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4 North American Oil & Gas Pipelines | MARCH 2012 napipelines.com

On the COver: Pigging tools help keep pipelines clean and flowing efficiently. Inline inspection tools, aka “smart” pigs, pinpoint internal damage and provide a method for mapping pipelines for asset management.

20 Squeal Like a Pig Whether “smart” or not, pigging tools keep pipelines squeaky clean.

By Bradley Kramer

FeAtUreS

26 To Rent or to Buy? Find some guidance about equipment options in today’s pipeline industry.

By Karma Newberry

31 Talent Search The oil and gas industry is seeking a new generation of workers to fill the ranks.

By Sylvia Vorhauser-Smith

34 Threading the Trenchless Needle … Precisely Phoenix-based Specialized Services Inc. employed a laser guided boring

system at an underground liquids petroleum gas storage facility.

By Randy Happel

DePArtMentS8 News

16 Market Watch

18 Project Roundup

38 Product Showcase

40 Calendar

COLUMnS6 Editor’s Message

42 Pipeline Perspectives

MArKetPLACe40 Index of Advertisers

41 Business Cards

March 2012Volume 5 Issue 3Published by Benjamin Media, Inc.

North American Oil & Gas Pipelines is published twelve times per year. Copyright 2012, Benjamin Media Inc., 1770 Main St., 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 Oil & Gas Pipelines, P.O. Box 190, Peninsula OH 44264 USA.

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North American Oil & Gas Pipelines Magazine is not affiliated or associated with North American Pipe Corporation of Houston, Texas.


Fear Dependence vs. Energy Independence

Right now a debate rages in the U.S. Congress about a pipe-line that could improve energy independence, but faces difficult challenges from those who spread fears of contaminated aqui-fers. In the Northeast, vast deposits of natural gas lie in wait for drillers to access this potent source of fuel, but fear mongers spread half-truths and misinformation about hydraulic fractur-ing and polluting the environment. And so it goes.

These days, the oil and gas industry resembles a nasty political race, rather than a robust business market. Between the Keystone XL project tapping into oil sands in Al-berta and the development of shale plays throughout North America, particularly in the Marcellus and Utica regions, the potential for energy independence is ripe — if only we could shed our dependence on fear.

The primary object of that fear tends to be the environment, and certainly the pipe-line industry must strive to be a good steward of the land. You can see the effort that TransCanada has made to ensure the safety of its Keystone XL pipeline proposal, endur-ing three years of rigorous review. Granted, oil and gas has taken it on the chin over the last two years, with an unfortunate string of high-profile leaks, starting with BP’s disaster in the Gulf of Mexico in April 2010.

BP just settled with a group representing individuals and businesses of the Gulf Coast, agreeing to pay $7.8 billion in damages. After two years, including a yearlong moratorium, deepwater drilling has finally started to regain momentum in the Gulf.

The Deepwater Horizon incident was terrible, in the loss of 11 human lives and the damage to the ecosystem. Afterward, however, the industry seemed to suffer from a piling-on effect. The PG&E pipeline explosion in San Bruno, Calif. The Enbridge spill in Marshall, Mich. Exxon’s Silvertip pipeline leak near Billings, Mont. It seemed we were reporting a new incident every other week.

While pipelines remain the safest method of transporting oil and gas, these events sparked a vigorous campaign against the industry. Yet, the fears that opponents spread about oil and gas development and transportation pose an opportunity to enlighten.

The United States consumed 19.1 million barrels of petroleum products per day in 2010, according the U.S. Energy Information Administration, and 49 percent of that was imported from other countries. While a significant portion of U.S. petroleum im-ports originated in the Middle East and Venezuela, the majority (25 percent) came from Canada.

Expanding that relationship by approving the Keystone pipeline is a no-brainer, but the U.S. Senate failed to speed up approval of the project during a March 8 vote. Law-makers vowed to try, try again.

Expanding production of the shale plays should also take little thought. A study by Cleveland State University, released Feb. 28, reported that shale drilling could add $5 billion to Ohio’s economy by 2014 and add about 66,000 jobs. Penn State conducted a similar study in 2011 that showed broad economic benefits from activities in the Marcel-lus shale. Indeed, expansion warrants caution. With such rapidly developing technol-ogy, the industry must take strides to maintain safety and educate the public about the processes used in extracting oil and gas from shale.

Growth promotes growth. In the coming year, the oil and gas industry has a tremen-dous opportunity to continue expanding, but first it must dispel fears and demonstrate safe practices. Education is crucial in winning over public appeal.

Brad KramerAssociate [email protected]

Publisher Bernard P. Krzys

Associate Publisher Robert D. Krzys

Editor James W. Rush

Associate Editor Bradley Kramer

Contributing Staff Editors Sharon M. Bueno

Andrew Farr Keith Gribbins Pam Kleineke Kelly Pickerel

Graphic Designers Sarah E. Hayes

Chris Slogar Elizabeth C. Stull

Marketing Director Kelly Dadich

Regional Sales Managers Ryan Sneltzer

Dan Sisko

Audience Development Manager Alexis R. White

Web & Interactive Manager Mark Gorman

Conference Event Coordinator Vicki Losh

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.

Don W. Thorn President, Welded Construction LP

Kevin Waschuk Vice President, Waschuk Pipe Line Construction Ltd.

Bob Westphal Senior Vice President, Michels Corp.

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editor’s Message


North America News

BP will pay $7.8 billion to ease the damage from the 2010 Deepwater Horizon oil spill in the Gulf Coast. The company announced it reached a settlement with the Plaintiffs’ Steer-ing Committee (PSC), subject to final written agreement, to resolve the substantial majority of legitimate economic loss and medical claims stemming from the tragedy. The PSC acts on behalf of individual and business plaintiffs in the Multi-District Litigation proceedings pend-ing in New Orleans (MDL 2179).

“From the beginning, BP stepped up to meet our obligations to the communities in the Gulf Coast region, and we’ve worked hard to deliver on that commitment for nearly two years,” said Bob Dudley, BP Group CEO. “The pro-posed settlement represents significant prog-ress toward resolving issues from the Deepwa-ter Horizon accident and contributing further to economic and environmental restoration efforts along the Gulf Coast.”

BP estimates that the proposed $7.8 billion settlement will be paid from a $20 billion trust, which was established to satisfy claims arising from the oil spill. The settlement includes a commitment of $2.3 billion to help resolve economic loss claims related to the Gulf seafood industry.

Prior to the proposed settlement, BP had spent more than $22 billion toward meeting its commitments in the Gulf. BP has paid out more than $8.1 billion to individuals, businesses and government entities. In addition, BP has spent approxi-mately $14 billion on operational response.

This proposed settlement is not expected to result in any increase in the $37.2 billion charge (which included the $20 billion charge taken in respect of the trust) previously recorded in BP’s financial statements. BP’s current expecta-tion is that the provision for litigation and claims, which in-cludes the claims covered by this proposed settlement, will increase by approximately $2.1 billion with no net impact to either the income or cash flow statements, because this is a settlement that is expected to be payable from the Trust. The amount that can be further provided with no net impact to the income statement therefore is expected to be reduced from approximately $5.5 billion to approximately $3.4 bil-lion. While BP has sought to reliably estimate the cost of this proposed settlement, it is possible that the actual cost could be higher or lower than this estimate depending on the outcomes of the court-supervised claims processes. In ac-cordance with its normal procedures, BP will re-evaluate the assumptions underlying this estimate on a quarterly basis as more information, including the outcomes of the court-supervised claims processes, becomes available.

The trust was established to satisfy not only legitimate in-dividual and business claims but also a number of other costs

BP Settles With Gulf Coast Group for $7.8 BillionAgreement to Resolve Economic Loss and Medical Claims From 2010 Oil Spill

BP has agreed to a settlement with the group associated with the Gulf Coast region affected by the 2010 Deepwater Horizon oil spill. (Photo courtesy of BP p.l.c.)

related to the accident and oil spill. Other costs to be paid from the Trust include state and local government claims, state and local response costs, natural resource damages and related claims, and final judgments and settlements. It is not possible at this time to determine whether the $20 billion Trust will be sufficient to satisfy all of these claims as well as those under the proposed settlement. Should the Trust not be sufficient, payments under the proposed settlement would be made by BP directly.

The proposed settlement does not include claims against BP made by the U.S. Department of Justice or other federal agencies (including under the Clean Water Act and for Natu-ral Resource Damages under the Oil Pollution Act) or by the states and local governments. The proposed settlement also excludes certain other claims against BP, such as securities and shareholder claims pending in MDL 2185, and claims based solely on the deepwater drilling moratorium and/or the re-lated permitting process.

The proposed settlement is comprised of two separate agreements, one to resolve economic loss claims and another to resolve medical claims. Each proposed agreement provides that class members would be compensated for their claims on a claims-made basis, according to agreed compensation protocols in separate court-supervised claims processes. The proposed agreement to resolve economic loss claims includes the financial commitment for the Gulf seafood industry and a fund to support continued advertising that promotes Gulf Coast tourism.

The proposed agreement to resolve medical claims involves

napipelines.com MARCH 2012 | North American Oil & Gas Pipelines 9

began operating in August 2010, and we thank him and his team for their dedication and professionalism,” said Mr. Dudley. “During Mr. Feinberg’s tenure, BP has paid approximately $6.1 billion to resolve more than 220,000 claims from individuals and businesses through the GCCF.”

Payments in class action settlements typically are not made until after final approval of a settlement, but BP has agreed not to wait for final approval of the economic loss settlement before claims are paid. The economic loss claims pro-cess will continue under court supervision before final approval of the settle-ment, first under the transitional claims process, and then through the settle-ment claims process established by the proposed economic loss agreement.

“This settlement reflects our commitment not only to the Gulf region, but also to the United States as a whole,” Dudley said. “BP has operated in Amer-ica for more than 100 years, employs nearly 23,000 people in the U.S., and invests more in the U.S. than in any other country.”

payments based on a matrix for certain currently manifested physical conditions, as well as a 21-year medical consultation program for qualifying class members. It also provides that class members claim-ing later-manifested physical conditions may pursue their claims through a media-tion/litigation process. Consistent with its commitment to the Gulf, BP would also provide $105 million to improve the avail-ability, scope and quality of healthcare in Gulf communities. This health care out-reach program would be available to all individuals in those communities, regard-less of whether they are class members. It would include expanding capacity to ad-dress community health needs, including primary care, mental health services and access to environmental health specialists, as well as enhanced training and educa-tion related to Gulf Coast health issues.

Under the proposed settlement, class members would release and dismiss their claims against BP. The proposed settlement is not an admission of liability by BP.

The proposed settlement also provides that, to the extent permitted by law, BP will assign to the PSC certain of its claims, rights and recoveries against Transocean and Halliburton for damages not recover-able from BP.

The proposed settlement is subject to reaching definitive and fully-documented agreements within 45 days, and if those agreements are not reached, either party has the right to terminate the proposed settlement. Once there are definitive and fully-documented agreements, BP and the PSC would then seek the Court’s prelimi-nary approval of the settlement. Under federal law, there is an established pro-cedure for determining the fairness, rea-sonableness and adequacy of class action settlements. Pursuant to this procedure, and subject to the Court granting pre-liminary approval of both agreements, there would be extensive outreach to the public, including through advertisements and direct mail, to explain the settlement agreements, class members’ rights, in-cluding the right to “opt out” of the class-es, and the processes for making claims. The Court would then conduct fairness hearings at which class members and var-ious other parties would have an oppor-tunity to be heard and present evidence. The Court would then decide whether or not to approve each proposed settlement agreement.

The proposed economic loss settle-ment provides for a transition from the Gulf Coast Claims Facility (GCCF) ad-ministered by Kenneth Feinberg. “Ken Feinberg has overseen the GCCF since it

PLCA Announces New President at Annual Convention

Dan Murphy of Precision Pipeline was introduced as the new president of the Pipe Line Contractors Association (PLCA) during the association’s 64th annual convention, Feb. 21-25, at the Park Hyatt Aviara, in Carlsbad, Calif. PLCA represents the mainline oil and gas contractors from across the United States. Their annual meeting is always well attended and this year was no exception with more than 550 conventioneers.

The 2011 PLCA president was Chris Leines, of Minnesota Ltd., and he was the focal point of this year’s convention. Leines and his wife Wendy were the hosts at many of the events. Leines reported in 2011 that 3,037 miles of new pipeline were constructed. Plus, 722 miles of pipelines were tested. The construction value was $3.82 billion. This was a 45 percent increase in miles compared to 2010 and an 11 percent increase in revenue.

Every other year, an auction is held by Ritchie Bros. This was the case this year, and Butch Graham of Ritchie Bros. was the auctioneer and emcee. The auction raised $500,000, followed the next day by an additional $100,000 donation, for a total of $600,000. At the convention, PLCA awarded 20 four-year scholarships at $8,000 per year to PLCA members.

This year, Steve Ford of the Wall Street Journal and the Fox Business Network, discussed positive prognostications for pipelines during a business session. He particularly fo-cused on the Keystone XL pipeline, which the Obama ad-ministration had recently denied. The Keystone project was a hot topic throughout the convention.

The Annual Banquet and Floor Show featured coun-try and western entertainer Jake Owen. At the banquet, along with Murphy being introduced as the 2012 presi-dent, the PLCA also announced John Allen, of Pipe Line Constructors, as 2012 first vice president; Ronnie Wise,

of Price Gregory International, as second vice presi-dent; and Frank Welch, of Rockford Corp. as treasurer.

The 2013 PLCA Convention will be held Feb. 12-16, at the Hyatt Regency at Gainey Ranch in Scotts-dale, Ariz.

TransCanada Launches Open Season for Keystone Hardisty Terminal

The Keystone project continues to move forward north of the border, as TransCanada Corp. launched an open season to obtain binding commitments from interested parties for the Hardisty Terminal, which will be located at the major crude oil terminal hub in Hardisty, Alberta.

The proposed project is an aboveground, 2 million bar-rel crude oil batch accumulation terminal with tankage and pipeline infrastructure that could be expanded subject to the level of interest received in this open season. The proposed project will provide new infrastructure for Western Canadian producers and access to the Keystone Pipeline System.

Following completion of the open season, which closes at 12 p.m. (Mountain) on March 22 and subject to receipt of sufficient contractual commitments from shippers, Trans-Canada intends to proceed with the necessary regulatory ap-plications for approvals to construct and operate the termi-nal. Subject to regulatory approvals, the project is expected to be in-service by early 2015.

The Keystone Pipeline System is an operational 3,461-km (2,151-mile) pipeline that is delivering over 500,000 barrels per day of Canadian crude oil to U.S. Midwest markets and Cushing, Okla.

TransCanada Also Announces New Independent DirectorThe board of directors of TransCanada Corp. has appoint-

ed a new independent director, Rick Waugh, effective Feb. 1. “We are extremely pleased to have Mr. Waugh join the

board of directors to help TransCanada continue to grow and realize our ambitious growth plans,” said Barry Jackson, chairman of TransCanada. “We look forward to drawing on his extensive experience and knowledge in the areas of bank-ing, international markets and organizational leadership.”

Waugh has been the president, CEO and a director of the Bank of Nova Scotia (Scotiabank) since March 25, 2003. He began his career with Scotiabank as a branch employee in 1970 and worked in increasingly senior roles until 1985, when he moved to New York as Scotiabank’s most senior executive in the U.S. Subsequently, he was vice chairman of corporate banking from 1995 to 1998 and vice chairman of international banking and wealth management from 1998 to 2003.

Waugh is a member of the Canadian Council of Chief Executives. He currently serves as president and is a director of the International Monetary Conference (IMC) and is vice chair of the board of the Institute of International Finance (IIF). Waugh is a member of the Council of the Americas and is on the Chairman’s International Advisory Council for the Americas Society. He serves on the board of directors for Catalyst Inc. and is chair of the Catalyst Canada Advi-sory Board. In addition, he serves on the advisory council of the Schulich School of Business at York University, the Guanghua School of Management at Peking University and the Canadian Museum of Human Rights.

Waugh has long been active in several philanthropic or-ganizations, including the United Way of Greater Toronto, where he was campaign chair in 2006. He is also a member of the board of the MS Society of Canada’s Multiple Sclero-sis Scientific Research Foundation. Waugh is a director of St. Michael’s Hospital and was co-chair of the hospital’s cam-paign to build the Li Ka Shing Knowledge Institute.

Waugh holds a bachelor of Commerce (Honors) degree from the University of Manitoba and a Master of Business Administration from York University. He is also a Fellow of the Institute of Canadian Bankers and has been awarded


2012 PLCA board of directors.

Three’s company: Chris and Wendy Leines with Steve Ford (center).


related Marcellus shale well drilling impacts were factually grounded and legally sound under applicable court precedent. He also detailed for the court the substan-tial harm that continuation of the stay would impose on the MARC I project and on CNYOG, which stood to lose as much as $80 million and potentially faced the failure of the project altogether unless the stay was lifted.

Later that same day, the Second Circuit denied the emergency motion and vacated its earlier emergency temporary stay. As a result of Dewey & LeBoeuf’s efforts, CNYOG’s construction of the MARC I pipeline may now resume. Husch Blackwell LLP served as co-counsel to CNYOG.

The Dewey & LeBoeuf team included partners James F. Bowe Jr. and Alessi, and associates Jeffrey D. Kuhn and Gregory G. Nickson. Dewey & LeBoeuf is a full-service global law firm, providing legal counsel throughout the Americas, Europe, Russia/CIS, the Middle East, Asia and Africa.

Honorary Doctor of Laws degrees from York University and Assumption Univer-sity.

Court Rules in Favor of Marcellus Shale Pipeline

Thanks to the efforts of the law firm Dewey & LeBoeuf, a $257 million pipe-line project in the Marcellus shale is cleared to move forward.

Dewey & LeBoeuf helped secure a sig-nificant victory in the U.S. Court of Ap-peals for the Second Circuit for Inergy LP and its subsidiary Central New York Oil and Gas Co. LLC (CNYOG) in the case, which clears the way for the develop-ment of the project. Upon completion, the pipeline will transport natural gas produced in Pennsylvania’s Marcellus shale, one of the nation’s largest known natural gas supply resources, to several major interstate pipelines.

On Feb. 14, various environmental groups, led by the Sierra Club and its counsel, Earth Justice, filed a petition in the Second Circuit to overturn Federal Energy Regulatory Commission (FERC) orders authorizing CNYOG to construct and operate a 39-mile interstate natural gas pipeline in north-central Pennsylva-nia known as the MARC I pipeline. The purpose of the MARC I pipeline is to pro-vide much-needed access to interstate markets for natural gas to be produced from the Marcellus shale.

Petitioners alleged that FERC violated the National Environmental Policy Act (NEPA) by approving the MARC I pipeline without considering the environmental impacts of Marcellus shale well drilling and associated infrastructure development. FERC had concluded that NEPA did not re-quire it to analyze environmental impacts related to Marcellus shale well drilling be-cause those activities are outside its juris-diction and are not readily evaluated other than in a general manner given the many uncertainties involved. The petitioners re-quested an emergency stay of construction and tree clearance activity for the proposed interstate pipeline pending further review of the court. That emergency stay was granted by the Second Circuit on Feb. 17, and with it, all construction work on the MARC I project was suspended.

CNYOG successfully intervened in the Second Circuit proceeding, and oral argu-ments on the emergency motion for stay were held before a three judge panel in the Second Circuit courthouse on Feb. 28, dur-ing which Dewey & LeBoeuf partner Robert J. Alessi argued on behalf of CNYOG. In his argument, Alessi pointed the court to ex-tensive record support for FERC’s determi-nation that its environmental review of the

Early Sales Hit Record High for PDIAccounting Book

During its first month of be-ing released, the energy industry reference book “Petroleum Ac-counting: Princi-ples, Procedures, & Issues” has sold and shipped nearly half of its first printing.

The seventh edition of the book is selling quickly thanks to the demands from within the industry, according to Dennis Jennings, director of energy programs for the Professional Development Institute (PDI).

“Energy professionals must understand how and from where the financial numbers they deal with every day are generated,” Jennings said. “This book provides the answers they need.”

Completely updated from previous versions, “Petroleum Accounting: Principles, Procedures, & Issues” features es-sential industry accounting and reporting changes, Jen-nings added.

The seventh edition not only covers industry accounting and reporting changes and updates from the SEC, FASB, EITF and the IRS, but also tackles many recent developments affect-ing all energy professionals, including: • The SEC’s release on Modernization of Oil and Gas Report-

ing, and FASB’s compliance amendments; • FASB’s release of standards covering issues such as fair val-

ue and business combinations, all relative to oil and gas companies;

• Explosive growth in unconventional oil and gas produc-tion methods;

• Extreme fluctuation of oil and gas prices; • Regulations resulting from recent incidents affecting the

environment and worldwide financial crises; and • Political issues affecting the industry worldwide.

“We’ve been pleased with the initial feedback received from purchasers of the seventh edition,” said PDI President Ken Robertson. “In particular, buyers have singled-out topics such as derivatives accounting, risk management and retirement obligations with high praise.”

The book is available for immediate distribution, selling for $225, plus applicable shipping and tax. Copies may be or-dered through the website at www.petroleumaccounting.org.

In addition, “Petroleum Accounting: Principles, Procedures, & Issues” is accompanied by a compact disk, which provides a convenient means of research for forms, regulations and often-used reference tools.

The Professional Development Institute, located at the Uni-versity of North Texas, is a 501(c)(3), not-for-profit education corporation that provides versatile, innovative, cost-effective training programs to professionals worldwide. PDI is recog-nized as the world’s leading provider of oil and gas accounting education as well as training programs for virtually all profes-sional services areas.

INGAA: Pipeline Capacity Important Concern for Gas-Electric Integration

In response to a new rule proposed by the U.S. govern-ment, the natural gas industry is stressing the importance of pipeline capacity. Don Santa, president and CEO of the Interstate Natural Gas Association of America (INGAA), released a statement in response to discussion at the U.S. Federal Energy Regulatory Commission (FERC) meeting on gas-electric reliability.

“We appreciate FERC’s increasing recognition of the im-portance of natural gas-electric power integration, and its acknowledgment that this is a complex issue that likely will require a multi-year initiative,” Santa said. “We agree and urge FERC and the North American Electric Reliability Corporation to take a leadership role in promoting solu-tions. Industry negotiations, however earnest, seem un-likely to achieve desired results without the guidance that these regulators can provide.”

FERC’s proposal includes provisions that support coor-dination between the natural gas and electric industries, standards for pipeline postings of information regarding waste heat, and general revisions to the standards designed to allow more efficient processing of wholesale natural gas transactions.

With respect to the standards regarding coordination between the natural gas and electric industries, the new standards provide public utilities and other shippers with clear identification of changes in the pipelines’ system conditions by creating 15 new notice types posted on the pipelines’ websites and disseminated through email, ac-cording to a FERC statement. The new notice types inform shippers and interested parties of intraday bumps, opera-tional flow orders and other critical notices. The use of these additional notice categories should enable shippers to more quickly identify changes in pipeline conditions by enabling them to filter pipeline notices more efficiently.

“Determining the amount of pipeline capacity needed to ensure electric reliability — and who will hold and pay for that capacity — are the central questions that must be addressed,” Santa said. “The rules governing wholesale power markets will need to be reconciled with these de-terminations. The interstate natural gas pipeline industry has a proven track record of building infrastructure and providing services when the needs of the market are ex-pressed by customers willing to reserve and pay for pipe-line capacity.

“While there is merit to addressing opportunities for improving communications and scheduling, it is unre-alistic to believe that these efforts alone will ensure that natural gas generators can operate reliably under any cir-cumstances.”

ROSEN Awarded Longest Offshore Inline Inspection Project in U.S. History

ROSEN was awarded an inline inspection (ILI) project that lands the company in the re-cord books yet again. The offshore in-line in-spection of the 36-in. segment of the Gulf-stream pipeline will be the longest offshore in-line inspection in U.S.


ROSEN will inspect a 429-mile subsea pipeline, making it the longest inline

inspection project in U.S. history.


field (TFI) MFL technology of Intratech Inline Inspection Services Ltd. With circumferential MFL inspection technology, Baker Hughes Process and Pipeline Services group can assist operators with locating specific pipe-line seam threats, such as hook cracks, lack of fusion and long narrow-axial corrosion. The circumferential MFL technology will now be produced in the larger diameter pipeline sizes, complete with speed control and inertial navigation capabilities.

For more than two decades, Baker Hughes’ pipeline inspection servic-es have partnered with pipeline operators to manage integrity threats in liquid and gas pipelines, both onshore and offshore. The circumferential MFL technology now complements the Baker Hughes pipeline integrity products, including solutions for mechanical damage, metal loss, cracking, bending strain, geospatial location and corrosion detection.

history, stretching 429 miles across the Gulf of Mexico.

Previously, ROSEN was the first to inspect the Langeled Pipeline System spanning from Nyhamna, Norway, to Easington, U.K., which until 2011 was the world’s longest subsea pipeline (729 miles, 42- and 44-in. diameter).

The Gulfstream Pipeline System is a multi-diameter pipeline that begins in Alabama and Mississippi, then crosses the Gulf of Mexico into Florida. The natural gas pipeline began construc-tion in 2001 and became the first in-terstate pipeline to cross the Gulf.

The pipeline, operated by Williams, is a 50/50 partnership with Spectra En-ergy. Gulfstream is a strategic natural gas asset for the state of Florida and a vital part of meeting their residential and power needs.

The project will be completed in three phases: cleaning services, defor-mation assessment and combo ILI in-spection. To date phase one, the clean-ing and gauging pig inspections, have been successful, verifying that results are within the required tolerances for proceeding with the geometry ILI tool. The final inspection phase will include ROSEN’s combination ILI tool consisting of high-resolution magnetic flux leakage (MFL) and geometry tech-nologies. The configuration will also include a ROSEN Speed Control Unit (SCU).

The SCU stabilizes tool velocity dur-ing the run to ensure optimal magne-tization and data quality. During the cleaning and gauging phase of the project a ROSEN Pipeline Data Logger (PDL) was used to measure and record temperature and pressure profiles, de-tect and located pipe restrictions, and monitor tool behavior. The additional data gained by using the PDL was es-pecially beneficial given the extreme offshore pipeline environment, and because it had not been previously in-spected using ILI technology.

Baker Hughes Expands Pipeline Inspection Services

Baker Hughes has broadened its pipeline service portfolio to include circumferential magnetic flux leakage (MFL) inspection technology, which enables pipeline operators to identify anomalies in pipeline long seams and more effectively manage the risk asso-ciated with cracks in long seam welds and the overall integrity of their pipe-line assets.

Baker Hughes recently acquired the assets and circumferential/transverse

DCA Hangs 10 in HawaiiThe Distributions Contractors Association (DCA) held its 51st

annual convention at Fairmont Orchard Resort on the Kohala Coast on the “Big Island” of Hawaii. The turnout for the con-

vention included more than 330 attendees.

DCA’s strategic plan has it focusing on in-creasing on the num-ber of regular mem-bers. DCA’s contractor member profile is very specific. “Any contrac-tor engaged in the con-struction and mainte-nance of distribution

pipelines and underground utilities.” At the end of 2011 DCA’s regular members has increased to 59. On the associate member side, 2011 ended with 94 members.

DCA conventions have a fine blend of business, networking and fun. This year’s convention was chaired by Greg Dahl, of ARB Inc., DCA’s 2011 president. There were numerous com-mittee sessions ranging from the Safety Committee, HED Committee, Membership Committee and more. A featured speaker at one of the sessions was Chris Daum, of FMI Capital Advisors, who discussed his economic forecast for the gas dis-tribution industry.

The major network-ing events included a Caterpillar Welcome Reception, a Case Key-note Breakfast, a Vacu-worx Super Bowl Party, a Volvo Auction Recep-tion, a Ditch Witch Members Breakfast, an American Augers Golf Outing, a Hammer-Head Aloha Breakfast, a Deere/TT Technologies President’s Reception and a Vermeer President’s Dinner.

Ritchie Bros. conducted the 22nd annual auction. Butch Gra-ham of Ritchie Bros. was emcee and main auctioneer. The auc-tion raised an amazing $411,000.

At the President’s Dinner, Kevin Michels, of Michels Corp., assumed the president’s reins for 2012. Tim Bell, of Midwestern Contractors, became vice president, and Grady Bell assumed the position of treasurer.

DCA’s mid-year meeting will be July 11-15 at La Posada de Santa Fe Resort & Spa in Santa Fe, N.M. The 52nd annual con-vention will be March 5-10, 2013, at the Lowes Miami Beach Hotel in Miami Beach, Fla.

Underground Corrosion Training to be Offered at WVU

The 57th annual Appalachian Underground Corrosion Short Course (AUCSC 2012) will take place May 15-17, at West Virginia University in Morgantown, W.Va. Detailed informa-tion and online registration is available at www.aucsc.com.

The AUCSC offers more than 100 hours of basic, intermedi-ate and advanced training, providing attendees with technical information about the causes and prevention of corrosion on underground structures.

Special topics will focus on pipelines, integrity manage-ment, internal corrosion and coatings. The event will also

feature hands-on, outdoor workshops, as well as 85 exhibits featuring the latest products and services for corrosion protec-tion, instrumentation, materials and pipeline services.

Licensed professional engineers may earn professional de-velopment hours for attending AUCSC. Engineers should sub-mit proof of their completion of AUCSC courses to their state engineering licensing board. Additionally, students may earn Continuing Education Units (CEUs) from West Virginia Uni-versity. CEU application forms are available at the Operations Desk during AUCSC registration. A NACE Technician Review Course and the NACE Corrosion Technician Exam are offered, and AUCSC course hours may be applied toward NACE recer-tification requirements.

Advance registration for the entire AUCSC 2012 program is $125, and onsite registration is $155. Those interested in at-tending should call (304) 293-4307 or email [email protected] for more information. Registration is also available online.

Audubon Engineering Achieves a Million Safe Man Hours for 2011

Safety first! Audubon Engineering is proud to announce that its employees have worked more than 1 million safe man hours in 2011 and have gone 14 years without a recordable injury.

“To reach a million safe man hours without a recordable inci-dent or injury this past year is not only an outstanding achieve-ment for our employees, but also marks a significant milestone for Audubon Engineering and its phenomenal growth,” said Chris Watford, director of health safety and environment (HSE) for Audubon. “While Audubon Engineering has had ‘zero re-cordable incidents’ since the company’s inception, this is the first time we’ve worked enough hours to qualify for a million safe hours in one calendar year.”

Audubon Engineering employees may work in environ-ments that are often harsh and demanding — providing full-service project solutions for oil and gas, petrochemical and refining, and power generation industries. Global assignments can range from offshore and onshore developments, including engineering, procurement and fabrication (EPF), to design and operational support for large engineering, procurement and construction (EPC) projects.

The year 2011 also marked additional milestones for the company, including the doubling of its head count during the calendar year to 750, as well as being named by the Houston Chronicle as one of Houston’s “Top 100 Workplaces in Houston” in which Audubon was listed as ranking No. 16.

Audubon, founded in 1997, is a full-service, global project solutions provider. It offers the power and flexibility of compre-hensive engineering and service disciplines through a unique combination of in-house professionals, affiliate companies, and industry alliances. Headquartered in Houston, Audubon has four affiliate companies and 11 offices worldwide.

GTI Launches Emerging Technology ProgramThe Gas Technology Institute (GTI), a not-for-profit RD&D

organization with a 70-year history of serving the natural gas industry, has announced the launch of a North American (U.S. and Canada) industry collaborative to drive the deployment of energy-efficient emerging technologies and solutions.

The Emerging Technology Program (ETP) was developed with significant input and guidance from industry stakehold-ers ensuring that this program will meet the varying needs of utilities, energy efficiency programs and ratepayers.

“We are very encouraged by the interest and engagement by the utilities and energy efficiency community — our intention is to fill a missing gap and explore technologies and program solutions that show the most promise for gas utilities and en-


2012 DCA board of directors.

Vacuworx sponsored a Super Bowl party at this year’s DCA Convention. From left:

Shawn and Cassidy Lowman, Bill Solomon, and Beth and Randy Hayes.


industry. This program is a major step in the right direction.”Project opportunities for 2012 include combination space/water heater systems

for the residential and small commercial sectors, high-efficiency gas heating rooftop packages for the commercial sector, and a boiler retrofit technology that promotes significant energy and water savings for the commercial and industrial sectors.

“We have a strong foundational base of support from the industry. It’s a great opportunity to join together and accelerate market acceptance of emerging tech-nology. The larger the group, the more powerful presence we have, so we aspire to add more members and continue to build on the program,” Kerr said. For more information, visit the website at www.gastechnology.org/ETP.

NEB Approves Northwest Mainline ExpansionIn a decision issued Feb. 28, the Canadian National Energy Board (NEB) an-

nounced its approval of the Northwest Mainline Expansion Project (the project) submitted by NOVA Gas Transmission Ltd. (NGTL).

The project includes the construction and operation of three new natural gas pipeline loops totaling 111.2 km in northeastern British Columbia and northwest-ern Alberta. The pipeline loops would be alongside existing rights of way.

The $324 million project will link natural gas supplies from the Upper Peace River area to markets in Canada and the United States. The board accepts NGTL’s submission that there is adequate market demand for the gas to be transported by the project.

The board is satisfied with NGTL’s efforts in minimizing potential environmental impacts by proposing a right-of-way that is largely alongside existing rights of way. Should the project be constructed, it would not result in new permanent access roads.

The NEB’s approval of this project is contingent on conditions that NGTL must meet. The conditions relate to pipeline integrity, the protection of the environ-ment, protection and monitoring of caribou habitat and matters of public and Aboriginal consultation.

The company is required to submit regular updates to the NEB on consultation activities with Aboriginal groups and describe how any concerns were addressed. As well, NGTL must provide the NEB with a plan regarding Aboriginal participation in construction monitoring.

ergy-conscious consumers,” said Ryan Kerr, manager of emerging technologies at GTI, who will head up the new program.

The ETP is focused on accelerating the commercialization and adoption of the latest end use and energy efficiency technologies. The program is designed to help companies identify and evaluate the most promising products and integrated solutions and assess their suitability for future use in the market-place. The collaborative will leverage the col-lective intelligence, expertise, and funding of members from the natural gas industry to help deploy new technologies.

In the past, many technology solu-tions did not have the market impact that stakeholders felt that they could. “We saw a lot of good R&D happening, but less of a concerted effort to take that technology into the marketplace,” Kerr said. “With the collaborative approach, we’ll be able to ap-proach national manufacturers and big-box retailers with a larger voice representing utilities across the U.S. and Canada.”

Southern California Gas (SoCalGas), a natural gas utility serving customers in Central and Southern California that has its own statewide emerging technology program in place, was one of the early sup-porters of the new North American collab-orative. “Early on, we identified a need for a broad effort to foster large demonstra-tions to develop program data, to drive costs down, and to demonstrate to manu-facturers and consumers that a particular technology works,” says Abdullah Ahmed, emerging technologies program manager at SoCalGas. “We look forward to working closely with GTI and other natural gas utili-ties in moving promising emerging tech-nologies into the marketplace.”

ETP projects will assess energy use, costs and benefits, marketing opportunities and barriers, and energy savings potential for various products and processes. Plans are to conduct field demonstrations to validate the performance, efficiency, and cost-effective-ness of new technologies and program strat-egies. “We need larger demonstrations to collect and understand market data, while developing market infrastructure to support eventual technology deployments,” Kerr says. “A key part of developing the market will be building consumer awareness about a given technology within a region and building contractor capacity so that we can establish consumer confidence,” Kerr adds.

“This initiative fills an important need for energy efficiency programs at today’s natural gas utilities,” said Bob Fegan, princi-pal energy analyst at DTE Energy, who has been a driving force in launching the col-laborative. “As energy efficiency programs mature, emerging technologies will become an even more important component in achieving the energy savings goals of our


Investment to expand and construct midstream infra-structure to bring natural gas, natural gas liquids and crude oil supplies to markets will support an average of more than 125,000 jobs each year from 2012 through 2035, generate nearly $57 billion in federal, state and local tax revenue, and add more than $511 billion in total economic output, according to a new study.

The report, “Jobs & Economic Benefits of Midstream Infra-structure Development: US Economic Impacts through 2035,” conducted by Black & Veatch on behalf of the INGAA Foun-dation, finds that the $200 billion in projected investment midstream infrastructure through 2035 will result in signifi-cant benefits for the U.S. economy in the near term and the long run. Economic benefits are shared by all regions across the United States and are felt throughout the study period. In the near term, the study projects an average of nearly 160,000 jobs will be supported in both 2012 and 2013 and an average of over 135,000 jobs will be supported from 2012 through 2016.

“This study demonstrates the importance of midstream infrastructure in terms of jobs and economic benefits,” said INGAA Foundation president and CEO Don Santa. “In addi-tion to creating a consistent stream of construction jobs, this investment also supports operations and management posi-tions, which are higher paying compared with average national wages. This midstream investment also helps local economies as well as federal, state and local governments.”

Santa, also president and CEO of the Interstate Natural Gas Association of America, said the new study analyzes neither the economic impacts from exploration and production ac-tivities nor the impacts on households and manufacturers that will benefit from lower natural gas, oil and NGL prices. A number of reports have sought to quantify those economic impacts, he noted.

“The important thing to remember is that the benefits of in-creased domestic natural gas, oil and NGL production only can be realized through the development of midstream infrastruc-ture,” Santa explained. “Pipelines serve as the indispensable link between production and markets.”

The new report is based on data compiled in the INGAA Foundation’s “North American Midstream Infrastructure Through 2035 — A Secure Energy Future” study, completed by ICF International in 2011. That study projected capital re-quirements, in 2010 dollars, for North American natural gas, NGL and oil midstream infrastructure, which includes main-lines, laterals, processing, storage, compression and gathering lines. In the new INGAA Foundation study, Black & Veatch converted the capital investment projections to 2011 dollars, limited the scope of investment to only Lower 48 U.S. and offshore Gulf and calculated the jobs and economic impact of the investment.

Because natural gas midstream represents the large major-ity of projected investment (83 percent), it also represented the largest share of economic benefits in new study. Oil in-vestments (approximately 10 percent) and NGL investments

(approximately 7 percent) accounted for the remainder of the economic impacts.

According to the new report, natural gas midstream invest-ment and the investment to operate and maintain the pipe-lines will support an average of over 103,000 jobs each year from 2012 through 2035, generate nearly $47 billion in fed-eral, state and local tax revenue, and add more than $420 bil-lion in total economic output. In the near term (2012 through 2013), midstream natural gas investment will support an av-erage of nearly 99,000 jobs per year, generate $3.7 billion in federal, state and local tax revenue and $34.2 billion in total economic output. In the mid-term (2012-2016), midstream natural gas investment will support an average of over 95,000 jobs a year generate $9.4 billion in federal, state and local tax revenue and $80.4 billion in total economic output.

Market Watch

Midstream Investment to Bring U.S. JobsDevelopment Could Generate $511 Billion in Total Output

Graphs courtesy of INGAA

The following oil and gas pipeline projects have been announced. Projects are in order of most recent approximate starting date. All projects are for 2012 unless noted.

Foltz Welding Ltd. was awarded a contract by Enterprise Products/Pipeline for anomaly work on various systems of 8- to 12-in. pipelines in Pennsylvania, New York, Ohio, Indiana and Illinois. Headquarters is unknown. The superintendent is Joe Pennington. Approximate start date: March 5.

Pe Ben USA Inc. was awarded a contract by Evraz Inc. to offload and stockpile 280,000 ft of 30-in. steel pipe in Livingston County, Mich. Headquarters is Howell, Mich. The superintendent is Don Bousselot. Approximate start date: Feb. 17.

Laney Directional Drilling Co. was awarded a contract by Sunland Construction to install 11,150 ft of 6-in. pipeline via directional drilling in Harris County, Texas. Headquarters is on the jobsite. The superintendent is John Odom. Approximate start date: Feb. 15.

Northern Clearing Inc. was awarded a contract by Enbridge Energy LLC for integrity digs on 105 miles of 34-in. pipeline in Ogema, Arenac, Gladwin, Roscommon, Delta and Schoolcraft counties, Mich. Headquarters is unknown. The superintendent is Jim Putnam. Approximate start date: Feb. 13.

Indianhead Pipeline Services LLC was awarded a contract by C.J. Hughes Pipeline to perform foam services on 17.75 miles of 24-in. pipeline in Wetzel County, W.Va. Headquarters is New Martinsville, W.Va. The superintendent is Randy Rubenzer. Approximate start date: Feb. 8.

ARB Inc. was awarded a contract by Kern River Gas Transmission to install 9 miles of 8-in. gas pipeline in San Bernardino County, Calif. Headquarters is Primm, Calif. Superintendent is Terry Cooley. Approximate start date: Feb. 6.

Northern Clearing Inc. was awarded a contract by Price Gregory International Inc. for right-of-way clearing of approximately 63 miles of 8- and 24-in. pipelines in Marshall County, Ohio, and Brooke County, W.Va. Headquarters is unknown. The superintendent is Jim Junker Sr. Approximate start date: Feb. 6.

Northern Clearing Inc. was awarded a contract by Sheehan Pipe Line Construction Co. for right-of-way clearing of approximately 113 miles of 10-, 12-, 16-, 20- and 24-in. pipelines in Harrison, Marion and Monongalia counties, W.Va., and Greene and Washington counties, Pa. Headquarters is unknown. The superintendent is Dennis Bergman. Approximate start date: Feb. 6.

Laney Directional Drilling Co. was awarded a contract by WPX Energy Marcellus Gathering LLC to install 1,000 ft of 16-in. pipeline via directional drilling in Susquehanna County, Pa. Headquarters is on the jobsite. The superintendent is Jimmie Johnson. Approximate start date: Feb. 3.

Laney Directional Drilling Co. was awarded a contract by Troy Construction to install 13,213 ft of 20-in. pipeline via directional drilling in Bee and San Patricio counties, Texas. Headquarters is on the jobsite. The superintendent is Carlton Loftin. Approximate start date: Feb. 2.

Dun Transportation & Stringing Inc. was awarded contracts by U.S. Pipeline Inc. for the following: 1) the stringing of approximately 12 miles of 42-in. pipe in Gaston, Rowan and Davison counties, N.C.; and 2) the stringing of approximately 10 miles of 42-in. pipe in Coosa and Randolph counties, Ala. Headquarters for both jobs is in the pipe yard. The superintendents are Greg Norman and John Zaruba, respectively. Approximate start date for both jobs: Feb. 1.

Letourneau Products Mfg. Corp. was awarded a contract by U.S. Pipeline Inc. for clearing, grubbing and matting for approximately 10.3 miles of 42-in. pipeline in Randolph and Rockford counties, Ala. Headquarters is unknown. The superintendent is Terry W. Maxon. Approximate start date: Feb. 1.

Price Gregory International Inc. was awarded a contract by Dominion Transmission Inc. to install 58 miles of 8-in. pipeline in Brooke County, Ohio, and Marshal County, W.Va. Headquarters is unknown. The superintendent is Doug Gregory. Approximate start date: Feb. 1.

Sheehan Pipe Line Construction Co. was awarded a contract by Momentum for the installation of 2.39 miles of 10-in. pipeline, 14.45 miles of 12-in. pipeline, 49.64 miles of 16-in. pipeline, 20.34 miles of 20-in. pipeline and 31 miles of 24-in. pipeline in Harrison, Marion and Monongalia counties, W.Va., and Greene and Washington counties, Pa. Headquarters is in Idamay, W.Va. The Superintendent is Thelbert Barnes. Approximate start date: Feb. 1.

Indianhead Pipeline Services LLC was awarded a contract by Precision Pipeline LLC to perform foam services on 38,628 ft of 16- and 20-in. pipeline, 31,680 ft of 16-in. pipeline, 25,120 ft of 20-in. pipeline and 5,000 ft of 10-in. pipeline in Bradford County, Pa. Headquarters is Nichols, N.Y. The superintendent is Randy Rubenzer. Approximate start date: Jan. 26.

Letourneau Products Mfg. Corp. was awarded a contract by Price Gregory International Inc. for clearing, grubbing and matting of approximately 30 miles of 24-in. pipeline in Luzerne County, Pa. Headquarters is Tunkhannock, Pa. The

North American Pipeline Project Roundup

Listings Contributed by


superintendent is Claude R. St. Pierre. Approximate start date: Jan. 23.

Midwest Underground Inc. was awarded a contract by ONEOK for the installation of 700 ft of 8-in. pipeline via directional drilling in DuPage County, Ill. Headquarters is in Naperville, Ill. The Superintendent is Shaun Tippie. Approximate start date: Jan. 23.

Price Gregory International Inc. was awarded a contract by Anadarko Petroleum Co. to install various lengths of miscellaneous diameter pipelines up to and including 20-in. pipelines in Loving, Reeves, Ward, Pecos, Winkler, Ector, Crane, Andrews, Midland, Upton, Brewster, Jeff Davis, Culbertson and Hudspeth counties, Texas. Headquarters is Kermit, Texas. The superintendent is Michael Phillips. Approximate start date: Jan. 23.

Dun Transportation & Stringing Inc. was awarded a contract by California Steel/Energy Transfer for the unloading and stockpiling of approximately 155 miles of 16-in. pipe in Ector County, Texas. Headquarters is in the pipe yard. The superintendent is Mike Bruce. Approximate start date: Jan. 20

Henkels & McCoy Inc. was awarded a contract by Spectra for the off-loading of 11 miles of 36-in. pipe from railcars in Franklin County, Pa. Headquarters is in Chambersburg, Pa. The Superintendent is Richard Hill. Approximate start date: Jan. 18.

Apex Pipeline Services Inc. was awarded a contract by Anterro Resources to install approximately 15,000 ft of 16-in. pipeline in Doddridge County, W.Va. Headquarters is Sedalia, W.Va. The superintendent is Cliff Frymier. Approximate start date: Jan. 16.

Associated Pipe Line Contractors Inc. was awarded a contract by Mark West Liberty Midstream & Resources for the installation of 11,267 ft of 12-in. pipeline in Washington County, Pa. Headquarters is in Washington, Pa. The superintendent is Kevin Berryman. Approximate start date: Jan. 16.

Laney Inc. was awarded a contract by Troy Construction for road boring on 57.2 miles of 20-in. pipeline in San Patricio and Bee counties, Texas. Headquarters is Victoria, Texas. The superintendent is Mike Dobbs. Approximate start date: Jan. 16.

Letourneau Products Mfg. Corp. was awarded a contract by U.S. Pipeline Inc. for clearing, grubbing and matting for approximately 12.1 miles of 42-in. pipeline in Gastonia, Rowan and Davidson counties, N.C. Headquarters is unknown. The superintendent is Mark A. Letourneau. Approximate start date: Jan. 16.

Rockford Corp. was awarded a contract by Williams Midstream for the installation of 7,800 ft of 24-in. pipeline in Susquehanna County, Pa. The headquarters is in Montrose, Pa. The superintendent is Mickey Langston. Approximate start date: Jan. 16.

Snelson Cos. Inc. had been awarded a contract by PG&E for maintenance and hydro-test work on various sizes of pipeline in Northern and Central California. Headquarters is unknown. The superintendent is Jeff Elliott. Approximate start date: Jan. 16.

Laney Inc. was awarded a contract by Troy Construction for road boring on 54.7 miles of 24-in. pipeline in De Witt, Victoria and Jackson counties, Texas. Headquarters is Victoria, Texas. The superintendent is Mike Dobbs. Approximate start date: Jan. 12.

Want to see your project here? Send submissions to Associate Editor

Brad Kramer at [email protected] with the subject heading “Project Roundup.”



Squeal Like a PigSmart or Not, Pigging Tools Keep Pipelines Squeaky Clean By Bradley Kramer

One story has it that they got their name from the squealing sound they made when traveling through

a pipeline. A more recent story is that the name is an acronym for

“pipeline inspection gauge.” And yet another story recounts how balled pig leather

was first used in cleaning wooden pipes in the late 1800s. The fact is no one really knows for sure why the tools

used for cleaning and inspecting pipe are called “pigs,” but no one snorts at the notion that these tools are essential in managing pipeline integrity.

“Pipelines are safer than airline travel,” says David Henry, president and owner of Girard Industries, a pig-ging manufacturer based in Houston. “Look at any one given time how many planes are in the air and how many people are on those planes, probably thousands. There are millions of people sitting within a stone’s throw of pipe-line right now. It’s a safe industry, but there is potential for danger. What pigs do is try to mitigate or remove prob-lems in the pipeline.”

Pipeline pigs come in all sorts of shapes, materials and con-figurations, from the very simple urethane pigs to the very complex “smart” pigs. These in-pipe tools are used for clean-ing, batching, inspection and mapping, to name a few tasks.

Typically, the simpler cleaning and batching pigs are a product purchased by the end-user, pipeline operators or service providers, whereas smart pigs — aka inline inspec-tion (ILI) tools — are more of a service item, owned and operated by specialty companies.

There are four primary reasons to pig a pipeline, ac-cording to Larry Payne, market development manager for the Pipeline Services & Pigging Solutions Division at T.D. Williamson, a pig manufacturer and ILI provider based in Tulsa, Okla. The first reason to pig a pipeline is for cleaning, which provides two benefits: keeping the line clean allows for better flow, more throughput and better efficiency, and a clean line also aids in corrosion control. Secondly, pigs are used for batching, where two products are run through a pipe, such as diesel and gasoline, and the pipeline operator doesn’t want those products to mix. Third, pigs are used for separation, which is similar to batching, wherein an operator has one product in the line and wants to put something else in. Fourth and fi-nally, pigs are used for inspection.

While pigs are primarily used in oil and gas pipelines, they are also used in other industries for such applica-tions as product recovery. “Everyone focuses on oil and gas, but we sell pigs for the water and wastewater indus-tries, for chocolate companies, mustards or any industry where they have a big vat of product that they have to move,” Henry says. “There’s a pipeline, if you will, that goes from a large tank to the packaging plant or to a truck. Everything in between is product, is money. They will run a pig through the line to get all the product out. Otherwise, that’s money just sitting there. It’s all a cost.”

In the pipeline industry, however, pigs are becoming a requirement. Industry-specific regulations are forcing


pipeline operators to run smart pigs, which for the sake of a successful inspection require a cleaning pig to precede the ILI tool. A 2009 rule by the U.S. Federal Energy Regulatory Commission (FERC) requires all newly built interstate pipe-lines with diameters of 30 in. or greater to run smart pigs before commencing operation, says Scott Coats, president and CEO of Precision Pigging, a smart pigging service provider based in Tulsa.

Because smart pigs can cost upward of $500,000, pre-cleaning a pipeline with con-ventional pigs is usually nec-essary to avoid damaging an expensive investment.

As concerns about the en-vironment and public safety continue to grow, the impor-tance of pigs will become ever more important in the pipe-line industry.

Tidy PigsAlthough their mammalian

namesakes are known more for their dirtiness, pipeline pigs were first invented as a means to clean. However, both are likely to be seen covered in muck.

While stories about using a solid item to run through and clean a pipeline date back to the late 1800s (e.g., balled up pig leather), the modern pigging industry began in the 1940s.

T.D. Williamson claims to have invented to first pipeline pig, when in 1943 the compa-ny provided pipeline scrapers to clean the War Emergency Pipeline System, a 20- and 24-in. pipeline that carried oil and gasoline to the East Coast to ship to Europe during World War II. The company has been on the forefront of the pigging industry ever since, manufacturing a wide array of batching, displacement, cleaning and specialty pigs, in addition to launching and receiver units and passage indicators.

Girard Industries also has a rich history in pigging. Al-though the company was chartered in 1968, its involve-ment in the industry began well before that. In the 1940s and ‘50s, company founder Harry Girard, along with busi-ness partner Charles Knapp, invented and patented the “Polly Pig,” an open-cell polyurethane foam pig. The two


The more common explanation for how pipeline pigs got their name stems from the squealing sound they made traveling through a pipe. The tools would also be covered in muck, much like their

mammalian counterparts.

“Smart” pigs were first designed to locate damage to pipe walls, such as the dent being inspected here. Pigs provide an internal means of measuring the condition of a pipeline.

men eventually parted ways, and Knapp went on to found Knapp Polly Pig Inc. Along with its version of the Polly-Pig, Girard now manufactures solid cast urethane pigs, steel-body mandrel pigs and spherical pigs, as well as a variety of cups, disks and brushes to be used with the dif-ferent pig configurations.

Typical customers for pigging manufacturers tend to be the end-user, whether a major oil and gas company, pipeline operator, municipality, transmission company or individual service provider, according to Henry. Pressure

from governmental regulations has “upped the market” and created a larger demand for pigging products.

“It’s brought more of a focus to pipeline integrity and keeping pipelines clean,” he says. “We now have regula-tions that say you have to test pipes routinely.”

Pigs also save pipeline operators money, Girard adds. Pipelines are dependent on flow efficiency. Before integri-ty management was the big topic in the pigging industry, the talk used to center on how to pump the most product through a pipeline.

“Those concerns are still valid,” he says. “The cheaper you can push something through pipeline, the more ef-ficient your operation.”

Flow efficiency and pipeline integrity go “hand in glove,” Girard says. Without one, you can’t have the other.

“If you don’t have a clean pipeline, you have contami-nants eating away at the pipe wall,” he says. “Having liq-uids in a pipeline restricts flow and causes corrosion. You keep a pipeline clean to maintain integrity, but you’re get-ting the benefit of better efficiency and clean flow.”

The Pig Gets SmartIt’s not that conventional pigs are dumb, but smart pigs

offer a measure of intelligence by providing a measure of the inside of a pipeline.

T.D. Williamson introduced the Kaliper pig in 1972 and virtually sparked a whole new industry. Today, there are dozens of inline inspection companies that offer pipeline

operators a method of seeing the insides of their pipes, whether for measuring internal damage and corrosion or for mapping a system for asset management purposes. These service providers own and operate the smart pig, providing the pipeline company with the final inspec-tion report.

Payne joined T.D. Williamson in 1969, after a career in the aerospace sector, “filling up rockets to go to the moon,” he says. Upon joining the company, his first project was the research and development involved in designing an ILI tool to go through a pipeline and record information.

“The Lakehead Pipe Line Co. in Alberta, now part of Enbridge, thought they had a dent, a 4-in. dent, from a rock ledge,” Payne recalls of the Kaliper pig’s origins. “We find a lot of stuff today that was put in the pipe-lines when they were built, flaws in the pipe, mill defects when forming pipe.”

Contractors didn’t like the ILI tool when it first came to market, Payne says, because it cost them money.

“We’d run it through the pipeline and have to tell them go fix something,” he says. “But eventually, they learned to like it because it gave a sense of quality assur-ance. They could make sure the pipe was nice and round and correct.”

The early use of smart pigs even changed the way con-tractors laid pipe, Payne says. The ILI tools found that the sand bags used to pad pipe laid against a rock ledge would damage the pipe wall when pushed against each


other. They learned that the pad had to be filled with non-damaging material or else it could cause a buckle. A dent causes stress risers in a pipe wall that could lead to corrosion or a burst in the pipe wall.

T.D. Williamson’s original Kaliper pig would not be considered high-resolution technol-ogy today, when the ILI sector features tools that can detect more than just dents, obstructions and pipe wall thickness. Now, smart pigs employ a variety of technolo-gies, such as magnetic flux leakage (MFL) and global positioning sys-tems (GPS), which pro-vide a precise reading on the condition of a pipe-line system.

“You can run a tool that runs five different types of data,” Payne says. “I tell people the more you know, the more you know. When you line up all the different data layers, it’s amazing what you can determine.”

By providing multiple data sets, an ILI tool can collect and analyze a number of variables at the same time. A smart pig can therefore not only tell an operator that there’s a dent in the pipe wall, but the exact quadrant on the pipe and the exact coordinates along the pipeline.

Precision Pigging, which has been in business since 1999, provides smart pigging services using a geometry tool, aka a deformation tool, which “measures anything that changes a pipeline’s roundness,” Coats says. The tool records pipe ovality, finding buckles and dents in pipe walls.

Because of regulations that force operators to run smart pigs before commissioning a new transmission pipeline, Coats says the majority of Precision Pigging’s business comes from new construction. Regulations could soon require the inspection of distribution and gathering lines as well, which will open up a new avenue of busi-ness for ILI companies.

“Inspection ensures pipelines against third-party dam-age,” Coats says. “Once a pipeline is laid, there’s less chance of a dent happening on the bottom of the line. It comes down to safety.”

Pigging in the FutureThe development of shale oil and gas reserves has be-

come a new market driver for pipeline pigging, Payne says. With a new network of pipelines cropping up to access such areas as the Marcellus shale in the Northeast,


Pipeline pigs will continue to be used more and more in an industry increasingly concerned with safety and the environment.

the Barnett shale in the Southwest and the Bakken shale on the U.S.-Canada border, companies are using pigs to keep those lines clean.

“Shale features a lot of heavy liquids, and a lot of liq-uid gets stuck in the low places in a pipeline, and that cuts down on flow,” Payne says. “In the shale, they’re pigging more frequently, sometimes daily.”

With the increased use of pigs to keep liquids out of pipelines, Payne sees a move toward automation in the future to offset the costs of man hours associated with routine pigging operation.

Other drivers in the market include government regu-lations and international pipeline construction.

“What we’re doing in the United States is migrating to the rest of the world,” Payne says. “We’ve been building pipelines since the 1920s, so our pipelines are old. Other countries have much newer pipelines, so there are op-portunities internationally.”

Concerns about the environment and public safety con-tinue to grow across the globe. The necessity of pigs will become increasingly important to the pipeline industry.

“If you think about it, aging pipelines and existing pipelines, that’s the pigging market,” Payne says. “We’re building more and more pipelines and that expands the market. The other thing driving up the market is gov-ernmental regulations driving need for ILI. You have to have a clean pipe to ILI, which means the use of more cleaning pigs. The market is trending up.”

Bradley Kramer is associate editor of North American Oil & Gas Pipelines. Contact him at [email protected].


To Rent or to Buy? Some Guidance About Equipment in Today’s Pipeline IndustryBy Karma Newberry

Valuable time and money can be wasted procuring, mov-ing and maintaining equipment while renting provides a cost-effective alternative. Not only is equipment delivered on-site ready to use, but there’s peace of mind that also comes with professional repairs and calibration. In addi-tion, there is no time lost while equipment is out for re-pairs or being shipped from one project to the next.

Consider the following examples:1. A new 42-in. capacity lowering-in cradle may cost

around $36,000 to purchase. The same lowering-in cradle can be rented for $3,200 per month. A shorter duration job such as integrity work or a directional drill may last only two to four weeks. Now factor in wear and tear, and renting begins sounding like a good choice. With the additional time needed to maintain and safely store this expensive piece of equipment, companies need to ask if purchasing this equipment will save money or just cause more headaches.

2. Alternatively, imagine a family who vacations each year at Lake Powell and likes to stay on a houseboat. Instead of buying an expensive houseboat, they opt to rent. Renting guarantees the boat is always ready to go, clean and safe. They also have more cash in the bank for other needs throughout the year and the peace of mind that comes with not having to worry about such large investment. The rental com-pany takes care of all of the logistics and costs re-garding maintaining and servicing, as well as secur-ing and storing the boat.

Given the changing landscape of the pipeline industry and its increased complexity, renting or buying decisions have in many ways become more clear-cut. In making these decisions, an organization must consider everything from equipment requirements and expected utilization, to resource requirements to manage and maintain pipeline equipment, and finally availability and accessibility needs.

There’s an old saying: if it flies or floats, rent it.

No one wants to spend summer vacation waiting at the repair shop for his or her boat. That’s

why many people rent a boat and leave the maintenance and repair worries behind. Well, in to-

day’s pipeline construction environment, the same principle can apply to many types of specialty

pipeline equipment.


The More Complex Pipeline BusinessPipeline work is becoming increasingly more complex,

less predictable and geographically diverse. The nature of the work has changed from large, long-term projects to multiple, shorter term and more varied jobs. It is not un-common for companies to manage several jobs across the country, at the same time with pipelines that range from 3 to 42 in. in size. Due to expansion in shale plays and in-creased integrity work, companies today are also following work to a wider geographic area than ever before. This has made managing equipment and supply costs for projects even more important, and has added a lot of complexity as well. Critical time and money can be lost trying to get the right equipment to the right job in the right place at the right time. That is why it’s important to ask if renting is the right answer for the next project.

Renting vs. buying is a complicated question. Here are some important questions that may save both time and money when making this critical decision:

• What specialized skills are required to maintain and repair the equipment if purchased?

• Where will the equipment be stored when it’s not on-site?

• Is this equipment specific to this project or will it be used again and again?

• How much does it cost to ship this equipment from one job to the next?

• Is this same piece of equipment needed on-site and two jobs at the same time?

• How long will it take to recoup the cost invested in this piece of equipment?

• How does purchasing vs. renting affect cash flow?

The geographic expansion of the oil and gas industry, particularly in the various shale plays, along with increased integrity work, has

made managing equipment and supply costs for projects more important than ever before.

The answers to these questions are why many compa-nies are opting to rent specialty equipment rather than purchase.

Consider Equipment NeedsIt doesn’t always make sense to buy a piece of equipment

and then transport it across the country, pay for costly re-

pairs, storage and the personnel required to perform the recalibration and maintenance, especially when it may not be used for another project right away.

The shift we’re seeing in the nature of pipeline work from large, long-term projects to multiple small projects often requires the same equipment at the same time. In other cases you may need more specialized equipment but


The choice of whether to rent or purchase multiple pieces of the same equipment can affect cash flow and increase maintenance costs for pipe-line companies with multiple projects happening at the same time.

only for limited or one-time use. Renting specialty equipment has become the more economical choice for many pipeline construction companies. It eliminates the need to buy equipment that won’t end up paying for itself in the long run.

For pipeline companies with multiple projects happening at the same time, it can make it necessary to either choose to rent, or purchase mul-tiple pieces of the same equipment, which can affect cash flow and in-crease maintenance costs. Opting to buy forces companies to choose between buying duplicate pieces of equipment, and waiting until one job is complete before shipping it to the next job. Many pipeline con-struction companies are often very happy to off-load the complexity and management of pipeline rental equipment particularly where cali-brations and regular maintenance are required.

Review Equipment Resources Requirements and Hidden Costs

Renting can remove some of the on-going responsibility of maintaining expensive equipment. There are many moving pieces involved in keeping a project on track so that it will come in on-time and on-budget, and today project managers are being asked to manage more and more projects at the same time. Owning specialty pipeline equipment means the additional re-sponsibility of managing its repair cal-ibration, delivery, storage and security at several different projects. Time lost to repair or deliver equipment can be costly, especially for shorter duration projects.

It is important to consider the real costs of purchasing equipment. There are initial costs like the purchase price and shipping, but there also may be long-term costs associated with re-pair that make owning the wrong an-swer. Keeping personnel costs down is important when managing success-ful pipeline projects. It can become expensive to employ the specialists needed to calibrate and repair differ-ent types of equipment at a number of jobsites.

The nature of pipeline work will continue to change as our country’s energy demands and infrastructure needs are constantly evolving. Hav-ing the right supply partner is criti-cal to meeting these demands. Many pipeline construction companies to-day must manage multiple projects in different regions at the same time, and rely on partners to provide quick delivery of the needed supplies or equipment to keep projects running smoothly and safely. PSS Companies offers multiple distribution centers at key locations across the United States to ensure customers receive supplies more quickly. Experienced PSS Compa-nies employees understand the unique needs of maintaining specialty equip-ment, which makes renting a great choice for construction companies not wanting another item to manage.

Karma Newberry is vice president of sales and marketing for PSS Compa-nies, a supplier of consumable pipeline materials and specialty equipment for the pipeline industry in North America.

30 North American Oil & Gas Pipelines | MARCH 2012 napipelines.com30 North American Oil & Gas Pipelines | MARCH 2012 napipelines.com

Talent Search Seeking a New Generation of Workers in the Oil and Gas IndustryBy Sylvia Vorhauser-Smith

Complex challenges are nothing new for companies in the oil and gas industry that are well-ac-

customed to extracting limited resources from remote locations. Yet, the industry is facing a new

challenge. There is a global, industry-wide shortage of one of the key resources these companies need

for sustainable growth: talent. As the older members of the workforce retire, the oil and gas industry is

left with an insufficient pool of young employees to step in and take over leadership roles.


What results is a fierce competition for talent from all over the world. To attract entry-level employees, com-panies are offering higher salaries than ever to make their jobs more appealing. But this technique doesn’t get to the heart of the problem –today’s college gradu-ates and entry-level workers are looking for more than just high salaries.

The new generation wants careers with opportuni-ties for advancement and continuous development. As the industry is looking for young talent to stay with the company and take over leadership positions as older workers retire, the needs of employees and employers indeed match up. However, organizations must do a bet-ter job of presenting the great opportunities available to new workers in the industry. The companies that align their needs with those of this new generation of worker through cutting edge recruitment strategies and tapping the global talent pool will be best suited for successfully filling their key talent gaps.

Why the Gap ExistsThe serious talent shortage is caused by the “camel-

back” structure of the industry. It is currently comprised of a large number of workers over the age of 50, a lack of those in the 30-50 age range and a small but steady supply of younger workers. Although the number of entry-level employees continues to trickle in, there are not enough in this group to compensate for the lack of mid-level employees and to take over the openings left by the retiring workforce. What results is a serious

structural misalignment between the current skills of the workforce and the skills required for the future.

Organizations have tried to compensate for this prob-lem by engaging with the education sector to attract stu-dents to the industry and work to define the skills that students will need for its occupations. Many companies have also implemented global rotation programs for those younger workers already in the industry, aimed at preparing them for future leadership roles. These allow younger employees to learn about the different oppor-tunities in the industry and to develop a broad base of skills across different countries and regions.

While a rotational program is a step in the right direc-tion to developing future leaders, such programs don’t provide companies with the insight necessary to deter-mine which employees show the most promise. With-out a way to measure their potential, companies won’t have the analytics about their employees to determine who is best suited for filling in the key leadership posi-tions as they open up. Organizations that embrace tal-ent management and acquisition technology in their recruitment strategy, however, will be better able to an-alyze their current workforce, determine the gaps that need to be filled and put the most qualified people into these roles.

Using Talent Management TechnologyIn order to properly leverage the global talent pool,

companies will need an integrated system for talent ac-quisition that helps them accurately assess the skills of

future employees and tie this information in with their business needs. Ad-ditionally, such recruiting technology is essential for companies operating in multiple countries, as these organizations need a dynamic system in place for recruiting, hiring and managing talent across borders.

A technology-based talent management so-lution is also useful in developing a strategy for retaining qualified em-ployees through career planning and ongoing development. Showcas-ing possible career paths and the skills needed for future positions can help organizations to keep top performing workers in the company. A robust talent management solu-tion can help map career path options for current employees and promising candidates as well as unify processes from acquisition to succession planning,

The oil and gas pipeline construction industry is facing a worldwide labor shortage, as experi-enced workers are nearing retirement and not enough new talent to fill the ranks. By embrac-ing recruitment technology, the industry can find qualified workers.


allowing employees and managers to work together to optimize career planning.

Three Ways to Boost the Talent PipelineIn order to get to the point where employees and can-

didates can think about career paths, organizations first have to attract them to the industry and entice them to stay. What follows are three methods for increasing hir-ing to ensure a steady pipeline of talent to replace the retiring generation.

Developing Talent Pools: To compensate for the low number of new employees, companies will need to build deep talent pools from which they can source new talent, which involves the development of clearly de-fined skills that are aligned with business strategy. Once these needed skills are outlined, companies can develop the critical competencies necessary for key leadership and technical positions as well as other areas of business experiencing high growth.

State of the art talent acquisition technologies can en-able dynamic talent pools of qualified candidates to be created and nurtured. With clearly defined technical and behavioral competency profiles providing the blueprint for needed talent, companies can proactively source in-ternal and external candidates and use artificial intelli-gence to match them with career opportunities.

After putting the effort into building a talent pool, it’s important not to ignore its occupants. Social media can be used to maintain relationships with candidates, and updating them with company and project informa-tion and sharing insights will help to keep candidates engaged. With the entire industry juggling high demand for growth with a limited labor supply, nurturing the tal-ent pool is a key factor to maintaining a steady source of talent.

Sourcing Across Borders: With colleges in the Unit-ed States only providing 20 percent of the engineering graduates that they did 20 years ago, filling the gaps left by the aging workforce will be difficult for companies only looking at the domestic workforce. As a result of this deficiency, companies will have to turn their recruit-ing efforts to the international market for any chance of success in filling employment gaps. Of particular interest for companies are the high-growth markets of China and India and the emerging markets of Southeast Asia, such as Vietnam and the Philippines, since they are produc-ing a new generation of qualified talent.

But sourcing candidates from these regions presents a new crop of challenges for companies in the oil and gas industry. Recruiting international talent involves com-plying with strict government standards and introduces the difficulty of cross-cultural communication. Again, talent management technology will be an integral part of international recruiting, allowing for consistent and standardized processes for sourcing, hiring and develop-ing candidates from foreign markets.

Embracing Mobile Technology: As younger work-ers become increasingly mobile, companies in the oil and gas industry will have to embrace the technology in order to attract and communicate with the new genera-

tion. And doing so will facilitate communication with potential talent from all over the world. Additionally, research by the Aberdeen Group shows that companies that actively use mobile technology report a 72 percent increase in operational efficiency.

In an industry where employees are often in offshore or remote locations, mobile technology can streamline recruiting processes, giving recruiters and hiring manag-ers more access to potential talent from anywhere in the world. With mobile devices, companies can initiate re-cruitment requests, approve job requisitions, screen can-didates, conduct phone and video interviews and carry out pre-employment activities. It also facilitates the can-didate experience, giving them immediate access to new opportunities and allowing them to apply for positions, complete screening and assessment activities and, once hired, begin company orientation.

The oil and gas industry faces some serious head-winds as they lose their most experienced workers to retirement. However, proactively developing ways to fill employment gaps with qualified workers is the key to combatting this problem. By embracing recruiting technology and using it to attract a new generation of workers from all over the globe, the industry will have a steady stream of new talent to ensure future vitality.

Sylvia Vorhauser-Smith is senior vice president of research for PageUp People, responsible for driving thought leader-ship in the field of human capital management for global organizations facing cross-border expansion and growth.


Laser guided boring is primarily used for water and sewer line in-

stallation, but that didn’t stop one contractor from using the method on a delicate project for a crude oil com-pany’s facility.

During the more than 40 years since Arvid Veidmark Jr. founded Spe-cialized Services Co. (SSC) — a lead-ing trenchless installation contrac-tor based in Phoenix — members of the Veidmark family have celebrated many accomplishments. They now have another success story to attach to the list of firsts on the company’s well-documented resume.

Although some of the faces have changed at SSC since 1969, the vision of the founding Veidmark — to provide a valuable service to the community — is still very much intact today, evi-denced by the vision and dedication of wife Marcia, along with sons Arvid III, Aaron and Abe. SSC’s recognition, and much of the company’s success for that matter, can be attributed to a close-knit family committed to em-

bracing new and innovative under-ground technologies; most recently, a laser guided boring system used to complete a delicate trenchless installa-tion for Plains Midstream Canada.

Faster Fill FlowProject owner Plains Midstream

Canada, headquartered in Houston, is involved in crude oil transporta-tion, gathering, marketing, terminal-ling and storage as well as marketing and storage of liquefied petroleum gas (LPG). Plains Midstream selected SSC to install sleeves at three loca-tions to accommodate a new line being added to the underground in-frastructure used to load and unload LPG from tankers and railcars at the Bumstead facility, an underground LPG storage cavern located along the Interstate 10 corridor between Phoe-nix and Los Angeles.

Situated some 2,000 ft below-ground, at the juncture of a ma-jor rail line and tanker truck transit point, the 133 million-gallon facility

is comprised of three underground salt-dome storage caverns, a 24-car rail rack and three truck racks on the surface with the capability to unload six trucks simultaneously. To expedite the loading and unloading of tankers and railcars more quickly, Plains Mid-stream installed an additional 6-in. high-pressure gas line.

The component of the project awarded to SSC involved installing six separate 12-in. steel casing sleeves, 3/8-in. wall thickness, at three sepa-rate locations. Abe Veidmark, vice president of the auger division for SSC, explains the challenges faced by the accomplished trenchless installa-tion contractor and the decision to use an innovative new approach for completing these intricate bores.

“It wasn’t so much the ground con-ditions or pitch, but rather the pin-point accuracy of the line grade we needed to achieve for us to succeed,” Abe says. “When installing smaller material with standard auger boring, it is nearly impossible to steer with

Threading the Trenchless Needle … Precisely Phoenix-based Specialized Services Co. Employs Laser Guided Boring System at Underground Storage FacilityBy Randy Happel

the accuracy required for all of these bores. In all likelihood there would have been a good deal of drifting [with auger boring], something in-herent with this method for shorter distances. All of these bores were less than 200 ft.”

Precision-Fine BoringAfter reviewing the specifications

and intricacies they would face at each of the three sites, Arvid Veid-mark III, executive vice president and senior estimator for SSC, recom-mended an innovative, alternative approach. Months prior, he attended a demonstration facilitated by trench-less experts with Vermeer highlight-ing a new laser guided boring system that had the capability to complete smaller-diameter bores with pinpoint accuracy and strict on-grade preci-sion. Although designed primarily for sewer and water projects, the two felt the AXIS guided boring system was just the answer they were looking for.

AXIS is a pit-launched trenchless in-stallation method designed to achieve

pinpoint, on-grade accuracy while eliminating some of the difficult steps associated with other installation techniques. The system was designed to install 8- to 18-in. pipe at lengths up to 350 ft though larger diameter and longer length bores have been completed. AXIS is also capable of maintaining the strict tolerance and accuracy required for the types of in-stallations facing SSC as specified in the Plains Midstream job. The system requires an entry pit where the core of the AXIS system is placed, comprised of the rack, drill casings, drill head and pipe laser. Located outside the launch pit is the vacuum power unit, vacuum tank and the rack power unit.

Once lowered into the pit, the drill head, with self-contained camera con-nected to a monitor on the operator console, projects the laser beam on the target. With the camera viewing the laser beam on the target, the op-erator can accurately monitor the tar-get grade and make adjustments, ever so slightly, along the bore path, if the drill head begins to move off course. Rotation and thrust from the carriage assembly resumes as the first drill cas-ing is pushed through the hole, and the process is repeated with subse-quent sections of drill casing until the drill head reaches the exit pit.

“The only way we would have at-tempted it using a jack and bore ap-proach would have been to upsize to a 30-in. diameter bore casing, then steer the 30-in. casing back through,” Abe says. “Accuracy was of paramount importance. It was also such a small footprint that would have made it dif-ficult to initially set up one of our big rigs there.”

Railroads, Right-of-Ways and a Rose Garden

Two of the three installations in-volved railroad crossings that required strict adherence to very narrow right-of-way tolerances established by the railroad. The first site required SSC to complete two 148-ft bores at approxi-mately 10 ft deep, while the third lo-cation — two 180-ft shots — called for crossing beneath seven separate sets of tracks to the terminal site where natu-ral gas is offloaded from the transport-ing railcars. Positioned close by was a large underground fiber-optic cable that limited the position and excava-tion depth of the bore pit.

“The location of the reception pit was sort of questionable, but we really

didn’t have much leeway because of where the fiber-optic cable was po-sitioned,” Abe explains. “This was a situation that reinforced the need for pinpoint accuracy … something that would have been difficult to accom-plish using traditional auger boring. We had to hit the target pretty much dead on, stopping within inches short of the cable.”

Although the two railroad crossings presented the SSC crew with accura-cy challenges that alone would have been enough to discourage participa-tion by most contractors, it was the second leg of this three-fold installa-tion project that the Veidmark broth-ers, despite their extensive experience in trenchless construction, had not previously encountered — a one-of-a-kind rose garden.

“When we surveyed the second site to identify where the entry and exit pits should be dug, we discovered an irrigation canal that supplied water to this immense rose garden,” Abe says. “The bore plan specified two bores within relative close proximity paral-lel to the canal. Come to find out this was no ordinary rose garden, but rath-er the only one in the world where this special variety of roses are grown. This itty-bitty plot contained tens of millions of dollars-worth of these roses. If we would have tried the tra-ditional auger bore approach, there’s a good chance we could have drifted right into this multi-million-dollar garden of roses.”

Staying the Course Abe reiterates the need for preci-

sion, comparing the boring process and subsequent installation at each of the three sites to that of a double-barrel shotgun.

“We had to complete two bores, side by side, within 2 in. and main-tain that same accuracy for 200 ft,” Abe says. “Think of it as a shotgun with two 12-in. barrels extending 200 ft that we needed to keep at least 2 ft from the irrigation canal, the lifeline to a multimillion-dollar rose garden. I was very thankful to have the accu-racy of the AXIS system.”

Equipment staging and footprint was also a consideration for the Veid-mark crew as they reviewed the op-tions facing them to select entry and exit pit locations at each of the three sites. According to Abe, aside from the additional space needed to stage the various components of the AXIS sys-


tem (compared to auger boring or horizontal directional drilling), the area required for excavating staging and re-ceiving pits is minimal.

After determining locations and excavating the launch and exit pits, the SSC crew shored up the walls with metal bracing, set the laser to the desired grade and depth, and lowered the leveling frame and rack assem-bly into the launch pit. The first 6.5-ft drill casing was then placed in the rack carriage and drilling was began.

“It’s a relatively quick process once everything is in place,” Abe says. “Ground conditions were ideal so that wasn’t a factor. We completed the first two bores with-out any problems, the second in less than four hours, which is really good. We popped through precisely on target in the exit pit, and disconnected the bit, attached the pulling head and pulled the casing back through.”

Abe explains that the vacuum excavation unit used by the AXIS guided boring system requires a fair amount of water to facilitate the removal of spoil. However, he goes on to say that the vacuum system ultimately en-hances production rates because the need to suspend drilling operations to manually handle spoil within the launch pit is eliminated. The system also helps provide a cleaner pit environment.

Installing the casing was a breeze at two of the three lo-cations — bores of 200 ft and 180 ft, respectively — as the SSC crew was able to weld the entire length of casing seg-ments together, allowing them to pull the material back through the AXIS-created bore path in one continuous shot. This was accomplished by digging a ditch beyond the exit pit and placing the entire expanse of material within, a strategy that wasn’t possible at the final loca-tion due to the position of the large fiber optic cable.

“At the third location, since the fiber [cable] was in direct line with the bore path, we were limited to pulling back the steel casing in increments of 10 ft,” Abe says. “This required us to weld each segment together in the pit, repeating the process until the entire 150-ft shot was complete. We were also required to pressure test each weld, which slowed the process down quite a bit.”

With the exception of a few minor learning-curve glitch-es that Veidmark explains were quickly fixed by the AXIS system experts at Vermeer, the six bores were completed on-target, on-line and on-grade. And despite the guided boring system having been used primarily for water and sewer in-stallation previously, the bores completed by SSC substanti-ate the versatility of AXIS, regardless of the application.

“The capability to maintain the target so precisely and the confi-dence to know that you will hit your end target exactly where intended is a huge advantage for the AXIS system,” Abe says. “The cost is an-other huge advantage. I would have been very nervous to attempt this with just a traditional auger because of the 12-in. diameter. You just don’t know for sure where it’s going to go. That’s certainly not the case with AXIS.”

Randy Happel is a fea-tures writer for Two Rivers Marketing, based in Des Moines, Iowa.


Specialized Services Co. used a laser guided boring system to install lines in a liquids petroleum gas facility.

Laser guided boring is typically used in water and sewer line installation, but proved versatileenough for this petroleum project.

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Bradco Trencher AttachmentsThe Bradco trencher line by Paladin Construction Group yields

a higher usage rate of your existing equipment at a fraction of the cost of dedicated trenching machines. The perfect complement to compact and standard skid-steer loaders or tractors, the full tren-cher line includes the Bradco 330, 612, 615, 615F, 625 and 640. Choose from cutting depths that range from 24 to 60 in. and cut-ting widths of 3 to 12 in. Both standard and high flow models are available. The entire Bradco Trencher line provides several tooth options, including cup, shark and rock & frost teeth, so you can meet your job’s individual requirements. A discharging auger neatly places dirt away from the trench to eliminate refilling. For jobs that require close proximity to buildings, fences, walls and other obsta-cles, the Bradco 615F trencher’s offset auger discharges the dirt to one side away from the trench. Each trencher uses a fixed-length boom with a spring-loaded, self-adjusting idler and full rock guard to provide added durability and safety during trenching. A heavy-duty crumber and safety bar also provide better trenching preci-sion, while minimizing flying debris. Every Bradco trencher comes with a two-year limited warranty. The Bradco 615, 615F, 625 and 640 trenchers are designed to fit compact and standard skid-steer loaders. Each offers tooth pattern versatility and uses a rugged 50,000-lb anti-back-flex chain for extended life in the toughest of soil conditions and applications with small rocks. Multiple motor options are available to match the flow and requirements of various skid-steer loader models and manufacturers. The Bradco 330 and 612 trenchers are designed to mount on a tractor’s three-point hitch and are PTO driven. The PTO shaft drive has a heavy-duty slip clutch that protects against overload-ing and excess maintenance costs. The Bradco 330 uses a 38,000-lb anti-back-flex chain that is ideal for medium-hard soil conditions, while the Bradco 612 uses the same 50,000-lb anti-back-flex chain as the skid-steer loader models for more rugged conditions. For more informa-tion, visit www.paladinconstructiongroup.com.


Trench-Tech International TT-2950With over five decades of design experience, Trench-Tech International introduces the mechanically driven TT-2950. Engineered specifi-

cally for large diameter pipeline work and powered by two Caterpillar engines, it provides 1,390 hp and the ability to cut up to 78 in. wide and 30 ft deep. The mechanical chain drive has four different chain speeds providing high torque and low speeds and allowing for maxi-

mum tooth penetration and extended tooth life. The discharge system consists of an arc-type conveyor with variable discharge speeds that is shiftable in either direction for precise spoil placement, using three-ply heavy-duty belting material and double row cleats for maximum dis-charge efficiency. The digging boom and tailwheels on the TT-2950 fea-ture heavy-duty weldments, sectionalized to provide for various boom option lengths. Trench-Tech exclusive replaceable heat-treated alloy wear plates are held in place by large Caterpillar type cutting edge bolts with 48-in. heavy-duty single or wheel assembly. The operator cabin comes fully enclosed with climate controls for heat and air conditioning and a pressurized system for a dust and noise free environment. Opera-tors of the TT-2950 have a panoramic view with the elevating cabin and the exclusive Trench Safety Vision System, which is found standard on each machine. The camera system provides machine operators with views from up to three or four cameras mounted around the machine. Images are displayed on a 7-in. color LCD screen located in the op-erator cab. With the increased visibility, operators can now be aware of many more aspects of the work environment, improving work efficiency and safety. Options for the TT-2950 include a Milling and Mining attach-ment. The Trench-Tech milling and mining head attachment is designed to make the standard track-mounted trenching unit more versatile by adding the wider width cut of 15 ft, 8 in. and 3 ft deep available in a single pass. For more information, visit www.trenchtech.com.


Trencor T1760 Chain TrencherThe Trencor T1760 mechanical drive chain trencher offers plenty of power and performance in the toughest digging conditions. It’s

ideal for pipeline work and water, sewer and utility installation. Its Caterpillar turbocharged diesel Tier 2 Stage IIIA engine provides 950 hp and 3,122 ft-lbs of torque at 1,400 rpm. It can trench up to 72 in. wide at a depth of 16 ft or up to 36 in. wide at a depth of 30 ft. Four newly designed, 10-in. bore boom lift cylinders improve performance and reduce maintenance points. The Trencor line of high-perfor-mance rock trenchers, surface miners, RoadMiners and related equipment is well known for its durability and high-production capabil-ity. Trencor has more than 60 years of experience in the specialized trenching industry, serving the mining, construction and pipeline markets. All Trencor products are manufac-tured in Loudon, Tenn. Trencor machines are supported through a dedicated parts and ser-vice center, available 24-hours a day to help customers minimize downtime and get need-ed repair parts. The Trencor lineup includes seven different trencher models that can be configured to meet custom applications. Models include the T765, T1060, T1360, T1460, T1660, T1760, and the T1860. A rug-ged RoadMiner attachment is also available. The RoadMiner is particularly well suited to tasks that require the removal of large quanti-ties of material for site preparation, building construction, road building, soil remediation, mining and quarrying. Trencor is a division of Astec Underground. For more information, visit www.astecunderground.com.

Vermeer Bucket Wheel Attachment The Vermeer high-capacity bucket wheel attachment is designed for the installation of small diameter cross-country pipelines

and helps increase productivity in soft soils. Instead of the typical chain configuration, which positions the carbide trencher teeth in a specific formation or pattern, the wheel features a series of buckets, which rotate in a circular motion helping move more dirt from the trench. Optional pingo teeth, which enhance the removal of dirt, are also available. The attachment has a cutting width of 22, 24 or 28 in., depending on the size of buckets used. Vermeer has incorporated a number of unique design features into the attachment. To protect the bucket from damage, an independent metal band is bolted to the rim and acts as a leading edge to re-move dirt from the trench. Should the bucket happen to hit a rock, the band is designed to break away from the rim. The band can easily be bolted back into place, saving time and allowing the operator to simply replace the band rather than the whole bucket. The bucket wheel is powered by the Vermeer T655 tractor, which features a 250-hp John Deere 6090 HF diesel engine. An option-al auto-leveling tilt track allows the operator to maintain a vertical trench on slopes up to 10.5 degrees. For projects requiring high

horsepower and deep digging depths, Vermeer offers the T1055 Commander 3 (not pictured). Powered by a 415-hp engine, the T1055 features a rotary power headshaft and splined headshaft that produce a lower speed and higher torque, providing supe-rior rock penetration and low chain wear for better production results. The T1055 is equipped with the new TEC Plus electronic control system, designed for im-proved diagnostic capabilities and to increase performance by enhancing machine controllabil-ity. Sectionalized boom lengths increase work efficiency. The 6-, 8-, 10-, 12- or 14-ft boom lengths offer job flexibility and eliminate the time and effort of changing booms. For more information, visit www.vermeer.com.


North American Oil & Gas Pipelines Calendar

March

6-8API Conference & ExpoMarina Bay Sands HotelSingaporeWeb: www.apiexpo.org

6-8CGA Excavation Safety Conference and ExpoRio HotelLas VegasWeb: www.cgaconference.com

9-14PCCA Annual ConventionHyatt Regency Hill Country Resort & SpaSan AntonioWeb: www.pccaweb.org

11-15No-Dig ShowNorth American Society for Trenchless Technology (NASTT)Gaylord Opryland Hotel & Convention CenterNashville, Tenn.Web: www.nodigshow.com

12-16NUCA Annual ConventionRenaissance Worthington HotelFort Worth, Texas Web: www.nuca.com

13-17AGC of American Annual ConventionHilton Hawaii Village Beach Resort & SpaHonoluluWeb: www.agc.org

April

10-11ShaleComm 2012Westin Convention CenterPittsburghWeb: www.ShaleComms.com

11-13 INGAA Foundation Spring MeetingMarriott San Antonio Hill Country Resort & SpaSan AntonioWeb: www.ingaa.org

16-18DCA Annual Safety CongressPlanet HollywoodLas VegasWeb: www.dca-online.org

17-19API Pipeline ConferenceAmerican Petroleum InstituteWeb: www.api.org

30-May 3 OTC2012 Offshore Technology ConferenceReliant ParkHoustonWeb: www.otcnet.org

May

15-17Appalachian Underground Corrosion Short Course (AUCSC 2012) West Virginia UniversityMorgantown, W.Va. Web: www.aucsc.com

June

3-7PLCA Canada Annual ConventionFairmont ChateauWhistler, British ColumbiaWeb: www.pipeline.ca

July

11-15 DCA Mid-Year MeetingLa Posada de Santa Fe Resort & SpaSanta Fe, N.M. Web: www.dca-online.org

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

31-Aug. 2 Gas Operations & Leadership Summit Midwest Energy Association Iowa State University Ames, IowaWeb: www.midwestenergy.org

August

19-22ASCE Pipelines Conference American Society of Civil Engineers (ASCE)Fontainebleau ResortMiami Beach, Fla. Web: http://content.asce.org/conferences/pipelines2012

The Events Pipeline Conferences, Meetings & Trade Shows

Advertiser Website Page #

Alliance Plastics ................................... www.allianceplastics.com ..........Poly bag

Astec Underground .............................. www.astecunderground.com ...............44

E-Z Line Support Company Inc ............ www.ezline.com ....................................25

Fecon Inc. ............................................. www.fecon.com ....................................11

Finn Corporation .................................. www.FINNcorp.com ...............................9

Girard Industries ................................... www.GirardIndustries.com ...................21

The HDD Co. ........................................ www.hddcompany.com ........................19

Horizontal Technology Inc. ................... www.horizontaltech.com ........................7

IPLOCA ................................................. www.iploca.com ...................................41

Laney Directional Drilling...................... www.laneydrilling.com ..........................33

Mesa Products ..................................... www.mesaproducts.com......................41

NACE International ............................... www.nace.org/education ........................3

Advertiser Website Page #

Pemberton Inc. ..................................... www.pembertoninc.com ......................28

Pipeline Inspection Company .............. www.picltd.com ....................................13

Pipeline Machinery-CAT ....................... www.plmcat.com ....................................5

Precision Pigging, LLC ......................... www.PrecisionPigging.com ..................23

Rig Source ............................................ www.rigsourceinc.com ...........................2

Sawyer Manufacturing ......................... www.sawyermfg.com ...........................15

StraightLine HDD ................................. www.straightlinehdd.com .....................43

Trenchless Technology Road Show ..... www.trenchlessonline.com ...................17

Vacuworx .............................................. www.vacuworx.com ..............................27

Wasatch Supply ................................... www.psscompanies.com .....................29

Welded Construction L.P. ..................... www.welded.com .................................30

Advertisers Index


Business Cards


A great deal of emphasis has been placed on improving safety processes and conditions in the pipeline industry workplace during the last several years. This is a positive move as the facility and processing portion of the oil and gas industry has been ahead of our focus on this path.

Through individual contractors, owner companies and various mega projects, we have moved in the correct direc-tion. Group organization efforts such as the Pipe Line Con-tractors Association (PLCA), the Distribution Contrac-tors Association (DCA), the American Pipeline Contrac-tors Association (APCA) and INGAA Foundation have provided direction and sup-port via multiple venues, fo-rums and programs. These have included the inclusion of third-party consulting companies and regulatory agencies.

This collaborative ef-fort has been encouraging. This is not just a union vs. non-union issue or owner-operator-client issue or a problem solely for contrac-tors, designers, inspectors, management or labor. This is to reduce — to the point of elimination — incidents that result in employees of any party in this industry being injured, which results in individuals and families being affected negatively for periods of time that can vary from a brief period to a lifetime of disability. However, indi-vidual ownership is the only true solution to reaching the level this culture truly needs to achieve.

It truly is up to you and me. The decisions we make each day, the examples we act out and what we consider important and demonstrate as such does matter. This is true regardless of our role within the industry, whether it be management, superintendent, foreman, engineer, in-spector, office worker, accountant, equipment operator, welder, truck driver, laborer, welder helper or any other position. Our actions influence our fellow workers more than we realize.

We are examples, negative or positive.

How Do We Get There? As an example, championship teams do not reach such

levels of excellence without championship coaching. Identifying things that we are doing wrong, providing guidance for correcting, gathering agreement as to the proper path and best methods going forward are essential

considerations for improvement. Before coaching can be successful, expectations must

be understood by all team members. Plans must be devel-oped for training and directions provided for the journey. Once defined and understood, those team members who don’t wish to follow team rules risk being asked to leave the team, rather than potentially becoming the victim or cause of a tragic incident. To quote a learned business ad-

visor, Dr. Emil Fails once said, “If you don’t have a plan for where you are going, you are already there.”

Employee commitment is essential to the effort of in-stilling a robust safety culture. Ownership buy-in and mak-ing safety a value in their own personal lives and within their family will firmly cement the foundation of this process.

Once achieved, this com-mitment to safety can posi-tively lead to modifying be-haviors and having a team of people who work together to achieve desired goals with-out unnecessary risk-taking,

which then mitigates exposure to potential dangers with proper project execution plans and resulting in safe execution techniques during construction.

Keeping Open Channels Communication of our results to our employees,

staff, clients and to the industry is necessary for growth among the industry as a whole. We must encourage and embrace new ideas. We can learn from each other.

We must, as beginning points, agree that 1.) All ac-cidents are preventable; 2.) Zero incidents/accidents are the goal; and 3.) Safety must become a core value. We must stop viewing safety as just a priority, as priori-ties change over time. Values grow stronger as we travel through life.

As you lead along this path, do so not only by ex-ample, but by bringing teammates with you so that they may become leaders such that we accomplish our goals, for this industry and its culture, through the desire to join rather than the coercion tactics that have some-times been attempted in the past.

Don Thorn is president of Welded Construction LP, based in Perrysburg, Ohio, and a member of the North American Oil & Gas Pipelines Editorial Advisory Board.

Pipeline Perspectives

Pipeline Industry Safety CultureWe Own it, What Do We Do With it? By Don Thorn

This commitment to safety

can positively lead to

modifying behaviors and

having a team of people

who work together to

achieve desired goals.

Welcome | North American Oil & Gas Pipelines · 2014-01-31 · 6 North American Oil & Gas Pipelines...

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Transcript of Welcome | North American Oil & Gas Pipelines · 2014-01-31 · 6 North American Oil & Gas Pipelines...