Welcome | North American Oil & Gas Pipelines · 2014-01-31 · Survival, Resilience and Redemption...

4 North American Oil & Gas Pipelines | MARCH 2013 napipelines.com

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26A Cut in the FieldPlasma cutting equipment offers solutions for pipeline construction and maintenance.By Jim Colt

30Challenges for the Future Training the next generation of workers in the oil, gas and chemical industry.By Sarah Desborough and Jane Williams

32Gold from IronProfessional asset managers turn fleets into powerful profit centers.By Stan Orr

36The Mobile MovementDevices improve software solutions for field technicians and contractors.By Jim Wenninger

March 2013Volume 6 Issue 3Published by Benjamin Media Inc.

North American Oil & Gas Pipelines (ISSN 2166-6334) is published twelve times per year. Copyright 2013, Benjamin Media Inc., 10050 Brecksville Rd., Brecksville, OH 44141 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 Brecksville office. POSTMASTER: send Changes of Address to North American Oil & Gas Pipelines, P.O. Box 190, Peninsula OH 44264 USA.

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DEPARTMENTS 10 News

18 Project Roundup

40 Product Showcase

46 Calendar

COLUMNS 6 Editor’s Message

8 Publisher’s Message

MARKETPLACE

45 Business Cards

46 Index of Advertisers

ON ThE COvER: Corrpro provides a full suite of oil and gas pipeline integrity management solutions. With a focus on corrosion control and cathodic protection, the company develops systems to protect pipelines throughout the world.

20 Pipeline ProtectorsCorrpro has grown along with the pipeline integrity management industry.By Bradley Kramer


What the ‘Fractivists’ Want Between the shale boom and TransCanada’s Keystone XL pipeline, environmental

activists are stirring up a maelstrom of anti-energy publicity. They want to block the oil pipeline from Canada. They want to stop hydraulic fracturing. What progressive sentiments: Let’s just stop these technological advancements.

March began with the news that the U.S. State Department had released its latest environmental impact statement regarding Keystone XL. The report, released March 1, seems to indicate approval of TransCanada’s Presidential Permit may be in the off-ing, stating that the pipeline wouldn’t significantly impact environmental resources along its route. We have to wait 45 days for a public comment period before the State Department releases a final environmental ruling.

Environmental activists have vowed to keep fighting the Keystone XL project be-cause they say developing the Canadian oil sands produces more greenhouse gases than other sources. Instead of working to find more efficient and environmentally friendly means of producing the oil, these groups want to stop it in its tracks.

It’s a similar story with developing shale oil and gas. The message isn’t, “Let’s make this better.” But rather, “Stop fracking now.”

At the beginning of February, as we were closing out that month’s issue, which featured an examination of the natural gas market amid increased development of the shale plays, I had the opportunity to review a copy of the new documentary FrackNation. The film, released this year and directed by investigative journalist Phe-lim McAleer, was made in response to the 2010 Oscar-nominated Gasland, directed by environmental activist Josh Fox. Whereas Fox’s film stands firmly in the anti-fracking camp, McAleer’s leans sharply in the other direction.

FrackNation shows a number of farmers in Pennsylvania and New York who have been affected by the shale development, with most saying they’ve benefited from hydraulic fracturing, either through the deals they’ve signed with drilling companies or through increased financial investment in their region.

McAleer spends most of the movie dispelling claims made in Gasland. He explains that the highly publicized scene where tap water catches on fire was not because of hydraulic fracturing, but had happened in parts of Pennsylvania and other states decades before the advent of fracking. Instead, naturally occurring methane in the soil was to blame. When confronted with this argument, Fox says, “It’s not relevant.” McAleer posted the exchange on YouTube and other websites, but was forced to re-move the videos after being threatened with lawsuits.

One couple claims in Gasland that their water well contained “weapons-grade urani-um” and other harmful chemicals, but they could produce only clear water from the tap for FrackNation. Thankfully, they had jugs of dirty yellow water for McAleer to inspect.

FrackNation picks away at Gasland’s argument with a careful selection of govern-ment officials and scientists who say hydraulic fracturing is safe, dispelling myths about the chemical makeup of drilling fluid and the reports of earthquakes caused by frack-ing. If you argue that Gasland paints a grim picture of shale development, FrackNation could just as well be accused of looking through rose-colored glasses.

The anti-fracking activists — or “fractivists,” as some call them — propose banning hydraulic fracturing, period. The problem with that resolution is it doesn’t solve a thing. The idea of developing alternative energy sources is one I support, but we need oil and gas in the meantime. Wind and solar are a long way from keeping all of our lights on, and we don’t have the infrastructure to support universal adaptation of elec-tric cars. Rather than calling for the ban of hydraulic fracturing or Canadian oil sands, a truly progressive argument would be to promote further advancements to improve today’s technology to ensure these resources are developed as safely as possible.

Brad KramerManaging [email protected]

Publisher Bernard P. Krzys

Associate Publisher Robert D. Krzys

Editor James W. Rush

Managing Editor Bradley Kramer

Contributing Staff Editors Sharon M. Bueno

Andrew Farr Keith Gribbins Pam Kleineke Kelly Pickerel

Production Manager Chris Slogar

Graphic Designers Sarah E. Haughawout

Deb McManus 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 Manager Melanie Roddy

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 Strategic Advisor, Michels Corp.

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Editor’s Message

8 North American Oil & Gas Pipelines | MARCH 2013

A Remarkable and Inspirational True Story

In my professional career, I have heard many good speakers. But none captured my heart as Louie Zamperini did recently.

In February, I had the privilege of participating in the U.S.-based Pipe Line Con-tractors Association’s (PLCA) annual convention. Zamperini was the speaker in the opening session. I had read his story, as written by Laura Hillenbrand, in the book Unbroken more than a year ago. Zamperini’s experience in World War II was so un-believable I could not put the book down. I especially related because my father was a U.S. Marine and fought in the Pacific during the war.

Zamperini’s story started when he was basically a juvenile de-linquent in California and found running as a way to lift himself from that kind of life. He set a U.S. high school mile record that lasted for some 19 years, went on to set a mile record in the NCAA that lasted for 20 years, and in the 1936 Olympics as a teenager placed eighth in the 5,000 meters. He was on target to break the four-minute mile and was a 1,500-meter favorite for the 1940 Olympics. But of course World War II happened.

Zamperini was a bombardier in the U.S. Army Air Corps on a search and rescue mission in May 1943 in a B-24 that crashed into the Pacific

Ocean. His pilot and another crewmate got out alive and ended up in a raft. The other crewmate soon died, but Zamperini and the pilot drifted for 47 days in the ocean, enduring a strafing by a Japanese plane, an encounter with a shark and even a typhoon.

They landed on an island only to be captured by the Japanese. They were threat-ened with beheading constantly and after about two months were sent to a POW camp in Tokyo. There, Zamperini encountered a merciless guard they called “the Bird.” Knowing that Zamperini had been an Olympian, this guard forced him to do unthinkable things. Zamperini was later transferred to another POW camp, hoping to get away from “the Bird,” but the guard followed him.

Miraculously, Zamperini and his pilot survived all of that. Zamperini had been listed as killed in action, so imagine the joy of his parents when he got back home in 1945. Zamperini told a funny story that I had not read in the book. His mother had received $10,000 from an Army insurance policy on his life, but she had put the money in the bank because she did not want to give up hope. When he came back, she tried to return the money, but they said to keep it. During that experience, a paymaster said to him, “Wait, you were on a life raft for 47 days. We owe you trav-el pay.” But they later rescinded that, saying the 47 days were not authorized. His description of his war experiences brought many of us at the PLCA meeting to tears.

Zamperini married a beautiful debutante, but his life sank into despair and he was consumed by alcoholism. Nightly, he had horrible nightmares. His wife threatened to divorce him unless he changed his ways and urged him to go see a fantastic evangelist, who turned out to be a young Billy Graham. Fighting all the way, Zamperini went to see Graham and on his second visit, he experienced another miracle in life and the nightmares stopped. Now a devout Christian, Zamperini has spent the last 60 years sharing his message and building sports camps for troubled kids in Southern California.

While Zamperini did not get to run in the Olympics again, he did return to Japan as an 81-year-old torch bearer for the 1998 Winter Olympics in Nagano. Zam-perini is now 96 years old and is such a wonderful inspiration. I encourage you to read Unbroken. Thanks so much to PLCA for having Zamperini as a speaker.

My thanks to all Veterans.

Bernard P. KrzysCEO and Publisher

Publisher’s Message

UnbrokenA World War II Story of Survival, Resilience and

RedemptionWritten by Laura HillenbrandPublished by Random House Inc.

About tHe bookIn May 1943, an Army Air

Forces bomber crashed into the Pacific ocean, leaving only a spray of debris and a slick of oil, gasoline and blood. then, on the ocean surface, a face appeared. It was that of a young lieutenant, the plane’s bombardier, who was struggling to a life raft and pulling himself aboard. So began one of the most extraordinary odysseys of World War II.

the lieutenant’s name was Louis Zamperini. In boyhood, he’d been a cunning and incor-rigible delinquent, breaking into houses, brawling and fleeing his home to ride the rails. As a teenager, he had channeled his defiance into running, discover-ing a prodigious talent that had carried him to the berlin olym-pics and within sight of the four-minute mile. but when war had come, the athlete had become an airman, embarking on a jour-ney that led to his doomed flight, a tiny raft and adrift into the un-known.

Ahead of Zamperini lay thou-sands of miles of open ocean, leaping sharks, a foundering raft, thirst and starvation, enemy air-craft, and, beyond, a trial even greater. Driven to the limits of endurance, Zamperini would an-swer desperation with ingenuity; suffering with hope, resolve and humor; brutality with rebellion. His fate, whether triumph or trag-edy, would be suspended on the fraying wire of his will.

Laura Hillenbrand, the author Seabiscuit, tells an unforgettable story of the resilience of the hu-man mind, body and spirit. uni-versal Pictures is set to make a movie of Zamperini’s story, with Angelina Jolie reportedly to di-rect the film.


North America News

The shale gas boom is in full effect, but concerns from the public over the environmental impact of devel-oping these resources have mired the industry in controversy. DNV has a solution.

The company, which states its mis-sion as “safeguarding life, property and the environment,” has launched a document of recommended practic-es (RP) for the entire lifecycle of shale gas extraction, based on risk manage-ment principles, industry best prac-tices and standards. DNV’s objective is for the RP to form the foundation for future development of a worldwide recognized standard for safe and sus-tainable shale gas extraction. DNV is calling for input from industry, regu-lators, NGOs and other interested par-ties. The full RP document is available at www.dnv.com/shalegas.

“Controversy and conflict are con-stant themes as proponents and oppo-nents debate the extraction of natural gas,” said Remi Eriksen, CEO of DNV Maritime and Oil & Gas. “Since the RP combines current best practices and standards in the industry with a risk-based approach, it can serve as a com-mon reference point and help bridge the gap between parties with oppos-ing views. Our recommended practice ensures that the contentious issues are managed in an accurate, balanced, transparent and traceable way.”

The framework was developed over an 18-month period, which included collaboration with stakeholders, as well as review of existing practices and guidelines. Multiple organiza-tions have already developed rec-ommendations and guidelines, yet a complete risk management frame-work has not existed.

DNV launched its RP guidelines Jan. 17. The company recommends a risk-based approach to health, safety and environmental issues associ-ated with shale operations. It recom-mends that shale gas operations are monitored and publicly reported,

thus establishing proper points of reference and consistent monitoring prior to, during and after operations. The RP also advises carrying out ex-tensive baseline surveys prior to the commencement of any shale gas ac-tivities, with information gathered being openly disclosed to all stake-holders, including the general public.

“We believe that companies that embrace our recommended practice will earn increased trust and confi-dence among the general public and other stakeholders by implementing operational best practices and creat-ing standards for industry to docu-ment how their activities are being executed in a safe and responsible manner,” Eriksen said.

The DNV recommended practice focuses on the following aspects:

• Management systems

• Safety, health and the environment

• Well integrity

• Management of water and energy

• Infrastructure and logistics

• Public engagement

• Stakeholder communication

• Permitting

DNV’s development of the recom-mended practices grew out of the company’s core mission, according to Steinar Thon, associate director with DNV, who managed the devel-opment of the guidelines.

“We could see there were certain guidelines and design standards that favored individual aspects about shale gas,” he said. “What we set out to do was to develop a more com-plete document to cover a wide range of risk categories. We also saw these recommended practices were in line with DNV’s engagement with the oil and gas value chain. We decided we needed to issue this document on

DNV Launches Global Recommended Practices for Shale Gas Risk Management

By introducing the element of independent verification, DNV’s recommended practices will help build trust among shale

gas stakeholders. (© DNV/Lasse Danielsen & John McKay, Render)


shale gas, as we have on all the con-ventional methods of development.”

The RP will allow the industry to “more easily gain stakeholder accep-tance, whether from regulators or the public, by implementing a best prac-tice approach that is internationally recognized, said Lars Soerum, director of technology and services for DNV Europe and North Africa.

DNV’s role as an independent third party provides a level of trust between operators and the public, Soerum said. The practices encourage operators to be transparent to build cooperation.

“We hope to see a positive response from the public’s point of view,” he added. “We want to be able to assist the industry and alleviate some of the concerns that the public has. There’s a fundamental lack of trust on the parts of the public and the operators. By be-ing an independent third party and developing these recommended prac-tices, we’re verifying that the operators are doing what they say they’re doing.”

DNV’s recommended practices ad-vocate a risk-based approach to safety, health and the environment, Thon said. Although the practices are risk-based, they are technology neutral, al-lowing for local differences.

“We have in various chapters dif-ferent risk categories and elements, and we’ve offered a series of risk mitigation strategies that can be ap-plied,” Thon explained. “What we do not do is set up some kind of risk

assessment by a putting a value or numbers on the categories, ranking them against each other. This has to be determined from site to site and project to project.”

By having a set of recommended practices, companies operating in shale formations are better equipped to address regulatory concerns no matter where the company is based.

“Two elements benefit industry di-rectly,” Soerum said. “In Europe, we have a political situation in different countries where they have shale re-sources, where the governments re-quire companies that want to embark on exploring shale gas they have to demonstrate to the authorities that they have experience robust enough to have success. In Germany, before a company even starts to work in the country, they have to demonstrate to regulators that they have identified all the risks and show they have the governance robust enough to handle the risks. In other countries, opera-tors have to show outside stakehold-ers, like the public, that they’re doing what say they are doing.”

By applying the process of indepen-dent verification and showing itself to be in compliance with recommended practices, an operator can build trust, which Soerum said is lacking “among the public and some parts of the me-dia.” This lack of trust is mitigated through the independent verification process.

“These recommended practices are not meant to replace what is already there in terms of recommended prac-tices and standards,” Thon added. “There are standards that are much more detailed that we do not get into. Throughout the chapters, we make reference to several others standards and guidelines.”

DNV is a global provider of knowl-edge for managing risk. The indepen-dent foundation’s core competency is to identify, assess and advise on risk management, helping custom-ers safely and responsibly improve their business performance. DNV serves a range of industries, with a special focus on the energy and mar-itime sectors. Since 1864, DNV has balanced the needs of business and society based on its independence and integrity. Today, the Oslo-head-quartered company has 12,000 em-ployees and a global presence with a network of 300 offices in more than 100 countries.

DNV will be presenting its recom-mended practices throughout the year at various conferences and to different regulators around the world. Soerum hopes to spark a conversation about risk management between all stake-holders.

“Obviously, the element of commu-nication is very important,” he said. “Having a rational conversation is one of the best risk management methods out there.”

U.S. State Dept. Releases Keystone XL Draft Environmental Report

After years of bottlenecking, the con-troversial Keystone XL pipeline contin-ues to make progress since the start of 2013. TransCanada Corp. welcomed the release of the U.S. State Department’s Draft Supplemental Environmental Im-pact Statement (DSEIS) on the project, which was first proposed in 2008.

While TransCanada is still reviewing the DSEIS, it builds on more than 10,000 pages of review already completed for Keystone XL. The DSEIS reaffirmed that “there would be no significant impacts to most resources along the proposed project route.” It noted that Keystone XL would result in no “substantive change in global GHG emissions” and it is “un-likely to have a substantial impact on the rate of development in the oil sands

or on the amount of heavy crude oil re-fined in the Gulf Coast area.” Finally, it also noted that “the denial of a Presiden-tial Permit would likely result in actions by other firms in the United States (and global) petroleum market, such as use of alternative modes to transport WCSB and Bakken crude.”

“Completing the Draft Supplemen-tal Environmental Impact Statement for Keystone XL is an important step toward receiving a Presidential Permit for this critical energy infrastructure project,” said Russ Girling, TransCan-ada president and CEO. “No one has a stronger interest than TransCanada does in making sure that Keystone XL operates safely, and more than four years of exhaustive study and envi-ronmental review show the care and attention we have placed on ensuring this is the safest oil pipeline built to date in the United States.”

The August 2011 Final Environmen-tal Impact Statement (FEIS) further

notes that TransCanada has also agreed to adopt 57 special safety measures for the pipeline developed by the U.S. fed-eral pipeline safety regulator (PHMSA), which the FEIS said would give the pipeline “a degree of safety over any other typically constructed domes-tic oil pipeline system under current code.” The 57 conditions include bury-ing the pipe a minimum of 4 ft below the surface, increased pipeline inspec-tions and a greater number of remote-controlled valves that can shut down the pipeline within minutes.

Throughout 2012, TransCanada completed the process established by the state of Nebraska and Nebraska’s Department of Environmental Qual-ity to develop a revised route through Nebraska that avoids the Sand Hills area and minimizes potential impacts on other environmentally-sensitive features in the state. The revised route was approved in January 2013 by Ne-braska Gov. Dave Heineman.

napipelines.com MARCH 2013 | North American Oil & Gas Pipelines 13

PLCA Meets in ArizonaThe Pipe Line Contractors Association held its 65th

annual convention, Feb. 12-16, in Scottsdale Ariz., at the Hyatt Regency Resort. Attendance was very strong, as more than 600 conventioneers shared in numerous business and social events. There were numerous meet-ings with the board of directors, plus a meeting with the board of trustees to discuss the Pipe Line Industry Advancement Fund, PLCA Scholarship Foundation and World Federation of Pipeline Industry Associations.

Dan Murphy, Precision Pipeline LLC, outgoing presi-dent of PLCA, chaired the overall meeting. At the open-ing business session, Murphy introduced inspirational speaker Louie Zamperini (for more information about Zamperini, see this issue’s Publishers Message on page 8). Dr. Lowell Catlett was the guest speaker in the second general business session. Catlett is with Mexico State Uni-versity. He is a futurist and an economics professor.

Robert Jones, TransCanada, also addressed the conven-tion regarding the status of the Keystone XL pipeline proj-ect. Jones was non-committal on the start of the construc-tion of the pipeline because it is still awaiting approval from the U.S. government. Since then, the U.S. State De-partment released its Draft Supplemental Environmental Impact Statement (DSEIS) on the project, which reported that “there would be no significant impacts to most re-sources along the proposed project route.”

The highlight of the convention was the education auction, which raised more than $435,000 this year. Butch Graham, Ritchie Bros., once again served as the auctioneer.

As is customary, the convention closed out with the annual banquet and floor show. John Allen, Pipe Line Constructors LLC, was introduced as the 2013 PLCA president. The 2014 convention will be Feb. 18-22 at the Hyatt Resort in Bonita Springs, Fla.

2013 PLCA board of directors. Back row (from left): Bernie Bermack, Jimmy Crotts, Don Thorn, Chris Leines, Dwayne Osadchuk, Brian Ganske, Robert Osborn and Kelly Osborn. Front row (from left): Frank Welch, Dan Murphy, John Allen, Ronnie Wise and Rob Riess. (Photo courtesy of Ben Arnold.)


Ohio Man Indicted in Dumping Drilling Waste into River

The owner of Hardrock Excavat-ing LLC in Youngstown, Ohio, has been indicted in federal court with one count of violating the Clean Water Act.

Ben Lupo, 62, of nearby Poland, Ohio, is accused of directing an em-ployee to illegally discharge brine and oil-based drilling mud into a stormwa-ter drain that flowed into an unnamed tributary of the Mahoning River and ultimately into the Mahoning River near Youngstown, according to Steven M. Dettelbach, the U.S. Attorney for the Northern District of Ohio.

The alleged conduct took place on Jan. 31, according to an affidavit filed in U.S. District Court.

“Those of us from Northeast Ohio know the legacy of dumping indus-trial waste into our waterways,”

Dettelbach said. “Whether our wa-ter flows south to the Ohio River or north to the Great Lakes, protect-ing and preserving clean and safe water remains a major priority of the my office and the Department of Justice.”

Hardrock Excavating provides ser-vices to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drill-ing mud. There are approximately 58 mobile storage tanks at the company’s Youngstown facility and each holds approximately 20,000 gallons.

The Ohio Department of Natu-ral Resources (ODNR) received a call from an anonymous person who stated that on the night of Jan. 31 someone would be illegally discharging wastewater from the Hardrock facility. When ODNR in-spectors arrived at the scene, they found a hose connected to a storage tank, discharging wastewater into a stormwater drain at the facility. In-

spectors took a sample of the waste-water, which was black in color.

Ohio EPA personnel arrived at the facility on Feb. 1 and found that the unnamed tributary had puddles of oil throughout its length, from where the stormwater drained to the Mahoning River, approximately one mile away. Oil and an oily sheen were also visible in the Mahoning River.

That day, an EPA representative spoke with Lupo about the discharge into the storm drain. Lupo admitted he directed a Hardrock employee to discharge the contents of the storage drain into the stormwater drain and further admitted that he directed dis-charge from a storage tank a total of six times, according to the court affi-davit.

On Feb. 12, a Hardrock employee stated that the discharges began in November 2012 at the direction of Lupo and that the employee was aware of at least 20 discharges into the stormwater drain.

Marcellus-Utica ConferenceMarcellus shale drilling by most estimates now ac-

counts for more than a quarter of all shale gas produced in the United States. Utica shale drilling is also now tak-ing off, expecting to produce about 40 trillion cubic feet of natural gas reserves, plus a billion barrels of oil. Rec-ognizing of all this, Hart Energy organized a Marcellus-Utica Midstream Conference & Exhibition, Jan. 29-31, at the David L. Lawrence Convention Center in down-town Pittsburgh.

The conference exhibit hall presented the oppor-tunity for 140 companies to display their wares and services. There were 1,700 attendees. The numerous event sponsors included Flexsteel, Minnesota Ltd. and H&H Enterprises.

There were many presentations before an audience of hundreds in one large conference room, with each pre-sentation also simulcast into the exhibit area. A special address was made by Pennsylvania’s Gov. Tom Corbert, considering the majority of Marcellus shale now being drilled is in Pennsylvania. Robert Riess, Sheehan Pipe Line Construction was on hand to describe efforts across Appalachia for getting hydrocarbons to users. Steve Jacobs of Harvest Pipeline discussed several projects including a pipeline to deliver diluent to Cochin and Southern Lights pipelines to Canada. Kinder Morgan’s Karen Kabin discussed their 1,900 mile Cochin pipeline reversal, which will move NGLs from Appalachia and the U.S. Gulf Coast to growing Canadian markets.

Hart will be conducting numerous developing uncon-ventional oil and gas events in 2013 — upcoming loca-tions include Denver, San Antonio, Calgary, Tulsa, Fort Worth and another in Pittsburgh. For further informa-tion, visit www.hartenergy.com.

Working the shale: Larry Wargo (left) and Bunky Jordan represented H&H Enterprises at Marcellus-Utica Midstream event. H&H is performing numerous pipeline installations in the region.

equipping the shale: Volvo’s Jack Bolton and John Duff show Brad Burris (center) of Rudd Equipment Co. the company’s wares at Marcellus-Utica Midstream.

Michels Announces New Leadership for Pipe Services

Michels Corp. has made some changes to the leadership structure for its Pipe Services division. Pat Her-zog has been appointed vice presi-dent of Michels Pipe Services, and Kelly Odell has been named vice president of Advanced Pipeline Prod-uct Development.

“This is the right leadership team to continue to advance our Pipe Services

division,” said Pat Michels, president of the utility contrac-tor. “This new structure allows us to utilize the strengths of both of these skilled profes-sionals to con-tinue the de-velopment of new markets, techniques and services.”

Michels Pipe Services is a proven leader in pipeline rehabilitation, specializing in using cured-in-place pipe techniques in mu-nicipal and industrial applications.

This new structure will allow Her-zog to use his organizational and leader-ship expertise to manage and lead the Mi-chels Pipe Ser-vices operation while allowing Odell to use his vast technical knowledge to develop new in-novations and expand CIPP operations to keep Michels at the front of the industry. Odell is a respected industry leader who will continue to develop and refine new methodologies, including large diam-eter air inversions, which Michels re-cently successfully completed.

Herzog most recently served as vice president of Michels Wind En-ergy, where he was responsible for general operations for all wind farm

construction in North America. Her-zog has also been instrumental in many large civil projects across Mi-chels, including civil infrastructure support for pipeline and high-volt-age transmission work. Before join-ing the Michels team, Herzog served as an Engineer Officer in the U.S. Marine Corps for more than 20 years of combined active and reserve duty, as well as a decade in the construc-tion industry.

Odell has been vice president and general manager of Michels Pipe Ser-vices since 2004, when Michels ac-quired Gelco Services, a leading CIPP business. Odell had been vice presi-dent and general manager at Gelco since 1997. In all, he has nearly 35 years of experience in the specialty construction industry.

Michels Pipe Services is a division of Michels Corp., which is headquar-tered in Brownsville, Wis.


Odell

Herzog


PPI Creates ID Registry for Gas Piping Components

Keeping track of pipe segments is an integral part of maintaining pipe-line integrity. In that effort, the Plas-tics Pipe Institute Inc. (PPI) has es-tablished a new website that acts as a clearinghouse for the registration of all polyethylene (PE) gas pipe and component manufacturers’ identifica-tion codes. It can be found at www.componentID.org.

“This is a critical part of the track-ing and traceability system, which provides a standardized approach to marking all gas distribution system components,” said Stephen Boros, technical director of PPI. “It was de-veloped so manufacturers could eas-ily provide product traceability in-formation that gas utilities can use in the implementation of their own Distribution Integrity Management Program (DIMP), a program that has been mandated by the Pipeline and Hazardous Materials Safety Adminis-tration (PHMSA), U.S. Department of Transportation.”

PPI is the major trade association representing all segments of the plastic pipe in-dustry. The group has agreed to op-erate and main-tain the registry, which Boros said was developed in coordination with the Opera-tions and Tech-nology Devel-opment (OTD) consortium of gas utilities to support the registration of a unique manufacturer identifier in conjunction with the ASTM F2897-11 Standard Specification for Tracking and Traceability Encoding System of Natural Gas Distribution Components (Pipe, Tubing, Valves, and Fittings).

ASTM F2897 alphanumeric and barcode marking requirements are now included in many leading plas-tic gas component standards includ-ing: ASTM D2513, F1924, F1948 and F2138.

“PPI manufacturers identification service is available to all gas industry component manufacturers and not only PPI members,” Boros said, add-ing that other gas system components such as metallic piping and fittings likely will be added in the future. “We believe that with the successful implementation of this program into gas distribution, this type of tracking and traceability program could prove valuable for other applications such as potable water or storm water manage-ment systems.”

Newpark Composite Mats Save Millions of Trees

Newpark Mats and Integrated Services, a unit of Newpark Re-sources and a leading provider of ground protection solutions for the construction industry, com-memorated the production of its 250,000th Dura-Base Advanced Composite Mat as it rolled off the company’s world class assembly line in Lafayette, La.

With Dura-Base mats lasting five times longer than wooden mats and weighing less than half as much, this production milestone also marked the preservation of more than 1 million trees (or ap-proximately 1.25 million wooden mats), along with a tremendous savings in transportation costs and emissions.

“Worldwide demand for Dura-Base Advanced Composite Mat Systems continues to increase across a variety of industries,” said Jeff Juergens, president of Newpark Mats. “With each of the 250,000 mats we’ve produced to date, Newpark’s precision engi-neering process and proprietary design ensure that they all possess the extreme ruggedness and ad-vanced performance required for the most demanding jobs.”

Dura-Base mats are produced from a tough non-slip advanced-composite formulation that with-stands bearing loads in excess of 600 psi. They weigh more than half of what wooden mats weigh, which saves considerable time and transportation cost.

Newpark’s precision mats pro-vide superior ground stabilization that minimizes the need for aggre-gate or gravel and enhances worker safety, while preventing soil dis-turbance and road dust. They are specially designed as a single piece, with no individual parts requiring bolts or fasteners to hold them in place. This one-piece system pre-vents spills from being absorbed into the mats and greatly aids in preventing spills from contaminat-ing ground soil. The mats’ ease of transport and installation helps pipeline operations deploy faster, saving time and money.


North American Pipeline Project Roundup

Listings Contributed by

The following oil and gas pipeline projects have been announced. Projects are in order of most recent approxi-mate starting date. All projects are for 2013 unless noted.

Pe Ben USA Inc. was awarded a contract by Spring Pipeline Services to string approximately 68.95 miles of 12-in. pipe in Live Oak County, Texas. Headquarters is in Three Rivers, Texas. The superintendent is Jimmy Gregory. Approximate start date: March 5.

Price Gregory International Inc. was awarded a contract by Marathon Petroleum Co. for the installation of approximately 14.9 miles of 24-in. pipeline in Bath, Montgomery and Rowan counties, Ky. Headquarters is unknown. The superintendent is Rex Green. Approximate start date: March 5.

Pipeline Energy Group Inc. d/b/a Carl Smith Pipeline was awarded a contract by Crestwood Midstream to install 3,100 ft of 12-in. pipeline in Doddridge County, W.Va. Headquarters is West Union, W.Va. The superintendent is unknown. Approximate start date: Feb. 25.

Price Gregory International Inc. was awarded a contract by Dominion Transmission Inc. for maintenance work on three facilities in Wetzel County, W.Va. Headquarters is Moundsville, W.Va. The superintendent is Doug Gregory. Approximate start date: Feb. 22.

Snelson Cos. Inc. was awarded a contract by Pacific Gas & Electric to install one mile of 24-in. pipeline in Alameda County, Calif. Headquarters is unknown. The superintendent is Mark Zogg. Approximate start date: Feb. 22.

Dun Transportation & Stringing Inc. was awarded a contract by SemGroup/Black Eagle to string approximately 40 miles of 12-in. pipe in Weld County, Colo. Headquarters is the pipe yard. The superintendent is unknown. Approximate start date: Feb. 18.

Henkels & McCoy Inc. was awarded contracts by Transcontinental Gas Pipe Line Co. Inc. for the following: 1) to install approximately 6.64 miles of 42-in. pipeline in Hunterdon County, N.J. Headquarters is Stanton, N.J. The superintendent is Scott Schoenherr. And 2) to replace approximately 3,000 ft of 36-in. pipeline, perform facility modifications and hydro-testing in Essex County, N.J. Headquarters is Roseland, N.J. The superintendent is Jerry Bash. Approximate starting date: Feb. 18 (for both projects).

Northern Clearing Inc. was awarded a contract by Meridien Energy LLC for clearing on approximately 7 miles of 8-, 12- and 16-in. pipeline rights-of-way in Lycoming and Sullivan counties, Pa. Headquarters is unknown. The superintendent is Dennis Bergman. Approximate start date: Feb. 18.

Rodenberg Diversified LLC was awarded a contract by Williams Operations for an undetermined amount of low hydrogen testing in Susquehanna County, Pa. Headquarters is Carrollton, Mo. The superintendent is Kevin Ekleberry. Approximate start date: Feb. 18.

Gabe’s Construction Inc. was awarded a contract by Price Gregory International Inc. to install approximately 1,350 ft of 20-in. pipeline via horizontal directional drilling in Broome County, N.Y. Headquarters is the project site. The superintendent is Steve Huibregtse. Approximate start date: Feb. 14.

The Napp-Grecco Co. was awarded a contract by Williams Transcontinental Gas Pipe Line Co. LLC for the take up and re-lay at two locations of 30-in. pipeline for DOT replacements in Chester County, Pa.; and for anomaly investigations and repairs in Bucks, Chester, Delaware, Lancaster, Montgomery and Somerset counties, Pa., and Burlington, Camden, Gloucester and Middlesex counties, N.J. Headquarters for the take up and re-lay work is Coatesville, Pa. Headquarters for the anomaly investigations is unknown. The project superintendent is Randy Betz. Approximate start date: Feb. 14.

Appalachian Pipeline Contractors LLP was awarded a contract by Piedmont Natural Gas to install 25,000 ft of 12-in. pipeline, including seven directional drills, in Hertford County, N.C. Headquarters is Winton, N.C. The superintendent is Joe Strange. Approximate start date: Feb. 11.

Laney Directional Drilling Co. was awarded a contract by Plains Pipeline LP — Matador Lateral Project to install 1,115 ft of 6-in. pipeline via directional drilling in LaSalle County, Texas. Headquarters is on the jobsite. The superintendent is David Sewell. Approximate start date: Feb. 11.

Northern Clearing Inc. was awarded a contract by Williams Field Services Group LLC to hand cut trees on approximately 14.5 miles of 12-in. pipeline right-of-way in Washington and Marshall counties, Pa. Headquarters is unknown. The superintendent is Jim Junker Sr. Approximate start date: Feb. 11.


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Gabe’s Construction Co. Inc. was awarded a contract by Alex E. Paris Contractors to install approximately 1,560 ft of 20-in. pipeline via directional drilling in Washington County, Pa. Headquarters is on the project site. The superintendent is Steve Huibregtse. Approximate start date: Feb. 7.

Laney Directional Drilling Co. was awarded a contract by Strike Construction Chevron Ethylene Feedstock Pipeline Project to install 11,447 ft of 8-, 10- and 12-in. pipeline via directional drilling in Harris County, Texas. Headquarters is on the jobsite. The superintendent is John Odom. Approximate start date: Feb. 7.

Minnesota Limited LLC was awarded a contract by NiSource Gas Transmission and Storage to install launchers, receivers, main-line valves and pipeline modifications on 26- and 36-in. pipelines in Kanawha, Clay, Braxton, Upshur, Randolph, Pendleton and Hardy counties, W.Va. Headquarters is Newton, W.Va. The superintendent is Larry Steenbergen. Approximate start date: Feb. 4.

oz Directional Drilling was awarded a contract by Otis Eastern Service Inc. to install 1,003 ft of 20-in. pipeline via horizontal directional drilling in Washington County, Pa. Headquarters is Washington, Pa. The superintendent is Dwayne Osadchuk. Approximate start date: Feb. 4.

Pe Ben USA Inc. was awarded a contract by En-terprise Products to build a pipe yard and transport 182,000 ft of 36-in. pipe from Harris County to Brazoria County, Texas. Headquarters is Rosharon, Texas. The superintendent is Robert Doyen. Approximate start date: jan. 31.

Laney Directional Drilling Co. was awarded a contract by WHC-Convent Dry Gas Project to install 4,280 ft of 12-in. pipeline via directional drilling in St Charles and St. John the Baptist parishes, La. Headquarters is on the jobsite. The superintendent is James Bond. Approximate start date: jan. 30.


PiPeline Protectorscorrpro, integrity industry Grow together

By Bradley Kramer

corrpro technicians use vacuum excavation during Ac mitigation, which is a growing problem with pipelines

collocated on electric transmission rights of way.

in the beginning,

there was a core philosophy and several offices around the United States. One house in Houston, an-other in Medina, Ohio, and others in Chicago, Philadelphia and San Francisco. With a loan from Na-tional City Bank in Cleveland, Da-vid Kroon and the other founders of Corrpro Companies Inc. started the business in 1984, focusing on corro-sion prevention.

This core technology began with cathodic protection and has grown into a full suite of corrosion pre-vention and integrity management solutions aimed at various types of infrastructure. While two-thirds of the Houston-based company’s business relates to the oil and gas industry, the other third services water and wastewater pipelines and facilities, transportation infrastruc-ture, marine structures and con-tract work for the U.S. Department of Defense.

“Our business is corrosion preven-tion,” Kroon says, but the company president adds that business related to pipeline integrity continues to grow. Ever since Congress passed the Pipeline Safety Act of 1968, the industry has evolved its integrity practices to meet safety, environ-mental and regulatory standards.

“It used to be that I spent most of my time talking to customers about corrosion, how it happened, how to control it and how the proper appli-cation of corrosion control technol-ogy ensures safe operations, envi-ronmental protection and extended structure life,” Kroon says. “We have come a long way. Not too many years ago corrosion control was the last thing people considered, but now it is addressed in the early stag-es of project planning.”

Focusing on pipeline integrity in the early stages of pipeline develop-ment is an investment that pays off, says Greta Senn, vice president of energy and mining for Aegion, the parent company of Corrpro. The cost of maintenance over time is less if companies maintain the sys-tem from the outset. The result is a reduction in operational costs over the life of the asset. With concerns related to aging infrastructure in the oil and gas industry, Senn sees new investments in pipelines and facili-ties that focus on integrity first.

“There was a long period of time where there was not a lot invested in infrastructure,” she says of the oil and gas industry. “We’re seeing an in-crease in the number of installations today, and we see that increasing over the next three to five years. Compa-nies are very mindful of building in cathodic and corrosion protection on the front end of a pipeline design. Companies are also more mindful to-day of environmental concerns and making sure infrastructure doesn’t af-fect the environment negatively.”

Modest start, steady Growth

While Corrpro began as a small company based in a few home offices around the United States, the compa-ny has expanded at a steady pace. The company did $4 million in business its first year and nine years later, in 1993, went public. Corrpro then began ac-quiring a number of companies in what Kroon calls “a fragmented industry.”

“We acquired 19 businesses in five years,” he says.

However, in 2002, Corrpro expe-rienced a hiccup in its growth with some financial problems in Austra-lia, which led to Wingate, a private equity firm in Dallas, buying into the company. Then, in 2009, Insituform purchased Corrpro. (Insituform was renamed Aegion in 2011.) Now, the company is back on track.

“Last year was a record year for us,” Kroon says. “We now employ

more than 1,000 people, half of whom are technically oriented. Cor-rpro is largely North America-based, with about 80 percent of our busi-ness here, but we also do business on all continents.”

experts in the FieldAmong Corrpro’s 1,000 employ-

ees working around the world, Senn says many are Professional Engineers and 219 are NACE International-cer-tified corrosion professionals. These specialists offer pipeline operators a

high level of know-how to remedy integrity problems in existing sys-tems, as well as help prevent prob-lems in newly built infrastructure.

“They’ve been trained in the best ways to physically do inspections, which they can then take back to the pipeline owners, report on the health of their pipelines and make recommendations on improve-ment,” says Senn, who joined Cor-rpro in May 2012. “Our technicians also have the capability that, once they have all of the upfront inspec-tion assessment work and once they collect all their data from the field, they can offer construction support that will enable a pipeline owner to mitigate corrosion on the backend. We’re truly a full-service provider.”

The task of maintaining pipeline integrity, Kroon says, begins when a company starts thinking about building a pipeline.


corrpro, integrity industry Grow togetherBy Bradley Kramer

corrpro president David Kroon cofounded the company in 1984 and ran it out of his house in Houston. the company now employs more than 1,000 people across the globe.

“It really needs to be part of an entire program that starts with how to build a pipeline so that it’s eco-nomically and effectively maintain-able,” he says. “If you build a pipe-line that will operate at an elevated temperature, the requirements for coatings and cathodic protection are different than those that operate at ambient temperatures. Integrity management starts at the conceptu-

al stage, and continues throughout the life of the pipeline.”

tools of the tradeCorrpro’s leaders are seeing an in-

crease in pipeline installations and new facilities construction, Senn says, which is increasing Corrpro’s business, especially related to de-signing corrosion prevention sys-tems, cathodic protection and AC

mitigation measures on the front end of a project.

“The overall climate in the pipe-line industry, more so than any-thing, is companies want to make sure that their systems are well maintained and efficiently moni-tored throughout the life cycle of the asset,” she says.

Corrpro offers the full suite of products for the industry, includ-


With pipeline integrity management becoming a growing concern throughout the industry, corrpro gets

involved in the planning stages of projects to ensure pipelines are protected from corrosion.

ing cathodic protection, corrosion prevention, inspection and assess-ment, as well as electrical current interference. “We can design the cathodic protection system, procure all the necessary parts and install it,” Senn says.

Cathodic protection, which is an electrical means of supplementing the shield of a coating, is the core of Corrpro’s integrity management process, Kroon says. Cathodic pro-tection is a proven technology that applies to all buried and submerged metallic structures, including those embedded in concrete.

“If you think of a coating as an imperfect barrier, cathodic protec-tion supplements this protection by reducing corrosion on the ex-posed metal with small amounts of DC current,” he says. “It goes back hundreds of years. It was first used on ships, and it’s used in your home in the water heater. These same scientific and engineering principles are applicable to oil and gas pipelines.”

In addition to cathodic protec-tion systems, Corrpro also designs

and installs systems that protect pipelines from electrical interfer-ence currents that could affect the integrity of an asset, Kroon says. Electrical interference often stems from other nearby cathodic protection systems, high voltage overhead transmission lines, DC transit systems and naturally oc-curring geomagnetic currents in the soil.

“We detect those problems and design systems to protect pipe-lines,” he says. “AC interference is a growing problem because of oil and gas pipelines being collocated on overhead AC transmission line rights- of way. Pipeline companies often want to build on existing AC rights of way, and recently the opposite has been true, with AC transmission lines being built on existing oil and gas pipeline rights of way.”

Corrpro models proposed systems to define the extent of AC interfer-ence and then designs mitigation systems to protect both the pipeline and people that might come in con-tact with the pipeline.

Developing these robust pipeline integrity programs begins early for Corrpro’s engineers.

“We’re really involved with a pipe-line project from the beginning, from site survey through construc-


Greta senn joined corrpro in May 2012. As vice president of energy and mining, she manages the company’s pipeline business around the world.

tion,” Kroon says. “It’s very important to have a system in place for monitoring pipeline protection systems and maintaining them into the future.”

The definition of pipeline integrity varies through-out the industry, depending on individual perspectives, Kroon says. In fact, the notion is all-encompassing.

“It’s an interesting concept, and depending on who you talk to, they’ll define it slightly differently,” he says. “It’s really everything from properly designing the pipeline, to inspection during construction, to do-ing regular inspections for making sure protective coating and cathodic protection systems are func-tioning properly, to detecting areas requiring adjust-ment to the protection systems, to pipeline rehabili-tation. . A successful program consists of evaluating the condition of the coating, maintaining the integ-rity of cathodic protection, making sure to adjust for soil conditions, controlling interference currents and conducting inspections to make sure the pipeline is safe to operate. Companies now have well established programs.”

Soil conditions have a dramatic effect on a pipeline integrity program and dictate more site specific con-siderations for how to mitigate potential problems, Kroon adds. While current integrity programs tend to be generally applied across a pipeline system, he believes the future will bring more significant soil surveys prior to construction to determine geological conditions and to adjust corrosion prevention pro-grams accordingly.

Fixing ProblemsDirect assessment practices for evaluating pipeline in-

tegrity identify locations of high risk for metal loss on a pipeline. Once high risk locations are identified, the pipeline is dug up for direct examination. , Kroon says. Corrpro helps pipeline operators by identifying the high risk locations and inspecting the pipeline coating, taking measurements, evaluating cathodic protection, inspecting the metal surface and otherwise helping with the physical examination of the pipe. In the process, the company de-termines the extent and nature of any detected corrosion and provides an overall assessment of pipeline condition.

While Corrpro offers solutions for pipeline rehabilita-tion and adjusting cathodic protection currents in the field, Kroon says the company’s strong-suit is providing regular pipeline inspections to determine areas where ca-thodic protection is not operating correctly, where coat-ings are deficient, where electrical interference is a prob-lem and generally assessing the condition of the corrosion protection systems.

Future ProofThe increase in oil and gas production from shale plays

and ongoing development of infrastructure to carry prod-ucts from the Canadian oil sands has had a positive effect on Corrpro’s business, Kroon says. But as more pipelines are being built, the need arises for more and more people to construct and maintain these systems.

“In western Canada, we and all service companies are coming up short of man power,” he says. “There is a real shortage of people to perform pipeline related activities.”

Kroon sees an increased need to recruit and train engi-neers and technicians for the future of assuring pipeline integrity. Maintaining pipeline integrity is “a matter of diligently applying the inspection and maintenance tech-niques we have today,” he says, “adding to that the de-velopment of new technologies and integrity tools while attracting, training and retaining qualified personnel in the industry.”

“In the future, the industry will begin to develop the technologies to examine the things we don’t currently do well,” Kroon says. “The challenge is how can we better detect corrosion? By focusing on research and develop-ment, the industry will create new processes and proce-dures. Akin to that, though, is the need to train more professionals and technical staff. We need more people who understand pipeline corrosion and integrity. While we recognize the issue in United States and Canada with the shortage of technical hands, it’s an issue internation-ally as well. We have a global shortage of experienced, well qualified people.”

Despite the concern of labor shortages in the industry, Kroon sees good fortune ahead. The elevation of pipeline integrity concerns in the United States and Canada pro-vides sure footing for Corrpro’s business for future years.

“We’re in the fortunate position where our markets are growing,” Kroon says. “A lot of companies can’t say that, but we’re fortunate we can.”

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


In my 35 plus years of working with metal cutting applications around the world, I have to admit that the toughest field conditions

for both workers and equipment have always been in the oil and gas pipeline construction industry.

While most of my tenure has been spent reviewing and advising users of flat plate cutting applica-tions inside shops, the last 10 or so years I have seen demand from the field pulling much more metal cut-ting expertise into pipeline, as well as structural steel shape cutting applications. Furthermore, while much of pipeline job components are produced in a shop, this indus-try has demanded better field cut-ting technology to support the nec-essary cutting, weld prep beveling and repair needs for pipeline instal-

lations and long-term maintenance of these crucial oil and gas delivery systems.

Back in the fabrication facilities for large pipeline systems, it is quite common to see large Computer Nu-meric Controlled (CNC) pipe cutting and fabrication machines that can precisely cut weld prep bevels effec-tively, making field work faster and easier. The equipment used in these cutting and beveling applications has advanced dramatically in the last 15 years or so, taking full advantage of advanced design, production and control software, as well as equipment that can produce pipe sections that are ready for fit-up and welding in far less time than in the past.

Much of this automated equipment employs the latest plasma cutting technology, including high definition

plasma (e.g., the Hypertherm HPRXD plasma systems), which cuts faster, cleaner and more accurately than ever before, while leaving a metallurgical-ly ready-to-weld edge on the critical ends of the pipe.

This plasma cutting technology was first developed for the steel plate cut-ting industry, where it was used for weld-prep beveling steel plates for shipyard and other applications. This technology, which includes special torch and consumable designs for cut-ting as many as three separate bevels on an edge (often called a “K” bevel) was relatively easy to adapt for pipe and structural steel cutting and cop-ing machines. Ultimately, this tech-nology produces better quality pipe sections, at a faster pace and with lower production costs than earlier systems used in the industry.


A Cut in the FieldPlasma Cutting Equipment for Pipeline Construction and Maintenance

By Jim Colt

With plasma cutting systems, there has always been the “other side” of the process that is differ-ent, yet uses similar technology as compared to the high technology mechanized plasma systems used in the shop for plate, pipe and structur-al cutting applications. Hypertherm manufactures a line of air plasma cutting systems that are primarily designed to use regular compressed air as the cutting gas.

Twenty or more years ago, a 100-amp air plasma system would weigh about 500 lbs and would efficiently cut up to about ½-in. at produc-tive cut speeds. These systems were heavy, expensive and not as reliable as today’s plasma systems. The latest model 105-amp air plasma system, such as Hypertherm’s Powermax105, weighs less than 100 lbs and can cut 1 ½-in. steel fast and clean, while serving as a reliable portable cutting tool for field use. These machines have plug-and-play connectors to make them interface easily for mech-anized use, as well as quick discon-nect torches for easy switch out from hand cutting or gouging to a ma-chine torch. This new metal cutting

technology can play a role in those pipeline applications required after the pipe arrive in the field.

Pipeline fabrication and long-term pipeline maintenance must occur un-der tough field conditions. By nature there is some rework and fit-up that will always be required when laying pipelines. One such need that has al-ways required a lot of manual labor is when the need arises for a custom length of pipe to be cut — a method of weld prep beveling that could chal-lenge the accuracy of the cuts made at the shop. Typically, this type of preci-sion cutting in the field has been done using the oxygen-acetylene process with the following steps:

1. Grinding off the pipe coating us-ing hand operated wire brushes or grinders, or by burning the coating off using a flame from a large oxy-gen acetylene torch.

2. Once the coating is burned back adequately (usually 2 to 4 in.), a mechanized pipe cutting machine with an oxygen-acetylene torch is installed on the pipe section square to the pipe and then set up to cut at the correct length on the pipe.

3. Next, the pipe cutting apparatus is moved, the torch set at the ap-propriate bevel angle required for welding and another cut is made.

4. Subsequent grinding by hand and fit-up is often necessary once the pipe section is in place to weld to the next section.

5. If this cutoff is part of a transition — when the nominal diameter pipe must pass under a highway or river bed, often the wall thickness must be heavier — then a third undercut bevel must be made on the inside diameter of the pipe as well.

6. Further complication and time is re-quired when this type of three-bev-el cut must be done on an induc-tion bend section of pipe, generally requiring some manual cutting as opposed to using the standard pipe cutting machine.

The above procedures can gen-erally (with a four man crew) pro-duce two cuts per shift. It is a time-consuming job that requires a high amount of manual labor. Further-more, the hand grinding and burn-ing of the pipe coating, as well as


handling of the high-pressure oxy-gen and flammable acetylene gases, all create safety issues on the jobsite.

In the portable plasma cutting side of the plasma industry, demand has steered the major manufacturers to produce more powerful hand cut-ting plasma systems that are both portable and more reliable than ever before. Using the latest inverter based technology, today’s air plasma systems, such as Hypertherm’s Pow-ermax 65, Powermax 85 and Pow-

ermax 105 systems, can be lifted in and out of a truck or trailer by one man, and can operate from portable power generators with ease. One of the best things is that, unlike the oxygen-acetylene cutting torches, plasma simply uses electricity and compressed air at relatively low flow rates to provide very accurate cuts at speeds four to six times faster than an oxygen-acetylene torch. The plasma system can either use a hand torch or a machine-mounted torch, and also

has the ability to do plasma arc goug-ing (often used to repair defective welds or cracks in a pipe).

To add to the portability and safe-ty of this plasma cutting technol-ogy for remote field use, at least one other company that provides equip-ment and expertise for pipeline ap-plications, Barracuda, has developed a portable, diesel fueled combination generator and compressor that houses a Hypertherm air plasma system that is designed exclusively for this appli-cation. Barracuda also supplies some custom automated field pipe cutting equipment that can bevel and cut straight pipe sections or induction bends, all with less setup time as is re-quired by conventional machines.

So let’s take a look at the process of custom bevel cutting for fit-up in the field, but this time using an air plasma cutting system:

1. Grinding off the pipe coating us-ing hand operated wire brushes or grinders, or by burning the coat-ing off using a flame from a large oxygen acetylene torch. — This step is eliminated with the plasma pro-cess. Plasma will transfer a cut right through the pipe coating, and will only burn back coating about a quarter-inch for easy rework.

2. Once the coating is burned back adequately (usually 2 to 4 in.), a mechanized pipe cutting machine with an oxygen-acetylene torch is installed on the pipe section square to the pipe and then set up to cut at the correct length on the pipe. — This step remains the same, except that using the air plasma torch in-stead of oxygen-acetylene will cre-ate about three to five times faster cutting speeds and a cleaner, dross-free cut with no flammable or high-pressure gases required.

3. Next, the pipe cutting apparatus is moved, the torch set at the ap-propriate bevel angle required for welding and another cut is made. — This process remains the same.

4. Subsequent grinding by hand and fit-up is often necessary once the pipe section is in place to weld to the next section. — This step is deleted, as typically the plasma will produce an accurate, ready-to-weld bevel.

5. If this cutoff is part of a transition — when the nominal diameter pipe must pass under a highway or river bed, often the wall thickness


Plasma cutting systems were first developed for cutting plate steel, but offer an alternative to other processes, such as oxygen-acetylene, for cutting and beveling pipe sections in the shop and in the field.

must be heavier — then a third undercut bevel must be made on the inside diameter of the pipe as well. — This process is done with the plasma as well, at much high-er speeds and more safely.

6. Further complication and time is required when this type of three-bevel cut must be done on an induction bend section of pipe, generally requiring some manual cutting as opposed to using the standard pipe cutting machine. — Using the air plasma with the new technology pipe cutter from Barracuda saves a significant amount of setup time when cut-ting transitions and induction bends.

Typically, using an 85-amp air plas-ma system such as the Hypertherm Powermax85 and the Barracuda pipe cutting attachment three to four in-duction bend bevel cuts can be done in a day by a four-man crew. This rep-resents a 50 to 100 percent improve-ment in productivity in the field, while improving safety accuracy and minimizing secondary operations at the same time.

Another capability of these air plasma systems is with plasma arc gouging. In most pipeline instal-lations when weld faults or cracks are detected, the area of the crack is clearly marked out and a worker comes to the location with a large propane torch, burning back the pipe coating. Then an engine pow-ered welder of at least 600 amps is brought to the location and the crack is carbon arc gouged (carefully to not fully penetrate the pipe wall), then ground out (to remove impuri-ties) with hand grinders before being inspected carefully and then reweld-ed. Similar operations are used on pipelines that have been inspected after periods of use when cracks are detected.

By using the air plasma system, the first step of burning back the coating is eliminated, as the plasma will at-tach its arc right through the coat-ing. The plasma gouging arc, operat-ing at between 65 and 105 amps is fast, yet the depth is easily control-lable by the operator, minimizing the chance of burn through of the pipe wall. After gouging, generally

the gouged area is ready for reweld-ing without secondary grinding.

The plasma process speeds up this process and can eliminate eye injuries from grinding, as well as eliminating the need for flamma-ble gases for burning back the coat-ing. The process provides a signifi-cant improvement in productivity and is easier on the worker than oxygen-acetylene, as it reduces ul-traviolet glare when the amperage of the two processes are compared.

The use of plasma cutting systems in the shop and in the field to build and install modern, high-technology pipelines will continue to expand. As the oil and gas pipeline industry con-tinues to grow in North America, it is important for contractors to take no-tice of better ways to improve safety, productivity and quality, and if you can do that by also lowering produc-tion costs, it will be a winning situa-tion for all involved.

Jim Colt is application technologies manager for Hypertherm Inc., based in Hanover, N.H., with offices in the Neth-erlands and Germany.


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Go into any local nursing home and you will most likely find there in the lounge four wom-

en sitting at a card table playing one of several games, possibly a game of bridge. Now everyone knows not to bother these ladies, because they take their game very seriously. As they play day after day, they form a social clique keeping most out of their social circle. Then one day, without notice, one of them goes missing. The game comes to a grinding halt until they can find the next replacement that meets their social requirements. In the meantime, the game has stopped. If these ladies had only planned ahead to find alter-natives and developed future players, then their game would never come to a screeching halt.

How does this example relate to the business world of hiring and training? If you don’t plan and set a strategy to bring in new hires and train them on all the various nuanc-es and inter-workings of your com-pany the business flow could come to a stop. This may actually be hap-pening before many companies real-ize it due to the current status of the workforce.

Our society has been defined by the baby boomers, and the whole world is facing the same issues related to that generation. Baby boomers are those born between 1946 and 1964 and to-tal almost 79 million people or a lit-tle more than 26 percent of the U.S. population. Although the baby boom-ers have already started to turn 60, since 2006 the trend is only accelerat-ing. The median year of baby boomer births was 1954, which means in 2014 a lot more of them will turn 60.

What does this mean to the corpo-rate world workforce? Has your com-pany even considered these facts? How will the oil, gas and chemical industries be affected? At this time the average age of employees with major oil companies and service companies is 59 to 62 years old. The average re-tirement age for the oil and gas in-dustry is 59. Thus a large number of employees will be retiring in the very near future.

“As aging baby boomers begin retiring, the effects on the overall economy

and on certain occupations and industries will be

substantial, creating a need for younger workers to

fill the vacated jobs, many of which require relatively

high levels of skill.”Arlene Dohm, Economist,

Office of Employment Projections, Bureau of Labor Statistics

It has become a numbers game. The various generations coming after the baby boomers do not have the same power in numbers. Fortunately for the oil and gas industry, there has been a renewed interest at the university level to study in the engineering field as a profession, with degrees that would be appropriate for the oil and gas industry. This is a positive direction, but the num-bers of individuals interested in this pro-fession are not like they once were.

If the numbers of new hires look-ing for employment in the oil and gas industry are smaller today, how is your company going to compete for the best of the best in the field? Tak-ing into consideration the new shale plays, there is development of new sources of oil and gas in various areas of the United States never known for having these resources. Finding lo-cal experienced employees creates a new employment challenge in many remote areas of the country. In most cases, a company must hire and train a younger person with limited ex-posure to the oil and gas industry. A new employment problem arises, as most of the new hires to support this new production come very inexperi-enced and require immediate training to give them the knowledge to make these new operations successful.

Are the oil and gas companies thinking of the future brainpower and

expertise loss and how it will affect their future corporate infrastructure? Remember a company is made up of people not computers and machinery. Many of the hands-on, hard-earned field experiences that took years to acquire may get lost in the transition of the outgoing to the incoming staff. Studies have stated that it can take up to 10 years for a new hire to become a fully qualified operator in the oil and gas field. Has the industry taken into consideration the time gap of stop and start functioning again into con-sideration? Will your greatest assets be retiring before they have time to mentor the new hires and show them the proper knowledge to continue the business? With technology changes and new business opportunities, are your near term retirees even qualified to train the new hires today?

Filling the Experience GapThere is an old saying “bad data in

causes bad data out.” If your current staff has not had the proper profession-al training, then what they have been doing all these years may be wrong in the first place and can you risk these bad habits to be passed along? The cur-rent message of how to do the job may overshadow why you do it.

Answering the question “why?” and gaining a full understanding of a project’s outcome may hold the key to what affects a company’s financial bottom line.

All of these are very challenging questions and issues that every com-pany needs to begin to ask to contin-ue being an ongoing viable entity.

How can this knowledge and expe-rience gap be filled with so much to know in so little time? One solution that allows companies to overcome this hurdle is to develop training pro-grams to help their employees stay at the top of their game. It is important that all companies devise a plan and program to train their employees but that does not mean they must de-velop such programs on their own. Many larger companies may have ex-cess resources but the time, expertise required and effort may not be a wise


ChAllEngEs for thE futurE Training in the Oil, Gas and Chemical Industry

By Sarah Desborough and Jane Williams

use of time and talent. It is a fact that many people are very qualified at do-ing their jobs but when it comes to ef-fective teaching and/or training, they fall short.

Fortunately, in the oil and gas in-dustry, there are several training firms offering services as a valuable resource to help with internal training devel-opment, hosting a course on site, on-line training and holding courses at qualified training facilities.

These training firms can become a valuable and cost-effective outsource solution. For those who need to out-source, aligning with the right training provider is a very important decision to make. Using the right parameters to evaluate the right training provider should become the starting point.

What are the right parameters and how does one evaluate to compare apples to apples? When reviewing and assessing the various training courses that are currently offered, there are several suggested factors that need to be evaluated before putting your dol-lars on the table:

1. What long-term strategy is in place within the organization and what qualifications are required by the staff to implement the strategy?

2. Discerning the required qualifica-tions needed, what staff within the organization will have involve-ment, influence and decision mak-ing capabilities that may affect the new strategy?

As mentioned earlier, the labor force is shifting and there is a rising need to hire a fresh, younger workforce. These individuals will need to be trained not only on corporate standards and safety issues, but also on the nuances and in-tricacies of the oil and gas field tech-niques. There is a need for expanded knowledge not just in the field but also back in the office where the accoun-tants and management teams evalu-ate the various processes and numbers. This group needs to know if the field is doing the job and reporting data correctly. So who needs to be trained? Everyone needs to be trained so the ac-curacy rate is improved which in turn improves the financial bottom line.

Once the recognition of the quali-fications and staff that need to be trained has been assessed, it now comes down to selecting the right training programs/courses and train-ing firm to meet the corporate goals. Comparing the myriad of industry

training programs with so many po-tential players in the field today can become a daunting task.

Here are some suggested factors to consider when making the selection:

1. Look at the level of expertise both technical and operational of the trainer and their background of knowledge.

2. Check on the training company’s involvement and its support to industry associations and level of their commitment to these associa-tions.

3. Review the potential training com-pany on how they lead in the in-dustry to build a better marketplace for the overall oil and gas industry.

4. Analyze how flexible the training programs are, and can they offer custom tailored programs to your needs.

5. What do their customers say about them and the references, how do they compare to others in the field?

Specialized training today has be-come ever more important as an in-vestment in one’s corporate work-force. It is a fact that well trained employees feel more valued because their employer has made an invest-ment in their future. So it is not just about hiring, it’s also about retaining employees for the long term. Again many companies find the employees know how to do their work but never fully understand the reason they do it that way and how it affects the corpo-rate financial bottom-line. Sometimes this lack of knowledge can cause a very costly mistakes or financial cor-rections.

Choosing the Right ProgramHow do you evaluate one training

program and company over another? Is it by price, quality, value or a com-bination of all three? The key is to put value and quality to the right price point so you know you are getting the right product for the right price.

There are several key players in the field of oil and gas training with some being more highly qualified than oth-ers. When one does the necessary proper research this field narrows to just a few that have all the key factors to help you make your decision with confidence and not just a dollar price tag. It is extremely important that the trainer can convey their complex knowledge in an understandable way.

How many of us have put money on the table and not received the value’s worth long term? What is better, saving a few dollars or gaining great knowledge and expertise for long-term gain?

That leads to the issue of the return on investment (ROI) question. How does one put into place a measuring tool or process to evaluate the lessons learned and applied toward the com-pany’s investment? Every company is going to have to build its own metrics but to help with the basics here are a few suggestions to use in setting your company’s evaluation:

1. The use of a testing process at end of the course.

2. Ask for the testing results and what other tools are suggested by the trainer to help the individuals gain the full knowledge.

3. Create an exercise using some of the key skills learned in the course and apply back into the field to see if the individual was able to retain the information learned and apply the newly learned material.

4. Consider the value of follow-up testing within a six-month period after the initial training.

5. Monitor the individuals during a select period after the training pro-gram to evaluate the retention of knowledge.

All of these are viable ways to cap-ture the ROI on the training and learning process. When you select an outside resource to assist with a train-ing program one should also ask if they can help with the follow up and long term evaluation process to moni-tor success.

So yes, there are many training programs and firms available. The question to be asked is, do you know how to select the right firm for your company’s teams development and future? Remember don’t let just a low price tag make a very important cor-porate decision. It is all about value and quality at the right price and for long-term gains. Like the four ladies sitting around the game table, have you prepared for the future to keep the game going? Selecting the right train-ing provider can be a game changer.

Sarah Desborough is a marketing con-sultant and Jane Williams, P.E., is a part-ner at Energy Training Solutions, based in Kingwood, Texas.


Treasure hunters, truth seekers and even scientists have searched for the secret to changing base metals into gold and silver since antiquity. Over the centuries, these alchemists never quite discovered the combination of elements and processes that lead to the philosopher’s stone.

But today, there is a profession that has figured out how to squeeze gold from iron. Every day its practitioners help their companies gain efficiency, save money and make more money, all from their equipment. They are professional asset managers, and sor-cery has nothing to do with how they help companies succeed and thrive.

The profession itself has come a long way since equipment manage-ment fell to the shop technician. The people who do the job today have come by their experience, exper-tise, knowledge and skills honestly,

both from on the job experience and through advanced coursework. Along the way, they’ve become experts in a range of interrelated areas that impact the bottom lines of all kinds of busi-nesses, especially those that use ma-chines to get the job done.

From Shop to Front oFFice

In the early ages of asset manage-ment, it was the shop technician or the shop foreman who tried to get more value out of his company’s equipment. They knew how to keep it in tip-top shape and did a great job of it, but as the business changed, they needed to know and manage more.

As fleet managers, they drew from their on-the-job experience to make equipment recommendations to com-panies’ leadership teams. They were

responsible for every piece of equip-ment the company owned, for mak-ing sure each was properly maintained to avoid breakdowns or unnecessary downtime and for ensuring equip-ment was used to its full potential on every job. They also were responsible for replacing specific machines at the best possible time to maximize value for their companies. And, like the early alchemists who created a frame-work of theory, terminology and tech-niques of the scientific method used today, these fleet managers developed the foundation for professional asset management.

Asset-based businesses progressed even further, and the fleet managers became professional asset managers. This part of the evolution has been stratospheric. Where once they needed to keep multiple pieces of equipment up to par and deploy them to multiple


Gold from IronProfessional Asset Managers Turn Fleets into Powerful Profit Centers

By Stan orr

jobsites, as asset managers they now need to combine all the elements that impact efficiency into decisions that af-fect a company’s profitability. In short, they need to turn what has often been viewed as overhead in a company’s debit column into a profit center.

To do it well, professional asset man-agers have likely completed advanced study in a variety of disciplines, from finance to information systems to customer service. Often they have ob-tained that additional training through the Association of Equipment Manage-ment Professionals (AEMP), which of-fers multiple educational opportuni-ties for asset managers, both online and in face-to-face seminar situations. And, in many cases, they have taken it a step further by taking the Certified Equipment Manager (CEM) exam.

The position continues to evolve in positive, profitable ways as companies grasp the value of the profession. Asset managers are now becoming what more accurately can be called fleet executives. These leaders are involved at a high level in their companies because they contrib-ute a breadth and depth of knowledge and expertise in interrelated areas to the company’s decision-making processes.

Today’s fleet executives see the big picture. When one element of equip-ment usage and profitability changes, they can adjust the others according-ly. More importantly, they can antici-pate when one element will impact another and make adjustments within the optimal timeframe. In the process, they save their companies thousands, and sometimes hundreds of thou-sands of dollars, every year.

Unfortunately, many companies have not yet grasped the value — and the high return on investment — of hiring an asset manager, let alone a fleet executive.

An Art And A Science

Even in increasingly complex op-erating and economic environments, leaders of many “traditional” com-panies still see a fleet only as a neces-sary evil. On the other hand, modern, evolving companies see that same fleet as a profit center, a means for both saving money and making more. Those companies rely on their profes-sional asset managers not only to di-rect, deploy and maintain their fleets,

but also to maximize their usage to make the businesses more profitable.

Professional asset managers have the expertise, experience and knowledge to fully comprehend how equipment can be optimized to add more value to the balance sheet. They are analytical, financially astute and mechanically in-clined. They can solve problems, assess risk and speak truth to company lead-ers like the CFO, COO and CEO. And they are driven by an uncompromising dedication to efficiency.

Asset managers are involved in ev-erything from procurement to bench-marking, evaluating life-cycle costs to purchasing technological tools, parts management to safety assurance. They ensure equipment is maintained and safe, that the right equipment is on the right job at the right time, and monitor equipment from hour to hour or even minute to minute so each piece is operating at peak capac-ity and in perfect harmony with all other equipment on a particular job.

They determine the ideal time for buying or selling a piece of equipment or determine whether it would be better for the company to rent or lease, instead. They can


help a company land more work in its core areas of expertise and make new projects possible. They do it by evaluating the equipment needed for a project, determining whether the company already has it and if it will be available during a project’s timeline.

They’re techies, too. Asset manag-ers use advanced technologies to col-lect, interpret and apply data to both equipment usage and high-level plan-ning. They are able to evaluate the complexities of fleet optimization in ways that bring clarity to decision-making. More than that, they provide the information and insights that leadership teams need to make deci-sions that increase profitability.

No other employee group brings the same breadth of understanding across

disciplines. And because of that, good asset managers pay for themselves again and again.

cASe in pointThe experience of John Rothweiler

of CH2M HILL Equipment illustrates the complexity equipment managers face every day. His company is a sub-sidiary of Denver-based CH2M HILL, an AEMP member that provides full-service engineering, environmental, construction and operations services for municipal, state, federal and pri-vate-sector clients across the United States and internationally.

Rothweiler, a certified equipment manager, helps oversee the company’s largest fleet of assets throughout Alas-ka, with the majority of the fleet on the North Slope where CH2M HILL

provides support services to oil and gas companies for drilling and well work, moving rigs down the road, handling liquids, removing waste and so on. To do it all, CH2M HILL coordi-nates interrelated equipment utiliza-tion and deployment considerations on a daily, even hourly, basis.

He says multiple factors impact the company’s operations and the deci-sions the staff members need to make for CH2M HILL’s equipment. Those factors include the price of oil, per-mitting, development regulations that govern what equipment that can be used on a project, and how much budget is available for repairing, re-building or replacing equipment.

“All of these issues can delay the development of the resource and the utilization of the equipment needed to support it,” Rothweiler said. “In the past, we have seen big swings in an oilfield due to the price of oil, with expensive, hard-to-replace equipment sitting idle for long periods of time. The other issue is that, when this happens, the bottom falls out of the surplus market for this type of equip-ment. That complicates the manage-ment of the fleet even further.”

To gain a better understanding of the interrelated challenges that greet the CH2M HILL staff on the North Slope every morning when they go to work, consider the following example.


ch2m Alaska energy & chemicals lays a mat road for a crane move on Alaska’s north Slope, where the company provides support services to oil and gas companies for drilling and well work.

ch2m Alaska energy & chemicals moves a manitowoc crane on the north Slope in Alaska, where it is used to support oil and gas operations.

A new client needs four 325-barrel vacuum trailers and four tractors for a period of two drilling seasons. The current fleet cannot support the ad-ditional work, so Rothweiler must decide the best way to acquire the ad-ditional trailers and tractors.

The tractor-trailer units cost around $800,000 each new, which would be a capital outlay of more than $3.2 mil-lion. Trying to make these units stand alone would not be competitive, so he has to consider what is in the cur-rent fleet. The company already has 40 of these units, so he can use the new units to help with the company’s life-cycle replacement plan for exist-ing vacuum trailers.

If the life-cycle replacement plan is to replace or rebuild two units each year based on a 20-year life on new units and a 10- to 15-year life on com-plete rebuilds, Rothweiler might take a look at the units that are currently costing the most to maintain. He may decide to perform some major repairs and place those vacuum trailers on less demanding jobs so they can still operate profitably for the two-year pe-riod during which there is additional demand.

Alternatively, he could decide to look at which units could go through a complete rebuild and extend their life for a lesser cost (normally 60 per-cent of new) and reintroduce them into the fleet as like-new units. Do-ing that, combined with buying new units and putting them into high-usage areas, would extend the life-cycle replacement plan at least two additional years and justify the new equipment purchase. In addition, at the end of the two-year period, the company could surplus six units that have reached their useful life and get back on track with its original life-cy-cle replacement plan.

“Purchasing should be based on to-tal machine cost over the life of the equipment,” said Rothweiler. “It in-cludes capital cost, operating cost, maintenance cost, major repair cost and what you can expect to recover when you sell the unit. Only by fac-toring in all of those can you make the right decision.”

the Future oF equipment mAnAgement

As CH2M HILL and thousands of other companies across the globe will attest, much is at stake when it comes

to a company’s fleet. Proper care and use can add thousands or even mil-lions to a P&L, depending on the company’s size. But improper man-agement can take those same dollars away in a hurry.

The tighter the ship is run, with data-driven decision-making and best practices applied consistently across the board, the more likely the com-pany will be to thrive. Asset managers have the experience, knowledge and understanding of how all elements of profitability are interrelated and im-

pact one another, and because of that they are able to provide valuable ad-vice and guidance.

For a company to move beyond age-old and misguided philosophies for equipment, to turn the “necessary evil” into a profit center and get tan-gible profit out of your iron, it needs a professional asset manager. If you don’t have one, hire one.

Stan orr, cAe, is president and cSo for the Association of equipment man-agement professionals (Aemp).


For many years, mobile software capabilities have been limited by outside factors. For instance, it took a long time for cell phone providers to build out their networks to reach nearly everyone with coverage. And, until the last couple of years, many of the tablets, smartphones and other devices on the market weren’t user friendly or didn’t have the capability to run so-phisticated programs.

Now that data coverage has ex-panded and mobile devices have improved to meet demand, it’s off to the races for software providers to develop business solutions that

can help contractors boost efficien-cy and keep them better connected. This mobile movement has already come a long way in a short period of time, yet there is still much more to come.

GoinG PaPerlessOne of the basic achievements

of the mobility trend has been get-ting field techs off paper-based sys-tems. Rather than handwriting work orders in the field and physically handing the paperwork into the of-fice, the work orders can be filled out and submitted electronically. Through mobile work order submis-

sion, service contractors have expe-rienced many benefits.

For starters, some businesses have drastically reduced administrative time spent re-entering information. Under the previous workflow for entering labor, administrative staff would type in the information from the handwritten work orders that field techs dropped off at the office. Now, through a fully integrated mo-bile solution, a field tech’s labor is automatically updated in the sys-tem after he submits it electroni-cally. The field tech no longer has to make trips to the office to drop off paperwork, and the administra-


Devices imProve soFtware solutions For FielD technicians, contractors By Jim Wenninger

tive staff can spend its time doing more valuable tasks, rather than re-dundant data entry.

By entering labor into the system immediately, businesses can also bill much faster, since they don’t have to wait for work orders to trickle into the office. In fact, many contractors can send out invoices within two days versus two weeks. This helps them maximize cash flow, so they rely less on a line of credit to pay their bills. Additionally, it increases the likelihood of the contractor get-ting paid in a timely manner, since customers are more likely to dispute an invoice if it is received well after the service date.

more BeneFits oF moBility

In addition to faster billing, there are many more advantages that come with mobile solutions. Mobile devices eliminate a lot of unneces-sary trips back to the office, result-ing in more billable time for field techs. And since there is no paper-work to shuffle around the office, records don’t get lost.

Also, mobile devices allow field techs to pull customer history, equipment diagrams, troubleshoot-ing guides and other valuable in-formation in the field to help them do their jobs more effectively. This is especially useful for newer employees, who may not be as fa-miliar with the equipment as the more seasoned ones. In fact, some contractors have used mobile solu-tions as an advantage to recruit the top field techs, because many of the rising stars in the industry are drawn by new technology and are more compelled to join a company that offers to equip them with the latest mobile devices.

Furthermore, mobile solutions may also include asset management functionality to build maintenance agreements specifying the parts and tools needed to perform various repairs. In addition to monitoring inventory, asset management so-lutions help contractors track the equipment that they own and rent. Personnel can view and update ser-vice history, meter readings and a wealth of other information direct-ly from their devices.

a look aheaDPerhaps some of the most exciting

trends in mobility are the up-and-coming ones. A cross-platform so-lution, for instance, is one offering that many contractors are excited to see come to light. For years, service departments were hesitant to make hardware decisions, knowing that whatever devices they purchase to-day will be obsolete in a couple years.

Fortunately, software providers have responded to these concerns by developing applications for An-droid, Apple iOS and Windows oper-ating systems. Some providers even offer multi-platform licenses, so a field tech can run the software on an iPad, Android smartphone and lap-top, while the company only pays for one license. Thanks to this ad-vancement, contractors can receive support for a variety of business- and consumer-grade devices.

Next, contractors are just starting to recognize the possibilities when it comes to document management. Under a paper-based system, when a

field tech is on a job, it is common for him to attach multiple docu-ments, drawings or photos to a work order. Then, if anyone from the or-ganization needs to refer back to the job, all of the related information is in one file. This, too, is possible through mobile solutions, which make it easy for field techs to cap-ture all the useful information from a job. With the camera and a scan-ning app on their mobile devices, they can simply scan documents or take photos, which can quickly be linked to a work order. From there, anyone who views the work order can also click to see other important files relevant to the job. Everything is saved electronically for easy access in the office or in the field.

Because field techs have so much first-hand customer experience, more organizations are starting to use customer relationship manage-ment (CRM) software to capture their knowledge. In turn, software provid-ers are starting to build mobile solu-tions on CRM, allowing field techs to submit electronic quotes. For ex-


The use of mobile technology on the jobsite has improved efficiency for construction contractors. Through a fully integrated mobile solution, a field technician submits data electronically, reducing the need to make trips to the office and eliminating redundant data entry of manual paperwork.

By Jim Wenninger


As technology continues to invade ev-ery aspect of our lives, it’s no surprise that pipeline jobsites provide a ripe territory for construction management solutions. Construction fleet management provider Telogis and software developer Dexter + Chaney provide various solutions for managing projects in the digital age.

Telogis provides a wide range of fleet management solutions that provide locat-ing and telematics for contractors of vari-ous industries, including oil and gas. Geoff Scalf, the company’s director of business development for oil and gas spoke to North American Oil & Gas Pipelines about cloud-based solutions for pipeline jobsites.

Meanwhile, Dexter + Chaney has recent-ly launched its Spectrum Project Manage-ment system, which the company show-cased at the World of Concrete expo in Las Vegas, Feb. 5-8. Marketing director Wayne Newitts explained the benefits of employing technology on the pipeline jobsite.

How can technology/data tools assist contractors and project owners on a pipeline construction jobsite?

scalF: Without a solution such as the Telogis platform, contractors and project owners need to purchase a fleet tracking solution, an asset tracking solution, con-sumer grade navigation products, build custom maps to overlay the location data, and develop or buy multiple mobile ap-plications for user input in the field. While this approach works via brute force, it only provides insight on a reactive, singular or minimal view of the activities in the field.

Telogis’ cloud-based location intel-ligence software platform can improve safety, fuel efficiency, resource alloca-tion, project status reporting and project planning and implementation. The Telogis platform provides the ability to deploy mobile, operational workflow applications with location data, which contractors and project owners gain real-time onsite intel-ligence needed to efficiently manage as-sets and resources.

Telogis delivers driver and vehicle per-formance metrics, asset tracking, mobile workflow applications, custom map lay-ers, navigation and routing and integra-tion with existing internal project tracking applications. With this capability, owners can redeploy crews, route contractors to where crews are, and with the Telogis Supervisor mobile application on smart-phones and tablets, contractors and crews remain locational-aware of each other regardless of the distance.

In addition, owners can ensure their crews are adhering to driver safety poli-cies with in-cab coaching and driver safety scorecards for hard braking, fast accelera-tion, seat belt usage and speeding. With the use of executive dashboards, safety and operational metrics can be tracked and trouble spots easily identified using a simple green-yellow-red color scheme.

How do contractors/project owners use the data collected during a project in field vs. in the office?

scalF: With Telogis mobile and work-flow applications, the data collected in the field is the data shown in real time in the office. This provides immediate metrics for completion, materials required/deliv-ered, vendor payments and pipeline con-tractor billing. Telogis eliminates the need to wait until the crew returns from the field to identify materials and equipment needed for the next day’s work. The data is transmitted immediately, in real time so decisions can be made on the spot.

Additionally, vehicle performance such as engine hours and fuel usage can be tracked. Vehicle maintenance crews can be dispatched to provide any scheduled ser-vice on the equipment or fuel trucks sent to refuel equipment. Maintenance crews and fuel trucks can utilize the Telogis platform’s commercial navigation tool to efficiently get to the equipment’s location.

What kinds of solutions are available to the pipeline contractor that will enhance efficiency on a project?

newitts: For a project to be managed efficiently, many balls need to be kept in the air. These can be divided into three general categories: cost, operations and collaboration. Solutions exist for the man-agement of all three, but the best solu-tions combine them.

When combined, project managers have a complete view of their projects and are equipped to make decisions that lead to overall profitability — of which efficiency is a part. Too often de-cisions are made that save costs at the expense of operational efficiency, or that improve jobsite logistics but are not cost effective — and so on.

Efficient management of work per-formed by one’s own staff or organization will keep a contractor in business. To grow and become a leading firm means taking management one step further. The best contractors find ways to manage the proj-

ect players outside the four walls of their company. Tools to effect cross-company collaboration exist, and as more of the industry embraces cloud computing tech-nology, these tools are growing in number and capability. Unlike off-the-shelf shar-ing solutions, contractors should look for collaboration platforms that provide the rigorous version control required in the management of construction documents. And if the solution provider charges for participation by a contractor’s subs and vendors, it is virtually guaranteed that par-ticipation will be limited at best. Collabo-ration platform should be “free-to-play” for those asked to use them.

What is the cost of implementing a fleet or construction management program? What tools/software/hardware is needed?

newitts: The cost of implementing construction management is a function of how extensive a solution a contractor chooses. As discussed above, they may want basic productivity tools, enterprise software or a complete project collabora-tion and management platform. The rec-ommended approach depends on many things but company size and growth are the key criteria.

As a very loose guideline, contractors who are below $5 million in gross annual revenue would likely find enterprise soft-ware too much for their operation. Using off the shelf software such as Quickbooks and MS Project are good options for these firms until they exceed this thresh-old. Costs for these products are typically well less than $1,000 per user license, and they require minimal training and implementation effort.

Companies who grow larger than $5 million per year will soon find that the complexity of their operations is not sup-ported by generic software, and will need to consider construction-specific enter-prise software. Here the pricing varies more since the sophistication of solutions varies more. As a reasonable bench-mark, however, a price range of $4,000 to $6,000 per user license is typical. The number of licenses needed depends on organizational structure. A typical $20 mil-lion per year pipeline contractor will likely need five to eight licenses.

For a transcript of the interviews be-tween Scalf and Newitts, visit us online at www.napipelines.com.

Construction Software Experts Explain the Benefits of Technology on the Jobsite

MANAGING THE JoB

ample, if a field tech performs an ap-proved maintenance task and also notices another issue that requires repair, he can enter the information into the system for the sales team to see. From there, the project manager can propose a price to the customer to complete the repair. If the new work is approved, the quote automatically rolls into a work order.

Finally, as more contractors im-plement mobile solutions, their customers are starting to demand access to real-time information. They want to be alerted when a field tech reaches the jobsite and when a repair is completed. The best solution to meet this request is a customer-facing portal, which provides a secure website for the customer to view status updates as the field tech arrives on site, fin-ishes his work and captures a sig-nature. From the website, invoices can also be reprinted as needed. Demand for this information has become so strong that some cus-tomers have begun stating in their

maintenance contracts that the contractor will provide access to it.

inteGration is keyKeep in mind that these benefits

are only possible through a fully integrated solution that connects all departments with real-time in-formation. Standalone software does not offer the same streamlined workflow. For instance, some solu-tions may allow field techs to sub-mit work orders electronically but, when they are received in the back office, the labor needs to be re-en-tered into the company’s financial software. Other solutions may only offer batch synchronization, so la-bor that was entered during the day is updated in the system overnight. Although this method does reduce the need to re-enter information, it doesn’t give companies the real-time view of their operations that they desire.

Web-based applications are also available, but these pose problems whenever field techs lose connec-

tivity. If there is no mobile connec-tion on a jobsite, the field tech has no way to save information from the job, and he must hand-write everything. On the other hand, a complete mobile software solution can offer full offline use with store-and-forward functionality that synchronizes information when the field tech enters an area of con-nectivity again.

In just a few years, mobility has seen tremendous growth, but we’re only in the beginning stages. As more contractors adopt mobile technology and devices keep improving, the in-dustry will continue to see advance-ments in functionality. No matter what direction the trend goes next, one thing is for sure. Integrated solu-tions will always be the key to help-ing contractors maximize their orga-nizations’ connectivity in this mobile movement.

Jim Wenninger is the CEo of WennSoft, a field service software provider based in New Berlin, Wis.


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Manufactured by Trenchers and Equipment Inc., Eagle Wheel Trenchers incorporate unsurpassed experience with the latest technology. They are among the most efficient and well balanced wheel trenchers on the market. With all hydrostatic drives, the machines are safe and easy to operate and maintain. Eagle trenching machines are built for heavy-duty operations and provide high production rates in most soil types.

The Eagle 6500 trenches 6 ft deep and 18 to 30 in. wide. The machine operates at 175 hp and weighs 42,000 lbs.

Wheel trenchers provide the fastest method of excavation, providing optimal trenches and spoil production. Trenchers and Equipment Inc. has been involved with the design and manufacture of wheel trenchers for more than 53 years, and the company’s machines are working on jobsites worldwide.

Trenchers and Equipment Inc. introduced the first Eagle Wheel Trencher in 1988, the model 4500. The company now has nine models available for pipeline, utility, cable, footings, irrigation and drainage applications. Eagles are manufactured and warrantied by the manufacturer’s associates Guntert & Zimmerman in Ripon, Calif., which is celebrating 74 years of manufacturing excellence.

For more information, visit www.trenchersandequipment.com.

exPoPiPeline Product

Eagle 6500 Wheel Trenchers

Tesmec USA Inc. features its 1075 Bucket Wheel trencher as “the king of trenchers for the oil and gas pipeline industry.” This particular model provides a heavy-duty bucket design, a two-speed crawler-drive, hydraulic driven flywheel gearboxes and a 335-hp Caterpillar C9 DITA-ATAAC engine.

The 1075 Bucket Wheel trenchers have been busy at work on recent jobs in the Bakken shale and northern United States. It has a maximum digging depth of 8 ft and a maximum digging width of 40 in.

Tesmec customers who own the rugged 1075 Bucket Wheel have been very pleased with its capabilities, production and overall performance in the toughest conditions. The Tesmec 1075 Bucket Wheel will soon be aired on the Discovery Channel’s weather series “Storm Warriors,” depicting the challenge that certain environments provide and the machines our customers depend on to get the job done.

In conjunction with Tesmec’s pride in designing and building the highest quality trenchers, the company also prides itself on the relationships it builds with customers and providing superior service support. Tesmec technicians are on call and ready to arrive on a job at a moment’s notice.

For more information, visit www.tesmec.com.

Tesmec 1075 Bucket Wheel Trencher


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The Trencor Surface Miner transforms a heavy-duty Trencor chain trencher into a high performance excavator that tears, rips, cuts, chews and breaks through rock in a consistent one-pass swath at a controlled grade.

The Trencor Surface Miner package consists of an application-specific boom with a heavy drum studded with carbide teeth. This attachment mounts in place of

the trencher’s traditional boom. The machines design relies on the trencher’s weight and powerful engine to muscle the attachment through the most challenging rocky conditions. A Surface Miner can be fitted to any Trencor trencher: T3, T4, T6 and T7.

It is particularly well suited for certain quarry operations, road construction, building foundation work and mass

rock removal.

The Trencor line has moved production location to West Salem, Ohio, home of American Augers. The crew is proud to now produce the most trusted name in trenching equipment and will continue to offer the highest level of service, parts and support in the industry. Look for the exciting transformations and a new look later this year.

For more information, visit www.trencor.com.

Trencor Surface Miner

The T655 Commander 3 tractor, manufactured by Vermeer, offers an optional trencher or bucket wheel attachment designed for the installation of small-diameter cross-country pipelines and helps increase productivity in soft soils.

The Tier 3 John Deere 6090 HF diesel engine provides 250 hp and the power to dig up to 8 ft deep. The

optional trencher attached provides the ability to cut trenches from 10.5 to 26 in. wide, whereas the bucket wheel attachment cuts trenches from 22 to 28 in. wide. Low-speed, high torque splined headshaft motor improves cutting performance and minimizes chain wear, while the exclusive Vermeer TEC Plus electronic control system monitors real-time machine performance.

In addition to providing better boom visibility, the operator’s platform is equipped with a rollover protective structure (ROPS) for enhanced operator safety.

An optional 8- or 12-ft conveyor, with 24-in. wide belts, allow the operator remove more spoil from the trench and deposit it farther from the machine when using larger boom/cutter combinations.

For more information, visit www.vermeer.com.

Vermeer T655 Commander 3


May 14-15, 2013Hilton Lisle/Naperville

3003 Corporate West DriveLisle, Illinois 60532

Launched in 1993, Trenchless Technology Road Shows are the premier vehicle for learning more about the benefits of trenchless construction and repair. Educational seminars, field demonstrations and exhibitions offer the most up-to-date information to local municipalities, engineers, contractors, and anyone else interested in learning more about these minimally invasive and environmentally friendly construction and repair techniques.

For Exhibitor/Sponsorship Opportunities, contact Kevin [email protected]

To register, go to:

www.trenchlessroadshows.com


Business Cards

YOUR AD HERE!

Contact Ryan Sneltzer 330.315.2114 or

[email protected]

edu.benjaminmedia.com | 330-467-7588

Publisher: HDD Consortium | Softbound/279 pages

Horizontal directional drillingGood Practices Guidelines — 2008 3rd edition

*Selling price Subject to change without notice. Shipping and handling not included.

* Introduction and Backround

* HDD Applications and Processes

* Equipment and Materials

* Design* Bore Planning* Jobsite Safety* Troubleshooting

and Mitigation

The latest version covers everything in the 2004 edition, includes a new chapter on design and sections that are updated to include new developments in technologies.

price:

$169.99*

The latest version covers everything in the

2004 edition, includes a new chapter on

design and sections that are updated to

include new developments in technologies.

Publisher: HDD Consortium | Softbound/279 pages

Horizontal Directional DrillingGood Practices Guidelines — 2008 3rd Edition

*Selling price Subject to change without notice. Shipping and handling not included.

* Introduction and Backround * HDD Applications and Processes * Equipment and Materials * Design * Bore Planning * Jobsite Safety * Troubleshooting and Mitigation

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

price: $169.99*


North American Oil & Gas Pipelines Calendar

Advertiser ........................................... Website ...................................................... Page

Alpine Equipment Corp ....................... www.alpinecutters.com ...................................16

BMI Resource Center .......................... edu.benjaminmedia.com ................................45

Canusa ................................................ www.canusa.com ............................................11

Corrpro ................................................ www.corrpro.com ............................................13

Darby Equipment Company ............... www.darbyequip.com .......................................7

Enviro-Span ......................................... www.enviro-span.com .....................................45

E-Z Line Pipe Support Co. .................. www.ezline.com .................................................2

FAE USA Inc. ....................................... www.faeusa.com .............................................23

Flexovit ................................................ www.flexovitabrasives.com ...................Poly bag

Flexovit ................................................ www.flexovitabrasives.com .............................27

Gas & Oil Expo 2013 ........................... www.gasandoilexpo.com ................................25

Girard Industries .................................. www.girardindustries.com ...............................33

Horizontal Technology Inc. .................. www.horizontaltech.com ...................................3

Advertiser ........................................... Website ...................................................... Page

iploca ................................................... www.iploca.com ..............................................19

Laney Directional Drilling..................... www.laneydrilling.com .....................................24

Mattracks ............................................. www.mattracks.com ........................................29

Mesa Products .................................... www.mesaproducts.com ................................45

Pipeline Inspection Company ............. www.picltd.com ...............................................35

Polyguard Products ............................. www.polyguardproducts.com .........................48

PSS Companies .................................. www.psscompanies.com ..................................9

RAYCO Manufacturing Inc. ................. www.raycomfg.com .........................................15

Trenchless Technology Roadshow ...... www.trenchlessroadshow.com........................43

Utica and Marcellus NGL & Gas Markets 2013 ....................... www.utica-marcellus-ngl-markets-2013.com ....... 42

Vermeer ............................................... www.vermeer.com .............................................5

Welded Construction L.P. .................... www.welded.com ............................................17

Advertisers Index

March17-21NacE corrosion 2013Orange County Convention CenterOrlando, Fla.Web: www.nace.org

19-20Shale Gas Development and Water Issues SymposiumAmerican Institute of Professional GeologistsHilton Austin AirportAustin, TexasWeb: www.aipg.org

aprIl2-4Dca Safety congressBellagio Las VegasWeb: www.dcaweb.org

3-5INGaa Foundation Spring MeetingRitz Carlton Amelia IslandAmelia Island, Fla.Web: www.ingaa.org

10-11Marcellus, Utica and point pleasant Shale: Energy Development and Enhancement Symposium American Institute of Professional GeologistsMcKinley Grand HotelCanton, OhioWeb: www.aipg.org

16-17apI pipeline conferenceLoews Coronado Bay HotelCoronado (San Diego), Calif.Web: www.api.org

16-19lNG 17 International conference and Exhibition on liquefied Natural GasGeorge R. Brown Convention CenterHoustonWeb: www.lng17.org

May12-16plca canada annual conventionFairmont Queen ElizabethMontrealWeb: www.pipeline.ca

14-1688th annual School & ExhibitionInternational School of Hydrocarbon Measurement (ISHM)Cox Communications CenterOklahoma CityWeb: www.ishm.info

21-23american Gas association conventionGaylord PalmsOrlando, Fla.Web: www.aga.org

JUNE11-13Gas & Oil Expo North americaStampede ParkCalgary, AlbertaWeb: www.gasandoilexpo.com

22-23North american pipeline SymposiumMarriott Calgary DowntownCalgary, AlbertaWeb: www.CanadianInstitute.com/NAPipeline

26-28Summer leadership Meetingassociation of Oil pipelines (aOpl)Fairmont Banff SpringsBanff, AlbertaWeb: www.aopl.org

JUly17-21Dca Mid-year MeetingPark Hyatt Beaver CreekAvon, Colo.Web: www.dcaweb.org

23-25Oil Sands heavy Oil TechnologiesTelus Convention CenterCalgary, AlbertaWeb: www.oilsanstechnologies.com

aUGUST 9-12appalachian Gas Measurement Short CourseRobert Morris UniversityMoon Township, Pa. Web: http://agmsc.org

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

21-22GeoGatheringGIS for Gathering and production linesColorado Springs, Colo.Web: www.geogathering.com

29-31Tulsa pipeline ExpoTulsa, Okla.Web: www.tulsapipelineexpo.com

SEpTEMbEr23-27IplOca conventionOmni ShorehamWashington, D.C.Web: www.iploca.com

OcTObEr 1-3ICUEEKentucky Exposition CenterLouisville, Ky. Web: www.icuee.com

NOvEMbEr3-5AEM Annual ConferenceHilton Bonnet Creek & Waldorf AstoriaOrlando, Fla.Web: www.aem.org

The evenTs PiPelineConferences, Meetings & Trade Shows

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Welcome | North American Oil & Gas Pipelines · 2014-01-31 · Survival, Resilience and Redemption...

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Transcript of Welcome | North American Oil & Gas Pipelines · 2014-01-31 · Survival, Resilience and Redemption...