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Spring 2019 Edion PIPE LINE CONTRACTORS ASSOCIATION OF CANADA “Building Canada’s Pipeline Infrastructure for Over 60 Years” Established 1954

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Page 1: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

EXECUTIVE OFFICE Suite 201

1075 North Service Road WestOakville ON L6M 2G2

Tel: 905-847-9383 Fax: 905-847-7824

Email: [email protected]: www.pipeline.ca

Neil G. Lane, Executive Director

Spring 2019 Edition

PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

Establ ished 1954

PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

“Building Canada’s Pipeline Infrastructure for Over 60 Years”

Establ ished 1954

Page 2: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

2 Pipe Line Contractors Association of Canada

EXECUTIVE OFFICE Suite 201

1075 North Service Road WestOakville ON L6M 2G2

Tel: 905-847-9383 Fax: 905-847-7824

Email: [email protected]: www.pipeline.ca

Neil G. Lane, Executive Director

Page 3: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

Pipe Line Contractors Association of Canada 3

About PLCAC ..................................................................................................... 4

Who We Are ..................................................................................................... 5

Our Pipeline Careers ......................................................................................... 6

Our Labour Partners ......................................................................................... 7

Canadian Pipeline Advisory Council .................................................................. 8

Our Members ................................................................................................. 10

Our Pipeline Milestones ................................................................................. 12

Our Recognitions ............................................................................................ 14

Key Facts: North American Pipelines ............................................................... 16

Key Facts: Canada’s Pipelines .......................................................................... 17

Fact vs. Myth: The Canadian Pipeline Industry ................................................ 18

Key Facts: Building a Pipeline .......................................................................... 20

Key Facts: Pipelining Under Waterways .......................................................... 21

Contents

PLCAC Members in the News:

Waterways Alberta’s Athabasca River Challenges HDD Crews ............................................................... 22

Environment Conservation on the Right of Way ....................................................................................... 24

Indigenous Engagement Joint Partnership Provides Exemplary Services .................................................................... 25

Recycle and Renew/Technology Recycle and Renew — Green Pipeline Technology ............................................................... 26 Deploying State-of-the-Art Pipeline Integrity Tools ............................................................. 27

Page 4: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

4 Pipe Line Contractors Association of Canada

About PLCAC

PLCAC ...

Was established in 1954, with national executive offices maintained (at various times in Alberta, British Columbia and Ontario).

Co-ordinates, negotiates and administers more than a dozen Collective Bargaining Agreements (CBAs) for the construction, maintenance and service of Canada’s Mainline (transmission) and Distribution pipeline systems. This is done through a National Labour Relations Committee structure and a partnership-based philosophy with four international building trade unions.

Has, since 1969, participated in ongoing labour relations innovation and leadership in the Canadian construction industry, through a joint union-management Canadian Pipeline Advisory Council (CPAC). CPAC has established and maintains an Alternative/Appropriate Dispute Resolution (ADR) mechanism called the Pipeline Industry Grievance Panel (PIGP).

Provides employer-union check off dues that fund initiatives for independent industry training programs for pipeline-specific craft and trade skills in Canada.

Assures the security of skilled labour and services for strategic pipeline construction and renewal projects through co-operative approaches to pre-project engagement, planning and coordination.

Is Canada’s voice with global peer-organizations, including the World Federation of Pipeline Industry Association (WFPIA) and the International Pipe Line & Offshore Contractors Association (IPLOCA).

Is a founding, sustaining, corporate member to the Canadian Standards Association (CSA) Z662 standard, with a standing Pipeline Standards Committee of the board.

Is a co-founder and leader of Canada’s, mandatory Pipeline Construction Safety Training (PCST) program, which is maintained and offered by PLCAC’s partner, BuildForce Canada.

Is a leader in pipeline safety through a standing Safety Committee of the board, which maintains and oversees a suite of workplace safety education materials and videos.

Invests in tomorrow’s Canadian leaders through a broad-based post-secondary Student Awards Program that has distributed over $600,000 to over 300 students since the program was established in 1974.

Leads in social responsibility through initiatives and donations exceeding $700,000 during the past five years. Support going to causes and organizations including Alberta flood relief, Ft. McMurray fire, Humboldt Broncos, Royal Canadian Legion, YMCA and Canadian Olympic foundation.

Page 5: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

Pipe Line Contractors Association of Canada 5

Who We Are

Emerging out of the original Trans Mountain Pipeline project of the mid 1950s, for more than six decades the Pipe Line Contractors Association of Canada (PLCAC) has provided continuous industry leadership and a forum for Canada’s unionized contractors in matters of labour relations, safety, training and quality.

Canada’s Authorized Employer Organization (AEO)

for unionized contractors, operating on behalf of

45 regular members for harmonious, effective labour

relations, across Canada.

A key partner in serving members who have built and

maintain most of Canada’s National Energy Board

(NEB) — regulated transmission pipeline network.

A key point-of-contact for stakeholders to engage on questions and concerns about the

Canadian industry’s enduring commitment to sensible

solutions for quality, reliability and integrity of Canada’s

extensive Transmission and Distribution networks.

Canada’s single-window industry association for 94

associate members, who lead the world as innovators and solution-providers of supply and services for safe, reliable

and well-maintained pipelines.

The management partner with four international pipeline trade unions in one of Canada’s most innovative and responsive

joint-union management structures, the Canadian

Pipeline Advisory Council.

PLCAC is founded on ... LEADERSHIP

MEMBER RELATIONS INNOVATION

PARTNERSHIPS INDUSTRY ENGAGEMENT

Page 6: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

6 Pipe Line Contractors Association of Canada

Our Pipeline Careers

Industry OverviewBuilding and maintaining all pipelines requires specialized construction processes. Career opportunities exist in transportation, logistics, equipment operating, welding, pipelaying and a range of construction craft labour occupations.

Transporting and Logistics Trucking and logistics personnel provide essential transportation and logistical services. Among other things, transportation and warehousing crews:

Move, unload and later reload and remove heavy equipment Move pipe to the pipeline construction area Safely transport and support hundreds of crew members daily Maintain inventory control and ship supplies from portable warehouses

Operating EquipmentHeavy equipment is the backbone of a pipeline construction project. Heavy equipment operators are required for excavators, graders, bulldozers and dozer-like pipelayer machines called sidebooms as well as a range of other specialized equipment. Among other things, equipment operators:

Prepare access roads and set aside top-soil at right-of-way areas Unload sections of large pipe from trailers Dig precise trenches where the finished pipeline will rest Backfill completed pipeline trenches and help in reclaiming the land to its natural state

Welding and PipelayingWelding and pipelaying sets the pace for the entire pipeline construction process. Many welders and journeyperson pipelayers are used in a highly co-ordinated, focused assembly line process.Among other things, welders and journeyperson pipelayers:

Collaborate with labourers in bending pipes to align with the contour of the land Prepare pipe sections for traditional hand arc or automatic welding Co-ordinate the final set-up and clamping of pipe sections prior to welding Complete tie ins used to connect finished sections of pipe with other pipelines

Construction Craft LabourConstruction craft labour is the glue that binds different pipeline construction processes together through an extensive deployment of general and skilled labour. Among other things, labourers:

Clear the narrow tracts of land in forested areas where pipelines are built Construct fences to separate and protect land owners and livestock from construction areas Place pipe sections according to engineering/survey information Operate special cold bending machines and sand blasting equipment

Page 7: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

Pipe Line Contractors Association of Canada 7

Our Labour Partners

Our labour partners provide a reliable supply of competent, qualified and highly skilled workers. The value of their skills, productivity and ability to mobilize is a key strength for responsibly building and maintaining major pipelines across Canada.

The Pipe Line Contractors Association of Canada (PLCAC) partners with four building trades unions throughout Canada, as follows:

The United Association of Plumbers and Pipefitters (UA Canada)

The International Union of Operating Engineers (OE) The Labourer’s International Union of North America

(LiUNA) The Teamsters Canada (Teamsters)

Collectively these unions represent over 350,000 Canadian skilled tradespersons and have over 135 local offices to mobilize qualified and highly skilled workers to major projects.

Investment in Training and Economic Development Our labour partners:

Invest over $80 million dollars on training programs in Canada annually

Maintain over 93 local training facilities across Canada Deliver safety, skills and journeyperson training meeting

provincial and trade standard Provide 10 significant specialized pipeline training

programs coast to coast Deliver National Pipeline Construction Safety Training

(PCST) standard established for all trades persons in pipeline industry

Provide provincial safety training including: Basic Construction Safety; WHIMIS; Working at Heights; Confined Spaces; First Aid and CPR; and Hoisting and Rigging

Social and Economic ProfileOur labour partners:

Deliver engagement and skills development programs with Indigenous Peoples in Canada

Develop Mobility and Partnership Agreements across local, provincial and national boundaries

Participate in Helmets to Hardhats, which is an organization dedicated to transition veterans of the Canadian Forces to new career opportunities in the skilled trades

Support Build Together, a program that offers encouragement, mentorship and support to women in the unionized building trades

Page 8: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

8 Pipe Line Contractors Association of Canada

Canadian Pipeline Advisory Council

The Canadian Pipeline Advisory Council (CPAC) has provided ongoing labour relations innovation, leadership and stability in the Canadian pipeline construction industry for over five decades. Since 1969, this joint union-management body, made up of PLCAC directors and senior international union representatives from the four building trades unions does the following:

Maintains harmonious relations through mutual respect, balanced governance and collaboration

Establishes and maintains an expedited Alternative Dispute Resolution (ADR) mechanism called the Pipeline Industry Grievance Panel (PIGP)

Assists with pipeline specific craft and trade skills training through independent Training Trust Fund facilities across Canada

Assures security of skilled labour and services for strategic pipeline construction and renewal projects through co-operative approaches to pre-project engagement, planning and coordination

Reviews jurisdictional disputes as they arise and relate to the assignment of work; ensure steady work continuation without slow down and/or work stoppage

Participates in industry promotion and outreach with stakeholders including client, government, public relations and Indigenous Peoples engagement

Provides industry career pathway tools for educators, labour and member firms

Independently funded through employer contributions based on the hours worked under the pipeline agreements across Canada

Page 9: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

Pipe Line Contractors Association of Canada 9

Careers

Advocacy

Partnerships

Training

Canadian Pipeline Advisory Council

Partnering for Prosperity

Page 10: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

10 Pipe Line Contractors Association of Canada

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Regular (Contractor) Members Any contractor who is an employer of employees, whether an individual corporation, company, partnership or enterprise engaged in contracting for the construction, installation, treating, reconditioning or maintenance of pipelines for the purpose of transporting liquids, vapors, slurries or solids, or any phase thereof shall qualify for consideration as a regular member.

The PLCAC is proud of its 45 contractor members (whose drive for continuous improvement provides the most responsible and safe pipeline construction process) and its 94 supplier members (who deliver the highest technological advanced products to help make it all happen).

Our Members

Page 11: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

Pipe Line Contractors Association of Canada 11

Our Members

Associate (Supplier) Members Any supplier who is an individual, firm or corporation engaged in the business of manufacturing, selling, renting or transporting of materials, supplies, equipment, insurance or bonds for the construction or maintenance of pipelines shall qualify for consideration as an associate member.

Page 12: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

19851980

19751970

19651960

1954

12 Pipe Line Contractors Association of Canada

MAY 1980 Hon. Marc Lalonde delivers Canada’s Energy Efficiency keynote at PLCAC Annual

Convention ushering in the National Energy Program

(NEP) era

JANUARY 1969Canadian Pipeline Advisory Council

(CPAC) formed

APRIL 1978Parliament creates Northern Pipeline

Agency, federal regulator of the Alaska Highway

Gas Pipeline in Canada

JULY 1983Pipeline

Agreements for Canada split

into separate agreements: Mainline and Distribution

JANUARY 1966Health benefits introduced into

UA Pipeline Agreement for

Canada

SEPTEMBER 1962

Alberta Oil and Gas Conservation Board

approves Great Canadian Oil

Sands Project

JUNE 1970Alberta Gas Trunk Line announces plans

for Mackenzie Valley Pipeline (gas)

Alberta Gas Trunk Line was later renamed Nova, an Alberta Corporation and merged

with TransCanada in 1998

OCTOBER 1980

MAY 1981PLCAC members

experience the one and only legal labour strike in

their 6 decade history

1977Alyeska Pipeline completes

construction of its Trans Alaska Pipeline

System

JANUARY 1974Cal Callahan Memorial

Bursary established(Later re-named PLCAC

Student Awards Program)

1981Foothills Pipe Lines Ltd.

begins transporting natural gas from central Alberta to

the U.S. border

Under the direction of Prime Minister P. Trudeau, federal government introduces the National Energy Program (NEP)

APRIL 1969First PLCAC newsletter

published

FEBRUARY 1961BC government approves application by Westcoast Transmission for $30 M

pipeline through BC interior

FEBRUARY 1958First pipeline construction

Safety Manual is created

(Later re-named Approved Safety

Guide)

Founded in 1954, the Pipe Line Contractors Association of Canada has been a continuous leader in helping ensure the safety and integrity of Canada’s pipeline infrastructure.

NOVEMBER 1959Canadian Parliament

creates National Energy Board

1957TransCanada PipeLine begins construction

on natural gas pipeline across Canada

JUNE 1956Construction

permission for a trans-Canadian

pipeline (to be built by TransCanada

PipeLine) is granted by Canadian Parliament

FEBRUARY 1955

First PLCAC Annual Convention is held

in Victoria, BC

NOVEMBER 1954Pembina Pipeline system is

constructed to transport crude oil from the Pembina field near

Drayton Valley, AB to Edmonton, AB

April 1954PLCAC founded in Edmonton, AB

Our Pipeline Milestones

SEPTEMBER 1974Foothills Pipe Lines Ltd. founded to construct

Canadian portion of Alaska Natural Gas System

Foothills Pipe Lines Ltd. is now a subsidiary of

TransCanada

Page 13: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

20152010

20052000

19951990

2020

Pipe Line Contractors Association of Canada 13

Our Pipeline Milestones

SEPTEMBER 1990

The only “wildcat” strike of

significance by the UA

shuts down all mainline

projects across Canada

FEBRUARY 1993

February 2001PLCAC goes online at

www.pipeline.ca

APRIL 2010 Enbridge Alberta Clipper Pipeline

becomes operational

JANUARY 2009 Pipeline Workforce Attraction Project

established to bring information regarding the four pipeline craft labour and skilled trade

roles to potential future pipeline workers

1990-1991 Gas pipeline laid from mainland

to Sunshine Coast and Vancouver Island, BC

MAY 2016 PLCAC raises over $580,000 in funds and services for the victims of the historic Fort McMurray fire

MAY 2012PLCAC and the four pipeline craft unions

develop an MOU to construct the Enbridge Northern Gateway Pipelines

and pumping stations

SUMMER 2018Federal government

purchases Trans Mountain pipeline and related

infrastructure

AUTUMN 2016, 2017 & 2018

PLCAC and the 4 pipeline craft unions spend a ‘Day on the Hill’ meeting with MPs and senators.

JUNE 1999PLCAC’s Professional Leadership

Development Program is introduced

APRIL 2010Wayne McArthur Memorial Award

established, recognizing a PLCAC regular member student who

demonstrates hard work, dedication and leadership within the

community

MARCH 2011Mackenzie Valley Pipeline is

finally granted federal cabinet approval over 35 years after

first proposal

NOVEMBER 2016

FEBRUARY 2011TransCanada

Pipelines Ltd. begins transporting crude oil on Keystone Pipeline from Alberta, Canada

to Oklahoma, U.S.

SEPTEMBER 2018

JANUARY 1995Jack Cressey Future Leader

Award established to recognize regular member

employees who have not yet attained executive status and have developed leadership

qualities

MARCH 2007Mandatory Pipeline Construction Safety Training is developed by PLCAC and other stakeholders and administered by Buildforce Canada

PLCAC safety video Being Your Best first edition is released

APRIL 2019PLCAC celebrates 65 years

MAY 1999Construction begins on the

Maritimes & Northeast Pipeline (gas)

MAY 2001Northern Pipeline Projects Inc. created to engage local residents with future pipeline

projects in Northern Canada

PLCAC contractors begin construction on Enbridge Line 3

Replacement

Prime Minister Trudeau re-affirms Canada’s

commitment to build the Trans Mountain Expansion pipeline

Page 14: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

14 Pipe Line Contractors Association of Canada

JAMES L. ABRAHAM SAFETY PERFORMANCE AWARDS OF EXCELLENCE

Annually, at its convention, the Pipe Line Contractors Association of Canada recognizes regular member firms who have distinguished themselves with exemplary safety performance and safety records over the previous year through the James L. Abraham Safety Performance Awards of Excellence program. These awards are based on lowest lost-time incident (LTI) frequency rates.

The James L. Abraham Pipeline Safety Performance Awards of Excellence winners for the 2018 calendar year were presented at the 2019 PLCAC Annual Convention. These winners are as follows:

The late James L. Abraham.

AWARDSMAINLINE PIPELINE CONSTRUCTION:SA Energy GroupThe following company also had 0 LTIs in this category (but worked less hours): Waschuk Pipe Line Construction Ltd.

DISTRIBUTION PIPELINE CONSTRUCTION:AeconThe following companies also had 0 LTIs in this category (but worked less hours): Michels Canada Co., NPL Canada Ltd., Robert B. Somerville Co. Limited and T.W. Johnstone Company Limited.

PIPELINE MAINTENANCE AND SERVICE:Robert B. Somerville Co. LimitedThe following companies also had 0 LTIs in this category (but worked less hours): Aecon, NPL Canada Ltd. and Summit Pipeline Services ULC.

SPECIALTY CONTRACTOR—TRANSPORTATIONOver 20,000 Man-Hours Worked:Premay Pipeline Hauling L.P.

SPECIALTY CONTRACTOR — OTHER Over 20,000 Man-Hours Worked:Michels Canada Co.The following companies also had 0 LTIs in this category (but worked less hours): Academy Construction & Maintenance LP, Robert B. Somerville Co. Limited. and TESTCO Western Corp.

SPECIALTY CONTRACTOR — OTHERUnder 20,000 Man-Hours Worked:Badger Daylighting LPThe following companies also had 0 LTIs in this category (but worked less hours): Lonestar Vacuum Inc. and McCaws Drilling & Blasting Ltd.

Our Recognitions

Page 15: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

Pipe Line Contractors Association of Canada 15

STUDENT AWARD PROGRAM

The PLCAC Student Award Program works to assist students entering post-secondary education programs. In 2018–2019, the Executive Committee of the Pipe Line Contractors Association of Canada awarded 35 students attending full-time study programs at recognized Canadian universities or colleges. The program has assisted over 300 students since the award program was established in 1974.

In recognition of the PLCAC’s 65th anniversary, the directors approved $65,000 for the recipients of the Student Award Program.

WAYNE E. McARTHUR MEMORIAL AWARD

The Wayne E. McArthur Memorial Award was established in honour of the late Wayne McArthur (former associate director of the PLCAC as an employee of associate member firm, Acklands-Grainger Inc.), who passed away in 2006.

Remembered as a person who believed in mentorship, nurturing future leaders and encouraging young people to pursue success in all realms of life, Wayne’s former co-workers sought to develop an award in his name, which symbolizes all that was important to him.

The award, as per Wayne’s legacy, recognizes a student who is not only achieving academic excellence, but is already well on their way to becoming a community leader. The award is generously sponsored by Acklands-Grainger Inc.

The lateWayne E. MacArthur.

JACK CRESSEY FUTURE LEADER AWARD

This award was created in 1995 in memory of Jack Cressey, a board member and past president of the association. This award recognizes leadership and is open to all PLCAC members’ employees who have not yet attained executive status in their company.

The candidate is someone who has demonstrated leadership qualities of significance to the company and may come from any segment of the company, such as field operations, accounting, sales, estimating or warehousing. Each year, the recipients of this award are published in the award section on the Pipe Line Contractors Association of Canada website at www.pipeline.ca.

The late A. J. (Jack) Cressey.

Our Recognitions

Page 16: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

Key Facts:North American Pipelines

16 Pipe Line Contractors Association of Canada

Page 17: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

Pipe Line Contractors Association of Canada 17

Key Facts: Canada’s Pipelines

$

3.5 M

PER DAY IN 2013

6.1 M

PER DAY BY 2040

32% 2015

2040

31%

1990 2014

KEY FACTS ON CANADA’S PIPELINESSafe and reliable pipeline systems are critical to ensuring that our natural resources reach their destined markets

and that our energy sector remains resilient and sustainable.

1 CANADA’S PIPELINE INFRASTRUCTURE

2 CANADA’S PIPELINES 3 OIL AND GAS – EMPLOYMENT AND GDP

4 OIL AND GAS – GOVERNMENT REVENUE

5 EXPORTS 6 OIL PRODUCTION

7 WORLD ENERGY DEMAND 8 GHG EMISSIONS

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2016

More than73,000 kmare regulated by the National Energy Board throughout Canada

* Source: Natural Resources Canada calculations, based on National Energy Board data.

Sources: NRCan’s Energy Markets Fact Book 2016-2017.

Source: 5 year average of Statistics Canada, CANSIM Table 180-0003 (tax), Statistics Canada special tabulation (royalties), Canadian Association of Petroleum Producers - Statistical Handbook, Table. (land sales)

Source: Statistics Canada CANSIM Table 126-0001, National Energy Board Web site: Natural Gas Imports, Exports and Liquefied Natural Gas Statistics

Source: National Energy Board, Canada’s Energy Future 2016: Energy Supply and Demand Projections to 2040.

Source: International Energy Agency: World Energy Outlook 2015. Source: Natural Resources Canada calculations, based on Environment Canada data.

1.3 billionbarrels moved per year

99.999

of OIL MOVED SAFELY

%and

of liquids released in the past 3 years by federally regulated pipelines were recovered*

100%

These pipelines carry over$100 billion

of natural gas, oil and

petroleum productseach year

Canada’s pipelines safely and reliably deliver the energy Canadians need to:

heat their homes

drive their cars

run their businessesPetroleum products are also used to make everything from the

electronics we use to the clothes we wear

The oil and gas sector

contributes to the strength of Canada’s economy,

directly and indirectly

EMPLOYING ABOUT

710,000PEOPLE

8%of GDP in 2015

and generating almost

The oil and gas sector

contributed an average of

$20.3 Bbetween 2010 and 2014

taxes, royalties andfees to government

money that helps to support public pensions, provide health careand build schools as well as hospitals, housing and highways

Canada currently has one major export customer for our oil and gas

In 2015

100%

natural gas exportsoil exports99%

went to theUnited States

Canadian oil production is expected to continue to grow from about

The oil sands isprojected to account for

79%of production

in 2040

The International Energy Agency projects

that, by 2040, the world will need

32% more energy than is beingproduced today

Oil sands greenhousegas emissions per barrel decreased 31% between

1990 and 2014

The oil sands sector

represents 9.3% of

Canada’s total GHG

emissions and 0.1% of

global emissions

Safe and reliable pipeline systems are critical to ensuring that our natural resources reach their destined markets and that our energy sector remains resilient and sustainable.

Page 18: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

18 Pipe Line Contractors Association of Canada

FACT: Almost 75 percent of Canada’s energy demand is currently met by natural gas or crude oil

FACT: Only 3.6 percent of the world’s energy was derived from renewables in 2017, while 34.0 percent came from oil and 23.4 percent from natural gas.

FACT: Pipelines are necessary to deliver fuel for Canadians to heat their homes, drive their cars and travel by bus, ship, train and airplane.

FACT: The International Energy Agency projects that by 2040, the world will need 32 percent more energy. Globally, consumption is forecasted to grow by 12 percent for oil and 46 percent for natural gas through 2040.

FACT: About 1.5 billion barrels of oil are moved by pipeline each year, with a 99.999 percent safety record.

FACT: Over 3000 “integrity” digs (excavation of a section of pipeline for inspection) were performed in 2017.

FACT: Over 36,000 km of “inspection runs” were conducted in 2017 using small submarine-like devices which travel inside a pipeline to proactively diagnose potential issues.

MYTH NO. 1

We don’t need oil.

MYTH NO. 2

Pipelines are unsafe.

MYTH NO. 3

The pipeline industry doesn’t care about the environment.

FACT: Oil sands greenhouse gas emissions decreased by 42 percent per barrel between 1990 and 2017.

FACT: Only 10 percent of Canada’s total greenhouse gas emissions and 0.15 percent of global emissions come from the oil and gas sector.

FACT: Our industry uses many reclamation techniques to reduce and eliminate a pipeline’s environmental footprint and return the pipeline route to its natural condition.

About our Industry Approximately 97 percent of Canadian natural gas and crude oil is transported by transmission pipelines. The oil and gas sector, directly and indirectly, employs approximately 740,000 people in Canada (for

comparison, Canada’s 20 or so manufacturing industries collectively employ about 1.7 million people). Our sector generated almost 11 percent of Canada’s GDP in 2016 (compared to manufacturing at 11

percent), and currently has one major export partner for its oil and gas – the U.S.A (at 97 percent and 100 percent, respectively).

Canadian oil production is expected to continue to grow from about 4.2 million barrels per day in 2017 to 5.6 million barrels per day in 2035.

Fact vs. Myth:The Canadian Pipeline Industry

Page 19: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

Pipe Line Contractors Association of Canada 19

Fact vs. Myth:The Canadian Pipeline Industry

FACT: Remotely-controlled pipeline valves can shut off the flow of product at a moment’s notice.

FACT: Over 500 emergency response exercises were practised with first-responders in 2017.

FACT: Of the 1.5 billion barrels of oil moved by pipelines in 2017, all but 51 barrels of product spilled was remaining after initial recovery. The companies involved were 100 percent responsible for response, cleaning and restoration after recovering the remaining spilled product.

FACT: Pipeline companies are closely audited to ensure emergency preparedness, but are more focused on ensuring incidents don’t occur in the first place.

FACT: Canada has had pipeline rules and guidelines in place (The Pipelines Act of 1949) for almost 40 years longer than it’s been required to wear seat belts in cars.

FACT: If a pipeline crosses provincial or international borders, it’s typically regulated by the National Energy Board (NEB).

FACT: The NEB currently regulates 73,000 km of pipeline throughout Canada.

FACT: Pipelines that operate within a province/territory generally fall under the provincial/territorial regulator’s authority – examples include the Alberta Energy Regulator, British Columbia Oil, and Gas Commission, and the Ontario Energy Board.

FACT: When pipeline operators want to put in a new pipeline or expand an existing one, they will always talk to a variety of stakeholders.

FACT: Farmers who own agricultural land through which a pipeline is routed are referred to as “landowners” and considered to be partners in delivering energy.

FACT: In urban communities, pipeline companies try to lay pipelines along roads or other existing utility routes.

FACT: To promote safety and prevent damage by third-party excavators (like construction crews or home builders), all Canadian provinces have a “One-Call Centre” and/or a “Call or Click Before You Dig” program.

MYTH NO. 4

Leaks happen and no one is prepared.

MYTH NO. 5

Pipelines aren’t adequately regulated.

MYTH NO. 6

Pipeline companies don’t care about local communities.

DID YOU KNOW?A train would have to be 4200 cars long (or 85 km) to move the 3.4 million barrels of crude oil transported by pipelines in Canada everyday!*With information from the Canadian Energy Pipeline Association, Natural Resources Canada, BP, and other industry sources.

Page 20: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

Key Facts:Building a Pipeline

20 Pipe Line Contractors Association of Canada

Note: Not all activities will occur at every location and sequence may change on occasion.

1. Surveying and Staking2. Clearing and Grubbing3. Topsoil Stripping and Grading4. Drilling and Blasting Trench Rock5. Pipe Stringing6. Trenching7. Pipe Bending8. Welding9. Non-Destructive Testing

10. Coating of Field Welds11. Coating Inspection and Repair12. Boring Beneath Roads, Rail and Select Crossings13. Lowering-in14. As-built Surveying15. Padding, Backfill and Rough Grading16. Hydrostatic Testing and Final Tie-ins17. Replacing Topsoil, Final Clean-up and Restoration18. Reclamation

A pipeline construction project looks much like a moving assembly line and is typically broken into manageable lengths called “spreads.” Each spread is composed of highly qualified crews and specialized equipment, each with its own responsibilities. As one crew completes its work, the next crew moves in. In Canada a spread at peak will employ 700-800 workers and will typically construct a 100+ km of pipeline in either the summer or winter. The PLCAC unionized labour force comes from all provinces and territories across Canada with over 30 per cent from eastern Canada.

Page 21: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

Key Facts:Pipelining Under Waterways

Pipe Line Contractors Association of Canada 21

Stage 1: Pilot Hole Directional Drilling

Stage 2: Reaming and Pulling Back

HorizontalDrilling Rig

Entry Point

Exit Point

Entry Pit with Berm

Drill Pipe Pilot Hole

Direction of Pilot Hole Drilling

DesignedDrill Path

Exit Pit with Berm

Profiles(Not to Scale)

HorizontalDrilling Rig

Entry Pit with Berm

Direction of Progress Reaming

Exit Pit with Berm

Watercourse

Watercourse

Drilling Fluid Returns

Reamer

HorizontalDrilling Rig

Entry Pit with Berm

Drilling Fluid Returns

Direction of Pull Back

WatercourseExit Pit

with Berm

Swivel

PrefabricatedPull Section

Page 22: PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

22 Pipe Line Contractors Association of Canada

Alberta’s Athabasca River Challenges HDD Crews

Long before a drill bit bores into the ground, a contractor’s experience and comprehensive planning process help to determine the probability for success on a boundary-stretching horizontal directional drill (HDD) project.

Michels Canada Co. recently completed a challenging 7,200-ft (2,195-m) bore for the installation of a 42-in. pipe under the Athabasca River near Fort MacKay, Alberta, about 40 miles north of Fort McMurray. The 1.36-mile installation is a record length for 42-in. diameter pipe for Michels and considered to be one of the longest 42-in. installations done in the world.

The project has several unique elements that, when combined, made it an exceptional achievement in pipeline construction. As an international leader in HDD and trenchless construction, Michels has completed some of the longest and most challenging projects in the industry at a variety of diameters.

Michels’ operational leadership team leveraged that experience when developing an effective strategy for completing the Athabasca River project. The crossing was one of seven 42-in. installations Michels is completing on TransCanada’s Northern Courier Pipeline Project, a 56-mile pipeline system that will transport bitumen and diluent products between a mine and bitumen extraction facility in Fort Hills to a tank farm near Fort McMurray.

Michels Canada installed 1.36 miles of 42-in. pipe under the Athabasca River near Fort MacKay, Alberta, as part of a 56-mile pipeline system to transport bitumen and diluent products.

The mammoth scale of the 42-in. project required Michels to tap into its abundant resources and technical knowledge. An initial design for a shorter crossing of about 6,000 ft was set aside because it would have required drilling in a sensitive area, as well as getting access close to the Athabasca River. Instead, the crossing was redesigned and extended to pass under both the Athabasca River and the mine site highway.

Michels Completes 7,200-ft Crossing to Install Gas LineBy Jeff Mueller and Patrick O’Donoghue.

PLCAC Members in the News: Waterways22

APRIL 2016 North American Oil & Gas Pipelinesnapipelines.com

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Due to the length of the alignment, the design utilized a pilot hole intersect method and then set up Michels’ 1.2 million-lb drill rigs on each side of the river for reaming operations.

The subsurface conditions were challenging as crews encountered geology that included oil sands, hard limestone, sandstone and siltstone. Michels utilized a variety of drilling tools and paid special attention to the engineer-designed drilling fluid program to manage the four substantially different formations. Both entry and exit side utilized surface casings to quickly reach more favorable formations. To ensure drilling accuracy,

Michels used a combination of gyro steering and ParaTrack navigation tools for guidance with annular pressure monitoring.

Adhering to the designed drill path was as critical as it was demanding. Because the 42-inch pipe will contain a thermally grouted 24-in. pipeline, the installation needed to maintain specific gradients to adhere to the grouting plan.

The pilot hole was bored at 12 ¼ in. in diameter. Next, the hole was reamed in stages to the final diameter of 54 in.

Maintaining the path was one of several challenges. In addition to the HDD crew, Michels Canada provided pipe support and welding services.

Prior to pullback, the string was assembled and welded into one section and placed on rollers. Due to site limitations, the colossal pipe string was curved along 70 percent of its laydown length. To safely and efficiently handle the pipe, Michels utilized 10 cranes, five side booms and three excavators. The steep entry angle required the pipe-handling crew to hoist the pipe a soaring 47 ft into the air.

Michels Canada also worked with project owner, TransCanada, to ensure there was proper contingency for the pipe installation phase by utilizing one of Michels’ 1.2 million-lb drill rigs to pull and a 750-ton Herrenknecht Pipe Thruster at exit. Michels has utilized a similar contingency strategy on previous large-scale projects and, once again, it paid off. The pipe thruster was occasionally engaged to assist the pullback along the alignment. In fact, the pullback was challenging right from the start when a hefty 380,000 lbs of pull force was needed to achieve initial movement.

Michels has completed trenchless installations in all environments, from some of the most densely populated to some of the most remote, and utilized that experience to prepare to work in the isolated northeastern Alberta area.

The 30-member crew stayed at nearby work camps, a necessary step to accommodate the 24/7 schedule. They encountered typical Alberta weather that ranged from highest near 90 F to lows of -4 F. Keeping essential tools and supplies nearby was of critical importance, given the remote location and very limited options for receiving deliveries in a timely manner. In addition to determining which pieces of equipment, tools and supplies were necessary to begin construction, the Michels project management team also arranged to have adequate backup pieces on hand for immediate use should their need arise.

In the end, Michels’ planning and processes paid off. The installation was completed on schedule in November. In addition to accurately following the required alignment, the installation was completed without any lost-time injuries and without any inadvertent fluid releases along the environmentally sensitive crossing.

PLCAC Members in the News: Waterways 23

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PLCAC contractors take conservation of the environment seriously. During pipeline construction, there are many environmental considerations such as; streams, undefined drains,

wetlands, weed control, topsoil preservation, and wildlife protection.

Water crossings are a major concern when building a pipeline. Different construction approaches are used depending on which type of water crossing situation is faced, including; fish-bearing, non-fish bearing, ephemeral streams (no water present), and undefined drainages (no bed or banks). PLCAC contractors and environmental experts identify and plan for the most environmentally sound and effective crossings. A crossing plan is developed for both vehicles and pipe. This plan is reviewed and adjusted through onsite meetings to ensure minimal environmental impact. The contractors take great pride in restoring water courses to natural conditions, often strengthening banks to avoid future erosion.

When construction through the agricultural land (white zone) is required, the two most important issues are topsoil handling and weed mitigation, including clubroot. PLCAC contractors engage with every landowner along the pipeline construction right-of-way and explain the weed prevention, machine cleaning and topsoil handling procedures. Weed cleaning stations are established to reduce the spread of weeds. Construction vehicle tires and equipment treads are washed with bleach to mitigate the potential spread of clubroot. Specific controls are utilized to ensure all the topsoil and clays are separated. The clay and topsoil layers are restored leaving an improved final ground condition.

Nesting birds are a major concern in summer-fall work. A recent project was delayed by 6 weeks in order to minimize the impact on hatchlings. A nest sweep was conducted prior to the commencement of work to ensure construction activity would not endanger any hatchlings. When active nests are found, a buffer area is established and entry is restricted in the area until the nest is clear.

Amphibian surveys are regularly conducted prior to access and construction. Western Toads were encountered within the construction right of way of a recent project. As Western Toads are an at-risk species, a team of biologists were engaged. The biologists trapped, counted and safely relocated the endangered toads so work could continue.

PLCAC contractors routinely employ these best practices to minimize the construction impact and steward the environment into which the pipeline is integrated. One contractor recently shared their environmental message that gets delivered to all construction employees: “If it was your backyard, what would you do?”

Western Toad

Conservation on the Right of Way

PLCAC Members in the News: Environment24

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A6N is a joint venture between Aecon Group (49% ownership) and the Six Nations of the Grand River Development Corporation (51% ownership). Established in 2015, the company performs utilities-related work in southwestern Ontario, specifically within the Haldimand Tract; an area of historical significance to the people of Six Nations.

Six Nations of the Grand River is one of the largest populated First Nations in the country comprised of the Mohawk, Seneca, Oneida, Cayuga, Onondaga, and Tuscarora nations. Aecon Group is a Canadian leader in construction and infrastructure development. A6N is staffed with about 90 percent of the employees coming from the Six Nations with the balance of the team being experienced Aecon construction lead hands and foremen.

PLCAC Members in the News: Indigenous Engagement

A6N is an industry-leading example of a corporate Canada and First Nations Partnership.

On many projects, contractors attempt to hire local First Nations community members. However, when that project ends, those jobs are gone. With the A6N model, the majority of the workers are retained and simply move with the company to their next project. Creating meaningful and consistent employment instills pride and develops a complement of knowledgeable and skilled workers that can be deployed in a wide range of utilities related projects.

A6N was awarded the 2018 Ontario Energy Association’s Company Award which recognizes and rewards companies acknowledged as outstanding leaders by their peers within the energy industry.

Joint Partnership Provides Exemplary Services

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 Recycle and Renew — Green Pipeline Technology

PLCAC Members in the News: Recycle and Renew/Technology

A proprietary technology called ReCastTM, developed by PLCAC Associate Member Quality Polly Pig (QPP), reduces environmental footprints and enhances customers’ cost savings initiatives. The company recently said: “The ReCast technology creates an inseparable bond between the new material and existing polyurethane (PU), enabling remanufactured parts to thrive in the most demanding environments.” Worn cups and disks on batch pigs can be rebuilt with the ReCast process thus lengthening their lifespan as well as delivering cost savings by delaying replacement purchases.

Typical industry experience was that a 30-inch pigging cup travels about eight runs before it would be deemed out of tolerance and discarded. With ReCast, that same cup can have a dramatically extended life and be remanufactured up to 7-times more. ReCast parts show an approximate cost saving of 30% versus replacing with a new part. Increased cost savings result as this technology allows more than fifty more runs on the original core of a part versus the traditional average of approximately eight runs.

Provided the part passes all of QPP’s quality checks each time it is returned, it has the potential to be ReCast several times before the part is eventually retired. Additionally, the new PU formula that is bonded to the existing pig core part might be a higher performing PU, which means the ReCast part will meet – and frequently exceed – the wear life of the original part.

An example of the technology helping QPP’s customers was a trial with Enbridge Pipelines. Enbridge undertook an extensive evaluation program to understand the benefits of the ReCast process for its pigging parts. The success of the trial resulted in Enbridge incorporating the ReCast pig parts into their parts inventory.

As QPP puts it: “ReCast products have provided pipeline and pigging contractors a distinctive edge over their competition. We, as manufacturers and consumers, need to direct ourselves away from the disposable world we live in.”

This 24 in. Power Disc has gone through the ReCast process, with a visibly seen difference of the wear edges. This shows how much waste goes into landfills when 90% of these parts are in good condition to continue several more lifecycles.

Stacks of used cups and discs. This site is one of many where hundreds of used pig parts wait to be moved to landfills.

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Did you know that since the 1960s, pipeline operators have been using an increasingly sophisticated technology called smart pigs to ‘see’ inside their pipelines?

In fact, these 'pigs', which stands for pipeline inspection gauges, are one of the industry's main diagnostic tools. They travel through a pipeline to monitor its health, diagnose issues such as metal defects, forecast potential challenges and report any issues to the pipeline operator.

Smart pigs come in a range of sizes with varying features, customized to fit the pipeline they are monitoring.

IT’S CALLED ‘SMART’ FOR A REASON!

ONBOARD BATTERIESpower the collection of data, which is stored in the smart pig.

SENSORSdetect anomalies and defects in the pipeline, and are able to determine if a potential issue is on the inside or outside of a pipeline.

SEALING DISKS allow the smart pig to flow with the product and speed controls ensure it doesn’t go too fast. Smart pigs can travel up to 3 to 5 m/sec and still gather good data.

ODOMETER WHEELS centralize the pig and take an accurate reading of the tool’s speed and distance travelled through the pipeline.

DATA CANISTERS store the data the smart pig collects as it travels through the line.

Can inspect in all sorts of conditions, including liquids and gas pipelines, low pressure or heavy-walled pipelines.

A pipeline does not need to be shut down to be inspected; a smart pig moves with the flow of the product.

Can detect a broad range of problems, including dents, wrinkles, pipeline movement from ground disturbance and changes in wall thickness and pipe coating.

Advancements in sensors, batteries and software continue to improve its monitoring and detection capabilities.

MAGNETSfill the pipeline with a powerful magnetic field as the smart pig passes through. The magnetic field is used to detect metal loss in the pipeline – if there is corrosion the magnetic field will ‘leak’ out of the pipeline in that area and be detected by the sensors.

GPS TRACKING enables pipeline operators to pinpoint the exact location of the potential anomaly.

ANATOMY OF ASMART PIG

Canadian pipeline operating companies are world leaders in advanced pipeline integrity programs. PLCAC contractors assist with in-line electronic inspections (“pigging”) and then replace or rehabilitate any suspected off-specification pipe sections.

PLCAC Members in the News: Recycle and Renew/Technology

Deploying State-of-the-Art Pipeline Integrity Tools

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EXECUTIVE OFFICE Suite 201

1075 North Service Road WestOakville ON L6M 2G2

Tel: 905-847-9383 Fax: 905-847-7824

Email: [email protected]: www.pipeline.ca

Neil G. Lane, Executive Director

Spring 2019 Edition

PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

Establ ished 1954

PIPE LINE CONTRACTORS ASSOCIATION OF CANADA

“Building Canada’s Pipeline Infrastructure for Over 60 Years”

Establ ished 1954