october 2015

For Environmental & Support Service Professionals

SAFETY FIRST:Getting required sleep is important for contractors

PAGE 44

TECH PERSPECTIVE:Evaporators provide easy way to clean wastewater

PAGE 40

www.GOMCmag.com | OCTOBER 2015

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7 ABORIGINAL NATIONS COME TOGETHER TO FORM SEVEN LAKES OILFIELD SERVICES, FINDING A BALANCE BETWEEN ENVIRONMENTAL STEWARDSHIP AND BUSINESS OPPORTUNITIES PAGE 12

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4 GOMC www.gomcmag.com - OCTOBER 2015

contentsfeatures12 CONTRACTOR PROFILE: PROTECTING THE HOMELAND 7 aboriginal nations come together to form Seven Lakes Oilfield Services, finding a balance between environmental stewardship and business opportunities. - Ken Wysocky 26 WWETT PRODUCT SPOTLIGHT: GRINDING TO STOP DAMAGE Vogelsangs inline grinder saves wear and tear, maintenance on headworks. - Craig Mandli

40 TECH PERSPECTIVE: SEPARATING THE WATER Evaporators provide cost-efficient way for companies to remove wastewater. - MaryBeth Matzek

48 PRODUCT FOCUS: SUPPORT TRUCKS AND TRAILERS - Craig Mandli

56 CASE STUDIES: SUPPORT TRUCKS AND TRAILERS - Craig Mandli

COMING IN NOVEMBER 2015ISSUE FOCUS:

Cleaning, Jetting and Maintenance, Waterblasting

n Contractor Profile: Primco Dene (Cold Lake, Alberta)

n Money Machines: Rush Overland hot-oil truck

departments8 EDITORS NOTEBOOK: CONNECTING WITH YOUR COMMUNITY Companies need to find ways to share their news with the customers they serve and the communities where they operate. - Cory Dellenbach 10 @GOMCMAG.COM Clips and quotes from the best of our exclusive online content.

22 BUILDING THE BUSINESS: WELCOME DIVERSITY AND BUILD CUSTOMER BASE When you learn to understand and adapt to cultural differences, you can effectively tap into the fast-growing minority groups to build your service business. - Michael Soon Lee

28 BAKKEN EXTRA: FACT-FINDING TOUR Congress members get firsthand look at Bakken crude transportation along rail and pipelines. - Cory Dellenbach

30 EAGLE FORD EXTRA: STEERING THE WAY South Texas organization strives to connect industry with stakeholders through education, communication and advocacy. - Greg Bates

32 EYE ON THE INDUSTRY: RIPPLE EFFECT Sand mines in Wisconsin and other parts of the country are feeling pinch of reduced production as oil and gas prices have declined. - Cory Dellenbach

36 BETTER MOUSETRAPS: CONTROLLING EXPENDITURES THROUGH INCREASED VISIBILITY Oilfield services company improves profitability and increases operational efficiency with a satellite-based asset tracking system. - Henry Popplewell

44 SAFETY FIRST: SLEEPY WORKERS ARE DANGEROUS WORKERS Several options of getting the sleep you need, including napping and getting away from shift work. - Doug Day

46 MONEY MACHINES: NO COMPLICATIONS Versatile, easy-to-use Terramac crawler carriers make work simpler for crews at West Virginia pipeline company. - Ken Wysocky

58 INDUSTRY NEWS

60 PRODUCT NEWS Product Spotlight: Steel-clad, clear-span buildings combine portability and flexibility. - Ed Wodalski

66 CALENDAR

OCTOBER 2015

on the coverJohn Darr, president and chief executive officer of Seven Lakes Oilfield Services in Cold Lake, Alberta, Canada, stands near one of his companys many trucks. Seven Lakes is owned by seven aboriginal tribes in Canada and serves the region around Alberta. (Photography by Nick Sperounes)

12

46

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Get Social with GOMCFor Environmental & Support Service ProfessionalsSAFETY FIRST:

Getting required sleep is important for contractorsPAGE 44


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OCTOBER 2015 - www.gomcmag.com GOMC 5

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contentsfeatures12 CONTRACTOR PROFILE: PROTECTING THE HOMELAND 7 aboriginal nations come together to form Seven Lakes Oilfield Services, finding a balance between environmental stewardship and business opportunities. - Ken Wysocky 26 WWETT PRODUCT SPOTLIGHT: GRINDING TO STOP DAMAGE Vogelsangs inline grinder saves wear and tear, maintenance on headworks. - Craig Mandli

40 TECH PERSPECTIVE: SEPARATING THE WATER Evaporators provide cost-efficient way for companies to remove wastewater. - MaryBeth Matzek

48 PRODUCT FOCUS: SUPPORT TRUCKS AND TRAILERS - Craig Mandli

56 CASE STUDIES: SUPPORT TRUCKS AND TRAILERS - Craig Mandli

COMING IN NOVEMBER 2015ISSUE FOCUS:

Cleaning, Jetting and Maintenance, Waterblasting

n Contractor Profile: Primco Dene (Cold Lake, Alberta)

n Money Machines: Rush Overland hot-oil truck

departments8 EDITORS NOTEBOOK: CONNECTING WITH YOUR COMMUNITY Companies need to find ways to share their news with the customers they serve and the communities where they operate. - Cory Dellenbach 10 @GOMCMAG.COM Clips and quotes from the best of our exclusive online content.

22 BUILDING THE BUSINESS: WELCOME DIVERSITY AND BUILD CUSTOMER BASE When you learn to understand and adapt to cultural differences, you can effectively tap into the fast-growing minority groups to build your service business. - Michael Soon Lee

28 BAKKEN EXTRA: FACT-FINDING TOUR Congress members get firsthand look at Bakken crude transportation along rail and pipelines. - Cory Dellenbach

30 EAGLE FORD EXTRA: STEERING THE WAY South Texas organization strives to connect industry with stakeholders through education, communication and advocacy. - Greg Bates

32 EYE ON THE INDUSTRY: RIPPLE EFFECT Sand mines in Wisconsin and other parts of the country are feeling pinch of reduced production as oil and gas prices have declined. - Cory Dellenbach

36 BETTER MOUSETRAPS: CONTROLLING EXPENDITURES THROUGH INCREASED VISIBILITY Oilfield services company improves profitability and increases operational efficiency with a satellite-based asset tracking system. - Henry Popplewell

44 SAFETY FIRST: SLEEPY WORKERS ARE DANGEROUS WORKERS Several options of getting the sleep you need, including napping and getting away from shift work. - Doug Day

46 MONEY MACHINES: NO COMPLICATIONS Versatile, easy-to-use Terramac crawler carriers make work simpler for crews at West Virginia pipeline company. - Ken Wysocky

58 INDUSTRY NEWS

60 PRODUCT NEWS Product Spotlight: Steel-clad, clear-span buildings combine portability and flexibility. - Ed Wodalski

66 CALENDAR

OCTOBER 2015

on the coverJohn Darr, president and chief executive officer of Seven Lakes Oilfield Services in Cold Lake, Alberta, Canada, stands near one of his companys many trucks. Seven Lakes is owned by seven aboriginal tribes in Canada and serves the region around Alberta. (Photography by Nick Sperounes)

12

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Get Social with GOMCFor Environmental & Support Service ProfessionalsSAFETY FIRST:

Getting required sleep is important for contractorsPAGE 44


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Advertiser Index OCTOBER 2015

Alfa Laval Tank Equipment Inc. ...................................27......

ALL Erection & Crane Rental Corp. ..........................41......

Amthor International............................................................19......

Atoka Precision Machine Shop, LLC ........................63......

Benlee, Inc. ....................................................................................27......

ClearSpan Fabric Structures ............................................59......

Comforts of Home Services, Inc. ...............................47......

COXREELS .......................................................................................31......

Curry Supply Company ......................................................33......

Detroit ................................................................................................11......

Ditch Witch ....................................................................................17......

Dragon Products, Ltd. ............................................................9......

Eaton Vehicle Group .............................................................23......

Eldred Environmental & Export Co. LTD ...............20......

Fairmont Supply ..........................................................................6......

Felling Trailers, Inc. ..................................................................20......

Found It Now ..............................................................................63......

ManufacturingEst. 1957

FRUITLAND

Fruitland Manufacturing ...................................................55......

GapVax, Inc. .....................................................................................3......

Great Lakes Equipment Sales, Inc. ............................29......

Hi-Vac Corporation ....................................................................7......

Insulation Snakes .....................................................................63......

Master Pumps & Power ...................................................................58......

Northeast Industrial Mfg....................................................43......

NovaFlex Hose ...........................................................................25......

Perkins Pacific ................................................................................2......

Petrofield Industries ...............................................................39......

PolyJohn Enterprises, Inc. ................................................66......

Premier ..............................................................................................43......

Pressure Lift Corporation ...................................................45......

Rhino Linings Corporation ................................................5......

Room to Go ..................................................................................33......

Screenco Systems LLC .........................................................63......

Snap-on Industrial Brands ................................................24......

Southwest Products ..............................................................57......

StoneAge, Inc. ............................................................................39......

Ultra Shore .....................................................................................23......

United Rentals - Trench Safety ....................................68......

Vac-Con, Inc. ................................................................................21......

Vactor Manufacturing ..........................................................37......

Vacuum Sales, Inc. ...................................................................59......

Vanair Manufacturing, Inc. ..............................................15......

Vertiflo Pump Co., Inc. .........................................................63......

Water Cannon, Inc. ................................................................63......

WD HOT BLOCKS LLCWD Hot Blocks LLC ................................................................24......

WJTA - IMCA .................................................................................67......


Published monthly by:

1720 Maple Lake Dam Rd., PO Box 220

Three Lakes, WI 54562

www.GOMCMag.com

In U.S. or Canada call toll-free 800-257-7222

Elsewhere call 715-546-3346

Email: [email protected]: www.gomcmag.com

Fax: 715-546-3786

Office hours Mon- Fri.,7:30 a.m.-5 p.m. CST

Copyright 2015 COLE Publishing Inc.No part may be reproduced without

permission of the publisher.

SUBSCRIPTION INFORMATION: A one year (12 issue) subscription to GOMC in the United States or Canada is free to qualified subscribers. A qualified subscriber is any company or individual who maintains, services or supports land-based gas, oil or mining operations in North America. Non-qualified subscriptions are available at a cost of $60 per year in the United States and $120 per year outside of the United States. To qualify visit www.gomcmag.com/qualify or send company name, mailing address, phone number and check or money order (U.S. funds payable to COLE Publishing Inc.) to the address above. MasterCard, VISA and Discover are also accepted. Supply credit card information with your subscription order.

Our subscriber list is occasionally made available to carefully selected companies whose products or services may be of interest to you. Your privacy is important to us. If you prefer not to be a part

of these lists, please contact Nicole LaBeau at [email protected].

DISPLAY ADVERTISING: Contact Tim at [email protected] or 800-994-7990. Publisher reserves the right to reject advertising which in its opinion is misleading, unfair or incompatible with the character of the publication.

REPRINTS AND BACK ISSUES: Visit www.gomcmag.com for options and pricing. To order back issues, call Nicole at 800-257-7222 (715-546-3346) or email [email protected]. To order reprints, call Jeff Lane at 800-257-

7222, (715-546-3346) or email [email protected].

CIRCULATION: Circulation averages 18,167 copies per month.

Tim Krueger

FREE Information from Advertisers (check the Free Info boxes above)PRINT NAME: ___________________________________ TITLE: _________________________________________

COMPANY: _____________________________________________________________________________________

MAILING ADDRESS: _____________________________________________________________________________

CITY: ___________________________________________ STATE: ___________________ZIP: __________________

PHONE: ________________________________________ CELL PHONE: __________________________________

FAX: ___________________________________________ EMAIL: _________________________________________

Scan and email to: [email protected] / Fax to: 715-546-3786Mail to: COLE Publishing Inc., P.O. Box 220, Three Lakes WI 54562

GO

TO

GOMCmag.com

FOR MORE

STORIES AND

ONLINE EXCLUSIVES

FREE INFO

FREE INFO

OCTOBER 2015 - www.gomcmag.com GOMC 7FREE INFO SEE ADVERTISER INDEX

Advertiser Index OCTOBER 2015

Alfa Laval Tank Equipment Inc. ...................................27......

ALL Erection & Crane Rental Corp. ..........................41......

Amthor International............................................................19......

Atoka Precision Machine Shop, LLC ........................63......

Benlee, Inc. ....................................................................................27......

ClearSpan Fabric Structures ............................................59......

Comforts of Home Services, Inc. ...............................47......

COXREELS .......................................................................................31......

Curry Supply Company ......................................................33......

Detroit ................................................................................................11......

Ditch Witch ....................................................................................17......

Dragon Products, Ltd. ............................................................9......

Eaton Vehicle Group .............................................................23......

Eldred Environmental & Export Co. LTD ...............20......

Fairmont Supply ..........................................................................6......

Felling Trailers, Inc. ..................................................................20......

Found It Now ..............................................................................63......

ManufacturingEst. 1957

FRUITLAND

Fruitland Manufacturing ...................................................55......

GapVax, Inc. .....................................................................................3......

Great Lakes Equipment Sales, Inc. ............................29......

Hi-Vac Corporation ....................................................................7......

Insulation Snakes .....................................................................63......

Master Pumps & Power ...................................................................58......

Northeast Industrial Mfg....................................................43......

NovaFlex Hose ...........................................................................25......

Perkins Pacific ................................................................................2......

Petrofield Industries ...............................................................39......

PolyJohn Enterprises, Inc. ................................................66......

Premier ..............................................................................................43......

Pressure Lift Corporation ...................................................45......

Rhino Linings Corporation ................................................5......

Room to Go ..................................................................................33......

Screenco Systems LLC .........................................................63......

Snap-on Industrial Brands ................................................24......

Southwest Products ..............................................................57......

StoneAge, Inc. ............................................................................39......

Ultra Shore .....................................................................................23......

United Rentals - Trench Safety ....................................68......

Vac-Con, Inc. ................................................................................21......

Vactor Manufacturing ..........................................................37......

Vacuum Sales, Inc. ...................................................................59......

Vanair Manufacturing, Inc. ..............................................15......

Vertiflo Pump Co., Inc. .........................................................63......

Water Cannon, Inc. ................................................................63......

WD HOT BLOCKS LLCWD Hot Blocks LLC ................................................................24......

WJTA - IMCA .................................................................................67......


Published monthly by:

1720 Maple Lake Dam Rd., PO Box 220

Three Lakes, WI 54562

www.GOMCMag.com

In U.S. or Canada call toll-free 800-257-7222

Elsewhere call 715-546-3346

Email: [email protected]: www.gomcmag.com

Fax: 715-546-3786

Office hours Mon- Fri.,7:30 a.m.-5 p.m. CST

Copyright 2015 COLE Publishing Inc.No part may be reproduced without

permission of the publisher.

SUBSCRIPTION INFORMATION: A one year (12 issue) subscription to GOMC in the United States or Canada is free to qualified subscribers. A qualified subscriber is any company or individual who maintains, services or supports land-based gas, oil or mining operations in North America. Non-qualified subscriptions are available at a cost of $60 per year in the United States and $120 per year outside of the United States. To qualify visit www.gomcmag.com/qualify or send company name, mailing address, phone number and check or money order (U.S. funds payable to COLE Publishing Inc.) to the address above. MasterCard, VISA and Discover are also accepted. Supply credit card information with your subscription order.

Our subscriber list is occasionally made available to carefully selected companies whose products or services may be of interest to you. Your privacy is important to us. If you prefer not to be a part

of these lists, please contact Nicole LaBeau at [email protected].

DISPLAY ADVERTISING: Contact Tim at [email protected] or 800-994-7990. Publisher reserves the right to reject advertising which in its opinion is misleading, unfair or incompatible with the character of the publication.

REPRINTS AND BACK ISSUES: Visit www.gomcmag.com for options and pricing. To order back issues, call Nicole at 800-257-7222 (715-546-3346) or email [email protected]. To order reprints, call Jeff Lane at 800-257-

7222, (715-546-3346) or email [email protected].

CIRCULATION: Circulation averages 18,167 copies per month.

Tim Krueger

FREE Information from Advertisers (check the Free Info boxes above)PRINT NAME: ___________________________________ TITLE: _________________________________________

COMPANY: _____________________________________________________________________________________

MAILING ADDRESS: _____________________________________________________________________________

CITY: ___________________________________________ STATE: ___________________ZIP: __________________

PHONE: ________________________________________ CELL PHONE: __________________________________

FAX: ___________________________________________ EMAIL: _________________________________________

Scan and email to: [email protected] / Fax to: 715-546-3786Mail to: COLE Publishing Inc., P.O. Box 220, Three Lakes WI 54562

GO

TO

GOMCmag.com

FOR MORE

STORIES AND

ONLINE EXCLUSIVES

FREE INFO

FREE INFO


ow do you get the news out if youve hired a new general manager or if youre looking to hire new

employees?Many of you are probably saying,

Send a press release to the local paper, or something similar, right? Thats a good place to start, but how about finding other ways to communicate with the general public?

Theres social media, for instance. Its a great way to get the news out fast and in your own words. Use Facebook, Twitter, Instagram or whatever else might work for you.

Get members of the community to start liking and following your company. As they do that and share your status updates, it helps spread the news about your company.

Event sponsorship is another way to make your presence known in the community. Is there a local baseball tournament? How about a festival? You could sponsor a tent or special seating area. Theres nothing better than having your signs posted around these events attendees will see them and get to know your company.

There is also the option of using your website to share company news. Dont just create a site and let it sit without updating. Its easy enough to post updates on your current projects, new employee hires and

other developments. Update your website at least monthly to keep it fresh.

SEVERAL REASONS TO CONNECT

You may be wondering why you should connect or communicate with your communities. Its easy to go under the radar, just doing what you normally do, but look at the positives if you do start connecting.

Lets say you are looking for new employees. Instead of just putting an ad in the newspaper or out on Craigslist, advertise it on your social media sites or website. Its cheaper and you might draw in good, qualified individuals who may not get the paper or look at Craigslist.

Having a presence within the community also generates a bank of goodwill in case of an accident. If you dont have any interaction

with the community and one of your drivers rolls his truck and spills, the only thing the community will know about you is that accident, and theyll look down at your company.

Finally, its a great way to draw in potential customers. For example, you have a crew doing hydroexcavation work for a small oil pipeline company and you post a few pictures of your crew working safely on Twitter and Facebook. A different pipeline company may see that and contact you for similar work.

Why would you pass on these free opportunities to promote your company?

OUR WEBSITE

Speaking of connecting with the community, have you been to the Gas, Oil & Mining Contractor website, www.gomcmag.com, lately? If you havent, you should head over right now because we want to connect with you.

Our forums have returned, and we already have a few questions and discussions going. You can post questions or start discussions on anything related to the industry. Its easy to get involved just go to our home page and click on the forum link. Registration is quick and easy.

Each week new questions will be asked, and if you post a question on our forums, we will find the answer for you. Tell us how your company has diversified its service since it started or tell us what is currently going on in your shale play.

DIVERSIFICATION

In this issue youll read about one company that diversified its services. Seven Lakes Oilfield Services, in Cold Lake, Alberta, started in waste hauling but has since expanded into scaffolding services and general trades and labor.

The company, owned by seven aboriginal nations in Canada, is still looking at further diversification to avoid too much dependence on one industry.

After reading this profile, jump in on our forum and let us know what your company has done to diversify.

Enjoy this months issue! GOMC

Cory Dellenbach

Editors Notebook

CONNECTING WITH YOUR COMMUNITYCompanies need to find ways to share their news with the customers they serve and the communities where they operate

By Cory Dellenbach

H

Having a presence within the community also generates a bank of goodwill in case of an accident.

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If youre not using LinkedIn, youre probably doing your professional career a disservice.- Are You Taking Advantage of LinkedIn? gomcmag.com/featured

STAY SAFE

Continuous TrainingSoil remediation is common in the oil and gas industry. But for the companies involved, theres a never-ending cycle of training involved to make sure workers stay safe while returning soil to usable condition. Read about what two companies are doing to keep up with the safety standards and other challenges of soil remediation work. >>> gomcmag.com/featured

WARNING SIGNS

Prevent Tire BlowoutsMost contractors wouldnt mind increasing their vehicles gas mileage, extending the life of expensive tires, improving driving safety and receiving warnings about certain hard-to-access parts that may need repair. They can do just that in their trucks and wheeled equipment with small, innocuous and relatively inexpensive devices called tire pressure monitors. Read more on these handy devices and how they work. >>> gomcmag.com/featured

FIT FOR $50

Weathering the StormMore than a year ago, accounting giant PricewaterhouseCoopers was watching the oil market with unease. And just in time, they came up with a program called: Fit for $50 Oil: Is Your Company Ready? See what the creators of the program have to say about the current economic climate and how to stay profitable. >>> gomcmag.com/featured


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Cover Story

7 aboriginal nations come together to form Seven Lakes Oilfield Services, finding a balance between environmental stewardship and business opportunities

BY KEN WYSOCKY | PHOTOGRAPHY BY NICK SPEROUNES



By setting high standards for employee performance and emphasizing on-the-job safety, Seven Lakes Oilfield Services has built a business reputation as strong as the scaffolding its

employees erect at oil treatment facilities throughout northeastern Alberta. Along the way, the company has grown into what just might be one of the most unique oilfield contractors in Canada.

Established in 2002, the company which primarily provides site and infrastructure scaffolding and waste management services is owned by seven First Nations bands. (First Nations refers to the countrys aboriginal descendants.) Cold Lake First Nations owns 50 percent of the company, and six other bands own equal portions of the remaining

stake: Frog Lake, Kehewin, Saddle Lake, Goodfish Lake, Beaver Lake and Heart Lake. Based in Cold Lake, the company is a subsidiary of Primco Dene LP, which is owned by the Cold Lake First Nations band, says John Darr, president and chief executive officer of Seven Lakes since 2011.

About 80 percent of the companys 250 employees are of aboriginal descent and come from more than 45 First Nations bands and settlements. A board of directors runs the company; it meets once a month and includes representatives from all seven bands, Darr says.

I dont know of any other instance across Canada where seven First Nations bands own one company and work well together, Darr says. Its pretty unique. It works because we all share a common goal: employment opportunities for all aboriginal people. We all share that vision. We couldnt have achieved the success weve had without the support of the chiefs and councils of all the Nations.

Darr acknowledges that some may find it strange that First Nations bands are heavily involved in the oil and gas industry, given the environmental concerns. But he believes that Seven Lakes offers a model for balancing

SEVEN LAKES OILFIELD SERVICES, COLD LAKE, ALBERTAOWNERS: Seven First Nations bands

FOUNDED: 2002

EMPLOYEES: 250

SPECIALTIES: Scaffolding and camp maintenance services, waste management and general trades/labor

WEBSITE: www.sevenlakesoilfield.com

SERVICE AREA: Northeastern Alberta

We want to create wealth and

opportunities for our people, but

were still very united in ensuring that

the lands are taken care of

were very involved in that.

John Darr

> RIGHT: Seven Lakes Oilfield Services employees Mike West, top, and Shane March (wearing DBI/Sala safety harnesses) work on tearing down scaffolding at the shop to bring to a job site. The company owns about $2.5 million in scaffolding and expects to double that amount by summer 2016.


environmental stewardship with business/employment opportunities for struggling First Nations bands.

Dont get us wrong the Nations make sure the lands are being taken care of properly, Darr says. Thats still very important to First Nations groups. They work with environmental consultants all the time to be sure that the lands being used are taken care of properly; this is not about raping and pillaging the land. The aboriginal people will still be here long after the oil companies are gone.

The First Nations understand that the oil industry is an important part of Alberta doing business, and we want to be a part of it, he continues. We want to create wealth and opportunities for our people, but were still very united in ensuring that the lands are taken care of were very involved in that. And the industry is very respectful and understanding of our history.

HUMBLE BEGINNINGSSeven Lakes was formed by James Blackman, the president and chief

executive officer of Primco Dene; Eddie Makokis, a former chief of the Saddle Lake band; and Tom Schultz, a former business manager of Pimee Well Servicing Ltd., another oilfield company owned by First Nations bands, Darr says.

Initially, Seven Lakes focused on waste management services. Getting established was a challenge, especially since the company had no credit history, which made it difficult to obtain anything other than high-interest

(continued)

Most companies dont like it when employees leave to take new jobs. But things are different at Seven Lakes Oilfield Services in Cold Lake, Alberta, one of a handful of Canadian oilfield services companies owned by First Nations bands and organizations.

If our employees move on to take key roles with other companies, we look at that as a great success, says John Darr, the companys president and chief executive officer. The whole idea behind our company is to create better opportunities and a better way of life for our workers. If we bring our people in and train them, and they later move on to work for a different company even a competitor thats still considered a success for us. Thats one more person out there working and making a difference.

Its an unusual attitude, but then again Seven Lakes is not your average oilfield services company. The company was formed to provide better employment opportunities for First Nations people; roughly 80 percent of its 250 employees are of aboriginal descent. Since gainful employment has historically been a challenge for First Nations people, the company tends to provide niche services that dont require workers with extensive job experience.

In most cases, that means many employees start out as general laborers. As such, turnover at that level is high sometimes up to 30 percent. To combat this, the company emphasizes early on that general labor can be a stepping-stone to better jobs, such as operating equipment or building scaffolding. We try to help them understand that the general labor side can be fairly temporary, Darr says.

To reduce employee turnover, Seven Lakes sets employees on career paths whenever possible. For example, scaffold builders can participate in an apprenticeship program taught by certified trainers. We run our own apprenticeship program because then we dont have to send employees away for training or wait for courses to be offered, Darr explains. The training comes from the Scaffold and Access Industry Association.

To become a journeyman scaffolder, an employee must pass four tests and accumulate a certain number of hours of experience a process that takes about three years. Every time employees pass a test, they receive a pay raise. The program has been successful: Dozens of scaffold builders have achieved journeyman status a job that pays wages comparable to journeyman plumbers and carpenters, Darr points out.

Some of them now work in lead positions, such as site managers, or run divisions for us, he says. Weve been very successful in that realm.

LOSING WORKERS ISNT ALWAYS A NEGATIVE FOR OILFIELD CONTRACTOR

Mike West, with Seven Lakes Oilfield Services, works on taking down a portion of scaffolding at the companys shop in Cold Lake, Alberta. West is wearing the companys Watson Gloves, DBI/Sala harness and other safety gear.


loans to finance the purchase of equipment. The company bought some old, beat-up garbage trucks, Darr notes. We owned a lot of used equipment, so we regularly dealt with maintenance and repair issues. Now most of our vehicles are less than 4 years old, and we have a regular replacement cycle in place.

Growth came slowly at first. In the early days, the company actually had more board members than employees, Darr recalls. Even when he came on board in 2011, the company employed just 70 people. What spurred the fast growth in the last four years? Industrious, well-trained employees who do quality work, coupled with management thats always looking for new business opportunities, he says.

We were building our brand name, which takes a long time to do, Darr says. The company benefited from government-related programs similar to minority set-asides in the United States that opened doors for business. But ultimately we were judged on what we did after we got inside those doors, he points out.

A good example is the companys scaffolding division. When the company started the division several years ago, one drilling company gave Seven Lakes the OK to bring in six employees on a trial run. We looked at it as an opportunity to shine, he says. Now that division employs about 40 people and offers good profit margins. Were very proud of that. A political arm helped us open that door, but what built us up to 40 people was

Seven Lakes Oilfield Services, in Cold Lake, Alberta, operates a large fleet of equipment including tandem-axle dump trucks (Peterbilt chassis), front-load garbage trucks (Peterbilt and Mack chassis) and several other pieces of equipment with debris bodies from Universal Handling Equipment. The company also owns over 65 1-ton 4 x 4 flatbed trucks (SWS Truck Bodies & Trailers), used to carry scaffolding materials.

(continued)



hardworking employees, good management from leaders in that division and strong safety performance.

Another factor in the companys growth: Seven Lakes holds employees to high standards of accountability regarding attendance, behavior and safety. Those three items make it tough to work for us, Darr says. Our standards are high and will remain high. Thats why weve been successful.

LARGE EQUIPMENT INVENTORY

The companys large fleet of equipment reflects its dramatic growth. The company owns two excavators made by Caterpillar; six wheeled front-end loaders built by Caterpillar and Deere & Co.; 20 skid-steers manufactured by Bobcat (a subsidiary of Doosan Infracore Bobcat Holdings, a wholly owned subsidiary of Doosan Infracore); six tandem-axle dump trucks (Peterbilt chassis); and two water trucks with Freightliner chassis (a brand owned by Daimler Trucks North America), used for dust-control operations and equipped with 4,000-gallon tanks made by Ledwell.

In addition, the company relies on two trucks a Peterbilt and a Freightliner for snow plowing and sanding highways (equipped with plows made by Monroe Truck Equipment and sanders from Danco Trailers); 10 roll-

off garbage trucks (Peterbilt and Kenworth chassis); two 6-cubic-yard front-load garbage trucks (Peterbilt and Mack chassis); more than 65 1-ton 4 x 4 flatbed trucks (SWS Truck Bodies & Trailers), used to carry scaffolding materials; four tractors three John Deeres and one made by Kubota Tractor equipped with mowers for cutting grass along ditches and roads; and nearly three dozen trailers (Double A Trailers).

Seven Lakes also runs more than 70 Ford 1/2-ton 4 x 4 pickup trucks that are used primarily for daily service work and transporting workers to job sites. Were unique in that we provide door-to-door transportation for our

Were unique in that we provide door-to-door transportation

for our employees. Part of our business model centers on

making sure workers can get to work and home in safe,

reliable transportation.

John Darr

Seven Lakes Oilfield Services crew members Josh Larocque, top right, Nicole Janvier, middle, and another unidentified employee, bottom, work on installing scaffolding at a job site.

(continued)


hardworking employees, good management from leaders in that division and strong safety performance.

Another factor in the companys growth: Seven Lakes holds employees to high standards of accountability regarding attendance, behavior and safety. Those three items make it tough to work for us, Darr says. Our standards are high and will remain high. Thats why weve been successful.

LARGE EQUIPMENT INVENTORY

The companys large fleet of equipment reflects its dramatic growth. The company owns two excavators made by Caterpillar; six wheeled front-end loaders built by Caterpillar and Deere & Co.; 20 skid-steers manufactured by Bobcat (a subsidiary of Doosan Infracore Bobcat Holdings, a wholly owned subsidiary of Doosan Infracore); six tandem-axle dump trucks (Peterbilt chassis); and two water trucks with Freightliner chassis (a brand owned by Daimler Trucks North America), used for dust-control operations and equipped with 4,000-gallon tanks made by Ledwell.

In addition, the company relies on two trucks a Peterbilt and a Freightliner for snow plowing and sanding highways (equipped with plows made by Monroe Truck Equipment and sanders from Danco Trailers); 10 roll-

off garbage trucks (Peterbilt and Kenworth chassis); two 6-cubic-yard front-load garbage trucks (Peterbilt and Mack chassis); more than 65 1-ton 4 x 4 flatbed trucks (SWS Truck Bodies & Trailers), used to carry scaffolding materials; four tractors three John Deeres and one made by Kubota Tractor equipped with mowers for cutting grass along ditches and roads; and nearly three dozen trailers (Double A Trailers).

Seven Lakes also runs more than 70 Ford 1/2-ton 4 x 4 pickup trucks that are used primarily for daily service work and transporting workers to job sites. Were unique in that we provide door-to-door transportation for our

Were unique in that we provide door-to-door transportation

for our employees. Part of our business model centers on

making sure workers can get to work and home in safe,

reliable transportation.

John Darr

Seven Lakes Oilfield Services crew members Josh Larocque, top right, Nicole Janvier, middle, and another unidentified employee, bottom, work on installing scaffolding at a job site.

(continued)

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employees, Darr says, noting that reliable transportation can be a challenge for many First Nations people. Part of our business model centers on making sure workers can get to work and home in safe, reliable transportation. Its a huge expense we spent $1.4 million on fuel last year. It definitely comes off our bottom line, for sure. Those kinds of costs dont get absorbed by industry or clients.

The company also owns about $2.5 million in scaffolding and expects to double that amount by summer 2016, Darr says. Weve experienced substantial growth in scaffolding, which reflects our constant search for growth and new opportunities, he notes.

SAFETY MATTERS

A solid safety record has also been critical to the companys fortunes. Our slogan is, Safety is our tradition, Darr says. At this point, weve gone 6 1/2 years without a recordable work-related injury. In this industry, a companys safety record is the driving force for future work. You can be the fastest contractor out there, but if you have a poor safety performance record, you wont be out there very long.

Seven Lakes matches up each new employee with a mentor that does operations and safety training for the first three months. After that, the mentors continue to provide ongoing training out in the field, with the belief that hands-on, day-to-day instruction is more valuable than classroom training, Darr says. To further motivate employees to work safely, the company provides catered dinners on a quarterly basis for divisions with clean safety records. We believe in celebrating these milestones and acknowledge outstanding safety performance, he says.

Its vital that we maintain our outstanding safety record and continue to build on it, Darr adds. The No. 1 priority is keeping our people safe and teaching them that services can be performed safely on a daily basis. All they have to do is follow procedures and avoid taking shortcuts.

EYEING FUTURE GROWTHSeven Lakes wants to build on the rapid growth it has achieved during

the last four or five years. To do so, company officials are focused on ways to reduce costs to clients and on diversifying the companys business services by capitalizing on niche markets, Darr says.

In some areas, were doing things that other companies dont necessarily want to do, like provide general labor for things such as weed picking or painting, he explains. We want to focus on smaller services that are a challenge for the industry players, because it can be hard to find companies to perform them. Plus, these opportunities open doors for other work.

Were also looking for other opportunities outside the oil industry so that were not as dependent on just one industry, he adds. That would open up more opportunities in our company because not everyone is a good fit for working in this industry. Its very demanding with long hours not everyone is cut out for it. We have lots of workers out there who might not be suited for the oil industry but would be a good fit for other opportunities.

But above all else, Seven Lakes intends to continue to provide oilfield clients with the best service possible. We dont just work for our industry players, Darr concludes. We value them as partners, and they do the same to us. Its a great partnership that has resulted in a win-win relationship. GOMC

more infoDBI/Sala 800/328-6146www.capitalsafety.com

Double A Trailers780/657-0008 www.doubleatrailers.ca

Freightliner Trucks - A Div. of Daimler Trucks NA800/385-4357www.freightlinertrucks.com

Ledwell & Son888/533-9355www.ledwell.com

SWS Truck Bodies & Trailers780/349-5200 www.swstruckbodiesandtrailers.com

Universal Handling Equipment877/843-6163 www.universalhandling.com

Watson Gloves800/663-9509 www.watsongloves.com

Seven Lakes Oilfield Services employees, from left, Gerald Matchatis, Jaron Scanie and Wesley Jacknife stand in front of a flatbed truck by SWS Truck Bodies & Trailers and discuss a job before heading out to the site.



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employees, Darr says, noting that reliable transportation can be a challenge for many First Nations people. Part of our business model centers on making sure workers can get to work and home in safe, reliable transportation. Its a huge expense we spent $1.4 million on fuel last year. It definitely comes off our bottom line, for sure. Those kinds of costs dont get absorbed by industry or clients.

The company also owns about $2.5 million in scaffolding and expects to double that amount by summer 2016, Darr says. Weve experienced substantial growth in scaffolding, which reflects our constant search for growth and new opportunities, he notes.

SAFETY MATTERS

A solid safety record has also been critical to the companys fortunes. Our slogan is, Safety is our tradition, Darr says. At this point, weve gone 6 1/2 years without a recordable work-related injury. In this industry, a companys safety record is the driving force for future work. You can be the fastest contractor out there, but if you have a poor safety performance record, you wont be out there very long.

Seven Lakes matches up each new employee with a mentor that does operations and safety training for the first three months. After that, the mentors continue to provide ongoing training out in the field, with the belief that hands-on, day-to-day instruction is more valuable than classroom training, Darr says. To further motivate employees to work safely, the company provides catered dinners on a quarterly basis for divisions with clean safety records. We believe in celebrating these milestones and acknowledge outstanding safety performance, he says.

Its vital that we maintain our outstanding safety record and continue to build on it, Darr adds. The No. 1 priority is keeping our people safe and teaching them that services can be performed safely on a daily basis. All they have to do is follow procedures and avoid taking shortcuts.

EYEING FUTURE GROWTHSeven Lakes wants to build on the rapid growth it has achieved during

the last four or five years. To do so, company officials are focused on ways to reduce costs to clients and on diversifying the companys business services by capitalizing on niche markets, Darr says.

In some areas, were doing things that other companies dont necessarily want to do, like provide general labor for things such as weed picking or painting, he explains. We want to focus on smaller services that are a challenge for the industry players, because it can be hard to find companies to perform them. Plus, these opportunities open doors for other work.

Were also looking for other opportunities outside the oil industry so that were not as dependent on just one industry, he adds. That would open up more opportunities in our company because not everyone is a good fit for working in this industry. Its very demanding with long hours not everyone is cut out for it. We have lots of workers out there who might not be suited for the oil industry but would be a good fit for other opportunities.

But above all else, Seven Lakes intends to continue to provide oilfield clients with the best service possible. We dont just work for our industry players, Darr concludes. We value them as partners, and they do the same to us. Its a great partnership that has resulted in a win-win relationship. GOMC

more infoDBI/Sala 800/328-6146www.capitalsafety.com

Double A Trailers780/657-0008 www.doubleatrailers.ca

Freightliner Trucks - A Div. of Daimler Trucks NA800/385-4357www.freightlinertrucks.com

Ledwell & Son888/533-9355www.ledwell.com

SWS Truck Bodies & Trailers780/349-5200 www.swstruckbodiesandtrailers.com

Universal Handling Equipment877/843-6163 www.universalhandling.com

Watson Gloves800/663-9509 www.watsongloves.com

Seven Lakes Oilfield Services employees, from left, Gerald Matchatis, Jaron Scanie and Wesley Jacknife stand in front of a flatbed truck by SWS Truck Bodies & Trailers and discuss a job before heading out to the site.

OCTOBER 2015 - www.gomcmag.com GOMC 21FREE INFO SEE ADVERTISER INDEX


ne million new immigrants enter the United States annually, and one-third of all Americans are

minorities. People from diverse cultures present a tremendous opportunity for companies to sell more products and services if businesses are willing to adjust their practices to meet the unique needs of the fastest-growing consumer group in the country. The buying power of Hispanics, African-Americans, Asians and Middle Easterners is growing rapidly, and they spend over $2 trillion annually.

Many Americans wrongly believe that multicultural customers only want to do business with people from their own culture. In most cases, nothing could be further from the truth, as long as they are treated with respect and patience.

In some cases, minorities deliberately seek out businesses and salespeople from outside their culture. In real estate, for example, some Asian and Hispanic clients choose agents who are not from their culture because they fear that if they share personal financial information with one of their brethren, that information might spread around their community.

Developing a diverse customer base takes more than printing brochures in different languages or hiring bilingual employees. It requires a long-term commitment and a willingness to adjust

business practices to meet the special circumstances of minorities. American businesses can bridge this gap and increase sales to this market by educating themselves on the differences.

PROPER GREETINGOne challenge when trying to attract

this group is they dont buy products and services the same way as Anglo-Americans. A few of the diversity differences that affect retail and service providers include building rapport, negotiations and contracts.

The first step in building rapport with people, regardless of culture, is never to assume how they want to be greeted. As Americans, we assume customers want to be met with a firm handshake. But the most common greeting in the world is the bow (the handshake can actually be offensive to many people). Let the customer determine the most comfortable greeting by hesitating before extending your hand to see what they do first. Most men, regardless of culture, will offer a handshake and may nod as they do so. Simply do likewise.

After shaking a mans hand, it is crucial that you drop your hand to your side before turning to his female companion. Many traditional Middle Eastern, Japanese and other women are uncomfortable touching or are even forbidden to touch a man who is not their husband. Men from the Middle

East often do not introduce the women who accompany them, nor is it expected that you shake hands with their spouses.

Recognize, too, that some cultures are used to hugging and even kissing people on the cheek. Immigrant men from the Middle East often shake hands with a slight nod or bow and then exchange kisses on both cheeks. If this happens to you, take it as a sign that they are comfortable with you and do likewise. Dont try to turn away or you may get kissed on the mouth!

The global rule of greeting is to never assume anything. Greet customers verbally and give them the opportunity to offer the type of greeting that is most comfortable for them. Then simply return the gesture.

UP CLOSE AND PERSONAL?Personal space also varies among

cultures. In the United States, we usually shake hands and then stand about 2 1/2 feet apart. This is not always comfortable for people from more formal countries like Japan, where they bow or shake hands and take a step back. To Americans, that distance seems like the Grand Canyon, so we step forward. Then the Japanese person will naturally step back to re-establish a more comfortable distance.

Some cultures prefer a closer distance when communicating. Middle Easterners and many Hispanics will often hug you and simply stay at that distance. This is way too close for Americans, so we naturally step back. Then they will step forward, and so on. This can make communication uneasy. It also does not start your relationship on a very positive note.

Eye contact is another difference to be aware of. Americans equate strong, direct eye contact with honesty and respect. Many Asians and Native Americans, however, look down, avoiding direct eye contact as a sign of respect for you. This can be uncomfortable for people from this country, so we try to catch their eye. The solution is simple: Look down.

Meanwhile, Middle Eastern people and some Hispanics often use strong eye contact. People from these groups may make Americans somewhat uncomfortable with their intensity. The best advice? Just get used to it.

Building the Business

WELCOME DIVERSITY AND BUILD CUSTOMER BASEWhen you learn to understand and adapt to cultural differences, you can effectively tap into the fast-growing minority groups to build your service business

By Michael Soon Lee

O

The global rule of greeting is to never assume anything. Greet customers verbally and give them the opportunity to offer the type of greeting that is most comfortable for them. Then simply return the gesture.


Building the Business offers ideas and information to help you operate your company more efficiently and profitably. If you have a question, comment or a topic youd like to see addressed, send an email to [email protected].

Comments or Suggestions ...

LEARN TO DICKERMany new immigrants come from countries where negotiating is a way

of life. In America, were used to paying full price for nearly everything except cars and houses. This puts us at a disadvantage when dealing with people from a culture where haggling over everything from clothes to food is the norm. If you have several customers from such cultures, you may want to enroll in a negotiating class!

Contracts are also not the same around the world. In the United States, we put everything we agree upon in detailed writing. Signing a contract puts an end to all negotiations. In many other countries, however, signing a contract begins the bargaining process.

Minorities in America are growing at an astounding rate. According to the U.S. Census Bureau, the Hispanic population alone swelled 43 percent from 2000 to 2010, and Asians increased 43 percent as well during the same period.

These consumers can be an increased source of income for companies that are willing to adjust just a little to make people from other cultures more comfortable doing business with them. GOMC

ABOUT THE AUTHORMichael Soon Lee is a speaker and trainer, and consults through his company, EthnoConnect. Reach him at 800/417-7325 or [email protected].

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eavy metals can be a death knell for downstream equipment. Thats why its important to have a grinder adept at shredding these fragments, allowing them to be easily removed from the water stream. The makers

of the RotaCut Inline Grinder, which was on display at the Vogelsang booth at the 2015 Water & Wastewater Equipment, Treatment & Transport (WWETT) Show, aim to do something about the problem.

The RotaCut reduces solids to specific size requirements. Objects and debris suspended in liquid such as plastic fragments, rubber, hair, wipes, applicators, plastic pens, string, wood and bones are drawn through the cutting screen and cut by self-sharpening rotary blades into a size that will pass through downstream equipment.

This product was designed specifically to grind up rags for treatment facilities, says Mike Colbert, product and field service manager for Vogelsang. Its actually a product that weve been selling since 1998, but a lot of upgrades have made it more user-friendly.

Standard RotaCut features include auto-reverse, auto cut control, self-sharpening blades and reversible cutter screens. The unit is rebuildable inline, which eliminates the need to send out cutter cartridges for reconditioning. When placed on the suction or discharge side of a pump, the RotaCut works to eliminate ragging, reduce solids and protect downstream equipment from clogging, prevent damage to belt press and plate and frame press applications, and more efficiently balance centrifuge feed. Heavy solids are captured in the collection basin and eliminated entirely from the liquid.

Auto-reverse helps the RotaCut handle large objects by reversing the rotation of the blades until the object is cleared, reduced and passed through the screen. It engages at preset intervals, which keeps the blades wearing evenly. The trailing edge of the blade is sharpened as a natural effect of the cutting process. When the rotation is reversed, a fresh edge enhances the cutting quality.

To ensure the blades last as long as possible, auto cut control, the newest innovation to the product line, automatically adjusts the blades as normal wear progresses. It eliminates manual maintenance of the cutting head tension. The entire process is controlled externally, which minimizes the need to open the unit. That constant pressure on the blade leads to optimum cutting, says Colbert.

Maintenance is relatively easy, as everything can be done inline without removing any connected piping. The hinged cutting head can be accessed by disengaging one or more of the hand latches. The head is disassembled by removing the Allen bolt that holds the assembly together, allowing routine service such as blade or screen changes to be performed. There are no cartridge-style parts that require factory refurbishment. Screens come in several patterns that will produce a designated-size solid capable of fitting through machinery later in the treatment process. The rotational speed of the cutting head also influences the solid size. All screens are reversible to allow for a fresh cutting surface without buying a new spare part.

Spotlight

H

GRINDING TO STOP DAMAGEVogelsangs inline grinder saves wear and tear, maintenance on headworks

By Craig Mandli

Mike Colbert, left, product and field service manager for Vogelsang, discusses the features of the RotaCut Inline Grinder pump with a couple attendees at the 2015 Water & Wastewater Equipment, Treatment & Transport (WWETT) Show. The pumps auto cut control function uses a hydraulic unit to monitor and correct the tension between the blade assembly and cutting screen automatically, optimizing cutting performance and the life of wear components. (Photo by Craig Mandli)

To ensure the blades last as long as possible, auto cut control, the newest innovation to the product line, automatically adjusts the blades as normal wear progresses.

The RotaCut is used in several wastewater applications, including primary and secondary sludge, sludge transfer, and dewatering feed. According to Colbert, the flexibility of being able to specify how fine the particles are shredded is convenient for wastewater operators, even those at mining sites. All plants have varied specifications regarding how small the particles need to be to get through the rotating equipment without clogging it, he says.

Colbert was enthused by the positive response from those attending WWETT 2015 and says that he talked with many more plant operators this year than in the past. I think changing the name played a big role, as I saw more people on the municipal wastewater side than I ever have in the past, he says.

Colbert says Vogelsang plans to come back with an expanded product offering in 2016, including products not only geared toward municipal treatment but small treatment systems as well. This show brings people from all over with a lot of interest in the industry, he says. Were hearing a lot of feedback that we can bring back and use in the future. 800/984-9400; www.vogelsangusa.com. GOMC

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ix members of the U.S. House of Representatives did a little bit of leg work before getting started on

a reauthorization of the Pipeline Safety, Regulatory, Certainty and Job Creation Act as they toured the Bakken Shale play.

Led by Rep. Kevin Cramer (R-North Dakota), the members of the House Subcommittee on Rail, Pipeline and Hazardous Materials were seeking insights before working on the act, which expires at the end of the fiscal year. Were here to learn and be well-informed and prepared for important decisions, Cramer says.

As part of the visit in early August, the representatives rode a BNSF Railway train from Minot to Williston, North Dakota, passing several oil-loading facilities and stopping to tour a drilling site and fracking site.

Were working with an industry, both the oil industry and the rail industry, that has a deep concern and has addressed safety issues at the highest level, says Rep. Cheri Bustos (D-Illinois).

Taking part in the tour besides Cramer and Bustos were Rep. Dan Lipinski (D-Illinois), Rep. Jeff Denham (R-California), Rep. Tom Rice (R-South Carolina) and Rep. Mark Sanford (R-South Carolina). Its good to get a firsthand view, to see a place, to see whats going on so that we go back to Washington and we know what were talking about, says Lipinski.

THE ACT

The Pipeline Safety, Regulatory, Certainty and Job Creation Act of 2011 was designed to examine and improve the state of pipeline safety regulation throughout the U.S.

The act amended existing pipeline safety laws and authorized the appropriation of funds to support the pipeline safety activities of the Pipeline and Hazardous Materials Administration.

Many of the amendments were in response to high-profile pipeline accidents in 2010 and early 2011 that caused Congress to conclude that tough requirements were needed to ensure the safety of the nations 2.4 million miles of pipeline infrastructure.

Among its provisions, the act:Doubled the maximum fine for

pipeline safety violations and extended federal safety oversight of gas, oil and other liquid pipelines through 2015.

Commissioned studies to determine if more needs to be done to secure transmission pipelines throughout the system and in more populated areas.

Contained a strong incentive for states to remove current one-call exemptions, requiring all entities to call a hotline before they dig to learn what might be below.

Required newly constructed pipelines to include automatic shut-off valves that isolate a section of pipe in the event of a rupture.

ON A NATIONAL LEVEL

Bustos knows the history of crude oil transportation firsthand: Bakken oil train derailed and burned in March in her district in northwest Illinois.

We want to make sure that people living in communities along rail lines feel confident that were looking out for their

safety, says Bustos. The train derailment near Galena on March 5 occurred in a rural area and did not cause injuries or deaths. However, the explosion that resulted and the spill from the tank cars that ruptured raised concerns about the danger.

The cost of the damage from the derailment, including the environmental cleanup, overtime for agencies who responded and the cost to rebuild a bike path and roads that were damaged, was close to $10 million, Bustos says.

Bustos praised North Dakota for enacting a state rule in April requiring crude from the Bakken to be conditioned to reduce its volatility. She added that she would like to see a similar requirement for all flammable liquids being shipped by rail.

Id like to take a look at that at a national level and make sure that crude coming from any region of the country transported across our United States is as safe as possible, Bustos says.

The representatives all agreed that the oil needs to keep coming, but that safety needs to be a top priority. We have to make sure we keep this oil flowing and keep not just this region but our country secure, Lipinski says. Weve learned a lot about the entire life cycle of oil development, not just the transportation piece of it. I think it was a very useful tool for people in positions to make a difference going forward. GOMC

Bakken Extra

FACT-FINDING TOURCongress members get firsthand look at Bakken crude transportation along rail and pipelines

By Cory Dellenbach

SWere working with an

industry, both the oil industry

and the rail industry, that

has a deep concern and has

addressed safety issues at

the highest level.Rep. Cheri Bustos (D-Illinois)


ix members of the U.S. House of Representatives did a little bit of leg work before getting started on

a reauthorization of the Pipeline Safety, Regulatory, Certainty and Job Creation Act as they toured the Bakken Shale play.

Led by Rep. Kevin Cramer (R-North Dakota), the members of the House Subcommittee on Rail, Pipeline and Hazardous Materials were seeking insights before working on the act, which expires at the end of the fiscal year. Were here to learn and be well-informed and prepared for important decisions, Cramer says.

As part of the visit in early August, the representatives rode a BNSF Railway train from Minot to Williston, North Dakota, passing several oil-loading facilities and stopping to tour a drilling site and fracking site.

Were working with an industry, both the oil industry and the rail industry, that has a deep concern and has addressed safety issues at the highest level, says Rep. Cheri Bustos (D-Illinois).

Taking part in the tour besides Cramer and Bustos were Rep. Dan Lipinski (D-Illinois), Rep. Jeff Denham (R-California), Rep. Tom Rice (R-South Carolina) and Rep. Mark Sanford (R-South Carolina). Its good to get a firsthand view, to see a place, to see whats going on so that we go back to Washington and we know what were talking about, says Lipinski.

THE ACT

The Pipeline Safety, Regulatory, Certainty and Job Creation Act of 2011 was designed to examine and improve the state of pipeline safety regulation throughout the U.S.

The act amended existing pipeline safety laws and authorized the appropriation of funds to support the pipeline safety activities of the Pipeline and Hazardous Materials Administration.

Many of the amendments were in response to high-profile pipeline accidents in 2010 and early 2011 that caused Congress to conclude that tough requirements were needed to ensure the safety of the nations 2.4 million miles of pipeline infrastructure.

Among its provisions, the act:Doubled the maximum fine for

pipeline safety violations and extended federal safety oversight of gas, oil and other liquid pipelines through 2015.

Commissioned studies to determine if more needs to be done to secure transmission pipelines throughout the system and in more populated areas.

Contained a strong incentive for states to remove current one-call exemptions, requiring all entities to call a hotline before they dig to learn what might be below.

Required newly constructed pipelines to include automatic shut-off valves that isolate a section of pipe in the event of a rupture.

ON A NATIONAL LEVEL

Bustos knows the history of crude oil transportation firsthand: Bakken oil train derailed and burned in March in her district in northwest Illinois.

We want to make sure that people living in communities along rail lines feel confident that were looking out for their

safety, says Bustos. The train derailment near Galena on March 5 occurred in a rural area and did not cause injuries or deaths. However, the explosion that resulted and the spill from the tank cars that ruptured raised concerns about the danger.

The cost of the damage from the derailment, including the environmental cleanup, overtime for agencies who responded and the cost to rebuild a bike path and roads that were damaged, was close to $10 million, Bustos says.

Bustos praised North Dakota for enacting a state rule in April requiring crude from the Bakken to be conditioned to reduce its volatility. She added that she would like to see a similar requirement for all flammable liquids being shipped by rail.

Id like to take a look at that at a national level and make sure that crude coming from any region of the country transported across our United States is as safe as possible, Bustos says.

The representatives all agreed that the oil needs to keep coming, but that safety needs to be a top priority. We have to make sure we keep this oil flowing and keep not just this region but our country secure, Lipinski says. Weve learned a lot about the entire life cycle of oil development, not just the transportation piece of it. I think it was a very useful tool for people in positions to make a difference going forward. GOMC

Bakken Extra

FACT-FINDING TOURCongress members get firsthand look at Bakken crude transportation along rail and pipelines

By Cory Dellenbach

SWere working with an

industry, both the oil industry

and the rail industry, that

has a deep concern and has

addressed safety issues at

the highest level.Rep. Cheri Bustos (D-Illinois)

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mar Garcia gets asked a lot of questions. How is the Eagle Ford doing? What is the future of the

shale with the current market conditions and oil prices?

Community members who are entrenched in the shale located in south Texas want to know the latest about the most active play in the world, which has turned into the areas biggest economic booster. The South Texas Energy & Economic Roundtable (STEER) strives to provide all the answers.

STEER, which is based in San Antonio, was founded in October 2012 for two main reasons, notes Garcia, who is the organizations president and CEO.

No. 1 was to connect the industry with the stakeholders, Garcia says. In south Texas, its pretty rural and not had a lot of economic development, jobs or growth or any type of new investment in many, many years. Our organization started to help out some of this growth work on roads, infrastructure, workforce and just general questions. The second thing was to be an education resource. You can imagine everybody had a ton of questions. Everybody wanted a presentation. Everybody wanted to know what the Eagle Ford was. What does it mean to my community?

The organization coordinates communication, education and public

advocacy surrounding the production of energy resources.

I think in terms of success for the Eagle Ford, its a win-win for everybody, says Haley Curry, STEER vice president of external affairs. Weve set out to be that line of communication between the community and the industry. What we end up doing is a lot of community efforts and talking a lot about community needs.

A GROUP IS FORMED

STEER was established by 11 of the largest operators in the Eagle Ford region: Anadarko, Chesapeake Energy Corpora-tion, ConocoPhillips, EOG Resources, Lewis Energy Group, Marathon Oil, Mur-phy Oil, Pioneer Natural Resources, Shell, Statoil, and Talisman Energy.

Since its inception, STEER has grown to 16 operators, four service companies and 10 resource members. Its not an extremely large group, but its a tight-knit core of companies with a strong mission.

The reason why were pretty small is because its not like we dont have a lot of great operators in our industry but these companies have top to bottom really put an investment into the areas that theyre working and developing in, Curry says. That means they have

october 2015

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