July 2005 ISSUE
DOING BUSINESS
AMEC System Gives Turtle Mountain Warnings
BY NORDAHL FLAKSTAD
Freelance Writer
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Mountaintop Rig |
In 1903 the Frank Slide rained 30 million cubic metres of rock and other debris onto an unsuspecting, sleeping town in southwestern Alberta. If there’s a next time, the people will be warned.
AMEC has installed a real-time monitoring and warning system at Turtle Mountain, site of the notorious slide that killed 70 people.
Large cracks remain around the mountain’s south peak, prompting speculation that they may widen and lead to another slide. The Alberta Government funded the $1.1-million system and AMEC conducted the project through Alberta Municipal Affairs, with technical direction from the Alberta Geological Survey.
Additional assistance came from the University of Calgary, the University of Alberta and the specialized consulting firms Danaus, Gennix, Matrix Solutions and RSRC.
“We put a lot of high-tech equipment on and into that mountain, as well as some time-tested gear," said AMEC's project manager Corey Froese, P.Eng., P.Geol. “Together, these instruments will measure any movement down to the subtlest, micron-sized shift."
The project involved both drilled-hole and various surface monitoring devices.
Edmonton’s LRT Makes Tracks Southward
Edmonton City Council has approved what is currently tagged as a $595-million southward extension of the Light Rail Transit system. The extension will connect the LRT from the Health Sciences station, scheduled for completion adjacent to the University of Alberta Hospital in January, south to the former Heritage Mall.
The mall area is scheduled to be redeveloped as Century Place, a residential complex for 5,000 people, and the extension is expected to reach there by 2009.
Scanimetrics Gains U.S. Patent Rights
Edmonton-based Scanimetrics Inc. has obtained U.S. patent rights for its system for testing semiconductor integrated circuits. The technology developed by the University of Alberta spin-off company allows the testing without physical contact with the chip.
Scanimetrics CEO Steven Slupksy, P.Eng., called the patent “a significant milestone for our company.”
Enterra Energy Obtains High Point Properties
High Point Resources Inc. has agreed that Enterra Energy Trust can acquire all its issued and outstanding common shares. The transaction, valued at about $300 million, lets Enterra obtain
• long-life natural gas assets, having a reserve life of more than eight years on proven and 10 years on proven plus probable properties
• 3,800 barrels of oil equivalent per day, bringing Enterra’s overall production to over 10,000 b.o.e./d.
• More than 135,000 net acres of land, with more than 100 identified drilling locations.
“This acquisition is consistent with and extends Enterra’s business plan, providing both existing production and substantial development opportunities,” said Enterra Chairman Reg Greenslade, P.Eng.
EUB Reports Improving Compliance
The Alberta Energy and Utilities Board’s annual Field Surveillance Provincial Summary points to continuing improvement in regulatory compliance by Alberta’s oil industry. The 2004 report notes that compliance with major EUB regulations reached 98 per cent in 2004, up from 97 per cent in 2003.
Other key statistics include
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The EUB conducted 15,379 inspections of Alberta energy facilities.
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The pipeline failure rate in Alberta has dropped by 27 per cent since 2000. The number of pipeline failures per 1,000 km of pipeline was 2.4 in 2004, compared with 3.3 in 2000.
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Annual sulphur emissions from Alberta gas plants are down by 26 per cent since 2000.
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The EUB suspended 118 energy facilities and operations in 2004.
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The public registered 850 complaints to the EUB last year about oil and gas facilities. That’s a four per cent rise from 2003, but an eight per cent decrease since 2000.
SNC-Lavalin Buys Morrow Environmental
Morrow Environmental Consultants Inc. — employing more than 200 people in a multidisciplinary team that includes engineers, geoscientists and technologists — has joined SNC-Lavalin Inc.
Morrow President Grant Byers, P.Eng., said: “By joining SNC-Lavalin, we can now provide consulting services across Canada to our national clients, and offer new skills to our clients in the western marketplace."
Morrow has offices in B.C., Alberta and Manitoba.
Chinese Plant Feet Further Into Oil Sands
The Chinese commitment to Alberta’s oil sands is growing. SinoCanada Petroleum Corp., a subsidiary of China’s Sinopec Group, is paying about $105 million for 40 per cent of the proposed Northern Lights oil sands development, 100 km northeast of Fort McMurray.
The Northern Lights Partnership, in which Synenco retains a 60-per-cent interest,
plans a $4.5-billion integrated mining, bitumen extraction and upgrader operation.
Shear Acquires Hunter Exploration
Shear Minerals Ltd. will acquire all of Hunter Exploration Group's non-diamond mineral interests in six projects covering more than 15 million acres in Nunavut and British Columbia. The deal includes non-diamond rights to the Churchill diamond project near Rankin Inlet, Nunavut.
These projects plus Shear's gold properties will be transferred into a new wholly owned Shear subsidiary, Newco. Shear will then distribute one Newco share to each Shear share held.
Newco will have the largest land package in North America focused on gold, base metals and uranium exploration, says a Shear news release.
Weatherford Buys Precision Divisions
Weatherford International Ltd. will purchase Precision Drilling Corp.’sEnergy Services Division and International Contract Drilling Division for $2.9 billion.
Calgary-based Precision is a major provider of contract drilling services to the oil and gas industry in Canada and internationally.
The contract drilling division is an international land rig contractor and the energy division provides a range of services, including cased hole and open hole wireline, and drilling and evaluation.
Together, the Precision divisions have 5,300 employees in 25 countries, generating $1.1 billion in revenues last year. Houston-based Weatherford is the fifth largest oilfield service firm in the U.S., with 18,000 employees and activities in 100 countries.
Landowner Deal Opens Way For Heartland Upgrader
Thanks to a deal reached with nearby landowners, the Heartland Upgrader is a step closer to reality. BA Energy Inc. is proposing the $1.8-billion, 226,000-bb/d plant in Fort Saskatchewan.
Opposition by adjacent landowners had threatened plans for the independent processing centre, which is intended to handle bitumen from a number of suppliers. Regulatory review will continue, but the agreement — which provides landowners with guarantees on the sale of their land — should let work proceed to completion of the first stage in late 2006.
The plant is expected to be fully completed in 2011.
Ainsworth Invests To Expand Grande Prairie Mill
Ainsworth Lumber Co. will spend $200 million expanding its oriented strand board mill near Grande Prairie, doubling capacity to 1.3 billion square feet a year. Included in the project is a new hardwood sawmill for Valleyview.
Scheduled for early 2007 completion, the projects will result in 300 direct jobs in the two communities.
EUB Approves Transmission Development In Southwest Alberta
The Alberta Energy and Utilities Board has approved development of a 240 kV transmission system from the Pincher Creek area to the Lethbridge area.
The EUB, which conducted hearings for the application a year ago, says the upgrades by the Alberta Electric System Operator will result in an economic, efficient, safe and reliable transmission system. At the same time, the upgrades will provide non-discriminatory system access and help build a competitive market, says the EUB.
EPCOR Makes Power Acquisitions
EPCOR Utilities Inc. will pay $529 million for TransCanada’s 31 per cent interest in TransCanada Power LP.
Established by TransCanada in 1997, the widely held trust owns 11 power generation plants in Ontario, B.C., New York and Colorado. The natural gas, small-scale hydro and bio-mass plants have a total capacity of 744 MW.
TransCanada Power LP, to be renamed EPCOR Power LP, is a limited partnership organized in Ontario.
Purchase Makes Enbridge Sole Spearhead Owner
Enbridge Inc. has paid BP Pipelines North America Inc. $12.4 million US for the outstanding shares in Spearhead Pipeline. In 2003 Enbridge acquired (from BP Pipelines) a 90-per-cent interest in what was then the Cushing-to-Chicago Pipeline System.
Enbridge will reverse the 1,050-km Spearhead’s flow to transport Canadian crude oil south from the company's mainline system at Chicago to the storage and refining hub at Cushing, Okla. Reversing the pipeline and putting it back in service will provide access to the mid-continental and southern U.S. for Canadian crude.
With an initial capacity of 125,000 bb/d, the line is expected to begin operating in early 2006.
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