the mosaic company: a proud part of a growing saskatchewan

July 2012 Issue 78

The Mosaic Company: A Proud Part of a Growing Saskatchewan..... 1

Mobile Compression Update ................................................................ 3

TransGas 2012 Outage Scheduling..................................................... 4

Increased Activity Keeps Coleville Plant Running Strong.................... 5

Mock Emergency: Procedures Put to the Test.................................... 6

Alberta Receipt Capacity Update.......................................................... 7

Employees Lend a Hand to Help the Environment.............................. 8

TransGas Storage Update..................................................................... 8

The Mosaic Company: A Proud The Mosaic Company: A Proud The Mosaic Company: A Proud The Mosaic Company: A Proud Part of a Growing SaskatchewanPart of a Growing SaskatchewanPart of a Growing SaskatchewanPart of a Growing Saskatchewan

Mosaic is a young organization but has deep roots and a proud history in the potash and phos-phate fertilizer industries. Established in 2004, the Minnesota-based company is listed on the New York Stock Exchange and has recently been made part of the S&P 500. With a diversi-fied portfolio of plant nutrient products, financial strength and global market presence; Mosaic is well positioned to grow its business and pursue its mission to help the world grow the food it needs. Today, Mosaic is the world’s leading producer and marketer of concentrated phosphate and potash, employing approximately 8,000 people in eight countries. As a leader in the potash indus-try, Mosaic is growing its potash business by embarking on a multi-billion dollar expansion pro-gram in Saskatchewan. The company’s Expan-sion Program consists of multi-year projects at its three Saskatchewan mine sites located at Belle Plaine, Colonsay and Esterhazy which will raise its nameplate capacity by 50 percent, while increasing operational capacity to 16.5 million tonnes by 2021. The investments Mosaic is mak-ing to optimize its industry position and capture opportunity in its potash business are aggres-sive, cost advantaged and flexible. Through its investment Mosaic is making a commitment to the province and the communities that it works in that it will be here now and in the future.

Mosaic’s Belle Plaine expansion project began in 2008, and the site has seen considerable growth through the expansion of its refinery and storage facilities, as well as increased solution mine development. A committed expansion team of Mosaic employees and contractors have worked hard to make it all happen. As Mosaic looks toward the future, a feasibility study is currently underway for the next stage of expansion at Belle Plaine. For over 50 years, Esterhazy has affectionately been referred to as the centre of “Potashville” in Saskatchewan. Mosaic’s Esterhazy operations have a proud and storied past, and Mosaic’s expansion program is driving optimism about a promising future. “I can’t think of a more exciting time to be a part of this company,” said Paul McMillen, Manager of Esterhazy’s Expansion Program. The Esterhazy Expansion Project received approval in 2008. Led by a hard-working team of Mosaic employees and contrac-tors, work at the site involved expanding mine and mill capacity, upgrading hoist capability and developing additional product storage. In addition to expansion of Mosaic’s existing Esterhazy operations, the company is also in-vesting in a new K3 satellite mine to enhance growth and ensure the viability of its Esterhazy operations.

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Scheduled for completion in 2017, the new facility will include a service shaft, mine and surface facilities. When complete, the K3 service shaft head frame will stand as the tallest structure between Calgary and Winnipeg. As impressive as the installation will be, of even greater significance to Steve Grinius, Manager of the K3 Shaft Program, is what the new mine site will mean to Mosaic and the community of Esterhazy. “The Esterhazy K3 mine site devel-opment is one of the most significant projects in Mosaic’s current plans for expansion,” said Grinius. “Not only are we expanding our capac-ity for the years ahead, we’re also making a huge investment in the community of Esterhazy. This truly is the future for the both of us.” At Mosaic’s Colonsay facility, the expansion project officially got underway in 2009. Since then, the site has been a hotbed of activity as

Mark Kraft, Expansion Project Manager and his team have joined forces with hundreds of con-tractor personnel to complete a variety of pro-jects, including expanding and upgrading the site’s mill operations, the development of addi-tional mining units and the creation of increased underground ore storage. “In many ways, it really is the dawn of a new era for the Colonsay facility and its workforce,” said Kraft. “We are all

extremely proud of the work that has gone into our expansion efforts so far, and we look for-ward to being able to play an important role in helping our communities grow – now and in the future.” The project is expected to be completed in 2013. Whether it is through participation in the expansion projects, or supporting Mosaic’s existing operations, the company relies on trusted business partners like TransGas to help make it all happen. TransGas services all of Mosaic’s mine sites with high-pressure natural gas delivery service through its network of pipe-lines. The company relies on TransGas to con-nect it to natural gas commodity suppliers from whom it purchases natural gas. TransGas also provides Mosaic with natural gas storage ser-vices that allow it to manage variable consump-tion levels at its sites and ensures it has reliable gas supply during the peak winter heating season in Saskatchewan. In addition, TransGas and Mosaic have worked together to expand the capacity of delivery ser-vice to Belle Plaine as part of its Stage 1 expan-sion efforts. TransGas is currently working on the construction of a new pipeline and metering station to deliver gas to the new Esterhazy K3 site with completion expected for later in 2012. TransGas has also helped optimize existing facilities at Esterhazy K2 and Colonsay to meet rising gas demand associated with the expansion efforts at those sites. TransGas delivers quality, reliable service to Mosaic through its commitment to a customer-driven culture that responds to customer needs and uses a collaborative approach to solve problems and create efficiencies. Mosaic looks forward to strengthening the relationship with TransGas and recognizes its contributions in helping Mosaic to fuel its future while helping grow the province.

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www.transgas.comwww.transgas.comwww.transgas.comwww.transgas.com

Mobile Compression UpdateMobile Compression UpdateMobile Compression UpdateMobile Compression Update As part of our business strategy, TransGas is committed to finding innovative ways of becoming more efficient. Mobile Compression Units (MCUs) are one way we have leveraged technology to maximize our gas injection and pipeline-boosting capabilities. With two MCUs currently in operation around the province, and a third unit added in June; the efficiencies of mobile compression are already being real-ized. The first mobile unit (MCU 1) began operations performing gas injection at the Unity gas field in the fall of 2010, to maximize the amount of gas in storage before the cold winter months. Early in 2011, when gas injec-tion was no longer needed, the unit was moved to the Success Compressor station where it performed pipeline-boosting continu-ously until May of this year. Additionally, MCU 1 aided the Success Station flow requirements when the C unit was down for major maintenance. There was one planned interruption during that length of service; in September of 2011, MCU 1 was dispatched to Shaunavon to perform draw-down compression on a length of pipe that required maintenance. Portable flare trailers were used at the same time to minimize the outage time, with 70 per cent of the gas (8.8 TJ) pumped back through the compressor into the system, and only 30 percent flared. The second MCU also performed gas injection at the Unity gas field from September to December 2010, and again from July 2011 to November 2011. Since January of 2012, it

has been performing pipeline boosting at the Unity station, and is keeping the operating cost low. In June, TransGas commissioned our third MCU, with plans to deploy it at our Bayhurst gas field — an area that until now has not had the advantage of boosting its compression. MCU 3 is ideal for this location because it has been designed for ease of use to control and monitor from our SCADA system. The addition of the third unit will allow MCU 2 to make routine trips between Unity Field and the Success Station, which leaves MCU 1 available for its optimized design; performing drawdown compression where required and remaining on standby as a backup in case of any compressor failures. Moving forward, mobile compressors will allow us to perform operations in step with supply and demand. During the summer months, MCUs can help us store more gas in the ground as we prepare for high demand during the winter months. As demand increases, the MCUs can be redeployed to help push the gas to our customers when they need it most.

DID YOU KNOW . . .

The Saskatchewan Oil and Associated Gas Workshop held in Calgary on April 18 was very well attended by TransGas’ target market. Thank you to the over 100 people from 58 companies who attended. Presentations from the Workshop can be viewed at

http://www.transgas.com/newsroom/workshop/default.asp.

TransGas 2012 TransGas 2012 TransGas 2012 TransGas 2012 Outage Scheduling Outage Scheduling Outage Scheduling Outage Scheduling

In 2012, a total of approximately 170 outages have been scheduled on the TransGas system, which is similar to the past few years. Year to date approximately 50 percent of these outages have already been completed. The main driver of these planned outages is the TransGas Pipeline Integrity Program. All of the outages completed to date and planned to be completed during the remainder of the year will have minimal customer impact.

TransGas maintains a Planned Outages web page found at www.transgas.com/infopostings/plannedoutages.asp, where TransGas customers can view scheduled out-ages and impact to service. In addition, TransGas continues to communicate all planned outages impacting customer service a minimum of one week prior to outage and for major outages a minimum of one month prior to planned outage.

DID YOU KNOW . . .

The SaskEnergy/TransGas Annual Report is available online. The Report can be viewed

at http://www.saskenergy.com/about_saskenergy/annual_report/default.asp.

www.transgas.com/infopostings/plannedoutages.asp


Increased Activity Keeps Increased Activity Keeps Increased Activity Keeps Increased Activity Keeps Coleville Plant Running StrongColeville Plant Running StrongColeville Plant Running StrongColeville Plant Running Strong

The Coleville Gas Processing Plant has been an important part of the TransGas pipeline system for 55 years. Located approximately 30 kilometres north of Kindersley in west cen-tral Saskatchewan, the gas plant came on stream in 1957 and was named after the nearby town of Coleville. Initially built to produce pipeline-specification natural gas to serve the communities in the area, the plant was sized for a maximum throughput of 50 TJ/day. After more than half a century, the amount of gas being processed at Coleville had fallen to about 13 TJ/day by 2011. At that time, it ap-peared that the plant would continue to experi-ence declining throughputs for the foreseeable future. However, since this time last year, there has been a sizeable increase in the

amount of gas being processed at the Coleville Gas Plant. Oil producers operating in west central Saskatchewan have shown an increased interest in developing new oil plays which are in turn producing more associated gas. TransGas has been working with produc-ers by providing new tie-in facilities as required to ensure that wherever practical, the associated gas is conserved, processed and delivered to Saskatchewan’s growing markets for natural gas. The Coleville Gas Plant is now processing about 25 TJ/day of natural gas and all indica-tions are that the plant throughput will increase to at least 30 TJ/day by the end of 2012. TransGas is confident that the Coleville Gas Plant will continue to play a very important role in helping oil producers conserve associated gas in west central Saskatchewan for many more years to come. Anyone interested in having their associated gas processed in the Coleville area should call TransGas at (306) 777-9436 to discuss their requirements.

Mock Emergency: Procedures Mock Emergency: Procedures Mock Emergency: Procedures Mock Emergency: Procedures Put to the TestPut to the TestPut to the TestPut to the Test

Karen Richardson, who lives on a quiet road just south of Yorkton, was awakened by a loud bang in the early hours of April 25 and knew something wasn’t right. Upon opening her front door, she noticed a strong odour accompanied by something sounding like an airplane engine. Across from Karen’s house, a car had crashed into some large, blue natural gas pipes. Karen placed a panicked call to the SaskEnergy 24/7 Emergency Dispatch line where a dispatcher immediately sent a Service Technician to the site, and contacted TransGas Gas Control. What Lorraine didn’t know was that “Karen Richardson” was actually Casey MacLeod, a TransGas Communications Officer. There was no crash scene awaiting the responders — a TransGas mock emergency was underway. In 2008, the Corporate Emergency Management Program (CEMP) was created to evaluate the emergency response readiness of SaskEnergy and TransGas. An Emergency Response Exercise Strategy was formed to en-sure employees had the skills and competen-cies needed to respond to emergency situa-tions. Scott Terlson, General Manager – TransGas Eastern District, and this year’s mock emer-gency lead, said “exercises like this help create a synergy between SaskEnergy and

TransGas responses … this is vital to ensuring public safety in any level of emergency situation.” The Yorkton mock emergency required employees to respond to the accident site in a timely but safe manner, and to answer questions on how they would handle the situation. While a few key leaders were aware of the simulated emergency plan, those directly responding were not. This year’s exercise also included Yorkton Fire Protective Services, who felt the exercise gave them a “greater

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Emergency personnel and TransGas

employees rushed to the scene.


DID YOU KNOW . . .

That following the close of the Open Season for non-standard storage

service this past April, 39,000 GJ/d of contracted rate of withdrawal became available on a first come first served basis? If you would like to discuss the benefits for your natural

gas storage portfolio, please contact your Key Account Manager.

respect for our abi l i ty to handle emergency situations.”

Terlson gave employee performance for this year’s mock emergency a high rating of eight out of ten, crediting the response time from the employees on call, their knowledge when they arrived on site, and the way 24/7 handled the initial call.

Exercises like this are always a learning experience, and Terlson noticed some ways we can improve our processes, such as taking real-time notes on what’s being said and done, and possibly having GPS devices in the vehicles to speed up the process of getting to the block valves and isolating the line. A big “thank you” to all the groups involved in this year’s mock emergency — congratulations on a job well done!

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TransGas has four major Alberta border interconnects for receipt of supply to the TransGas Energy Pool (TEP): Unity, Cold Lake, McNeill and Empress. All four intercon-nects have direct access to the Alberta market place. The total Alberta interconnect capacity from these four interconnects is currently over 260 TJ/d and will increase by 100 TJ/d later this summer to 360 TJ/d.

Year to date, the Alberta interconnect capacity utilization has been averaging approximately 75 percent, with typical average day spare of over 60 TJ/d. Year to date no restrictions have been placed on Alberta receipt service (NIT to TEP service).

Alberta Receipt Capacity UpdateAlberta Receipt Capacity UpdateAlberta Receipt Capacity UpdateAlberta Receipt Capacity Update

Employees Lend a Hand to Help Employees Lend a Hand to Help Employees Lend a Hand to Help Employees Lend a Hand to Help the Environmentthe Environmentthe Environmentthe Environment

On June 8, TransGas employees volunteered in Nature Conservancy Canada’s ‘Off Fence for Conservation.’ They geared up and headed out to a property near Lang (southeast of Regina) to help tear down two miles of dilapidated barbed wire fence. Although volunteers suffered through endless mosquito bites and plenty of pokes from barbed wire, they did it all to conserve burrow-ing owl habitats on the Regina Plains. In pre-vious years, the field at Lang was a place where burrowing owls found shelter; that was not the case this spring. No burrowing owls were found on the Lang property due to the long grass, which reaches almost three feet in some areas. Since burrowing owls prefer short grass to ensure visibility for protection, the Lang property was an unsuitable place to find shelter.

In an attempt to attract burrowing owls back to the site, the old fence needed to be torn down and replaced. A new fence will support the long term management of grazing cattle on

native vegetation communities. Through the grazing of cattle, Nature Conservancy Canada can ensure burrowing owls are provided with the habitat necessary for their survival. The ‘Off Fence for Conservation’ project is one of the many ways TransGas partners with Nature Conservancy Canada. Along with supplying volunteers for different projects, we also provide funding to make these projects possible. This part-n e r s h i p i s important to Trans-Gas because we want to do our part in the maintenance and restoration of Saska t chewan ’ s natural habitat. Since much of our field work is done on the Saskatche-wan prairies, it is vital for us to help in its sustainability.

TransGas Storage UpdateTransGas Storage UpdateTransGas Storage UpdateTransGas Storage Update As of July 01 TransGas storage customers have a total inventory in storage of 33 PJ, which is 64 percent of full based on currently contracted storage of 51.4 PJ. During the three months of April to June a total net

injection of 10 PJ occurred. Assuming all storage customers 100 percent fill their storage by the end of this summer, the remaining injection requirement as of July 01 is 18 PJ.

the mosaic company: a proud part of a growing saskatchewan

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