For more information go to · Chris Slogar Elizabeth C. Stull Marketing Director Kelly Dadich...

For more information go to napipelines.com/info

4 North American Pipelines | JULY/AUGUST 2011 napipelines.com

ON THE COVER: Tony Fernandez, Wayne Longer and Dan Macholan lead Caterpillar’s three-pronged approach to serving the pipeline industry, through its Global Pipeline Division, PLM International and Global Petroleum Division.

26 DediCATed to Pipeliners Caterpillar has established a unique distribution model to serve the industry.

By Bradley Kramer

FEATURES

32 Shale Gas in the Buckeye State The Ohio Business Development Coalition advocates for the state to

become a base of operations for natural gas production and supply. Compiled by NAP staff

36 Understanding Telematics The benefits of software and GPS technologies for large, mixed fleets.

By Sean McCormick

40 2011 Mid-Year Report A look at the major pipeline projects for this year and beyond.

By Bradley Kramer

44 Pulling It All Together Planning ahead and keeping a pipeline project on target.

By Michael Koski

DEPARTMENTS8 News

18 Project Roundup

21 Market Watch

47 Product Showcase: ROW/Land Clearing

52 Events Calendar

COLUMNS6 Editor’s Message

MARKETPLACE52 Index of Advertisers

53 Business Cards

July/August 2011Volume 4 Issue 4

North American Pipelines is published six times per year. Copyright 2011, Benjamin Media Inc., P.O. Box 190, Peninsula, OH 44264. USA 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, Canada and Mexico. Single copy rate: $10. Subscriptions and classified advertising should be addressed to the Peninsula office. POSTMASTER: send Changes of Address to North American Pipelines, P.O. Box 190, Peninsula OH 44264 USA.

Canadian Subscriptions: Canada Post Agreement Number 7178957. Send change address information and blocks of undeliverable copies to Canada Express; 7686 Kimble Street, Units 21 & 22, Mississauga, ON L5S 1E9 Canada


Publisher Bernard P. Krzys

Associate Publisher Robert D. Krzys

Editor James W. Rush

Associate Editor Bradley Kramer

Contributing Staff Editors Sharon M. Bueno

Keith Gribbins Pam Kleineke Kelly Pickerel

Creative Director W. M. Conley

Graphic Designers Sarah Hayes Chris Slogar

Elizabeth C. Stull

Marketing Director Kelly Dadich

Regional Sales Managers Ryan Sneltzer

Dan Sisko

Circulation Manager Alexis R. White

Web & Interactive Manager Mark Gorman

Conference Manager Michelle Hill

Editorial Advisory Board

Cortez Perotte Pipeline Product Engineer/Industry Representative,

Caterpillar Inc.

Todd Porter Vice President of Business Development,

New Century Software Inc.

Eric Skonberg Principal Engineer, Trenchless Engineering Corp.

Bob Westphal Senior Vice President, Michels Corp.

Editorial & Advertising Offices

1770 Main St., P.O. Box 190 Peninsula, OH 44264 USA

(330) 467-7588 • Fax: (330) 468-2289 www.napipelines.com

e-mail: [email protected]

Reprints

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

Editor’s Message

Fighting for Energy FreedomWith an economy sputtering uphill to recover from a

recession and a pipeline industry rebounding from a down-swing, a large-scale cross-country pipeline project to trans-port crude oil from Canada to refineries in the United States would provide a welcome boost.

Such a project would also help decrease dependence on hydrocarbons from overseas and improve trade between friendly neighbors. However, that project — the Keystone Gulf Coast Expansion (or Keystone XL) — is bogged down in debate while it awaits U.S. government approval to get started.

The proposed Keystone XL project is part of TransCanada’s larger Keystone Pipe-line System, a multiphase project designed to transport crude oil from Alberta to markets in the U.S. Midwest and Gulf Coast. Phases 1 and 2 are already in-service, with Keystone XL representing Phases 3 and 4, which include the construction of more than 1,650 miles of pipeline between Canada and the United States.

The Canadian National Energy Board (NEB) already approved its country’s por-tion of the project, but U.S. officials have stalled progress while politicians continue to tout energy independence. The Obama administration commissioned a report that determined the Keystone XL project “could essentially eliminate Middle East crude imports longer term,” according to a June 26 article by Rob Gillie of the Asso-ciated Press. In March, the U.S. State Department told TransCanada it would deliver its decision by the end of the year.

The problem is ExxonMobil’s 20-year-old Silvertip pipeline sprung a leak on July 1 near Billings, Mont., and spilled about 1,000 barrels of oil into the Yellowstone River, the very same river that the Keystone XL is proposed to cross. Now, Exxon’s problem has become TransCanada’s.

Opponents of the Keystone expansion have pointed to this recent oil spill to show that a new pipeline could be harmful to the environment and human health. TransCanada’s case is further hampered by its own spills on existing portions of the Keystone pipeline. The company says the incidents were a result of start-up problems and have since been resolved.

Nevertheless, the Environmental Protection Agency plans to conduct addi-tional hearings on Keystone XL and will deliver a ruling by the end of the year. The delay in approving the project could cause TransCanada and other Canadian energy companies to look elsewhere to export the country’s energy resources.

China has become a major emerging market for oil consumption, with demand expected to rise another 7 percent this year. If the United States doesn’t want Canadian oil, maybe the Chinese do. The NEB is investigating the potential of exporting oil and gas to the Pacific Rim, while reviewing Enbridge’s Northern Gate-way Project to build a pipeline system to the Pacific Coast to serve Asian markets.

If Canada ships its oil across the Pacific Ocean rather than across the U.S. border, the idea of energy independence could misfire and potentially cost the United States hundreds of thousands of infrastructure construction jobs.

Supplemental ReadingFor most of you, this July/August issue came packaged with our HDD Supple-

ment, jointly produced with our sister magazine Trenchless Technology. This bonus edition went out to 10,000 NAP readers and features articles on the latest trends and solutions in horizontal directional drilling, including a market overview, drill specs, water crossings and more. Enjoy the read.

Brad KramerAssociate [email protected]


North America News

ExxonMobil has continued to work with the U.S. Environmental Protection Agency on its cleanup and recovery efforts near Billings, Mont., after a pipeline break on July 1 released approximately 42,000 gallons of crude oil, contaminating the Yellowstone River.

Meanwhile, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a Corrective Action Order to ExxonMobil Pipeline Co. that will require the company to make safety improvements along its Silvertip pipeline.

ExxonMobil reports that it has deployed more than 76,000 ft of absorbent boom on site, with more than 6,000 ft de-ployed to clean up oil adjacent to the river; more than 3,300 absorbent pads are on site with more than 1,500 deployed.

“We have about 440 people actively involved in the re-sponse and cleanup efforts and we are making significant progress,” says Gary Pruessing, President of ExxonMobil Pipeline Co. “Active recovery continues in the zones clos-est to the spill site, but we will go as far downstream as necessary to fully understand what areas are impacted.”

Exxon is conducting ongoing air quality monitoring to confirm there is no danger to public health. Municipal water systems are being notified to monitor water quality by the EPA, but no reports of impacts have been received to date. The EPA is also monitoring water quality.

Daily aerial flights continue over the area to identify additional oil locations and monitor and direct cleanup activity. Exxon says it is also sending crews to walk parts of the shorelines where it is safe to do so. The unified com-mand is assessing the data on a daily basis and sending responders where they can safely recover oil. Eight boats are staged at Coulson Park for deployment for reconnaissance and monitoring on the river when conditions permit.

The EPA reports that its primary concern is protecting people’s health and the environment, and the agency will remain on site to ensure cleanup and restoration efforts do that. The EPA continues to hold ExxonMobil Pipeline Co., the responsible party, accountable for assessment and cleanup.

PHMSA’s Corrective Action Order will require Exxon-Mobil to re-bury the pipeline underneath the Yellowstone river bed to protect it from external damage and conduct a risk assessment on the Silvertip pipeline where it crosses any waterway. Exxon will then need to submit a restart plan before operation can resume.

“The safety of our nation’s pipelines is a priority and the investigation into this incident is ongoing,” says U.S. Transportation Secretary Ray LaHood. “It is our responsi-bility to ensure pipelines are safely delivering energy to U.S. households and businesses, and when companies are not living up to our safety standards, we will take action. We will continue to work with the EPA, while ensuring that those responsible are held accountable.”

The Silvertip Pipeline is a 12-in. pipeline approximately 69 miles long and transports crude oil from the Silvertip station in Elk Basin, Wyo., to an ExxonMobil refinery in Billings. PHMSA has three inspectors on site, and they are working with the EPA and U.S. Coast Guard to conduct investigations and assist in oil spill response activities. The cause of the release has not yet been determined.

This spring, in the wake of several major pipeline accidents, LaHood announced a pipeline safety action plan to immediately begin addressing concerns about

the state of the nation’s aging pipeline infrastructure. He called upon U.S. pipeline owners and operators to conduct a comprehensive review of their oil and gas pipelines to identify areas of high risk and accelerate critical repair and replacement work. Secretary LaHood has also proposed federal legislation to strengthen over-sight on pipeline safety. The legislation would increase the maximum civil penalties for pipeline from $100,000 per day to $250,000 per day, and from $1 million for a series of violations to $2.5 million for a series of violations. The proposal would also authorize the DOT to close regu-latory loopholes, strengthen risk management require-ments, add more inspectors and improve data reporting to help identify potential pipeline safety risks early.

Cleanup Efforts Continue on Exxon’s Silvertip PipelineU.S. DOT, EPA Directing Recovery for Yellowstone River in Montana

Cleanup crews work on containing the oil spill from ExxonMobil’s Silvertip pipeline near Billings, Mont. The leak released approxi-mately 1,000 barrels of oil, contaminating the Yellowstone River.

Explosion Causes Shutdown of TransCanada’s Bison Pipeline

TransCanada Corp. has shut down its six-month-old Bison pipeline after an explosion July 20 just outside Gillette, Wyo., according to reports.

The Engineering News-Record reported that the natural gas pipeline will remain out of commission while the cause of a blast that ruptured it this past week is investigated.

The 30-in. diameter Bison pipeline, with a capacity of 407 million cu ft per day, was transporting 365 million cu ft per day when the incident happened.

According to the Casper (Wyo.) Star-Tribune, the explosion shook nearby homes and was heard at least 30 miles away. It created a 60-ft gap in the pipeline and sent several pieces of pipe into the surrounding area.

El Paso, Spectra Energy Conduct Open Season for Marcellus Pipeline

In an effort to secure commitments from potential natu-ral gas shippers for the Marcellus Ethane Pipeline System (MEPS), El Paso Corp. and Spectra Energy announced that the jointly developed project would hold a 30-day open season.

The open season began June 27 and was set to close July 27 and was conducted to attain binding agreements from those shippers that desire ethane transportation ser-vice from West Virginia and Pennsylvania Marcellus Shale supply areas to destination interconnect points with third party ethane pipelines or storage facilities in the Gulf Coast area. The MEPS project is being designed to transport up

to 90,000 barrels per day and has an anticipated in-service date of the fourth quarter 2014.

In October 2010, El Paso Midstream Group Inc. and Spectra Energy Transmission LLC announced that they had entered into a “Memorandum of Understanding” to pursue joint development of the MEPS project. Under the terms of the agreement, the companies will each own a 50 percent interest in MEPS.

Petroleum Demand Up in June and First Half of 2011

Total petroleum deliveries (a measure of demand) rose in June, compared with May and with June a year ago and were up 1.9 percent for the first six months of 2011 over the same period in 2010. Gasoline demand was nearly flat compared with June a year ago, but up from both April 2011 and May 2011. Ultra-low sulfur diesel demand continued to register strong numbers over 2010, achieving a record high.

“The growth in overall demand is consistent with the na-tion’s modest but steady economic expansion,” says John Felmy, Chief Economist with the American Petroleum In-stitute (API). “Gasoline demand essentially treaded water while demand for ultra-low sulfur diesel continued its year-over-year increase. Gasoline demand appears to still be held back by high unemployment and consumer uncertainty. On the other hand, the robust ultra-low sulfur diesel de-mand numbers suggest U.S. manufacturing is picking up the pace.”

U.S. refinery gasoline production was at a record high for the month and for the year. For the month of June, distil-

napipelines.com JULY/AUGUST 2011 | North American Pipelines 9


late production was at a three-year high while jet fuel pro-duction was at a six-year high. Strong refinery production has reduced the need for petroleum product imports, which declined more than 30 percent in June compared with June a year ago. Crude imports declined 4.8 percent, and total imports fell 10 percent.

Crude oil production fell to a two-year low and showed year-over-year declines for the second month in a row. At 5.4 million barrels a day, crude oil production was down by 2 percent from June 2010. For the second quarter, crude production was down by 0.1 percent. The preliminary reported data to API on offshore oil wells drilled show an 82 percent decline in the second quarter of this year com-pared with last. Despite the offshore drilling decline, API es-timates onshore oil well completions, which include wells drilled on private as well as public lands, were at the highest second quarter level since 1985.

Crude stocks (excluding SPR) fell by 2.9 percent from the prior month and 1.5 percent from the prior year, but were still at the second highest stock level for any June since 1990, not counting 2010. With the exception of jet fuel stocks and residual fuel stocks, all key refined products’ stock levels showed declines in June compared with May.

BP Announces Enhanced Drilling Standards in the Gulf of Mexico

More than a year after the Deepwater Horizon oil spill, BP Exploration & Production Inc. (BPXP) will implement a new set of deepwater oil and gas drilling standards for its operations in the U.S. Gulf of Mexico, demonstrating the company’s commitment to safe and reliable operations.

The announcement was made in a letter to Michael Bromwich, Director of the U.S. Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE). The voluntary performance standards go beyond existing regulatory obligations and reflect the company’s determi-nation to apply lessons it learned from the Deepwater Hori-zon accident and subsequent oil spill.

“BP’s commitment in the wake of the Deepwater Ho-rizon incident is not only to restore the economic and environmental conditions among the affected areas of the Gulf Coast, but also to apply what we have learned to im-prove the way we operate,” says BP Group Chief Executive Bob Dudley. “We believe the commitments we have outlined today will promote greater levels of safety and preparedness in deepwater drilling.”

The foundations for these new voluntary standards for BP’s Gulf of Mexico deepwater drilling operations have been developed since the Deepwater Horizon incident and through the lessons learned. BP is now making these stan-dards public and will begin to implement them into its operations in the Gulf of Mexico.

The new voluntary standards are: BPXP will use, and will require its contractors involved in

drilling operations to use, subsea blowout preventers (BOPs) equipped with no fewer than two blind shear rams and a casing shear ram on all drilling rigs under contract to BPXP for deepwater service operating in dynamic position mode. With respect to moored drilling rigs under contract to BPXP for deepwater drilling service using subsea BOPs, the subsea BOP will be equipped with two shear rams, which will in-clude at least one blind shear ram and either an additional blind shear ram or a casing shear ram.

Each time a subsea BOP from a moored or dynamically positioned drilling rig is brought to the surface and test-

ing and maintenance on the BOP are conducted, BPXP will require that a third party verify that the testing and main-tenance of the BOP were performed in accordance with manufacturer recommendations and industry recommend-ed practice (API RP 53).

BPXP will require that laboratory testing of cement slurries for primary cementing of casing and exposed hy-drocarbon-bearing zones relating to drilling operations of deepwater wells be conducted or witnessed by a BPXP en-gineer competent to evaluate such laboratory testing, or a competent third party independent of the cement provid-er. BPXP will provide laboratory results to the applicable BOEMRE field office within a reasonable period of time.

BPXP’s Oil Spill Response Plan (OSRP) will include in-formation about enhanced measures for responding to a spill in open water, near-shore response and shoreline spill response based on lessons learned from the Deepwater Horizon oil spill.

“BP is adopting these voluntary actions as part of its com-mitment to safe and reliable operations, and to help rebuild trust in the company following last year’s accident and oil spill,” says James Dupree, BP regional president, Gulf of Mex-ico. “BP is the largest lease holder in the deepwater Gulf of Mexico and we intend to be a significant business presence here for a long time to come. We look forward to implement-ing these best practices and sharing what we’ve learned.”

In addition to these four voluntary performance stan-dards, BP has also implemented several actions that dem-onstrate commitment to excellence within its operations. These include:

• Establishing a real-time drilling operations center in Houston.

• Assessing and increasing well control competencies.• Collaboration with groups like Clean Gulf Associates

and Marine Spill Response Corp. to augment and enhance industry response technology and capabilities.

• Support of the Marine Well Containment Co. with containment knowledge, equipment and staff.

• Sharing the company’s experience in simultaneous operations, which incorporated the unprecedented use of remotely operated vehicles and close quarters management of marine response vessels and activities.

• Collaboration with BOEMRE, the Ocean Energy Safety Advisory Committee, the Center for Offshore Safety and


BP has adopted four voluntary drilling standards as an effort to improve safety and performance in its operations in the Gulf of Mexico.



others in a joint technology program focusing on BOP systems.

BP is focused on implementing these new voluntary standards in the Gulf of Mexico and expects to share information on these standards with regulators and operators in other countries as part of its ongoing sharing of lessons learned.

Safety Progress in Gulf Justifies More Permitting to Bring Back Jobs

The U.S. oil and natural gas industry has significantly improved offshore safe-ty, according to the American Petroleum Institute (API). In a testimony delivered to the U.S. Senate Subcommittee on Oceans, Atmosphere, Fisheries and Coast Guard, API’s Group Director of upstream and industry operations, Erik Milito, says that safety and offshore energy develop-ment in the Gulf can go hand in hand.

“Great strides have been made to en-hance the industry’s capability to pre-vent an incident from happening, to cap and contain a leaking well and to respond to a spill, and we’re committed to building on this progress,” Milito says. “We’re ready to fully resume operations in the Gulf, Alaska and other areas and put thousands of people back to work.”

The BP oil spill from its Macondo well was unprecedented, but so too was the industry response, Milito says. Based on the work of various industry task forces, improvements have been made in pre-vention, capping and containment and spill response. Task force recommenda-tions are driving improvement in stan-dards and practices related to well design and installation, and the industry now has the capability to quickly contain and cap a well in very deep water. The indus-try also has initiated projects to further improve oil spill response.

Going forward, Milito says, the in-dustry’s new Center for Offshore Safety, which is expected to be up and running later this year, will help the industry develop and implement “safety and en-vironmental management systems in deepwater operations, drawing on the collective knowledge and experience of the industry and promoting use of the best safety practices.” The Center is evidence of the industry’s long-term commitment to safety and continuous improvement in operations. The new Center will operate out of Houston.

“The government needs to issue leases and approve projects without unreason-able delay,” Milito says. “If permitting moves forward at a reasonable pace for projects in the Gulf, then we can put 190,000 more people to work, safely

bring more of America’s vitally needed energy to its con-sumers, and deliver many billions of dollars in additional revenue to our federal treasury.”

INGAA Outlines Plan to Achieve Pipeline Safety Goals

The Interstate Natural Gas Association of America has developed a concrete action plan to achieve the aggressive pipeline safety goals it unveiled in February. The plan in-cludes a commitment to expand pipeline integrity manage-ment principles to the entire onshore natural gas transmis-sion system operated by INGAA members.

INGAA’s core guiding principles emerged from a board-level pipeline safety task force and are anchored by an overarching goal of zero incidents — a perfect record of safety and reliability for the nation’s natural gas transmis-sion pipelines.

“After many months of hard work by member com-panies and INGAA staff, we are putting real meat on the bones of our plan to achieve the goal of a perfect safe-ty record,” says INGAA President and CEO Don Santa. “The member companies of INGAA believe that pipeline safety must be the pipeline industry’s highest priority, and we believe the commitments we have made today will move us toward our goals.”

One key commitment is the expansion of integrity management principles — currently required only for the 6 percent of natural gas transmission pipelines that are located in highly populated areas — to the entire trans-mission system operated by INGAA members. This ex-pansion will be prioritized based on population within the Potential Impact Radius (PIR) along the pipeline. INGAA members will expand the program to 70 percent of the population within the PIR by 2020 and 100 per-cent by 2030.

Because expanding the program across the entire sys-tem will require new technologies, INGAA has agreed to engage actively with the research community to de-velop new inspection tools and other technology that can address pipelines that currently are difficult to as-sess. It also will encourage consensus standards groups to adopt standardized processes for using these new technologies.

INGAA members have committed to a systematic valida-tion of records and maximum allowable operating pressure for their pipelines in highly populated areas that pre-date federal regulations. The process will address National Trans-portation Safety Board recommendations issued in the wake of the San Bruno, Calif., pipeline accident to evaluate and ensure the safety of member pipelines.

INGAA members also have committed to develop processes and technologies to enhance the protection of both the people and the property located adjacent to pipelines. INGAA members have set a response-time goal of one hour from incident recognition to the start of valve-closure procedures in highly populated areas, and have committed to engage actively with emergen-cy responders and the public to provide information about the existence of pipelines and safety procedures. INGAA members also have agreed to implement the recommended practices of the Pipelines and Informed Planning Alliance, a November 2010 initiative to reduce risks and improve the safety of affected com-munities and pipelines through risk-informed land use near transmission pipelines.

Tulsa Pipeline Expo Scheduled for Aug. 29-31Pipeliners are getting ready to make Tulsa, Okla., the

center of excitement for the industry with the Tulsa Pipe-line Expo, Aug. 29-31. The event will feature educational sessions and a tradeshow for attendees to learn about the latest topics and solutions for the pipeline industry.

The Expo kicks off with a golf tournament at the Cedar Ridge Country Club, followed by a networking event at ONEOK Field. The evening will feature dinner, drinks, live music and a fireworks display, as well as a visit from the Oklahoma Sooners football team.

The educational sessions start Tuesday, Aug. 30, at the QuickTrip Center, with topics including Energy Outlook, Emerging Technologies, Disaster Response in the Field and Integrity Management. The tradeshow also kicks off Tuesday, featuring the latest products and services for the pipeline industry. The night concludes with a variety of networking events.

The Expo wraps up Wednesday, Aug. 31, with breakfast and guest speaker Jeff Magee, an author and consultant for business marketing. The Energy Roundtable concludes the event with experts from Oklahoma’s energy industry pro-viding a forecast of the industry from their unique vantage before opening the roundtable discussion aimed at educat-ing contractors on successful contract negotiations with energy companies.

Not only is the Tulsa Pipeline Expo (TPE) geared toward the energy pipeline industry, its organizers also work to make Oklahoma an international hub for the industry.

“While the Expo is an annual event, TPE continues to work year-round to improve domestic and interna-tional commerce for Oklahoma,” says Bill Solomon, Chairman of the event. “Our objectives are to educate the marketplace and complement regional initiatives to improve the Oklahoma business climate. We are pro-moting the technical innovations within the state and integrating a strong field of companies with proven track records.”

In addition to its educational component, the Tulsa Pipe-line Expo provides attendees with a chance to network with other pipeline professionals, as well as highlighting the region’s strength in the energy marketplace.

“Oklahoma has the manufacturing, production, process-ing, services and distribution resources to meet the needs of the energy and infrastructure markets,” Solomon says. “We have the capacity to market, transport and access businesses and ports across the United States within days. The Expo provides the opportunity to meet many of these companies in one place.”

For more information about the Tulsa Pipeline Expo or to register online, visit www.tulsapipelineexpo.com.

U.S. DOT Seeks to Improve Pipeline Control Room Management

The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) an-nounced that a new regulation to improve the management of pipeline control rooms will go into effect more than a year earlier than originally planned. The final rule will in-clude procedures to improve training, mitigate fatigue and clearly define roles and responsibilities for employees in control rooms for DOT-regulated pipelines.

“Safety is our top priority,” says U.S. Transportation Secre-tary Ray LaHood. “These new regulations will help pipeline operators make critical decisions that could stop a pipeline



line projects in the country, positioning TransCanada in strong consideration for future opportunities.

The Guadalajara pipeline connects to a liquefied natural gas (LNG) “regas-ification” facility located near Manzanillo, in the state of Colima, Mexico. It has a capacity to transport 500 million cu ft of natural gas per day to a near-by CFE-owned power plant and 320 million cu ft per day to the Pemex-owned national pipeline system near Guadalajara, in the state of Jalisco, Mexico.

TransCanada has put into service seven other major projects in the last year. The Keystone Pipeline System Phases I and II are delivering oil; the Ground-birch and Bison natural gas pipelines are transporting natural gas to market; Maine’s largest wind project — Kibby Wind — became fully operational in late October; and the Halton Hills Generating Station in Ontario and Coolidge Generating Station in Arizona have begun producing power.

rupture or leak before it causes harm to people or the environment.”

Control room operators monitor haz-ardous liquid and natural gas pipelines through computer equipment that re-cords and displays operational informa-tion about the pipeline system. Critical functions such as pressure, flow rates and valve positions allow controllers to make informed decisions about what actions to take. These monitoring and control ac-tions are vital to managing pipeline op-erations along hundreds and frequently thousands of miles of pipeline.

This rule will accelerate pipeline op-erator requirements by as many as 16 months. These requirements will estab-lish shift lengths and maximum hours-of-service and develop training programs for control room operators.

“We pushed to accelerate these im-provements because control rooms have an impact on how well and how quickly an operator responds to leaks or other problems,” says PHMSA Administrator Cynthia Quarterman. “This rule will in-crease the safety of pipeline operators’ control rooms and help ensure employ-ees have the training they need.”

The June 15 action was also a part of the department’s National Pipeline Safe-ty Action Plan to address immediate con-cerns in pipeline safety, such as ensur-ing pipeline operators know the age and condition of their pipelines, proposing new regulations to strengthen reporting and inspection requirements, and mak-ing information about pipelines and the safety record of pipeline operators easily accessible to the public.

TransCanada Completes Guadalajara Pipeline in Mexico

TransCanada Corp. has announced that its $360 million Guadalajara Pipeline has been completed. The entire capacity of the 192-mile, 30-in. diameter pipeline is held under a 25-year contract with Comisión Federal de Electricidad (CFE), Mexico’s state-owned electric company.

“The Guadalajara pipeline represents key infrastructure that will allow CFE to continue developing a natural gas-fired electricity generation fleet in the rapidly growing central region of Mexico,” says Russ Girling, TransCanada President and CEO. “We are very pleased to be part of this overall development plan.

“Completion of the Guadalajara pipe-line represents another milestone in Tran-sCanada’s ongoing capital program.”

Guadalajara is TransCanada’s sec-ond pipeline investment in Mexico and Girling notes that the project highlights the company’s ability to complete pipe- For more information go to napipelines.com/info

TMK IPSCO Oklahoma Plant Reaches New Labor Agreement

Global pipe producer TMK IPSCO and members of the United Steelworkers (USW) Local 9368 at the company’s Catoosa, Okla., plant have reached agreement on a new five-year labor contract. The new contract replaces one that expired May 3 and will remain in effect through May 3, 2016. The contract covers approximately 160 production and maintenance employees.

The terms of the new agreement include increases in base wages each year of the contract, a higher company 401(k) match and improvements to health care benefits and costs.

“We appreciate the union’s commitment to the Catoosa plant’s long-term success,” says John DeSanzo, Plant Man-ager of the Oklahoma facility. “TMK IPSCO’s commitment to quality and innovation is shared by all of our employ-ees. This five-year contract allows all of us to maintain the focus on continuous improvement and meeting our customers’ needs.”

TMK IPSCO operates in North America as a division of TMK, a global market leader in energy pipe production. TMK operates 24 production facilities around the world. TMK product offerings include a wide range of seamless and welded energy tubular products including oil and gas drill pipe, well casing and tubing, line pipe, LD pipe, stan-dard pipe, hollow structural sections and related services. TMK also manufactures premium connections for oil and natural gas drilling and production.

AEM Releases Spanish-Language Hydraulic Excavator Safety Manual

The Association of Equipment Manufacturers (AEM) has developed a new Spanish version of its Hydraulic Ex-cavator Safety Manual in a convenient “flip-style” Spanish/English format. The manual outlines safe machine operation and maintenance guidelines in a concise and well-illus-trated layout for easy com-prehension.

AEM updated its Hy-draulic Excavator Safety Manual last year with new and expanded material

reflecting current industry practices. Both the Spanish/English and English-only AEM Hydraulic Excavator Safe-ty Manuals include a new section on trenching safety. Expanded or additional material includes safe mounting and dismounting; utility locating practices; attachment installation; installation, use and maintenance of quick- couplers; and use of newer safety design features such as gate or armrest-based hydraulic control locks.

AEM safety manuals illustrate typical worksite and equip-ment hazards as well as safe practices in equipment prepara-tion, operation, maintenance and transport. They are ideal for group safety sessions on the job or in the classroom as well as individual usage. The manual is not a substitute for manufacturer manuals.

AEM safety and training materials cover more than 40 types of equipment used in agricultural, construction, for-estry and utility applications. All manuals, videos and re-

lated safety and training products are available online at www.aem.org in the AEM store. Some safety materials are offered in downloadable files or in DVD format. AEM mem-bers receive discounts on select materials.

Oil and Gas Industry Optimistic About GrowthAgainst a backdrop of renewed global corporate confi-

dence, oil and gas companies anticipate growth in 2011, ac-cording to Ernst & Young’s Capital Confidence Barometer. Of the 60 industry respondents, 37 percent are focused on growing the company organically by adding projects and properties, and 46 percent are actively looking to grow in-organically through mergers and acquisitions.

Oil and gas industry respondents were broken out from the broader group of 1,000 respondents to the Ernst & Young survey. The industry group was largely optimistic about the economy. Sixty-five percent said they are more optimistic today than they were last October. An addi-tional 18 percent continue to feel optimistic since the last survey.

Though optimistic, oil and gas respondents’ greatest ar-eas of focus, as a result of the economic situation, continue to be creating cost reductions and operational efficiencies and improving cash flow and liquidity. Most of the respon-dents expect financing will be readily available to fund ma-jor acquisitions and/or capital projects in the coming year. Furthermore:

• 23 percent of respondents believe financing will be available within six months

• 23 percent of respondents believe financing will be available in six to 12 months

• 18 percent of respondents believe financing will be available in one to two years

• 33 percent believe that access to finance is not a problem“With oil prices high and the fundamentals for gas

gaining strength, we expect really strong growth-oriented investment over the next year,” says Jon McCarter, Ernst & Young’s Americas Oil and Gas Transactions Leader. “Politi-cal unrest in the Middle East continues to put the spotlight on developing energy sources outside of that region and companies are working to respond to that need, as well as higher demand resulting from economic growth.”

Tamper Proof Conducts Successful Pipeline Security Trial

Adapting technology to suite oil and gas pipeline opera-tions, Tamper Proof Global Systems held successful pipeline security product trials on May 6. The Massachusetts-based security technology solutions provider specializes in the ar-eas of pipeline, infrastructure and port and container secu-rity, as well as nuclear non-proliferation efforts.

Manufacturing processes and conductivity tests were performed at the Lebanon, Tenn., manufacturing plant of Perma-Pipe Inc., the largest manufacturer of pre-insulated piping systems in North America.

Tamper Proof’s pipeline security system provides instan-taneous monitoring, which immediately alarms upon de-tection of either an intrusion or extrusion event (such as terrorism, theft, corrosion, leak or pipeline defect).

“Pipeline security is increasing in importance every day,” says Dr. Gilbert D. Beinhocker, founding Chairman and CEO of Tamper Proof. “The successful trial underscores that Tamper Proof’s pipeline security system is robust, reliable, durable, binary fail/safe, and it is suited for difficult field and environmental conditions.”




and Red River Specialties Inc., has acquired Townsend Chemical LLC, an herbicide distributor that provides vegetation management products and services, such as those used in right-of-way maintenance for oil and gas pipelines. Townsend Chemical will merge with and assume the Red River Specialties name, with the goal to grow the combined company’s indus-trial vegetative management (IVM) business segment to form an industry-leading distribution business.

Red River Specialties, based in Shreveport, La., is a leading herbicide distributor in the forestry, IVM, range and pasture and aquatics markets. The IVM market is a particular focus for growth for Red River Specialties, driven by population growth; regulation and industrial, maintenance and safety requirements. The merger will make Red River Specialties a clear IVM market leader, offering customers an enhanced level of

Optical fiber or copper wire fabric sen-sors, exclusively woven for Tamper Proof by Sefar Inc., are sandwiched between three specially developed resins to produce a continuous protective security coating over the entire outside surface of a pipe-line. This ensures immediate detection of an intrusion event as small as a bullet hole or a pressurized extrusion leak of the same size, which could be caused by cor-rosive processes or a pipeline manufactur-ing defect. Encapsulating resins have been specially developed for Tamper Proof un-der an exclusive supply agreement with Isothane Ltd., a U.K.-based manufacturer of industrial coatings.

Tamper Proof provides unique, patent-ed and proprietary technology to secure any volumetric space to any specified geometric shape or resolution from in-trusion on a fail/safe basis.

Denso Introduces a New Corrosion Protection System

The Tank Base Protection System is the latest product from Denso in its lineup of storage tank corrosion protection.

Storage tanks have a major prob-lem with corrosion that occurs around the tank base. Due to gaps between the bottom plate and concrete plinth, water and air can penetrate and start corroding this area of the tank, which can lead to the tank being shutdown for repair or replacement.

Denso’s new Tank Base Protection Sys-tem provides a cost effective and com-mercially proven repair solution for out-er tank bases and chimes. Employing a series of tapes and coatings, Denso’s pro-tection system will help seal these gaps to protect the tank base from further cor-rosion and shields it from environmen-tally corrosive agents.

The protection system is easily hand applied to tank bases, using Denso’s product lines of primers, mastics, tapes and topcoats.

Townsend Chemical Merges With Red River Specialties

Specialty Professional Products Inc. (SPP), parent company of ADAPCO Inc.

service, a larger range of product choices and expanded regions that are streamlined for more comprehensive coverage.

“Our objective in combining these companies is to grow the industry leadership position each has earned, through a continued investment in people and products,” says Steve Burt, President and CEO of Specialty Professional Prod-ucts. “We will maintain integrity as the cornerstone of our business, as well as an ongoing commitment to delivering exceptional service and fostering our solid customer and valued partner relationships.”

Andy Pierce, who will assume the role of vegetation man-agement division manager for Red River Specialties, adds: “Bringing to this position extensive experience dealing with customers’ needs in the industry, I look forward to working with the new team to ensure our customers receive the very highest quality of service.”

US Radar Offers Self-Contained Subsurface Penetrating Radar System

Featuring a technologically advanced, yet simple touch-screen operating system and a variety of antenna frequency options, The Seeker SPR from US Radar is an easy-to-operate sub-surface penetrating radar system that is able to infiltrate numerous surfaces such as soil, clay, concrete and brick. The Seeker integrates a complete imaging system into one portable unit, making it a convenient and practical solution for a variety of industries, including general and underground construction, pipeline installation, struc-tural and civil engineering, environmental and under-ground utility.

By transmitting energy pulses through a variety of medi-ums, the system is able to display an image of the sub-surface on the operator interface. Users have the ability to set a vari-ety of parameters prior to each unique survey for maximized efficiency. Parameters including soil settings, algorithms and color palette may be set quickly and easily via the touch screen. Furthermore, the system can be set to focus on a particular depth range, useful if the approximate depth of an object is known.

To accommodate a broad range of detection needs, five antenna frequency op-tions are available and are easily interchangeable for those with multiple anten-na needs. The highest reso-lution option, 2,000 MHz, can detect in depths up to 1 ½ ft and see the smallest objects, such as fine wire and cracks in concrete. At

a lower resolution, the 1,000 MHz detects slightly larger ob-jects including rebar and wire mesh in depths up to 3 ½ ft. The most popular and versatile unit, the 500 MHz, offers a detection depth up to 14 ft and is ideal for recognizing soil disturbances and finding large and small pipes and cables. The 250 MHz and 100 MHz options can see up to 30 and 100 ft deep, respectively, and are best for detecting size-able objects such as bedrock and large pipes. All maximum depths are based on ideal material conditions and may in-crease or decrease as conditions change.



The following oil and gas pipeline projects have been announced. Projects are in order of approximate starting date. All Projects are for 2011 unless noted otherwise.

SPT Energy Group LLC was awarded a contract to provide pipe receipt inspection, FBE coating inspection, CWC inspection and double-joint welding inspection services in New Iberia, La., for a new 180-mile hydrogen pipeline project for Air Products and Chemicals Inc. Approximate start date: April 4.

SPT Energy Group LLC was awarded a contract to provide pipe manufacturing, FBE/ARO Coating, Double Jointing and rail car load-out inspection services of approximately 77.7 miles of 30-in. and 68 miles of 36-in. pipe in association with Eagle Ford White Kitchen to Yoakum Project. The inspection will occur at pipe mills in Mobile, Alabama, and Panama City, Florida. Approximate start date: May 24.

Apex Pipeline Services Inc. was awarded a contract by Eureka Hunter for the installation of 10 miles of 20-in. pipeline, and the fabrication of valve and launcher/receiver assemblies in Tyler County, W.Va. Headquarters is Wick, W.Va. The superintendent is Robert Keaton. Approximate start date: June 6.

Apex Pipeline Services Inc. was awarded a contract by Northeast Natural to install approximately 3,800 ft of 8-in. steel pipeline and related piping in Monongalia, W.Va. Headquarters is Westover, W.Va. The superintendent is Cliff Frymer. Approximate start date: June 28.

Laney Directional Drilling Co. was awarded a contract by U.S. Pipeline Inc. to install 2,070 ft of 24-in. pipeline via directional drilling in Sullivan County, Tenn. Headquarters is on the jobsite. The superintendent is T.J. Strickland. Approximate start date: June 28.

Letourneau Products Mfg. Corp. was awarded a contract by Otis Eastern Service Inc. for clearing, grubbing and matting of approximately 9.2 miles of 16-in. pipeline in Broom County, N.Y. Headquarters is Windsor, N.Y. The superintendent is Claude R. St. Pierre. Approximate start date: June 28.

Snelson Cos. Inc. was awarded a contract by Enterprise Products Co. to install 15 miles of 30-in. pipeline in Sublette County, Wyo. Headquarters is Pinedale, Wyo. The superintendent is Keith Maxwell. Approximate start date: June 28.

Letourneau Products Mfg. Corp. was awarded a contract by U.S. Pipeline Inc. for clearing, grubbing and matting of approximately 11.7 miles of 42-in. pipeline in Elmore County, Ala. Headquarters is Elmore, Ala. The superintendent is Mark A. Letourneau. Approximate start date: July 1.

BigInch Fabricators and Construction Inc. was awarded a contract by Panhandle Eastern to complete nine pipe replacements on a 22-in. pipeline in Madison, Blackford and Adams counties, Ind. Headquarters is Gas City, Ind. The superintendent is Frank Ayers. Approximate start date: July 5.

Laney Inc. was awarded a contract by Troy Construction for road boring on 56 miles of 24-in. pipeline in Goliad and Refugio counties, Texas. Headquarters is Berclair, Texas.

The superintendent is Mike Dobbs. Approximate start date: July 5.

Northern Clearing Inc. was awarded a contract by U.S. Pipeline Inc. for right-of-way clearing for approximately 7 miles of 12-in. pipeline in Lewis County, W.Va. Headquarters is unknown. The superintendent is Duanne Kmieciak. Approximate start date: July 5.

Pe Ben USA Inc. was awarded a contract by Evraz Inc. to offload 2 miles of 42-in. steel pipe in Prince William County, Va. Headquarters is Manassas, Va. The superintendent is Greg Michel. Approximate start date: July 6.

U.S. Pipeline Inc. was awarded a contract by Southern Natural to take up 11.7 miles of 16-in. pipeline and replace with 42-in. pipeline and related fabrication in Elmore County, Ala. Headquarters is Elmore, Ala. The superintendent is Thad Hutchens. Approximate start date: July 6.

Blackwell Enterprises Inc. was awarded a contract by Henkels & McCoy to perform right-of-way restoration on approximately 115 miles of 30-in. pipeline in Potter, Tioga, Bradford, Susquehanna, Wayne and Pike counties, Pa. Headquarters is Wayne, Okla. The superintendent is Bob Blackwell. Approximate start date: July 7.

Midwest Underground Inc. was awarded a contract by Panhandle Eastern to install a 30-in. launcher in Lucas County, Ohio. Headquarters is unknown. The superintendent is Jeff Thomason. Approximate start date: July 7.

Terra Restoration Services LLC was awarded a contract by Regency Gas for maintenance work on right-of-way restoration Bienville, Red River, Jackson, Ouachita and Richland parishes, La. The superintendent is Shawn Sammons. Approximate start date: July 7.

Henkels & McCoy Inc. was awarded a contract by Buckeye Partners LP for facility modifications on 10- and 12-in. pipelines in Allegheny County, Pa. Headquarters is unknown. The superintendent is Richard Hill. Approximate start date: July 8.

Appalachian Pipeline Contractors LLP was awarded a contract by Williams Field Services to install 33.65 miles of 24-in. pipeline in Susquehanna, Wyoming and Luzerne counties, Pa. Headquarters is Tunkhannock, Pa. The superintendent is Jimmy Crotts. Approximate start date: July 11.

BigInch Fabricators and Construction Inc. was awarded a contract by Kinder Morgan to install 400 ft of 6-in. pipeline and 400 ft of 8-in. pipeline in Louisa County, Iowa. Headquarters is Columbus Junction, Iowa. The superintendent is Jerry Neal. Approximate start date: July 11.

Laney Inc. was awarded a contract by Troy Construction of road boring on 50 miles of 30-in. pipeline in Dimmit and LaSalle counties, Texas. Headquarters is Catarina, Texas. The superintendent is Grady Keller. Approximate start date: July 11.

North American Pipelines Project Roundup

Listings Contributed by




Miller Pipeline Corp. was awarded a contract by Williams Mid-Stream to install 3.4 miles of 10-in. pipeline in Washington County, Pa. Headquarters is unknown. The superintendent is Steve Drake. Approximate start date: July 13.

Midwest Underground Inc. was awarded a contract by Lavrel Mountain Midstream to install 9 miles of 12-in. pipeline in Greene County, Pa. Headquarters is unknown. The superintendent is Gary Sanders. Approximate start date: July 14.

Rockford Corp. was awarded a contract by Williams Northwest Pipeline to install 7.76 miles of 20-in. pipeline in Clackamas and Marion counties, Ore. Headquarters is Molalla, Ore. The superintendent is Richard Rhodes. Approximate start date: July 14.

Laney Inc. was awarded a contract by Willbros for road boring on 78 miles of 30-in. pipeline in LaSalle, McMullen, Atascosa and Karnes counties, Texas. Headquarters is George West, Texas. The superintendent is Jerry Cassell. Approximate start date: July 11.

Latex Construction Co. was awarded a contract by Williams Transco to install a meter station in Coweta County, Ga. Headquarters is unknown. The superintendent is Bill Burt. Approximate start date: July 11.

Midwest Underground Inc. was awarded a contract by Kinder Morgan for an anomaly dig on a 30-in. pipeline in Clinton County, Ill. Headquarters is unknown. The superintendent is Ken Leslein. Approximate start date: July 11.

Miller Pipeline Corp. was awarded a contract by Midwestern Gas Transmission to relocate 1,200 ft of 30-in. pipeline in Pike County, Ind. Headquarters is unknown. The superintendent is Greg Frazier. Approximate start date: July 11.

Price Gregory International Inc. was awarded a contract by TransCanada to install two 12-in. hot taps on a 36-in. pipeline in Marshall and Nemaha counties, Kan. Headquarters is Marysville, Kan. The superintendent is Allen Collier. Approximate start date: July 11.

Snelson Cos. Inc. was awarded a contract by Questar Pipeline Co. for anomaly digs in Morgan County, Utah. Headquarters is Morgan, Utah. The superintendent is Don Cupit. Approximate start date: July 11.

Utility Line Services Inc. was awarded a contract by Buckeye Pipeline for anomaly digs in Columbiana and Mahoning counties, Ohio. Headquarters is Birdsboro, Pa. The superintendent is Pat Bollendorf. Approximate start date: July 11.

Henkels & McCoy Inc. was awarded a contract by Algonquin Gas Transmission to install seven emergency anomaly digs in Westchester County, N.Y. Headquarters is unknown. The superintendent is Richard Hill. Approximate start date: July 12.

Laney Directional Drilling Co. was awarded a contract by Culy Construction to install 1,266 ft of 6-in. pipeline via directional drilling in Franklin County, Ohio. Headquarters is on the jobsite. The superintendent is T.J. Strickland. Approximate start date: July 13.

Snelson Cos. Inc. was awarded a contract by Enterprise Products Co. to install 30 miles of 36-in. pipeline in Rio Blanco and Garfield counties, Colo. Headquarters is Meeker, Colo. The superintendent is Jimmy Burns. Approximate start date: July 15.

U.S. Pipeline Inc. was awarded a contract by Dominion Transmission Inc. to take up and re-lay 6.7 miles of 8- and 12-in. pipelines in Lewis County, W.Va. Headquarters is Jane Lew, W.Va. The superintendent is Wayne Fontenot. Approximate start date: July 15.

Right-of-Way Clearing and Maintenance Inc. was awarded a contract by Michels Corp. for right-of-way clearing of 54.6 miles of 24-in. pipeline in Waynesburg and Delmont, Pa. Headquarters is unknown. The superintendent is Richard Brown. Approximate start date: mid-July.

Right-of-Way Clearing and Maintenance Inc. was awarded a contract by Precision Pipeline LLC for right-of-way clearing of 49 miles in Waynesburg, Pa., and Moundsville, W.Va. Headquarters is unknown. The superintendent is Neil E. Kinner. Approximate start date: mid-July.

Precision Pipeline LLC was awarded contracts by Dominion Transmission for the following: 1) install 44 miles of 30-in. pipeline in Greene County, Pa., and Marshall County, W.Va. Headquarters is Waynesburg, Pa. The superintendent is Hubert Ross. And 2) install 27,000 ft of 20-in. pipeline in Kanawha County, W.Va. Headquarters is Chelyan, W.Va. The superintendent is Matt Holley. Approximate start date: July 18.

Utility Line Services Inc. was awarded a contract by Williams Transco to relocate an 8-in. pipeline in Montgomery County, Pa. Headquarters is Birdsboro, Pa. The superintendent is Pat Bollendorf. Approximate start date: July 18.

Snelson Cos. Inc. was awarded contracts by Williams Northwest Pipeline for the following: 1) install a 36-in. receiver and 30-in. valve sets in Skagit County, Wash. Headquarters is Sedro-Woolley, Wash. The superintendents are Kiley Howe and Mike Swanson. Approximate start date: July 11. And 2) install 26-in. launchers, receivers and block valves in Skamania and Klickitat counties, Wash. Headquarters is unknown. The superintendent is Don Adkerson. Approximate start date: July 21.

Letourneau Products Mfg. Corp. was awarded a contract by Otis Eastern Service Inc. for clearing, grubbing and matting for approximately 14.7 miles of 24-in. pipeline in Steuben County, N.Y. Headquarters is Big Flats, N.Y. The superintendent is Claude R. St. Pierre. Approximate start date: Aug. 7.



Want to see your project here? Send submissions to Associate Editor Brad Kramer at [email protected] with the subject heading “Project Roundup.”

The economy is recovering and contractors should see signs of improvement in 2011, according to FMI, a research and consulting firm that tracks the engineering and construction industry. The firm’s latest “Construction Outlook,” for the second quarter 2011, shows signs of im-provement for the economy with a more bullish trend in the stock market since the bottom point of the recession. Additionally, FMI forecasts energy-related construction will continue to be a growing market, as there are no signs that consumer demand is dropping.

However, the costs of construction materials have also been rising faster than the slow increase in construction activity would suggest. Two of the suspected “culprits” for rising prices include speculators expecting sharp increases in growth, particularly in China, and the rising cost of oil. Recently, commodities investors woke up to the idea that the recovery may once again be delayed. Their concerns are justified when one considers the uncer-tainties in the news, including a slow-down in GDP growth to just 1.8 percent after a solid fourth quarter 2010 pace of 3.1 percent. The aftereffects of numerous natural disasters are yet untallied losses affecting production, consumer confi-dence and peoples’ lives.

Add to the list the uncertainties of political upheaval in the Middle East and northern Africa; the resurgence of concern over the European debt crises, particularly Greece; and the ongo-ing budget battle in the U.S. Congress. However, this pullback in commodity prices is likely to be short-lived as we realize that oil is becoming scarcer and governments and businesses will begin to recover from disasters and need many resources, including capital, to do so.

Construction employment remained abysmal and is little changed since the depth of the recession. Despite all that, consumer confidence has been improv-ing. It may be that the fundamental economy is strong enough to shake off all the uncertainties and overcome adversity to grow and recover much like strong trees in na-ture do. That is the hope, at least. While FMI doesn’t count much on hope for its forecast, the firm thinks there are a few signs of fundamental growth returning to the market.

It is worth noting that most of the construction areas showing growth, excluding residential, are in markets related to infrastructure. This represents a mixture of private and public work and sometimes partnerships between public and private funding.

Power will continue to be a growing construction mar-ket (2 percent growth for 2011), as there is no sign that

our need for more of it will abate. FMI expects this growth to accelerate over the next five years. Although more attention is expected to be paid to renewable energy sourc-es, some of which is mandated or targeted by federal and state governments, the increasing production of natural gas from shale formations is driving pipeline construction. The much-expected “nuclear renaissance” could stall as regulating bodies and engineers reassess safety measures based on the devastating results of multiple catastrophes at Japan’s Fukushima nuclear plant.

Uncertainty surrounding emission standards will contin-ue to discourage the development of new coal-fired assets, and gas-fired capacity will be a vital part of base-load power generation construction going forward. Construction of new natural gas-fired generation has grown at more than 20 percent per year since 2005, although it has slowed over the last couple years, according to a 2010 FMI report.

Everything is not rosy for natural gas, however. According to the U.S. Environmental Protection Agen-cy, roughly 3 trillion cu ft of methane leaks into the air every year. The U.S. Energy Department projects world-wide gas production to rise nearly 50 percent in the next 20 years; emissions through undetected leaks could soar unless monitoring is significantly expanded.

In the now infamous “Pickens Plan,” T. Boone Pickens cites natural gas as the key to American energy indepen-dence. And while it may indeed offer much more promise than petroleum importation from OPEC and the Middle East, a similar problem could arise with natural gas as it becomes further integrated into generation and perhaps


Market Watch

Slow GrowingFMI Reports Signs of Improvement in Construction Industry

For more information go to napipelines.com/infoFor more information go to napipelines.com/info

transportation infrastructure. At 6 trillion cu m (m3), the United States’ proven reserves of natural gas are multiple times less than those of Russia (47 trillion m3), Iran (28 tril-lion m3) and Qatar (22 trillion m3).

Transmission and DistributionJohn Maynard Keynes saw the government as a spender

of last resort during economic crises and was confident it could be effective in taking a long-term view to organize and encourage investment. President Barack Obama may have torn a page from the Keynesian ideology — of all the power construction segments, transmission and distri-bution (T&D) is the most positively impacted by federal government oversight, regulation and funding.

FMI has forecasted positive but unbalanced growth for gas pipeline construction from 2010 and beyond. New ser-vice construction is essentially nonexistent, while high-er-pressure distribution and pipeline-replacement work is exhibiting significant growth. Overall FMI forecasts 3 to 5 percent annual growth for the gas and liquids T&D construction market. This cumulative growth rate will accelerate once the current housing inventory is largely absorbed.

According to Jeff Wright, Director of Energy Projects for the U.S. Federal Energy Regulatory Commission (FERC), 2009 had 172 miles of transmission pipe approved for construction and was a slow year compared to 2008, in which 2,140 miles were approved.

The advances in hydraulic fracturing to extract natural gas from shale formations continue to drive the market.

Extraction of shale gas, particularly from the Rockies and Appalachian regions, has grown rapidly and now accounts for approximately 5 percent of total U.S. production, according to the Gas Technology Institute (GTI).

The growth in domestic reserves has driven the construc-tion of gathering line networks over the last five years, but it has not been without its problems, especially regarding continuing concerns about the potential risk to drinking water from hydraulic fracturing fluids. Over the long term, FMI expects growth in the construction of gathering lines to be directly related to the upstream gas sourcing and drilling efforts. More stringent environmental and permitting requirements will slow or lengthen this effort. According to Neil Ellerbrook, Chairman and CEO of Vectren Corp., “Our industry will probably see more regu-lation, especially in the area of access to new natural gas supply. On the other hand, given the fact that our custom-ers have been leaders in energy efficiency and conservation for the past 40 years, we are well positioned.”

Natural gas represents a cheap, relatively clean fuel source, as various forms have very few or only one carbon atom, making it the cleanest fossil fuel in terms of carbon emissions. As of 2010, more than 17,000 of the 27,000 miles of pipeline planned or under construction before 2012 will transport natural gas.

Pipeline owners and operators are particularly wary of the federal government’s more widespread regulation of emis-sions. The EPA’s final rule on who has to report greenhouse gas emissions leaves out interstate pipelines. However, it remains unclear as to whether the pipeline industry will


be mentioned specifically in yet-to-be published require-ments. Pipelines generate greenhouse gases from at least two significant sources: the engines that run compressors and the methane from the compressor itself.

Canada is an increasingly important trading partner as the United States looks to reach the goal of reducing Middle

Eastern oil imports by 75 percent by 2025, a desire set forth by former U.S. President George W. Bush.

Currently, Canada is the largest source of crude and crude product imports to the United States, and the only supplier that sends oil over land. Once reaching the Unit-ed States, the vast majority of movement of crude is via pipeline. A number of pipeline projects are under way while others, such as the Keystone XL pipeline, await approval for construction.

Your view of the power construction market depends on two characteristics: where you sit geographically and your ability to understand what energy asset owners and opera-tors need. Economic conditions are improving and financial constraints are easing, but the uncertainty of governmental influence is raising the risks and challenges in this market. Owners of energy infrastructure will tend to be more con-servative and focused in their spending habits over the next year or more, while designers and contractors will have to have clarity about the direction, velocity and behavior of the markets they serve.

Unlike America’s private companies, power utilities and energy companies have long been guided by governmen-tal and regulatory pressures. Perhaps this is why Americans who revile at the thought of state-controlled enterprise in industries such as banking and insurance are happy to put pressure on politicians to improve power infrastructure.

This data was provided by FMI, a management consulting and investment banking firm for the engineering and construc-tion industry.



Advertorial Advertorial

For more information go to napipelines.com/infoAdvertorial Advertorial

The transient nature of pipeline construction requires a unique approach to meeting the demands of a unique

industry. Location and timing are the tag-team essentials of convenience, and one company has masterminded a distribution system that parallels the ebb and flow of the pipeline industry.

One of the most recognizable brands in construction equip-ment, Caterpillar has developed an innovative distribution model that is solely focused on pipeline construction.

Through its dedicated global dealer Pipe Line Machin-ery International, or PLM for short, Caterpillar supplies pipeline contractors with the specialized equipment they need, when they need it and where they need it. In addi-tion to PLM, Cat serves the pipeline industry through its Global Pipeline and Global Petroleum divisions. This three-pronged approach provides pipeliners with a dedicated partner in the completion, operation and maintenance of energy transmission projects.

Cat has been heavily involved with the pipeline industry since the 1950s, when the company acquired the Trackson Co. in 1951, according to Dan Macholan, General Man-ager of Caterpillar’s Global Pipeline Division. However, Trackson had been building sidebooms for Caterpillar tractors since 1936. After the acquisition, Cat introduced its first purpose-built pipelayer in 1955 with the release of the 583C.

“When you look at the pipeline industry compared to other segments of Cat’s business, it’s a very unique segment,” Macholan says. “I would say four key things that separate the pipeline business are: First, customers are extremely transient and highly mobile. They move and continue to move at rate of about 2 km a day. Second, they rely on purpose-built machinery. Third is they tend to prefer a short-term commitment for the equipment

they use. Fourth, the business variability in pipelines is unlike any other sector that I have been involved with at Cat. Addressing these requirements drove us to our unique distribution model.”

The issues that keep Macholan’s customers up at night are the business variability, project mobilization and en-suring that the project meets various environmental and regulatory requirements. Because stakeholder companies have to jump through the hoops of governmental permits in order to get a pipeline approved, project start times and deadlines vary greatly. Contractors must be ready to roll at a moment’s notice.

“When a company finally decides that, yes, they are going to do a project, they tell the pipeliner, ‘We want you there to start in a few weeks,’” Macholan says. “We all know that it takes longer than that to get crews mobilized. It’s almost a gypsy-like requirement of having to roll in and out of a location. They’re basically creating a moving assembly line.”

The difficulty in serving such a mobile industry is that an equipment dealer never really knows where a contrac-tor needs its iron until the pipeline project is announced. The traditional model of having permanent regional dealer-ships doesn’t suit these roving builders.

In 2005, Cat established its unique distribution approach to the pipeline industry with the creation of PLM, which was comprised of four of the largest and most experienced Caterpillar dealers involved with pipeline equipment, according to Tony Fernandez, Executive Vice President and General Manager of PLM.


DediCATed to Pipeliners

Caterpillar Established a Unique Distribution Model to Serve the IndustryBy Bradley Kramer

Above: Tony Fernandez, Wayne Longer and Dan Macholan lead Cater-pillar’s uniquely focused service to the pipeline industry.

“We’re the only Cat dealer that has no geographical boundaries,” Fernandez says. “All other Cat dealers have a specific region for other industries. PLM is the only deal-er that has no borders. We’re responsible for the pipeline industry worldwide. PLM has a global territory and serves only one industry.”

PLM started with about nine people from each of the four dealer partners — John Fabick Tractor, Finning, Mus-tang Machinery Co. and Ring Power Corp. — and opened its head office in Houston. Now PLM has 55 employees with offices in Canada, The Netherlands, Australia, Singa-pore and China. The specialized dealer started with a rental fleet of approximately 250 machines, which has grown to more than 1,100 machines today, including traditional and purpose-built machines.

The way that Cat’s international pipeline dealer oper-ates is by working closely with regional Caterpillar dealer-ships worldwide to put together project-based solutions that are specific to each situation, providing equipment and project support.

“This model is unique to other Cat distribution solu-tions,” Macholan says. “I don’t think it would work with other industries. Most other segments requiring construc-tion machinery don’t move. A mine doesn’t move, a for-est doesn’t move and nor does a housing project. PLM is a case of developing a model to meet specific customer needs. Our traditional regional distribution model wasn’t meeting the needs of our pipeline contractors.”

Caterpillar doesn’t just serve the needs of the contrac-tors involved with building pipelines. Cat also works with stakeholder companies like El Paso, Kinder Morgan, Spec-tra Pipeline Group, Dominion Pipeline Group and others through its Global Petroleum Division, which provides en-gines for compressors used in transporting petroleum prod-ucts through a pipeline.

Working hand-in-hand with project engineers, Cat’s Global Petroleum group helps companies determine what size engine will be needed, based on horsepower, emissions level requirements and the application, according to Wayne Longer, Senior Accounts Manager for the division.

“We work with the pipeline companies to understand their needs and help spec the correct engines for their ap-plication,” Longer says. “When the customer is ready to buy, we refer them to our very capable group of packagers who package the engine and compressor into a complete functional unit.”

These gas engines are primarily used in North America to transport natural gas, but Cat provides engines for use in crude oil pipelines overseas as well.

Caterpillar has found success through this multifaceted ap-proach to serving the pipeline industry, from its Global Pipe-line Division, which manufactures the purpose-built equip-ment used in pipeline construction, to PLM, which distributes the equipment to contractors where and when they need it all across the globe, and to the Global Petroleum Division, which supplies stakeholder companies with the engines needed in transporting their product to the marketplace.

The GoodsCaterpillar manufactures a wide range of equipment used

in pipeline construction, maintenance and operation. Ded-icated pipeline construction machines include track type tractors, hydraulic excavators and pipelayers.

Among Cat’s track type tractors are the D6T, D7E/D7R and D8T, which feature reliable diesel engines with large

displacement and a high torque rise. The cabs are ergonom-ically designed for maximum productivity and comfort. The controls are intuitive, low-effort and easy to reach, and the viewing area is excellent, with instrument panels that are easy to read and informative. These machines are typi-cally used for clearing and creating the right of way, backfill-ing the trench, grading and clean-up on pipeline projects.

Excavators include the 320D, 324E, 329E, 336E and 349E, designed with exclusive upper frame swing bearings that are designed for more surface contact for longer life, improved stability and reduction of machine pitching. Hydraulic excavators are equipped with Product Link, which allows the customer to monitor the machine from a remote location by keeping track of hours of use, location, security and machine health.

Cat’s pipelayer offerings include the PL61, 572R Series 2, 583T and 587T, which feature excellent stability and load-carrying capacity necessary for tough jobs. The hydrostatic drawworks provide precision control for laying pipe in the ground. Lifting capacities range from 20 to 90 tons.

Cat also offers a 953D welding track loader for pipeline welding applications. This machine features a single en-gine to move the machine, produce electricity, power the air compressor and lifting device. This versatile machine is fast, safe and easy to operate, has large storage compart-ments for manual and automatic welding and has lifting device options up to 10 metric tons.

These machines are offered through PLM, which is also the exclusive distributor for Vanguard welding modules, wet deck conversion kits, combination tractor kits, as well as the Cranesmart Pipelayer System, which is the first wireless load monitoring indicator (LMI) for pipelayers. These LMI systems are mandatory for all pipelayers sold or rented in Europe and Australia, Fernandez says. PLM also distributes the DeckHand Pipe Handling System by LaVal-ley Industries. The system mounts on a hydraulic excavator and provides precise handling and placement of pipe on the jobsite. PLM has also developed a VP72 40-ton pipe-layer for less regulated markets, built from the D7G Series II Caterpillar base model.

Aside from supplying equipment, PLM also provides operator training through ek pass, a customized program tailored toward individual fleets, including classroom and hands-on training. PLM also certifies operators for the DeckHand system as well.

From the Global Petroleum Division, Cat offers large reciprocating gas engines for use in pipeline operations. In North America, the primary use for these engines is to drive compressors for natural gas pipelines large and small. These engines range from 160 to 8,200 hp and burn natural gas for fuel, according to Longer.

The Demands The clientele for Caterpillar’s pipeline equipment, devel-

oped through its Global Pipeline Division and distributed through PLM, is very specific. The vast majority are main-line pipeline contractors around the globe, Fernandez says, with approximately 60 percent based in North America. Distribution pipeliners also make up a significant portion of the company’s core customers.

These pipeline contractors are very demanding, Macholan says. They want a supplier that knows what they need and when. Caterpillar employs what it calls “voice of the cus-tomer” to gather information about industry demands and implements those ideas into new products.


“The average Cat dealer doesn’t see a pipelayer except maybe once every seven years,” Macholan says. “That’s where PLM comes in and provides the expertise and bridges the information gap that a local dealer would not have due to the critical mass of other contractor customer needs.”

Macholan is a 34-year veteran with Caterpillar, working exclusively in the pipeline industry since 2003. In his duties with the Global Pipeline Division, he represents the com-pany with various trade associations.

“My division is charged with the task of translating the voice of the customer requirements into machine capabili-ties, solutions and supply needs,” he says. “We are the eyes and ears of what our customers need and when.”

As such, Macholan sees three key areas that are becoming increasingly important to pipeline contractors: environ-mental impact, safety and fleet management.

Contractors are increasingly aware of environmental sustainability, the impact of pipeline construction on land, wildlife and water resources, as well as carbon footprints and reduced emissions, Macholan says. There is increased pressure from various entities for more stringent emissions regulations, which will continue to impact pipeline con-struction timetables.

“With the issue of environmental sus-tainability, and this is true of other manu-facturers, we have all made significant in-vestments on R&D to meet Tier 4 emissions standards,” Macholan says. “Our customers want to meet those standards and be good stewards of the environment, but it takes time to develop.

“On the other side, how do you use machines? Caterpillar developed its Eco Operator Training, which won IPLOCA’s environmental award last year, where we show operators how to improve fuel efficiency on the job. The results are up to 20 percent fuel savings. There is a direct correlation to 20 percent reduction in CO2 emissions,” Macholan con-tinues. “Just like in your car, you can jackrabbit start or you can ease into it. It’s the same in equipment. We train opera-tors to improve their technique. In one test, we measured a reduction in operator productivity by 5 percent, but there was also reduced fuel consumption by 25 percent. We see our job as helping to provide the lowest operating costs and best efficiency on the jobsite.”

The construction industry in general is entering a new realm, creating a safety culture that requires zero incidences.

“I hear a lot of debate about if zero incidences is even pos-sible,” Macholan says. “My view is whether it’s possible or not, it has to be our goal. Everyone deserves to go home safe.”

Along with environmental concerns and operator safety, efficiency and productivity remain an important factor for contractors. Adapting technology to improve equipment management is vital, Macholan says. Newer technologies

can improve accuracy, productivity and cost-efficiency. For example, Cat’s AccuGrade system, which uses GPS to improve accuracy on grading projects, helps reduce costs associated with land surveying and improves worksite safety by programming digging parameters and eliminat-ing the need to have a crewmember in the ditch and in harm’s way.

“Using technology like AccuGrade on our machines can also improve employee satisfaction and retention by reduc-ing stress,” Macholan says. “With the in-cab display, the operator can see his work envelope and the progress he’s making. It also increases equipment versatility. The system gives a record of what’s been done and how the job is go-ing. Fleet managers can see the machine, when it’s work-ing, when it’s not and then redistribute machines as neces-sary. This technology differs in how it could be adapted for a pipeline contractor because of their mobility, but we’re working to overcome those obstacles and provide a product

that improves efficien-cy and reduces costs.”

These same con-cerns are driving the improvements Cat’s Global Petroleum Di-vision has made in the development of new reciprocating engines.

“What we have been driven by in large part is customer needs, but also emissions stan-dards,” Longer says. “The U.S. government has provided a time-line and requirements for how low emissions levels must be to sell to the marketplace. Ultimately, to meet the market needs, we must design and build the most durable en-

gines with the lowest possible emissions. In doing this, we will satisfy the customers’ requirements for up-time and durability.”

In the process of introducing new products, Longer says the company searches out customer and environmental needs to develop the technology that goes into a new en-gine. Once a new engine is designed and built, the Global Petroleum group performs what is called a “field follow,” where the company works with specific customers to oper-ate the new engines so they can monitor and gather perfor-mance information in the field. This information is then used to make any necessary changes to further develop the product to be released to the whole industry.

The Delivery Manufacturing equipment that meets the demands of the

pipeline industry means nothing if you can’t get the ma-chines onto a contractor’s jobsite. PLM is Caterpillar’s me-dium for delivering its iron to end-users around the world.

PLM is a Cat dealer, but it operates without being tied down to a specific region like traditional equipment deal-erships. But why have such an industry-specific distribu-tion channel?


Cat has been heavily involved with the pipeline industry since the 1950s, when the company acquired the Trackson Co. in 1951. Until then, Trackson had built sidebooms for Caterpillar tractors since 1936. After the acquisition, Cat’s first

purpose-built pipelayer, the 583C, was released in 1955.

“It was primarily to strengthen Cat’s organizational and distribution channel to mainline pipeline custom-ers by focusing our efforts 100 percent to this sector,” Fernandez explains. “Pipeliners are transient and high-ly mobile. For the most part, they rely on key suppliers that follow them from project to project. These contrac-tors rely on high-quality products and demand single-point accountability from suppliers. The sporadic nature and volume of pipeline construction prohibited a single dealer from dedicating itself to this industry successfully. Being a dealership, you’re constrained to a geographic area, where PLM is not. Nobody was totally focused on the pipeline industry before.”

If a customer is awarded a pipeline project in Nebraska, for example, PLM contacts the local Cat dealer in the region and works with them to supply all the equipment to the contrac-tor, providing the necessary machinery and product support.

Currently, Fernandez says contractors tend to rent equipment as opposed to purchasing, but that wasn’t always the case.

“It’s changing right now,” he says. “The project back-log that customers were experiencing from 2006 to 2009, the tendency was to buy equipment through various lease options offered by Cat Financial. Contractors had a large backlog of projects, and that’s not typical for the industry, so at the time it made more financial sense to purchase the equipment. Currently, the tendency is to rent equipment month-to-month with a purchase option. They’re getting back to normal, but they don’t know what they’re doing for next three months.”

Having the correct fleet of pipeline equipment is essential to serving mainline contractors.

“Most of this equipment you don’t find on other Cat deal-er lots,” Fernandez says. “Our equipment is specific to the pipeline industry, which sets us apart from our competition and the local Cat dealers. One of most important things to these guys is product support. Down time is crucial. It’s very important to have the right parts to get a machine back up and running. Time is money in this industry.”

The PartnerParticipation in trade associations is an essential piece

of Caterpillar’s business. Through these associations, the company gains insight into its pipeline customers’ mutual interests and needs, providing a forum for sharing ideas, engaging the industry and its stakeholders, facilitating busi-ness opportunities and promoting the highest standards in the pipeline industry.

Caterpillar is involved with many trade organizations, such as the International Pipeline & Offshore Contrac-tors Association (IPLOCA), the Interstate Natural Gas Association of America (INGAA), the Distribution Contractors Association (DCA), the American Pipeline Contractors Association (APCA), the Pipe Line Contractors Association of Canada (PLCAC) and the Pipe Line Contractors Associa-tion (PLCA), just to name a few.

It’s at these association meetings and conventions that Cat gathers its “voice of the customer” information, Longer says. The company not only shows its products and meets with customers, but it also participates on committees, helps fund industry projects and provides training.

“Participating with the trade associations is a very impor-tant aspect of our business,” Longer says. “We gain knowl-edge, interact with key industry personnel and share the latest advancements in Caterpillar engine technology.”

Through the associations, Caterpillar can also track in-dustry trends to see where infrastructure demands might lead their customers.

“The pipeline industry is back on a little bit of a growth spurt,” Macholan says. “It’s not at the levels seen in 2008, when it peaked, but the market is steadying in 2011 and 2012. We’re seeing rapid growth in the development of shale plays, which has affected some longer term outlooks and resulted in some of the slowdown on some of the larger projects.”

Shale activity in the United States, with the Marcellus and Eagle Ford formations, has kept PLM busy, says Fernandez, adding that he expects natural gas production from shale to double over the next five years with a 10 to 11 percent increase in consumption over the next 10 years, mostly through electric power generation.

“This year has been surprisingly very good,” Fernandez says. “Large pipelines have slowed down a bit, but overseas it’s very active, especially in Australia and Latin America.”

Although a current trend in North America shows in-creased small diameter work to connect to the large main-lines built over the last five years, Macholan insists there will still be some big-inch projects in the near future, such as with TransCanada’s Keystone XL project and pipelines to transport natural gas and crude oil from Alaska and Canada.

“Eventually, I think we’re going to see a pipeline built to the West Coast to take oil off to China and other coun-tries,” he adds. “It only makes sense.”

Shale continues to be a hot topic in the pipeline industry, as Macholan says natural gas is seen as a bridging fuel.

“We’ll see steady growth in the need for clean burn-ing, abundant natural gas,” he says. “It makes too much sense to leverage our own resources [in the United States], whether for electricity, as the majority of the generators built in the last few years have been natural gas burning. It’s becoming harder and harder to get approval for a coal fired plant, and even nuclear energy projects, with the re-cent incidents in Japan, are having a harder time getting approved. That bodes well for natural gas. There will be a need to build infrastructure to get natural gas supplies to new markets.”

Internationally, Macholan sees opportunities for pipe-line contractors in Asia and northern Europe. Countries like Russia, China, India and Indonesia are driving the market for energy infrastructure. Additionally, Fernan-dez says Australia and Latin America have been strong sources of business in recent years, forecasting 14,000 km of pipeline projects in Latin America over the next four years.

Although the pipeline industry faces a number of challenges, such as meeting emissions requirements and navigating possible restrictions to production processes like hydraulic fracturing to extract natural gas from shale formations, pipeline construction continues to provide a viable market.

“Pipelines remain the most efficient means for the trans-portation of energy,” Macholan says. “They are the most economic and most environmentally responsible means. That, as well as the need to replace aging infrastructure, will continue to drive the pipeline market cycle for the foreseeable future.”

Bradley Kramer is Associate Editor of North American Pipelines. Contact him at [email protected].


Ohio historically has been a center for manufacturing, from automobiles to steel. As those industries restruc-

tured, the moniker of the “Rust Belt” fell upon the region. Now, business advocates for the state are seeking to leverage Ohio’s industrial infrastructure to attract a new industry and take advantage of its geological resources.

Shale gas production is a driving force among energy pro-fessionals and a hot-button issue for environmentalists, but the fact remains that shale gas will play a significant role in energy consumption in the coming years despite controver-sy involving the extraction process. As such, Ohio’s eastern half sits upon two significant shale formations — Marcel-lus and Utica — and Ed Burghard, Executive Director of the Ohio Business Development Coalition, would like to draw companies to the state and establish a base of operations to service the natural gas industry.

The Ohio Business Development Coalition markets Ohio for capital attractions. North American Pipelines spoke with Burghard about why the Buckeye State should be considered a hub for shale gas production and what makes Ohio attractive for companies involved in drilling for and transporting it.

Q: First of all, why should Ohio get involved in shale gas development?

Burghard: There are two primary reasons. First, both the Marcellus and Utica shales are in state, so we have a physical connection to the shale plays. Second is the abil-ity of the state to be a major base for the supply chain that supports extraction and distribution of shale gas. The analogy we like to share is that Ohio was a premier sup-ply chain state for the auto industry. All the infrastructure to play that role is still in place and can be used for shale gas. All the transportation infrastructure, such as roads, rail, airports and multimodal capabilities, is there to be able to move heavy equipment and materials to the Marcellus and Utica shale reserves.

Another reason for Tier 1 and Tier 2 suppliers to use Ohio as a base location for operations is that it will be in close proximity to the companies doing the drilling. If you drill a well, you have to be physically near where the property is. What we like to tell companies is Ohio has changed its tax structure in a way that makes it advantageous for a business to be located here. There is an estimated 30- to 40-year time frame before the shale play is exhausted. Making a capital investment requires some forethought. It’s not just set up a tent and then shut down. Companies have to get stra-tegically located to service the five-state region where the shale is. With Ohio’s new tax structure, companies located in Ohio do not pay state tax on sales to businesses outside the state. Many companies are not aware of that advantage. That tax legislation was enacted five years ago, and it had a five-year implementation period, so it is now fully imple-mented. There is no tax on sales outside the state and no corporate tax on inventory. Ohio doesn’t tax companies on capital equipment purchases either. Manufacturing com-panies can take advantage of that to buy equipment and set up in the state. All these tax details are on the website, www.OhioMeansBusiness.com. It’s something that manufac-turers in particular, as well as Tier 1 and 2 suppliers, can take advantage of and improve their profit margins. When you look at a 30- to 40-year set up, you want to be where you can maximize your profits.

Q: How much natural gas from the Marcellus and Utica formations is in Ohio?

Burghard: There’s no specific data that shows exactly how much natural gas from these formations is in Ohio. The Marcellus play is projected, as I’ve seen from other re-ports, to have enough natural gas to meet demand for 20 to 30 years. Natural gas itself will represent one-third of the U.S. energy requirements. Natural gas from shale is ex-pected to make up 32 percent of natural gas consumption.


Coalition Advocates for Ohio as Base of OperationsCompiled by NAP staff

As we characterize Ohio, the footprint of the Marcel-lus shale cuts over the eastern border in the Appalachian region of our state. There are two types of natural gas, “wet gas” and “dry gas.” Dry gas essentially goes from the shale to the home. Wet gas has extra steps involved in processing to take out any byproducts and as a consequence is more costly to develop. Dry gas is more likely to be developed first. Ohio’s shale reserves are more likely to be wet gas. This means you’re probably looking at eight-plus years before any significant concentration of Marcellus shale wells are drilled in Ohio.

As for the Utica shale, we don’t have good estimates, but what everybody is hoping, and experts are doing the work now to validate, is that there may also be liquid hydrocar-bons in the Utica shale. If that is the case, and it’s there in volume, it could be even more profitable for Ohio than the Marcellus shale because oil costs more than gas right now. All this work is under review. Beyond what might be there in terms of oil or gas, these shale developments formed in different epochs. The Utica shale is deeper than Marcellus. However, the Utica shale is about 7,000 ft deep in Pennsyl-vania, but in Ohio it’s only 3,000 ft below the ground, so it would be more cost effective to develop that product in our state.

Q: What kinds of jobs are associated with shale gas?

Burghard: There are a number of jobs that could po-tentially be created. There’s general labor, heavy equipment operation (truck drivers, crane operators), cement manufac-turing (for dropping wells), skilled technicians (such as me-ter reading), geologists, legal professionals, land clearing,

pipe manufacturing, welders, engineers, oversight (such as inspectors, etc.) and potentially others.

And then there’s the whole backend piece of it, just as when you look at the auto industry, everybody thinks of manufacturing the finished product, but there are a number of contributing manufacturing processes, such as stamping, transporting and fabricating parts. Ohio has always been a state that is involved in supply chain capability, so that’s why we think it can be the same for this industry. The infra-structure is already here, it just needs to be leveraged.

Q: How can shale gas development help Ohio’s economy?

Burghard: We do not have data for Ohio specifically, other than the knowledge that the industry will put people to work, which is a great boon, but there is also the income tax from people going to work. In Pennsylvania, the state is looking hard at different ways to capture revenue via taxes specific to the Marcellus shale gas play. Again, if you think about Ohio, if you buy in to the idea of natural gas extrac-tion coming at a later date, then the near-term benefit will come from increased employment associated with supply chain companies.

There are some reports that talk about employment in Pennsylvania, and the numbers are not inconsequential. A Penn State study concludes that the shale gas industry created 29,000 jobs since last year and 98,000 jobs in 2010. There were 70,000 jobs created in Texas. The number of jobs is in the tens of thousands.

We assume that the number of supply chain associated jobs for this industry will not be of the same magnitude,



but the related jobs are more sustainable. Once a well is drilled, it’s drilled, but if you’re on the supply side, there are always more wells being drilled that require your services.

It isn’t just a random wish of ours. Some companies in Ohio are already benefiting from the shale play. The Dear-ing Compressor and Pump Co. invested about $3 million in a new production plant to expand productivity. The com-pany is in the Youngstown area, and their proximity to the shale was listed as one reason for the investment. V&M Star is a pipe manufacturing facility in Youngstown, and its par-ent company, Vallourec Group, invested $650 million in a new pipe mill, which was attributed to shale. TMK IPSCO invested $10 million in a new facility in Brookfield, Ohio.

The kind of analogy I think about is the historic gold rush. There were not a lot of people who made a lot of money from finding gold. But the majority made money on the supply chain side. It was the people who opened up bars and supply stores to serve the prospectors. In many ways shale gas is a repeat of that. There’s a whole behind-the-scenes supply chain that can be profitable to Ohio if we can explain the benefits of locating in Ohio to Tier 1 and 2 supply chain companies.

Q: What are the challenges of developing shale gas in Ohio?

Burghard: Shale gas is bringing on a lot of vol-ume that was previously unaccounted for. The Marcel-

lus shale volume projections caught the industry by surprise. It was only after the development of horizon-tal drilling that the real potential of the Marcellus and Utica shale plays was understood. Columbia Gas in Ohio is keeping a close eye on the shale plays, working to make sure its pipeline is capable of supporting the increased volume. Columbia Gas recently announced an investment of $2 billion to replace more than 4,000 miles of pipeline over 20 years. So one challenge of shale gas for the industry is are we fully prepared to distribute it?

The other challenges that you read about, Ohio has not experienced yet. Commercial development is behind the curve. In Pennsylvania, they talk about the potential for a boom to bust cycle. Susan Christopherson, a professor at Cornell University, has studied the shale gas impact on communities for a while. A lot of resources are brought to bear during the initial drilling phases, including skilled laborers from out of state, which results in an unantici-pated population increase. People come in to work on the wells for multiple years, and that creates a potential re-sidual impact on community services, such as fire, police, social services and schools. Pennsylvania is going through that now. In Ohio, we’re actively learning from their ex-periences. There are also impacts on the infrastructure at well sites. There are not many wells in Ohio yet, so that has not been a problem. But there is a lot of heavy equip-ment moved over the roads to get to well sites, and we




know that’s a challenge to deal with. A lot of the wells are in rural areas, so imagine if a town only has one stop sign and all the sudden there’s a lot of traffic. How do you manage that? Labor and training is another potential challenge. You have to make sure colleges have the cur-riculum to support the industry, with specialty programs and degrees developed. Ohio actually is a little ahead there. Marietta College has the ninth largest petroleum engineering program in the United States. Ohio State has some related programs as well. And other colleges in Ohio have programs in the energy field. If there is a big demand in an industry, colleges have to broaden course offerings to deal with folks who need job training. One thing that Christopherson talks a lot about is the back end of things, and she advises the need for good stewardship to avoid potential backend problems. When the wells are no lon-ger productive, when the revenue stops and people leave, then what do you do? If there is a plan in place, and you’re trying to come out on the back end in better economic position than when you came in, it requires preplanning. It’s not by accident. In Ohio, we are committed to doing that preplanning and doing it well.

Q: What about the dangers of hydraulic fracturing?

Burghard: Clearly, there are those concerns, but this is not a brand new technology. From the experts I’ve listened to, if the right regulations are in place and the drilling is done correctly, the risk is manageable. The trick is in the words “do it correctly.”

The other area of concern is wastewater collection and management [from the fracturing fluid], and depending on how good of a job they do, there is more or less of a risk for contamination. I’m a fly fisherman, so I care about how this affects the environment. If it is done properly the risk is minimal. I do believe there is a need for some regulations, and I believe companies will be committed to adhering to them. Compliance will ensure the public is safe.

Recently, Ohio has allowed for drilling in state parks. I read a discussion where people were debating if it would be a visible eye sore. The net conclusion was that there are ways to mask the site once it’s drilled. Drilling requires big equipment, I don’t know how you hide that, but once the well is drilled, there are ways to hide it. So if the public wants to enjoy the park, the well is not going to be an eye sore. If it’s done right, everything’s fine. The worry is not about the 98 percent of companies that do it right, it is about the 2 percent that do it wrong. That is where regu-latory enforcement plays an important role. It helps the industry and the people enjoy the benefits of natural gas from the Marcellus and Utica shale plays.

Q: Any final thoughts?

Burghard: I take the idea of Ohio as the “Supply Chain State” to heart. Other states to a more or lesser degree have to create the infrastructure we already have. Ohio’s infrastructure is not overtaxed in terms of usage since the auto industry is in period of right-sizing. The state has a lot manufacturing capability to reposition to serve shale gas.

Your city stands to lose millions of dollars each year if you aren’t prepared to prove the value of your underground. Courts are now requiring defendants to present cost-based assessments of ROW (right-of-way) value – not estimates or averages. This CD ROM can guide you in assessing your ROW value.

Topics Covered Include:* Guidelines for determining

the value of the ROW that will be defensible in court

* How to recover costs when underground damage occurs

* That different parts of towns have different ROW costs

* How to better manage who uses your ROW

Publisher: APWA | Interactive CD with Hand-outs

Protecting Your Interests Underground

PRICE: $47.99*

*SHIPPING AND HANDLING NOT INCLUDED. SELLING PRICE SUBJECT TO CHANGE WITHOUT NOTICE.

RESOURCE CENTERbenjaminmedia.com/book-store

330-467-7588

On a pipeline jobsite, understanding the nuances of fleet and employee performance and ensuring asset

security are critical for a successful project. Telematics — combining GPS hardware installed on ve-

hicles and equipment with a web-based software platform — takes location-based data and converts it into programs and reports that allow fleet managers to more accurately track and allocate field resources based on real-time metrics. The implementation of such a platform also lowers operat-ing costs, assists in the recovery of stolen equipment and provides management with methods of accurately manag-ing employee productivity and allocating resources to loca-tions where they are needed most.

These technologies hold particular value and opportu-nity for pipeline construction and maintenance operations. Pipeline construction requires expansive fleets of vehicles and equipment spread across wide-open spaces on the map. Similarly, pipeline maintenance contractors operate large fleets of vehicles and equipment often spread across numer-ous states. It may seem overwhelming to think that each of these assets and its actions could possibly be tracked and re-ported on by one central system, but the practical application of the technology is much simpler than you may think.

Getting StartedImplementing a telematics program includes an up-

front investment in time and resources. There are costs

associated with the installation of the GPS hardware and the software used to collect and interpret the data. One of the most effective ways of implementing a tele-matics program is through a software-as-a-service (SaaS) solution. These systems run on a subscription basis and are operated from the computer network your company already uses — there’s no need to add more IT infrastruc-ture to your business.

This is how it works: A small GPS device — think of it as a black box — is affixed to each asset that you want to track. This includes everything from trucks to excavators, weld-ers and generators. These devices can track information as simple as location (for asset security purposes) or can be integrated in to an asset’s wiring system to record key per-formance indicators. They then transmit that information via a cellular or satellite network back to the fleet software, where it is analyzed and churned into actionable data.

Analyzing Performance and Asset Usage There is an extensive data set you can track with a telem-

atics system, and the most critical to any business’s bottom line is the use of its assets. Especially with large mixed fleets of trucks and equipment, it is relatively easy to lose track of certain assets or for planners to not have a full understand-ing of how each asset is being used in the field. No matter how well-kept an equipment log may be, one employee for-getting to report that a truck is out of service or that an ex-


Understanding TelematicsBenefits for Large, Mixed Fleets of Software and GPS Technologies

By Sean McCormick



also report that tracking and recovering stolen equipment in this manner has led authorities to recover equipment stolen from other companies and sites. Through such tracking and recovery, it has lowered a substantial oper-ating cost that is an expensive necessity for construction companies: insurance premiums.

Another major issue for large contractors is asset liability. Implementing a GPS-based telematics system helps reduce unauthorized use of vehicles by employees outside of their day-to-day work duties. Such a system not only ensures proper use of the company’s resources, but also limits its exposure and liability to something happening with that vehicle on the road. Liability is also kept in check with fea-tures such as Telogis Fleet’s “What Happened Here,” which quickly accesses historical data to investigate field incidents and litigious claims. For instance, a local resident may accuse one of your drivers of cutting them off. Within seconds you can visualize that information to determine if your worker was driving in that location at the time or not.

Managing Employee and Asset SafetyGPS-based telematics systems allow businesses to gain

valuable insight into how assets are being used with real-time alerting and exception engines. It allows fleet man-agers to enter business rules and receive notifications of violations so they can better monitor operations without spending hours reading reports and clicking on maps. Alerts can be defined on a range of parameters, including key employee and asset safety factors such as hard braking, hard swerving and speeding against posted speed limits.

Add these resources to your reference library!

Estimating Excavation

PRICE: $49.99*

Step-by-step instructions on how to read plans, estimate labor and equip-ment costs, evaluate a site, determine undercuts, figure factors for swell and shrinkage and much more.

Excavation & Grading Handbook — RevisedLearn how to read topo maps, set crows feet, install water, drain and sewer pipes, lay or remove asphal-tic concrete, use a laser level, cut drainage channels, pressure-test sewer pipes and use GPS and so-nar for absolute precision.

PRICE: $49.99*

RESOURCE CENTER

benjaminmedia.com/book-store 330-467-7588

*SHIPPING AND HANDLING NOT INCLUDED. SELLING PRICE SUBJECT TO CHANGE WITHOUT NOTICE.

cavator is offline or due for routine maintenance can throw a wrench in even the best plans.

With a GPS-based fleet management system, each asset is visible in a single view on the fleet manager’s computer screen. It lets the fleet manager know where an asset is, critical information about its use (such as operating hours, scheduled maintenance needs, or whether it’s off, idle or running at operational speeds), and whether or not it has an assigned task for that day. Fleet managers can also assign values to each asset — such as the type of equipment and tools available on a truck — so that reallocating assets can be done as quickly as possible and with the assurance that your workers will be properly equipped. It also helps busi-ness owners better analyze the true use and optimization of the assets it owns, which helps make intelligent purchase decisions (for instance, why buy a new sideboom tractor for a spread in Wyoming when you’ve got one sitting idle in Oklahoma?).

In terms of productivity, this technology also gives you in-sights into the performance of your employees in the field. Telogis Fleet, by way of example, offers a feature known as the Field Management Co-Location module. This module uses GPS data to report on the amount of time a field su-pervisor’s vehicle spent in the proximity of other assets and crews in the field. Such information allows fleet managers and supervisors to better understand if field generals are do-ing their work or are spending too much time away from their crews in the field. Another feature called Multiple Ve-hicle Histories allows the fleet manager to view current and historical data of multiple assets in a single window, a fea-ture that easily tracks potential drags on productivity and cost, such as incidents of mobile workers congregating in a single location for too long.

Telematics systems are also capable of being modified by its designers to address concerns specific to each end user. For instance, a customer who works in pipeline mainte-nance and repair worked with a chemical that would be rendered useless if it fell outside of pre-specified temperature ranges. Those storage containers were outfitted with sensors to notify employees with message alerts if the chemical ap-proached those critical temperatures. Doing so ensured that the chemical — worth anywhere from $50,000 to $100,000 per batch — remained viable.

Improving Asset Security and LiabilityGPS-based fleet management solutions help improve as-

set security, especially on larger fleets that operate over large geographical areas, and often far away from their headquar-ters or stockyards. This scenario is common in the pipeline industry as many projects span numerous states and often require the contractors to set up shop at temporary loca-tions along the route. One of the main benefits of such a system, in terms of asset security, is the ability to place geofences — virtual perimeters — around a location where assets are kept during off hours.

An alert is sent if a truck or piece of equipment moves outside of that geofence and signals the fleet manager or business owner to inform the authorities so that response times are immediate. GPS then helps track its exact loca-tion to assist in recovery. There are customers in the con-struction industry who work across numerous states and claim the recovery of one truck or asset covers the annual telematics software hosting costs when you take into ac-count the replacement value of the truck or the machine. Each asset recovered multiplies this benefit. Contractors

It also helps for companies that work in remote areas, such as pipeline construction and maintenance contractors that may have limited cell phone access due to poor coverage. People at the home base always know where a truck or other asset is with hardware that can communicate over satellite networks, allowing them to respond quickly in case of an emergency. These systems also have the ability to integrate features such as panic buttons. A panic but-ton can provide im-mediate notification to the right person so the right protocol can be followed to ensure worker safety. Respon-siveness is critical when worker safety is involved and the abil-ity to make decisions based on real-time in-formation maximizes the chance of a suc-cessful outcome.

Integrating a mo-bile handheld solu-tion, such as Telogis Mobile, with your fleet management and routing solutions also helps improve safety by providing two-way communication between workers in the field and the back office. It also provides truck-specific routing (route trucks under load or Haz-Mat regulations based on height, weight and width restrictions) and vehicle safety checklists to en-sure safety compliance for vehicles on the road.

A U.S. Department of Transportation requirement for certain vehicles, inspection checklists ensure safe and re-sponsible driving on the road. Drivers perform a routine inspection prior to leaving for the day and after they return. The mobile device captures a variety of conditions according to the Federal Motor Carrier Safety Administration (FMCSA) requirements such as brake lines, lighting, suspension and many other categories to ensure fleets stay on top of safety management and vehicle maintenance knowledge.

Anticipating Conditions in the FieldIn addition to tracking asset location, performance

and security, premium telematics systems also offer fea-tures that give fleet managers a perspective on condi-tions in the field. Real-time weather feeds give super-visors an up-to-date view of oncoming weather events and allows field personnel to react quickly in case of oncoming inclement or severe weather. Features such as Telogis’ Streetside/Birds Eye View also allow fleet man-agers to easily view the actual location and surround-ings where a field team will be working. This feature offers many benefits, including helping to ensure that field crews are armed with the equipment they’ll need to deal with their surroundings.

Fuel Use and Reporting Fuel showcases both one of the simplest and one of

the most advanced uses of a telematics system. At the very basic level is monitoring of engine idling time on trucks

and equipment. By monitoring it and adjusting operators’ behaviors to minimize idling — especially on large fleets — fleet managers can save their company substantial amounts of money in fuel use. Similarly, fuel card reconciliation re-ports match GPS location to fuel purchase dates and times to ensure that fuel card privileges aren’t being abused and that your company isn’t losing money.

On the more ad-vanced end of things is fuel tax reporting. A major hassle with any company that works across state lines — all typically with different fuel tax rules and regula-tions pertaining to on-road and off-road vehicle/equipment usage — is quarterly reporting where tax-es and state-by-state fees are calculated. Telematics systems, such as Telogis Fleet, now feature an In-ternational Fuel Tax Agreement (IFTA)/International Reg-istration Plan (IRP) data feed. This sys-

tem matches GPS location with dates and times to veri-fy where and how an asset was being used. Reconciling these reports, and being able to prove, for instance, that an asset spent most of its time operating off road (as is the case in much pipeline work) could save a company thousands of dollars.

Additional Benefits and Conclusion Contractors have the capability of uploading custom

maps and data into telematics programs to further tailor the experience to their specific location. Tie-ins, compres-sion stations and work bases aren’t locations that are going to show up on a standard map. By being able to upload and overlay customized GIS layers to the software provider, you’re now able to pull the location up on a map and route people and assets there with ease (even if they don’t reside at a physical street address).

Many vehicle and equipment OEMs are now offering some form of a telematics system as a pre-install option at the time of purchase. These systems on their own are excel-lent but can also typically be integrated with an enterprise-wide telematics platform through application programma-ble interfaces. This integration ensures that you can see all of your assets in a single view and can compile operational data in one central system. Plus, you get the benefit of both the OEM system and the third-party system.

A true telematics platform, one that ties in fleet manage-ment, asset monitoring and security, routing and mobile communication, has the capability of transforming your fleet management and resource allocation activities into a streamlined operation that will help you save money and more effectively run your business.

Sean McCormick is a Product Manager for Telogis.


Bad weather can stop a project in its tracks. Thanks to real-time weather feeds, a telematics system can alert fleet managers to conditions in the field and allow personnel to react accordingly — all while tracking asset location, performance

and security.


T he oil and gas pipeline industry seems to be on an up-swing after a natural decline in the construction cycle

coupled with a worldwide recession. Shale gas development continues to drive construction for natural gas pipelines, while Canada’s oil sands continue to be the catalyst for new crude oil transportation systems.

Here we sit, just past the midpoint of 2011, and the con-struction season is in full bloom. Pipeline contractors are already busy with a number of projects, with more awaiting approval from the U.S. and Canadian governments. What follows is an overview of many of the projects currently under way or in the permitting process.

Appalachian Gateway ProjectLocation: West Virginia, PennsylvaniaProduct: natural gasStakeholder(s): Dominion Transmission Overview: This $600 million project includes the

installation of 110 miles of new pipeline and facilities in West Virginia and Pennsylvania in an effort to deliver Appalachian natural gas production to markets in the east-ern United States. The pipeline will range in diameters of 20, 24 and 30 in. The project also includes the construction of four new gas compressor stations, adding about 17,000 hp. Dominion will ultimately deliver this natural gas to an interconnect with Texas Eastern Transmission at Oakford in Delmont, Pa. Total firm transportation delivery for the Appalachian Gateway Project will be 484,260 dekatherms of natural gas per day.

Progress: The Federal Energy Regulatory Commis-sion (FERC) approved the project on June 16, and now Dominion Transmission must submit a request to commence construction. Upon receiving that approval, construction will start as soon as possible.

Start date: pending 2011End date: September 2012

Bakken Pipeline ProjectsLocation: Manitoba; North Dakota Product: crude oilStakeholder(s): EnbridgeOverview: The projects consist of Canadian and U.S.

segments that together will provide 145,000 barrels per day (bpd) of capacity from North Dakota into Enbridge’s main-line at Cromer, Manitoba. Over the last several years, oil production in the Bakken Formation, which crosses through parts of Montana, North Dakota and Saskatchewan, has

grown and there is increasing demand for crude oil trans-portation. To meet this need Enbridge Bakken Pipeline LP, a subsidiary of the Enbridge Income Fund, is proposing to extend an existing pipeline (running from Berthold, N.D., to Steelman, Saskatchewan) by constructing 77 miles of 16-in. diameter pipeline from a new terminal near Steel-man to the Enbridge Pipelines Inc. mainline Terminal near Cromer, Manitoba. The U.S. segment of this pipeline is cur-rently owned by Enbridge Pipelines (North Dakota) LLC, a subsidiary of Enbridge Energy Partners LP. In addition to the 124 km of new pipeline, the proposed project scope also includes the installation of new pumps and associated equipment, and utility upgrades at the Steelman Terminal. The Bakken Pipeline Project will expand the U.S. portion of the Portal Link (or Line 26) by constructing two new pump-ing stations and replacing an 11-mile segment of the ex-isting 12-in. pipeline between Kenaston and Lignite, N.D. The proposed replacement section will be rerouted around the town of Lignite to the east and northeast, generally following an existing railroad right-of-way in the area.

Progress: Enbridge filed an application for the Canadi-an portion of the pipeline with the Canadian National Ener-gy Board (NEB) in January, with a scheduled public hearing to be held in October. The U.S. portion of the project will be overseen by the North Dakota Public Service Commission (NDPSC), which approved the project in spring 2011.

Start date: spring 2012 (Canadian portion); spring 2011 (U.S. portion)

End date: early 2013

Horn River Mainline ProjectLocation: British Columbia, AlbertaProduct: natural gas Stakeholder(s): NOVA Gas Transmission Ltd. (NGTL),

a subsidiary of TransCanadaOverview: In response to the rapidly increasing devel-

opment of natural gas production from the northeastern British Columbia shale basins, NGTL proposes to extend its Alberta System to transport sweet natural gas from the Horn River, B.C., area to a tie-in point on the existing Northwest Mainline of the Alberta System. This extension of the Alber-ta System will involve three components: One, the acquisi-tion of the Encana Ekwan Pipeline, which is anticipated to be effective fourth quarter 2011. Two, the construction of the Horn River Mainline (Cabin Section), which is approxi-mately 72 km of 36-in. diameter pipeline and related meter-ing and valve facilities running from a point on the Ekwan

Making ProgressA Report of Pipeline Projects in 2011 and BeyondBy Bradley Kramer

Pipeline, north to a natural gas processing facility in the Cabin, B.C., area. And three, the construction of the Komie East Extension, which will consist of approximately 2.5 km of up to 24-in. pipe and related metering and valve facili-ties. The proposed pipeline is expected to be operational early in the second quarter of 2012, subject to regulatory approvals, with an estimated project cost of $310 million.

Progress: The project received regulatory approval from Canada’s NEB in the first quarter of 2011.

Start date: fourth quarter 2011End date: second quarter 2012

Keystone Pipeline Location: Alberta to U.S. Midwest and SoutheastProduct: crude oilStakeholders: TransCanadaOverview: The $13 billion (USD) Keystone pipeline

system will connect Canadian crude oil supplies with the largest refining markets in the United States. In June 2010, TransCanada commenced commercial operation of the first phase of system, consisting of the conversion of natural gas pipeline to crude oil pipeline and construction of an innova-tive bullet line that brings the crude oil non-stop from Cana-da to market hubs in the U.S. Midwest. Phase 2, the Keystone Cushing, Okla., extension, went into service in February 2011, consisting of a 298-mile, 36-in. pipeline from Steele City, Neb., to Cushing, Okla. The proposed Keystone Gulf Coast Expansion (Keystone XL) Project is an approximate 1,661-mile, 36-in. crude oil pipeline from Hardisty, Alberta, through Saskatchewan, Montana, South Dakota and Nebras-ka. It would incorporate a portion of the Cushing extension through Nebraska and Kansas to serve markets at Cushing, Okla., before continuing to a delivery point in Nederland, Texas, to serve the Port Arthur marketplace.

Progress: With Canadian regulatory approval received from the NEB in 2010, the project is ready to com-mence construction activities as it awaits final approval from U.S. regulators. In March 2011, the U.S. Department of State committed to delivering a definitive decision on Keystone XL before the end of the year.

Start date: June 2010End date: 2013

Marcellus Ethane Pipeline SystemLocation: West Virginia, Pennsylvania, Ohio,

Louisiana, TexasProduct: ethane Stakeholder(s): El Paso Corp., Spectra EnergyOverview: The project design includes an approxi-

mately 1,100-mile ethane pipeline to transport up to 90,000 bpd of ethane from the Marcellus shale area to a destination point located in Eunice, La., Plaquemine, La., or Mt. Belvieu, Texas. The Marcellus Ethane Pipeline Sys-tem (MEPS) would include both newly constructed fa-cilities and the conversion of existing pipelines to ethane service. The project is comprised of three main segments: the Northern Segment includes the construction of 110 miles of pipeline from Houston, Pa., and Natrium, W.Va., (assuming completion of the Dominion fractionation facili-ty) to Cambridge, Ohio, and surrounding areas; the Central Segment includes approximately 1,000 miles of pipeline

facilities currently owned by Tennessee Gas Pipeline Co. (TGP) from Cambridge to Monroe, La., or TGP mainline valve 28, depending on the ultimate delivery point; and the Southern Segment, which includes the construction of 60 to 166 miles of pipeline from the terminus of the Central Segment to a destination/delivery point in Eunice, Plaque-mine or Mt. Belvieu.

Progress: The project announced its open season to elicit binding commitments from prospective shippers interested in ethane transportation service on June 27.

Start date: TBDEnd date: fourth quarter 2014

Mackenzie Gas ProjectLocation: Northwest Territories, AlbertaProduct: natural gasStakeholder(s): Imperial Oil Resources, ConocoPhil-

lips Canada, Shell Canada Ltd., ExxonMobil Canada and the Aboriginal Pipeline Group (APG), TransCanada

Overview: A proposed 1,196-km natural gas pipeline and gas gathering system with a capacity of 1.2 billion cu ft per day (bcf/d), liquids extraction, liquids pipeline and field developments along the Mackenzie River Valley of Cana-da’s Northwest Territories to connect northern onshore gas fields with North American markets. TransCanada is provid-ing funding for the APG for the project definition phase of the Mackenzie Gas Project. If development of this pipeline goes ahead, it would connect with TransCanada’s system in northern Alberta.

Progress: On March 10, the project received regula-tory approval from the Canadian NEB. On July 18, Royal Dutch Shell (the owner of Shell Canada) announced it was pulling out of the project and is now trying to sell its $16.8 billion stake in the Mackenzie project.

Start date: TBDEnd date: TBD

Northeast Upgrade ProjectLocation: Pennsylvania, New JerseyProduct: natural gasStakeholder(s): Tennessee Gas Pipeline Co. (a subsid-

iary of El Paso Corp.) Overview: The project involves expanding Tennessee

Gas Pipeline’s (TGP) system to allow an additional 636,000 dekatherms per day of natural gas to be transported from Pennsylvania to growing markets in the Northeast. TGP proposes to upgrade its existing 24-in. diameter 300 Line by constructing five 30-in. diameter pipeline loops and modifying four existing compression stations to accom-modate the increased capacity. A pipeline loop is a seg-ment of pipeline installed adjacent to an existing pipeline and connected to the existing pipeline at both ends. These five loops will close out the remaining unlooped segments of Tennessee’s existing 300 Line east of Bradford County, Pa., into New Jersey. The Northeast Upgrade Project, along with the company’s 300 Line Project (see additional en-try), will add about 1 bcf/d of new firm transportation ca-pacity that will provide safe and reliable transportation of clean-burning, domestic natural gas supplies to key North-east markets. The project is expected to cost approximate-ly $400 million with a majority of the capital spending occurring in 2013.

Progress: Awaiting application approval from FERC.Start date: TBDEnd date: TBD



Ruby PipelineLocation: Wyoming, Utah, Nevada, OregonProduct: natural gasStakeholder(s): El Paso Corp. Overview: The project represents an approximate

$3.5 billion investment in new pipeline infrastructure that will connect natural gas reserves in the Rocky Mountains region with growing markets in the western United States. Ruby includes approximately 680 miles of 42-in. transmission pipeline, beginning at the Opal Hub in Wyoming and terminating near Malin, Ore. Ruby will have an initial design capacity of up to 1.5 bcf/d and will traverse portions of four states: Wyoming, Utah, Nevada and Oregon. The project uses four compressor stations: one near the Opal Hub; one south of Curlew Junction, Utah; one at the midpoint of the project, north of Elko, Nev.; and one in northwestern Nevada.

Progress: On July 25, the project reportedly applied for approval from FERC to begin service on July 27.

Start date: summer 2010End date: July 2011

Tennessee Gas Pipeline 300 Line Project Location: Pennsylvania, New JerseyProduct: natural gasStakeholder(s): Tennessee Gas Pipeline Co. (a subsid-

iary of El Paso Corp.) Overview: The project proposes for the increased

capacity of Tennessee’s 300 Line to transport new di-versified natural gas supplies, including newly accessed Appalachian and Marcellus shale gas to serve the grow-ing demand for interstate natural gas transmission service in the northeastern United States. The project involves the installation of seven looping segments in Pennsylvania and New Jersey, totaling approximately 127 miles of 30-in. pipeline, and the addition of ap-proximately 55,000 hp following the installation of two new compressor stations and upgrades at seven ex-isting compressor stations. The additional horsepower will be constructed at two new compressor stations to be located in northwestern Pennsylvania, at two exist-ing compressor stations in Pennsylvania and at an ex-isting compressor station in New Jersey. Upon comple-tion, Tennessee expects that the project will increase natural gas delivery capacity in the region by approxi-mately 350,000 dekatherms per day. The project would provide access to diversified natural gas supplies from Gulf Coast, Appalachian, Rockies and Marcellus Shale supply areas, and gas deliveries to points along the 300 Line path and into various interconnections with other pipelines in northern New Jersey, as well as an exist-ing delivery point in White Plains, N.Y. To minimize impacts from construction, the planned pipeline route will generally follow an existing Tennessee pipeline corridor wherever practical.

Progress: This project is under construction and is expected to be in service by November. Tennessee held the original open season for this project in 2008, with a second open season in 2009. In May 2010, Tennes-see had received all necessary federal, state and local permits for the project, which allowed the company to start construction.

Start date: summer 2010 End date: November 2011

Wood Buffalo Pipeline ProjectLocation: AlbertaProduct: crude oil/bitumenStakeholder(s): Enbridge Athabasca, Suncor Energy

Oil Sands LPOverview: The Wood Buffalo (Line 18 Extension) Pipe-

line Project includes an approximately 59-mile, 30-in. diam-eter pipeline to transport a diluted bitumen/synthetic heavy crude blend from the Athabasca Terminal to the Cheecham Terminal in Alberta. From Cheecham, it will directly con-nect with the existing Line 18 (Waupisoo Pipeline), which extends from the Cheecham Terminal to the Edmonton Terminal. The project also includes the construction of two pump stations, one at the Athabasca Terminal and another at the pipeline mid-point, near Lynton, Alberta.

Progress: The project received approval from the Alber-ta Energy Resources Conservation Board on Jan. 27, allowing Enbridge Athabasca to begin some construction activities. The company established all necessary permits to move forward with a 3.1-km segment of the Wood Buffalo Pipeline within Fort McMurray, Alberta, with construction beginning in Feb-ruary. In early March, clearing was completed on the 30-km portion of the project north of the Cheecham Terminal, which shares a common corridor with the Enbridge Woodland Pipe-line Project. The clearing of the remaining 34-km portion of the right-of-way between the common corridor and Fort McMurray is currently under way. Other federal, provincial and municipal permits are required to complete construction for this project and applications have been approved or are in process.

Start date: February 2011, with pipeline construction beginning in summer 2011

End date: spring 2013

Woodland Pipeline ProjectLocation: AlbertaProduct: blended bitumenStakeholder(s): Enbridge, Imperial Oil Ltd. Overview: Enbridge was chosen by Imperial Oil Ltd. to

build a pipeline to transport blended bitumen between the Kearl oil sands project and Enbridge’s existing Cheecham Terminal, which connects with existing pipeline transportation systems. The Cheecham Terminal is approximately 70 km south of Fort McMurray, Alberta. The project includes one pump station at the Kearl oil sands project pipeline initiation point; an approxi-mately 140-km, 36-in. diameter pipeline from the Kearl project site to Enbridge Pipelines (Athabasca) Inc. existing Cheecham Terminal, with an initial capacity of approximately 200,000 bpd; and construction and operation of two 300,000-barrel tanks and related pumps and meters at Cheecham Terminal, where the new pipeline will connect to Enbridge’s existing 380-km Waupisoo Pipeline.

Progress: The Alberta Energy Resources Conservation Board approved the project on June 23, 2010, allowing the project to begin clearing the pipeline right-of-way.

Start date: clearing of the pipeline right-of-way began in late 2010 with construction beginning July 2011

End date: September 2012

This is not a comprehensive list of the pipeline projects for the upcoming construction season. For updates regard-ing ongoing projects, refer to the Project Roundup on page 18 and published each issue.

Bradley Kramer is Associate Editor of North American Pipelines. Contact him at [email protected].

To the layperson, a pipeline project is typically thought to be a relatively simple endeavor involving a repeti-

tive set of circumstances and relatively straightforward construction. Those of us in the industry of course realize that these projects face numerous unique and challenging technical, regulatory and legal issues that we manage daily. We understand and experience myriad challenges related to diverse disciplines such as engineering, environment, land acquisition and community affairs. However, it is the management of these diverse activities and the data they generate that often represents the greatest challenge to the development and execution of a pipeline project.

This issue first manifests itself as early as the initial feasibility phase of a project. When an energy company first contemplates a transportation need and the pipeline system necessary to accommodate that need, a series of data collec-tion and analysis exercises commence. How these process-es commence often sets the tone for the entire life of the project. The genesis of a new project breeds excitement through a feasibility team that often spawns hurried and extensive programs by each discipline. While certainly well intentioned, these activities often overreach the requirements of the initial feasibility assessment and if not coordinated lead to the collection of extraneous and duplicitous data. This of course results in missed schedules

and over expenditures during the sensitive project assess-ment phase. Furthermore, the uncoordinated efforts often lead to the development of multiple databases and set the stage for the future problems discussed below.

Obviously, the way to control this is to plan. The devel-opment of and adherence to project development guide-lines and processes is important to control initial and sub-sequent activities and to focus the effort to the exact needs of the project at that time and nothing more. Beyond the planning aspect is what to do with the data received. Again, how this is handled in the infancy of a project often dic-

tates how the remainder of the project unfolds.

A Multi-Disciplined TeamAt exp Energy Services (the new identify of Trow Engi-

neering Consultants Inc.), we employ unique processes to manage projects through all phases of a project to better focus efforts. We also coincidently construct an initial plat-form of data that we use to manage data throughout the life of a project. To better present how this is accomplished, it is useful to explore the various disciplines involved in a typi-cal pipeline project and the data generated by them.

As noted above, a typical pipeline project will involve disciplines associated with engineering, environment/reg-ulatory, land acquisition and community affairs. Each of


Pulling It All Together

Planning Ahead and Keeping a Pipeline Project on Target

By Michael Koski

these disciplines generate a unique set of data that must be analyzed, harmonized and processed to create deliverables, manage expectations and to ensure consistency.

Engineering generates data associated with line diameters, pipe properties, alignment, legal and civil survey, construc-tion techniques, facility locations, ancillary facilities and communications, to name a few. These data are developed in phases and build on data gathered previously.

Environment and regulatory teams gather and process data related to environmental features potentially impact-ed by a project, including location and descriptive infor-mation associated with wetlands, wildlife, threatened and endangered species, cultural resources, surface waters, soils, crops and other vegetation. The data must be maintained in a manner that supports analysis and manipulation ne-cessitated by impact assessment work. Additionally, mecha-nisms to graphically display these data along with the re-sulting analyses are required for regulatory applications.

Pipeline projects usually require the acquisition of ease-ments from private and public landowners. The process of acquiring these easements involves often protracted discus-sions with landowners, a process which generates a wide range of commitments including pipe alignment, facility locations, restoration techniques and access and timing issues. Additionally, the process must be conducted in a manner that supports the possible use of condemnation authority where available. This usually requires the docu-mentation of contact efforts, discussions, offers, etc.

Large pipeline projects require extensive stakeholder and government consultation efforts. These efforts result in the collection of commitment data as well as information use-ful for all other disciplines. The community affairs effort relies on access to complete and accurate information gen-erated by all other disciplines.

Maintaining the CenterlineAs noted above, it is critical that these disciplines do not

operate independently. It is imperative that work is planned within all disciplines with full regard for all other disci-plines. Also, each discipline continually uses data generated by other disciplines. Access to updated and consistent data across the project is imperative

Nowhere is this more evident than in the selection and management of the pipeline centerline — that is, the in-tended physical location of the proposed facilities. The se-lection of the pipeline centerline is an iterative dynamic process involving consideration for myriad issues. The pro-cess is never truly complete until the pipe is in the ground. Pipeline projects often involve thousands of changes to a centerline during the period from initial feasibility through to construction. Many of these changes are minor and some may involves tens or even hundreds of miles. The reasons for these line changes are also varied and often complex. For regulatory purposes, the reasons for changes are almost as important as the changes themselves.

These changes are generated through the activities of all project disciplines. For example, engineering and construc-tion needs may dictate the optimum location of a river crossing. This may conflict with environmental or regula-tory issue discovered subsequent to the initial siting. These situations often necessitate either an adjustment to the centerline or the development of construction or engineer-ing solutions. Additionally, land owner discussions may re-veal future plans or current activities that were not initially known and necessitate a line change. In general, the more

that is learned about a project footprint, the more the cen-terline is refined. It is important to capture all these changes and the reasons for the changes on a real-time basis.

Now where this gets particularly critical relates to the use of this centerline information by the various disciplines. For example, environmental crews use the centerline in-formation to design field survey programs. Data collected during these programs is recorded relative to the centerline. Analysis based on these data form the basis for regulatory application and subsequent approvals. Land agents use cen-terline data in discussion with landowners for the purpose of negotiating and purchasing easements. Big problems can occur if an easement is purchased in the wrong place or the wrong centerline is permitted through a regulatory action. Everyone has to be working from the same centerline.

This may sound like a simple issue readily managed, yet we have all seen or heard of projects where it is discovered late in the game that various disciplines are working from different centerlines. This has resulted in the aforemen-tioned nightmare scenarios of approvals being obtained in the wrong place or the wrong easement being acquired. The forensics of such situations usually traces back to decisions made in the project’s infancy when no one was thinking of the massive undertaking that would ultimately unfold. In these instances early planning in the initial phases of a project and the implementation of a robust data man-agement system with controls would have prevented these nightmare scenarios.

However, a number of measures can prevent these occur-rences. For example, throughout the life of a typical project, exp Energy Services employs the use of personnel referred to as “centerline coordinators.” These personnel are armed with mandated procedures that force all centerline changes to be made with full knowledge and concurrence of all dis-ciplines. These individuals need to be relatively hardnosed and require the backing and support of senior project ex-ecutives. Basically, no one changes the centerline anywhere for any reasons without the signoff of these coordinators. And the coordinators will not give such sign-off until all disciplines have approved. Then and only then is a line change made.

It is also imperative that there is only one real centerline maintained for the project. This centerline is maintained on a real-time basis. All other versions supplied either in hard or soft form are merely snapshots in time used for dis-tinct purposes while the integrity of the “real” centerline file is maintained under the relentless control of the center-line coordinator. All project deliverables such as application route sheets, permit application figures, property sketches and construction alignment sheets are generated from the “real” centerline.

To summarize, despite seeming simple, pipeline projects involve numerous disciplines and the collection, use and management of massive amounts of data. The develop-ment of these projects often involves hundreds of people even prior to the thousands required to build them. Given the combination of this diversity and the vast resources required, a great risk exists for the devastating misuse of resources and inconsistency of results. However, through careful planning, adherence to established procedures and the maintenance of a dynamic multi-disciplinary database, this risk can be effectively managed. These must, however, be instituted at the earliest phases of a project.

Michael Koski is Senior Vice President of exp Energy Services.


Pipeline contractors are well aware of environmental permitting needed to lay a transmission line across a

state, but they also need to keep abreast of the emissions from the equipment they use.

One might think all would be quiet on the emissions standards front now that the dust is beginning to settle on interim Tier 4 and Final Tier 4 doesn’t take effect for most off-road equipment until the 2013-2015 timeframe, depending on horsepower.

But not so much. Local, state and regional emission control measures for legacy engines/equipment remain and have the potential to change. The more you know about changing developments in your project area, the better equipped you’ll be to continue working, bid-ding on and winning new jobs.

There are two types of changes to be aware of: in-use rules and non-attainment zones.

New in-use rules are popping up in and around the country. While there’s been a well-publicized delay in the rules for California and New York, in-use rules continue to be in effect in Chicago, Vancouver (British Columbia) and New Jersey.

In the United States, the Environmental Protection Agency is expected to strengthen its standard for ground-level ozone by the end of July. This will likely result in a re-drawing of the non-attainment map, creating more non-attainment zones around some urban areas. It could also result in some new locations being designated as non-attainment areas for the first time.

A non-attainment area may no longer be the big city or metropolitan area you have traditionally known. Based on worksite location, you could be affected by the new non-attainment area map.

Among other things, diesel engines used in construction equipment emit oxides of nitrogen and particulate matter (PM). Oxides of nitrogen combine with other elements in the atmosphere to form ground-level ozone, which along with PM comprise two of the six criteria pollutants, which the Clean Air Act requires the EPA to set National Ambi-ent Air Quality Standards (NAAQS). In 1971, the EPA estab-lished the first one-hour NAAQS ozone standard of 0.080 parts per million (ppm). In layman’s terms, this means that the first ozone standard was measured over a one-hour time period, which could not exceed 0.080 ppm on average over a three-year period.

Based upon measurements of ozone and PM, a county is considered either “attainment” or “non-attainment,”

meaning it either meets the standard set by the EPA or it doesn’t. The Clean Air Act also requires the EPA to review the criteria pollutants and NAAQS at five-year intervals and make revisions as appropriate.

The EPA last revised the NAAQS for ground-level ozone in March 2008. The current eight-hour standard for ground level ozone is 0.075 ppm. There is discussion to reduce it to 0.060 ppm.

While it’s a good idea to become familiar with what both the EPA and local governing bodies are doing, who can keep track of all the changes?

Your construction equipment dealer should be keeping an eye on important off-road equipment emission develop-ments in your city, state or region. Stay in contact with this important source of emissions information.

For example, each John Deere dealer has a dedicated emissions expert who knows the local rules and responds to customers’ needs and questions. They’ll also be famil-iar with government funding sources, such as those that finance retrofits.

This article was provided by Deere & Co. Visit The Straightforward Blog (http://straightforwardblog.com), part of Deere’s “Emissions Hub,” to find more information about all emissions topics.


Despite the slowing down of interim Tier 4 standards and Final Tier 4 not taking effect for another couple years, local and federal governments continue to crack

down on emissions.

Keeping Up With Emissions RegulationsAn Update on Tier 4 Standards, New In-Use Rules and Non-Attainment Zones for Heavy Equipment

BRON 275 MulcherAs mulchers change the way land is cleared, mulchers themselves are changing to meet the needs of contractors pushing the edges of

efficiency and application. BRON’s reputation for heavy-duty, powerful machines built for high-production applies to every mulcher in the company’s lineup, and now especially its newest model: the 275. Designed specifically for low ground pressure and easy transportation, the BRON 275 gives contractors all the strength of a BRON mulcher in a smaller, compact size. BRON builds mulchers up to 700 hp, with models that offer 350, 440 and 540 hp, perfect for dry soil conditions. However, the company saw a need for contractors working on soft, wet ground and needing a powerful mulcher for low-er ground pressure. Enter the BRON 275, built on a D3 undercarriage and featuring a low 3.5 psi ground pressure rating. For rocky terrain, contractors have the option to upgrade to a D4-sized undercarriage. Fully hydrostatic, the 275 mulcher is powered by a Cat C7 engine, producing 275 hp, which is where the name comes from. Even working at a fast pace, the machine provides plenty of power to the mulch-ing head for grinding large trees and undergrowth into fine mulch. The BRON 275 also overcomes the challenge of keeping transportation costs low. The operating weight and size make it possible to haul two power units together on one trailer. Keeping the operator safe is always a priority within the engi-neered cab, providing ROPS, FOPS and OPS certi-fication. The cab is also climate controlled, improv-ing operator comfort, which increases productivity. BRON mulchers are used for site preparation, pow-erline ground maintenance, pipeline right-of-ways, fire fighting, seismic and leases around the world. For more information, visit www.rwfbron.com.

Brown Bear FS4000 and FS5000 Tool Carriers

Brown Bear Corp. has been building land clearing and back-filling machines for more than 20 years. The company’s models FS4000 and FS5000 Land Clearing Tool Carriers can be fitted with an optional auger backfiller. Use the Caterpillar-powered 250-hp FS4000 or the 350-hp FS5000 on the beginning of the job for land clearing, and then change out the attachments and use it again for backfilling the trench. The FS4000 and FS5000 can be fitted with either an 8-ft cut fixed tooth or flail type clearing rotor, both with overlapping cutter tooth design. Cut stumps flat at the ground due to the overlapping tooth cutter design. No sharp stubs left to puncture tires. Mulch trees and brush to smaller particle size than competitive cutters without tooth overlap. The FS4000 and FS5000 carriers are fitted with logger tires, belly pans, cab guarding, limb sweeps and other guarding necessary for woods and timber op-eration. Both units have 20 mph travel speeds. The FS4000 and FS5000 can also be optionally fitted with either a 12- or 14-ft wide auger backfiller attachment. The auger pulverizes the fill and then gently rolls it into the trench, filling the trench from the bottom up. This eliminates voids in the fills and recurring maintenance for washouts and settling. The auger backfiller reduces the amount of right-of-way needed because it works parallel to the trench line and does not require a shuttle operation to backfill like a dozer. The backfiller leaves a finished right of way that normally does not require any further dressing by blades. For more information, visit www.brownbearcorp.com.


FAE/PrimeTech PT-400FAE and PrimeTech have

come together to bring the right-of-way and land clearing indus-try the PT-400. This prime mover combines both power and func-tionality for today’s site prep and land clearing contractors. Outfitting the PT-400 with one of FAE’s durable mulching, soil sta-bilizing or rock crushing attach-ments allows the unit to grind, shred and mulch everything in its path. Its 415-hp Cat C-13 engine and tried-and-true undercarriage allow the PT-400 to traverse the most difficult terrain, from steep slopes to swampy areas that demand excellent traction and low ground pressure. With FAE’s industry leading technology, the company has created a cab with comfort and visibility that is hard to compete with. Multiple cutting teeth and head options make the PT-400 one of the most versatile prime movers on the market — making the applications nearly end-less. Applications for the PT-400 include: pipelines, rights of ways, fuel reduction, seismic lines, land clearing, site preparation, forestry tilling, vegetation management, rock crushing, soil reclamation, road construction, asphalt grinding and more. For more information, visit www.faeusa.com.

Fecon FTX600 TractorFecon Inc. is proud to introduce the FTX600 as its new flagship tractor. This tractor brings the best combination of cutting performance,

track power, ground pressure and serviceability in the 600-hp class of mulching machines. Equipped with a 600-hp Cummins QSX15 en-gine, the FTX600 delivers 210 gallons of hydraulic flow to the variable speed mulching head and solid power to the hydrostatic all steel os-

cillating undercarriage. Fitted with either the Fecon BH300 or BH350 Bull Hog, the FTX600 can achieve 98-in. cutting height and 32-in. below grade, giving the operator unparal-leled range of motion. Fecon’s Power Management system optimizes torque and rotor speed; allowing the FTX600 to tackle the toughest material, the roughest terrain and the most demanding schedules. With 5.9 psi ground pressure, this tractor offers less ground disturbance and a lighter foot-print than other machines in its class. The FTX600 boasts a spacious comfortable cab with outstanding visibility through 45-sq ft of Lexan windows. Coupled with large compart-ment doors, tilting cab and ef-ficient component layout, the FTX600 allows for easy main-tenance and serviceability. The FTX600 is ideal for a wide

range of applications including pipeline and power line right-of-way clearing, large scale vegetation management and site preparation. Designed for durability and built for performance, the FTX600 is the logical choice for the most demanding land clearing applications. For more information, visit www.fecon.com.


Loftness Kwik AX AttachmentLoftness Attachments is adding an-

other new product to its growing line of mulching heads. The new Kwik AX combines the fuel efficiency and fixed, sharpened blades of the TimberAX with the unique body design and for-ward rotation of the popular G2 Car-bide Cutter. It will be available in 53-, 63-, 73- and 83-in. cutting widths. The lower power requirements allow con-tracts to operate up to an 83-in. head on as little as 39 hp of hydraulic power. The original, patented TimberAX ro-tates up in front, picking up everything in its path to be processed between the sharpened blades and the adjustable shear bar, leaving a consistent particle size and a beautifully groomed jobsite. The new Kwik AX rotates down in front like the successful G2 Carbide Cutter, resulting in a very aggressive feed rate for all-out, high-production applica-tions such as right-of-way work, where the contractor simply needs to move forward as fast as possible, reducing vegetation to ground level, without grooming the site. When needed, the Kwik AX can produce a very fine finished product by backdragging to reprocess the material on the ground. Other new products include excavator-mounted heads, 300-hp hydraulic driven units for the prime mover market and Carbide Cutter heads with a new 28-in. diameter rotor for the 350 to 400 hp range. For more information, visit www.loftness.com.


Rayco C100 CrawlerAll forestry mulchers are not cre-

ated equal. Rayco’s C100 Crawler with its Predator mulching head stands out from the crowd. Unlike or-dinary skid steers, this purpose-built combination is designed to work in the woods day in and day out. With powerful hydraulics, a 99-hp Kubota diesel engine and steel tracks, the C100 has the power to maintain high levels of productivity even in punishing terrain. Rayco’s exclusive cooling system keeps the engine and hydraulic system running cool, even in the hottest conditions. Debris screens are easy to clean and maintain, allowing more time spent working and less time spent maintaining. A hydraulic rear winch is standard equipment. For more in-formation, visit www.raycomfg.com.

Tigercat M726E MulcherTigercat’s four-wheel drive, 300-hp mulcher is based on the extremely durable and reliable 726-series feller buncher, a machine that

Tigercat has been manufacturing and refining for nearly 20 years. The latest standard features to be added to the M726E include a rear camera system and the automatic boom float system to reduce operator input and fatigue and allow the mulching attachment to automatically follow the contours of undulating terrain. Owners and operators of the M726E cite a number of important advantages. Operators find that they are able to perform daily service quickly and easily because all service points are easy to reach. Great care

has also been taken in arranging and positioning components, making major servicing quicker and easier. The M726E has the largest attachment pump in its class, boosting productivity. It is also avail-able with a quick-attach boom adapter and multi-function hydraulic package to quickly convert the machine to a feller buncher if required. There are a number of M726E feller bunchers working in Texas and Louisiana oil and gas applications. Contractors like reliability and high uptime characteristics of the machine and consequently the high production that the machines achieve in what are often time sensi-tive land clearing jobs. Another important advantage is the optimal airflow and high capacity cooling sys-tem, essential in the typically high dust levels and extreme ambient temperatures experienced in the southern United States during summer. For more information, visit www.tigercat.com.

Add these resources to your reference library!

These resources provide the most complete coverage of pipe installation, renewal & replacement methods through planning, method selection, project design & management and so much more

Authors: Mohammad Najafi , Ph.D., P.E.

Sanjiv Gokhale, Ph.D., P.E.

PRICE: $119.99*

Trenchless Technology Pipeline and Utility Design, Construction and Renewal

PRICE: $119.99*

Trenchless Technology PipingInstallation and Inspection

Author: Mohammad Najafi , Ph.D., P.E.

*SHIPPING AND HANDLING NOT INCLUDED. | SELLING PRICE SUBJECT TO CHANGE WITHOUT NOTICE.

ORDER ONLINE AT BENJAMINMEDIA.COM/BOOK-STORE OR CALL 330.467.7588


Get in the Pipeline for 2011

Get in the Pipeline for 2011

North American Pipelines covers the business of oil and gas pipeline construction and maintenance. Don’t miss out on NAP’s comprehensive features and valuable supplements in 2011:

• NEW Big Equipment Handbook • NEW NAP Buyer’s Guide • Securing and Insuring Pipeline Systems• Construction Methods • Maintenance Tips • Leaders in the Pipeline Industry • Plus the latest news, market trends and products for the oil and gas pipeline market

Sign up now to renew your subscription for 2011

Subscribe to North American Pipelines – it’s FREE!

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

Yes, I want the bi-weekly NAP E-newsletter delivering industry stories & news via email

What is your company’s primary activity? (check only one)

A Pipeline ConstructionB Pipeline MaintenanceC Consullting/EngineeringD Government /RegulatoryE Equipment Mfg/SupplierF LegalG FinancialH Gas Transmission PipelinesI Gas DistributionJ Oil Pipeline K Other ___________________

Which types of equipment or services do you recommend for use in the oil & gas pipeline industry? (check all that apply)

A Cathodic TechnologyB Cleaning PigsC Coatings/LiningsD Corrosion MonitoringE Environmental AwarenessF Flow Control SoftwareG GIS/GPS systemsH Inline InspectionI Leak Detection/PreventionJ Offshore Pipe LayingK Pipe MaterialsL Pipeline CommunicationsM Pipeline Design EngineeringN Pipeline MachineryO Pipeline MaintenanceP Pipeline RehabilitationQ Pipeline SafetyR Pipeline SecurityS Project Financing & InsuringT ROW ManagementU SCADA/Automation SoftwareV Trenching MaterialsW Trenchless TechnologyX WeldingY Other _________________________

What is your primary job title/function at your company? (check only one)

A Owner /CEO/PresidentB Executive Mgmt/VP/COO/CFOC Financial ManagementD SuperintendentE ManagerF General ManagerG DirectorH Engineer /ConsultantI Supervisor /ForemanJ AttorneyK Other ___________________

PLEASE PRINT CLEARLY

Name ___________________________________________________________________

Title _____________________________________________________________________

Company ________________________________________________________________

Address _________________________________________________________________

_________________________________________________________________

City _____________________________________________________________________

State/Prov _______________________________________________________________

Zip/Postal Code _______________________________Country ___________________

Phone ___________________________________________________________________

Fax _____________________________________________________________________

Email ____________________________________________________________________

Signature ________________________________ Date___________________________

Fax to: 330.657.2855www.napipelines.com*The subscription is free in the USA, Canada & Mexico NAP0711


North American Pipelines Calendar

August

3-6Gas Operations ConferenceMidwest Energy Association Iowa State University Ames, IowaWeb: www.midwestenergy.org

9-12Appalachian Gas Measurement Short CourseRobert Morris UniversityMoon Township, Pa. Web: www.agmsc.org

23-24Western Regional Gas ConferenceTempe Mission Palms Hotel and Conference Center Tempe, Ariz. Web: www.westernregionalgas.org

29-31Tulsa Pipeline ExpoQuickTrip CenterTulsa, Okla.Web: www.tulsapipelineexpo.com

31-Sept. 1GeoGathering 2011Interlocken Omni Hotel and ResortsBroomfield, Colo.Web: www.geogathering.com

September

12-16 IPLOCA ConventionChina World HotelBeijingWeb: www.iploca.com

13-14Pipeline Leak Detection Conference Alaska Department of Environmental Conservation (ADEC)Sheraton AnchorageAnchorage, AlaskaWeb: www.shannonwilson.com/adec-pld

19-22American School of Gas Measurement Technology Marriott Hotel Westchase HoustonWeb: www.asgmt.com

25-28Autovation Utilimetrics Alliance for Advanced Metering & Data Management SolutionsGaylord National Resort & Convention CenterWashington, D.C. Web: www.utilimetrics.org/Autovation2011i.aspx

October

2-5Gas Machinery Conference Gas Machinery Research Council (GMRC)Renaissance Nashville and Nashville Convention CenterNashville, Tenn. Web: www.gmrc.org/gmc-2006.html

4-6ICUEEKentucky Exposition CenterLouisville, Ky. Web: www.icuee.com

24-27GIS for Oil & Gas Pipelines Conference Geospatial Information & Technology Association (GITA)Marriott Hotel WestchaseHoustonWeb: www.gita.org/oilgas

November

1-3DCA Fall Board Meeting Gaylord Texan ResortGrapevine, TexasWeb: www.dca-online.org

2-5AEM Annual ConferenceFairmont Turnberry Isle ResortMiami, Fla.Web: www.aem.org

10-12INGAA Foundation Annual MeetingGrand Del MarSan DiegoWeb: www.ingaa.org

2012

July

24-26Deep Gulf Galveston Island Convention CenterGalveston, TexasWeb: www.deepgulfconference.com

September

27-Oct. 1IPLOCA ConventionMolino Stucky HiltonVenice, ItalyWeb: www.iploca.com

24-28International Pipeline Conference & Expo Hyatt Regency Hotel and TELUS Convention CenterCalgary, AlbertaWeb: www.internationalpipelineconference.com

Submit events to [email protected] with “Events Calendar” in the subject.

The Events Pipeline Conferences, Meetings & Trade Shows

Advertiser Website Page #

Astec Underground .......................................www.astecunderground.com ....................................19

Bandit Industries ............................................www.banditchippers.com ..........................................17

Benjamin Media Resource Center ...............www.benjaminmedia.com/book-store .....................35

Benjamin Media Resource Center ...............www.benjaminmedia.com/book-store .....................37

Caterpillar Inc .................................................www.cat.com/pipeline ................................................56

Condux International .....................................www.condux.com .......................................................16

Darby Equipment...........................................www.darbyequip.com ................................................15

Enduro Pipeline Services ..............................www.enduropls.com ..................................................22

E-Z Line Support Co. .....................................www.ezline.com ..........................................................29

FAE, USA ........................................................www.faeusa.com ..........................................................3

FAE, USA ........................................................www.faeusa.com ................................................. 24, 25

Fecon ..............................................................www.fecon.com ..........................................................13

Gabe’s Construction Co. ..............................www.gabes.com .........................................................20

GeoGathering 2011 .......................................www.geogathering.com .............................................43

GIS Conference 2011 ....................................www.gita.org/oilgas ....................................................49

Advertiser Website Page #

Horizontal Technology Inc. ............................www.horizontaltech.com ..............................................5

IPLOCA ...........................................................www.iploca.com .........................................................53

Laney Directional Drilling ...............................www.laneydrilling.com................................................22

Loftness Manufacturing ................................www.kwiktrim.com ......................................................31

McLaughlin .....................................................www.mightymole.com .................................................9

MESA ..............................................................www.mesaproducts.com ...........................................53

Michels Corporation ......................................www.michels.us ..........................................................11

Neptune Research Inc ..................................www.neptuneresearch.com.......................................23

No-Dig 2011 ...................................................www.nodigshow.com .................................................54

Pennington Seed ...........................................www.penningtonseed.com ........................................55

Pipeline Machinery-CAT ................................www.plmcat.com ..........................................................7

Southeast Directional Drilling ........................www.southeastdrilling.com ........................................33

The HDD Company .......................................www.thehddcompany.com........................................35

Tulsa Pipeline Expo ........................................www.tulsapipelineexpo.com ......................................39

Vacuworx International ..................................www.vacuworx.com .....................................................2

Advertisers Index

napipelines.com JULY/AUGUST 2011 | North American Pipelines 53For more information go to napipelines.com/info


Business Cards

Expose your company to over 12,000* customers with a FREE basic listing in the North American Pipelines Buyer’s Guide!It’s as easy as 1-2-3!1. Visit: www.napipelines.com/buyers-guide 2. Complete the listing form 3. Click submit

Deadline for listing submissions is September 30, 2011.

Includes a complimentary basic listing on the Online Buyer’s Guide at: www.bmi-buyersguide.com Questions? Contact Vicki Losh at [email protected] or 330-467-7588. *Publisher’s Own Data

For more information go to · Chris Slogar Elizabeth C. Stull Marketing Director Kelly Dadich...

Documents

Transcript of For more information go to · Chris Slogar Elizabeth C. Stull Marketing Director Kelly Dadich...