Pipeline Construction - 09 SEP-OCT 2009

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Volume 2

Issue 2

September/October 2009

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 B utch 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 the Federal Energy Regulatory Commission (FERC) approves infrastructure projects, sets rates and enforces the oil and gas market. By Bradley Kramer

A look at how

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

DEPARTMENTS

8 12 14 40 46

News Project Roundup Market Watch Product Showcase: ROW/Land Clearing Events Calendar

COLUMNS

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Editor’s Message

MARKETPLACE

45 46

Business Cards Index of Advertisers

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: complimentary 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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North American Pipelines | SEPTEMBER/OCTOBER 2009

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Editor’s Message The Energy to Push Through The global economy continues to slowly lit itsel rom this deep downturn, and oil and gas inrastructure projects have hit the brakes. Or have they? Ater strong years o growth rom 2006 to 2008, when natural gas pipeline construction helped uel the recent boom years, the industry has cut back on building largescale transmission lines, according to Je Wright, director o energy projects or the Federal Energy Regulatory Commission (FERC). Ater approving almost 6,000 miles o pipeline projects in the last three years, the commission has approved only 172 miles or 2009. But don’t bother running or cover. “The sky is not alling like everybody says,” says Ritchie Bros.’ Butch Graham, who assured me when I spoke with him or this issue’s cover story (on page 16) that pipeline contractors will help pull us out o the recession. Indeed, Wright says that while the miles o pipeline projects might be down, capacity is increasing as pipeline owners build support inrastructure or the pipelines and storage acilities. Many o the projects that were approved in the last ew 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 o what happens, the world needs energy, and energy needs inrastructure. Pipeline projects continue to move orward — albeit at a slower pace than in the past ew 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 fnding ways to coexist with alternative and renewable energy sources, as Chevron just started building a 29-megawatt solar steam plant at one o its oil felds in Coalinga, Cali. (New York Times, Aug. 24). The power plant will be used to inject steam into the oil wells to enhance production. Forbes magazine put ExxonMobil on its cover as the “Green Company o the Year” or investing $600 million on developing algae arms to produce automotive gasoline and continuing to boost its natural gas production. How’s that or 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.

Publisher

Bernard P. Krzy s 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. P.O. Box 19 0 Peninsula, OH 44264 USA (330) 467-7588 • Fax: (330) 468-2289

Bradley Kramer Associate Editor [email protected]

www.napipelines.com e-mail: [email protected]

Reprints

Wright’s Reprints Ph: 877-652-5295 Fax: 281-419-5712

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North America News Alberta Clipper Pipeline Project Ready to Set Sail Enbridge to Assist Enbridge Energy Partners With U.S. Alberta Clipper Funding oil and natural gas inrastructure,” says Terrance McGill, The 1,000-mile Alberta Clipper Pipeline expansion president o the partnership’s management company and rom Alberta, Canada, to the United States is set to begin o its general partner. construction now that unding is in place. Enbridge Inc. “The joint unding arrangement or Alberta Clipper and Enbridge Energy Partners have concluded a joint unding agreement under which Enbridge will eectively und substantially reduces the equity required to complete the permanent unding or these projects down to a two-thirds o the $1.2 billion U.S. segment o the Alberta Clipper crude oil pipeline project. The company expected to level that we can likely accommodate through sale o non-strategic assets, or a traditional private or pubbegin construction soon ater receiving approval rom the U.S. Department o State on Aug. 20. The Alberta Clipper project consists consist s o a 36in. diameter pipeline and associated pumping and terminal acilities rom Hardisty, Alberta, to Superior, Wis. This 1,000-mile (1,607-km) segment is designed to resolve expected capacity constraints. The segment rom Hardisty to the U.S. border is being undertaken by Enbridge Pipelines Inc., a wholly owned subsidiary o Enbridge Inc., at an estimated cost o $2.4 billion CAD. The segment rom the U.S. border to Superior is being undertaken by Enbridge Energy Partners through Enbridge Energy, Limited Partnership. Both segments are scheduled to be in service by mid-2010. The initial capacity o the line will be 450,000 barrels per day o heavy crude, expandable at very low cost, through the addition o pumping acilities, to 800,000 barrels per day. Under the terms o the agreement, Workers lay welded pipe in a trench in Hardisty, Alberta, where the Alberta Clipper Enbridge will participate in the debt nancPipeline will continue toward the U.S. market via Superior, Wis. ing that Enbridge Energy Partners raises or the project, and will und two-thirds o the project’s project’s equity lic placement o partnership units,” McGill says. “As a requirements directly into Enbridge Energy, Limited Partresult, these projects should all be accretive and we will nership, the subsidiary o Enbridge Energy Partners that is avoid the dilution, which would otherwise result rom constructing the project. a very large equity issue, given current market condiEnbridge will be entitled to two-thirds o the earnings tions. At the same time, with Enbridge participating in and cash fow that Enbridge Energy, Limited Partnership, the debt, which needs to be issued or Alberta Clipper, it generates rom the base project. Enbridge and Enbridge will reduce our call on debt markets and should improve Energy Partners will each have a right o rst reusal on our borrowing rates. each other’s investment in the project, and Enbridge Energy “Enbridge Energy Partners is now well positioned to Partners will retain the right to und up to 100 percent consider new opportunities as they arise,” McGill says. o any expansion and dilute Enbridge’s interest down “The joint unding or the U.S. segment o Alberta Clipcorrespondingly. correspondingly. The terms o the agreement were reviewed per is a win-win or Enbridge and Enbridge Energy Partners and approved by a committee o Enbridge Energy Partners’ and our shippers,” says Patrick Daniel, president and chie independent directors. executive ocer o Enbridge Inc. “For shippers, it should “In addition to Alberta Clipper, Enbridge Energy Partresult in lower tolls because Enbridge Energy Partners’ cost ners is undertaking a number o very attractive growth opto nance the debt component o Alberta Clipper should portunities including the expansion o our North Dakota be reduced.” system to accommodate increased Bakken shale producDaniel also adds: “Based on Enbridge’s current capital tion, the recently completed Southern Access expansion o plans, we have a substantial cushion o surplus equity to our crude oil mainline and the Clarity gas pipeline. There und this investment as well as other opportunities that are urther attractive opportunities in sight or both crude may become available.” 8


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Game On: Midcontinent Express Pipeline Goes in Service Turn on the gas. Construction o the approximately 500mile Midcontinent Express Pipeline (MEP) is complete and natural gas transportation service commenced Aug. 1, on the pipeline rom Delhi, La., to Transcontinental Pipe Line’s Station 85 in Butler, Ala. Interim service had begun on the pipeline rom Bennington, Okla., to Delhi in April. MEP is a joint venture o Kinder Morgan Energy Partners LP and Energy Transer Partners LP. “We are delighted that the nal leg o the Midcontinent Express Pipeline is in service,” says Steve Kean, president o Kinder Morgan’s Natural Gas Pipelines group. Kinder Morgan constructed and will operate the pipeline. “The completion o this nal segment o MEP aords 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 o Energy Transer’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 eet (Bc) per day in Zone 1, which interconnects with the Columbia Gul Transmission system in Delhi and up to 0.84 Bc per day in Zone 2, which interconnects with the Transcontinental Gas Pipe Line system in Butler. An expansion o the pipeline is expected to be completed in 2010, which will urther increase MEP’s capacity to approximately 1.8 Bc per day in Zone 1 and 1.2 Bc per day in Zone 2. The pipeline’s capacity, including expansion, is ully subscribed with long-term binding commitments rom creditworthy shippers. Chevron’s Next-Gen Ultra-Deepwater Drillship Goes Gulfng There’s a new ship on the Gul o Mexico. The Discoverer Clear Leader, an ultra-deepwater drillship, newly built to Chevron’s specications, has begun work or Chevron U.S.A. Inc., a wholly owned subsidiary o Chevron Corp.

Chevron’s Discoverer Clear Leader will be stationed in the deep waters o the Gul o Mexico, where it will be drilling at depths up to 40,000 t.

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

in the deepwater U.S. Gul o Mexico under a ve-year contract with Transocean. “The Discoverer Clear Leader oers the most-advanced drilling capabilities in the oshore drilling industry and will enable Chevron to expand the search or new domestic sources o energy,” says George Kirkland, executive vice president o Chevron’s Upstream and Gas division. Chevron is one o the top lease holders and producers in the deepwater Gul o Mexico. The drillship will begin work or Chevron at several o its deepwater projects, including Tahiti and Jack/St. Malo. The Discoverer Clear Leader is the rst o two new drillships to be commissioned or Chevron. The second vessel, the Discoverer Inspiration, is expected to be delivered in early 2010. The drillship eatures Transocean’s patented dualactivity drilling technology designed to enable parallel drilling operations rom 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 ork over approximately $258 million to an unnamed private company or the purchase o additional properties in the Piceance Valley in western Colorado, east o the company’s existing assets in the region. The parties expect the transaction to close near the end o the third quarter. The assets, which are geologically similar to other Williams assets in the Piceance Valley, could represent an estimated 795 billion cubic eet equivalent (Bce) o net reserves. O the estimated reserves, approximately 150 Bce are proved. In addition, the properties contain exploration upside rom deeper ormations 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 eet equivalent per day (MMce/d), related gas and water gathering acilities, 94 approved drilling permits and more than 800 drillable locations at 10-acre spacing. “We’ve identied an opportunistic bolt-on acquisition that allows us to quickly add meaningul reserves, production, cash fows and earnings per share by leveraging o o the strength o our low cost structure in the Piceance Basin,” says Steve Malcolm, chairman, president and chie executive ocer o cer.. “The anticipated production also can be an important additional supply source or our Northwest Pipeline,” Malcolm says. With regard to development, Williams plans to incrementally add drilling rigs to its Piceance operations, with one additional rig tentatively slated or ourth quarter 2009, ollowed by one more in 2010 and two more in 2011. Williams is currently running a total o eight rigs in western Colorado. Williams plans to und the $258 million acquisition investment, along with $15 million in projected 2009 development costs and $50 million o the 2010 development costs, with cash on hand. The company expects to und the balance o the 2010 and 2011 capital requirements largely through the anticipated cash fow rom these properties. SEPTEMBER/OCTOBER 2009 | North American Pipelines

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“The acquisition ts perectly with our low-risk, highreturn prole in the Piceance Basin,” says Ralph Hill, president o Williams’ exploration and production business. “This is a rare nd. The existing wells in the area we’re acquiring are very productive, producing a third more gas than Williams’ existing prolic Piceance Valley wells or a similar cost.” Williams has extensive inrastructure in place in the Piceance Basin. In addition to its natural gas drilling activities, the company is in the process o 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 Retire DCA executive vice president and chie operating ocer Dennis Kennedy will be retiring rom his post, eective Dec. 31. Robert Darden, most recently executive director o Plano, Texas-based QuEST Forum, has been named by the DCA board to the position. Kennedy has held the position o executive vice president and chie operating ocer since 1989. He will remain with DCA as a consultant. Darden has more than 25 years o international meeting management and association experience. Beore joining QuEST Forum, Darden previously held positions with the Young Presidents’ Organization and Spear One Products. He graduated rom Louisiana State University and

(From let) Dennis Kennedy, DCA president, Shepard Poole and Robert Darden.

also attended the Paul M. Herbert Law Center. Darden is a member o the American Society o Association Executives, Meeting Proessionals International and has been qualied as a Certied Meeting Planner. P lanner. DCA is a primary advocate and organization o contractors who are involved in horizontal directional drilling throughout the United States. Members work in the construction, maintenance and rehabilitation o gas distribution pipeline systems and installation o cable and telecommunication systems. El Paso Corp. Announces Partner or Ruby Pipeline Project The Ruby Pipeline got another stakeholder ater El Paso Corp. announced it has executed a binding agreement with Global Inrastructure Partners (GIP) whereby GIP will acquire a 50 percent interest in the Ruby Pipeline project. 10


“We are pleased to have Global Inrastructure Partners join us in the Ruby project,” says Jim Cleary, president o El Paso’s Western Pipelines. “We “We continue to make excellent progress on Ruby, and we look orward to it being one o the key assets in our pipeline ranchise.” Under the terms o the agreement, announced July 27, GIP will invest up to $700 million in the project, which represents a 50 percent equity interest, in the ollowing three major areas: • $405 million in the form of a 7 percent secured note that will be drawn upon to reimburse one hal o El Paso’s costs to date, as well as to und one hal o the uture costs o developing the project. The note will be exchanged or a convertible preerred equity interest in Ruby at the close o construction nancing. • $145 million contributed as a preferred equity interest in the Cheyenne Plains Pipeline that will be exchanged or a convertible preerred equity interest in Ruby at nal project completion. • Depending on the amount of external nancing that is raised, GIP could invest up to an additional $150 million as a convertible preerred equity interest in Ruby. The Ruby Pipeline project is a 675-mile, 42-in. interstate natural gas pipeline that will access growing sources o supply rom multiple Rockies’ basins and make those supplies available to Caliornia, Nevada and the Pacic Northwest region. Ruby has led with the Federal Energy Regulatory Commission (FERC) to have an initial design capacity o up to 1.5 billion cubic eet (Bc) per day. El Paso will be responsible or the construction o 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 benets. Conversely, El Paso will absorb any cost overruns. In January, El Paso led an application with FERC or a certicate o public convenience and necessity, under Section 7(c) o the Natural Gas Act, to construct and operate the Ruby Pipeline. In June, FERC issued a Drat Environmental Impact Statement (DEIS), which was consistent with Ruby’s construction plan and schedule. Ruby anticipates timely issuance o FERC’s Final Environmental Impact Statement in October. Assuming FERC approval in the rst quarter o 2010, construction would begin in the second quarter o 2010 with the pipeline completed in time or 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 inrastructure 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 t, or nearly our miles, o main lines in an area centering on W. Thornton Street, with work also scheduled or the ollowing streets: W. Bartges Street, Campbell Street, Raymond Street, Howe Street, Scheck Street, Russell Avenue, W. Bowery Street, Kieer Court, Norka Street and Norka Court, Moell er Avenue, Lane Street, Schumacher Avenue, Snyder Street, Haynes Street, Nathan Street and Rhodes Avenue. The project is part o the company’s planned 25-year program to replace 4,100 miles, or nearly 20 percent, o its napipelines.com

21,000-mile pipeline system, increasing saety and reliability. The pipeline replacement program could generate $4.4 billion in total regional economic activity over the next 25 years, creating or supporting 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.

burg, Russia. The longest leg was 12,300 nautical miles rom Qingdao, China, to Rio de Janeiro, Brazil. Some o the other ports the race visited included Cape Town, Singapore, and Stockholm. Late April to mid-May the Volvo Ocean Race made its rst ever stop-over in Boston. Volvo took the opportunity to host a gathering o contractors to see the in-port races. Joe Purpura o Midwestern Contractors and his wie 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 o 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 October 2011, again rom Alicante.

Volvo Ocean Race Attracts Oil and Gas Contractors The Volvo Ocean Race is a nine-month event o 70-t sailboats that covers over 37,000 nautical miles. The race traverses some o the world’s most treacherous seas. It is an exceptional test o sailing prowess and human endeavor, which has been built on the spirit o great seaarers.

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

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

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

The 2008-2009 race covered 11 ports in 11 countries, eaturing eight boats. The race started Oct. 4, 2008, in Alicante, Spain, and nished June 16 in St. Petersnapipelines.com

For more information go to napipelines.com/info SEPTEMBER/OCTOBER 2009 | North American Pipelines

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North American Pipelines Project Roundup The ollowing oil and gas pipeline projects have been announced. Projects are in order o approximate starting date. U.S. Pipeline Inc. has been awarded a contract by Boardwalk Pipeline Partners to install two 1,600 t horizontal directional drills o 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 o 24-in. pipeline right-o-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 o 24-in. pipe in Rio Blanco County, County, Colo. Headquarters 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 Pipeline/Transco or pipeline investigation investigation on mainline “D” o 42-in. pipeline in Fairax 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. or directional pipeline drilling o 1,749 t o 42-in. pipeline in Muskingum County, County, Ohio. Headquarters is on the jobsite. The superintendent is Jimmie Johnson. Approximate start date: July 1. Blackwell Enterprises Inc. has been awarded a contract by Henkels & McCoy Inc. or right-o-way right-o-way restoration and maintenance o approximately 60 miles o 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 fve miles o 16-in. and 4,800 t o 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 Je Waggoner. Approximate start date: July 6. Laney Inc. has been awarded a contract by Sheehan Pipe Line Construction Co. or directional drilling on 50 miles o 30-in. pipeline in Audrain, Montgomery and Lincoln counties, Mo. Headquarters is Troy, Mo. The superintendent is Grady Keller. Approximate start date: July 6. Snelson Companies Inc. has been awarded a contract by Williams Northwest Pipeline to relocate 10,500 t o 22-in. pipeline in Ada and Canyon 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 o 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) or 46 miles o 20-in. pipeline in LaSalle, Grundy and Will counties, Ill. Headquarters is Morris, Ill. The superintendent is Russell Fischer. Approximate start date: July 13. Snelson Companies Inc. has been awarded a contract by Puget Sound Energy or 33,000 t o 16-in. pipeline in King County, Wash. The superintendent is Je Elliot. Approximate start date: unknown (announced July 13). Snelson Companies Inc. has been awarded a contract by Avista Corp. to install 3.2 miles o 12-in. pipeline in Spokane County, Wash. The superintendent is Cli Nielson. Approximate Approximate start date: July 13. S T Pipeline Inc. has been awarded a contract by NiSource/Columbia Transmission Transmission or slip repair and pipe replacement o 100 t o 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 Storage Inc. or installation o our miles o 24-in. pipeline in Butte County, Cali. Headquarters is Gridley, Cali. The superintendent is David Carlile. Approximate start date: July 15.

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Listings Contributed by

U.S. Pipeline Inc. has been awarded a contract by Williams-Transco or installation o 1.2 miles o 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 o 12-in. pipeline and a compressor station in Bradord, Lycoming and Tioga counties, Pa. Headquarters is Canton, Pa. The superintendent is Ron Michalkovich. Approximate Approximate start date: July 16. Indianhead Pipeline Services has been awarded a contract by Michels Corp., U.S. Pipeline Inc. and Precision Pipeline LLC or the Enbridge Alberta Clipper and Southern Lights Project to manuacture approximately 17,500 pieces o 36-in. pipeline and 171,000 t o 20-in. pipeline in Kittson, Marshall, Pennington, Red Lake, Mahnomen, Clearwater, Beltrami, Hubbard, Cass, Itasca, St. Cloud and Carlton counties, Minn. Headquarters 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 t o 16-in. natural gas pipeline in Montgomery County, 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 t o 36-in. pipe torch cuts in Beltrami County, Minn. Headquarters is Bemidji, Minn. The superintendent is Jim Jennings. Approximate 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 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 t o 30-in. pipe in Lincoln County, Wyo. The superintendent is Johnny Denton. Approximate Approximate start date: July 24. Apex Pipeline Services Inc. has been awarded a contract by Columbia Gas Transmission Inc. or the ollowing: 1) removal and replacement o approximately 400 t o 20-in. s teel pipe in Floyd County, Ky.; headquarters is Dana, Ky.; the superintendent is Ransord Vickers; and 2) the removal o approximately 1,200 t o 12-in. pipeline and replace with approximately 1,200 t o 8-in. steel gas line in Newport News, Va, and installation o launcher, receiver, valve assemblies and induction bends in Isle o 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. or right-o-way restoration o approximately 30 miles o 42-in. pipeline in Fairfeld, 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 Transcontinental Gas Pipe Line to install 3.99 miles o 42-in. pipeline in Somerset County, N.J. Headquarters is Neshanic, N.J. The superintendent is George Tisdale. Approximate Approximate start date: July 27. PipeSak Inc. has been awarded a contract by Enbridge to supply 130 miles o 20-in. and 36-in. abrication weights or the Alberta Clipper Project in Kittson, Marshall, Polk, Red Lake and Clearwater counties, Minn. Headquarters is Superior, Wis. The superintendent is Ryan Connors. Approximate 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 Springfeld, Ill. The superintendent is Frank Ayers. Approximate start date: July 29.

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Appalachian Pipeline Contractors LLP has been awarded a contract by Piedmont Natural Gas Co. to install 9.08 miles o 12-in. pipeline in Sumner County, Tenn. Headquarters is Gallatin, Tenn. The superintendent is Anthony Campbell. Approximate start date: Aug. 3. Snelson Companies Inc. has been awarded a contract by Kinder Morgan Energy Partners LP to install a 10-in. line stopple and replace a 10-in. motor-operated valve in Storey County, Nev. 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 Bedord and Fulton counties, Pa. The superintendent is Nick Walters. Approximate Approximate start date: Aug. 10.

ing o approximately 102 miles o 20-in. and 36-in. pipeline in Itasca, St. Louis and Carlton counties, Minn., and Douglas County, County, Wis. The superintendent is Steve Lindenberg. Approximate Approximate start date: Aug. 17. U.S. Pipeline Inc. has been awarded a contract by Enbridge Energy or construction o 87 miles o 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. or the stringing o two spreads o approximately 180 miles o 20-in. and 36-in. pipeline or the Alberta Clipper and Southern Lights Project in Clearwater, 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 bkramer@ at bkramer@ benjaminmedia.com with the subject heading “Project Roundup.”

Laney Inc. has been awarded a contract by Sheehan Pipe Line Construction Co. or road boring on the 36-in. and 42-in. Elba Express Pipeline in Chatham, Warren, McDufe, Wilkes, Elbert and Hart counties, Ga. Headquarters is Waynesboro, Ga. The superintendent is Randy Cassell. Approximate Approximate start date: Aug. 10. Miller Pipeline Corp. has been awarded a contract by Teppco or maintenance work in Scott County, Mo. The superintendent is Greg Frazier. Approximate Approximate start date: Aug. 10. Northern Clearing Inc. has been awarded a contract by Michels Corp. or right-o-way clearing o 28 miles o 36-in. pipeline in Pembina County, N.D., and 108 miles o 36-in. pipeline in Kittson, Marshall, Pennington, Red Lake, Polk and Clearwater counties, Minn. The superintendent is Jim Junker. Approximate Approximate start date: Aug. 10. Northern Clearing Inc. has been awarded a contract by U.S. Pipeline Inc. or right-o-way clearing o 90 miles o 20-in. pipeline and 90 miles o 36-in. pipeline in Clearwater, Bemidji, Hubbard and Cass counties, Minn. The superintendent is Jim Junker. Approximate Approximate start date: Aug. 10. BigInch Fabricators and Construction Inc. has been awarded a contract by Panhandle Eastern Pipeline to hydrostatic test 18 miles o 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 awarded a contract by the U.S. Army Corps o Engineers to install 3.5 miles o 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 lit and lay 2,000 t o 20-in. pipeline, relocate a 20-in. launcher and two meter stations in Nobel and Monroe counties, Ohio. Headquarters is Shadyside, Ohio. The superintendent is Brian Smith. Approximate start date: Aug. 17. InterCon Construction Inc. has been awarded a contract by Precision Pipeline LLC to install two crossings o 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 contract by Vectren Corp. to install fve miles o 16-in. pipeline in Knox County, Ind. The superintendent is Greg Frazier. Approximate start date: Aug. 17. Northern Clearing Inc. has been awarded a contract by Precision Pipeline LLC or right-o-way clear-


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SEPTEMBER/OCTOBER 2009 | North American Pipelines

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Market Watch Falling Demand Now, Increasing Later Global Economic Conditions Have Led to Oil and Gas Market Decline Poor economic conditions have led to worldwide decline in oil and natural gas consumption and will lead to an overall decline in use or 2009. However, the U.S. Energy Inormation Administration (EIA) projects that consumption 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 ell rom $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 o WTI crude oil to stay roughly at at an average o $70 per barrel i n the ourth quarter o 2009, an increase o about $27 compared with the average or the frst quarter o the year. The WTI spot price is projected to rise slowly as economic conditions improve, to an average o about $72 per barrel in 2010. Global Crude Oil and Liquid Fuels

The oil market continues to be defned by the tension between optimism over the perceived recovery o the global economy on the one hand and persistently weak global consumption o crude oil and other liquid uels on the other. There are indications that oil consumption could be recovering outside o the Organization or Economic Cooperation and Development (OECD). However, this has been somewhat oset by an erosion o compliance with production cuts announced by the Organization o the Petroleum Exporting Countries (OPEC).

The rising level o 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 or fve straight quarters or the frst time since 1979-1980, and they are projected to increase again in the third quarter o this year. As a result, the uture level o oil prices will largely depend upon the timing and pace o 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 o 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 frst hal o 2009 compared with year-earlier levels. 14


The current macroeconomic outlook assumes that the world economy begins to recover slightly at the end o this year, led by Asia. As a result, EIA expects world oil consumption to grow year-over-year in the ourth quarter o 2009, the frst such growth in fve quarters. Overall, global oil consumption is projected to decline by 1.7 million bb l/d in 2009, then rise by 940,000 bbl/d in 2010. Total non-OPEC crude oil and other liquid uels supply is expected to rise by 410,000 bbl/d in 2009 and by 160,000 bbl/d in 2010. Over the orecast period, higher output rom Brazil, the United States and the ormer Soviet Union is expected to oset alling production in Mexico and the North Sea. There is some indication that the chro nic delays that have plagued non-OPEC projects have begun to ease. However, many projects are still moving orward at a slower pace to either deer necessary investment decisions or take advantage o urther reductions in procurement costs. EIA projects WTI crude oil prices, which averaged $100 per barrel in 2008, to average $60 per barrel in 2009 beore recovering to an average o about $72 per barrel in 2010. Energy price movements are highly uncertain as seen over the last month in the aorementioned swing in the WTI crude oil spot price. U.S. Crude Oil and Liquid Fuels

EIA projects total U.S. consumption o liquid uels and other petroleum products to decrease by 790,000 bbl/d (4.1 percent) in 2009. This includes projected declines o 320,000 bbl/d (8.2 percent) in distillate uel consumption and 150,000 bbl/d (9.8 percent) in jet uel consumption. Motor gasoline consumption is projected to decline slightly in 2009 as the positive impact o the signifcant price decline compared with last summer osets some o the negative impact o the economic downturn. The modest economic recovery projected or 2010 is expected to contribute to a 280,000-bbl/d (1.5 percent) increase in total liquid uels consumption, led by increases o 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 rom 5.06 million bbl/d in 2007. U.S. production is expected to increase to an average o 5.22 million bbl/d in 2009 and 5.25 million bbl/d in 2010. Oil production rom the Thunder Horse, Tahiti, Shenzi and Atlantis Federal oshore felds is expected to account or about 14 percent o lower-48 crude oil production by the ourth quarter o 2010. In early August, the National Oceanic and Atmospheric Administration (NOAA) lowered its outlook or an aboveaverage hurricane season rom a 25-percent chance in their May outlook to a 10-percent chance in their 2009 Atlantic Hurricane Season Outlook Update. Update. This revision, combined with no reported shut-in production during June and July, reduces EIA’s original seasonal estimates o crude oil and natural gas production outages by about one-hal. However, signifcant uncertainty always remains as any one storm can cause widespread disruptions and damage. napipelines.com

U.S. Natural Gas Outlook

EIA 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 o economic stability, the severe contraction during the frst hal o the year contributed to an estimated 3.8 percent decline in daily average natural gas consumption compared with consumption during the frst hal o 2008. The decline in natural gas use during this period was driven principally by a drop in industrial activity, reected in the 17 percent year-over-year decline in the natural-gasweighted industrial production index during the frst hal o the year. Natural gas prices have declined to the point where they now compete against coal or a share o the baseload generation in the electric electr ic power sector. Consequently, natural gas consumption in the electric power sector is expected to increase by 2 percent in 2009. The assumption o improved economic conditions in 2010 is the primary actor leading to projected demand increases in the residential, commercial and industrial sectors next year. However, the expectation o 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 at in 2009 and decrease by 2.8 percent in 2010. The outlook or production is conditioned on the current low price environment that has brought about a signifcant pullback in drilling activities. According to Baker-Hughes, total working natural gas rigs have now declined by 58 percent since September 2008. Data or March through May 2009 suggest that the decline in drilling has begun to reduce marketed production in the lower-48 non-Gul o Mexico region. While the monthly average rate o decline was about 0.3 billion cubic eet per day (Bc/d) during those three months, production is expected to decrease at a aster pace through the remainder o 2009 with some curtailments rom existing production expected. Gul o Mexico production is expected to increase by 3.3 percent in 2009 in part because recovery rom damage sustained during last year’s hurricane season and the lower expected incidence o hurricane activity this year. Although drilling activity is expected to pick up early next year, the lagged aect o 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 orecast. EIA expects U.S. liquefed natural gas (LNG) imports to increase to about 500 Bc in 2009, up rom 352 Bc in 2008, and rise to about 740 Bc in 2010. While increasing over 2008 levels, U.S. LNG import growth this year has been constrained because o increased LNG demand in Europe and delays and maintenance to new and existing LNG liqueaction capacity. 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 pipeline imports increasing in the months ahead as Canadian storage acilities are topped o. An increase in U.S. natural gas imports would likely be balanced by larger-than-expected declines in domestic natural gas production. On July 31, working natural gas in storage in the United States was 3,089 Bc. Current inventories are now 496 Bc above the fve-year average (2004–2008) and 580 Bc above the napipelines.com

level during the corresponding period last year. Total working natural gas stocks eclipsed 3,000 Bc during the week ending July 24. This is the earliest day on record that inventories have exceeded 3,000 Bc 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 Bc at the end o October, 235 Bc above the previous record o 3,565 Bc reported at the end o October 2007. The Henry Hub spot price or natural gas averaged $3.50 per 1,000 cubic eet (Mc) in July, $0.41 per Mc below the average spot price in June. Prices remain low as the drop in drilling activity thus ar has ailed to bring about the production decline necessary to slow the natural gas inventory build. Resilient production, high storage levels, and the potential or increases in both LNG and pipeline natural gas imports suggest that prices may all below current projections beore space-heating demand picks up this winter and economic conditions improve. The EIA expects the Henry Hub spot price to increase rom an average $3.92 per Mc in 2009 to $5.48 per Mc in 2010 because o the current decline in drilling activity and projected growth in consumption next year. However, sustained cutbacks in drilling activity or stronger demand than expected could lead to even higher prices. pri ces. However, improvements in drilling technology and procedures are expected to limit price increases over the orecast period. For more Energy Inormation Administration oil and gas market orecasts, visit www.eia.doe.gov . Source: Energy Information Administration


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A Voice That Sells Ritchie Bros. Auctioneer Butch Graham Uses His Expertise to Help Oil and Gas Pipeline Proessionals Buy and Sell Equipment By Bradley Kramer

H

is voice is deep and melodious in conversation, calming in its resonance. When he’s at work, though, it sounds like a hard-driving drum solo, rattling o large fgures in quick succession, stalling or a moment to let the audience catch its place, and then the voice rattles o more numbers beore it says, “Are you done?… Last call… Sold.” Butch Graham’s voice announces the sale o another piece o construction equipment. As a senior auctioneer or Ritchie Bros. Auctioneers, his voice is his trademark. However, it is Graham’s decades o experience and expertise in the oil and gas market that led to his nickname as “the voice o the pipeline industry.”

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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 ounder Dave Ritchie, or 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 o-site. The company was established in 1958 as a small, amily-run urniture store in Kelowna, British Columbia. In 1963, the company began selling industrial equipment. napipelines.com

Graham is one o the most senior auctioneers at Ritchie Bros., says Peter Blake, CEO o the auction company. During his tenure at Ritchie Bros., Graham has worked at some o the company’s most memorable auctions, such as the auctions that ollowed the 1989 Exxon Valdez oil spill. Close to 10,000 people attended the frst 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 our days. That Exxon Valdez auction lasted fve days and included all varieties o equipment, including cranes and boats. When the auction started at 6 a.m., it was still dark.

responsibility to put my best oot orward. I always elt I was representing them.” It’s Graham’s Graham’s personal touch that has endeared him to the oil and gas pipeline industry, says Dave Douglas, manager o the Canadian Pipeline Division or Ritchie Bros. (Graham calls him “little brother,” says Douglas, who has been with Ritchie Bros. or 14 years.) “Butch is so well respected by all the contractors, and he knows them all,” Douglas says. “His outgoing personality and his honesty and integrity are what people respect. When people buy a piece o 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 contractor in the United States and many o the international contractors as well. He is also heavily involved with the industry’s trade organizations, specifcally the Distribution Contractors Association (DCA), the International Pipeline and Oshore Contractors Association (IPLOCA) and the Pipe Line Contractors Association (PLCA). Graham’s market expertise is an asset to his customers, says Tom White, president o Price Gregory Construction and who has known Graham or 28 years. “He’s a big orce in the pipeline industry,” he says. “We’ve done industry sales through him, but sometimes I use him as a sounding board or what equipment is worth and the best time to sell.” Contractors value Graham’s knowledge o equipment values and how best to market and sell it at an auction, says Pat Michels, president o Michels Corp. “His talents as an auctioneer are second to none.

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.

“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 rom the Exxon Valdez spill that another three-day auction was held in Tacoma, Wash. Graham has been an auctioneer all his lie. His ather worked in marketing livestock auctions, and his uncle, cousin and brother worked as auctioneers. His brother still runs the amily auction business. “I’ve always had good orator skills,” he says. But auctioneering isn’t just about getting up to the podium and talking ast. “Anyone can get up there and talk ast,” he says. “You have to be able to see the trends. I’m one o the remaining auctioneers around who went through the crash o 1982-1985 and saw the low times.” Graham takes pride in his equipment knowledge and building relationships. He eels that it’s his duty to know the market and equipment so he can pass the inormation along to his customers. “One thing I’ve learned about the business as a senior auctioneer and pipeline rep or Ritchie Bros. is you have to make the customer your riend because your riend will always be your customer,” Graham says. “My ace and my voice are always out there or Ritchie Bros., and it’s my napipelines.com


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

“He is very personable and sincere. He knows what’s going 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 or 20 years and considers him as a good amily riend. Graham also passes on his vast industry knowledge to his colleagues at Ritchie Bros. “Our new auctioneers look to him or 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 territory in Canada. Douglas says he tries to learn as much as he can rom the auctioneer. auctio neer. “We work hand in hand to share inormation about who is interested in buying or selling or what a piece o equipment is worth,” Douglas says. “Butch knows so many people that he just has a broader base to work rom. He has relationships that are our generations old in some cases. It’s more like me asking questio ns and him having the answers.” Love the Industry

Just as Graham has been an auctioneer all his lie, 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 riends with Erle Halliburton. “You have to love what you do,” Graham says. Throughout his decades o auctioneering or the oil and gas pipeline industry, Graham has helped raise millions o dollars through charity auctions or DCA, IPLOCA and PLCA. He has also been involved with the American Pipeline Contractors Association (ormerly, the Rocky Mountain Contractors Protective Association). 18


Yes, Graham has used his auctioneering skills to help those associations, but he doesn’t expect credit. He isn’t there or his own laurels, but as a representative o Ritchie Bros. “Without Ritchie Bros., there would be no Butch But ch Graham,” he says. Graham credits Dave Ritchie or instilling these proessional ethics. “For as long as I can remember, Butch has played a very signifcant role or Ritchie Bros. in the oil and gas industry,” Blake says. “And Butch is a personality everywhere he goes — not just at your conerences. He brings his uncompromising level o integrity and amily values rom his roots in Marlow, Okla., to the world.” Blake thinks that people appreciate Graham’s “down home nature.” That appreciation shows in how the industry has awarded G raham. He was elected to IPLOCA’s IPLOCA’s board o directors or a term in 2002, 200 2, and he was made an Honorary Lietime Member o DCA. Despite what personal successes may come his way, Graham is always appreciative o those around him. He can’t do it alone. “There’s a woman in my lie who is just as much o an ambassador or Ritchie Bros. as I am,” Graham says. “My wie 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 o marriage. He says his wie helps him build strong relationships, orming a close knit community with the other wi ves in the industry. “There’s no price or 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 o 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.” napipelines.com

Good Times and Bad

In a tough economy, the unreserved auction ormat is still a popular option or both equipment buyers and sellers, sel lers, Blake says. During the current recession, Ritchie Bros. has seen a record number o bidders participating at its auctions. “A need or equipment still exists as global building and construction projects carry on,” Blake says. “Buyers are just more cautious o pricing right now given the current state o the economy. This is evident given the decline in new equipment sales over the past year and they know they can fnd good equipment they need at one o our auctions at prices they are more willing to pay.” The other side o that equation is that equipment owners are realizing that in this downturn, idle equipment is not cost-eective, Blake says. The result is many equipment owners are choosing to sell their equipment instead o 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 inrastructure, and because o that, business will go on. “The sky is not alling like people think it is,” he says. The natural gas market just came out o a boom year, but has taken a dive. Oil is still very proftable at more than $70 per barrel. What’s hurting natural gas is the price o natural gas, Graham says. “That’s why we’re not seeing much movement 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 etch

$1 million are now selling at $400,000. $400 ,000. “It’s trending down, but the bottom has not allen 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 or two to three months beorehand.” Ritchie Bros. has more than 1,000 sales reps across the world. The feld reps call on their customers to see i they are interested in selling a piece o equipment. The reps are in constant contact with their clients. Graham himsel acts as a lead sales person during the lead-up to an auction. Each auction has hundreds o consignors, Graham says. Ritchie Bros. inspects the equipment and signs a contract with the seller, and the equipment goes into one o the company’s equipment yards. Occasionally, Ritchie Bros. will do a sale o one o its sites, such as when an industry veteran retires and needs to sell a bunch o equipment at once. I needed, the Ritchie Bros. reurbishes and repaints the equipment. Then the marketing department goes to work promoting the auction. Auctions attract buyers rom 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 “it ’s my turn.” Bradley Kramer is associate editor o North American Pipelines. He can be contacted at [email protected].


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IPLOCA Convention Coins a Phrase Butch Graham has emceed the International Pipeline and Oshore Contractors Association (IPLOCA) annual conerence since 2004 ater he was elected to the board o directors in 2002, and he has helped the association raise unds during its beneft 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 o the pipeline industry.” 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 eectively be addressed by establishing an industry association. That same year the then-leaders o the industry met in Paris and established the International Pipeline Contractors Association. Originally established as a division o the U.S. Pipeline Contractors Association, the International Pipeline Contractors Association became ully independent in 1976 ater a signifcant increase in membership. In 1988, the association was extended to include those companies working oshore in the oil and gas industry, and on May 5, 1989, the International Pipeline and Oshore Contractors Association was ofcially established. The association’s headquarters were later moved to Brussels, and then in 1992 to Gent, Belgium. The Gent ofce was closed in June 2005, and the ofce was re-established in Geneva, Switzerland, where it remains today. today. The association hosts a convention every year to oster a orum where members, associate members and other guests, including delegates rom 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 Francisco. Topics or the event include onshore and oshore pipelines, construction, manpower issues, training, new technologies, saety and the environment, with special consideration or this year’s most pressing theme — current market trends. The association’s new crop Butch Graham emcees the annual IPLOCA Convention o leaders will also be elected at the convention on Sept. 18. and is a ormer member o the board o directors. Through its membership and convention, IPLOCA urthers its At one o the conventions, he was announced as mission to provide value to members or sharing ideas, engaging “the voice o the pipeline industry.” the industry and its stakeholders, acilitating business opportunities and promoting the highest standards in the pipeline industry. industry. To To that end, the association’s objectives are as ollows: •

•

•

•

•

•

•

•

•

•

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To promote, oster and develop the science and practice o constructing onshore and oshore pipelines and associated works. To make membership o the association a reasonable assurance o the skill, integrity, integrity, perormance and good aith o its members. To maintain the standards o the contracting business or onshore and oshore pipelines and associated works at the highest proessional level. To promote saety and to develop methods or the reduction and elimination o accidents and injury to contractors’ employees in the industry and all those engaged in or aected by operations and the work. To promote the protection o the environment and contribute to social, cultural and environmental development. To promote good and cooperative relationships amongst the membership o the association and between contractors, owners, operators, statutory and other organizations and the public generally. generally. To encourage efciency amongst the members, associate members and their employees. To seek correction o injurious, discriminatory or unair business methods practiced by or against the industry contractors 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 o Pipeline Industry Associations. To ollow the established Codes o Conduct set out by the industry and others with respect to working within a ree and competitive market.


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Tackling Hard Rock with HDD

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

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Georgia coal-burning power plant is in the process o converting to natural gas, requiring construction o approximately 19 miles o a new gas pipeline in Atlanta. In order to build the pipeline around the west side o the city, the utility commissioned U.S. Pipeline to lay the pipe in trenched portions o the right-o-way (ROW) and prepare horizontal directional drilling (HDD) pipe pull sections or Michels Directional Crossings. Michels had to complete the HDD crossings in areas where trenching is either not easible due to accessibility issues or not economically viable due to complex pipeline construction constraints. In April 2009, Michels began construction o 19 planned HDD crossings o 30-in. pipe through these mandated trenchless construction areas along the 19-mile pipeline stretch, drilling through a varied mix o hard rock and soil ground conditions. Michels operated up to ve o its 13 large capacity drilling rigs at any given time on this project and estimates that over six miles o the project will be directional drilled with almost 50 percent o the HDD crossings completed through rock despite extensive HDD design and construction length minimization eorts.

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The longest crossings have been drilled to lengths o approximately 3,000 t while some o the shorter crossings have been closer to 1,000 t long. Interstate 285 will be crossed three times by Michels’ HDD operations and Interstate 20 has been successully crossed at one location. Many other major highways and roadway crossings along the route are also being completed by HDD constr uction, as well as several major water bodies and wetlands including a dicult crossing o the Chattahoochie River that Michels recently completed near the t he end o July. The rock encountered so ar has been primarily granitetype, varying widely in strength, hardness and consistency depending on depth and degree o 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 o the utility to limit the lengths and depths o the crossing designs to minimize costs to the owner o drilling through longer sections o the harder rock ormations at greater depths. Prior to starting the project, the owner perormed an extensive geotechnical study o the proposed HDD design alignments. The crossings were initially designed as short and shallow as possible based on this data, among other napipelines.com

ROW constraints. However, given that the elevation o the top o the rock can vary signicantly in a short distance in this area, some o the crossing design paths had to be re-oriented once HDD pilot hole operations were initiated when the rock elevations were not encountered as anticipated with the original design. In addition to this “adjust the design as you go” methodology being employed on many o the crossings, the adaptation o HDD technology in so many conned areas where its use may have previously been thought unimaginable has required a level o coordination and communication between the owner, designer and contractors that is unprecedented unpreced ented in the HDD industry on a project o this magnitude. The ultimate objective o the HDD construction is to provide a trenchless installation o a relatively rigid (i.e., wall thickness greater than a hal-inch thick), 30-in. steel pipe underground along a geometrically smooth trajectory rom the entry to exit that allows it to bend through the bored out rock along the HDD alignment without adversely aecting the integrity o the pipe during installation and operation. In order to accomplish this, rst the HDD pilot hole geometry must be careully monitored and controlled as it is drilled along the desired design alignment. Drilling and controlling the geometric shape o the HDD alignment is technically and physically demanding, especially when drilling in and out o rock that is encountered at depth in varying locations and degrees o competency along each HDD alignment and when the crossing lengths are designed at the bare minimum, urther reducing any room or construction error. Otentimes several dierent

variations o bottom hole drilling assemblies are required just to steer the pilot hole along the designed alignment as these contrasting, “mixed-ace” conditions are encountered. 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 o HDD intersect technology on several o the crossings in order to successully complete the pilot holes within the tight constraints o the allowable design alignments. In attempting to shorten these crossings as much as possible and achieve the rigorous design tolerances, there are otentimes limited options or lengthening the crossings i the rock is encountered unexpectedly or the ormation prevents Michels rom precisely controlling the pilot hole along the desired alignment regardless o the company’s extensive inventory o varied bottom hole assemblies. This requires drilling the pilot hole rom the opposite end o the crossing and intersecting the section o hole previously drilled rom the entry side to ensure the exit hole location and desired design alignment are precisely maintained. Michels has completed more than 50 intersects on other projects, but intersecting pilot holes in solid granite can add signicant time to a crossing’s duration, so this method is only implemented ater all other options have been exhausted. The originally planned reaming parameters also required modication by Michels on some o the crossings to urther ensure the integrity o the pipe installation on several


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o 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, oten requiring months o scheduled reaming operations on the longer and harder rock crossings. To maintain specied design elements o these HDD crossings, Michels has enlarged the nal ream diameter o these types o crossings to varying degrees to acilitate successul installation. Operations above ground have also required use o 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 o 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 pipeline construction equipment movement and operation. The obstruction requires a much greater degree o proessional planning and experienced execution to ensure the saety o the workers even or the simplest o operations. This ROW also traverses densely populated urban, commercial and residential areas and is considered extremely narrow or a 30-in. spread by pipeline construction standards. In addition to the geotechnical challenges and conning 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 debris, proximity o residences to the HDD work areas, heavy trac, high rates o crime and discontinuities in the ROW alignment. Michels has constantly adapted its HDD operations 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 o the HDD crossings within the allowable surace and subsurace constraints aced at every HDD location along the t he ROW. ROW. The aboveground work space limitations also have hampered another key element to the success o any HDD crossing: maximizing the length o 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 or long periods incurred during tie-in welds o multiple sections. Unortunately, many o the crossings completed by Michels on the Atlanta project have not had the luxury o sucient work space, which must typically be made available in order to accommodate stringing the pull sections in continuous lengths. In act most o 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 ve tie-in welds during the HDD installations to allow Michels to successully complete what have on several occasions been multi-day pullback operations even or relatively short crossings. In addition, many o the locations have had a combination o severe HDD design exit angles and steep changes in the topography on the ROW adjacent to the exit locations. This condition has required implementation o unique pipe handling measures and deployment o additional specialized equipment by U.S. Pipeline to ensure the pipe does not buckle or strain out o control above ground in the narrow 24


ROW as workers guide it into the exit hole or Michels to pull it underground and through the crossing. The original construction schedule or the pipeline, including all o the HDD crossings, spanned over a year to allow sucient time to complete all o the anticipated rock crossings and challenging pipeline work. Local permit issues also prevented the construction rom proceeding continuously rom one end to the other, requiring numerous gaps that have inhibited optimal HDD and pipeline spread procession. Representatives rom Michels, U.S. Pipeline, the owner’s engineer and the owner met oten and prepared or the work well in advance o the scheduled start to identiy and eliminate known sources o potential scheduling conficts. The HDD crossings were mutually designed based on the best available pre-construction inormation to acilitate minimum lengths within conned work space and geometrical constraint limitations, otentimes considered barely within the realm o easible HDD construction methodology. All o the parties continue to coordinate design and construction eorts to overcome daily changes to the planned operations to maintain productive orward progress on this extremely complex project.

Workers aced many challenges during the pipe installation, including operating in a confned right-o-way, which made drilling and pullback difcult.

Michels began preparing or the HDD work our months in advance to ensure sucient resources would be available to tackle the large quantity o rock drilling and reaming that would be required in a relatively short period o time compared to typical projects where one or two rock crossings might be completed in a similar time rame. 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 eciently overcome the varied conditions encountered in order to stay ahead o the demanding schedule. Over hal o the crossings have been completed as o press time with our rigs still grinding through the rock daily under Atlanta’s west side ensuring that the pipeline will be completed and ready or use ahead o schedule. Tim McGuire is vice president o Michels Directional Crossings, a division o Michels Corp. based in Brownsville, Wis. napipelines.com

Drilling Through Water HDD Makes Natural Gas Pipeline Project Possible

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10-mile pipeline that will connect the north and south sides o 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 or HDD projects, industry experts say. The project’s onsite work began in May 2008 and is scheduled or completion in November 2009, wit h the nal land-to-water shore approach completed and tie-ins o the 24-in. steel product pipe now under way. At the heart o the project were seven HDD crossings completed by Mears Group Inc. working closely with the prime contractor, Weeks Weeks Marine Inc. O those seven crossings, one was a record length 7,357t 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-t bore spanning the 53 t deep Newport News shipping channel, one o 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 waterways was the only practical way to complete the marine crossings since governmental agencies would not grant permits or techniques such as open-cut dredging due to environmental and shipping concerns. “When you look at all the environmental [and] shipping concerns, we probably could not have successully 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 o great interest to t hose in the industry.” ind ustry.” Flora says the project’s original design called or trenching across the majority o the harbor, but that plan was revised ater entities such as the Army Corps o Engineers ind icated that permitting would not be possible. Instead, Virginia Natural Gas looked to HDD techniques to cross the marine sections o the project, areas that include environmentally sensitive areas like clam sanctuaries and oyster beds and shipping trac that includes U.S. Navy ships that use the ueling station on Craney Island. Flora says that by using HDD techniques, the amount o material needed to be trenched decreased by about twothirds the original planned quantity. “It was a pretty signicant amount,” he says. The marine environment created unique hurdles or the contractors to overcome: salt water that corroded equipment, strong tides and currents, storms and sonar equipment rom passing ships and submarines that momentarily ooled with steering readings. To combat against the conditions, Weeks Marine customized 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 ront o the barges that helped guide the pipe rom the drill rig to the harbor foor. napipelines.com

By Stephen Tait

On the water-to-water crossings, Mears’ 500,000-lb drill rig sat on a 350 by 38-t barge with a our-point mooring system, a 250-ton capacity anchor winch and a 230-ton capacity crane. Next to that was a similarly large barge holding more than 700,000 gallons o resh water or 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 or 1 million lbs to anchor the barge, thereore counteracting the orce o the Mears rig. The innovative use o a tension clamp on the drill string by Mears, together with the anchor system, stabilized the barge to perection. “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 or both the river and harbor crossings, the contractors also outtted a mobile coil barge that foated on the surace above the path o the 9 7/8-in. drilling bit while Mears bored the pilot hole. The coil barge replaced Mears’ traditional method o placing wires on the


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out,” Flora says. The connection o the pipeline will seabed to create a triangulation that enabled the steering increase the company’s capacity by 100,000 dekathtechnician to track the precise location o the drill. erms. A dekatherm is the equivalent o 1,000 cu t o Even then the team encountered a hurdle. When borgas. Flora says a typical house in Virginia on a cold ing the channel crossing, the stringent regulations did not day uses about 65 cu t o gas per hour. The extra gas allow or the coil barge to be in the shipping lanes, orcing “will enhance our ability to grow our system or the Eisenhauer and Vidomski to drill blindly. The pair say they next decade,” Flora says. relied on the inormation they had acquired, but mostly used their combined decades o experience in the eld to • Lastly, the project will allow Virginia Natural Gas to take advantage o commodity prices and get the best drill the hole. price or its customers, Flora says. The cost o gas is 75 “You’ve got to rely on your gut library,” Eisenhauer says, percent o a customer’s reerring to the experience bill, he says, so the lower built over a career. “We were the price that the comable to hit accurately where pany can get, the better we had to hit.” price will be passed on Vidomski adds, “That is the consumer co nsumer.. basically just trusting what inormation we had. The bore Flora says there were only was right on.” two or three companies with Dr. Samuel Ariaratnam, the ability to complete the a proessor at Arizona State HDD portion o the project. University whose research Palmer says, “Many people ocuses on HDD, says the didn’t go or the bid because water-to-water drills Mears it was a big challenge.” completed on the project are Mears, however, took on pretty rare. “There are only the challenge. The compaa limited number o company nished the seven HDD nies that have the expertise crossings, the most recent set to perorm these types o o bores crossed under Hampprojects,” he says. “They are ton Roads and included three certainly not your run-owater-to-water crossings and the-mill type projects.” two shore approaches. In all, Ariaratnam, who is the coMears Group and Weeks Marine combined eorts to connect two gas Mears drilled 15,439 t, spanauthor o the book Horizontal lines in Virginia. O seven total HDD crossings, one was a record length ning the distance between Directional Drilling Good Prac7,357-t crossing beneath the Elizabeth River and three were rare watertices Guidelines, says HDD Craney Island and Newport to-water drills under Hampton Roads Harbor. News, where the nal shore continues to become more approach was at Anderson Park. popular because the technology makes sense. “From an On the rst Hampton Roads bore, the 3,004-t Craney economic and denitely rom an environmental perspecIsland shore approach, the drill crew started drilling on tive, HDD is certainly the way to go on these types o Aug. 18, 2008. The product pipe was pulled through on applications,” he says. “You are pretty much eliminating Sept. 30, 2008. any disturbance to the ecosystem.” The second bore started Oct. 25, 2008, and marked the The proessor says such projects will open the door or rst water-to-water crossing or this project. Product pipe more use o HDD drilling practices. “These landmark type or the 3,547-t Anchorage Crossing was pulled through on projects are really what help to push the utilization o Jan. 9, 2009. HDD,” he says. Next was the Middleground Beyond the intricacies o Crossing, a bore o 2,942 t and HDD, the project also comalso a water-to-water crossing. pletes a practical purpose: Read an expanded version o “Drilling Mears used a gyroscope mechIt makes possible or Virginia Through Water” at North American Pipelines’ anism to navigate the bore. Natural Gas, a subsidiary o online home, www.napipelines.com. The gyroscope uses accurate AGL Resources, to reach more sensors to establish measurecustomers and increase its ments relative to true north and is not aected by magnetic ability to provide consistent service to customers in the intererence. The subterranean crossing started Jan. 19 and Norolk/Newport News area. ended a month later. Flora says the project helps the gas company achieve The 3,003-t crossing under the busy Newport News Shipping three primary goals: Channel started Feb. 25 and ended March 31. It was the third • First, it increases reliability, since the pipeline will and nal water-to-water crossing or Mears on this project. connect two previously separated sources o natuMears nished the Anderson Park shore approach, a ral gas. Right now, the north and south pipelines are land-to-barge drill set up next to a small baseball eld in served by dierent natural gas providers, but connectNewport News. The project started April 8 and nished ing the pipe will give a redundancy o supply to enApril 29, spanning 2,943 t. The bore completed the HDD sure customers will still have power even i one service crossings or the project. encounters trouble. • It allows Virginia Natural Gas to handle a grow Stephen Tait Tait is a ree-lance writer in Port Huron, Mich. ing customer base. “Capacity wise, we are tapped

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Delivering Pipelines by Air Lifting Pipe with Vacuum Technology By Leanne Butkovic

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piece o pipe, through its stages o lie, needs to be moved rom boat to barge. From there, it needs to go rom shipyard to stringing trucks and, eventually, into the ground. To get rom point A to point B to point C to its fnal resting place, it very obviously needs to be lited. There are liting techniques o all sorts, rom chains, swings, straps, hooks and… vacuums? It may appear as oreign to some, but vacuums oer one o the easiest, most efcient and, most importantly, saest on-site liting techniques to date. Tulsa, Okla.based vacuum liting originator Vacuworx is just one o several companies that oer this technology to contractors. Though vacuum liting has been used or decades in glass plants, heavy manuacturing and distribution acility jobs, Vacuworx owner Bill Solomon developed the frst vacuum liting technology or sel-contained high capacity in-feld applications 10 years ago when he realized that there had to be a better and saer way to lit pipe. Since then, Vacuworx’s growth has blossomed with an increasing popularity o vacuum liting due to its ease, efciency and low-risk actor. Shawn Lowman, director o sales and marketing or Vacuworx, explains the vacuum liting process o the Vaculit: “It only takes one person to operate it rom the saety o the cab o the host machine. It runs on a closed requency wireless remote. That’s about as easy as you could get, I would say.” Though ostensibly simple, the inner workings o the Vaculit technology are a bit more complex, yet intuitive. It all starts with the vacuum itsel. 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 lit any type o pipe. The large beam structure on the machine serves as a vacuum reservoir to maintain its strong hold o a constant 28.94 Hg (98 kpa) on the pipe, even i the liter shuts down in the midd le o 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 ail, typically your problem is going to be getting it to let go o o  the pipe,” Lowman says. “Most incidents o 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 saety eature. When the machine is starting, an alarm goes o notiying the operator and anyone nearby that it is in low vacuum and that it isn’t sae to lit. The alarm automatically turns o once the vacuum pressure is at an operable level. The Vacuworx machine requires maintenance that is common to any other piece o equipment. The owner’s manual checklist should be gone over prior to any start o a shit. Fluids must be checked at regular intervals. A flter that serves as a sieve or dirty air entering the vacuum is located at the mouth o the vacuum and must also be checked and replaced regularly, depending on jobsite conditions. I the working circumstances are dusty, the operator should check on it nearly every shit. I the area is more damp, then the flter may not need to be checked or replaced or several weeks. The Vaculit will sufce with traditional flters flter s meeting the warranty’s specifcations, but the company oers an inexpensive high micron flter that they recommend customers use or the best possible lit. So Easy, Your Kids Can Do It

Saety is arguably the most important actor in a job well done. Whenever a heavy load is suspended, recommended precautions must always be ol lowed. Vacuums oer one o the saest and least risky liting technologies available. You can mention the vacuum alarm, the closed vacuum valve and the tooling’s reservoir, but the cornerstone o saety in the Vaculit machine is its minimal need or a large crew. “It’s a one-man show, and the operator is not in harm’s way,” way,” Lowman says. One crewmember manning the vacuum sits in the cab o the excavator. Since there is nothing to attach or wrap around the pipe, there is no need or people to be standing anywhere near the pipe being hauled, which removes a majority o the risk in liting 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 sae the vacuum liting technology actually is. The stars o the video? His, the owner’s and the sales representative’s daughters. Reciting their well-rehearsed lines in turn, the cast o children works through the saety concerns o liting with chains and discovers saer ways o ‘Vacunomics’ by way o a visit rom a curiously short OSHA inspector (they operate the machines themselves too). Tell me what parent in their right mind would purposely place their child near heavy machinery and large pieces o pipe unless they were absolutely certain that they would be sae? Now that is confdence in vacuum power. SEPTEMBER/OCTOBER 2009 | North American Pipelines

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With all o its saety eatures and other benefts, it may seem conounding why some people haven’t considered vacuum liting. “Our product is difcult or people to get their head around. Can vacuum be that powerul? In realit y, it’s it’s one o the strongest orces in nature,” Lowman says. “A lot o the old time pipeline guys will look at it and say, ‘Oh my gosh, I wouldn’t lit 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 liting inevitable over the next 10 years since vacuum liting cuts job times and costs and insurance expenses. Especially in the energy sector, companies have reduced insurance ees by choosing vacuum liting over other techniques. Contractors have reported back to Vacuworx about their reduction in insurance costs because their teams are out o the way o any potential alling pipes. Not only are external costs slashed, but productivity increases exponentially even with a smaller crew working the feld. “We increase the load cycle anywhere rom seven to 12 times as ast as traditional methods and can do that with less people,” Lowman says. “That’s a huge savings.”

Growth Factor

Vacuum liting technology seems perpetually growing with no end in sight. But as a sae, efcient and cost-eective method or liting 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 o companies are struggling. We can certainly say that we’ve been able to hold our own because we aord contractors a product that increases their productivity and makes their jobsite saer,” he says. “When it gets tough out there, contractors start looking or better and more efcient ways to do things. They fnd us.” As ar as the industry as a whole, he adds, 10 years or less rom now, contractors won’t be able to move pipe without using vacuum liting. Last year was an especially big year or vacuum liting as more and more people were coming around to the idea o vacuum technology. Still, competition exists when you have more than one bidder or a contracting job.

Vacuums in Energy

Pipe liting is imperative in the energy sector, as Vacuworx thrives in the oil and gas industry. industr y. “You “You have to have a way to get the energy source, whether that’s gas or crude oil, rom point A to point B,” Lowman says. “To get it there, you have to have a pipeline. To efciently build a pipeline, you need vacuum liting.” Aside rom the oil and gas market, Vacuworx has reached out to municipal utilities, including water and sanitary sewers, and the plate steel business. Using vacuum liting allows or all o the necessary pipes to be lited with ease, rom concrete, steel, HDPE, fberglass, ductile iron, plastic, you name it, with any kind o coating, rom 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 or inconsistencies and unevenness in the pipe and must be replaced every couple hundred hours, all o 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 itsel because our equipment does not hurt the integrity o the coating in any way.” It’s a valid point worth mentioning since a scratched pipe coating can be costly now and in the uture. Some companies have even gone so ar as to write into their contracts that only vacuum liting will be used on their jobsites simply because o coating issues. Methods aside rom vacuum liting damage pipe coatings, which leave lasting 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 oten ail points in the pipe long ater they have been buried. “The U.S. Department o Transportation was doing fve-year dig up inspections and fnding ailures rom where pipe was marred up rom chains,” L owman says. Those fveyear inspections were what sparked current talks between Vacuworx and the Department o Transportation about uture regulations regarding the use o vacuum liting rom inception to burial to avoid ruined pipe coating debacles in the uture. 30


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. available.

“Where our part becomes very integral in that is i they’re using vacuum liting 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 liting,” Lowman says. The contractor may get a reduction in insurance costs because there are ewer employees in harm’s way. While the vacuum itsel isn’t necessarily inexpensive, the benefts it allows you to reap save money in the long run. The company oers, in its own words, the lowest cost o ownership and has contractors report back to them that the Vaculit pays or itsel on its frst use. “I don’t know why there isn’t anyone still not using vacuum,” Lowman says. “It’s much aster, it’s much saer and it impacts your bottom line heavily.” Leanne Butkovic is an editorial intern for North American Pipelines. napipelines.com

o f n i / m o c . s e n i l e p i p a n

o t o g n o i t a m r o f n i e r o m r o F

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

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he Federal Energy Regulatory Commission (FERC) is the primary permitting agency or the oil and gas market in the United States. The commission is in charge o approving the construction o natural gas pipelines and storage acilities, regulating the price o  transporting oil and gas through transmission lines and enorcing the marketplace. Je Wright, director o energy projects or FERC, spoke with North American Pipelines about how this process works and how the trends o the oil and gas market aect the commission’s duties. Among FERC’s responsibilities is the siting and approval o natural gas pipelines in the interest o commerce, import and export acilities and connections between the United States and Canada or Mexico. Wright estimates that there are close to 215,000 miles o pipeline and 3.8 billion cubic eet (Bc) o natural gas storage under FERC jurisdiction. Oil pipeline construction approval alls under each state’s laws, but FERC sets the wholesale rates or oil and gas (and derivatives) transmission, including U.S.-Canada border taris, and enorces the market to make sure all entities are playing nice. Three o the commission’s stated objectives are to promote strong inrastructure, support a competitive market and enorce the market. “These are like the three legs to a stool,” Wright says. “We have to have a strong inrastructure — 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 inrastructure, but we make sure that those rates are air to the rate payer. “Finally, the enorcement aspect is to ensure that everyone plays the game correctly, according to the rules we’ve established.” FERC does not set the price o the end-user commodity — say, the price you pay at the gas pump when you’re flling up. That price is set by the marketplace.

rest o the application. The pre-fling 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-economic 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 ederal agencies, such as the Bureau o Land Management (BLM) and the U.S. Forest Service. An operator needs approval rom FERC and BLM i the project touches ederal land. Working with so many other agencies can add signifcant time to the approval o an application, but the Energy Policy Act o 2005 named FERC as the lead agency or natural gas projects, allowing the commission to set the schedule or other agencies to ollow in order to fnish permitting. Congress approved the legislation as a measure to improve inrastructure. Miles of New Pipeline

This year has been a slow year so ar or approving natural gas pipeline projects, Wright says. However, the downturn is not all because o the recession. Instead, the market is playing catch-up to the many miles o inrastructure built (or still being built) in the last ew years. “Sometimes ater two or three big years, you see the industry take a step back,” Wright says. In 2008, the mileage o 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.

Pipeline: Approved

FERC sites natural gas pipelines under Section 7 o the Natural Gas Act, which gives authority to the commission or pipeline and storage regulation. Imports and exports all under Section 3 o the same act. FERC approves construction or physical pipeline and storage acilities and works with the Department o Energy on permitting or new or expanding natural gas pipelines. FERC also approves the costs o transmission rates rom the operator. A simplifed version o the approval process goes l ike this: The applicant — the pipeline owner — comes to FERC with an idea or a natural gas pipeline rom point A to point B, and a storage acility at point Z. FERC regulates the engineering, environmental impact, accounting and transmission rates, and then the commission makes a recommendation based on its review. The fve 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 o FERC’s application analysis is the environmental review, which must comply with the National Environmental Policy Act (NEPA), Wright Wright says. To help cut down on the application approval timerame, FERC oers a pre-fle option whereby the applicant can come in beore fling an ofcial application and propose a project so that the commission can get a head start on the environmental review while the project owner compiles the napipelines.com


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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.

So ar in 2009, there have been 172 miles o pipeline approved, much o that was sited along natural gas storage acilities. 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 o 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 ater 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 o pipeline built in the last ew years. The industry is trying to get things organized.” Looking ahead, there are many projects pending, as 2,600 miles o pipeline are in i n FERC’s pre-fling stages. “We don’t build inrastructure or today,” Wright says. “Projects are planned three to fve years out rom when the capacity is needed.” The location or the majority o the current projects under FERC’s approval is in the Southeast United St ates, primarily Texas, Alabama and Louisiana. The large shale deposits in this region — specifcally, the Haynesville and Barnett shale — are what drive these projects. It has become more economically easible to produce natural gas rom shale because o the commodity price and the improvements in technology that have helped lower production costs, Wright says. In the Mid-Atlantic region, the last leg o 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 dwars all other sources o natural gas in the t he Southeast at an estimated 1,500 trillion cubic eet. 34


In Alaska, there are two projects in pre-fling: Denali (ConocoPhillips and BP) and the Alaska Pipeline Project (TransCanada and ExxonMobil). In addition, Wright says some o the current construction takes on dierent characteristics. “You might see less miles o pipeline built, but more capacity,” he explains, as support lines and storage acilities must be built. In the Pipelines Ahead

Alternative and renewable sources o energy are major buzz topics in the news. Will eorts to improve alternative and renewable energy inrastructure hurt the oil and gas industry? Not really, Wright Wright says. “There hasn’t been enough time or alternative or renewable sources to impact the amount o 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.” I anything, natural gas will be used more heavily or electrical generation because it burns cleaner and more efciently than other sources. Wright says natural gas inrastructure will continue to grow to support alternative energy measures. Just gauging rom Wright’s overview o natural gas pipeline projects that have gone through FERC’s approval since 2000, you can see how the commission has strengthened inrastructure in the United States. Because natural gas projects have been so successul, Wright says Congress is looking at legislation to make approving electrical transmission lines more like FERC’s process or 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]. napipelines.com

November November 19– 20, 2009 2009 Doubletree Hotel Houston Intercontinental Intercontinental Airport

Many actors determine the success o an HDD project, the majority o which do not involve the actual breaking o soil. Executive decisions and planning are critical during all phases o a given project – some unique, some universal. The HDD Executive Forum addresses many o these actors on a p eer-topeer basis, sharing experiences, guidelines and market condition assessments. This is a conerence or company executives presented by company executives, aimed at the common goal o improving the bottom line. The HDD Executive Forum topics include: •

Pricing – what actors you need to consider when putting in a bid

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

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Existing Utilities – your responsibilities as a driller; what you need to know to avoid t hem;

the ramifcations o a utility strike •

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

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Legal/Environmental Permitting

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

•

Workforce Issues – training sta, sta retention, drug testing, OSHA requirements

•

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

•

Rock Drilling – how rock bores are dierent rom soil bores – what you need to know i n

putting together bids and planning or the job •

Economic Outlook – economist speaking about the market and the outlook or 2010

•

Roundtable – a panel o 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

Deconstructing Worksite Hazards The Basics of Job Safety Analysis By George Kennedy

Wouldn’t you rather prevent an accident than investigate it ater the act? That’s what Job Saety Analysis (JSA) is all about. Also known as Job Hazard Analysis (JHA) or Activity Hazard Analysis (AHA), JSA is a simple, inexpensive and eective management tool that can be used to identiy, identiy, analyze and record: 1) the steps involved in perorming a specifc job; 2) the existing or potential saety 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 o a workplace injury or illness. The benefts o Job Saety Analysis are well known: identifcation and elimination or control o hazards beore the work begins; consistent job and saety training; improved employee saety perormance; increased management awareness o saety hazards; improved labor and management cooperation; improved compliance with applicable regulations; and more accurate accident investigations.

Which Jobs Should Be Analyzed? Workers perorm many dierent tasks as part o their job classications — everything rom setting up ladders and assembling trench shields to unloading trucks and entering conned spaces. Each o these tasks involves dierent hazards that could be evaluated. So where to begin? Generally, it makes the most sense to rst select jobs that have a history o accidents, have the greatest potential or serious injury, are requently perormed, are perormed by the greatest number o employees and are new to those who will be perorming them. Over a period o time, all jobs can be evaluated. Some jobs are routine and may require a general evaluation. Others may require a more in-depth evaluation. When tools, equipment, methods, procedures or jobsites change, some JSAs may have to be revised or updated. Here are just some o the hazards that should be considered when completing a JSA: impact with a alling or fying object; penetration by sharp objects; caught in or between a stationary or moving object; alls rom an elevated work platorm, ladders or stairs; excessive liting, twisting, pushing, pulling, reaching or bending; repetitive motion; exposure to vibrating power tools, excessive noise, cold, heat, harmul levels o gases, vapors, liquids, umes or dusts; exposure to cave-ins; electrical hazards; light (optical) radiation (e.g., welding operations); and water (potential or drowning or ungal inections caused by wetness). JSA Methods There 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/oreman to meet with employees amiliar with the job being analyzed. Each group member draws upon his or her experience and visualizes the job steps and potential hazards. Sometimes photos or videos o a worker perorming the job are used to help stimulate the group members’ thought processes. They review the job rom start to nish by breaking it down into steps. The group evaluates each step to determine the hazards that could lead to an accident. When the hazards are listed, the group ocuses on the changes in the environment or procedures that can control or eliminate the hazard. The advantages o the discussion method are the many points o view considered, increased worker knowledge and increased worknapipelines.com

er involvement in company saety activities. Workers in the group are more inclined to promote and ollow the established procedures i 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 worker while he or she perorms a specic task. It is best to select an experienced employee who is willing to be observed. The observer should list each step perormed by the worker. Cameras and video cameras can be used to record the steps or a more in-depth review, but don’t let taking the photographs become distracting to the worker. (Try not to use the fash attachment.) The observer should then note the potential hazards connected with each step and try to identiy changes in the environment or work procedures that will eliminate potential accidents.


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There are several advantages to this method. The observer does not have to know how the job is perormed, 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 perormed while the work is in progress. Workers and observers (oten managers) also tend to experience improved knowledge, communications and mutual understanding.

plementing engineering controls; installing guards; changing methods; providing personal protective equipment; etc. In brie, what will make the job saer to perorm? Be specic. Say exactly what needs to be done to correct the hazard, such as “lit using your leg muscles.” Do not use general statements like “be careul.” Provide a recommendation or each hazard. Also, list recommended sae operating procedures and appropriate personal protective equipment.

Performing the Job Safety Analysis A JSA has three basic phases: 1) list the steps required to complete the job; 2) identiy the hazards associated with each step; and 3) develop solutions or controlling or eliminating the hazards.

Whatever JSA method is used the analysis should be properly documented (see www.maricopa.gov/safety/jsa_ library.asp or completed samples). Completed JSAs should be reviewed by managers, workers and the saety coordinators to ensure that nothing has been overlooked. Executive management or saety managers should approve any results that will become part o the saety program. Once approved, the JSA documents should be shared with all managers, oremen and supervisors to ensure they are aware o established company procedures or specic jobs. Eective toolbox talks can be created by selecting JSAs

Phase 1: List the job steps. Every job must be broken down into distinct steps in the order o occurrence. Document enough inormation to describe each step, but do not make the breakdown too detailed. Try to limit the number o job steps to 10 or ewer well-dened steps.

Job Saety Analysis (JSA) procedures can help limit the hazards inherent in construction worksites, such as possible impact rom a alling object like pipe.

Each step will consist o a set o 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, lit, 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 examined to discover any existing or potential hazards. When listing hazards, don’t just list the obvious hazards; list every conceivable hazard that could reasonably cause an accident. Be sure to include health hazards, even though the potential harmul eects 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 oten be minimized by: changing the sequence o steps; modiying or changing the tools, machines, equipment or materials; im38


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 Saety Analysis has proven to be an eective means o preventing accidents by nding and eliminating or controlling hazards beore the job is perormed. JSAs can be used to train/retrain employees and oremen and to give pre-job instructions. It can help managers and supervisors develop and improve job methods and procedures, not just in the area o saety, but oten in other areas like production and quality control. Its greatest value is in standardizing work methods and sae operating procedures. For urther inormation about how to complete a JSA, reer to OSHA’s Publication #3071 (www.osha.gov/Publications/ (www.osha.gov/Publications/ osha3071.html). osha3071.html). George Kennedy is vice president o saety or the National Utility Contractors Association (NUCA). napipelines.com

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

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Product Showcase Fecon FTX148 Track Carrier Fecon’s FTX148 oers a large cab or big machine comort in a compact unit to maximize an operator’s productivity. And, being the most uel ecient in its class, the FTX148 track carrier raises prot per acre. The FTX148 is equipped with a powerul Caterpillar C4.4 Engine, Fecon’s Power Management System and the proven Bull Hog Mulcher. Get almost twice the perormance o a typical skid steer and only slightly larger in size making it ideal or tight places and transporting. Both cross link suspended and rigid steel undercarriage options are available to meet the demands o your terrain and site conditions making the FTX148 perect or pipeline and right-o-way clearing. For more inormation, visit www.fecon.com . Gyro-Trac GT-25XP Gyro-Trac’s low-ground-pressure, high-speed mulching machines will clear unwanted trees and underbrush in a saer, more environmentally riendly way. You can complete the job aster, and unlike bulldozers that tear up soils, Gyro-Trac Gyro-Trac leaves soil structures intact, eliminating erosion and runo pollution. GyroTrac’s heavy-duty GT-25XP is powered by a 260-hp Tier III turbo diesel engine, powerul hydraulic pumps and the latest cutter head technology. Perormance, productivity and lack o protability will never be an issue with the GT25XP. Weighing in at 23,500 lbs, the heavy-duty mulching machine outperorms similarly sized and bigger machines. The GT-25XP chips away at hardwoods and sotwoods o almost any size, including dicult ironwood, hickory, Australian hardwoods, petried oak and more. Gyro-Trac’s Gyro-Trac’s machines eciently mulch trees and stumps right to the ground, leaving only a ne, nutrient-rich mulch behind. For more inormation, visit www.gyrotrac.net . www.gyrotrac.net . 40


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IronWolf 700B

The IronWol 700B integrates the mobility and unctionality o a purposebuilt crawler, and the versatility o the IronWol Slasher and Crusher attachments. For site excavation, clearing and mulching standing trees, site clearing and preparation, stump removal, asphalt recycling and more, the IronWol 700B stands up to the job in all types o working conditions. 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 o total ground pressure. No matter what challenge you ace, the powerul 700B creates solutions, expands capabilities and opens the door to new opportunities. For more inormation, visit www.ironwolf. com. com.

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

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Rayco T275 Site Preparation Machine The Rayco T275 is specically engineered to power both a orestry mower/mulcher and the Rayco Hydra-Stumper stump-cutter land clearing attachment. It combines high horsepower with heavy-duty hydrostatic systems essential to producing multi-unction capabilities at proessional levels o perormance. On land clearing projects, the T275 can greatly reduce the costs o extracting and hauling stumps to dump sites. The T275 eatures a carbide-tipped xed-tooth mower and Rayco’s Monster Tooth stump-cutter wheel. The comortable cab eatures heat and air conditioning, as well as positive pressure clean ltered air. For more inormation, visit www.raycomfg.com . Supertrak Inc. Custom Built Mulching Carriers Supertrak Inc. has manuactured custom carriers or the right-o-way, land clearing, vegetation management, orestry, brush-cutting/mulching, re prevention and numerous other industries and applications as an OEM with Caterpillar or more than 23 years. Supertrak has added a new line o 140-hp Custom Built Mulching Carriers Carriers to its existing ull range o mulching carriers. The SK140TR-C, SK140CTL-C, SK140STR-C and SK140RTL oer a variety o undercarriage arrangements to suit any mulching application on any terrain. The SK140RTL Rubber Tire Mulcher (pictured) is the perect right-o-way unit or mulching in both maintenance and preclearing o vegetation or the pipeline industry. The unit is small in size and transportable, but packs extreme cutting power with 140 hp and 40 gpm at 5,500 psi hydraulic fow in a dedicated closed loop to the mulching implement. The SK140RTL is equipped standard with Lexan windshields, all auto-reversing an systems, superior noise abatement, superior debris control, increased uel tank capacity and electronic monitoring systems or all machine unctions. The unit is available with travel speeds reaching upwards o 20 mph. Loader arm liting capability allows or ease in managing vegetation around pipeline and ence line structures and obstacles. The SK140RTL is capable o using numerous attachments, adding versatility or all acets o land clearing. For more inormation, visit www. supertrak.com. supertrak.com. 42


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Horizontal Directional Drilling Good Practices Guidelines – 2008 3rd Edition The 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 Consortium

279 pages/ softbound Price:

$170.00* $153.00 $153.00 for a l imited time only!

Handbook of Pipe Bursting Practice This book introduces the technique of utility pipe line

renewal by means of pipe bursting and presents the standard works of relevance. Publisher:

M. Rameil

352 pages/ softbound Price:

$85.00*

In The Trenches: Quick Course to Construction Inspection This program will cover the following topics: • Excavation and Conned Space Safety • Underground Pipeline Construction Inspection Publisher:

APWA

Interactive CD with Handouts Price:

$115.00*

NUCA’s Trenchless Assessment Guide CD This 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: NUCA CD Price: $195.00* *Shipping and handling not included. Selling price subject to change without notice.

FAE USA PT-200 Imagine having a prime mover or orestry, construction and agricultural applications that allows you to work on any type o terrain in any weather. Imagine driving it in total comort. Imagine at last a more dynamic and productive way o working. FAE USA introduces the PT-200, a smaller and lighter version o the PT-400, combining power and unctionality or today’s right-o-way, site-prep and land maintenance contractors and organizations. Its 180-hp engine and track options allow the PT-200 to traverse the most dicult terrain rom steep slopes to swampy areas that demand excellent traction and low ground pressure. Outtting the PT-200 with an FAE mulching attachment allows the unit to grind, shred and mulch wooden material in diameters up to 12 in. — making it an excellent tool or removing unwanted undergrowth, invasive species o vegetation or even thinning and clear-cut applications. Standard eatures or the PT-200 include a winch, back-up camera, reversible an and mulching attachment. The PT-200 is EPA Tier 3 compatible with low uel consumption www.prime-tech.com. relative to similar units in its class. For more inormation, visit www.faeusa.com and www.prime-tech.com.

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

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Business Cards

Horizontal Directional Drilling Good Practices Guidelines – 2008 3rd Edition The 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 Consortium 279 pages/ softbound

Price: $170.00 $153.00* for a limited time only! *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

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North American Pipelines Calendar The Events Pipeline

Conferences, Meetings & Trade Shows

September 13 – 17

GIS for Oil & Gas Conference Geospatial Inormation & Technology Association (GITA) Marriott Westchase Hotel Houston Web: www.gita.org/oilgas 14 – 18

43rd Annual IPLOCA Convention International Pipeline and Oshore Contractors Association Fairmont Hotel San Francisco Web: www.iploca.org 21 – 24

American School of Gas Measurement Technology Marriott Westchase Hotel Houston Web: www.asgmt.com

October 5 – 7

Gas Machinery Conference Gas Machinery Research Council (GMRC) Hilton Hotel Atlanta Web: www.gmrc.org/gmc-2006.html 6 – 8

ICUEE Kentucky Exposition Center Louisville, Ky. Web: www.icuee.com

19

Tennessee Gas Supply Conference Tennessee Gas Association Chattanooga Hotel Chattanooga, Tenn. Web: www.tngas.org 19 – 22

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

November

2010 January 11 – 13

NUCA Expo ’10 Walt Disney World Dolphin Hotel Orlando, Fla. Web: www.nuca.com 19 – 21

Underground Construction Technology (UCT) 2010 International Conerence & Exhibition Tampa Convention Center Tampa, Fla. Web: www.uctonline.com

9

ASTM Symposium on Plastic Pipe and Fittings ASTM International Hyatt Regency Atlanta Web: www.astm.org/SYMPOSIA 15 – 17

AEM Annual Conference Westin Diplomat Resort & Spa Hollywood, Fla. Web: www.aem.org 19 – 20

HDD Executive Forum Doubletree Hotel Houston Web: www.trenchlessonline.com/HDD December

February 15 – 18

22nd International Pipeline Pigging & Integrity Management Conference (Plus Training Courses and Exhibition) Marriott Westchase Hotel Houston Web: www.clarion.org/ppim/ppim10/ main.php 17 – 21

PLCA 62nd Annual Convention Scottsdale, Ariz. Web: www.plca.org 23 – 28

DCA 49th Annual Convention Fiesta Americana Grand Los Cabos Los Cabos, Mexico Web: www.dca-online.org

1 – 3

Deep Gulf 2009 Moody Gardens Hotel & Resort Galveston, Texas Web: www.deepgulfconference.com

Advertisers Index Advertiser .......................................Website Website .....................................................Page Page #

Advertiser .......................................Website Website .....................................................Page Page # American Excelsior Company ........www.curlex.com .................................................41 Horizontal Technology Inc...............www.horiz ..............www.horizontaltech.com ontaltech.com......................................5 ......................................www.JohnDeere.com/precision cision ........................ 48 Barbco .............................................www.barbco.com ...............................................37 John Deere ......................................www.JohnDeere.com/pre Benjamin Media Resource Center .www.benjaminmedia.com/book-store ........43, 45 King Contracting Inc. ......................www.kinghdd.com .............................................17 Darby Equipment Company...........www.darbyeq Company...........www.darbyequip.com uip.com........................................ 21 Leslie Equipment Company ...........www.lec1.com ...........www.lec1.com ....................................................39 Denis Cami ..... ................................www.deniscima ................................www.deniscima.com .com .........................................25 LJ Welding & Machine ....................www.Ljwelding.com ....................www.Ljwelding.com ...........................................45 Educational Webinar Series............www.benjam Series............www.benjaminmedia.com/we inmedia.com/webinars binars.................39 Mersino.......................................... ..www.mersino.com..............................................27 ..www.mersino.com..............................................27 Enduro Pipeline Services Inc. .........www.enduropls.com .........www.enduropls.com ..........................................33 Michels Corp. ..................................www.michels.us..................................................23 FAE...................................................www.aeusa.com ...................................................www.aeusa.com................................................ 47 Neptune Research, Inc. ..................www.neptuner ..................www.neptuneresearch.c esearch.com om ...............................19 Fecon, Inc ................................... .....www.econ.com .....www.econ.com ..................................................13 Rain For Rent ...................................www.results.rainorrent.co ...................................www.results.rainorrent.com m .............................. 11 Gabe’s Construction Co. Inc. .........www.gabes.com .........www.gabes.com .............................................. ..15 REMU USA Inc. ...............................www.remu.f .......................................................... 7 Geospatial Corporation...................www.geospa Corporation...................www.geospatialcorporat tialcorporation.com ion.com ......................31 Rig Source, Inc ................................www.rigsourceinc.co ................................www.rigsourceinc.com m ........................... ...........45 HDD Exeuctive Forum ....................www.trenchlessonline.com ....................www.trenchlessonline.com/HDD /HDD ...................... 35 Vacuworx International ....................www.vacuworx.com ....................www.vacuworx.com .........................................2, 3

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Pipeline Construction - 09 SEP-OCT 2009

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