’s Caterpillar dealer, in
ways that one might fi nd surprising.
Th at’s because, according to Tim Kramer, presi-
dent and CEO of the family-owned and operated
fi rm, not a lot of brand new equipment is purchased
by Saskatchewan clients. Th eir preference is for
slightly used equipment.
So when a massive project comes in, like the
Enbridge Alberta Clipper, which ran over 2008 and
2009, it’s a chance to bring in large amounts of iron,
put a few hours on them, knock down the price, and
then sell them to Saskatchewan customers down the
road.
Th e oilpatch makes up in excess of 10 per cent
of Kramer Ltd.’s business. At fi rst, it might seem like
this percentage should be higher, until one realizes
that Caterpillar’s equipment product line consists of
more than 300 machines, including above and below
ground mining equipment, generators, and highway
truck motors to name a few.
“We segment our market into diff erent divisions.
In fact, we recently looked at segmenting the oilpatch
as a market of its own,” Kramer said.
What do oilpatch customers require in terms of
equipment? “Th e mainstay is dozer power – track
type tractors,” he responded. Pipelayers, motor grad-
ers, excavators and integrated tool carriers (a varia-
tion of the wheel loader) are also in demand.
Kramer’s customers are a great mix of really large
players to the small contractors, everyone from Car-
son Energy Services Ltd. in Lampman to the people
with one D7 and a small tractor.
“It’s a real challenge for us, because there are so
many calls. We’re getting to the point where there’s
‘patch speak,’” said Kramer, pointing out the lingo is
diff erent in Lloydminster than other areas.
In recent years Kramer Ltd. has established
branches in Kindersley and North Battleford. Both
were set up as agricultural facilities, and within hours
of opening, they were handling heavy construction
and industrial clients.
“We’ve outgrown that facility already,” Kramer
said of their North Battleford location.
For that branch, about 40 per cent of Kramer’s
business is agriculture, 50 per cent is heavy construc-
tion while the remaining 10 per cent is oilfi eld, but
that 10 per cent is growing. Page C2
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Tim Kramer, president and CEO of Kramer Ltd., said, “I told the chairman of Caterpillar the reason we weren’t going to participate in the ‘recession’ was because it was too hard to spell.”
Photo by Brian Zinchuk
PIPELINE NEWS May 2010C2
Big pipelines furnish equipment for Sask clients Page C1
Kramer is optimistic that rising oil prices will drive
demand for Saskatchewan’s oilsands.
Last year heavy construction sales were down, but
repairs were up. It was a nice breather, after a hectic
2008. “What we lost in heavy equipment, we picked
up in agriculture,” he noted.
“Now, things are fi ring on all cylinders,” he said,
adding, “It’s unusual. Typically in Saskatchewan, some-
thing is always going up or down.”
Pipelines key to salesOne of Kramer’s major clients is Waschuk Pipe
Line Construction Ltd., based in Red Deer. Th ey built
the eastern Saskatchewan portion of the Enbridge Al-
berta Clipper pipeline over the last two years. Kramer
points out that they are the only remaining family-run,
large-scale pipeline contractor in Canada. He said they
are tough as nails, but unique. Kramer Ltd. has a close
relationship with Waschuk.
“Customer relationships are important. It’s our job
to make our customers more profi table,” says Kramer.
A big pipeline project requires plenty of lead time,
and has a big impact on the business. “We’re already
ramping up for Mackenzie Valley,” he said, adding
there’s also the Keystone XL project in the works for
southwest Saskatchewan.
“We probably start a year in advance. You sit down
with your customers; look at their spread, what you’ve
got, what you are going to need.
“You’ve got to have a lot of guts. We took the ini-
tiative for this last run,” he said, speaking about Al-
berta Clipper. “We supplied the whole spread.”
Each of the major contractors, including Waschuk,
Robert B. Sommerville/Techint, Michels Canada, and
Bannister, rented much of their iron from Kramer, de-
spite larger Caterpillar dealerships to the east and west.
Th ere were lots of D6 and D8 dozers, 345D and 330D
excavators, 16M and 14M graders, and even Challeng-
er 85 rubber-tracked farm tractors. Pipelayers, i.e. side-
booms, however, are handled by an internal Caterpillar
division, since they are such specialized equipment.
All told, there were hundreds of pieces of Cater-
pillar equipment working on that project.
“When the fi nal numbers came in, we were abso-
lutely shocked. It was almost double what we thought
it was going to be,” said Kramer.
As such, they had to play a balancing act, to make
sure everyone had the equipment they needed, when
they needed it.
Rentals to startMuch of this iron went out as rentals, and some of
it is now back, in the yard, awaiting sale. Th e pipeline
contractors held on to a little over half.
“Being able to off er our customers an aff ord-
able piece of used equipment – one that has been
well maintained with minimal hours - is important,”
Kramer said. Such machines, he added, are “highly
coveted.”
Indeed, nearly all iron that goes out the gate starts
out as a rental. “Almost exclusively, they start with rent-
als,” Kramer said, noting it was the system of choice for
everyone.
“Th e object of our entire pipeline side of the busi-
ness is to bring value to our Saskatchewan custom-
ers,” he said. Th e vast majority want low-hour, price-
reduced equipment. Th e system works for the pipeline
contractors, too, because they need maximum produc-
tion with minimal downtime. Maximized productivity
on the line is so important that crews like the ditch
crew will have their own mechanic, on site, at all times.
“Th ey cannot aff ord down time,” Kramer said, which
is why they like to use new equipment.
Rentals are not the case in mining, however, where
the hard conditions usually mean the equipment is
bought outright.
When Kramer talks about rentals, most of the time
that’s a reference to rent-to-own, where a substantial
portion of the rental fees go towards the purchase price
of the equipment, if the contractor decides to buy it
out. “It’s a form of off -sheet fi nancing,” Kramer ex-
plained. “Th ere is always a risk they won’t buy it.”
Asked about the prospects for this year, after a
tough 2009, Kramer said, “When things go bad, they
go bad very quickly, and it takes a long time for people
to once again have confi dence in the economy.
“In Saskatchewan we were scared because every-
one else was scared, not because we had reason to be. I
told the chairman of Caterpillar the reason we weren’t
going to participate in the ‘recession’ was because it was
too hard to spell.”
“It has a lot to do with luck, more luck than you
know.”
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Redvers & District Redvers & District Oil ShowcaseOil Showcase
Redvers & District Redvers & District Oil ShowcaseOil Showcase
Guest Speaker - Brett HermanGuest Speaker - Brett HermanMr. Brett Herman has been appointed as President, CEO, Director of Result Energy Inc. Mr. Brett Herman has been appointed as President, CEO, Director of Result Energy Inc. Mr. Herman has extensive oil, gas and leadership experience in public oil and gas Mr. Herman has extensive oil, gas and leadership experience in public oil and gas companies. Mr. Herman was the President & CEO of TriStar. Previously, Mr. Herman was the companies. Mr. Herman was the President & CEO of TriStar. Previously, Mr. Herman was the Vice President, Finance and CFO of StarPoint Energy Trust.Vice President, Finance and CFO of StarPoint Energy Trust.
Fire Extinguisher Course - Safety SourceFire Extinguisher Course - Safety SourceThis course will show the general public and oil eld personnel the proper use and mainte-This course will show the general public and oil eld personnel the proper use and mainte-nance of re extinguishers. This course is hands-on.nance of re extinguishers. This course is hands-on.
FOR MORE INFORMATION OR FOR MORE INFORMATION OR TO REGISTER PHONE 452-3103TO REGISTER PHONE 452-3103FOR MORE INFORMATION OR FOR MORE INFORMATION OR TO REGISTER PHONE 452-3103TO REGISTER PHONE 452-3103
Friday, May 7th - 12:00 noon - 4:00 p.m.Trade show open to the public, free of charge
11:30 a.m. - 1:30 p.m. Lunch available5:00 p.m. Cocktails • 6:00 p.m. Supper
Saturday, May 8th - 10:00 a.m. - 4:00 p.m. • Trade show11:30 a.m. - 1:30 p.m. Lunch available1:00 p.m. - Fire Extinguisher Course
Call to register a booth for the show - Limited space is available
Gold Sponsors:Gold Sponsors: Three Way Power Tongs, Three Star Trucking Ltd., Winacott Western Star, Three Way Power Tongs, Three Star Trucking Ltd., Winacott Western Star, Saskatchewan Energy & Resources, P&M Oil eld Consulting Ltd., Town of Redvers, Saskatchewan Energy & Resources, P&M Oil eld Consulting Ltd., Town of Redvers, Enbridge, RBC Life Insurance Company, Crescent Point, Ensign/Big Sky, Essential Coil Tubing, Enbridge, RBC Life Insurance Company, Crescent Point, Ensign/Big Sky, Essential Coil Tubing, Dangstorp’s, Classic Vac, TS&M Supply, Sask Power, 3-D Enterprises, Swayze’s, McGillicky Oil eld Dangstorp’s, Classic Vac, TS&M Supply, Sask Power, 3-D Enterprises, Swayze’s, McGillicky Oil eld Consulting, Hei Bro Tech, 24-7 Enterprises, Grimes Sales & Service, Petrobakken, TundraConsulting, Hei Bro Tech, 24-7 Enterprises, Grimes Sales & Service, Petrobakken, Tundra
Silver Sponsors:Silver Sponsors: Millennium Directional Service Ltd., Parkside Oil eld Services, Eagle Oil eld Millennium Directional Service Ltd., Parkside Oil eld Services, Eagle Oil eld Services, Poplar Services Ltd., Impact Oil eld Management Team, Ener-Test Well Servicing & Rentals, Services, Poplar Services Ltd., Impact Oil eld Management Team, Ener-Test Well Servicing & Rentals, Estevan Plastic Products Ltd. Red Hawk Well Servicing Inc., Safety Source, Mid Canada Filtration Estevan Plastic Products Ltd. Red Hawk Well Servicing Inc., Safety Source, Mid Canada Filtration Solutions, Girard Bulk Service Ltd., Spectra Credit Union, Fast Trucking, Virden Ford, Frontier Peterbilt Solutions, Girard Bulk Service Ltd., Spectra Credit Union, Fast Trucking, Virden Ford, Frontier Peterbilt Sales, Greg Cousins Construction Ltd., NAL Resources, SE Electric, Moose Mountain Mud, TSL Sales, Greg Cousins Construction Ltd., NAL Resources, SE Electric, Moose Mountain Mud, TSL Industries Ltd., Precision Well Servicing, Equal Transport, Tremcar West Inc., Carson Energy Services, Industries Ltd., Precision Well Servicing, Equal Transport, Tremcar West Inc., Carson Energy Services, Tierra Alta, Prism, CJ1280, Palko Energy Ltd.Tierra Alta, Prism, CJ1280, Palko Energy Ltd.
ROAST BEEF,PIG ON A SPITLimited Dinner
Tickets Available!$20 per person
David Kell works on the track press, rebuilding an undercarriage. Behind him, you can see the robotic hydraulic torque wrench, which can re-move stripped bolts.
PIPELINE NEWS May 2010 C3
EXCELLENCE IS CUSTOMER AND EMPLOYEE DRIVEN.
WE’RE KRAMER. WE’RE CATERPILLAR. WE’RE THERE WHEN YOU NEED US.
WWW.KRAMER.CA
AS SASKATCHEWAN’S CATERPILLAR DEALER SINCE 1944, OUR RELATIONSHIPS HAVE BEEN BUILT ON A
FOUNDATION OF INTEGRITY AND MUTUAL RESPECT, AT THE WORKPLACE AND IN OUR COMMUNITIES. WE ARE
BOTH HONOURED AND HUMBLED TO BE RECOGNIZED AS ONE OF CANADA’S 50 BEST MANAGED COMPANIES.
Kramer Chairman of the Board Donald E. Kramer & Kramer President & CEO Timothy R. Kramer
By Brian Zinchuk
Regina – Vertical
integration is the name
of the service game for
Kramer Ltd., Saskatch-
ewan’s Caterpillar dealer.
“Send nothing out,
keep full control,” says
Tim Kramer, president
and CEO, as he takes
Pipeline News through a
tour of their Regina fa-
cility and headquarters.
“None of the trac-
tor leaves here until it’s
complete. We don’t send
out rads, turbochargers
or hydraulics.”
Indeed, when work-
ing on competitive ma-
chines, they’ll put Cat
parts on it, such as hy-
draulic components, es-
sentially turning them
into Cat hydraulics.
Based in Regina,
Kramer Ltd.’s headquar-
ters are comprised of
three on-campus build-
ings and an agriculture/
energy shop a few blocks
down the road.
Th e main building
houses the headquarters
offi ces upstairs with the
Regina branch down-
stairs.
Within head offi ce,
Kramer says, “All our
people are companies,
little internal compa-
nies.”
Your tractor calledAn example is a new
GPS division being set up
for agriculture and heavy
equipment. Th e automa-
tion of equipment is be-
coming so pronounced,
Kramer says, “It’s not far
from the tractor calling
us, saying, ‘I’m sick.’”
“Your tractor called.
You need a new turbo-
charger.”
Th e information
technology portion of
the dealership is growing.
It used to be that service
technicians would go to
a central computer area
to look up and order
parts. Now, each work-
bench has a laptop on
it, as much at home as
a half-inch ratchet. Th e
whole building is wire-
lessly connected. Th e
technician makes deci-
sions on whether to go
with a used part or a new
part, and place the or-
der right from the work
bench laptop.
“We found many
years ago, we couldn’t
get quality machining,”
Kramer says. So they
brought it in- house. Th ey
can now mill blocks and
heads to such tolerances
that they can be rebuilt
three or four times.
CellsTh e machining area
is just one of numer-
ous cells in the shop.
Another is dedicated to
rebuilding hydraulic cyl-
inders. “Everything is set
up as a cell. Th e goal is to
maximize wrench turn-
ing,” he explains.
Th ere are test bench-
es for both engines and
transmissions – as big
as they come. An en-
gine from a mammoth
D11 dozer can be found
in this area. Th e Dy-
namometer test bench
uses water pressure to
emulate a load, put-
ting the engine through
all its paces before it is
reinstalled into a trac-
tor. “Th is is the cheap-
est place for an engine
to fail. We don’t want it
to fail for the customer,”
notes Kramer.
Nearby is a similar
test bench for transmis-
sions.
Page C4
Keeping it all in-houseKeeping it all in-house
Heavy duty mechanic Ed Beday works on a massive motor.
PIPELINE NEWS May 2010C4
Page C3
It’s all part of a quality control system that is
prevalent at every step. Th ere are several large parts
washers in the building. You’ll see plastic caps all
over the place, so that there are no exposed holes on
items like engines or hydraulics. Th e engine area has
a clean room for working on fuel injection systems.
“Dirt is the enemy,” Kramer says ironically, since the
function of most of the heavy equipment is moving
dirt.
If something does give, they do more than just
take a look at it with a Mark I eyeball. Th e failure
analysis lab will put failed parts under a microscope,
and even send pictures to Caterpillar.
Fort Mac service workTh roughout the repair shop, one fi nds several
examples of very, very large equipment, the biggest
that Caterpillar makes. Th ere’s two 589 pipelayers,
and a 24H motor grader. All are from Suncor, and
made the trip down to Regina from Fort McMur-
ray to be rebuilt.
“Suncor is a very large customer of ours. Th ey
discovered us by pure accident,” Kramer says. Most
of their Suncor repair work is done in Regina, but
they also spread it throughout the province.
In the undercarriage area, you’ll fi nd a robotic
hydraulic torque wrench. Instead of men hunched
over with impact wrenches, the machine will prop-
erly torque an entire set of tracks, and even remove
stripped bolts. It saves backs, time, and customers’
money, according to Kramer.
Th e paint booth has an electrostatic paint sys-
tem, which produces a factory-like fi nish.
Th e parts department receives a 45-ft. van trail-
er of parts each day. Th e daily delivery is broken
down by branch, and then shipped out. “As soon as
we built the [warehouse] building, it was too small,”
Kramer says, so they added a cold storage area.
Experienced PartsOther businesses may have used parts, but
Kramer Ltd. has “Experienced Parts,” something for
which Kramer is known around North America. It’s
a separate building, with a warehouse full of items
such as wrecked engines, frames, torque converters
and the like.
Th e third building includes a radiator repair fa-
cility. Again, it was a case where they weren’t satis-
fi ed with sending that work out to other shops, so
it was brought in-house 10 years ago. “It’s not high
tech, but it’s so strategic,” Kramer says of the wa-
ter recycling system. Th ey can straighten fi ns, repair
leaks, test and paint radiators.
Similarly, an air fi ltration area was brought into
the same building two years ago. Th e cleaner revers-
es the air fl ow, blowing out the accumulated dirt out
of the air fi lter as it is spun on a device similar to a
high speed lathe. Th ere’s a special room where fi lters
are baked as part of the cleaning process. Filters are
tested before being sold. An air fi lter can be reused
several times now, whereas they used to be simply
thrown away. Th e manager of the air fi lter cleaning
facility is a third generation worker with the com-
pany. Both Kevin Rittinger’s father and grandfather
were early purchasing agents. Kevin’s father, Ken, is
now the asset manager with the fi rm.
Vertical integration a quality control strategyVertical integration a quality control strategy
The large yellow piece on the right is the ripper apparatus for a 24H min-ing grader.
A welder works on the massive hook for a 589 pipelayer. The frame of the machine, on the right, has recently been sand blasted; part of a rebuild-ing process that will make the machine so much like new, it will be given a new serial number.
PIPELINE NEWS May 2010 C5
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Redvers – If you waited to get tick-
ets for the keynote speech of Redvers
Oil Showcase by Brett Herman, you’re
out of luck. Sponsorship has been so
strong for the event, to be held May
7-8, that they’re full up, as gold and
silver sponsors are each given a certain
allotment of tickets.
As of April 20, the showcase was
just about fi lled to its inside capacity
of 68 booths, and had 28 outdoor dis-
plays. Even so, calls were still coming
in. “It’s a continual, every day thing.
Within the last hour, I got four calls,
and one gold sponsor 15 minutes ago,”
said Colette Branigan, Redvers eco-
nomic development offi cer.
Indeed, they have nearly doubled
their sponsorship, compared to the
previous event two years ago.
Th e highlight of the event will be
a speech by Brett Herman, one of the
top executives responsible for growth
in the Bakken play.
Herman, president and CEO of
Result Energy until it was purchased
by PetroBakken in January, and former
head of TriStar Oil & Gas, will be the
guest speaker at 6 p.m. on May 7.
Th e event will take place at the
Redvers Recreation Centre.
Th e trade show opens to the public
at noon on, May 7, and is open until
4 p.m., allowing for the evening’s fes-
tivities to get underway. On May 8, the
morning kicks off with an exhibitor’s
breakfast from 7:30 a.m. to 9:30 a.m.
Th e trade show will start at 10 a.m. and
wrap up at 4 p.m.
Also on the agenda is a fi re ex-
tinguisher safety course, to be put on
by Safety Source. Th e Virden, Man.-
based company has recently opened a
Redvers location.
Lot give-awayOne of the highlights of the last
Redvers Oil Showcase, held in 2008,
was the giving away of a commercial
lot in town to one of the exhibitors.
Classic Vac of Alida won the draw,
and ended up building a shop. Th e new
facility now is home to a new TS&M
Supply facility in addition to Classic
Vac.
It was a major coup for the small
town, scoring two new businesses. Th e
organizers are hoping to repeat their
previous success, off ering up another
lot along Highway 13. Th is one will be
just west of the new John Deere deal-
ership under construction, and there
will be an adjacent lot available for
purchase, if the winner decides they
would like more space than the 75-ft.
by 300-ft. lot.
However, if the winner decides to
forego the lot, they will have the option
of accepting a $2,500 travel voucher.
Redvers Oil Showcase May 7-8
A eet to be seenThe Fast Trucking eet at Carnduff is rarely seen all together like this, ex-cept during breakup. This photo captures just a portion of it.
Photo by Brian Zinchuk
Electrical Construction& Service
Lampman487-7770
Estevan637-2512
PIPELINE NEWS May 2010C6
www.palkoenergy.com
634-3009 Estevan
DENNIS TROBERTDENNIS TROBERTOwner - 421-3807
Norm MeyersNorm MeyersSales - 421-8640Les McLenehanLes McLenehan
Dispatcher/Sales - 421-8810
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Portable Bathroom RentalsPressure Washing • Dry Steam Boiler
634-314467 Devonian Street, Estevan, Saskatchewan
Estevan – Twenty-
fi ve years ago, Ed Turn-
bull started out with
a Bobcat and a dump
truck, doing landscap-
ing. From that humble
beginning, and through
several very tough years,
Estevan-based Turnbull
Excavating has grown to
a fl eet of several dozen
units and a Redi-Mix
plant. Th e company cele-
brated the opening of its
new Redi-Mix concrete
plant, on March 25, as
well as 25 years business.
Turnbull’s father used
to run the local Imperial
Oil bulk fuel operation in
Estevan. Ed began work-
ing for the family fi rm
after school, and stayed
for eight years. However,
the loss of a key contract
in 1986 meant the small
company had to down-
size. He had been do-
ing landscape work for a
year to that point on the
side. “Th ere was more
opportunity in the con-
struction business than
bulk petroleum,” he said
“Our hands were pretty
much tied for expansion.
When we lost the mine
contract, we really only
had work for one truck.
It was more important
for the other worker with
a big family to support to
keep his job.”
With that, Turnbull
decided to strike out on
his own in 1985.
“I’d been doing
landscaping when I
was working with him.
When I left, I started on
the construction side,”
he recalled. Small con-
tractors were the clien-
tele.
Ed was originally
partners with his late
brother Garry for the
fi rst few years, before
eventually buying him
out. Garry stayed on for
seven years after that,
but later took a job in
the oilpatch.
“We got on steady
with ASL paving. We
did a lot for them, and
learned a lot, about base
work and compaction,”
he added.
Page C7
Turnbull Excavating celebrates 25 years
Heather and Ed Turnbull are the owners of Turnbull Redi-Mix and Turnbull Excavating. In addition to running the business, the pair are active in the community. Shortly after this photo was taken, Heather was off to work on the local Relay for Life for the Canadian Cancer Society, of which Turnbull Redi-Mix is a leading sponsor. Ed has spent many years active with the Estevan Motor Speedway.
PIPELINE NEWS May 2010 C7
Serving Southeast Saskatchewan, Southwest Manitoba &
North Dakota since 1956.
24 Hour Dispatch24 Hour Dispatch306-483-2848306-483-2848
• 16 million & 21 million BTU Super Heaters
• Propane Fired
• Horizontal 80 m3 frac tanks
• New tri axle combo unit
• Tandem, tridem, quad sour sealed units
Page C6Rough start
Th e fi rst few years
were rough – hanging on
by the skin of your teeth
rough.
“Th ings were so
tough in our fi rst year.
Th ere was no snow in the
fi rst year.” Th at meant no
snow clearing, and no
winter revenue.
It made for a de-
pressing winter. Th ey
desperately needed to do
repairs on their equip-
ment, but had no money
to do it with. “Th at was
about the only thing we
could do – sweep the
fl oor. We didn’t know
what spring would be
like,” said Turnbull.
Spring turned out to
be a slow start. “What are
we going to do?” Garry
asked his brother.
“Get in the truck
with me, we’re going for
a ride,” Ed responded.
Th ey drove around
from construction site
to construction site, of-
fering their services. In a
few hours, they had lined
up two days of work.
“After that, it took off ,”
he said.
“We were at the
point where it was go
to work or have to bor-
row money to operate,
and there wasn’t a banker
around that would lend
to us, because we didn’t
have any receivables.”
“We started with
Bobcat and a dump
truck. We expanded and
bought a second Bobcat
and a second dump truck.
We needed more capacity
on the loading end, and
in 1987, we purchased a
loader from Case Power
and Equipment,” he ex-
plained.
Th ere was one prob-
lem. Th ey had no money.
“Case had a program on
new equipment where you
could fi nance your down
payment over six months,”
noted Turnbull. It was a
big purchase for the fl edg-
ling company - $54,000,
and those initial payments
were $2,400 a month.
Th ey delivered the
loader and the next day, the
salesman came along to
sign the agreement. How-
ever, Turnbull was driving
truck for someone else at
the time, and couldn’t get
away from it, so the sales-
man had to hop in for the
ride. “Th e fi nance agree-
ment was signed at the
corner of 2nd Street and
8th Avenue,” he recalled.
Page C8
"Get in the truck, we're going for a ride"
The new Turnbull Redi-Mix plant was built rst, and then the building was built around it. The challenge was to do the construc-tion while the plant was still in operation. Ed Turnbull got into concrete when digging basements led to a need to supply the concrete, as well.
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Page C7Th e loader was a big
help. “At that point, I was
able to dig basements, and
do bigger jobs. It worked
out quite well.”
His wife Heather,
who co-owns the business
and does work behind the
scenes, was supportive, he
said. “She knew that we
needed it, that we were
growing, and we were bus-
ier and busier.”
To this point, they
only had three staff , the
two Turnbull brothers, and
Terry Schwartz, employee
No. 1. “He’s still with us
today. He’s an operator/
driver,” said Turnbull.
Early projects
“We were fortunate
enough to go into business
at a time when the Raff er-
ty Dam and Shand Power
station were built.”
Th ose two projects,
plus riprap work at the
Mainprize causeway kept
them afl oat.
Th e Mainprize work
was brutally hard on their
equipment, but it was wel-
come work. “We loaded
rock from a farmer’s fi eld,
which was a really tough
job. We’d work all week,
and braced it up and weld
iron into the fl oor [of the
box] on the weekend,”
Turnbull said.
Th ose three projects
got them on their feet.
However, over the
years, there never seems
to have been a time when
they were fl ush. “We’ve
never had money in the
bank. We’ve been trying
to keep up with the times
as we expanded. Once in a
while, we’d buy a new piece
[of equipment],” he said.
Turnbull Motor SportsTh e lack of snow made
the winters tough, but in
1989, there was a change.
“It actually snowed that
winter, and there was no
one in the snowmobile re-
pair business,” Ed said. He
had four full time employ-
ees, including some talent-
ed, experienced repair peo-
ple. Th ey were put to work
fi xing snow machines.
He was off ered a Po-
laris dealership, and initial-
ly turned them down, then
reconsidered. Th at led to
the birth of Turnbull Mo-
tor Sports, which would
become an RV dealer. Th e
shop they had at the time
is where this newspaper is
now printed today.
By 1995, he wanted
out, but it took fi ve years
to sell Turnbull Motor
Sports.
Backhoe and concreteTh e next big step on
the excavating side was a
backhoe. Th ere were sever-
al other companies in town
doing similar dirt work,
and they all had back-
hoes, giving them the abil-
ity to do sewer and water
work. Developers wanted
the same company to dig
basements and install the
sewer and waterlines, not
just dig the basement.
“We were getting into
trouble with basements,
because we didn’t sell
concrete. Th ere was only
one concrete operation in
town,” said Turnbull.
Th at led to the 1990
purchase of a mobile mixer,
essentially a small concrete
plant on wheels, able to do
small batches with mini-
mal wastage. Th ey now
have two units like that,
and Turnbull feels strongly
that they have their place,
despite the fact the com-
pany now has a complete
Redi-Mix plant.
“Th e customers like
them,” he said. “Th ey’re
very convenient for home
owners and remote jobs.
You pour what you need,
shut it off and go home,
only charging for what he
uses. Th ey work quite well
for small jobs.”
ExpansionAt this stage, they
started getting into bigger
equipment, adding an ex-
cavator. Th e fl eet has since
grown to include four ex-
cavators, two backhoes, a
dozer, a grader, a scraper,
eight loaders, eight cement
trucks (including two on-
site mixers and six drum
mixers), fi ve dump trucks,
eight semis and trailers,
and an assortment of other
equipment. Recently they
acquired directional bor-
ing equipment, the fi rst to
be based in Estevan.
Th ey are now in their
sixth shop, and are plan-
ning to move into a new
one by this fall, on the east
side of Estevan. Turnbull
had put together his own
crew to assemble the shell
of the Redi-Mix plant over
the mixing unit while it
was still in operation. Now
they will go to work on the
new shop. Th e east side of
Estevan will work out bet-
ter for much of their haul-
ing, avoiding having to
drive through the down-
town with semis. “We’re
really on the wrong side of
town,” he said of the cur-
rent west-side location.
Th e Redi-Mix plant will
remain where it is, but the
current shop will eventu-
ally have new tenants.
In recent years, the oil-
patch has become a grow-
ing part of their business.
“Mostly sand and gravel,
site and lease cleanups,”
Turnbull said, adding they
also do some contaminat-
ed soil hauling.
Th ey’ve just about
completed their Cer-
tifi cate of Recognition
(COR), and have been
getting the staff up to
speed on safety.
“We didn’t start out in
the oilfi eld, but now we’re
into it,” he concluded.
Timing an important role in the beginning
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Estevan – On the
weekends during the
summer, it’s a sure bet
you’ll fi nd the Turnbull
family at Estevan Motor
Speedway, driving modi-
fi ed cars on the dirt track.
It’s a family aff air for
the Turnbulls. Ed, the pa-
triarch, started racing in
his teens. He did some
dirt bike racing until a
spill put him in the hos-
pital, then he chose to
stick to four wheels.
“I got adapted to
that at a very young age. I
had an older brother that
messed around with that
for a year. I was attracted
to the competition part. It
grew on me,” he said.
He put together a car
with some buddies, and
raced at the old speedway,
south of Estevan. “Once
you get it into your blood,
it’s hard to get rid of,” he
added.
Ed and Heather
Turnbull’s sons Tyson and
Aaron both race as well.
Tyson works with Turn-
bull Excavating, where he
runs pretty much every
piece of equipment the
company has, and often
fi lls in as a backup. Aaron
owns and operates Future
Signs, an Estevan sign
shop. Aaron is frequently
seen on the leader board
of the local race track.
“We spend the ma-
jority of our time together
in the evenings and week-
ends. It’s a good family
sport. Th e kids grew up
in it.”
All three Turnbulls
race in the modifi ed class,
with Ed driving the or-
ange No. 10 EH, Aaron
in No. 21, and Tyson in
the pink and black No.
10.
“When I’m at the
track, or even on the way
there, it clears your mind
of everything,” Ed said.
He was one of a
number of volunteers
who worked on putting
together the new mo-
tor speedway. Th e land
was donated by the local
mine, and they got several
fi rms on board. “I went
out there and did most of
the design for the track,”
he noted. “It was such a
group eff ort, I don’t think
it could have happened
anywhere else. And it was
all donated. Companies
came forward.”
You’ll nd them at the trackYou’ll nd them at the track
All three of the racing Turnbulls can be seen in this picture. In car 21 on the top is Aaron, while right behind him in the centre is Tyson, driving car 10. On the bottom is their father, Ed, in car 10eh.
Photo by Brian Zinchuk
PIPELINE NEWS May 2010C10
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Family Business Since 1985
Gainsborough – Just about everyone in the Shaw
family of Gainsborough ended up in some sort of
entrepreneurial capacity over the years. Two of the
six Shaw children, Hank and Scott, run a successful
earth moving business today, one that has seen the
oilpatch become their major market.
Hank and Scott own and operate Shaw Earth
Moving Inc., a Gainsborough-based company that’s
grown from one scraper to a fl eet of over 30 pieces of
iron. Hank is 53, while Scott is 49.
“We’ve been in business for 35 years,” said Hank,
speaking for his brother Scott, who was away at the
time of the interview on April 16. “It was 1975 when
we bought our fi rst ‘buggy.’”
“When we fi rst started, we were doing all RM
work.”
In the mid-1990s, they started to get into the
oilfi eld, which soon accounted for a quarter of their
work. Now, 15 years later, the numbers have reversed.
Th e oilpatch now accounts for three quarters of their
business over the last two or three years.
“We primarily build leases, lease roads, and do
sand and gravel,” Hank explained.
Th eir main operations are run out of Gainsbor-
ough, but they have a small satellite operation of
truck and backhoe based at Carlyle, where Scott calls
home.
“Our main work goes from here to No. 1 High-
way to the north, and over to Weyburn. We do some
into Manitoba, mainly the CNRL fi eld around Pier-
son, and some around Sinclair,” Hank said.
“We’ve been really good the last three years, last
year was one of our busier years,” he added, pointing
out that federal infrastructure stimulus money has
been welcome. “We did more RM work.”
Th ey also benefi ted from good weather last fall,
which plays a major role with their scraper work.
Th at said, he anticipates 2010 will be busier, not-
ing 2010 is going to surpass 2008.
Page C11
35 years in the business,
Hank Shaw and his brother Scott own and operate Shaw Earth Moving Inc. Scott was unavailable for the photo.
PIPELINE NEWS May 2010 C11
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Daryl Burnett, standing, once asked if he could bring his tools to work, and has since spent most of his time in the shop of Shaw Earth Moving Inc. He also runs a grader occasionally. Bill Scott, seated, spends most of his time on this grader, which he is re lling with oil.
the last 15 in oilpatch Page C10 Th e fl eet is now made up of eight
scrapers, 13 dozers, four graders, two loaders, three
backhoes, an excavator, a sheepsfoot packer, two tan-
dem gravel trucks, an end dump, a belly dump, and
two lowboys. With so much iron, one truck is now
dedicated to lowboy hauling.
Off to the auctionTwo more dozers are on their way, picked up at
auction in Texas. One’s a D6T, the other is a D8T.
Hank regularly attends the big heavy equipment auc-
tions held by Ritchie Bros, where they pick up the
majority of their equipment. Of the recent purchase,
he noted, a D6 works better in the spring, while a D8
shines while ripping in winter.
“I’ll go to two or even three sales every year,”
Hank said.
“A lot of our equipment we buy with 3,000 to
5,000 hours. It’s getting down into our price range
that we can pay over fi ve years, and usually has a new
undercarriage.”
Pieces are typically disposed of once they get to
the 12,000 to 14,000 hour mark, hopefully before
major engine or transmission work is needed. “We’ll
put 1,500 hours a year on Cats,” he commented.
Th e company was originally founded by Hank
and Scott’s father, Jim Shaw, Sr. He farmed, had an
equipment dealership, and eventually bought a scrap-
er after working for another company.
Jim Shaw Sr., worked for RMs, running grader,
then for an Oxbow contractor, along with Hank. “We
bought a buggy in 1975. Th e next year, we were on
our own.”
Jim Shaw Sr., passed away in 1983.
“We got working around 1977 with Wes Carson
out of Whitewood. We worked together with him
until 1992.”
“By then we were up to about three or four bug-
gies and a Cat, a fairly small operation,” Hank re-
called, adding they had built roads all over east cen-
tral Saskatchewan. Page C12
C12 PIPELINE NEWS May 2010
Estevan Office:Phone: (306) 634-2681Fax: (306) 636-7227
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remote accumulators and Class III capabilities.
We are actively working in Southern Saskatchewan.
Please call us for a list of all the services we provide.
If you are looking for a dynamic new career and live in the
area, fax your resume with a driver’s abstract to 403-580-8906
Page C11 Th ey built their fi rst lease around 1994, and expanded quite a
bit into that in the next few years. “As we got a little more experience, a little more
opportunity came to us.”
Th ey built more roads at fi rst, he said. “Th ere was more money in oil than
RM work,” he noted, but also pointed out they never forgot their roots, working
for RMs.
Do a good job“Wes Carson used to say, ‘It doesn’t take any longer to do a good job than
a poor job.’ Th at’s important for RMs. One hundred good jobs can be forgotten
about, but that one poor job gets remembered.”
Even then, a lot of the RM work is oilpatch-driven. “We do a lot of RM roads
that are paid for by the oil company, from maintenance to construction.”
Entrepreneurial spirit is defi nitely a family aff air. Hank and Scott’s sister,
Cheryl-Anne, owns an insurance agency that used to be run by their mother
Eloise. CA Shaw Insurance and Travel now has Gainsborough and Carnduff lo-
cations. Th at business was started by their grandfather.
Another sister, Judy, farmed with late husband, Bud. Cynthia, the third sister,
was a registered nurse, and used to own a store with her husband David. Cynthia
has since passed away.
As for Jim, Jr., he owned the Riverside Hotel in Gainsborough for many
years, before selling it in 2000.
Scott’s son Jamie currently runs buggy, having graduated from high school
last year. He’s looking at welding or mechanics, according to Hank, who adds he’d
like his son to see the world a bit, even though he has shown an interest in the
business.
In the summer time they have around 25 to 28 employees, and may have
more if they can fi nd them. Quite a number of their employees come from Mani-
toba, particularly from Deloraine, where about a half-dozen hail from. Th e com-
pany maintains two houses in town for accommodations.
However, most of the employees are local, with a few Alberta hands thrown
in.
With the end of breakup looming, things were already starting to ramp up.
“I’m going to have six Cats and three graders working next week, if it doesn’t get
wetter,” he said on April 16.
“We’re going to build a new shop and offi ce,” Hank forecast. “Th at’s on our
agenda. We’ve long outgrown our shop.”
“If you don’t get bigger all the time, you get left behind.”
Road builders nd growth in oilpatchHank Shaw, one of the owners of Shaw Earth Moving Inc. of Gainsbor-ough, talks with a Caterpillar mechanic about a pump replacement on a D6R dozer.
Estevan –Th ey start-
ed operations April 19,
and were working on
their fi rst building the
next day.
Integrated Th ermal
Solutions Inc., or ITS, is
a new building and insu-
lation company that just
fi red up in Estevan.
It’s owned by Brent
Gedak, but is a sepa-
rate and distinct opera-
tion from Brent Gedak
Welding. Both operate
from the same new shop
on the west side of Este-
van, where ITS will lease
space.
Mike Lavoie and
Kyle Luc are heading
up the operation, as the
respective fi eld and sales
managers. Combined, the
two have 15 years experi-
ence in industrial insula-
tion and metal buildings.
Th e company will start
with four people, and
both Lavoie and Luc will
be on the tools. Th ey will
have access to numerous
subcontractors.
Th e company con-
structs buildings out of
polyurethane insulated
panels. It’s essentially a
sandwich board, with
aluminum on each side.
Th ickness can vary from
1.5 to 6 inches, giving
corresponding R-values
of about R12 to about
R40, accordingly.
Th e panels are typi-
cally 33 to 48 inches
wide. When assembled,
aluminum channels are
used to join the panels
together. Th e walls are
self-supporting.
Roofi ng can be made
out of the same panels,
except that it is put onto
a welded truss system,
and a ridge cap is added.
“Once the roof is on, it’s
just like a house,” Lavoie
said.
Th e buildings can be
used for skid packages,
separators, water dispos-
als, or vessels. It can ei-
ther be prefabricated, or
assembled on-site.
ITS will also be
building ‘utilidors,’ basi-
cally insulated enclosures
around piping, so that
pipes do not need to be
insulated individually.
“It’s a complete, enclosed
building, like a mini-
building for pipes,” said
Lavoie.
“A big part of our
business will be pipe in-
sulation,” added Luc.
Th e company will
also off er spray foam in-
sulation and removable
covers.
“We’re not limited to
the oilpatch,” Luc said,
“Th ese panel buildings
can be used in agricul-
ture, garages, commercial
or residential. It could be
a doghouse if you want-
ed.”
He added, “We’re
not limited as to where
we can go. We’re willing
to serve Western Cana-
da.”
When asked why
get into the insulation
business, Gedak said it
is complementary to his
other business. “Th ere is
a market for this, and an
opportunity.
“I see potential in
these two guys, and
they’re going to run it
and manage it.”
Th e new shop has
built in anticipation of
the new insulation busi-
ness, and has doors large
enough to accommodate
some of the bigger pack-
ages.
PIPELINE NEWS May 2010 C13
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Cory BjorndalCory BjorndalDistrict ManagerDistrict Manager
DownholeDownhole
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IAN SCOTTOxbow, Sask.Cell: 421-6662
MIKE EVANS
403-846-9435
GERALD SMITH
Cell: 421-2408
Calgary Sales Of ce: Tel: 403-237-7323 Fax: 403-263-7355
Chuck Haines, Technical SalesCell: 403-860-4660
Head Of ce:Estevan, Sask.
Tel: 634-3411 Fax: 634-6694Ray Frehlick, Manager
Cell: 421-1880Ken Harder
Warehouse ManagerCell: 421-0101
JASON LINGCarlyle, Sask.Cell: 421-2683
CHADSTEWART
Cell: 421-5198
Swift Current Warehouse:Derek Klassen - Cell: 306-741-2447
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Lacombe Warehouse:Darcy Day Day - Cell: 403-597-6694
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MEL TROBERTManager
Cell: (306) 421-1261
Of ce: (306) 634-4577Fax: (306) 634-9123
24 HOUR SERVICE719 5th Street, Estevan, SK
New insulated building operation
These panels have aluminum on the out-sides, and polyurethane in the middle. Combined, they make up the walls and roof of custom buildings that can go on things like skid packages or around pip-ing systems. Integrated Thermal Solu-tions Inc., or ITS, of Estevan, has just started operations producing these build-ings. Photo by Brian Zinchuk
Photo submitted
PIPELINE NEWS May 2010C14
Phone: 634-7892 • www.ipc-sk.ca
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• All classes begin at 8:30 am unless otherwise stated
Energy Training Institute - May Safety Classes
Early Safety Training
Golf Classic
Support safety training for young peopleWeyburn Golf Club – May 29For more info or to register call 848-2559
ATV Training
Assiniboia – May 29Weyburn – May 31
Backhoe Operator
Assiniboia – May 12
Cargo Securement
Weyburn – May 5
Confi ned Space Estevan – May 5; 13; 25Weyburn – May 17Oxbow – May 10Whitewood – May 7
Construction Safety Training
System (CSTS)
Assiniboia, Estevan, Weyburn, and Whitewood
Crawler Operator
Assiniboia – May 11
Excavator Operator
Assiniboia – May 10
Fall Protection Awareness – ½ day
Assiniboia – May 17
Fire Control on the Spot
Estevan – May 4
First Aid (Standard)
& CPR & AED
Estevan – May 3-4; 8-9; 18-19; 25-26
Weyburn – May 3-4; 10-11; 27-28Whitewood – May 3-4Carlyle – May 22-23Oxbow – May 12-13Assiniboia – May 20-21Indian Head – May 18-19
First Aid/CPR Refresher &
AED (must have a current
certifi cate)
Estevan – May 11Assiniboia – May 19
Forklift Assessment
Contact your local campus
for more information
Forklift Operator
Weyburn – May 13Assiniboia – May 15
Front End Loader
Operator
Assiniboia – May 13
Grader Operator
Assiniboia – May 14
Ground Disturbance Level II Estevan – May 12Weyburn – May 12Redvers – May 31Whitewood – May 6Indian Head – May 20
General Oilfi eld Driver
Improvement (GODI)
Estevan – May 18
H2S Alive
Estevan – May 6; 20; 27Weyburn – May 5; 14; 26Whitewood – May 5Oxbow – May 11Assiniboia – May 8
H2S Alive Challenge Weyburn – May 21
Heavy Equipment Operator Weyburn – June 15-July 23Indian Head – May 18-June 18Indian Head – July 5-Aug 6
Motivating Employees
Whitewood – May 27-28
Motorcycle Training NEW!!
Estevan – May 14-16
Off Highway Defensive Driving
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Regina, Saskatoon
– A broader focus on
multiple sectors has Ko-
matsu well positioned
for growth in Saskatch-
ewan, according to Fred
Hnatiw, Saskatchewan
operations manager for
SMS Equipment based
in Saskatoon.
S a s k a t c h e w a n ’ s
Komatsu dealer, SMS
Equipment was formed
in 2008 by the amal-
gamation of Transwest
Mining, Federal Equip-
ment and Coneco. Glob-
ally, Komatsu is one of
the largest heavy equip-
ment manufacturers.
SMS has two Sas-
katchewan branches,
Regina and Saskatoon,
with about 28 employees
inclusive.
“Th e trend in 2010
is looking positive again
as activity in the oil-
patch heats up,” Hnatiw
told Pipeline News. “Th e
future in Saskatchewan
is bright in all sectors –
mining, forestry, oil and
gas, road building and
infrastructure.”
“We are seeing in-
creased activity in all
those sectors.”
Hnatiw said that in
the past, the southern
branch focused on min-
ing, while the northern
branch had its eyes on
forestry. Now, they are
broadening their hori-
zons.
Cliff Jones looks af-
ter the Regina branch of
SMS, having moved to
the Queen City last year
after a two-year stint in
Yellowknife, NWT.
Jones said the oil-
patch is a substantial por-
tion of their Saskatch-
ewan business, about 35
per cent overall. Out of
their Regina location,
it’s about half. “It’s really
grown in the last three to
four years,” he said.
Most of the equip-
ment the oilpatch has
been buying from them
falls under three types
– dozers, wheel loaders
and excavators.
Dozers are typically
mid-sized. Th e loaders
are usually the WA 150,
200 and 250 series, and
will often see work on
drilling rigs or in road
building. Excavators can
vary in size from the
PC 200 to the PC 300
range. Excavators tend
to be numbered accord-
ing to weight in metric
tonnes, with a PC 200
being roughly 20 metric
tonnes, and a PC 300
being about 30 metric
tonnes.
As for dozers, D65
and D85 models are
common, mid-sized doz-
ers, at 200 hp and 246 hp
respectively.
A new grader model
is anticipated in the com-
ing months, a heavier de-
sign, Jones said. “As this
new model comes out, it
will be a new ball game,”
he said.
Do Saskatchewan
clients prefer new or
used? Th at depends on
the economy, according
to Jones. “Last year, we
sold a lot of used equip-
ment versus new, due to
the economy.”
He noted there was a
lot of used equipment on
the market. “Now, we’re
seeing some good pricing
on new,” he said, point-
ing out that the Cana-
dian dollar’s rise against
the U.S. dollar has made
equipment more aff ord-
able.
Komatsu’s equip-
ment is manufactured
worldwide. “Sometimes
we get a crawler from
Brazil. Wheel loaders
are being manufactured
out of South Carolina,”
Hnatiw said.
Page C15
Future bright in all sectors for Komatsu
There’s plenty of visibility from the cab of a Ko-matsu 155AX dozer.
C15PIPELINE NEWS May 2010
DUSTIN DUNCAN, MLAWeyburn - Big Muddy
35-5th Street NE, Weyburn, SK S4H [email protected]
(Tel) 842-4810(Fax) 842-4811
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Excavators, dozers and wheel loaders are the usual pieces of iron Sas-katchewan’s oilpatch is looking for when it comes to SMS Equipment, the local Komatsu dealer.
Page C14Komatsu will send
equipment from wher-
ever they need to in or-
der to satisfy demand,
according to Hnatiw.
KomtraxTelemetry systems
are becoming more com-
monplace on highway
trucks and even passen-
ger vehicles. For the past
four years, Komatsu has
off ered the Komtrax sys-
tem, as a standard option
on all its machines, simi-
lar in concept to General
Motor’s OnStar system.
According to Hnatiw, the
GPS/telemetry system
not only tracks location,
but can be a key com-
ponent in maintenance.
Th at’s because its satellite
communications ability
will let the owners know
what’s going on with the
machine. “It’ll send us an
error message if there’s
a fault code, calculate
operator use, and even
give how many hours in
power mode, economy
mode, or idling. It’s great
for fl eet management,”
Hnatiw explained.
It will even tell you
when it needs periodic
maintenance, like oil
changes.
Hnatiw added there
is no charge to the equip-
ment owner for the ser-
vices. “It’s a phenomenal
piece of software.”
He’s even tracked a
piece of equipment from
the time it left the facto-
ry, following its progress
along the highway to the
delivery point.
“Most guys say, ‘I
don’t need it,’ until they
have it.”
Th en they don’t know
what they did without it,
according to Hnatiw.
“Komatsu is a tech-
nology driven company,”
he concluded.
Komtrax calls home
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Gainsborough – When
a piece of heavy equipment
is in need of serious repair,
it’ll be put on a lowboy
and sent to the ‘hospital,’
or shop. However, a lot of
the time the ‘doctor’ does
house calls.
Th at’s the role of fi eld
service technicians like
Rick Davies, who works
out the of the Estevan
branch of Kramer Ltd.,
Saskatchewan’s Caterpil-
lar dealer. Pipeline News had the opportunity to go
out with Davies on a ser-
vice call to Gainsborough,
where two of Shaw Earth
Moving Inc.’s dozers were
‘sick,’ and in need of repair.
For most oilpatch com-
panies, spring break-up is
spent doing maintenance,
ramping up for the sum-
mer season.
Davies is a journey-
man heavy duty mechan-
ic, having worked with
Kramer Ltd. for several
years, fi rst as an appren-
tice, then as a journeyman.
Assisting him on this day,
April 16, was fi rst year ap-
prentice B. J. Bolen.
“I’m a designated
fi eld service tech,” Davies
explained as he plucked
tools from his toolbox.
He drives a Ford F-550
truck equipped with a
service body, air compres-
sor, and crane. When you
work with big equipment,
you need big tools. Davies
fi nds himself working in
Kramer’s shop, in other
companies’ shops, or in the
fi eld, repairing anything
from small skid-steer
loaders to large D11 doz-
ers at the local coal mines.
He has large air tools
up to 3/4 inch drive, and
“as many tools as I can
buy.” Th e majority of the
hand tools are Davies’
own personal collection,
but nothing out of the or-
dinary. Any specialty tools
come out of the shop, as
needed.
While he’ll have
some standard parts, like
bolts and hose clamps, the
wide variety of equipment
he may encounter limits
what he can carry. “Th ere
are too many kinds of
machines to carry all
the fuel fi lters, stuff like
that,” he explained. “If
this machine was in the
fi eld, we’d take air fi lters
and fuel fi lters for the
machine, if that’s what
we need. It is the cus-
tomer’s dime, so fewer
trips are better.
Page C17
The ‘doctor’ does house callsThe ‘doctor’ does house calls
Journeyman heavy duty mechanic Rick Davies swaps out a HEUI pump on a D6R dozer. Davies is a eld service technician with Kramer Ltd., Saskatchewan’s Caterpillar dealership.
A service truck for a heavy duty mechanic is like a shop on wheels.
PIPELINE NEWS May 2010 C17
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Page C16“We usually pack a lunch.”
Th ey run 12 hour shifts, and
have 24-hour on call service. “If a
drilling rig is down at two in the
morning, we will go out there,” he
said.
For this job, Bolen is tasked
with removing the starter on a
D8T, while Davies tackles a hy-
draulic electronic unit injection
pump, or HEUI. In this case, Da-
vies brought out a pump and in-
jectors, as well as a starter.
Th ere was a time when some
of the more sophisticated tools for
mechanical diagnosis included a
stethoscope to listen to the engine.
Th ese days, Davies said, “It’s all
done by laptop. You do electronic
tests with the system. You can usu-
ally identify a problem, say with a
pump or injector.
“I always have a laptop with
an air card, so we can order parts
from the fi eld.
“It depends on what you’re
trouble shooting. Sensors are usu-
ally pass/fail. Th ey’re usually pretty
accurate.”
It’s also easier if you’re not
approaching the problem blind.
“Most operators are good at say-
ing ‘Th is is what it’s doing,’” he
said. Sometimes it’s easy, other
times, there is a lot more trouble-
shooting involved. “Sometimes it’s
‘Th e engine isn’t sounding right,’”
he added.
Even with all the electronics,
it’s still very much a hands-on job,
as Davies sits on the less-than-
comfortable tracks, pulling out
the HEUI pump from the engine
compartment of the D6R. Within
about four hours on site, the repair
is nearing completion.
A typical service call will run
from a couple of hours to a day
and a half, according to Davies.
Th e typical pattern is to go out,
troubleshoot the problem, get the
parts, and return to install them.
Davies took his training at the
Kelsey campus of the Saskatche-
wan Institute of Applied Sciences
and Technology. You can say turn-
ing wrenches is in his blood. “My
dad was a mechanic at SaskPower,”
he said.
Davies is from Estevan, and
has spent most of his life there, ex-
cept for schooling.
B.J. Bolen, a rst year heavy duty mechanic apprentice with Kramer Ltd., gets under a D8T dozer to get up close and personal with a troublesome starter.
Following a heavy duty Following a heavy duty mechanic in the eldmechanic in the eld
PIPELINE NEWS May 2010C18
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Saskatoon – Moody’s Equipment of Saskatoon got into heavy equipment six
years ago, and is continuing to grow the line, with the opening of a new location
at Balzac, Alta., near Calgary this past January.
In mid-April, the company also opened a new facility for its agriculture side
at Unity.
Moody’s is a New Holland dealership which started in Perdue, but is now
headquartered in Saskatoon.
New Holland refers to their heavy equipment line-up as their construction
side. It was launched in 1998, but really has been around for several decades, un-
der various brands. Th ere was a Ford backhoe, for instance, as well as a Fiat wheel
loader. A New Holland skid-steer loader was prototyped around the same time
Bobcat came out with their initial model. Now those brands have been consoli-
dated under one brand, New Holland Construction.
Parent company CNH also has a Case line of heavy equipment, but that is
distinct from the New Holland Construction division.
Moody’s was started by the Moody brothers – Burke, Darrel and Pat. Burke
has retired as president, Pat left in 2004, and Darrel is still a silent partner.
Of the new ownership, John Mathison is the senior partner among eight
partners. He said a lot of agriculture customers’ needs overlapped into using con-
struction-type equipment, such as skid-steer loaders and backhoes. Page C19
Moody’s Construction line growing,new Balzac location opened in January
Saskatoon-based Moody’s Equipment opened a new location at Balzac, Alta., near Calgary in January. Photo submitted
PIPELINE NEWS May 2010 C19
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Page C18Moody’s Equipment
got into the construc-
tion side in 2004 after
being in business for
over 35 years on the ag-
riculture side. “We saw
it as another opportuni-
ty to build the business,”
explained Aaron Gross,
construction sales man-
ager for Moody’s.
Th e bulk of the deal-
ership’s business is agri-
culture. Of their approx-
imately 140 employees,
there are about a dozen
workers strictly dedicat-
ed to construction, plus
administration, parts
and service personnel
who are shared by both
divisions.
Moody’s has loca-
tions spread throughout
the western side of the
province. Th e construc-
tion locations are Saska-
toon, Lloydminster, and
Balzac. Olds, Alta, will
become a construction
location as well, accord-
ing to Mathison, who
said it is in the works for
this year.
Last year Moody’s
bought Alberta-based
Belsher Equipment,
giving them locations
in High River, Olds and
Calgary. Th e Calgary site
was not a good location,
and was very tight to get
in and out of, according
to Mathison, necessitat-
ing the move to Balzac.
Th at location is about
evenly split between ag-
riculture and construc-
tion. “We had to move
it out of town to get ac-
cess to more wide open
streets,” he said.
Having agricultural
location spread all over
the place helps as these
can be used as support
stores for ordering parts
and the like.
For service, the
company has several
mechanics trained for
both the agriculture and
construction sides. Th ey
have fi ve service trucks
based in Saskatoon,
three in Lloydminster,
three in Balzac, and a
satellite at Rosetown
that services the Kinder-
sley-Kerrobert area.
Mathison said they
had to upgrade their
service trucks, because
the demands of con-
struction are greater
than agriculture. Th ey
needed service bodies
and cranes on the trucks
to work on excavators,
for instance.
However, because
so much of their equip-
ment out there is new
and under warrantee,
there aren’t a lot of re-
pairs needed just yet.
Most of Moody’s
clientele in the oilpatch
to date has been in
general oilfi eld main-
tenance, according to
Gross.
Moody’s terri-
tory for New Holland
Construction is north-
ern Saskatchewan and
eastern and southern
Alberta. Th ey also carry
Kobelco excavators for
all of Saskatchewan and
most of Alberta. Kobel-
co excavators have the
pioneering Bladerun-
ner design, with a six-
way dozer blade and a
beefed-up undercarriage
to match. It’s an excava-
tor and dozer, wrapped
into one.
Th e Bladerunner is
easily their best moving
excavator, according to
Gross.
Moody’s also car-
ried Sakai compaction
equipment.
Breaking into a mar-
ket with a new brand
product where there are
long established players
requires you to go out
and show your prod-
uct, according to Gross.
“We’re steadily increas-
ing our market share
each year, even last year,
in the down year. In ev-
ery category, everything
went up,” he said.
Th eir primary focus
has been on new equip-
ment sales. “We still do
quite a bit of rentals, or
rent-to-own.”
For bigger jobs, cli-
ents may come in and
rent some equipment,
and that in turn converts
into a sale. “Th e major-
ity end up buying out
the equipment,” Gross
said. “It’s a great way for
guys to try our product,
for a three to six month
rental, and then buy it
out.”
Th eir oilpatch cli-
ents tend to go for exca-
vators, backhoes, wheel
loaders, skid-steers, and
some smaller 95 hp doz-
ers for fi nishing work.
As for the future,
Mathison says they are
looking at another loca-
tion right now, but won’t
go into too much detail
just yet. “We see the
business continuing to
grow for us,” he said.
Moody’s Equipment of Saskatoon got into the heavy equipment business in 2004. Photo submitted
Mixing in a little bit of oil eld
PIPELINE NEWS May 2010C20
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By Brian Zinchuk
Weyburn – Seeing an
opportunity in the ever-
growing fi eld of oilfi eld
safety, Wayne Ebel and
his wife Karol Ruckaber
decided to set up Edge
Safety in Weyburn.
Edge Safety & Sup-
ply Inc. started opera-
tions on Jan. 4, and held
its grand opening on
Mar. 25, with a barbecue
serving up burgers and
hot dogs for visitors.
Ebel is a fi xture in
the community, as owner
of United Centrifuge.
Ruckaber is the owner of
Edge Safety, while Ebel
acts as manager.
“We originally start-
ed Edge Oilfi eld Servic-
es in 2002. Its main fo-
cus was fi re extinguisher
rentals on drilling rigs
and selling and renting
H2S odour control sys-
tems,” explained Ebel.
In 2009, they
changed their focus to
be more safety related.
“With increased aware-
ness of safety, we noticed
there was no one that
carried any amount of
safety equipment for the
oil industry or construc-
tion industry in Wey-
burn,” Ebel said.
“We were ordering
safety gear. Why don’t
we have a store that sells
it here? Everyone’s going
to Regina, why not keep
that money here?” he
reasoned.
In addition to safety
equipment and training,
he added, “We decided
to expand our line into
oilfi eld supplies, focusing
on service rigs.”
Th ey now have items
like slings, tank truck
hoses, pipe valves and
fi ttings. At the far end
of the building is a hy-
draulic hose setup for
new hoses or repairing
existing hoses. Th ey still
carry H2S odour control
systems. Th e granular
substance reacts with
H2S, becoming sulphur,
dirt and water, Ebel ex-
plained.
“I was part of the
people trying to get the
Energy Training Institute
to come to Weyburn,” he
said. When that failed to
materialize, they decided
to off er their own train-
ing.
A key focus of the
business will be safe-
ty training. Th ere’s a
12-person classroom in
the building. Th ey’ve
brought on Morley Fors-
gren, who is former dep-
uty chief of the Weyburn
Fire Department. He’s
spent 22 years working
in emergency services,
fi rst aid and EMT for 12
years, then the last 10 with
the local fi re department.
“I came over to do
this, basically to do more
training,” he said.
Page C21
Edge Safety res up in Weyburn
In addition to safety gear, Edge Safety & Supply also stocks hardware for service rigs.
PIPELINE NEWS May 2010 C21
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Manitoba, Saskatchewan, AlbertaManitoba, Saskatchewan, Alberta
Willmar Waste Management FacilityLocation - 11-36-5-4-W2
• Disposal• Waste Processing
• Hot and Cold Fresh Water• Heated Saline Frac Water Supply
From a Saskatchewan Watershed Authority Approved Source Well
Setting new standards in Oilfi eld Waste Management Services
PhonePhone306-455-2451306-455-2451
SVEIN BRYEIDE CONSTRUCTION Ltd.SVEIN BRYEIDE CONSTRUCTION Ltd.
HWY. 47 N. AT BENSON Fax: 634-9798 • Cell: 421-0203
• Trackhoe and Backhoe• Lowbeds and More
Celebrating over 30 Years in SE Saskatchewan!
• Earth moving and Oilfield Construction• Lease Preparations and Restorations
• Pipeline Construction and Maintenance
• Road Building, Dugouts• Dozer Ripper and Winch Cats
• Motor Scrapers, Graders
634-6081
Wayne Ebel, manager of Edge Safety & Supply in Weyburn, displays large slings they now carry.
Page C20His certifi cations
fi ll a two-inch binder.
Among them are level II
fi refi ghter, hazmat tech,
fi re extinguisher and cer-
tifi ed fi re extinguisher
tech. He teaches fi rst aid,
WHMIS, TDG and will
soon be doing fall pro-
tection training. Forsgren
also can do face mask fi t
testing.
“I’m a certifi ed rope
rescue technician,” Fors-
gren added. “Fall protec-
tion and confi ned space is
something I delve into.”
“Most of my train-
ing is going out to their
equipment, and using
their equipment specifi -
cally.”
Ebel noted, “We
found an area where
Morley’s more fl exible
to train on evenings or
weekends to fi t with the
oilfi eld schedule. If oil-
fi eld workers are unable
to come here, we will go
to them, and use their fa-
cilities.”
Asked if there has
been a lot of uptake, Ebel
said, “Yeah, we’re provid-
ing training right now for
a number of local service
rig companies, plumbing
contractors, re-certifi ed
red cross volunteers and
seismic crews.”
In regards to safety
training, Forsgren noted,
“You can only do you job
if you know what you
need to do. Th e element
of an emergency is add-
ed stress. Th ey’ve got to
know what they need to
do in an emergency.”
“I’m a strong be-
liever in people know-
ing CPR and how to use
AEDs (automated exter-
nal defi brillators). In the
last year, we’ve had two
saves [locally] because of
AEDs.
It’s a busy time right
now for fi re extinguisher
maintenance. “Every-
body does their annuals
during breakup,” Ebel
said. “We brought in the
latest automated, state of
the art fi re extinguisher
recharging and hydro-
testing equipment.”
Th e company plans
on servicing southeast
Saskatchewan, primar-
ily the Weyburn region,
but up to and including
Carlyle.
Th ere are four em-
ployees, including Karie
Ruckaber, administra-
tion, Jeff Wagner, sales,
John Smolinski, sales,
and Forsgren in training.
Edge Safety offers safety and training supplies
John Smolinski services a re extinguisher with the latest in equipment refurbishment gear at Edge Safety & Supply.
PIPELINE NEWS May 2010C22
• 24 Hour Service • Oil Hauling
2 Locations: Kisbey & Lampman Phone: 462-2130 • Fax: 462-2188
CLIFF NANKIVELLTRUCKING LTD.
WATER & CRUDE VACUUM TRUCK
SERVICE
The environmentally friendly The environmentally friendly alternative.alternative.
Red Deer, ABRed Deer, AB
Calgary, ABCalgary, AB
Frobisher, SKFrobisher, SK
www.dpsmicrobial.com
Of ce: 306-634-6325 - 24 hour service
Sales• New & Remanufactured Wellheads & Valves
Rentals• Frac Trees, 3”, 4” & 5”, 10,000#• Gate Valves, 2”, 3”, 4”, 5” & 7”, 2,000# - 10,000#• Miscellaneous wellhead equipment
Services• Wellhead & Frac Tree Installations
Lyle Grube Burt Blondeau
New Location300 Imperial Avenue, Estevan
(Behind Apex)
Three StarENVIRONMENTAL
FAX: 443-2453BOX 160, ALIDA, SASK. S0C 0B0www.threestarenvironmental.com
443-2429
* Environmental Protection Plans * Impact Assessments * Pre-Site Assessments * Environmental Audits & Assessments
* Well Site & Battery Abandonments * Drilling Waste Management * Pre/Post Water Well Testing * EM Surveying * GPS Mapping
Regina – Bobcat
created the category of
skidsteer loaders, and to
this day, the name is syn-
onymous with that type
of equipment. And while
most heavy equipment
manufacturers focus on
being big, Bobcat focuses
on being small.
If you move dirt in
the oil patch, it’s a good
bet you have a Bobcat in
your fl eet, especially for
the close-in work.
Th ere are Bobcat
dealerships in Regina,
Saskatoon, Moose Jaw,
Yorkton, Kindersley and
Lloydminster within
Saskatchewan.
Gary Graham has
been with Bobcat for 28
years, working with dif-
ferent dealerships since
April, 1982. Most of
that time was in service,
but now he’s the general
manager for Bobcat of
Regina.
“I used to go down
to the factory and pick
them up,” he said.
Despite having a di-
versifi ed line that runs
from min-excavators
to small utility tractors,
the bread and butter is
still the old faithful. “It’s
mainly the skid-steer.”
Graham said. Units see
use in general construc-
tion, agriculture, and the
oilpatch as well.
Two models in par-
ticular are common, the
S185 and S250. Th e
model numbers are based
on lifting capacity. A
S185 will safely lift 1,850
lbs from top to bottom,
for instance. “It’s double
that for cab-high, before
it wants to tip over,” Gra-
ham explained.
Tracked versions,
with rubber tracks that
reduce ground pressure,
became available about
2000. Th ey are quite pop-
ular, and becoming more
so all the time, accord-
ing to Graham, account-
ing for about a third of
skid-steer sales. “Th ere’s
conditions like this – it’s
been raining for two days.
You’ll be able to go to
work sooner, because you
have fl oatation, whereas
with a rubber tire, you’ll
get stuck in the ruts,” he
said.
Th ere’s also an im-
provement in tipping
load.
One Moose Jaw cli-
ent went from three rub-
ber-tired units to three
tracked units. Th e result
was less down days and
the ability to lift more
products.
In recent years they
brought in a model of
skidsteer does something
novel – it actually steers,
as opposed to skidding.
A little wider that com-
parable models, both
axels can steer. It can also
be used in conventional
skid-steer mode. “Th is
sets us apart from anyone
else,” Graham said.
Most landscapers
have some form of skid-
steer loader. “In some
cases, they’re a glorifi ed
wheelbarrow, but they
save a lot of man-hours,”
Graham said.
Page C23
As common as a wrench in a toolbox
The safety bar across your lap is a key safety fea-ture of the Bobcat skidsteer loader.
The Toolcat combines features of a pickup truck, skidsteer loader, tractor and utility vehicle
PIPELINE NEWS May 2010 C23
BADGERDAYLIGHTING™
SafetyIt’s What We Do.
It’s What We Deliver.
Full Service Hydrovac FleetAvailable to Saskatchewan
• Tandem Tandem • Tri Axle• Tandem • 4 x 4
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Toll Free: 1-800-465-4273www.badgerinc.com
• Crew Work • Gravelling • Backhoes • Excavators • Graders • Dozers • Skidsteers
Phone: (306) 388-2652Fax: (306) 388-2345
24 Hour Service
www.prairiewestern.com
See Us At The Weyburn Oil Show!
SPECIALIZING IN:SPECIALIZING IN:• Clean Fresh Water Tankers• Clean Fresh Water Tankers• Oil & Salt Water Transfers• Oil & Salt Water Transfers
• Service Work• Service Work• Back Hoe Services• Back Hoe Services
24 Hr.Emergency306-457-3774
Now Providing Tandem Now Providing Tandem Services (16 M3)Services (16 M3)
Of ce - 306-457-3774Forget, Sk.
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• FULL SERVICE SHOP• 2 JOURNEYMEN
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STATION
Page C22Th e list of possible attachments is almost as extensive as the imagination,
but some attachments are pretty common. Typical ones include a smooth bucket,
used for levelling and backfi lling. A toothed bucket is more for digging, and will
be the width of the machine. A smooth bucket might be a little larger. A snow
bucket is bigger yet.
“At some point or another, pretty much all do it,” Graham said of snow clear-
ing, explaining there’s not a lot of money in it. “For one, it doesn’t snow that often,
and it’s hard on guys.”
Augers are also common for digging holes.
Th en you get into the specialty attachments. Th ere are asphalt planers, pallet
forks, landscape rakes, rototillers, forestry cutters, the list goes on and on.
One attachment, a backhoe, grew into its own product line. In 1986, the com-
pany began to sell mini-excavators, small rubber-tracked machines that can get
into tight spaces and replace a lot of back-breaking shovel work.
A recent addition to the line is the Toolcat. It’s a utility vehicle that’s a com-
bination pickup truck, skid-steer loader, tractor and utility vehicle with four wheel
steering. Attachments can go on the front or back, and it has a box to carry your
load.
A utility vehicle will be introduced in June, Graham added.
Most Bobcat models are manufactured in North Dakota, where the company
is based. It got its start at Gwinner, ND, in the late 1950s, and has been there ever
since.
All Bobcats are diesel-powered and used Kubota engines.
“We now off er operator training, and we do that in house,” Graham said.
“Most people have run them for years, and it’s old hat.”
Th e training includes videos, a test, and practical hands on experience. Th ey
go over items like safety equipment, getting in and out, attachments, and driving.
Th e course takes most of a day, and they try to keep class sizes to eight at a time.
Gary Graham is the general manager of Bobcat of Regina. He’s been work-ing with various Bobcat dealers for 28 years.
Construction,agriculture,and the oilpatchare all onBobcat's resume
PIPELINE NEWS May 2010C24
... Your Non-Destructive Testing Specialists
Units available to work in Saskatchewan, Alberta,
British Columbia & Manitoba
* RT * MT * PT * HT * UT * PMI (Positive Material Identifi cation)
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Serving Western Canada for 22 years
For all your Non-Destructive Testing call: 1-800-667-6747Box 463, Cabri, Saskatchewan, S0N 0J0
Locations
• Brooks, AB• Camrose, AB• Cabri/Swift Current, SK• Kindersley, SK• Saskatoon, SK• Weyburn, SK• Carlyle, SK• Regina, SK
WE RENT• Scissor Lifts/Electric & Dual Fuel
• Man Lifts/Straight Boom & Articulating Boom• Zoom Boom Forklifts
G. T. & H HOLDINGS INC.Chad - Cell: (306) 421-1896Garry - Cell: (306) 421-0529
Estevan, SK
Lyle Leclair - Cell: 306-421-7060Larry - Cell: 306-421-7131
LECLAIRTRANSPORT
General Oilfield Hauling
McTaggart – A dev-
astating fi re wiped out
the shop and half their
fl eet of lay-down trucks,
but Pipe Hustler of
McTaggart is back in
the swing of things and
beginning the rebuilding
process.
Until the Mar. 9 fi re,
Pipe Hustler had four
lay-down trucks, and a
spray truck, what they
call a spray hustler, ac-
cording to Jason Balab-
erde. He’s a partner in
the business, with his fa-
ther Les and uncle Dave
Balaberde.
McTaggart is a small
community 13 kilome-
tres northwest of Wey-
burn.
In addition to the
shop and two lay-down
trucks, several personal
vehicles were lost. “She
was a complete and to-
tal loss,” Balaberde ex-
plained.
“It was an electri-
cal fi re. Th e power box
shorted out.”
Jason had just talked
to Dave on the phone
at around 10 p.m. on
Mar. 9. He got a call 10
minutes later, saying the
shop was on fi re. Jason
lives in Yellowgrass, and
arrived around the same
time the Weyburn Fire
Department did. Th ey
had no fi re hydrants, and
could do nothing but
watch it burn. Th e im-
age of the fi re was seared
into Jason’s mind. “It was
pretty horrifi c,” he said,
noting it’s an image he’ll
remember for the rest of
his life.
It has been tough on
his father and uncle, too,
he added, but they’re on
the rebound now. “Work’s
starting to come. Break-
up’s over, we’re getting
busy.”
“Work just kind of
went crazy.”
Th ey have insurance,
but lay-down trucks are
hard to come by. Balab-
erde said they are the only
company in Saskatchewan
doing that type of work.
Th e plan is to fi nd another
used truck and bring the
fl eet back up to three.
Th ey are also work-
ing on quotes to rebuild
the shop, in the exact
same spot, he added.
Pipe Hustler on the reboundafter shop re
An electrical re destroyed Pipe Hustler’s shop, two lay-down trucks and several personal vehicles on Mar. 9.
PIPELINE NEWS May 2010 C25
106 Souris Ave. N., Estevan, Sask.
Ph: (306) 634-4087 • Fax: (306) 634-8817E-mail: [email protected]
ASAS&& OILFIELD OILFIELD OPERATING LTD.OPERATING LTD.
Shelley Schroeder• Construction Safety Of cer
• Health & Safety Administrator
• External Safety Auditor
Cell: (306) 421-3351
Andy Schroeder• Battery Operating/Oil eld Consulting
•Construction & Pipeline Supervision
• Service Rig Supervision
Cell: (306) 421-9288
Industrial • Industrial • CommercialCommercialAgriculturalAgricultural
Quality Workmanship GuaranteedQuality Workmanship Guaranteed
“ Safety & Satisfaction”
Ph: 1-306-634-8700Ph: 1-306-634-8700Ph: 1-306-634-8700
• Electrical Contracting• Electrical Service Work• Underground Wiring• Aerial Lift Equipment• Electrical Design & Engineering• Electrical Supply & Lighting Sales
• Electrical Contracting• Electrical Contracting• Electrical Service Work• Electrical Service Work• Underground Wiring• Underground Wiring• Aerial Lift Equipment• Aerial Lift Equipment• Electrical Design & Engineering• Electrical Design & Engineering• Electrical Supply & Lighting Sales• Electrical Supply & Lighting Sales
Does your oilfield waste go to a safe place?
There is a safer way to dispose of your waste.
For more information Phone (306) 728-3636 Or look us up at www.plainsenvironmental.com
Did you know that Plains Environmental is the first class 1A rated disposal facility in Saskatchewan and that our facil ity secures your waste from ground, water, as well as airborne contamination?
Did you know that our facility is the only one in Saskatchewan fully licensed to accept Upstream, Midstream, Downstream, NORM and Industrial waste?
Spring BBQARC Resources held BBQ on April 16, 2010 at Cowan Oil eld shop in Gainsborough. The event was in appreciation for work done in the recent Goodlands, Man., project. Calgary reps were in attendance to deliver the appreciation speech and to give hand outs. Blaine Chrest and Jim Er-mantrout were on hand cooking steaks on their TS&M BBQ.
Photo submitted
PIPELINE NEWS May 2010C26
™
Regina’s Newest All-Suite Hotel
One Bedroom King Suites with full kitchens
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Daily, weekly and monthly rates available
When you can’t be there,
Stay Close to Home.
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Regina, Saskatchewan S4Z 1A5
Toll-free 1-877-522-4434
www.homesuites.ca
Gainsborough –
Many hotels in small
town Saskatchewan
these days are that in
name only. In reality,
they’re the local bar, and
stopped renting rooms
years ago. However,
the Riverside Hotel in
Gainsborough still does
rent rooms, as well as
cook up some pretty
good grub, to boot.
Just four kilome-
tres west of the Mani-
toba border, and 19 km
north of the U.S. bor-
der, Gainsborough is at
the extreme southeast
corner of the province.
Being a small farming
community, it ’s benefit-
ted greatly from having
the oilpatch around.
The Riverside Hotel at
lunchtime has plenty
of workers from lo-
cally operating Cowan
Oilfield Maintenance
and Shaw Earth Mov-
ing Inc., as well as other
firms, at the tables. “My
rooms are always full of
riggers,” said Veronica
Fisher, owner for the
past 10 years. “I’ve got
some guys from a rig
driving back and forth
from Frobisher because
they like the food,” she
added.
The rooms tend to
be full, except for dur-
ing road ban season.
“The the rooms are full,
that’s my gravy.”
However, some-
times the gravy is on
the food plates. Fisher
reports up to 100 peo-
ple coming in for wing
nights, and the Wednes-
day noon smorg is also
popular. They also have
a steak pit that runs
every night except for
some Sundays. It takes
two very large hands to
fully grasp their signa-
ture Riverside Burger.
Enough people come in
for the food to make up
for the slower years.
“The oil definitely
helps, and my rooms are
cheap,” she said.
A hotel that’s still a hotel
If you can manage to eat this huge home-made burger without requiring a few napkins, all the power to you. The Riverside Burger is a highlight of the menu at Riverside Hotel in Gainsborough.
Photo by Brian Zinchuk
#306 Wicklow Centre - 1133-4th Street, Estevan, SK#306 Wicklow Centre - 1133-4th Street, Estevan, SK
SUN VALLEY LAND LTD.
306-634-6684
www.sunvalleyland.ca • [email protected] Petroleum Ltd. and
the underwriters of a $25 million
bought deal subscription receipt fi-
nancing have agreed to increase the
size of the bought deal financing to
11.43 million subscription receipts
for aggregate gross proceeds of ap-
proximately $40 million.
In all other respects the terms
of the financing and use of pro-
ceeds will remain as previously
disclosed.
Renegade increases nancing
Edmonton – Tim
Cyr, who owns Nootka
Island Lodge on the
west coast of Vancouver
Island, hopes his recent
spring trade show tour of
Western Canada, hooks
new oil patch anglers to
test the prolifi c salmon
and halibut fi shing in
Nootka Sound this sum-
mer.
“We use to get a lot
of Americans, but we
don’t see quite as many
with their economy way
it is,” said Cyr, who was
interviewed while man-
ning a booth with his
son Matt at the Edmon-
ton Home and Garden
Show in March.
“Fortunately, we have
a pretty strong Canadian
group of people. We’ve
been doing a lot more
trade shows and stuff in
Canada, especially in Al-
berta and Saskatoon.
“We haven’t done
the home show before,
but thought we’d try a
diff erent venue. So far it’s
been good. Th ere is a lot
of interest and people are
stopping by.”
Nootka Island off ers
all inclusive packages for
individuals and groups.
As the web site
states, the rates include
two guests per boat with
a guide, all fi shing gear,
care of your catch, a room
and all meals.
More importantly,
Nootka Sound is known
for supporting large
number of prized Chi-
nook that can range in
size from 20 to 40 lbs.
“Fighting wise, it’s
about a pound a minute,”
said Cyr.
“We are fortunate in
that we have the second
biggest fi sh hatchery on
the coast in our sound,
so that helps to enhance
all the stocks. Fishing is
as good now as it was 30
years ago.
“Th e fi sh have to
come by us to get to the
rivers to spawn, so we are
very fortunate that way.
“Usually when they
start showing up, the
fi shing is consistent
throughout the season.
Th e forecast for the re-
turn looks bigger this
year.
“Th e fi shing season
begins in June, and we
go through to September
with Chinook, coho and
halibut all through that
timeframe.”
Th e Nootka Island
Lodge display booth is
plastered with photos of
happy anglers embrac-
ing their weighty catch
as proof the marketing
is real.
Cyr and his son
started their annual trade
show swing across the
west at Saskatoon Sports
and Leisure show in ear-
ly March with the wind
up at the Grande Prairie
Sports Expo in April.
“We are still after the
oilpatch client,” said Cyr.
“Th ere is lots of interest.
Th e only thing is with
northern Saskatchewan
and Alberta, we are com-
peting with the Prince
Rupert area for fi shing,
but it’s been good edu-
cating people about the
west coast of Vancouver
Island.
“Based on numbers
from the Department of
Fisheries and Oceans –
they do a catch to angler
ratio –our area is known
as one of the highest
catch to angler ratios.”
Th is season will mark
the 28th year that Tim
and his wife Sandy have
run the lodge along with
help from their daughter
Katie and son Matt and
his fi ancé Kym.
“We have been do-
ing this for 27 years, and
our repeat business is
very good and our word
of mouth from our re-
peat business is probably
our best advertising,”
said Cyr who lives in
Palm Springs in the off
season.
“We want to make
sure guests have a good
time to ensure they come
back.”
Nootka Island Lodge
was the subject of an ini-
tial Pipeline News story
last September shortly
after they began to ad-
vertise to the oil and gas
market in Saskatchewan
in the wake of the U.S.
economic downturn.
“We‘re getting some
interest from Pipeline News readers,” said Cyr.
“Th is is our second year,
so we will keep plugging
away, and hope we get
good responses from it.”
At the Saskatoon
Trade Show, Cyr gave
away a fi shing trip to the
Saskatchewan Wildlife
Federation to promote
the show and the lodge
and he did likewise in
Edmonton and Grande
Prairie.
Nootka Lodge is
more accessible than ever
for oilpatch workers es-
pecially for Albertans
who can fl y direct by
WestJet from Edmon-
ton or Calgary to Comox
on Vancouver Island in
about an hour and half –
at their own expense.
“From Comox, a lot
of people rent a car and
drive over to the other
side of the island,” said
Cyr. “It’s about an hour
and half drive and then
you jump on a fl oat plane,
and you are there in 10 or
15 minutes.”
Guests are allowed to
take home a total of eight
salmon and two halibut
in insulated foam cool-
ers that Nootka Lodge
supplies as legal carry-on
luggage.
“If you leave the
lodge at 2 p.m., you are
back home at 11 that
night,” said Cyr, noting
the fi sh will be cool and
fresh on arrival.
“We cater to indi-
vidual and groups,” he
added. “Th e nice thing
is about 20 people fi ll
the lodge. If companies
send groups of customers
or employees as a thank
you for doing business, it
works out quite nice.”
Th e Nootka Island
Lodge web site notes the
sound was discovered by
Captain Cook who sailed
into the area in 1778 on
the Resolution and Dis-
covery.
Asked if Cook and
his crew stayed at Nootka
Island Lodge to fi sh Cyr,
deadpanned, “We weren’t
quite open yet.”
PIPELINE NEWS May 2010 C27
738 5th Street (back door) Phone: 634-3522
24 Hour Service - 7 Days A Week!
• Two Way Radios• Alarm Monitoring
• Safety Checks
"We Dispatch for the Oil Patch"
902 - 4th Street, Estevan, SK S4A 0W3 Business: (306) 634-2628 (24 hours)
Progressive RealtyLorna PylychatyBroker/Owner
For information on this or any of our other listings please contact us at 634-2628 or email at
Situated on the new truck bypass, all lots will be serviced to property line, all roads developed.
ByPass Industrial Park • MLS #365438
Your Commercial & Industrial Property Professional
Nootka angles for oilpatch guests
Matt Cyr talks with customers about shing at Nootka Island Lodge at the Edmonton Home and Garden show.
PIPELINE NEWS May 2010C28
“MORE THAN JUST GRAVEL”• Top Soil • Gravel • Top Soil • Gravel
• Sand & Crushed Rock • Municipal & Oil Lease • Sand & Crushed Rock • Municipal & Oil Lease Road Gravelling • Aggregate Screening Road Gravelling • Aggregate Screening
• Excavating • Loaders • Graders • Lowbeds• Excavating • Loaders • Graders • Lowbeds
Cell: 577-7553Cell: 577-7553Fax: 455-2433 • ARCOLA Of ce:Fax: 455-2433 • ARCOLA Of ce: 455-2429455-2429
• Oilfield Graveling
• Gravel Crushing & Screening
• Sealed Trailers for Hauling Contaminated Waste
• Site Preparation
• Grading
• Excavating
• Heavy Equipment Hauling
• Car/Truck Wash
• COR Certified
TOLL FREE 1-888-532-5526Creelman, Sask.
Larry AllanCell: (306) 421-9295
Shop: 433-2059; Fax: 433-2069
- Oil eld Maintenance - Service Crews- Pressure Welding - Pipeline Construction
- Battery Construction - Rent or SellNew & Used Equipment
Randy: 634-5405 - Cellular 421-1293Darcy: 634-5257 - Cellular 421-1425 • Fax: 634-4575
LOCALLY OWNED & OPERATEDBOX 843, ESTEVAN, SK.
24 Hour Service - 634-8737
OIL & GAS, CORPORATE & TRUSTS
THOMAS A. SCHUCK
319 Souris Avenue N.E.,Weyburn, SK
www.nswb.com
(306) 842-4654
Re-organizationsTaxation of Mineral Holdings
Mineral & Royalty TrustsFamily Trusts & Joint Ventures
Incorporation of Oil Field Companies
Big enough to meet your needs;Small enough to care that we do!
Artificial Lift ServicesBy integrating technology and service, Schlumberger can provide an optimum lift system for your well and optimize pump and well performance while reducing operating costs.
Other available services include Drilling & Measurements, Wireline – Open Hole and Cased Hole and Well Services.
Estevan, SK306-634-7355www.slb.com/artificiallift
For Sale: 2008 38 Cube
Heil Tank TrailerTriaxle, air ride, extra valves.
Less than 90 days of use. Current inspection. Brand new steering
tires. Located at Arcola, SK.
Phone: 306-455-2224Cell: 577-7970
Coming UpThe new Best Western hotel under construc-tion in Estevan should help alleviate accom-modation shortages of recent years.
Photo by Brian Zinchuk
Career
Career O
pportunitiesO
pportunitiesPIPELINE NEWS May 2010 C29
Brady Oilfield Services LP.
Truck Drivers Wanted
Weyburn, Halbrite and surrounding area, Oil eld Safety Certi cates an asset but
not necessary.Bene ts package available.
Attn: Scott JuravleP.O. Box 271, Midale, Sask. S0C 1S0
Fax: (306) 458-2768
HELP WANTEDCD Oilfield Servicing Ltd.
is currently hiring for all positions. All tickets & Class 3A License an asset,
experience preferred but will train the right applicant.
Call Adam at 204-851-2118
RIG MANAGERS / DRILLERS / DERRICKHANDS / FLOORHANDS
Ask about our competitive pay, excellent employee benefits and opportunities for advancement.
Applicants are invited to submit resumes along with driver’s abstract to [email protected] or fax to (306) 634-8238. We thank all applicants for their interest, however only those who will be interviewed will be contacted.
Eagle Well Servicing is a dynamic and rapidly growing company. We understand that a company is only as good as its people, and we’re proud of the exceptional team we’ve built. If you are looking to become a part of a fast paced and challenging team-based work environment, we are the place for you.
Estevan, Saskatchewan
email: [email protected]
IROC Energy Services combines cutting-edge technology, state-of-the-art, equipment and depth of experience to deliver a product and services offering that’s unrivaled in the
oilfield services business. IROC.... we’re ready.
WELL SERVICING
www.eaglerigjobs.com
Fax Resumes to 306.482.5256 Apply online at
www.gregcousinsconstruction.com
Will be responsible for all aspects of oil field facility and maintenance construction, welding QC and
subcontractor management.
EMPLOYMENT OPPORTUNITY
QC Project Manager
Greg Cousins Construction Ltd.
Full Time Employment
for Picker Truck HelpersCall Mel at (306) 487-2525
Lampman, SK
CAREER OPPORTUNITY
3rd, 4th or Journeymen
MECHANICSRequired for Fast Paced Truck Shop.
Competive salary, benefi ts package
& opportunity for advancement.
Apply with Resume to Claude:Fax: 306-825-6305
Drop by: 3702, 41 Street, Lloydminster, SK
Phone (306) 825-6302 • Fax (306) 825-6305Box 796, 3702 41 Street Lloydminster, SK S9V 1C1
Three service rigsThis trio of Rearden service rigs could be found on the west side of Wey-burn on April 6.
Photo by Brian Zinchuk
Experienced Crew ForemanFOR LLOYDMINSTER AREA
MUST: • Have Valid Drivers License & Be A Team Player• Safety Tickets • Picker & Bobcat Experience An Asset
C’s OFFERS: • Top Wages • Benefits Package• Performance Bonuses • Scheduled Days Off
• Opportunity For Advancement• C.O.R. Safety Program • AB & SK B31.3 Q.C.
• Premium Equipment
DUTIES: • Daily Operation Of A Light Picker Truck• Pipe-fitting & Construction
Apply inconfidence to:
Fax (780) 808-2273
OILFIELDCONSULTING & CONSTRUCTION
SERVICE LTD.
Fax: (780) 872-5239
PLASMA TABLE OPERATOR
Applicants must have welding background.Driver’s license required. Reliable, team player.
Wages depend on experience. Benefi ts available.Performance bonuses.
Only those to be interviewed will be contacted.
Apply in confi dence to: Fax (780) 808 - 2273
www.suretuf.com
Full Time Employment
for
1-A Truck Drivers• Winch experience an asset
Call Mel at (306) 487-2525
Lampman, SK
Phoenix Technology Services is a progressive Calgary based directional drilling company that is seeking motivated, team oriented individuals to fi ll the following positions for both domestic and international:
Measurement While
Drilling (MWD) OperatorsSeeking dynamic individuals who are detail oriented, have strong communication skills and willing to work in a rig environment. Previous MWD, rig experience or petroleum background would be an asset. Both employees and consultants required.
Please forward MWD applications to:
Directional DrillersPrevious drilling/oil fi eld experience is required for both junior and
senior positions available. Excellent interpersonal skills are required in addition to analytical capabilities.
Please forward Directional Drilling
applications to:
Pheonix Technology Services LP
11400-27th Street SE
Calgary, Alberta T2Z 3R6
TRICAN WELL SERVICE LTD. is one of Canada's fastest growing well service companies, providing a comprehen-sive array of specialized products, equipment and services utilized in drilling, completion, stimulation and reworking of oil and gas wells in the Canadian and International market-place. At Trican, we base our recruitment practices on the belief that a company's greatest asset is its people.
Trican provides services in Fracturing, Cementing, Acidizing, Coiled Tubing, Nitrogen and related services in our field bases ranging from Fort Nelson, BC to Estevan, Saskatchewan.
WE ARE CURRENTLY HIRING:
• SUPERVISORS• OPERATORS • DRIVERS
• FRAC HANDS• HEAVY DUTY DIESEL MECHANIC
• YARD/SHOP PERSONA valid Class 1 required as well as prior experience in the above pressure pumping operations.
Trican offers a dynamic work environment and a competitive salary and benefit package. Please apply in person to any of Trican's field bases or forward your resume and references, in confidence to:
Trican Well Service Ltd.Box 849
Estevan, SK S4A 2A7Fax: (306) 637-2065 • Email: [email protected]
Bucyrus International Inc. is a NASDAQ traded company and a world leader in the design and manufacture of high productivity mining equipment for surface and underground mining. In addition to machine manufacturing, Bucyrus manufactures high-quality OEM parts and provides world-class support services for its equipment.
Bucyrus has one of the most skilled, highly trained and talented workforces of anyone in our industry. Our employees work together to achieve success and growth in a highly competitive, international marketplace.
Bucyrus Canada Ltd. Offers a competitive compensation package with excellent opportunities for growth and advancement.
HOW TO APPLY:
Fax: 780-482-7858 or Email [email protected]** Write the position title in the subject line
www.Bucyrus.com
Reliability at work
CUSTOMERSUPPORTREPRESENTATIVE
We are seeking an individual to support the Saskatchewan area.
This position is primarily responsible for retaining good customer relationships, supporting customer machines, and helping Bucyrus Canada reach yearly sales and bookings goals. Essentially this position will cultivate Bucyrus Canada customers. This will include but not be limited to scheduling customer visits, resolving customer concerns, and forecasting/supportingfuture customer requirements.
Qualifications and Experience
Post Secondary Degree or Diploma5 - 7 years experience in a customer service role within a mining/manufacturingenvironmentProficient in MS Office SuiteKnowledge of Bucyrus products is an asset Demonstratedorganizational and communication skills
Career Career OpportunitiesOpportunities
Contact your local pipeline sale rep. to get 28,000 Circulation on your career ad!
Speci c Targeting
PIPELINE NEWS May 2010C30
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PIPELINE NEWS May 2010 C31
C & B Oil eld Services Inc.
Aaron Folkerts306-483-7258Frobisher, SK
OIL / INDUSTRIAL / AGRICULTURAL / AUTOMOTIVE
352-7668
1404 SCARTH ST., REGINA, SASK.website. www.continentalengine.ca FAX 525-8222
TOLL FREE 1-877-778-7460WEEKDAYS
7:30 A.M. - 5:30 P.M.SATURDAYS9 A.M. - 1 P.M.
STOCKING ENGINE PARTS
• Pressure Vessels• Well Testers• Frac Recovery• Wellbore Bleedoff• Ball Catchers• 400 bbl Tanks• Rig Matting
Dale (306) 861-3635 • Lee (306) 577-7042Lampman, Sask.
• Complete Trucking Services
Saskatchewan Owned & Operated
Bulk Agency
912 6th Street, Estevan
634-7275Toll Free: 1-866-457-3776
TERRY DODDS(24 hrs.) (306) 634-7599
Cell. (306) 421-0316
“All Your Construction and Maintenance Needs”SPECIALIZING IN: ENGINES, PUMP UNITS, UNIT
INSPECTIONS, PIPE FITTING, TREATERS AND PRESSURE TICKET WELDING
Box 1605, Estevan, Sk. S4A 2L7Cell. (306) 421-3174, (306) 421-6410, (306) 421-2059
Fax: (306) 634-1273
M.E.T. OILFIELDCONST. LTD.
Box 208 Estevan, SK S4A 2A3
461-8471 • 461-8472 • 461-8473
Call: Clinton Gibbons
311 Kensington Avenue, Estevan • 634-1400
www.pennwest.com
COR Certi edEstevan, Sk.
634-7348
VegetationControl
(Chemical or Mechanical)
Southeast Tree Care
JUSTIN WAPPEL - Division Manager
401 Hwy. #4 S. Biggar, SaskatchewanPO Box 879 S0K 0M0Ph (306) 948-5262 Fax (306) 948-5263Cell (306) 441-4402 Toll Free 1-800-746-6646Email: [email protected]
a l t u s g e o m a t i c s . c o m
Specializing in well site and pipeline surveys
Yorkton
306.783.4100
Weyburn
306.842.6060
Regina
800.667.3546
Swift Current
306.773.7733
Lloydminster
780.875.6130
Medicine Hat
403.528.4215
Edmonton
800.465.6233
Calgary
866.234.7599
Grande Prairie
780.532.6793
Lloyd Lavigne • Kirk ClarksonOwners/Managers
6506 - 50th AvenueLloydminster, AB
Phone: (780) 875-6880
5315 - 37th StreetProvost, AB T0B 3S0
Phone: (780) 753-6449
Fax: (780) 875-7076
24 Hour ServiceSpecializing in Industrial & Oilfield Motors
Midfield Supply ULCP.O. Box 1468 402, #9 Service Road South
Carlyle, Saskatchewan S0C 0R0 6:7c
Bus: 306-453-2728 Cell: 306-577-8085Cell: 306-482-7755 Fax: 306-453-2738
PIPELINE NEWS May 2010C32