Transcript
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4 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

ON THE COVER: Butch Graham, senior auctioneer at Ritchie Bros. Auctioneers, has helped oil and gas pipeline professionals buy and sell equipment for more than two decades. He shows up at industry events all over the world, helping with fundraising and leading some to call him the “voice of the oil and gas industry.”

16 A Voice That Sells Talking with Butch Graham about the oil and gas pipeline industry.

By Bradley Kramer

FEATURES

22 Directional Drilling Tackles Tricky Terrain One project went through hard rock in Georgia, and the other

crossed a busy harbor in Virginia. Michels Directional Crossing and Mears Group Inc. drill through the challenges.

28 Delivering Pipelines by Air Vacuum technology helps improve the safety and operational costs

of lifting pipes on a jobsite. By Leanne Butkovic

32 Finding Approval A look at how the Federal Energy Regulatory Commission (FERC)

approves infrastructure projects, sets rates and enforces the oil and gas market. By Bradley Kramer

36 Deconstructing Worksite Hazards Review the basics of Job Safety Analysis, a simple, inexpensive and

effective management tool that can help reduce worksite hazards. By George Kennedy

DEPARTMENTS8 News

12 Project Roundup

14 Market Watch

40 Product Showcase: ROW/Land Clearing

46 Events Calendar

COLUMNS6 Editor’s Message

MARKETPLACE45 Business Cards

46 Index of Advertisers

September/October 2009Volume 2 Issue 2

NORTH AMERICAN PIPELINES is published bi-monthly. Copyright 2009, Benjamin Media, Inc., P.O. Box 190, Peninsula, OH 44264. All rights reserved. No part of this publication may be reproduced or transmitted by any means without written permission from the publisher. One-year subscription rates: complimen-tary in the United States and Canada, and $99.00 in other foreign countries. Single copy rate: $10.00. Subscriptions and classified advertising should be addressed to the Peninsula office. Periodical Postage Paid at Peninsula, Ohio and at additional mailing offices. POSTMASTER: send address changes to NORTH AMERICAN PIPELINES, P.O. Box 190, Peninsula, OH 44264 USA.

Canadian Subscriptions: Canada Post Agreement Number 40040393. Send change of address information and blocks of undeliverable copies to P.O. Box 1051, Fort Erie, ON L2A 6C7.

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The Energy to Push Through

The global economy continues to slowly lift itself from this deep downturn, and oil and gas infrastructure projects have hit the brakes. Or have they?

After strong years of growth from 2006 to 2008, when natural gas pipeline construction helped fuel the recent boom years, the industry has cut back on building large-scale transmission lines, according to Jeff Wright, direc-tor of energy projects for the Federal Energy Regulatory Commission (FERC). After approving almost 6,000 miles of pipeline projects in the last three years, the commission has approved only 172 miles for 2009. But don’t bother running for cover.

“The sky is not falling like everybody says,” says Ritchie Bros.’ Butch Graham, who assured me when I spoke with him for this issue’s cover story (on page 16) that pipeline contractors will help pull us out of the recession.

Indeed, Wright says that while the miles of pipeline projects might be down, capacity is increasing as pipeline owners build support infrastructure for the pipe-lines and storage facilities.

Many of the projects that were approved in the last few years are still in the construction phases, like the two natural gas projects we cover in this issue. Michels Directional Crossing and Mears Group completed two major expansion projects with horizontal directional drilling (see page 22).

Regardless of what happens, the world needs energy, and energy needs infra-structure. Pipeline projects continue to move forward — albeit at a slower pace than in the past few years — and more projects are waiting in the wings. You can read about what FERC has in its approval process and other regulatory issues in “Finding Approval” (on page 32).

The oil and gas industry is even finding ways to coexist with alternative and renewable energy sources, as Chevron just started building a 29-megawatt solar steam plant at one of its oil fields in Coalinga, Calif. (New York Times, Aug. 24). The power plant will be used to inject steam into the oil wells to enhance produc-tion.

Forbes magazine put ExxonMobil on its cover as the “Green Company of the Year” for investing $600 million on developing algae farms to produce automotive gasoline and continuing to boost its natural gas production.

How’s that for green? Despite some slowdowns in the industry, the pipeline industry is resilient.

We all need energy to push through our challenges and keep business moving.

Bradley KramerAssociate [email protected]

Editor’s Message

Publisher Bernard P. Krzys

Associate Publisher Robert D. Krzys

Editor James W. Rush

Associate Editor Bradley Kramer

Contributing Staff Editors Sharon M. Bueno

Keith Gribbins Jason Morgan

Pam Stask

Creative Director W. M. Conley

Graphic Designers Sarah Hayes Chris Slogar

Elizabeth C. Stull

Marketing Manager Kelly Dadich

Regional Sales Managers Ryan Sneltzer

Dan Sisko

Circulation Manager Alexis R. Tarbet

Web & Interactive Manager Mark Gorman

Conference Manager Michelle Magyar

Editorial & Advertising Offices

1770 Main St., P.O. Box 190

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(330) 467-7588 • Fax: (330) 468-2289

www.napipelines.com

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Reprints

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Ph: 877-652-5295

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8 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

North America News

The 1,000-mile Alberta Clipper Pipeline expansion from Alberta, Canada, to the United States is set to begin construction now that funding is in place. Enbridge Inc. and Enbridge Energy Partners have concluded a joint fund-ing agreement under which Enbridge will effectively fund two-thirds of the $1.2 billion U.S. segment of the Alberta Clipper crude oil pipeline project. The company expected to begin construction soon after receiving approval from the U.S. Department of State on Aug. 20.

The Alberta Clipper project consists of a 36-in. diameter pipeline and associated pump-ing and terminal facilities from Hardisty, Alberta, to Superior, Wis. This 1,000-mile (1,607-km) segment is designed to resolve expected capacity constraints.

The segment from Hardisty to the U.S. border is being undertaken by Enbridge Pipelines Inc., a wholly owned subsidiary of Enbridge Inc., at an estimated cost of $2.4 billion CAD. The segment from the U.S. border to Superior is being undertak-en by Enbridge Energy Partners through Enbridge Energy, Limited Partnership. Both segments are scheduled to be in service by mid-2010.

The initial capacity of the line will be 450,000 barrels per day of heavy crude, expandable at very low cost, through the addition of pumping facilities, to 800,000 barrels per day.

Under the terms of the agreement, Enbridge will participate in the debt financ-ing that Enbridge Energy Partners raises for the project, and will fund two-thirds of the project’s equity requirements directly into Enbridge Energy, Limited Part-nership, the subsidiary of Enbridge Energy Partners that is constructing the project.

Enbridge will be entitled to two-thirds of the earnings and cash flow that Enbridge Energy, Limited Partnership, generates from the base project. Enbridge and Enbridge Energy Partners will each have a right of first refusal on each other’s investment in the project, and Enbridge Energy Partners will retain the right to fund up to 100 percent of any expansion and dilute Enbridge’s interest down correspondingly. The terms of the agreement were reviewed and approved by a committee of Enbridge Energy Partners’ independent directors.

“In addition to Alberta Clipper, Enbridge Energy Part-ners is undertaking a number of very attractive growth op-portunities including the expansion of our North Dakota system to accommodate increased Bakken shale produc-tion, the recently completed Southern Access expansion of our crude oil mainline and the Clarity gas pipeline. There are further attractive opportunities in sight for both crude

oil and natural gas infrastructure,” says Terrance McGill, president of the partnership’s management company and of its general partner.

“The joint funding arrangement for Alberta Clipper substantially reduces the equity required to complete the permanent funding for these projects down to a level that we can likely accommodate through sale of non-strategic assets, or a traditional private or pub-

lic placement of partnership units,” McGill says. “As a result, these projects should all be accretive and we will avoid the dilution, which would otherwise result from a very large equity issue, given current market condi-tions. At the same time, with Enbridge participating in the debt, which needs to be issued for Alberta Clipper, it will reduce our call on debt markets and should improve our borrowing rates.

“Enbridge Energy Partners is now well positioned to consider new opportunities as they arise,” McGill says.

“The joint funding for the U.S. segment of Alberta Clip-per is a win-win for Enbridge and Enbridge Energy Partners and our shippers,” says Patrick Daniel, president and chief executive officer of Enbridge Inc. “For shippers, it should result in lower tolls because Enbridge Energy Partners’ cost to finance the debt component of Alberta Clipper should be reduced.”

Daniel also adds: “Based on Enbridge’s current capital plans, we have a substantial cushion of surplus equity to fund this investment as well as other opportunities that may become available.”

Alberta Clipper Pipeline Project Ready to Set SailEnbridge to Assist Enbridge Energy Partners With U.S. Alberta Clipper Funding

Workers lay welded pipe in a trench in Hardisty, Alberta, where the Alberta Clipper Pipeline will continue toward the U.S. market via Superior, Wis.

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Game On: Midcontinent Express Pipeline Goes in Service

Turn on the gas. Construction of the approximately 500-mile Midcontinent Express Pipeline (MEP) is complete and natural gas transportation service commenced Aug. 1, on the pipeline from Delhi, La., to Transcontinental Pipe Line’s Station 85 in Butler, Ala.

Interim service had begun on the pipeline from Ben-nington, Okla., to Delhi in April. MEP is a joint venture of Kinder Morgan Energy Partners LP and Energy Transfer Partners LP.

“We are delighted that the final leg of the Midcontinent Express Pipeline is in service,” says Steve Kean, president of Kinder Morgan’s Natural Gas Pipelines group. Kinder Morgan constructed and will operate the pipeline.

“The completion of this final segment of MEP affords shippers and producers in the Barnett Shale, Bossier Sands and other producing regions access to markets in the eastern United States,” says Lee Hanse, senior vice president of Energy Transfer’s Interstate Pipeline group.

MEP has multiple receipt and delivery points along the pipeline system, which originates in southeast Oklahoma, crosses northeast Texas, northern Louisiana and central Mississippi and ends in Alabama. Capacity is currently up to 1.25 billion cubic feet (Bcf) per day in Zone 1, which interconnects with the Columbia Gulf Transmission system in Delhi and up to 0.84 Bcf per day in Zone 2, which inter-connects with the Transcontinental Gas Pipe Line system in Butler.

An expansion of the pipeline is expected to be completed in 2010, which will further increase MEP’s capacity to ap-proximately 1.8 Bcf per day in Zone 1 and 1.2 Bcf per day in Zone 2. The pipeline’s capacity, including expansion, is fully subscribed with long-term binding commitments from creditworthy shippers.

Chevron’s Next-Gen Ultra-Deepwater Drillship Goes Gulfing

There’s a new ship on the Gulf of Mexico. The Discov-erer Clear Leader, an ultra-deepwater drillship, newly built to Chevron’s specifications, has begun work for Chevron U.S.A. Inc., a wholly owned subsidiary of Chevron Corp.

The state-of-the-art vessel is capable of drilling wells in 12,000 ft of water to a total depth of 40,000 ft, surpassing the limits of previous technology. The ship will be stationed

in the deepwater U.S. Gulf of Mexico under a five-year contract with Transocean.

“The Discoverer Clear Leader offers the most-advanced drilling capabilities in the offshore drilling industry and will enable Chevron to expand the search for new domes-tic sources of energy,” says George Kirkland, executive vice president of Chevron’s Upstream and Gas division.

Chevron is one of the top lease holders and producers in the deepwater Gulf of Mexico. The drillship will begin work for Chevron at several of its deepwater projects, including Tahiti and Jack/St. Malo.

The Discoverer Clear Leader is the first of two new drill-ships to be commissioned for Chevron. The second vessel, the Discoverer Inspiration, is expected to be delivered in early 2010.

The drillship features Transocean’s patented dual-activity drilling technology designed to enable parallel drilling operations from a single derrick, saving time and money in deepwater well construction compared with conventional rigs.

Williams Signs $258 Million Deal to Add Piceance Basin Properties

Tulsa, Okla.-based Williams will fork over approximate-ly $258 million to an unnamed private company for the purchase of additional properties in the Piceance Valley in western Colorado, east of the company’s existing assets in the region. The parties expect the transaction to close near the end of the third quarter.

The assets, which are geologically similar to other Wil-liams assets in the Piceance Valley, could represent an es-timated 795 billion cubic feet equivalent (Bcfe) of net re-serves. Of the estimated reserves, approximately 150 Bcfe are proved.

In addition, the properties contain exploration upside from deeper formations and additional potential locations. Not including the new properties, Williams currently owns approximately 190,000 net acres in the Piceance Basin.

The purchase covers 21,800 net acres and includes 28 wells currently producing 24 million cubic feet equiva-lent per day (MMcfe/d), related gas and water gathering facilities, 94 approved drilling permits and more than 800 drillable locations at 10-acre spacing.

“We’ve identified an opportunistic bolt-on acquisition that allows us to quickly add meaningful reserves, produc-tion, cash flows and earnings per share by leveraging off of the strength of our low cost structure in the Piceance Basin,” says Steve Malcolm, chairman, president and chief executive officer.

“The anticipated production also can be an important additional supply source for our Northwest Pipeline,” Malcolm says.

With regard to development, Williams plans to incre-mentally add drilling rigs to its Piceance operations, with one additional rig tentatively slated for fourth quarter 2009, followed by one more in 2010 and two more in 2011. Williams is currently running a total of eight rigs in western Colorado.

Williams plans to fund the $258 million acquisition investment, along with $15 million in projected 2009 development costs and $50 million of the 2010 develop-ment costs, with cash on hand. The company expects to fund the balance of the 2010 and 2011 capital require-ments largely through the anticipated cash flow from these properties.

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Chevron’s Discoverer Clear Leader will be stationed in the deep waters of the Gulf of Mexico, where it will be drilling at depths up to

40,000 ft.

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“The acquisition fits perfectly with our low-risk, high-return profile in the Piceance Basin,” says Ralph Hill, president of Williams’ exploration and production busi-ness. “This is a rare find. The existing wells in the area we’re acquiring are very productive, producing a third more gas than Williams’ existing prolific Piceance Valley wells for a similar cost.”

Williams has extensive infrastructure in place in the Piceance Basin. In addition to its natural gas drilling activities, the company is in the process of starting up the Willow Creek natural gas processing plant, and also operates the interstate Northwest Pipeline that runs through the basin.

DCA’s Kennedy Set to RetireDCA executive vice president and chief operating officer

Dennis Kennedy will be retiring from his post, effective Dec. 31. Robert Darden, most recently executive director of Plano, Texas-based QuEST Forum, has been named by the DCA board to the position.

Kennedy has held the position of executive vice president and chief operating officer since 1989. He will remain with DCA as a consultant.

Darden has more than 25 years of international meet-ing management and association experience. Before join-ing QuEST Forum, Darden previously held positions with the Young Presidents’ Organization and Spear One Prod-ucts. He graduated from Louisiana State University and

also attended the Paul M. Herbert Law Center. Darden is a member of the American Society of Association Executives, Meeting Professionals International and has been qualified as a Certified Meeting Planner.

DCA is a primary advocate and organization of con-tractors who are involved in horizontal directional drilling throughout the United States. Members work in the construction, maintenance and rehabilitation of gas dis-tribution pipeline systems and installation of cable and telecommunication systems.

El Paso Corp. Announces Partner for Ruby Pipeline Project

The Ruby Pipeline got another stakeholder after El Paso Corp. announced it has executed a binding agreement with Global Infrastructure Partners (GIP) whereby GIP will acquire a 50 percent interest in the Ruby Pipeline project.

“We are pleased to have Global Infrastructure Partners join us in the Ruby project,” says Jim Cleary, president of El Paso’s Western Pipelines. “We continue to make excellent progress on Ruby, and we look forward to it being one of the key assets in our pipeline franchise.”

Under the terms of the agreement, announced July 27, GIP will invest up to $700 million in the project, which represents a 50 percent equity interest, in the following three major areas:

• $405 million in the form of a 7 percent secured note that will be drawn upon to reimburse one half of El Paso’s costs to date, as well as to fund one half of the future costs of developing the project. The note will be exchanged for a convertible preferred equity interest in Ruby at the close of construction financing.

• $145 million contributed as a preferred equity interest in the Cheyenne Plains Pipeline that will be exchanged for a convertible preferred equity interest in Ruby at final project completion.

• Depending on the amount of external financing that is raised, GIP could invest up to an additional $150 million as a convertible preferred equity interest in Ruby.

The Ruby Pipeline project is a 675-mile, 42-in. interstate natural gas pipeline that will access growing sources of sup-ply from multiple Rockies’ basins and make those supplies available to California, Nevada and the Pacific Northwest region. Ruby has filed with the Federal Energy Regulatory Commission (FERC) to have an initial design capacity of up to 1.5 billion cubic feet (Bcf) per day.

El Paso will be responsible for the construction of the Ruby Pipeline project and its operations. The Ruby Pipeline is on schedule and is expected to be completed at or below its $3 billion budget. Should construction costs come in under budget, El Paso will retain all benefits. Conversely, El Paso will absorb any cost overruns.

In January, El Paso filed an application with FERC for a certificate of public convenience and necessity, under Section 7(c) of the Natural Gas Act, to construct and operate the Ruby Pipeline. In June, FERC issued a Draft Environmental Impact Statement (DEIS), which was con-sistent with Ruby’s construction plan and schedule. Ruby anticipates timely issuance of FERC’s Final Environmen-tal Impact Statement in October.

Assuming FERC approval in the first quarter of 2010, con-struction would begin in the second quarter of 2010 with the pipeline completed in time for a March 2011 in-service date.

Dominion East Ohio Plans Pipeline Replacement in Akron, Ohio

Dominion East Ohio began construction in late July on a pipeline infrastructure replacement project in South Akron’s W. Thornton Street neighborhood. The company expects to complete construction by year’s end.

The project will replace 21,000 ft, or nearly four miles, of main lines in an area centering on W. Thornton Street, with work also scheduled for the following streets: W. Bar-tges Street, Campbell Street, Raymond Street, Howe Street, Scheck Street, Russell Avenue, W. Bowery Street, Kiefer Court, Norka Street and Norka Court, Moeller Avenue, Lane Street, Schumacher Avenue, Snyder Street, Haynes Street, Nathan Street and Rhodes Avenue.

The project is part of the company’s planned 25-year program to replace 4,100 miles, or nearly 20 percent, of its

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(From left) Dennis Kennedy, DCA president, Shepard Poole and Robert Darden.

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burg, Russia. The longest leg was 12,300 nautical miles from Qingdao, China, to Rio de Janeiro, Brazil. Some of the other ports the race visited included Cape Town, Singapore, and Stockholm.

Late April to mid-May the Volvo Ocean Race made its first ever stop-over in Boston. Volvo took the opportunity to host a gathering of contractors to see the in-port races. Joe Purpura of Midwestern Contractors and his wife Anne took the opportunity to join Volvo at the race. Midwestern Contractors is a gas distribution contractor based in Chicago. Purpura is a past president of the Distributors Contractors Association (DCA).

From Boston, the Volvo Ocean Race proceeded back to Europe. The winning team was Ericsson 4. Coming in a close second was the Puma team captained by American Ken Read. The next Volvo Ocean Race is scheduled to begin Oc-tober 2011, again from Alicante.

21,000-mile pipeline system, increasing safety and reliability. The pipeline re-placement program could generate $4.4 billion in total regional economic activi-ty over the next 25 years, creating or sup-porting as many as 3,000 jobs, according to a study by Kleinhenz & Associates, a Cleveland development consultant. This study also estimates that the pipeline project would generate an additional $321 million in state and local income and sales tax revenues.

Volvo Ocean Race Attracts Oil and Gas Contractors

The Volvo Ocean Race is a nine-month event of 70-ft sailboats that covers over 37,000 nautical miles. The race traverses some of the world’s most treacherous seas. It is an exceptional test of sailing prow-ess and human endeavor, which has been built on the spirit of great seafarers.

Each of these highly engineered sail-ing marvels has a crew of 11 that requires their utmost skills, physical endurance and competitive spirit day and night, as some legs of the race are more than 30 days at a time.

The 2008-2009 race covered 11 ports in 11 countries, featuring eight boats. The race started Oct. 4, 2008, in Alicante, Spain, and finished June 16 in St. Peters-

The Puma Ocean Racing team streaks across Boston Harbor on in-port race day.

Joe and Anne Purpura at the reception in the Volvo Ocean Race Village in Boston.

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The following oil and gas pipeline projects have been announced. Projects are in order of approximate starting date.

U.S. Pipeline Inc. has been awarded a contract by Boardwalk Pipeline Partners to install two 1,600 ft horizontal directional drills of 42-in. pipeline in Bienville Parish, La. The superintendent is Jim Jennings. Approximate start date: June 16.

Blackwell Enterprises Inc. has been awarded a contract by U.S. Pipeline Inc. to hydro-seed approximately 10 miles of 24-in. pipeline right-of-way in Baton Rouge and Point Coupee Parishes, La. Headquarters is Port Allen, La. The superintendent is Bob Blackwell. Approximate start date: June 22.

Pe Ben USA Inc. has been awarded a contract by Snelson Companies Inc. to string 27 miles of 24-in. pipe in Rio Blanco County, Colo. Headquar-ters is Meeker, Colo. The superintendent is Eric Gregory. Approximate start date: June 22.

Welded Construction LP has been awarded a contract by Williams Gas Pipeline/Transco for pipeline investigation on mainline “D” of 42-in. pipeline in Fairfax County, Va. Headquarters is Manassas, Va. The superintendent is Joe Carter. Approximate start date: June 22.

Laney Directional Drilling Co. has been awarded a contract by Henkels & McCoy Inc. for directional pipeline drilling of 1,749 ft of 42-in. pipeline in Muskingum County, Ohio. Headquarters is on the jobsite. The superinten-dent is Jimmie Johnson. Approximate start date: July 1.

Blackwell Enterprises Inc. has been awarded a contract by Henkels & McCoy Inc. for right-of-way restoration and maintenance of approximately 60 miles of 42-in. pipeline in Lamar County, Texas. Headquarters is Paris, Texas. The superintendent is Glen Madden. Approximate start date: July 6.

L.A. Pipeline Construction Co. Inc. has been awarded a contract by Chesapeake Energy Corp. to install approximately five miles of 16-in. and 4,800 ft of 12-in. pipeline, plus launchers, receivers and valve settings and additional 16-in. through 6-in. segments pending in Wyalusing, Pa. Headquarters is Wyalusing, Pa. The superintendent is Jeff Waggoner. Approximate start date: July 6.

Laney Inc. has been awarded a contract by Sheehan Pipe Line Con-struction Co. for directional drilling on 50 miles of 30-in. pipeline in Audrain, Montgomery and Lincoln counties, Mo. Headquarters is Troy, Mo. The su-perintendent is Grady Keller. Approximate start date: July 6.

Snelson Companies Inc. has been awarded a contract by Williams Northwest Pipeline to relocate 10,500 ft of 22-in. pipeline in Ada and Can-yon counties, Idaho. The superintendent is Louie Garcia. Approximate start date: July 7.

Henkels & McCoy Inc. has been awarded a contract by Transcontinental Gas Pipeline to install 1.93 miles of 42-in. pipeline in Luzerne County, Pa. The superintendent is George Tisdale. Approximate start date: July 13.

Precision Pipeline LLC has been awarded a contract by Enbridge Energy (Streator to Manhattan Project) for 46 miles of 20-in. pipeline in LaSalle, Grundy and Will counties, Ill. Headquarters is Morris, Ill. The super-intendent is Russell Fischer. Approximate start date: July 13.

Snelson Companies Inc. has been awarded a contract by Puget Sound Energy for 33,000 ft of 16-in. pipeline in King County, Wash. The superinten-dent is Jeff Elliot. Approximate start date: unknown (announced July 13).

Snelson Companies Inc. has been awarded a contract by Avista Corp. to install 3.2 miles of 12-in. pipeline in Spokane County, Wash. The superin-tendent is Cliff Nielson. Approximate start date: July 13.

S T Pipeline Inc. has been awarded a contract by NiSource/Columbia Transmission for slip repair and pipe replacement of 100 ft of 24-in. pipeline in Mingo, W.Va. The superintendent is George McQuain. Approximate start date: July 13.

Rockford Corp. has been awarded a contract by Wild Goose Stor-age Inc. for installation of four miles of 24-in. pipeline in Butte County, Calif. Headquarters is Gridley, Calif. The superintendent is David Carlile. Approximate start date: July 15.

U.S. Pipeline Inc. has been awarded a contract by Williams-Transco for installation of 1.2 miles of 42-in. pipeline and L&R Asm. piping in Union County, N.J. Headquarters is Linden, N.J. The superintendent is Eugene Weber. Approximate start date: July 15.

Utility Line Services Inc. has been awarded a contract by East Resources/NFG to install 18.5 miles of 12-in. pipeline and a compressor station in Bradford, Lycoming and Tioga counties, Pa. Headquarters is Canton, Pa. The superintendent is Ron Michalkovich. Approximate start date: July 16.

Indianhead Pipeline Services has been awarded a contract by Michels Corp., U.S. Pipeline Inc. and Precision Pipeline LLC for the Enbridge Alberta Clipper and Southern Lights Project to manufacture approxi-mately 17,500 pieces of 36-in. pipeline and 171,000 ft of 20-in. pipeline in Kittson, Marshall, Pennington, Red Lake, Mahnomen, Clearwater, Beltrami, Hubbard, Cass, Itasca, St. Cloud and Carlton counties, Minn. Head-quarters is Deer River, Minn. The superintendent is Randy Rubenzer. Approximate start date: July 20.

L.A. Pipeline Construction Co. Inc. has been awarded a contract by Texas Gas Transmission LLC to install new pig traps in Butler and Warren counties, Ohio. Headquarters is Lebanon, Ohio. The superintendent is Steve Drake. Approximate start date: July 20.

Miller Pipeline Corp. has been awarded a contract by Vectren to replace 1,900 ft of 16-in. natural gas pipeline in Montgomery County, Ohio. The superintendent is Wes Bogard. Approximate start date: July 20.

U.S. Pipeline Inc. has been awarded a contract by Enbridge Energy to install approximately 400 ft of 36-in. pipe torch cuts in Beltrami County, Minn. Headquarters is Bemidji, Minn. The superintendent is Jim Jennings. Approximate start date: July 20.

Snelson Companies Inc. has been awarded a contract by Northwest Pipelines GP to install 16-in. and 24-in. piping in Rio Blanco County, Colo. Headquarters is Meeker, Colo. The superintendent is Mike Swanson. Approximate start date: July 23.

Dun Transportation & Stringing Inc. has been awarded a contract by Evraz Inc./Williams Gas to unload and stockpile approximately 80,000 ft of 30-in. pipe in Lincoln County, Wyo. The superintendent is Johnny Denton. Approximate start date: July 24.

Apex Pipeline Services Inc. has been awarded a contract by Columbia Gas Transmission Inc. for the following: 1) removal and replacement of approximately 400 ft of 20-in. steel pipe in Floyd County, Ky.; headquarters is Dana, Ky.; the superintendent is Ransford Vickers; and 2) the removal of approximately 1,200 ft of 12-in. pipeline and replace with approximately 1,200 ft of 8-in. steel gas line in Newport News, Va, and installation of launcher, receiver, valve assemblies and induction bends in Isle of Wright County, Va.; headquarters is Carrollton, Va.; the superintendent is Cecil Hill. Approximate start date: 1) July 27 and 2) Aug. 17.

Blackwell Enterprises Inc. has been awarded a contract by Henkels & McCoy Inc. for right-of-way restoration of approximately 30 miles of 42-in. pipeline in Fairfield, Perry and Muskingum counties, Ohio. Headquarters is Zanesville, Ohio. The superintendent is Bob Blackwell. Approximate start date: July 27.

Henkels & McCoy Inc. has been awarded a contract by Transcontinental Gas Pipe Line to install 3.99 miles of 42-in. pipeline in Somerset County, N.J. Headquarters is Neshanic, N.J. The superintendent is George Tisdale. Approximate start date: July 27.

PipeSak Inc. has been awarded a contract by Enbridge to supply 130 miles of 20-in. and 36-in. fabrication weights for the Alberta Clipper Proj-ect in Kittson, Marshall, Polk, Red Lake and Clearwater counties, Minn. Headquarters is Superior, Wis. The superintendent is Ryan Connors. Approximate start date: unknown (announced July 27).

BigInch Fabricators and Construction Inc. has been awarded a contract by Panhandle Eastern Pipeline to send a 26-in. launcher and receiver with associated piping in Morgan and Sangamon counties, Ill. Headquarters in Springfield, Ill. The superintendent is Frank Ayers. Approximate start date: July 29.

North American Pipelines Project Roundup

Listings Contributed by

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ing of approximately 102 miles of 20-in. and 36-in. pipeline in Itasca, St. Louis and Carlton counties, Minn., and Douglas County, Wis. The superintendent is Steve Lindenberg. Approximate start date: Aug. 17.

U.S. Pipeline Inc. has been awarded a contract by Enbridge Energy for construction of 87 miles of 36-in. and 20-in. pipeline with two spreads in Clearwater, Beltrami, Hubbard, Cass and Itasca counties, Minn. Headquarters is Bemidji, Minn. The superintendents are Wayne Fontenot and Jim Jennings. Approximate start date: Aug. 17.

Dun Transportation & Stringing Inc. has been awarded a contract by U.S. Pipeline Inc. for the stringing of two spreads of approximately 180 miles of 20-in. and 36-in. pipeline for the Alberta Clipper and Southern Lights Project in Clearwater, Hubbard, Beltrami, Cass and Itasca counties, Minn. The superintendents are John Zaruba and Greg Norman. Approximate start date: Sept. 1.

Want to see your project here? Submit you project to associate editor Brad Kramer at [email protected] with the subject heading “Project Roundup.”

Appalachian Pipeline Contractors LLP has been awarded a contract by Piedmont Natural Gas Co. to install 9.08 miles of 12-in. pipeline in Sumner County, Tenn. Headquarters is Gallatin, Tenn. The superinten-dent is Anthony Campbell. Approximate start date: Aug. 3.

Snelson Companies Inc. has been awarded a con-tract by Kinder Morgan Energy Partners LP to install a 10-in. line stopple and replace a 10-in. motor-operat-ed valve in Storey County, Nev. The superintendent is Lou Whitmire. Approximate start date: Aug. 6.

Henkels & McCoy Inc. has been awarded a contract by Spectra Energy to install 6- to 36-in. emergency anomaly digs in Bedford and Fulton counties, Pa. The superintendent is Nick Walters. Approximate start date: Aug. 10.

Laney Inc. has been awarded a contract by Sheehan Pipe Line Construction Co. for road boring on the 36-in. and 42-in. Elba Express Pipe-line in Chatham, Warren, McDuffie, Wilkes, Elbert and Hart counties, Ga. Headquarters is Waynes-boro, Ga. The superintendent is Randy Cassell. Approximate start date: Aug. 10.

Miller Pipeline Corp. has been awarded a contract by Teppco for maintenance work in Scott County, Mo. The superintendent is Greg Frazier. Approximate start date: Aug. 10.

Northern Clearing Inc. has been awarded a contract by Michels Corp. for right-of-way clearing of 28 miles of 36-in. pipeline in Pembina County, N.D., and 108 miles of 36-in. pipeline in Kittson, Mar-shall, Pennington, Red Lake, Polk and Clearwater counties, Minn. The superintendent is Jim Junker. Approximate start date: Aug. 10.

Northern Clearing Inc. has been awarded a con-tract by U.S. Pipeline Inc. for right-of-way clearing of 90 miles of 20-in. pipeline and 90 miles of 36-in. pipeline in Clearwater, Bemidji, Hubbard and Cass counties, Minn. The superintendent is Jim Junker. Approximate start date: Aug. 10.

BigInch Fabricators and Construction Inc. has been awarded a contract by Panhandle Eastern Pipeline to hydrostatic test 18 miles of a 26-in. pipeline and complete pipe replacements in Pike County, Ill. Headquarters is Pleasant Hill, Ill. The superintendent is Frank Ayers. Approximate start date: Aug. 12.

Wilco Pipeline Contractors LLC has been award-ed a contract by the U.S. Army Corps of Engineers to install 3.5 miles of a 30-in. steel mud water line in Cameron Parish, La. Headquarters is Sulphur, La. The superintendent is Mike Roe. Approximate start date: Aug. 13.

Contractors Rental Corp. has been awarded a contract by Spectra Energy to lift and lay 2,000 ft of 20-in. pipeline, relocate a 20-in. launcher and two meter stations in Nobel and Monroe counties, Ohio. Headquarters is Shadyside, Ohio. The super-intendent is Brian Smith. Approximate start date: Aug. 17.

InterCon Construction Inc. has been awarded a contract by Precision Pipeline LLC to install two crossings of 20-in. steel gas lines by HDD in Will and Grundy counties, Ill. The superintendent is Don Master. Approximate start date: Aug. 17.

Miller Pipeline Corp. has been awarded a con-tract by Vectren Corp. to install five miles of 16-in. pipeline in Knox County, Ind. The superintendent is Greg Frazier. Approximate start date: Aug. 17.

Northern Clearing Inc. has been awarded a con-tract by Precision Pipeline LLC for right-of-way clear-

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Poor economic conditions have led to worldwide decline in oil and natural gas consumption and will lead to an overall decline in use for 2009. However, the U.S. Energy Information Administration (EIA) projects that consump-tion and oil and gas prices should rise in 2010 as the global economy improves.

Crude oil prices continue to be very volatile. The West Texas Intermediate (WTI) crude oil spot price fell from $71.47 on June 29 to $59.62 on July 14 and then increased to $71.59 by Aug. 3. The EIA expects the price of WTI crude oil to stay roughly flat at an average of $70 per barrel in the fourth quarter of 2009, an increase of about $27 compared with the average for the first quarter of the year. The WTI spot price is projected to rise slowly as economic conditions improve, to an average of about $72 per barrel in 2010.

Global Crude Oil and Liquid FuelsThe oil market continues to be defined by the tension

between optimism over the perceived recovery of the global economy on the one hand and persistently weak global consumption of crude oil and other liquid fuels on the other. There are indications that oil consumption could be recovering outside of the Organization for Economic Cooperation and Development (OECD). However, this has been somewhat offset by an erosion of compliance with production cuts announced by the Organization of the Petroleum Exporting Countries (OPEC).

The rising level of global oil inventories, combined with weak current consumption, indicates overall weakness in the oil market. For example, U.S. commercial crude oil and petroleum product stocks have increased for five straight quarters for the first time since 1979-1980, and they are projected to increase again in the third quarter of this year. As a result, the future level of oil prices will largely depend upon the timing and pace of the global economic recovery and the resultant impact on global oil consumption that would tend to erode surplus stocks.

World oil consumption has dropped sharply since the middle of 2008 in response to the global economic downturn and higher prices. Preliminary data indicate that global oil consumption declined by 3.1 million barrels per day (bbl/d) in the first half of 2009 compared with year-earlier levels.

The current macroeconomic outlook assumes that the world economy begins to recover slightly at the end of this year, led by Asia. As a result, EIA expects world oil consump-tion to grow year-over-year in the fourth quarter of 2009, the first such growth in five quarters. Overall, global oil consumption is projected to decline by 1.7 million bbl/d in 2009, then rise by 940,000 bbl/d in 2010.

Total non-OPEC crude oil and other liquid fuels supply is expected to rise by 410,000 bbl/d in 2009 and by 160,000 bbl/d in 2010. Over the forecast period, higher output from Brazil, the United States and the former Soviet Union is expected to offset falling production in Mexico and the North Sea. There is some indication that the chronic delays that have plagued non-OPEC projects have begun to ease. However, many projects are still moving forward at a slower pace to either defer necessary investment decisions or take advantage of further reductions in procurement costs.

EIA projects WTI crude oil prices, which averaged $100 per barrel in 2008, to average $60 per barrel in 2009 before recovering to an average of about $72 per barrel in 2010. Energy price movements are highly uncertain as seen over the last month in the aforementioned swing in the WTI crude oil spot price.

U.S. Crude Oil and Liquid FuelsEIA projects total U.S. consumption of liquid fuels and

other petroleum products to decrease by 790,000 bbl/d (4.1 percent) in 2009. This includes projected declines of 320,000 bbl/d (8.2 percent) in distillate fuel consumption and 150,000 bbl/d (9.8 percent) in jet fuel consumption. Motor gasoline consumption is projected to decline slightly in 2009 as the positive impact of the significant price decline compared with last summer offsets some of the negative impact of the economic downturn.

The modest economic recovery projected for 2010 is expected to contribute to a 280,000-bbl/d (1.5 percent) increase in total liquid fuels consumption, led by increases of 110,000 bbl/d (3.2 percent) in distillate consumption, 50,000 bbl/d (0.6 percent) in motor gasoline consumption and 60,000 bbl/d (2.6 percent) in other oils consumption.

Total U.S. crude oil production averaged 4.95 million bbl/d in 2008, down from 5.06 million bbl/d in 2007. U.S. production is expected to increase to an average of 5.22 million bbl/d in 2009 and 5.25 million bbl/d in 2010. Oil production from the Thunder Horse, Tahiti, Shenzi and Atlantis Federal offshore fields is expected to account for about 14 percent of lower-48 crude oil production by the fourth quarter of 2010.

In early August, the National Oceanic and Atmospheric Administration (NOAA) lowered its outlook for an above-average hurricane season from a 25-percent chance in their May outlook to a 10-percent chance in their 2009 Atlantic Hurricane Season Outlook Update. This revision, combined with no reported shut-in production during June and July, reduces EIA’s original seasonal estimates of crude oil and natural gas production outages by about one-half. However, significant uncertainty always remains as any one storm can cause widespread disruptions and damage.

14 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

Market WatchFalling Demand Now, Increasing LaterGlobal Economic Conditions Have Led to Oil and Gas Market Decline

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For more information go to napipelines.com/info

level during the corresponding period last year. Total working natural gas stocks eclipsed 3,000 Bcf during the week ending July 24. This is the earliest day on record that inventories have exceeded 3,000 Bcf during the injection season (April through October), a mark previously set when stocks reached 3,005 during the week ending Aug. 31, 2007. The EIA now expects working natural gas stocks to reach 3,800 Bcf at the end of October, 235 Bcf above the previous record of 3,565 Bcf reported at the end of October 2007.

The Henry Hub spot price for natural gas averaged $3.50 per 1,000 cubic feet (Mcf) in July, $0.41 per Mcf below the average spot price in June. Prices remain low as the drop in drilling activity thus far has failed to bring about the produc-tion decline necessary to slow the natural gas inventory build. Resilient production, high storage levels, and the potential for increases in both LNG and pipeline natural gas imports suggest that prices may fall below current projections before space-heating demand picks up this winter and economic conditions improve.

The EIA expects the Henry Hub spot price to increase from an average $3.92 per Mcf in 2009 to $5.48 per Mcf in 2010 because of the current decline in drilling activity and projected growth in consumption next year. However, sus-tained cutbacks in drilling activity or stronger demand than expected could lead to even higher prices. However, improve-ments in drilling technology and procedures are expected to limit price increases over the forecast period.

For more Energy Information Administration oil and gas market forecasts, visit www.eia.doe.gov.

Source: Energy Information Administration

U.S. Natural Gas OutlookEIA projects total U.S. natural gas consumption will

decline by 2.6 percent in 2009 and increase by 0.5 percent in 2010. Despite some recent signs of economic stability, the severe contraction during the first half of the year con-tributed to an estimated 3.8 percent decline in daily aver-age natural gas consumption compared with consumption during the first half of 2008.

The decline in natural gas use during this period was driven principally by a drop in industrial activity, reflected in the 17 percent year-over-year decline in the natural-gas-weighted industrial production index during the first half of the year. Natural gas prices have declined to the point where they now compete against coal for a share of the baseload generation in the electric power sector. Consequently, natu-ral gas consumption in the electric power sector is expected to increase by 2 percent in 2009.

The assumption of improved economic conditions in 2010 is the primary factor leading to projected demand increases in the residential, commercial and industrial sectors next year. However, the expectation of higher natural gas prices and lower coal prices in 2010 likely will lead to a slight reduction in natural gas consumption in the electric power sector.

EIA expects total U.S. marketed natural gas production to stay flat in 2009 and decrease by 2.8 percent in 2010. The outlook for production is conditioned on the current low price environment that has brought about a significant pullback in drilling activities. According to Baker-Hughes, total working natural gas rigs have now declined by 58 percent since September 2008.

Data for March through May 2009 suggest that the decline in drilling has begun to reduce marketed production in the lower-48 non-Gulf of Mexico region. While the monthly av-erage rate of decline was about 0.3 billion cubic feet per day (Bcf/d) during those three months, production is expected to decrease at a faster pace through the remainder of 2009 with some curtailments from existing production expected.

Gulf of Mexico production is expected to increase by 3.3 percent in 2009 in part because recovery from damage sustained during last year’s hurricane season and the lower expected incidence of hurricane activity this year. Although drilling activity is expected to pick up early next year, the lagged affect of reduced drilling this year is expected to lead to lower production in all regions outside Alaska. Alaska natural gas production is expected to remain near current levels through the forecast.

EIA expects U.S. liquefied natural gas (LNG) imports to in-crease to about 500 Bcf in 2009, up from 352 Bcf in 2008, and rise to about 740 Bcf in 2010. While increasing over 2008 levels, U.S. LNG import growth this year has been constrained because of increased LNG demand in Europe and delays and maintenance to new and existing LNG liquefaction capacity.

With limited natural gas storage availability, recent data suggest that European inventory levels are now nearing capacity. As a result, LNG shipments may be redirected to U.S. ports in the coming months as prices in the European market become less attractive to LNG suppliers. A similar scenario may also occur in Canada, with natural gas pipe-line imports increasing in the months ahead as Canadian storage facilities are topped off. An increase in U.S. natural gas imports would likely be balanced by larger-than-expect-ed declines in domestic natural gas production.

On July 31, working natural gas in storage in the United States was 3,089 Bcf. Current inventories are now 496 Bcf above the five-year average (2004–2008) and 580 Bcf above the

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His voice is deep and melodious in conversation, calm-ing in its resonance. When he’s at work, though, it sounds like a hard-driving drum solo, rattling off large

figures in quick succession, stalling for a moment to let the audience catch its place, and then the voice rattles off more numbers before it says, “Are you done?… Last call… Sold.”

Butch Graham’s voice announces the sale of another piece of construction equipment.

As a senior auctioneer for Ritchie Bros. Auctioneers, his voice is his trademark. However, it is Graham’s decades of experience and expertise in the oil and gas market that led to his nickname as “the voice of the pipeline industry.”

Graham got into the oil and gas pipeline industry in the late 1970s and early 1980s, about the time when the Trans-Alaska Pipeline was wrapping up. He then joined Ritchie Bros. in 1987 — a job he cherishes — and worked with company founder Dave Ritchie, for whom Graham has nothing but respect and gratitude.

Ritchie Bros. conducts more than 340 auctions each year at its 39 auction sites in the United States, Canada, Mexico, Europe, the Middle East and Australia, and many off-site. The company was established in 1958 as a small, family-run furniture store in Kelowna, British Columbia. In 1963, the company began selling industrial equipment.

16 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

A Voice That SellsRitchie Bros. Auctioneer Butch Graham Uses His Expertise to Help Oil and Gas Pipeline Professionals Buy and Sell EquipmentBy Bradley Kramer

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napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 17

responsibility to put my best foot forward. I always felt I was representing them.”

It’s Graham’s personal touch that has endeared him to the oil and gas pipeline industry, says Dave Douglas, manager of the Canadian Pipeline Division for Ritchie Bros. (Graham calls him “little brother,” says Douglas, who has been with Ritchie Bros. for 14 years.)

“Butch is so well respected by all the contractors, and he knows them all,” Douglas says. “His outgoing personal-ity and his honesty and integrity are what people respect. When people buy a piece of equipment, they know it is what Butch says it is. You can take his trust to the bank.”

Graham has worked with every major pipeline contrac-tor in the United States and many of the international contractors as well. He is also heavily involved with the industry’s trade organizations, specifically the Distribution Contractors Association (DCA), the International Pipeline and Offshore Contractors Association (IPLOCA) and the Pipe Line Contractors Association (PLCA).

Graham’s market expertise is an asset to his customers, says Tom White, president of Price Gregory Construction and who has known Graham for 28 years. “He’s a big force in the pipeline industry,” he says. “We’ve done industry sales through him, but sometimes I use him as a sounding board for what equipment is worth and the best time to sell.”

Contractors value Graham’s knowledge of equipment values and how best to market and sell it at an auction, says Pat Michels, president of Michels Corp. “His talents as an auctioneer are second to none.

Graham is one of the most senior auctioneers at Ritchie Bros., says Peter Blake, CEO of the auction company. During his tenure at Ritchie Bros., Graham has worked at some of the company’s most memorable auctions, such as the auc-tions that followed the 1989 Exxon Valdez oil spill. Close to 10,000 people attended the first auction in Anchorage, and Graham remembers it all too well.

Graham gets extremely excited about converting the customers’ assets into cash. “It’s a tremendous rush,” he says. Sometimes Ritchie Bros. hosts auctions that last two, three and four days. That Exxon Valdez auction lasted five days and included all varieties of equipment, including cranes and boats. When the auction started at 6 a.m., it was still dark.

“Now, I’ve never been shy,” Graham says. “When the sun peaked over the mountains and I saw that enormous crowd, it was the only time I had a weakness in my voice.”

There was so much equipment to sell from the Exxon Valdez spill that another three-day auction was held in Tacoma, Wash.

Graham has been an auctioneer all his life. His father worked in marketing livestock auctions, and his uncle, cousin and brother worked as auctioneers. His brother still runs the family auction business. “I’ve always had good ora-tor skills,” he says. But auctioneering isn’t just about getting up to the podium and talking fast.

“Anyone can get up there and talk fast,” he says. “You have to be able to see the trends. I’m one of the remaining auctioneers around who went through the crash of 1982-1985 and saw the low times.”

Graham takes pride in his equipment knowledge and building relationships. He feels that it’s his duty to know the market and equipment so he can pass the information along to his customers.

“One thing I’ve learned about the business as a senior auctioneer and pipeline rep for Ritchie Bros. is you have to make the customer your friend because your friend will always be your customer,” Graham says. “My face and my voice are always out there for Ritchie Bros., and it’s my

Ritchie Bros. conducts more than 300 auctions all over the world, with buyers who show up in person or bid online via a live webcast.

Page 18: Pipeline Construction - 09 SEP-OCT 2009

“He is very personable and sincere. He knows what’s go-ing on in the energy industry and is able to translate that to when he’s selling at an auction,” says Michels, who has known Graham for 20 years and considers him as a good family friend.

Graham also passes on his vast industry knowledge to his colleagues at Ritchie Bros. “Our new auctioneers look to him for advice and training,” Blake says, “and he has helped to make our auctioneer crew the great team it is today.”

Douglas consults with Graham as he works his sales terri-tory in Canada. Douglas says he tries to learn as much as he can from the auctioneer.

“We work hand in hand to share information about who is interested in buying or selling or what a piece of equipment is worth,” Douglas says. “Butch knows so many people that he just has a broader base to work from. He has relationships that are four generations old in some cases. It’s more like me asking questions and him having the answers.”

Love the IndustryJust as Graham has been an auctioneer all his life, he also

has been around the oil and gas industry since his youth. He was raised and still lives in Oklahoma. As he says, “I grew up around the oil patch.” Graham’s granddad was friends with Erle Halliburton.

“You have to love what you do,” Graham says. Through-out his decades of auctioneering for the oil and gas pipe-line industry, Graham has helped raise millions of dollars through charity auctions for DCA, IPLOCA and PLCA. He has also been involved with the American Pipeline Contractors Association (formerly, the Rocky Mountain Contractors Protective Association).

Yes, Graham has used his auctioneering skills to help those associations, but he doesn’t expect credit. He isn’t there for his own laurels, but as a representative of Ritchie Bros. “Without Ritchie Bros., there would be no Butch Graham,” he says. Graham credits Dave Ritchie for instilling these professional ethics.

“For as long as I can remember, Butch has played a very significant role for Ritchie Bros. in the oil and gas industry,” Blake says. “And Butch is a personality everywhere he goes — not just at your conferences. He brings his uncompromis-ing level of integrity and family values from his roots in Marlow, Okla., to the world.”

Blake thinks that people appreciate Graham’s “down home nature.” That appreciation shows in how the indus-try has awarded Graham. He was elected to IPLOCA’s board of directors for a term in 2002, and he was made an Honor-ary Lifetime Member of DCA.

Despite what personal successes may come his way, Graham is always appreciative of those around him. He can’t do it alone.

“There’s a woman in my life who is just as much of an ambassador for Ritchie Bros. as I am,” Graham says. “My wife Bonnie knows all the wives and kids. She loves the industry and Ritchie Bros. just like I do.”

In October, Butch and Bonnie will celebrate 39 years of marriage. He says his wife helps him build strong relation-ships, forming a close knit community with the other wives in the industry.

“There’s no price for that,” Graham says. “It’s all about relationship building. There’s no competitive way to deal with that.”

Through it all, Graham strives to be a good representative of Ritchie Bros. and the oil and gas industry.

“I hope I’m doing it right,” he says. “You’ve got to love it. And I do.”

18 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

In preparation of each auction, Butch Graham and the rest of the Ritchie Bros. team work with customers to sell equipment. The machines are sometimes refurbished and repainted upon arriving at one of the company’s 39 auction sites.

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Good Times and BadIn a tough economy, the unreserved auction format is still

a popular option for both equipment buyers and sellers, Blake says. During the current recession, Ritchie Bros. has seen a record number of bidders participating at its auctions.

“A need for equipment still exists as global building and construction projects carry on,” Blake says. “Buyers are just more cautious of pricing right now given the current state of the economy. This is evident given the decline in new equipment sales over the past year and they know they can find good equipment they need at one of our auctions at prices they are more willing to pay.”

The other side of that equation is that equipment own-ers are realizing that in this downturn, idle equipment is not cost-effective, Blake says. The result is many equip-ment owners are choosing to sell their equipment instead of keeping it.

In any industry, there will always be good times and bad times, Graham says, but he is a strong believer that pipeline contractors will help turn the economy around. The world still needs to build and maintain infrastructure, and because of that, business will go on.

“The sky is not falling like people think it is,” he says.The natural gas market just came out of a boom year, but

has taken a dive. Oil is still very profitable at more than $70 per barrel. What’s hurting natural gas is the price of natural gas, Graham says. “That’s why we’re not seeing much move-ment on projects, because the price collapsed,” he adds.

Graham saw the last crash in the oil and gas industry, and he sees many similarities with the industry now, such as the trends in equipment sales. Drill rigs that used to fetch

$1 million are now selling at $400,000. “It’s trending down, but the bottom has not fallen out,” he says. Graham only hopes that the downturn doesn’t last as long as the one in the 1980s.

Auction Day “You have to appreciate what goes into the auction,”

Graham says. “The people at Ritchie Bros. research their territories for two to three months beforehand.”

Ritchie Bros. has more than 1,000 sales reps across the world. The field reps call on their customers to see if they are interested in selling a piece of equipment. The reps are in constant contact with their clients. Graham himself acts as a lead sales person during the lead-up to an auction.

Each auction has hundreds of consignors, Graham says. Ritchie Bros. inspects the equipment and signs a contract with the seller, and the equipment goes into one of the company’s equipment yards. Occasionally, Ritchie Bros. will do a sale off one of its sites, such as when an industry veteran retires and needs to sell a bunch of equipment at once. If needed, the Ritchie Bros. refurbishes and repaints the equipment.

Then the marketing department goes to work promot-ing the auction. Auctions attract buyers from all over the world. Bids can be placed in person or online through the company’s live webcast at www.rbauction.com.

“When the sale date comes,” Graham says with a charge in his voice, “it’s my turn.”

Bradley Kramer is associate editor of North American Pipelines. He can be contacted at [email protected].

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 19

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Page 20: Pipeline Construction - 09 SEP-OCT 2009

IPLOCA Convention Coins a PhraseButch Graham has emceed the International Pipeline and Offshore Contractors Association (IPLOCA) annual conference

since 2004 after he was elected to the board of directors in 2002, and he has helped the association raise funds during its benefit auctions. Graham’s auctioneering skills and involvement with IPLOCA and other trade associations led to Luc Henriod, IPLOCA’s senior advisor, to call him “the voice of the pipeline industry.”

IPLOCA got its start in 1966, when companies active in the international pipeline construction industry recognized that they shared many common interests and challenges that could most effectively be addressed by establishing an industry association. That same year the then-leaders of the industry met in Paris and established the International Pipeline Contractors Association.

Originally established as a division of the U.S. Pipeline Contrac-tors Association, the International Pipeline Contractors Association became fully independent in 1976 after a significant increase in membership.

In 1988, the association was extended to include those compa-nies working offshore in the oil and gas industry, and on May 5, 1989, the International Pipeline and Offshore Contractors Associa-tion was officially established.

The association’s headquarters were later moved to Brussels, and then in 1992 to Gent, Belgium. The Gent office was closed in June 2005, and the office was re-established in Geneva, Switzer-land, where it remains today.

The association hosts a convention every year to foster a forum where members, associate members and other guests, including delegates from more than 40 countries, have the opportunity to meet and discuss important topics within the oil and gas pipeline industry. The 43rd annual IPLOCA Convention is Sept. 14-18 in San Fran-cisco. Topics for the event include onshore and offshore pipelines, construction, manpower issues, training, new technologies, safety and the environment, with special consideration for this year’s most pressing theme — current market trends. The association’s new crop of leaders will also be elected at the convention on Sept. 18.

Through its membership and convention, IPLOCA furthers its mission to provide value to members for sharing ideas, engaging the industry and its stakeholders, facilitating business opportunities

and promoting the highest standards in the pipeline industry. To that end, the association’s objectives are as follows:

• To promote, foster and develop the science and practice of constructing onshore and offshore pipelines and associ-ated works.

• To make membership of the association a reasonable assurance of the skill, integrity, performance and good faith of its members.

• To maintain the standards of the contracting business for onshore and offshore pipelines and associated works at the highest professional level.

• To promote safety and to develop methods for the reduction and elimination of accidents and injury to contractors’ employees in the industry and all those engaged in or affected by operations and the work.

• To promote the protection of the environment and contribute to social, cultural and environmental development.

• To promote good and cooperative relationships amongst the membership of the association and between contractors, owners, operators, statutory and other organizations and the public generally.

• To encourage efficiency amongst the members, associate members and their employees.

• To seek correction of injurious, discriminatory or unfair business methods practiced by or against the industry contrac-tors as a whole.

• To maintain and develop good relations with sister associations as well as associations allied to our industry and to play a leading role in the World Federation of Pipeline Industry Associations.

• To follow the established Codes of Conduct set out by the industry and others with respect to working within a free and competitive market.

20 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

Butch Graham emcees the annual IPLOCA Convention and is a former member of the board of directors. At one of the conventions, he was announced as

“the voice of the pipeline industry.”

Page 21: Pipeline Construction - 09 SEP-OCT 2009

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Page 22: Pipeline Construction - 09 SEP-OCT 2009

22 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

A Georgia coal-burning power plant is in the process of converting to natural gas, requiring construction of approximately 19 miles of a new gas pipeline in Atlanta. In order to build

the pipeline around the west side of the city, the utility commissioned U.S. Pipeline to lay the pipe in trenched portions of the right-of-way (ROW) and prepare horizon-tal directional drilling (HDD) pipe pull sections for Michels Directional Crossings. Michels had to complete the HDD crossings in areas where trenching is either not feasible due to accessibility issues or not economically viable due to complex pipeline construction constraints.

In April 2009, Michels began construction of 19 planned HDD crossings of 30-in. pipe through these mandated trenchless construction areas along the 19-mile pipeline stretch, drilling through a varied mix of hard rock and soil ground conditions.

Michels operated up to five of its 13 large capacity drilling rigs at any given time on this project and estimates that over six miles of the project will be directional drilled with almost 50 percent of the HDD crossings completed through rock despite extensive HDD design and construc-tion length minimization efforts.

The longest crossings have been drilled to lengths of approximately 3,000 ft while some of the shorter cross-ings have been closer to 1,000 ft long. Interstate 285 will be crossed three times by Michels’ HDD operations and Interstate 20 has been successfully crossed at one location. Many other major highways and roadway crossings along the route are also being completed by HDD construction, as well as several major water bodies and wetlands including a difficult crossing of the Chattahoochie River that Michels recently completed near the end of July.

The rock encountered so far has been primarily granite-type, varying widely in strength, hardness and consistency depending on depth and degree of weathering. The rock is also typically encountered at varying depths along the HDD design alignment and Michels has worked closely with U.S. Pipeline, the owner’s designer and the owner of the utility to limit the lengths and depths of the crossing designs to minimize costs to the owner of drilling through longer sections of the harder rock formations at greater depths.

Prior to starting the project, the owner performed an extensive geotechnical study of the proposed HDD design alignments. The crossings were initially designed as short and shallow as possible based on this data, among other

Tackling Hard Rock with HDD

Michels Directional Crossings Installs Six Challenging Miles of 30-in. Pipe in Atlanta By Tim McGuire

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napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 23

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ROW constraints. However, given that the elevation of the top of the rock can vary significantly in a short distance in this area, some of the crossing design paths had to be re-oriented once HDD pilot hole operations were initiated when the rock elevations were not encountered as antici-pated with the original design.

In addition to this “adjust the design as you go” methodol-ogy being employed on many of the crossings, the adapta-tion of HDD technology in so many confined areas where its use may have previously been thought unimaginable has required a level of coordination and communication between the owner, designer and contractors that is unprecedented in the HDD industry on a project of this magnitude.

The ultimate objective of the HDD construction is to provide a trenchless installation of a relatively rigid (i.e., wall thickness greater than a half-inch thick), 30-in. steel pipe underground along a geometrically smooth trajectory from the entry to exit that allows it to bend through the bored out rock along the HDD alignment without adversely affecting the integrity of the pipe during installation and operation. In order to accomplish this, first the HDD pilot hole geometry must be carefully monitored and controlled as it is drilled along the desired design alignment.

Drilling and controlling the geometric shape of the HDD alignment is technically and physically demanding, espe-cially when drilling in and out of rock that is encountered at depth in varying locations and degrees of competency along each HDD alignment and when the crossing lengths are designed at the bare minimum, further reducing any room for construction error. Oftentimes several different

variations of bottom hole drilling assemblies are required just to steer the pilot hole along the designed alignment as these contrasting, “mixed-face” conditions are encoun-tered. Fortunately, Michels’ crews are well versed in drilling in hard rock conditions around the world with extensive experience in the Atlanta area, so the company knew what to expect and came prepared.

Michels also has implemented the use of HDD intersect technology on several of the crossings in order to success-fully complete the pilot holes within the tight constraints of the allowable design alignments. In attempting to shorten these crossings as much as possible and achieve the rigor-ous design tolerances, there are oftentimes limited options for lengthening the crossings if the rock is encountered unexpectedly or the formation prevents Michels from precisely controlling the pilot hole along the desired alignment regardless of the company’s extensive inventory of varied bottom hole assemblies.

This requires drilling the pilot hole from the opposite end of the crossing and intersecting the section of hole previously drilled from the entry side to ensure the exit hole location and desired design alignment are precisely maintained. Michels has completed more than 50 inter-sects on other projects, but intersecting pilot holes in solid granite can add significant time to a crossing’s duration, so this method is only implemented after all other options have been exhausted.

The originally planned reaming parameters also required modification by Michels on some of the crossings to fur-ther ensure the integrity of the pipe installation on several

Page 24: Pipeline Construction - 09 SEP-OCT 2009

of the more constrained design alignments. Once the pilot holes are completed, the HDD holes must be enlarged by completing multiple ream passes along the hole to open it to a diameter large enough to accommodate the 30-in. steel pipe installation, often requiring months of scheduled reaming operations on the longer and harder rock cross-ings. To maintain specified design elements of these HDD crossings, Michels has enlarged the final ream diameter of these types of crossings to varying degrees to facilitate successful installation.

Operations above ground have also required use of extraordinary construction measures on a daily basis. The pipeline ROW lies in an existing utility corridor, which runs parallel to I-285 on the west side of Atlanta, the same highway that loops around the entire city. Besides many other utilities crossed along this route, the pipeline parallels a 345-kilovolt overhead electric transmission line, which prevents what would otherwise be normal HDD and pipe-line construction equipment movement and operation. The obstruction requires a much greater degree of profes-sional planning and experienced execution to ensure the safety of the workers even for the simplest of operations.

This ROW also traverses densely populated urban, com-mercial and residential areas and is considered extremely narrow for a 30-in. spread by pipeline construction stan-dards. In addition to the geotechnical challenges and confin-ing work space limitations, Michels and U.S. Pipeline have had to contend with many obstructions along the pipeline route, including numerous wetlands, access and work hour restrictions, rapid changes in topography, various existing utility crossings (both known and unknown), buried de-bris, proximity of residences to the HDD work areas, heavy traffic, high rates of crime and discontinuities in the ROW alignment. Michels has constantly adapted its HDD opera-tions to meet the extreme design criteria, including greater than normal entry and exit angles as compared to typical HDD design standards to accommodate the owner’s desire to minimize the lengths of the HDD crossings within the allowable surface and subsurface constraints faced at every HDD location along the ROW.

The aboveground work space limitations also have hampered another key element to the success of any HDD crossing: maximizing the length of continuous pipe pull sections. Typical HDD pipe pull sections are installed in one continuous length — especially larger diameter crossings such as 30-in. — to avoid undue risk to the installation caused by stopping the pullback operations for long periods incurred during tie-in welds of multiple sections. Unfortunately, many of the crossings completed by Michels on the Atlanta project have not had the luxury of sufficient work space, which must typically be made available in order to accommodate string-ing the pull sections in continuous lengths. In fact most of the crossings have been completed on ROW that has limited U.S. Pipeline to pre-staging the pull sections in multiple strings and making as many as five tie-in welds during the HDD instal-lations to allow Michels to successfully complete what have on several occasions been multi-day pullback operations even for relatively short crossings.

In addition, many of the locations have had a combina-tion of severe HDD design exit angles and steep changes in the topography on the ROW adjacent to the exit locations. This condition has required implementation of unique pipe handling measures and deployment of additional special-ized equipment by U.S. Pipeline to ensure the pipe does not buckle or strain out of control above ground in the narrow

ROW as workers guide it into the exit hole for Michels to pull it underground and through the crossing.

The original construction schedule for the pipeline, includ-ing all of the HDD crossings, spanned over a year to allow sufficient time to complete all of the anticipated rock cross-ings and challenging pipeline work. Local permit issues also prevented the construction from proceeding continuously from one end to the other, requiring numerous gaps that have inhibited optimal HDD and pipeline spread procession. Representatives from Michels, U.S. Pipeline, the owner’s engineer and the owner met often and prepared for the work well in advance of the scheduled start to identify and eliminate known sources of potential scheduling conflicts.

The HDD crossings were mutually designed based on the best available pre-construction information to facilitate minimum lengths within confined work space and geomet-rical constraint limitations, oftentimes considered barely within the realm of feasible HDD construction methodol-ogy. All of the parties continue to coordinate design and construction efforts to overcome daily changes to the planned operations to maintain productive forward prog-ress on this extremely complex project.

Michels began preparing for the HDD work four months in advance to ensure sufficient resources would be avail-able to tackle the large quantity of rock drilling and ream-ing that would be required in a relatively short period of time compared to typical projects where one or two rock crossings might be completed in a similar time frame. The HDD crews had to be prepared to act quickly to meet the changing demands unique to each individual crossing, and have the necessary down-hole tooling at their disposal to efficiently overcome the varied conditions encountered in order to stay ahead of the demanding schedule.

Over half of the crossings have been completed as of press time with four rigs still grinding through the rock daily under Atlanta’s west side ensuring that the pipeline will be completed and ready for use ahead of schedule.

Tim McGuire is vice president of Michels Directional Crossings, a division of Michels Corp. based in Brownsville, Wis.

24 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

Workers faced many challenges during the pipe installation, including operating in a confined right-of-way, which made drilling and

pullback difficult.

Page 25: Pipeline Construction - 09 SEP-OCT 2009

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 25

Drilling Through WaterHDD Makes Natural Gas Pipeline Project Possible By Stephen Tait

For more information go to napipelines.com/info

On the water-to-water crossings, Mears’ 500,000-lb drill rig sat on a 350 by 38-ft barge with a four-point mooring system, a 250-ton capacity anchor winch and a 230-ton capacity crane. Next to that was a similarly large barge hold-ing more than 700,000 gallons of fresh water for the drill rig, a mud cleaning system, drill pipe and various other equipment. A smaller crane barge supported a 140,000-lb rig at the exit holes.

To stabilize the drill barge during pullback, Mears Group project superintendent Mike Vidomski says Weeks Marine deployed a three-anchor holdback system using a chain rated for 1 million lbs to anchor the barge, therefore coun-teracting the force of the Mears rig. The innovative use of a tension clamp on the drill string by Mears, together with the anchor system, stabilized the barge to perfection.

“When we were pulling pipe into the hole there was no movement on the barge,” says Carolina Palmer, Weeks Marine project manager. “It was like we were on land.”

Mears steering technician James Eisenhauer says, “We made land where there was no land.”

To improve steering accuracy for both the river and harbor crossings, the contractors also outfitted a mobile coil barge that floated on the surface above the path of the 9 7/8-in. drilling bit while Mears bored the pilot hole. The coil barge replaced Mears’ traditional method of placing wires on the

A 10-mile pipeline that will connect the north and south sides of Hampton Roads Harbor, Va. — made possible through onshore and marine horizontal

directional drilling (HDD) — will allow Virginia Natural Gas to expand capabilities to serve a growing customer base and will also open new doors for HDD projects, industry experts say.

The project’s onsite work began in May 2008 and is scheduled for completion in November 2009, with the final land-to-water shore approach completed and tie-ins of the 24-in. steel product pipe now under way. At the heart of the project were seven HDD crossings completed by Mears Group Inc. working closely with the prime contractor, Weeks Marine Inc.

Of those seven crossings, one was a record length 7,357-ft crossing beneath the Elizabeth River and three were rare water-to-water drills under Hampton Roads Harbor that required the contractors to adapt to marine conditions.

Perhaps the most important water-to-water crossing was the 3,003-ft bore spanning the 53 ft deep Newport News shipping channel, one of the world’s busiest commercial and military shipping lanes.

Virginia Natural Gas senior project manager Les Flora, P.E., says horizontal directional drilling under the water-ways was the only practical way to complete the marine crossings since governmental agencies would not grant permits for techniques such as open-cut dredging due to environmental and shipping concerns.

“When you look at all the environmental [and] ship-ping concerns, we probably could not have successfully permitted this project without being able to horizontally directional drill,” Flora says. “The only way we could get a permit, was to HDD. I’m sure that what the contractors have learned on this project will be of great interest to those in the industry.”

Flora says the project’s original design called for trenching across the majority of the harbor, but that plan was revised after entities such as the Army Corps of Engineers indicated that permitting would not be possible.

Instead, Virginia Natural Gas looked to HDD techniques to cross the marine sections of the project, areas that include environmentally sensitive areas like clam sanctuar-ies and oyster beds and shipping traffic that includes U.S. Navy ships that use the fueling station on Craney Island.

Flora says that by using HDD techniques, the amount of material needed to be trenched decreased by about two-thirds the original planned quantity. “It was a pretty signifi-cant amount,” he says.

The marine environment created unique hurdles for the contractors to overcome: salt water that corroded equip-ment, strong tides and currents, storms and sonar equip-ment from passing ships and submarines that momentarily fooled with steering readings.

To combat against the conditions, Weeks Marine cus-tomized its barges to support and secure the equipment Mears needed on the water. The Weeks team designed and installed a robust anchoring system and other equipment such as “goal posts” — steel pile structures straddling the pipe alignment in front of the barges that helped guide the pipe from the drill rig to the harbor floor.

Page 26: Pipeline Construction - 09 SEP-OCT 2009

seabed to create a triangulation that enabled the steering technician to track the precise location of the drill.

Even then the team encountered a hurdle. When bor-ing the channel crossing, the stringent regulations did not allow for the coil barge to be in the shipping lanes, forcing Eisenhauer and Vidomski to drill blindly. The pair say they relied on the information they had acquired, but mostly used their combined decades of experience in the field to drill the hole.

“You’ve got to rely on your gut library,” Eisenhauer says, referring to the experience built over a career. “We were able to hit accurately where we had to hit.”

Vidomski adds, “That is basically just trusting what information we had. The bore was right on.”

Dr. Samuel Ariaratnam, a professor at Arizona State University whose research focuses on HDD, says the water-to-water drills Mears completed on the project are pretty rare. “There are only a limited number of compa-nies that have the expertise to perform these types of projects,” he says. “They are certainly not your run-of-the-mill type projects.”

Ariaratnam, who is the co-author of the book Horizontal Directional Drilling Good Prac-tices Guidelines, says HDD continues to become more popular because the technology makes sense. “From an economic and definitely from an environmental perspec-tive, HDD is certainly the way to go on these types of applications,” he says. “You are pretty much eliminating any disturbance to the ecosystem.”

The professor says such projects will open the door for more use of HDD drilling practices. “These landmark type projects are really what help to push the utilization of HDD,” he says.

Beyond the intricacies of HDD, the project also com-pletes a practical purpose: It makes possible for Virginia Natural Gas, a subsidiary of AGL Resources, to reach more customers and increase its ability to provide consistent service to customers in the Norfolk/Newport News area.

Flora says the project helps the gas company achieve three primary goals:

• First, it increases reliability, since the pipeline will connect two previously separated sources of natu-ral gas. Right now, the north and south pipelines are served by different natural gas providers, but connect-ing the pipe will give a redundancy of supply to en-sure customers will still have power even if one service encounters trouble.

• It allows Virginia Natural Gas to handle a grow-ing customer base. “Capacity wise, we are tapped

out,” Flora says. The connection of the pipeline will increase the company’s capacity by 100,000 dekath-erms. A dekatherm is the equivalent of 1,000 cu ft of gas. Flora says a typical house in Virginia on a cold day uses about 65 cu ft of gas per hour. The extra gas “will enhance our ability to grow our system for the next decade,” Flora says.

• Lastly, the project will allow Virginia Natural Gas to take advantage of commodity prices and get the best price for its customers, Flora says. The cost of gas is 75

percent of a customer’s bill, he says, so the lower the price that the com-pany can get, the better price will be passed on the consumer.

Flora says there were only two or three companies with the ability to complete the HDD portion of the project. Palmer says, “Many people didn’t go for the bid because it was a big challenge.”

Mears, however, took on the challenge. The compa-ny finished the seven HDD crossings, the most recent set of bores crossed under Hamp-ton Roads and included three water-to-water crossings and two shore approaches. In all, Mears drilled 15,439 ft, span-ning the distance between Craney Island and Newport News, where the final shore

approach was at Anderson Park.On the first Hampton Roads bore, the 3,004-ft Craney

Island shore approach, the drill crew started drilling on Aug. 18, 2008. The product pipe was pulled through on Sept. 30, 2008.

The second bore started Oct. 25, 2008, and marked the first water-to-water crossing for this project. Product pipe for the 3,547-ft Anchorage Crossing was pulled through on Jan. 9, 2009.

Next was the Middleground Crossing, a bore of 2,942 ft and also a water-to-water crossing. Mears used a gyroscope mech-anism to navigate the bore. The gyroscope uses accurate sensors to establish measure-

ments relative to true north and is not affected by magnetic interference. The subterranean crossing started Jan. 19 and ended a month later.

The 3,003-ft crossing under the busy Newport News Shipping Channel started Feb. 25 and ended March 31. It was the third and final water-to-water crossing for Mears on this project.

Mears finished the Anderson Park shore approach, a land-to-barge drill set up next to a small baseball field in Newport News. The project started April 8 and finished April 29, spanning 2,943 ft. The bore completed the HDD crossings for the project.

Stephen Tait is a free-lance writer in Port Huron, Mich.

26 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

Mears Group and Weeks Marine combined efforts to connect two gas lines in Virginia. Of seven total HDD crossings, one was a record length 7,357-ft crossing beneath the Elizabeth River and three were rare water-

to-water drills under Hampton Roads Harbor.

Looking for More? Read an expanded version of “Drilling

Through Water” at North American Pipelines’ online home, www.napipelines.com.

Page 27: Pipeline Construction - 09 SEP-OCT 2009

For more information go to napipelines.com/info

Page 28: Pipeline Construction - 09 SEP-OCT 2009

Delivering Pipelines by AirLifting Pipe with Vacuum TechnologyBy Leanne Butkovic

Page 29: Pipeline Construction - 09 SEP-OCT 2009

SEPTEMBER/OCTOBER 2009 | North American Pipelines 29

A piece of pipe, through its stages of life, needs to be moved from boat to barge. From there, it needs to go from shipyard to stringing trucks and, eventually, into the ground. To get from point A to point B to point C to its final resting place,

it very obviously needs to be lifted. There are lifting techniques of all sorts, from chains, swings, straps, hooks and…

vacuums? It may appear as foreign to some, but vacuums offer one of the easiest, most efficient and, most importantly, safest on-site lifting techniques to date. Tulsa, Okla.-based vacuum lifting originator Vacuworx is just one of several companies that offer this technology to contractors.

Though vacuum lifting has been used for decades in glass plants, heavy manufac-turing and distribution facility jobs, Vacuworx owner Bill Solomon developed the first vacuum lifting technology for self-contained high capacity in-field applications 10 years ago when he realized that there had to be a better and safer way to lift pipe. Since then, Vacuworx’s growth has blossomed with an increasing popularity of vacuum lifting due to its ease, efficiency and low-risk factor.

Shawn Lowman, director of sales and marketing for Vacuworx, explains the vacuum lifting process of the Vaculift: “It only takes one person to operate it from the safety of the cab of the host machine. It runs on a closed frequency wireless remote. That’s about as easy as you could get, I would say.” Though ostensibly simple, the inner workings of the Vaculift technology are a bit more complex, yet intuitive.

It all starts with the vacuum itself. Connected to a diesel engine over a single cell, the vacuum pump constantly runs so that the machine is always using and storing vacuum suction that can lift any type of pipe. The large beam structure on the machine serves as a vacuum reservoir to maintain its strong hold of a constant 28.94 Hg (98 kpa) on the pipe, even if the lifter shuts down in the middle of the haul. The reserve vacuum and the vacuum valve that is naturally closed on all-time suck mode would keep the pipe exactly where it was.

“Should something fail, typically your problem is going to be getting it to let go of the pipe,” Lowman says. “Most incidents of dropped pipe that we’ve ever seen have always been operator error or poor maintenance.”

To reduce jobsite risk, the machine has a built-in safety feature. When the machine is starting, an alarm goes off notifying the operator and anyone nearby that it is in low vacuum and that it isn’t safe to lift. The alarm automatically turns off once the vacuum pressure is at an operable level.

The Vacuworx machine requires maintenance that is common to any other piece of equipment. The owner’s manual checklist should be gone over prior to any start of a shift. Fluids must be checked at regular intervals. A filter that serves as a sieve for dirty air entering the vacuum is located at the mouth of the vacuum and must also be checked and replaced regularly, depending on jobsite conditions. If the working circumstances are dusty, the operator should check on it nearly every shift. If the area is more damp, then the filter may not need to be checked or replaced for several weeks. The Vaculift will suffice with traditional filters meeting the warranty’s specifications, but the company offers an inexpensive high micron filter that they recommend customers use for the best possible lift.

So Easy, Your Kids Can Do ItSafety is arguably the most important factor in a job well done. Whenever a heavy load

is suspended, recommended precautions must always be followed. Vacuums offer one of the safest and least risky lifting technologies available.

You can mention the vacuum alarm, the closed vacuum valve and the tooling’s reservoir, but the cornerstone of safety in the Vaculift machine is its minimal need for a large crew.

“It’s a one-man show, and the operator is not in harm’s way,” Lowman says. One crew-member manning the vacuum sits in the cab of the excavator. Since there is nothing to attach or wrap around the pipe, there is no need for people to be standing anywhere near the pipe being hauled, which removes a majority of the risk in lifting a load. Even still, other crewmembers should not stand directly beneath the load.

Located on Vacuworx’s Web site is a video made by Lowman about how safe the vacuum lifting technology actually is. The stars of the video? His, the owner’s and the sales representative’s daughters. Reciting their well-rehearsed lines in turn, the cast of children works through the safety concerns of lifting with chains and discovers safer ways of ‘Vacunomics’ by way of a visit from a curiously short OSHA inspector (they oper-ate the machines themselves too). Tell me what parent in their right mind would pur-posely place their child near heavy machinery and large pieces of pipe unless they were absolutely certain that they would be safe? Now that is confidence in vacuum power.

Page 30: Pipeline Construction - 09 SEP-OCT 2009

With all of its safety features and other benefits, it may seem confounding why some people haven’t considered vacuum lifting.

“Our product is difficult for people to get their head around. Can vacuum be that powerful? In reality, it’s one of the strongest forces in nature,” Lowman says. “A lot of the old time pipeline guys will look at it and say, ‘Oh my gosh, I wouldn’t lift pipe like that. There’s nothing underneath it, there’s nothing holding it.’ There’s nothing underneath it — that’s the point.”

Despite some current stragglers, Lowman sees the switch to vacuum lifting inevitable over the next 10 years since vacuum lifting cuts job times and costs and insurance expenses. Especially in the energy sector, companies have reduced insurance fees by choosing vacuum lifting over other techniques. Contractors have reported back to Vacuworx about their reduction in insurance costs because their teams are out of the way of any potential falling pipes. Not only are external costs slashed, but productivity increas-es exponentially even with a smaller crew working the field.

“We increase the load cycle anywhere from seven to 12 times as fast as traditional methods and can do that with less people,” Lowman says. “That’s a huge savings.”

Vacuums in Energy Pipe lifting is imperative in the energy sector, as Vacu-

worx thrives in the oil and gas industry. “You have to have a way to get the energy source, whether that’s gas or crude oil, from point A to point B,” Lowman says. “To get it there, you have to have a pipeline. To efficiently build a pipeline, you need vacuum lifting.”

Aside from the oil and gas market, Vacuworx has reached out to municipal utilities, including water and sanitary sewers, and the plate steel business. Using vacuum lifting allows for all of the necessary pipes to be lifted with ease, from concrete, steel, HDPE, fiberglass, ductile iron, plastic, you name it, with any kind of coating, from tape, FBE, coal tar, concrete and so on. And because the vacuum’s rubber-type vacuum pad seal, which is the component that actually makes contact with the pipe, compensates for inconsistencies and unevenness in the pipe and must be replaced every couple hundred hours, all of the pipes’ coatings are kept pristine.

“Chains, swings, straps, hooks, they will scratch the coatings,” Lowman says. “Anywhere they scratch the coating on the pipe, they have to repair. So that’s a time saver in itself because our equipment does not hurt the integrity of the coating in any way.”

It’s a valid point worth mentioning since a scratched pipe coating can be costly now and in the future. Some compa-nies have even gone so far as to write into their contracts that only vacuum lifting will be used on their jobsites simply because of coating issues. Methods aside from vacuum lifting damage pipe coatings, which leave last-ing impressions on the pipe several years down the road. Not only are these scratches costly, but the damaged locations that go unrepaired or are repaired poorly are often fail points in the pipe long after they have been buried.

“The U.S. Department of Transportation was doing five-year dig up inspections and finding failures from where pipe was marred up from chains,” Lowman says. Those five-year inspections were what sparked current talks between Vacuworx and the Department of Transportation about future regulations regarding the use of vacuum lifting from inception to burial to avoid ruined pipe coating debacles in the future.

Growth FactorVacuum lifting technology seems perpetually growing

with no end in sight. But as a safe, efficient and cost-ef-fective method for lifting pipe, why wouldn’t it? Lowman doesn’t see the market going in any other way either.

“It’s still tough times in the economy, and a lot of companies are struggling. We can certainly say that we’ve been able to hold our own because we afford contractors a product that increases their productivity and makes their jobsite safer,” he says. “When it gets tough out there, contractors start looking for better and more efficient ways to do things. They find us.”

As far as the industry as a whole, he adds, 10 years or less from now, contractors won’t be able to move pipe without using vacuum lifting. Last year was an especially big year for vacuum lifting as more and more people were coming around to the idea of vacuum technology. Still, compe-tition exists when you have more than one bidder for a contracting job.

“Where our part becomes very integral in that is if they’re using vacuum lifting they can bid the job cheaper because they don’t have as many employees to do the job as [someone] who’s not using vacuum lifting,” Lowman says. The contractor may get a reduction in insurance costs because there are fewer employees in harm’s way.

While the vacuum itself isn’t necessarily inexpensive, the benefits it allows you to reap save money in the long run. The company offers, in its own words, the lowest cost of ownership and has contractors report back to them that the Vaculift pays for itself on its first use.

“I don’t know why there isn’t anyone still not using vacuum,” Lowman says. “It’s much faster, it’s much safer and it impacts your bottom line heavily.”

Leanne Butkovic is an editorial intern for North American Pipelines.

30 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

Safety may be the most important factor on a jobsite. Whenever a heavy load is suspended, danger is literally in the air. Vacuums offer

one of the safest and least risky lifting technologies available.

Page 31: Pipeline Construction - 09 SEP-OCT 2009

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Page 32: Pipeline Construction - 09 SEP-OCT 2009

Finding Approval Talking Oil and Gas Regulations with FERC’s Jeff Wright

By Bradley Kramer

Page 33: Pipeline Construction - 09 SEP-OCT 2009

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 33

For more information go to napipelines.com/info

rest of the application. The pre-filing process truncates the overall analysis by six to eight months.

During the environmental analysis, FERC looks at anything alive that a project will impact: plants, animals, socio-econom-ic structures and cultural boundaries. The commission has to look at whether the project disrupts such things as Native American burial mounds, waterways or wetlands and other sensitive terrain. In doing so, FERC consults with other federal agencies, such as the Bureau of Land Management (BLM) and the U.S. Forest Service. An operator needs approval from FERC and BLM if the project touches federal land.

Working with so many other agencies can add significant time to the approval of an application, but the Energy Policy Act of 2005 named FERC as the lead agency for natural gas projects, allowing the commission to set the schedule for other agencies to follow in order to finish permitting. Congress approved the legislation as a measure to improve infrastructure.

Miles of New PipelineThis year has been a slow year so far for approving natural

gas pipeline projects, Wright says. However, the downturn is not all because of the recession. Instead, the market is playing catch-up to the many miles of infrastructure built (or still being built) in the last few years.

“Sometimes after two or three big years, you see the industry take a step back,” Wright says. In 2008, the mileage of pipelines FERC approved was the third biggest this decade at 2,140 miles. 2007 was the biggest at 2,700 miles approved. This massive expansion was largely due to the developments in shale gas production.

T he Federal Energy Regulatory Commission (FERC) is the primary permitting agency for the oil and gas market in the United States. The commission is in

charge of approving the construction of natural gas pipe-lines and storage facilities, regulating the price of transport-ing oil and gas through transmission lines and enforcing the marketplace. Jeff Wright, director of energy projects for FERC, spoke with North American Pipelines about how this process works and how the trends of the oil and gas market affect the commission’s duties.

Among FERC’s responsibilities is the siting and approval of natural gas pipelines in the interest of commerce, import and export facilities and connec-tions between the United States and Canada or Mexico. Wright estimates that there are close to 215,000 miles of pipeline and 3.8 billion cubic feet (Bcf) of natural gas storage under FERC jurisdiction.

Oil pipeline construction approval falls under each state’s laws, but FERC sets the wholesale rates for oil and gas (and derivatives) transmission, including U.S.-Canada border tariffs, and enforces the market to make sure all entities are playing nice.

Three of the commission’s stated objectives are to promote strong infrastructure, support a competitive market and enforce the market.

“These are like the three legs to a stool,” Wright says. “We have to have a strong infrastructure — the physical thing that we regulate. We approve projects to allow that to be constructed.

“Competition is based on rates, which give the operator the incentive to build infrastructure, but we make sure that those rates are fair to the rate payer.

“Finally, the enforcement aspect is to ensure that every-one plays the game correctly, according to the rules we’ve established.”

FERC does not set the price of the end-user commodity — say, the price you pay at the gas pump when you’re filling up. That price is set by the marketplace.

Pipeline: ApprovedFERC sites natural gas pipelines under Section 7 of the

Natural Gas Act, which gives authority to the commission for pipeline and storage regulation. Imports and exports fall under Section 3 of the same act. FERC approves construc-tion for physical pipeline and storage facilities and works with the Department of Energy on permitting for new or expanding natural gas pipelines. FERC also approves the costs of transmission rates from the operator.

A simplified version of the approval process goes like this: The applicant — the pipeline owner — comes to FERC with an idea for a natural gas pipeline from point A to point B, and a storage facility at point Z. FERC regulates the engi-neering, environmental impact, accounting and transmis-sion rates, and then the commission makes a recommenda-tion based on its review. The five commissioners mull over that recommendation and then vote on whether to approve the project. This process can take up to 18 months.

The most labor intensive part of FERC’s application anal-ysis is the environmental review, which must comply with the National Environmental Policy Act (NEPA), Wright says. To help cut down on the application approval timeframe, FERC offers a pre-file option whereby the applicant can come in before filing an official application and propose a project so that the commission can get a head start on the environmental review while the project owner compiles the

Page 34: Pipeline Construction - 09 SEP-OCT 2009

So far in 2009, there have been 172 miles of pipeline approved, much of that was sited along natural gas storage facilities. No matter how you look at it, 2,140 miles down to 172 is a massive cutback. However, this same trend was evident in the years 2000-2003.

FERC approved 1,100 miles of pipeline in 2000, 2,700 miles in 2001 and 1,500 miles in 2002, but only 350 miles in 2003. Wright theorizes the same is happening after big years spanning 2006-2008.

“Just because things are not being approved does not mean work isn’t being done,” he says. “There have been 6,000 miles of pipeline built in the last few years. The industry is trying to get things organized.”

Looking ahead, there are many projects pending, as 2,600 miles of pipeline are in FERC’s pre-filing stages.

“We don’t build infrastructure for today,” Wright says. “Projects are planned three to five years out from when the capacity is needed.”

The location for the majority of the current projects under FERC’s approval is in the Southeast United States, primarily Texas, Alabama and Louisiana. The large shale deposits in this region — specifically, the Haynesville and Barnett shale — are what drive these projects.

It has become more economically feasible to produce natural gas from shale because of the commodity price and the improvements in technology that have helped lower production costs, Wright says.

In the Mid-Atlantic region, the last leg of the Rockies Express (REX) Pipeline is terminating in eastern Ohio (Lebanon, Ohio), where distribution lines are being built to transport natural gas to markets on the East Coast.

Wright expects continued interest in building pipelines that tap the Marcellus Shale in western New York and central Pennsylvania and West Virginia, which dwarfs all other sources of natural gas in the Southeast at an estimated 1,500 trillion cubic feet.

In Alaska, there are two projects in pre-filing: Denali (ConocoPhillips and BP) and the Alaska Pipeline Project (TransCanada and ExxonMobil).

In addition, Wright says some of the current construc-tion takes on different characteristics. “You might see less miles of pipeline built, but more capacity,” he explains, as support lines and storage facilities must be built.

In the Pipelines AheadAlternative and renewable sources of energy are major

buzz topics in the news. Will efforts to improve alternative and renewable energy infrastructure hurt the oil and gas industry? Not really, Wright says.

“There hasn’t been enough time for alternative or renew-able sources to impact the amount of energy that moves in electrical lines,” he says. “We still need natural gas because you can’t run everything on renewable energy. The sun doesn’t always shine and the wind doesn’t always blow.”

If anything, natural gas will be used more heavily for electri-cal generation because it burns cleaner and more efficiently than other sources. Wright says natural gas infrastructure will continue to grow to support alternative energy measures.

Just gauging from Wright’s overview of natural gas pipe-line projects that have gone through FERC’s approval since 2000, you can see how the commission has strengthened infrastructure in the United States.

Because natural gas projects have been so successful, Wright says Congress is looking at legislation to make approving electrical transmission lines more like FERC’s process for gas pipelines.

“I don’t think you’ll see any legislation to change how FERC does natural gas,” he says. “It’s a pretty lean and quick program.”

Bradley Kramer is associate editor of North American Pipelines. He can be contacted at [email protected].

34 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

So far in 2009, the Federal Energy Regulatory Commission (FERC) has approved only 172 miles of natural gas pipelines, which points to a common trend after consecutive years of growth as was seen from 2006-2008.

Page 35: Pipeline Construction - 09 SEP-OCT 2009

November 19–20, 2009Doubletree Hotel Houston Intercontinental Airport

Many factors determine the success of an HDD project, the majority of which do not involve the actual breaking of soil. Executive decisions and planning are critical during all phases of a given project – some unique, some universal. The HDD Executive Forum addresses many of these factors on a peer-to-peer basis, sharing experiences, guidelines and market condition assessments. This is a conference for company executives presented by company executives, aimed at the common goal of improving the bottom line.

The HDD Executive Forum topics include:

• Pricing – what factors you need to consider when putting in a bid

• HDD Good Practices Guidelines – updates and what you need to know

• Existing Utilities – your responsibilities as a driller; what you need to know to avoid them; the ramifications of a utility strike

• Equipment Purchasing – changes regarding tax laws/incentives; purchase vs. lease vs. rent

• Legal/Environmental Permitting

• Trends in Trenchless Technology – telco/fiber, sewer/water, oil/gas

• Workforce Issues – training staff, staff retention, drug testing, OSHA requirements

• High-tech HDD – the cutting edge technologies that are being used

• Rock Drilling – how rock bores are different from soil bores – what you need to know in putting together bids and planning for the job

• Economic Outlook – economist speaking about the market and the outlook for 2010

• Roundtable – a panel of industry experts discussing the issues that are impacting them, how they are addressing them and how they are adapting to market conditions

Review the session schedule and register online at www.trenchlessonline.com/HDD

or call 330.467.7588

Page 36: Pipeline Construction - 09 SEP-OCT 2009

Wouldn’t you rather prevent an accident than investigate it after the fact? That’s what Job Safety Analysis (JSA) is all about. Also known as Job Hazard Analysis (JHA) or Activity Hazard Analysis (AHA), JSA is a simple, inexpensive and effective management tool that can be used to identify, analyze and record: 1) the steps involved in performing a specific job; 2) the existing or poten-tial safety and health hazards associated with each step; and 3) the recommended action(s)/procedure(s) that will eliminate or reduce these hazards and the risk of a workplace injury or illness. The benefits of Job Safety Analysis are well known: identification and elimination or con-trol of hazards before the work begins; consistent job and safety training; improved employee safety performance; increased management awareness of safety hazards; improved labor and management cooperation; improved compliance with applicable regulations; and more accurate accident investigations.

Deconstructing Worksite HazardsThe Basics of Job Safety AnalysisBy George Kennedy

Page 37: Pipeline Construction - 09 SEP-OCT 2009

SEPTEMBER/OCTOBER 2009 | North American Pipelines 37napipelines.com

For more information go to napipelines.com/info

er involvement in company safety activities. Workers in the group are more inclined to promote and follow the established procedures if they are involved in creating them. A good time to create JSAs using this method is when work is slow and/or during inclement weather.

As the name suggests, direct observation method involves observing a work-er while he or she performs a specific task. It is best to select an experienced employee who is willing to be observed. The observer should list each step performed by the worker. Cameras and video cameras can be used to record the steps for a more in-depth review, but don’t let taking the photographs become distracting to the worker. (Try not to use the flash attachment.)

The observer should then note the potential hazards connected with each step and try to identify changes in the environment or work procedures that will eliminate potential accidents.

Which Jobs Should Be Analyzed?

Workers perform many different tasks as part of their job classifications — every-thing from setting up ladders and assem-bling trench shields to unloading trucks and entering confined spaces. Each of these tasks involves different hazards that could be evaluated. So where to be-gin? Generally, it makes the most sense to first select jobs that have a history of accidents, have the greatest potential for serious injury, are frequently performed, are performed by the greatest number of employees and are new to those who will be performing them. Over a period of time, all jobs can be evaluated. Some jobs are routine and may require a gen-eral evaluation. Others may require a more in-depth evaluation. When tools, equipment, methods, procedures or job-sites change, some JSAs may have to be revised or updated.

Here are just some of the hazards that should be considered when completing a JSA: impact with a falling or flying ob-ject; penetration by sharp objects; caught in or between a stationary or moving object; falls from an elevated work plat-form, ladders or stairs; excessive lifting, twisting, pushing, pulling, reaching or bending; repetitive motion; exposure to vibrating power tools, excessive noise, cold, heat, harmful levels of gases, va-pors, liquids, fumes or dusts; exposure to cave-ins; electrical hazards; light (optical) radiation (e.g., welding operations); and water (potential for drowning or fungal infections caused by wetness).

JSA MethodsThere are two basic JSA methods: group

discussion and direct observation. A third method can be established by combining the two basic methods.

The group discussion method requires the manager/foreman to meet with employees familiar with the job being analyzed. Each group member draws upon his or her experience and visual-izes the job steps and potential hazards. Sometimes photos or videos of a worker performing the job are used to help stimu-late the group members’ thought process-es. They review the job from start to finish by breaking it down into steps. The group evaluates each step to determine the haz-ards that could lead to an accident.

When the hazards are listed, the group focuses on the changes in the environ-ment or procedures that can control or eliminate the hazard. The advantages of the discussion method are the many points of view considered, increased worker knowledge and increased work-

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There are several advantages to this method. The observer does not have to know how the job is performed, because he or she is watching and recording the work steps as they are done. There is less interruption to the work because the observations are performed while the work is in progress. Workers and observers (often managers) also tend to expe-rience improved knowledge, communications and mutual understanding.

Performing the Job Safety AnalysisA JSA has three basic phases: 1) list the steps required to

complete the job; 2) identify the hazards associated with each step; and 3) develop solutions for controlling or eliminating the hazards.

Phase 1: List the job steps. Every job must be broken down into distinct steps in the order of occurrence. Document enough information to describe each step, but do not make the breakdown too detailed. Try to limit the number of job steps to 10 or fewer well-defined steps.

Each step will consist of a set of movements. For example, “Pick up box and place on hand truck” or “Push hand truck to storage area.” All steps should start with an action word — e.g., push, pull, lift, move, carry, insert, tighten, etc. Review the steps with experienced workers to ensure they are complete and descriptive.

Phase 2: Identify the hazards. Each step should be ex-amined to discover any existing or potential hazards. When listing hazards, don’t just list the obvious hazards; list ev-ery conceivable hazard that could reasonably cause an ac-cident. Be sure to include health hazards, even though the potential harmful effects may not be immediate.

Phase 3: Determine how to control or eliminate the hazard. Hazards must be reviewed and recommendations made to eliminate or control them. Hazards can often be minimized by: changing the sequence of steps; modifying or changing the tools, machines, equipment or materials; im-

plementing engineering controls; installing guards; chang-ing methods; providing personal protective equipment; etc. In brief, what will make the job safer to perform? Be specific. Say exactly what needs to be done to correct the hazard, such as “lift using your leg muscles.” Do not use general state-ments like “be careful.” Provide a recommendation for each hazard. Also, list recommended safe operating procedures and appropriate personal protective equipment.

Whatever JSA method is used the analysis should be properly documented (see www.maricopa.gov/safety/jsa_ library.asp for completed samples). Completed JSAs should be reviewed by managers, workers and the safety coor-dinators to ensure that nothing has been overlooked. Executive management or safety managers should approve any results that will become part of the safety program. Once approved, the JSA documents should be shared with all managers, foremen and supervisors to ensure they are aware of established company procedures for specific jobs. Effective toolbox talks can be created by selecting JSAs

appropriate to a given jobsite. Workers tend to take great interest in training that is directly related to what they are doing.

Time and time again, Job Safety Analysis has proven to be an effective means of preventing accidents by finding and eliminating or controlling hazards before the job is performed. JSAs can be used to train/retrain employees and foremen and to give pre-job instructions. It can help man-agers and supervisors develop and improve job methods and procedures, not just in the area of safety, but often in other areas like production and quality control. Its greatest value is in standardizing work methods and safe operating procedures.

For further information about how to complete a JSA, refer to OSHA’s Publication #3071 (www.osha.gov/Publications/osha3071.html).

George Kennedy is vice president of safety for the National Utility Contractors Association (NUCA).

38 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

Job Safety Analysis (JSA) procedures can help limit the hazards inherent in construction worksites, such as possible impact from a falling object like pipe.

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napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 39

For more information go to napipelines.com/equipment-showcase/index

Page 40: Pipeline Construction - 09 SEP-OCT 2009

40 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

Fecon FTX148 Track Carrier

Fecon’s FTX148 offers a large cab for big machine comfort in a compact unit to maximize an operator’s productivity. And, being the most fuel efficient in its class, the FTX148 track carrier raises profit per acre. The FTX148 is equipped with a powerful Caterpil-lar C4.4 Engine, Fecon’s Power Management System and the proven Bull Hog Mulcher. Get almost twice the performance of a typical skid steer and only slightly larger in size making it ideal for tight places and trans-porting. Both cross link suspended and rigid steel undercarriage options are available to meet the de-mands of your terrain and site conditions making the FTX148 perfect for pipeline and right-of-way clearing. For more information, visit www.fecon.com.

Gyro-Trac GT-25XPGyro-Trac’s low-ground-pressure, high-speed mulching machines will clear unwanted trees and underbrush in a

safer, more environmentally friendly way. You can complete the job faster, and unlike bulldozers that tear up soils, Gyro-Trac leaves soil structures intact, eliminating erosion and runoff pollution. Gyro-Trac’s heavy-duty GT-25XP is powered by a 260-hp Tier III turbo diesel engine, power-ful hydraulic pumps and the latest cutter head technology. Performance, productivity and lack of profitability will never be an issue with the GT-25XP. Weighing in at 23,500 lbs, the heavy-duty mulching machine outperforms similar-ly sized and bigger machines. The GT-25XP chips away at hardwoods and softwoods of almost any size, including difficult ironwood, hickory, Australian hardwoods, petri-fied oak and more. Gyro-Trac’s machines efficiently mulch trees and stumps right to the ground, leaving only a fine, nutrient-rich mulch behind. For more information, visit www.gyrotrac.net.

40 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

Product Showcase

Page 41: Pipeline Construction - 09 SEP-OCT 2009

IronWolf 700BThe IronWolf 700B in-

tegrates the mobility and functionality of a purpose- built crawler, and the versatility of the IronWolf Slasher and Crusher attach-ments. For site excavation, clearing and mulching standing trees, site clear-ing and preparation, stump removal, asphalt recycling and more, the IronWolf 700B stands up to the job in all types of working condi-tions. The 700B is powered with a 700-hp Caterpillar C-18 engine and rides on 36-in. wide, low ground pressure tracks, which help the machine maintain 6.8 psi of total ground pres-sure. No matter what chal-lenge you face, the power-ful 700B creates solutions, expands capabilities and opens the door to new op-portunities. For more infor-mation, visit www.ironwolf.com.

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 41

For more information go to napipelines.com/equipment-showcase/index

Page 42: Pipeline Construction - 09 SEP-OCT 2009

Rayco T275 Site Preparation Machine

The Rayco T275 is spe-cifically engineered to power both a forestry mower/mulcher and the Rayco Hydra-Stumper stump-cutter land clear-ing attachment. It com-bines high horsepower with heavy-duty hydro-static systems essential to producing multi-function capabilities at profession-al levels of performance. On land clearing projects, the T275 can greatly re-duce the costs of extract-ing and hauling stumps to dump sites. The T275 features a carbide-tipped fixed-tooth mower and Rayco’s Monster Tooth stump-cutter wheel. The comfortable cab features heat and air condition-ing, as well as positive pressure clean filtered air. For more information, visit www.raycomfg.com.

Supertrak Inc. Custom Built Mulching CarriersSupertrak Inc. has manufactured custom carriers for the right-of-way, land clearing, vegetation management, forestry,

brush-cutting/mulching, fire prevention and numerous other industries and applications as an OEM with Caterpillar for more than 23 years. Supertrak has added a new line of 140-hp Custom Built Mulching Carriers to its existing full range of mulching carriers. The SK140TR-C, SK140CTL-C, SK140STR-C and SK140RTL offer a variety of undercarriage arrange-

ments to suit any mulching applica-tion on any terrain. The SK140RTL Rubber Tire Mulcher (pictured) is the perfect right-of-way unit for mulch-ing in both maintenance and pre-clearing of vegetation for the pipeline industry. The unit is small in size and transportable, but packs extreme cut-ting power with 140 hp and 40 gpm at 5,500 psi hydraulic flow in a dedi-cated closed loop to the mulching im-plement. The SK140RTL is equipped standard with Lexan windshields, all auto-reversing fan systems, supe-rior noise abatement, superior debris control, increased fuel tank capacity and electronic monitoring systems for all machine functions. The unit is available with travel speeds reach-ing upwards of 20 mph. Loader arm lifting capability allows for ease in managing vegetation around pipe-line and fence line structures and obstacles. The SK140RTL is capable of using numerous attachments, adding versatility for all facets of land clear-ing. For more information, visit www.supertrak.com.

42 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

Page 43: Pipeline Construction - 09 SEP-OCT 2009

NUCA’s Trenchless Assessment Guide CDThis time-saving, interactive software is designed to help utility engineers and designers evaluate the trenchless construction methods for the installation, rehabilitation or replacement of buried utilities.Author: NUCACDPrice: $195.00*

*Shipping and handling not included. Selling price subject to change without notice.

Horizontal Directional Drilling Good Practices Guidelines – 2008 3rd EditionThe latest version includes a new chapter on design, and other sections have been updated to include new developments in tech-nologies. Chapters include:• Introduction and Background • HDD Applications and Processes • Equipment and Materials • Design • Bore Planning • Jobsite Safety • Troubleshooting and Mitigation Publisher: HDD Consortium279 pages/ softboundPrice: $170.00* $153.00 for a limited time only!

Handbook of Pipe Bursting PracticeThis book introduces the technique of utility pipe line renewal by means of pipe bursting and presents the standard works of relevance.Publisher: M. Rameil352 pages/ softboundPrice: $85.00*

In The Trenches: Quick Course to Construction InspectionThis program will cover the following topics: • Excavation and Confined Space Safety • Underground Pipeline Construction Inspection Publisher: APWAInteractive CD with HandoutsPrice: $115.00*

Page 44: Pipeline Construction - 09 SEP-OCT 2009

FAE USA PT-200Imagine having a prime

mover for forestry, construc-tion and agricultural applica-tions that allows you to work on any type of terrain in any weather. Imagine driving it in total comfort. Imagine at last a more dynamic and pro-ductive way of working. FAE USA introduces the PT-200, a smaller and lighter version of the PT-400, combining power and functionality for today’s right-of-way, site-prep and land maintenance contractors and organizations. Its 180-hp engine and track options al-low the PT-200 to traverse the most difficult terrain from steep slopes to swampy areas that demand excellent trac-tion and low ground pressure. Outfitting the PT-200 with an FAE mulching attachment al-lows the unit to grind, shred and mulch wooden material in diameters up to 12 in. — making it an excellent tool for removing unwanted undergrowth, invasive species of vegetation or even thinning and clear-cut applications. Standard features for the PT-200 include a winch, back-up camera, reversible fan and mulching attachment. The PT-200 is EPA Tier 3 compatible with low fuel consumption relative to similar units in its class. For more information, visit www.faeusa.com and www.prime-tech.com.

44 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

For more information go to napipelines.com/equipment-showcase/index

Free Subscription!Fax to 330.657.2855Please start/renew my free* subscription to North American Pipelines ■ Yes ■ No

Yes, I want the bi-weekly NAP E-newsletter delivering industry stories & news via email

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A Cathodic TechnologyB Cleaning PigsC Coatings/LiningsD Corrosion MonitoringE Environmental AwarenessF Flow Control SoftwareG GIS/GPS systemsH Inline InspectionI Leak detection/PreventionJ Offshore Pipe LayingK Pipe MaterialsL Pipeline CommunicationsM Pipeline Design EngineeringN Pipeline MachineryO Pipeline MaintenanceP Pipeline RehabilitationQ Pipeline SafetyR Pipeline SecurityS Project Financing & InsuringT ROW ManagementU SCADA/Automation SoftwareV Trenching MaterialsW Trenchless TechnologyX WeldingY Other

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Business Cards

*Shipping and handling not included. Selling price subject to change without notice

Order Online at www.benjaminmedia.com/book-store

or Call 330-467-7588

Horizontal Directional Drilling Good Practices Guidelines – 2008 3rd EditionThe latest version includes a new chapter on design, and other sections have been updated to include new developments in technologies. Chapters include:•Introduction and Background •HDD Applications and Processes •Equipment and Materials •Design •Bore Planning •Jobsite Safety •Troubleshooting and Mitigation Publisher: HDD Consortium279 pages/ softboundPrice: $170.00 $153.00* for a limited time only!

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46 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com

North American Pipelines Calendar

Advertisers Index

September

13 – 17GIS for Oil & Gas Conference Geospatial Information & Technology Association (GITA)Marriott Westchase HotelHoustonWeb: www.gita.org/oilgas

14 – 1843rd Annual IPLOCA ConventionInternational Pipeline and Offshore Contractors AssociationFairmont Hotel San FranciscoWeb: www.iploca.org

21 – 24American School of Gas Measurement Technology Marriott Westchase Hotel HoustonWeb: www.asgmt.com

October

5 – 7Gas Machinery Conference Gas Machinery Research Council (GMRC)Hilton HotelAtlanta Web: www.gmrc.org/gmc-2006.html

6 – 8ICUEEKentucky Exposition CenterLouisville, Ky. Web: www.icuee.com

19Tennessee Gas Supply ConferenceTennessee Gas AssociationChattanooga HotelChattanooga, Tenn.Web: www.tngas.org

19 – 22Evaluation and Rehabilitation of Pipelines Conference and Exhibition Pittsburgh Marriott City CenterPittsburgh Web: www.clarion.org/rehab/rehab09/main.php

November

9ASTM Symposium on Plastic Pipe and FittingsASTM International Hyatt RegencyAtlantaWeb: www.astm.org/SYMPOSIA

15 – 17AEM Annual ConferenceWestin Diplomat Resort & SpaHollywood, Fla.Web: www.aem.org

19 – 20HDD Executive ForumDoubletree HotelHoustonWeb: www.trenchlessonline.com/HDD

December

1 – 3Deep Gulf 2009Moody Gardens Hotel & ResortGalveston, TexasWeb: www.deepgulfconference.com

2010

January

11 – 13NUCA Expo ’10Walt Disney World Dolphin HotelOrlando, Fla. Web: www.nuca.com

19 – 21Underground Construction Technology (UCT) 2010International Conference & ExhibitionTampa Convention CenterTampa, Fla. Web: www.uctonline.com

February

15 – 1822nd International Pipeline Pigging & Integrity Management Conference(Plus Training Courses and Exhibition)Marriott Westchase HotelHouston Web: www.clarion.org/ppim/ppim10/main.php

17 – 21PLCA 62nd Annual ConventionScottsdale, Ariz. Web: www.plca.org

23 – 28DCA 49th Annual Convention Fiesta Americana Grand Los CabosLos Cabos, MexicoWeb: www.dca-online.org

Advertiser .......................................Website .....................................................Page #American Excelsior Company ........www.curlex.com .................................................41Barbco .............................................www.barbco.com ...............................................37Benjamin Media Resource Center .www.benjaminmedia.com/book-store ........43, 45Darby Equipment Company ...........www.darbyequip.com ........................................21Denis Camif .....................................www.deniscimaf.com .........................................25Educational Webinar Series ............www.benjaminmedia.com/webinars .................39Enduro Pipeline Services Inc. .........www.enduropls.com ..........................................33FAE ...................................................www.faeusa.com ................................................47Fecon, Inc ........................................www.fecon.com ..................................................13Gabe’s Construction Co. Inc. .........www.gabes.com ................................................15Geospatial Corporation...................www.geospatialcorporation.com ......................31HDD Exeuctive Forum ....................www.trenchlessonline.com/HDD ......................35

Advertiser .......................................Website .....................................................Page #Horizontal Technology Inc. ..............www.horizontaltech.com ......................................5John Deere ......................................www.JohnDeere.com/precision ........................48King Contracting Inc. ......................www.kinghdd.com .............................................17Leslie Equipment Company ...........www.lec1.com ....................................................39LJ Welding & Machine ....................www.Ljwelding.com ...........................................45Mersino ............................................www.mersino.com..............................................27Michels Corp. ..................................www.michels.us ..................................................23Neptune Research, Inc. ..................www.neptuneresearch.com ...............................19Rain For Rent ...................................www.results.rainforrent.com ..............................11REMU USA Inc. ...............................www.remu.fi ..........................................................7Rig Source, Inc ................................www.rigsourceinc.com ......................................45Vacuworx International ....................www.vacuworx.com .........................................2, 3

The Events Pipeline Conferences, Meetings & Trade Shows

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For more information go to napipelines.com/info

Page 48: Pipeline Construction - 09 SEP-OCT 2009

For more information go to napipelines.com/info