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Volume 2 Issue 2 September/October 2009

ON THE COVER: Butch Graham, senior auctioneer at Ritchie Bros.


Auctioneers, has helped oil and gas pipeline professionals buy and sell
equipment for more than two decades. He shows up at industry events all
over the world, helping with fundraising and leading some to call him the
“voice of the oil and gas industry.”

16 A Voice That Sells


Talking with Butch Graham about the oil and gas pipeline industry.
By Bradley Kramer

FEATURES
22 Directional Drilling Tackles Tricky Terrain
One project went through hard rock in Georgia, and the other
crossed a busy harbor in Virginia. Michels Directional Crossing and
Mears Group Inc. drill through the challenges.
28 Delivering Pipelines by Air
Vacuum technology helps improve the safety and operational costs
of lifting pipes on a jobsite. By Leanne Butkovic
32 Finding Approval
A look at how the Federal Energy Regulatory Commission (FERC)
approves infrastructure projects, sets rates and enforces the oil and
gas market. By Bradley Kramer
36 Deconstructing Worksite Hazards
Review the basics of Job Safety Analysis, a simple, inexpensive and
effective management tool that can help reduce worksite hazards.
By George Kennedy

DEPARTMENTS
8 News
12 Project Roundup
14 Market Watch
40 Product Showcase: ROW/Land Clearing
46 Events Calendar

COLUMNS
6 Editor’s Message

MARKETPLACE
45 Business Cards
46 Index of Advertisers
NORTH AMERICAN PIPELINES is published bi-monthly. Copyright 2009, Benjamin Media, Inc., P.O. Box 190, Peninsula, OH 44264. All rights reserved. No part
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Editor’s
Message
Publisher
The Energy to Push Through Bernard P. Krzys

The global economy continues to slowly lift itself from Associate Publisher
this deep downturn, and oil and gas infrastructure projects Robert D. Krzys
have hit the brakes. Or have they?
After strong years of growth from 2006 to 2008, when Editor
natural gas pipeline construction helped fuel the recent James W. Rush
boom years, the industry has cut back on building large-
scale transmission lines, according to Jeff Wright, direc- Associate Editor
tor of energy projects for the Federal Energy Regulatory Bradley Kramer
Commission (FERC). After approving almost 6,000 miles
of pipeline projects in the last three years, the commission Contributing Staff Editors
has approved only 172 miles for 2009. But don’t bother Sharon M. Bueno
running for cover. Keith Gribbins
“The sky is not falling like everybody says,” says Ritchie Bros.’ Butch Graham, Jason Morgan
who assured me when I spoke with him for this issue’s cover story (on page 16) Pam Stask
that pipeline contractors will help pull us out of the recession.
Indeed, Wright says that while the miles of pipeline projects might be down, Creative Director
capacity is increasing as pipeline owners build support infrastructure for the pipe- W. M. Conley
lines and storage facilities.
Many of the projects that were approved in the last few years are still in the Graphic Designers
construction phases, like the two natural gas projects we cover in this issue. Sarah Hayes
Michels Directional Crossing and Mears Group completed two major expansion
Chris Slogar
projects with horizontal directional drilling (see page 22).
Elizabeth C. Stull
Regardless of what happens, the world needs energy, and energy needs infra-
structure. Pipeline projects continue to move forward — albeit at a slower pace
Marketing Manager
than in the past few years — and more projects are waiting in the wings. You can
Kelly Dadich
read about what FERC has in its approval process and other regulatory issues in
“Finding Approval” (on page 32).
Regional Sales Managers
The oil and gas industry is even finding ways to coexist with alternative and
Ryan Sneltzer
renewable energy sources, as Chevron just started building a 29-megawatt solar
Dan Sisko
steam plant at one of its oil fields in Coalinga, Calif. (New York Times, Aug. 24).
The power plant will be used to inject steam into the oil wells to enhance produc-
Circulation Manager
tion.
Alexis R. Tarbet
Forbes magazine put ExxonMobil on its cover as the “Green Company of the
Year” for investing $600 million on developing algae farms to produce automotive
Web & Interactive Manager
gasoline and continuing to boost its natural gas production.
Mark Gorman
How’s that for green?
Despite some slowdowns in the industry, the pipeline industry is resilient.
Conference Manager
We all need energy to push through our challenges and keep business moving.
Michelle Magyar

Editorial & Advertising Offices


1770 Main St., P.O. Box 190
Peninsula, OH 44264 USA
(330) 467-7588 • Fax: (330) 468-2289
www.napipelines.com
Bradley Kramer
e-mail: info@benjaminmedia.com
Associate Editor
bkramer@benjaminmedia.com
Reprints
Wright’s Reprints
Ph: 877-652-5295
Fax: 281-419-5712

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North America
News
Alberta Clipper Pipeline Project Ready to Set Sail
Enbridge to Assist Enbridge Energy Partners With U.S. Alberta Clipper Funding
The 1,000-mile Alberta Clipper Pipeline expansion oil and natural gas infrastructure,” says Terrance McGill,
from Alberta, Canada, to the United States is set to begin president of the partnership’s management company and
construction now that funding is in place. Enbridge Inc. of its general partner.
and Enbridge Energy Partners have concluded a joint fund- “The joint funding arrangement for Alberta Clipper
ing agreement under which Enbridge will effectively fund substantially reduces the equity required to complete
two-thirds of the $1.2 billion U.S. segment of the Alberta the permanent funding for these projects down to a
Clipper crude oil pipeline project. The company expected to level that we can likely accommodate through sale of
begin construction soon after receiving approval from the non-strategic assets, or a traditional private or pub-
U.S. Department of State on Aug. 20.
The Alberta Clipper project consists of a 36-
in. diameter pipeline and associated pump-
ing and terminal facilities from Hardisty,
Alberta, to Superior, Wis. This 1,000-mile
(1,607-km) segment is designed to resolve
expected capacity constraints.
The segment from Hardisty to the U.S.
border is being undertaken by Enbridge
Pipelines Inc., a wholly owned subsidiary
of Enbridge Inc., at an estimated cost of
$2.4 billion CAD. The segment from the
U.S. border to Superior is being undertak-
en by Enbridge Energy Partners through
Enbridge Energy, Limited Partnership.
Both segments are scheduled to be in
service by mid-2010.
The initial capacity of the line will be
450,000 barrels per day of heavy crude,
expandable at very low cost, through the
addition of pumping facilities, to 800,000
barrels per day.
Under the terms of the agreement,
Workers lay welded pipe in a trench in Hardisty, Alberta, where the Alberta Clipper
Enbridge will participate in the debt financ-
Pipeline will continue toward the U.S. market via Superior, Wis.
ing that Enbridge Energy Partners raises for
the project, and will fund two-thirds of the project’s equity lic placement of partnership units,” McGill says. “As a
requirements directly into Enbridge Energy, Limited Part- result, these projects should all be accretive and we will
nership, the subsidiary of Enbridge Energy Partners that is avoid the dilution, which would otherwise result from
constructing the project. a very large equity issue, given current market condi-
Enbridge will be entitled to two-thirds of the earnings tions. At the same time, with Enbridge participating in
and cash flow that Enbridge Energy, Limited Partnership, the debt, which needs to be issued for Alberta Clipper, it
generates from the base project. Enbridge and Enbridge will reduce our call on debt markets and should improve
Energy Partners will each have a right of first refusal on our borrowing rates.
each other’s investment in the project, and Enbridge Energy “Enbridge Energy Partners is now well positioned to
Partners will retain the right to fund up to 100 percent consider new opportunities as they arise,” McGill says.
of any expansion and dilute Enbridge’s interest down “The joint funding for the U.S. segment of Alberta Clip-
correspondingly. The terms of the agreement were reviewed per is a win-win for Enbridge and Enbridge Energy Partners
and approved by a committee of Enbridge Energy Partners’ and our shippers,” says Patrick Daniel, president and chief
independent directors. executive officer of Enbridge Inc. “For shippers, it should
“In addition to Alberta Clipper, Enbridge Energy Part- result in lower tolls because Enbridge Energy Partners’ cost
ners is undertaking a number of very attractive growth op- to finance the debt component of Alberta Clipper should
portunities including the expansion of our North Dakota be reduced.”
system to accommodate increased Bakken shale produc- Daniel also adds: “Based on Enbridge’s current capital
tion, the recently completed Southern Access expansion of plans, we have a substantial cushion of surplus equity to
our crude oil mainline and the Clarity gas pipeline. There fund this investment as well as other opportunities that
are further attractive opportunities in sight for both crude may become available.”

8 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com


Game On: Midcontinent Express Pipeline in the deepwater U.S. Gulf of Mexico under a five-year
Goes in Service contract with Transocean.
Turn on the gas. Construction of the approximately 500- “The Discoverer Clear Leader offers the most-advanced
mile Midcontinent Express Pipeline (MEP) is complete and drilling capabilities in the offshore drilling industry and
natural gas transportation service commenced Aug. 1, on will enable Chevron to expand the search for new domes-
the pipeline from Delhi, La., to Transcontinental Pipe Line’s tic sources of energy,” says George Kirkland, executive vice
Station 85 in Butler, Ala. president of Chevron’s Upstream and Gas division.
Interim service had begun on the pipeline from Ben- Chevron is one of the top lease holders and producers in
nington, Okla., to Delhi in April. MEP is a joint venture the deepwater Gulf of Mexico. The drillship will begin work
of Kinder Morgan Energy Partners LP and Energy Transfer for Chevron at several of its deepwater projects, including
Partners LP. Tahiti and Jack/St. Malo.
“We are delighted that the final leg of the Midcontinent The Discoverer Clear Leader is the first of two new drill-
Express Pipeline is in service,” says Steve Kean, president of ships to be commissioned for Chevron. The second vessel,
Kinder Morgan’s Natural Gas Pipelines group. Kinder Morgan the Discoverer Inspiration, is expected to be delivered in
constructed and will operate the pipeline. early 2010.
“The completion of this final segment of MEP affords The drillship features Transocean’s patented dual-
shippers and producers in the Barnett Shale, Bossier Sands activity drilling technology designed to enable parallel
and other producing regions access to markets in the drilling operations from a single derrick, saving time and
eastern United States,” says Lee Hanse, senior vice president money in deepwater well construction compared with
of Energy Transfer’s Interstate Pipeline group. conventional rigs.
MEP has multiple receipt and delivery points along the
pipeline system, which originates in southeast Oklahoma, Williams Signs $258 Million Deal to Add
crosses northeast Texas, northern Louisiana and central Piceance Basin Properties
Mississippi and ends in Alabama. Capacity is currently up Tulsa, Okla.-based Williams will fork over approximate-
to 1.25 billion cubic feet (Bcf) per day in Zone 1, which ly $258 million to an unnamed private company for the
interconnects with the Columbia Gulf Transmission system purchase of additional properties in the Piceance Valley in
in Delhi and up to 0.84 Bcf per day in Zone 2, which inter- western Colorado, east of the company’s existing assets in
connects with the Transcontinental Gas Pipe Line system the region. The parties expect the transaction to close near
in Butler. the end of the third quarter.
An expansion of the pipeline is expected to be completed The assets, which are geologically similar to other Wil-
in 2010, which will further increase MEP’s capacity to ap- liams assets in the Piceance Valley, could represent an es-
proximately 1.8 Bcf per day in Zone 1 and 1.2 Bcf per day timated 795 billion cubic feet equivalent (Bcfe) of net re-
in Zone 2. The pipeline’s capacity, including expansion, serves. Of the estimated reserves, approximately 150 Bcfe
is fully subscribed with long-term binding commitments are proved.
from creditworthy shippers. In addition, the properties contain exploration upside
from deeper formations and additional potential locations.
Chevron’s Next-Gen Ultra-Deepwater Drillship Not including the new properties, Williams currently owns
Goes Gulfing approximately 190,000 net acres in the Piceance Basin.
There’s a new ship on the Gulf of Mexico. The Discov- The purchase covers 21,800 net acres and includes 28
erer Clear Leader, an ultra-deepwater drillship, newly built wells currently producing 24 million cubic feet equiva-
to Chevron’s specifications, has begun work for Chevron lent per day (MMcfe/d), related gas and water gathering
U.S.A. Inc., a wholly owned subsidiary of Chevron Corp. facilities, 94 approved drilling permits and more than 800
drillable locations at 10-acre spacing.
“We’ve identified an opportunistic bolt-on acquisition
that allows us to quickly add meaningful reserves, produc-
tion, cash flows and earnings per share by leveraging off
of the strength of our low cost structure in the Piceance
Basin,” says Steve Malcolm, chairman, president and chief
executive officer.
“The anticipated production also can be an important
additional supply source for our Northwest Pipeline,”
Malcolm says.
With regard to development, Williams plans to incre-
mentally add drilling rigs to its Piceance operations, with
one additional rig tentatively slated for fourth quarter
2009, followed by one more in 2010 and two more in
2011. Williams is currently running a total of eight rigs in
western Colorado.
Williams plans to fund the $258 million acquisition
Chevron’s Discoverer Clear Leader will be stationed in the deep investment, along with $15 million in projected 2009
waters of the Gulf of Mexico, where it will be drilling at depths up to
development costs and $50 million of the 2010 develop-
40,000 ft.
ment costs, with cash on hand. The company expects to
The state-of-the-art vessel is capable of drilling wells in fund the balance of the 2010 and 2011 capital require-
12,000 ft of water to a total depth of 40,000 ft, surpassing ments largely through the anticipated cash flow from
the limits of previous technology. The ship will be stationed these properties.
napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 9
“The acquisition fits perfectly with our low-risk, high- “We are pleased to have Global Infrastructure Partners
return profile in the Piceance Basin,” says Ralph Hill, join us in the Ruby project,” says Jim Cleary, president of
president of Williams’ exploration and production busi- El Paso’s Western Pipelines. “We continue to make excellent
ness. “This is a rare find. The existing wells in the area progress on Ruby, and we look forward to it being one of
we’re acquiring are very productive, producing a third the key assets in our pipeline franchise.”
more gas than Williams’ existing prolific Piceance Valley Under the terms of the agreement, announced July 27,
wells for a similar cost.” GIP will invest up to $700 million in the project, which
Williams has extensive infrastructure in place in the represents a 50 percent equity interest, in the following
Piceance Basin. In addition to its natural gas drilling three major areas:
activities, the company is in the process of starting up • $405 million in the form of a 7 percent secured
the Willow Creek natural gas processing plant, and also note that will be drawn upon to reimburse one half of
operates the interstate Northwest Pipeline that runs El Paso’s costs to date, as well as to fund one half of the
through the basin. future costs of developing the project. The note will be
exchanged for a convertible preferred equity interest in
DCA’s Kennedy Set to Retire Ruby at the close of construction financing.
DCA executive vice president and chief operating officer • $145 million contributed as a preferred equity
Dennis Kennedy will be retiring from his post, effective interest in the Cheyenne Plains Pipeline that will be
Dec. 31. Robert Darden, most recently executive director of exchanged for a convertible preferred equity interest in
Plano, Texas-based QuEST Forum, has been named by the Ruby at final project completion.
DCA board to the position. • Depending on the amount of external financing
Kennedy has held the position of executive vice president that is raised, GIP could invest up to an additional
and chief operating officer since 1989. He will remain with $150 million as a convertible preferred equity interest
DCA as a consultant. in Ruby.
Darden has more than 25 years of international meet-
ing management and association experience. Before join- The Ruby Pipeline project is a 675-mile, 42-in. interstate
ing QuEST Forum, Darden previously held positions with natural gas pipeline that will access growing sources of sup-
the Young Presidents’ Organization and Spear One Prod- ply from multiple Rockies’ basins and make those supplies
ucts. He graduated from Louisiana State University and available to California, Nevada and the Pacific Northwest
region. Ruby has filed with the Federal Energy Regulatory
Commission (FERC) to have an initial design capacity of up
to 1.5 billion cubic feet (Bcf) per day.
El Paso will be responsible for the construction of the
Ruby Pipeline project and its operations. The Ruby Pipeline
is on schedule and is expected to be completed at or below
its $3 billion budget. Should construction costs come in
under budget, El Paso will retain all benefits. Conversely, El
Paso will absorb any cost overruns.
In January, El Paso filed an application with FERC for
a certificate of public convenience and necessity, under
Section 7(c) of the Natural Gas Act, to construct and
operate the Ruby Pipeline. In June, FERC issued a Draft
Environmental Impact Statement (DEIS), which was con-
sistent with Ruby’s construction plan and schedule. Ruby
anticipates timely issuance of FERC’s Final Environmen-
tal Impact Statement in October.
Assuming FERC approval in the first quarter of 2010, con-
(From left) Dennis Kennedy, DCA president, Shepard Poole and
struction would begin in the second quarter of 2010 with the
Robert Darden.
pipeline completed in time for a March 2011 in-service date.
also attended the Paul M. Herbert Law Center. Darden is a
member of the American Society of Association Executives, Dominion East Ohio Plans Pipeline
Meeting Professionals International and has been qualified Replacement in Akron, Ohio
as a Certified Meeting Planner. Dominion East Ohio began construction in late July
DCA is a primary advocate and organization of con- on a pipeline infrastructure replacement project in South
tractors who are involved in horizontal directional Akron’s W. Thornton Street neighborhood. The company
drilling throughout the United States. Members work in the expects to complete construction by year’s end.
construction, maintenance and rehabilitation of gas dis- The project will replace 21,000 ft, or nearly four miles,
tribution pipeline systems and installation of cable and of main lines in an area centering on W. Thornton Street,
telecommunication systems. with work also scheduled for the following streets: W. Bar-
tges Street, Campbell Street, Raymond Street, Howe Street,
El Paso Corp. Announces Partner for Scheck Street, Russell Avenue, W. Bowery Street, Kiefer
Ruby Pipeline Project Court, Norka Street and Norka Court, Moeller Avenue, Lane
The Ruby Pipeline got another stakeholder after El Paso Street, Schumacher Avenue, Snyder Street, Haynes Street,
Corp. announced it has executed a binding agreement Nathan Street and Rhodes Avenue.
with Global Infrastructure Partners (GIP) whereby GIP will The project is part of the company’s planned 25-year
acquire a 50 percent interest in the Ruby Pipeline project. program to replace 4,100 miles, or nearly 20 percent, of its
10 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com
21,000-mile pipeline system, increasing burg, Russia. The longest leg was 12,300 nautical miles from Qingdao, China,
safety and reliability. The pipeline re- to Rio de Janeiro, Brazil. Some of the other ports the race visited included
placement program could generate $4.4 Cape Town, Singapore, and Stockholm.
billion in total regional economic activi- Late April to mid-May the Volvo Ocean Race made its first ever stop-over in
ty over the next 25 years, creating or sup- Boston. Volvo took the opportunity to host a gathering of contractors to see
porting as many as 3,000 jobs, according the in-port races. Joe Purpura of Midwestern Contractors and his wife Anne
to a study by Kleinhenz & Associates, a took the opportunity to join Volvo at the race. Midwestern Contractors is a
Cleveland development consultant. This gas distribution contractor based in Chicago. Purpura is a past president of the
study also estimates that the pipeline Distributors Contractors Association (DCA).
project would generate an additional From Boston, the Volvo Ocean Race proceeded back to Europe. The winning
$321 million in state and local income team was Ericsson 4. Coming in a close second was the Puma team captained
and sales tax revenues. by American Ken Read. The next Volvo Ocean Race is scheduled to begin Oc-
tober 2011, again from Alicante.
Volvo Ocean Race Attracts
Oil and Gas Contractors
The Volvo Ocean Race is a nine-month
event of 70-ft sailboats that covers over
37,000 nautical miles. The race traverses
some of the world’s most treacherous seas.
It is an exceptional test of sailing prow-
ess and human endeavor, which has been
built on the spirit of great seafarers.

The Puma Ocean Racing team streaks across


Boston Harbor on in-port race day.

Each of these highly engineered sail-


ing marvels has a crew of 11 that requires
their utmost skills, physical endurance
and competitive spirit day and night, as
some legs of the race are more than 30
days at a time.

Joe and Anne Purpura at the reception in the


Volvo Ocean Race Village in Boston.

The 2008-2009 race covered 11 ports


in 11 countries, featuring eight boats.
The race started Oct. 4, 2008, in Alicante,
Spain, and finished June 16 in St. Peters- For more information go to napipelines.com/info

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 11


North American Pipelines Listings

Project Roundup
Contributed by

The following oil and gas pipeline projects have been announced. U.S. Pipeline Inc. has been awarded a contract by Williams-Transco for
Projects are in order of approximate starting date. installation of 1.2 miles of 42-in. pipeline and L&R Asm. piping in Union
County, N.J. Headquarters is Linden, N.J. The superintendent is Eugene
U.S. Pipeline Inc. has been awarded a contract by Boardwalk Pipeline Weber. Approximate start date: July 15.
Partners to install two 1,600 ft horizontal directional drills of 42-in. pipeline in
Bienville Parish, La. The superintendent is Jim Jennings. Approximate start Utility Line Services Inc. has been awarded a contract by East
date: June 16. Resources/NFG to install 18.5 miles of 12-in. pipeline and a compressor
station in Bradford, Lycoming and Tioga counties, Pa. Headquarters is
Blackwell Enterprises Inc. has been awarded a contract by U.S. Pipeline Canton, Pa. The superintendent is Ron Michalkovich. Approximate start
Inc. to hydro-seed approximately 10 miles of 24-in. pipeline right-of-way in date: July 16.
Baton Rouge and Point Coupee Parishes, La. Headquarters is Port Allen, La.
The superintendent is Bob Blackwell. Approximate start date: June 22. Indianhead Pipeline Services has been awarded a contract by Michels
Corp., U.S. Pipeline Inc. and Precision Pipeline LLC for the Enbridge
Pe Ben USA Inc. has been awarded a contract by Snelson Companies Alberta Clipper and Southern Lights Project to manufacture approxi-
Inc. to string 27 miles of 24-in. pipe in Rio Blanco County, Colo. Headquar- mately 17,500 pieces of 36-in. pipeline and 171,000 ft of 20-in. pipeline in
ters is Meeker, Colo. The superintendent is Eric Gregory. Approximate start Kittson, Marshall, Pennington, Red Lake, Mahnomen, Clearwater, Beltrami,
date: June 22. Hubbard, Cass, Itasca, St. Cloud and Carlton counties, Minn. Head-
quarters is Deer River, Minn. The superintendent is Randy Rubenzer.
Welded Construction LP has been awarded a contract by Williams Gas Approximate start date: July 20.
Pipeline/Transco for pipeline investigation on mainline “D” of 42-in. pipeline
in Fairfax County, Va. Headquarters is Manassas, Va. The superintendent is L.A. Pipeline Construction Co. Inc. has been awarded a contract
Joe Carter. Approximate start date: June 22. by Texas Gas Transmission LLC to install new pig traps in Butler and
Warren counties, Ohio. Headquarters is Lebanon, Ohio. The superintendent
Laney Directional Drilling Co. has been awarded a contract by Henkels is Steve Drake. Approximate start date: July 20.
& McCoy Inc. for directional pipeline drilling of 1,749 ft of 42-in. pipeline in
Muskingum County, Ohio. Headquarters is on the jobsite. The superinten- Miller Pipeline Corp. has been awarded a contract by Vectren to
dent is Jimmie Johnson. Approximate start date: July 1. replace 1,900 ft of 16-in. natural gas pipeline in Montgomery County, Ohio.
The superintendent is Wes Bogard. Approximate start date: July 20.
Blackwell Enterprises Inc. has been awarded a contract by Henkels &
McCoy Inc. for right-of-way restoration and maintenance of approximately U.S. Pipeline Inc. has been awarded a contract by Enbridge Energy
60 miles of 42-in. pipeline in Lamar County, Texas. Headquarters is Paris, to install approximately 400 ft of 36-in. pipe torch cuts in Beltrami County,
Texas. The superintendent is Glen Madden. Approximate start date: July 6. Minn. Headquarters is Bemidji, Minn. The superintendent is Jim Jennings.
Approximate start date: July 20.
L.A. Pipeline Construction Co. Inc. has been awarded a contract by
Chesapeake Energy Corp. to install approximately five miles of 16-in. and Snelson Companies Inc. has been awarded a contract by Northwest
4,800 ft of 12-in. pipeline, plus launchers, receivers and valve settings Pipelines GP to install 16-in. and 24-in. piping in Rio Blanco County, Colo.
and additional 16-in. through 6-in. segments pending in Wyalusing, Pa. Headquarters is Meeker, Colo. The superintendent is Mike Swanson.
Headquarters is Wyalusing, Pa. The superintendent is Jeff Waggoner. Approximate start date: July 23.
Approximate start date: July 6.
Dun Transportation & Stringing Inc. has been awarded a contract by
Laney Inc. has been awarded a contract by Sheehan Pipe Line Con- Evraz Inc./Williams Gas to unload and stockpile approximately 80,000 ft of
struction Co. for directional drilling on 50 miles of 30-in. pipeline in Audrain, 30-in. pipe in Lincoln County, Wyo. The superintendent is Johnny Denton.
Montgomery and Lincoln counties, Mo. Headquarters is Troy, Mo. The su- Approximate start date: July 24.
perintendent is Grady Keller. Approximate start date: July 6.
Apex Pipeline Services Inc. has been awarded a contract by Columbia
Snelson Companies Inc. has been awarded a contract by Williams Gas Transmission Inc. for the following: 1) removal and replacement of
Northwest Pipeline to relocate 10,500 ft of 22-in. pipeline in Ada and Can- approximately 400 ft of 20-in. steel pipe in Floyd County, Ky.; headquarters
yon counties, Idaho. The superintendent is Louie Garcia. Approximate start is Dana, Ky.; the superintendent is Ransford Vickers; and 2) the removal
date: July 7. of approximately 1,200 ft of 12-in. pipeline and replace with approximately
1,200 ft of 8-in. steel gas line in Newport News, Va, and installation of
Henkels & McCoy Inc. has been awarded a contract by Transcontinental launcher, receiver, valve assemblies and induction bends in Isle of Wright
Gas Pipeline to install 1.93 miles of 42-in. pipeline in Luzerne County, Pa. County, Va.; headquarters is Carrollton, Va.; the superintendent is Cecil
The superintendent is George Tisdale. Approximate start date: July 13. Hill. Approximate start date: 1) July 27 and 2) Aug. 17.

Precision Pipeline LLC has been awarded a contract by Enbridge Blackwell Enterprises Inc. has been awarded a contract by Henkels &
Energy (Streator to Manhattan Project) for 46 miles of 20-in. pipeline in McCoy Inc. for right-of-way restoration of approximately 30 miles of 42-in.
LaSalle, Grundy and Will counties, Ill. Headquarters is Morris, Ill. The super- pipeline in Fairfield, Perry and Muskingum counties, Ohio. Headquarters is
intendent is Russell Fischer. Approximate start date: July 13. Zanesville, Ohio. The superintendent is Bob Blackwell. Approximate start
date: July 27.
Snelson Companies Inc. has been awarded a contract by Puget Sound
Energy for 33,000 ft of 16-in. pipeline in King County, Wash. The superinten- Henkels & McCoy Inc. has been awarded a contract by Transcontinental
dent is Jeff Elliot. Approximate start date: unknown (announced July 13). Gas Pipe Line to install 3.99 miles of 42-in. pipeline in Somerset County,
N.J. Headquarters is Neshanic, N.J. The superintendent is George Tisdale.
Snelson Companies Inc. has been awarded a contract by Avista Corp. Approximate start date: July 27.
to install 3.2 miles of 12-in. pipeline in Spokane County, Wash. The superin-
tendent is Cliff Nielson. Approximate start date: July 13. PipeSak Inc. has been awarded a contract by Enbridge to supply 130
miles of 20-in. and 36-in. fabrication weights for the Alberta Clipper Proj-
S T Pipeline Inc. has been awarded a contract by NiSource/Columbia ect in Kittson, Marshall, Polk, Red Lake and Clearwater counties, Minn.
Transmission for slip repair and pipe replacement of 100 ft of 24-in. pipeline Headquarters is Superior, Wis. The superintendent is Ryan Connors.
in Mingo, W.Va. The superintendent is George McQuain. Approximate start Approximate start date: unknown (announced July 27).
date: July 13.
BigInch Fabricators and Construction Inc. has been awarded a contract
Rockford Corp. has been awarded a contract by Wild Goose Stor- by Panhandle Eastern Pipeline to send a 26-in. launcher and receiver with
age Inc. for installation of four miles of 24-in. pipeline in Butte County, associated piping in Morgan and Sangamon counties, Ill. Headquarters in
Calif. Headquarters is Gridley, Calif. The superintendent is David Carlile. Springfield, Ill. The superintendent is Frank Ayers. Approximate start date:
Approximate start date: July 15. July 29.

12 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com


Appalachian Pipeline Contractors LLP has been ing of approximately 102 miles of 20-in. and 36-in. pipeline in Itasca, St. Louis and Carlton counties,
awarded a contract by Piedmont Natural Gas Co. to Minn., and Douglas County, Wis. The superintendent is Steve Lindenberg. Approximate start date:
install 9.08 miles of 12-in. pipeline in Sumner County, Aug. 17.
Tenn. Headquarters is Gallatin, Tenn. The superinten-
dent is Anthony Campbell. Approximate start date: U.S. Pipeline Inc. has been awarded a contract by Enbridge Energy for construction of 87 miles
Aug. 3. of 36-in. and 20-in. pipeline with two spreads in Clearwater, Beltrami, Hubbard, Cass and Itasca
counties, Minn. Headquarters is Bemidji, Minn. The superintendents are Wayne Fontenot and
Snelson Companies Inc. has been awarded a con- Jim Jennings. Approximate start date: Aug. 17.
tract by Kinder Morgan Energy Partners LP to install a
10-in. line stopple and replace a 10-in. motor-operat- Dun Transportation & Stringing Inc. has been awarded a contract by U.S. Pipeline Inc. for
ed valve in Storey County, Nev. The superintendent is the stringing of two spreads of approximately 180 miles of 20-in. and 36-in. pipeline for the
Lou Whitmire. Approximate start date: Aug. 6. Alberta Clipper and Southern Lights Project in Clearwater, Hubbard, Beltrami, Cass and Itasca
counties, Minn. The superintendents are John Zaruba and Greg Norman. Approximate start
Henkels & McCoy Inc. has been awarded a date: Sept. 1.
contract by Spectra Energy to install 6- to 36-in.
emergency anomaly digs in Bedford and Fulton Want to see your project here? Submit you project to associate editor Brad Kramer at bkramer@
counties, Pa. The superintendent is Nick Walters. benjaminmedia.com with the subject heading “Project Roundup.”
Approximate start date: Aug. 10.

Laney Inc. has been awarded a contract by


Sheehan Pipe Line Construction Co. for road
boring on the 36-in. and 42-in. Elba Express Pipe-
line in Chatham, Warren, McDuffie, Wilkes, Elbert
and Hart counties, Ga. Headquarters is Waynes-
boro, Ga. The superintendent is Randy Cassell.
Approximate start date: Aug. 10.

Miller Pipeline Corp. has been awarded a


contract by Teppco for maintenance work in Scott
County, Mo. The superintendent is Greg Frazier.
Approximate start date: Aug. 10.

Northern Clearing Inc. has been awarded a


contract by Michels Corp. for right-of-way clearing
of 28 miles of 36-in. pipeline in Pembina County,
N.D., and 108 miles of 36-in. pipeline in Kittson, Mar-
shall, Pennington, Red Lake, Polk and Clearwater
counties, Minn. The superintendent is Jim Junker.
Approximate start date: Aug. 10.

Northern Clearing Inc. has been awarded a con-


tract by U.S. Pipeline Inc. for right-of-way clearing
of 90 miles of 20-in. pipeline and 90 miles of 36-in.
pipeline in Clearwater, Bemidji, Hubbard and Cass
counties, Minn. The superintendent is Jim Junker.
Approximate start date: Aug. 10.

BigInch Fabricators and Construction Inc. has


been awarded a contract by Panhandle Eastern
Pipeline to hydrostatic test 18 miles of a 26-in.
pipeline and complete pipe replacements in Pike
County, Ill. Headquarters is Pleasant Hill, Ill. The
superintendent is Frank Ayers. Approximate start
date: Aug. 12.

Wilco Pipeline Contractors LLC has been award-


ed a contract by the U.S. Army Corps of Engineers
to install 3.5 miles of a 30-in. steel mud water line
in Cameron Parish, La. Headquarters is Sulphur, La.
The superintendent is Mike Roe. Approximate start
date: Aug. 13.

Contractors Rental Corp. has been awarded a


contract by Spectra Energy to lift and lay 2,000 ft
of 20-in. pipeline, relocate a 20-in. launcher and
two meter stations in Nobel and Monroe counties,
Ohio. Headquarters is Shadyside, Ohio. The super-
intendent is Brian Smith. Approximate start date:
Aug. 17.

InterCon Construction Inc. has been awarded


a contract by Precision Pipeline LLC to install two
crossings of 20-in. steel gas lines by HDD in Will
and Grundy counties, Ill. The superintendent is Don
Master. Approximate start date: Aug. 17.

Miller Pipeline Corp. has been awarded a con-


tract by Vectren Corp. to install five miles of 16-in.
pipeline in Knox County, Ind. The superintendent is
Greg Frazier. Approximate start date: Aug. 17.

Northern Clearing Inc. has been awarded a con-


tract by Precision Pipeline LLC for right-of-way clear-
For more information go to napipelines.com/info

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 13


Market Watch
Falling Demand Now, Increasing Later
Global Economic Conditions Have Led to Oil and Gas Market Decline
Poor economic conditions have led to worldwide decline The current macroeconomic outlook assumes that the
in oil and natural gas consumption and will lead to an world economy begins to recover slightly at the end of this
overall decline in use for 2009. However, the U.S. Energy year, led by Asia. As a result, EIA expects world oil consump-
Information Administration (EIA) projects that consump- tion to grow year-over-year in the fourth quarter of 2009,
tion and oil and gas prices should rise in 2010 as the global the first such growth in five quarters. Overall, global oil
economy improves. consumption is projected to decline by 1.7 million bbl/d in
Crude oil prices continue to be very volatile. The West 2009, then rise by 940,000 bbl/d in 2010.
Texas Intermediate (WTI) crude oil spot price fell from Total non-OPEC crude oil and other liquid fuels supply is
$71.47 on June 29 to $59.62 on July 14 and then increased expected to rise by 410,000 bbl/d in 2009 and by 160,000
to $71.59 by Aug. 3. The EIA expects the price of WTI crude bbl/d in 2010. Over the forecast period, higher output from
oil to stay roughly flat at an average of $70 per barrel in the Brazil, the United States and the former Soviet Union is
fourth quarter of 2009, an increase of about $27 compared expected to offset falling production in Mexico and the
with the average for the first quarter of the year. The WTI North Sea. There is some indication that the chronic delays
spot price is projected to rise slowly as economic conditions that have plagued non-OPEC projects have begun to ease.
improve, to an average of about $72 per barrel in 2010. However, many projects are still moving forward at a slower
pace to either defer necessary investment decisions or take
Global Crude Oil and Liquid Fuels advantage of further reductions in procurement costs.
The oil market continues to be defined by the tension EIA projects WTI crude oil prices, which averaged $100
between optimism over the perceived recovery of the per barrel in 2008, to average $60 per barrel in 2009 before
global economy on the one hand and persistently weak recovering to an average of about $72 per barrel in 2010.
global consumption of crude oil and other liquid fuels on Energy price movements are highly uncertain as seen over
the other. There are indications that oil consumption could the last month in the aforementioned swing in the WTI
be recovering outside of the Organization for Economic crude oil spot price.
Cooperation and Development (OECD). However, this has
been somewhat offset by an erosion of compliance with U.S. Crude Oil and Liquid Fuels
production cuts announced by the Organization of the EIA projects total U.S. consumption of liquid fuels and
Petroleum Exporting Countries (OPEC). other petroleum products to decrease by 790,000 bbl/d
(4.1 percent) in 2009. This includes projected declines of
320,000 bbl/d (8.2 percent) in distillate fuel consumption
and 150,000 bbl/d (9.8 percent) in jet fuel consumption.
Motor gasoline consumption is projected to decline slightly
in 2009 as the positive impact of the significant price
decline compared with last summer offsets some of the
negative impact of the economic downturn.
The modest economic recovery projected for 2010 is
expected to contribute to a 280,000-bbl/d (1.5 percent)
increase in total liquid fuels consumption, led by increases
of 110,000 bbl/d (3.2 percent) in distillate consumption,
50,000 bbl/d (0.6 percent) in motor gasoline consumption
and 60,000 bbl/d (2.6 percent) in other oils consumption.
Total U.S. crude oil production averaged 4.95 million
bbl/d in 2008, down from 5.06 million bbl/d in 2007. U.S.
The rising level of global oil inventories, combined with production is expected to increase to an average of 5.22
weak current consumption, indicates overall weakness in million bbl/d in 2009 and 5.25 million bbl/d in 2010.
the oil market. For example, U.S. commercial crude oil and Oil production from the Thunder Horse, Tahiti, Shenzi and
petroleum product stocks have increased for five straight Atlantis Federal offshore fields is expected to account for
quarters for the first time since 1979-1980, and they are about 14 percent of lower-48 crude oil production by the
projected to increase again in the third quarter of this year. fourth quarter of 2010.
As a result, the future level of oil prices will largely depend In early August, the National Oceanic and Atmospheric
upon the timing and pace of the global economic recovery Administration (NOAA) lowered its outlook for an above-
and the resultant impact on global oil consumption that average hurricane season from a 25-percent chance in their
would tend to erode surplus stocks. May outlook to a 10-percent chance in their 2009 Atlantic
World oil consumption has dropped sharply since Hurricane Season Outlook Update. This revision, combined
the middle of 2008 in response to the global economic with no reported shut-in production during June and
downturn and higher prices. Preliminary data indicate July, reduces EIA’s original seasonal estimates of crude oil
that global oil consumption declined by 3.1 million barrels and natural gas production outages by about one-half.
per day (bbl/d) in the first half of 2009 compared with However, significant uncertainty always remains as any one
year-earlier levels. storm can cause widespread disruptions and damage.
14 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com
U.S. Natural Gas Outlook level during the corresponding period last year. Total working
EIA projects total U.S. natural gas consumption will natural gas stocks eclipsed 3,000 Bcf during the week ending
decline by 2.6 percent in 2009 and increase by 0.5 percent July 24. This is the earliest day on record that inventories have
in 2010. Despite some recent signs of economic stability, exceeded 3,000 Bcf during the injection season (April through
the severe contraction during the first half of the year con- October), a mark previously set when stocks reached 3,005
tributed to an estimated 3.8 percent decline in daily aver- during the week ending Aug. 31, 2007. The EIA now expects
age natural gas consumption compared with consumption working natural gas stocks to reach 3,800 Bcf at the end of
during the first half of 2008. October, 235 Bcf above the previous record of 3,565 Bcf
The decline in natural gas use during this period was reported at the end of October 2007.
driven principally by a drop in industrial activity, reflected The Henry Hub spot price for natural gas averaged $3.50
in the 17 percent year-over-year decline in the natural-gas- per 1,000 cubic feet (Mcf) in July, $0.41 per Mcf below the
weighted industrial production index during the first half of average spot price in June. Prices remain low as the drop in
the year. Natural gas prices have declined to the point where drilling activity thus far has failed to bring about the produc-
they now compete against coal for a share of the baseload tion decline necessary to slow the natural gas inventory build.
generation in the electric power sector. Consequently, natu- Resilient production, high storage levels, and the potential
ral gas consumption in the electric power sector is expected for increases in both LNG and pipeline natural gas imports
to increase by 2 percent in 2009. suggest that prices may fall below current projections before
The assumption of improved economic conditions in 2010 space-heating demand picks up this winter and economic
is the primary factor leading to projected demand increases in conditions improve.
the residential, commercial and industrial sectors next year. The EIA expects the Henry Hub spot price to increase
However, the expectation of higher natural gas prices and from an average $3.92 per Mcf in 2009 to $5.48 per Mcf in
lower coal prices in 2010 likely will lead to a slight reduction 2010 because of the current decline in drilling activity and
in natural gas consumption in the electric power sector. projected growth in consumption next year. However, sus-
EIA expects total U.S. marketed natural gas production tained cutbacks in drilling activity or stronger demand than
to stay flat in 2009 and decrease by 2.8 percent in 2010. expected could lead to even higher prices. However, improve-
The outlook for production is conditioned on the current ments in drilling technology and procedures are expected to
low price environment that has brought about a significant limit price increases over the forecast period.
pullback in drilling activities. According to Baker-Hughes, For more Energy Information Administration oil and gas
total working natural gas rigs have now declined by 58 market forecasts, visit www.eia.doe.gov.
percent since September 2008.
Data for March through May 2009 suggest that the decline Source: Energy Information Administration
in drilling has begun to reduce marketed production in the
lower-48 non-Gulf of Mexico region. While the monthly av-
erage rate of decline was about 0.3 billion cubic feet per day
(Bcf/d) during those three months, production is expected to
decrease at a faster pace through the remainder of 2009 with
some curtailments from existing production expected.
Gulf of Mexico production is expected to increase by
3.3 percent in 2009 in part because recovery from damage
sustained during last year’s hurricane season and the
lower expected incidence of hurricane activity this year.
Although drilling activity is expected to pick up early
next year, the lagged affect of reduced drilling this year is
expected to lead to lower production in all regions outside
Alaska. Alaska natural gas production is expected to remain
near current levels through the forecast.
EIA expects U.S. liquefied natural gas (LNG) imports to in-
crease to about 500 Bcf in 2009, up from 352 Bcf in 2008,
and rise to about 740 Bcf in 2010. While increasing over 2008
levels, U.S. LNG import growth this year has been constrained
because of increased LNG demand in Europe and delays and
maintenance to new and existing LNG liquefaction capacity.
With limited natural gas storage availability, recent data
suggest that European inventory levels are now nearing
capacity. As a result, LNG shipments may be redirected to
U.S. ports in the coming months as prices in the European
market become less attractive to LNG suppliers. A similar
scenario may also occur in Canada, with natural gas pipe-
line imports increasing in the months ahead as Canadian
storage facilities are topped off. An increase in U.S. natural
gas imports would likely be balanced by larger-than-expect-
ed declines in domestic natural gas production.
On July 31, working natural gas in storage in the United
States was 3,089 Bcf. Current inventories are now 496 Bcf
above the five-year average (2004–2008) and 580 Bcf above the For more information go to napipelines.com/info

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 15


A Voice That Sells
Ritchie Bros. Auctioneer Butch Graham Uses His
Expertise to Help Oil and Gas Pipeline Professionals
Buy and Sell Equipment
By Bradley Kramer

H
is voice is deep and melodious in conversation, calm- Graham got into the oil and gas pipeline industry in
ing in its resonance. When he’s at work, though, it the late 1970s and early 1980s, about the time when the
sounds like a hard-driving drum solo, rattling off large Trans-Alaska Pipeline was wrapping up. He then joined
figures in quick succession, stalling for a moment to let the Ritchie Bros. in 1987 — a job he cherishes — and worked with
audience catch its place, and then the voice rattles off more company founder Dave Ritchie, for whom Graham has
numbers before it says, “Are you done?… Last call… Sold.” nothing but respect and gratitude.
Butch Graham’s voice announces the sale of another Ritchie Bros. conducts more than 340 auctions each year
piece of construction equipment. at its 39 auction sites in the United States, Canada, Mexico,
As a senior auctioneer for Ritchie Bros. Auctioneers, his Europe, the Middle East and Australia, and many off-site.
voice is his trademark. However, it is Graham’s decades of The company was established in 1958 as a small, family-run
experience and expertise in the oil and gas market that led furniture store in Kelowna, British Columbia. In 1963, the
to his nickname as “the voice of the pipeline industry.” company began selling industrial equipment.
16 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com
Graham is one of the most senior auctioneers at Ritchie responsibility to put my best foot forward. I always felt I
Bros., says Peter Blake, CEO of the auction company. During was representing them.”
his tenure at Ritchie Bros., Graham has worked at some of It’s Graham’s personal touch that has endeared him to the
the company’s most memorable auctions, such as the auc- oil and gas pipeline industry, says Dave Douglas, manager
tions that followed the 1989 Exxon Valdez oil spill. Close to of the Canadian Pipeline Division for Ritchie Bros. (Graham
10,000 people attended the first auction in Anchorage, and calls him “little brother,” says Douglas, who has been with
Graham remembers it all too well. Ritchie Bros. for 14 years.)
Graham gets extremely excited about converting the “Butch is so well respected by all the contractors, and
customers’ assets into cash. “It’s a tremendous rush,” he he knows them all,” Douglas says. “His outgoing personal-
says. Sometimes Ritchie Bros. hosts auctions that last two, ity and his honesty and integrity are what people respect.
three and four days. That Exxon Valdez auction lasted five When people buy a piece of equipment, they know it is
days and included all varieties of equipment, including what Butch says it is. You can take his trust to the bank.”
cranes and boats. When the auction started at 6 a.m., it Graham has worked with every major pipeline contrac-
was still dark. tor in the United States and many of the international
contractors as well. He is also heavily involved with the
industry’s trade organizations, specifically the Distribution
Contractors Association (DCA), the International Pipeline
and Offshore Contractors Association (IPLOCA) and the
Pipe Line Contractors Association (PLCA).
Graham’s market expertise is an asset to his customers,
says Tom White, president of Price Gregory Construction
and who has known Graham for 28 years. “He’s a big
force in the pipeline industry,” he says. “We’ve done
industry sales through him, but sometimes I use him as
a sounding board for what equipment is worth and the
best time to sell.”
Contractors value Graham’s knowledge of equipment
values and how best to market and sell it at an auction, says
Pat Michels, president of Michels Corp. “His talents as an
auctioneer are second to none.

Ritchie Bros. conducts more than 300 auctions all over the world,
with buyers who show up in person or bid online via a live webcast.

“Now, I’ve never been shy,” Graham says. “When the sun
peaked over the mountains and I saw that enormous crowd,
it was the only time I had a weakness in my voice.”
There was so much equipment to sell from the Exxon
Valdez spill that another three-day auction was held in
Tacoma, Wash.
Graham has been an auctioneer all his life. His father
worked in marketing livestock auctions, and his uncle,
cousin and brother worked as auctioneers. His brother still
runs the family auction business. “I’ve always had good ora-
tor skills,” he says. But auctioneering isn’t just about getting
up to the podium and talking fast.
“Anyone can get up there and talk fast,” he says.
“You have to be able to see the trends. I’m one of the
remaining auctioneers around who went through the
crash of 1982-1985 and saw the low times.”
Graham takes pride in his equipment knowledge and
building relationships. He feels that it’s his duty to know
the market and equipment so he can pass the information
along to his customers.
“One thing I’ve learned about the business as a senior
auctioneer and pipeline rep for Ritchie Bros. is you have
to make the customer your friend because your friend will
always be your customer,” Graham says. “My face and my
voice are always out there for Ritchie Bros., and it’s my For more information go to napipelines.com/info

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 17


In preparation of each auction, Butch Graham and the rest of the Ritchie Bros. team work with customers to sell equipment. The machines are
sometimes refurbished and repainted upon arriving at one of the company’s 39 auction sites.

“He is very personable and sincere. He knows what’s go- Yes, Graham has used his auctioneering skills to help those
ing on in the energy industry and is able to translate that associations, but he doesn’t expect credit. He isn’t there for his
to when he’s selling at an auction,” says Michels, who has own laurels, but as a representative of Ritchie Bros. “Without
known Graham for 20 years and considers him as a good Ritchie Bros., there would be no Butch Graham,” he says. Graham
family friend. credits Dave Ritchie for instilling these professional ethics.
Graham also passes on his vast industry knowledge “For as long as I can remember, Butch has played a very
to his colleagues at Ritchie Bros. “Our new auctioneers significant role for Ritchie Bros. in the oil and gas industry,”
look to him for advice and training,” Blake says, “and he Blake says. “And Butch is a personality everywhere he goes
has helped to make our auctioneer crew the great team — not just at your conferences. He brings his uncompromis-
it is today.” ing level of integrity and family values from his roots in
Douglas consults with Graham as he works his sales terri- Marlow, Okla., to the world.”
tory in Canada. Douglas says he tries to learn as much as he Blake thinks that people appreciate Graham’s “down
can from the auctioneer. home nature.” That appreciation shows in how the indus-
“We work hand in hand to share information about try has awarded Graham. He was elected to IPLOCA’s board
who is interested in buying or selling or what a piece of directors for a term in 2002, and he was made an Honor-
of equipment is worth,” Douglas says. “Butch knows ary Lifetime Member of DCA.
so many people that he just has a broader base to work Despite what personal successes may come his way,
from. He has relationships that are four generations old Graham is always appreciative of those around him.
in some cases. It’s more like me asking questions and him He can’t do it alone.
having the answers.” “There’s a woman in my life who is just as much of
an ambassador for Ritchie Bros. as I am,” Graham says.
Love the Industry “My wife Bonnie knows all the wives and kids. She loves
Just as Graham has been an auctioneer all his life, he also the industry and Ritchie Bros. just like I do.”
has been around the oil and gas industry since his youth. In October, Butch and Bonnie will celebrate 39 years of
He was raised and still lives in Oklahoma. As he says, marriage. He says his wife helps him build strong relation-
“I grew up around the oil patch.” Graham’s granddad was ships, forming a close knit community with the other wives
friends with Erle Halliburton. in the industry.
“You have to love what you do,” Graham says. Through- “There’s no price for that,” Graham says. “It’s all about
out his decades of auctioneering for the oil and gas pipe- relationship building. There’s no competitive way to deal
line industry, Graham has helped raise millions of dollars with that.”
through charity auctions for DCA, IPLOCA and PLCA. Through it all, Graham strives to be a good representative
He has also been involved with the American Pipeline of Ritchie Bros. and the oil and gas industry.
Contractors Association (formerly, the Rocky Mountain “I hope I’m doing it right,” he says. “You’ve got to love
Contractors Protective Association). it. And I do.”
18 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com
Good Times and Bad $1 million are now selling at $400,000. “It’s trending down,
In a tough economy, the unreserved auction format is still but the bottom has not fallen out,” he says. Graham only
a popular option for both equipment buyers and sellers, Blake hopes that the downturn doesn’t last as long as the one in
says. During the current recession, Ritchie Bros. has seen a the 1980s.
record number of bidders participating at its auctions.
“A need for equipment still exists as global building and Auction Day
construction projects carry on,” Blake says. “Buyers are just “You have to appreciate what goes into the auction,”
more cautious of pricing right now given the current state Graham says. “The people at Ritchie Bros. research their
of the economy. This is evident given the decline in new territories for two to three months beforehand.”
equipment sales over the past year and they know they can Ritchie Bros. has more than 1,000 sales reps across the
find good equipment they need at one of our auctions at world. The field reps call on their customers to see if they
prices they are more willing to pay.” are interested in selling a piece of equipment. The reps are
The other side of that equation is that equipment own- in constant contact with their clients. Graham himself acts
ers are realizing that in this downturn, idle equipment is as a lead sales person during the lead-up to an auction.
not cost-effective, Blake says. The result is many equip- Each auction has hundreds of consignors, Graham says.
ment owners are choosing to sell their equipment instead Ritchie Bros. inspects the equipment and signs a contract
of keeping it. with the seller, and the equipment goes into one of the
In any industry, there will always be good times and company’s equipment yards. Occasionally, Ritchie Bros.
bad times, Graham says, but he is a strong believer that will do a sale off one of its sites, such as when an industry
pipeline contractors will help turn the economy around. veteran retires and needs to sell a bunch of equipment at
The world still needs to build and maintain infrastructure, once. If needed, the Ritchie Bros. refurbishes and repaints
and because of that, business will go on. the equipment.
“The sky is not falling like people think it is,” he says. Then the marketing department goes to work promot-
The natural gas market just came out of a boom year, but ing the auction. Auctions attract buyers from all over the
has taken a dive. Oil is still very profitable at more than $70 world. Bids can be placed in person or online through
per barrel. What’s hurting natural gas is the price of natural the company’s live webcast at www.rbauction.com.
gas, Graham says. “That’s why we’re not seeing much move- “When the sale date comes,” Graham says with a charge
ment on projects, because the price collapsed,” he adds. in his voice, “it’s my turn.”
Graham saw the last crash in the oil and gas industry, and
he sees many similarities with the industry now, such as Bradley Kramer is associate editor of North American Pipelines.
the trends in equipment sales. Drill rigs that used to fetch He can be contacted at bkramer@benjaminmedia.com.

For more information go to napipelines.com/info

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 19


IPLOCA Convention Coins a Phrase
Butch Graham has emceed the International Pipeline and Offshore Contractors Association (IPLOCA) annual conference
since 2004 after he was elected to the board of directors in 2002, and he has helped the association raise funds during
its benefit auctions. Graham’s auctioneering skills and involvement with IPLOCA and other trade associations led to
Luc Henriod, IPLOCA’s senior advisor, to call him “the voice of the pipeline industry.”
IPLOCA got its start in 1966, when companies active in the international pipeline construction industry recognized
that they shared many common interests and challenges that could most effectively be addressed by establishing an
industry association. That same year the then-leaders of the industry met in Paris and established the International
Pipeline Contractors Association.
Originally established as a division of the U.S. Pipeline Contrac-
tors Association, the International Pipeline Contractors Association
became fully independent in 1976 after a significant increase
in membership.
In 1988, the association was extended to include those compa-
nies working offshore in the oil and gas industry, and on May 5,
1989, the International Pipeline and Offshore Contractors Associa-
tion was officially established.
The association’s headquarters were later moved to Brussels,
and then in 1992 to Gent, Belgium. The Gent office was closed in
June 2005, and the office was re-established in Geneva, Switzer-
land, where it remains today.
The association hosts a convention every year to foster a forum
where members, associate members and other guests, including
delegates from more than 40 countries, have the opportunity to meet
and discuss important topics within the oil and gas pipeline industry.
The 43rd annual IPLOCA Convention is Sept. 14-18 in San Fran-
cisco. Topics for the event include onshore and offshore pipelines,
construction, manpower issues, training, new technologies, safety
and the environment, with special consideration for this year’s most
pressing theme — current market trends. The association’s new crop
Butch Graham emcees the annual IPLOCA Convention of leaders will also be elected at the convention on Sept. 18.
and is a former member of the board of directors.
Through its membership and convention, IPLOCA furthers its
At one of the conventions, he was announced as
“the voice of the pipeline industry.” mission to provide value to members for sharing ideas, engaging
the industry and its stakeholders, facilitating business opportunities
and promoting the highest standards in the pipeline industry. To that end, the association’s objectives are as follows:

• To promote, foster and develop the science and practice of constructing onshore and offshore pipelines and associ-
ated works.
• To make membership of the association a reasonable assurance of the skill, integrity, performance and good faith of
its members.
• To maintain the standards of the contracting business for onshore and offshore pipelines and associated works at the
highest professional level.
• To promote safety and to develop methods for the reduction and elimination of accidents and injury to contractors’
employees in the industry and all those engaged in or affected by operations and the work.
• To promote the protection of the environment and contribute to social, cultural and environmental development.
• To promote good and cooperative relationships amongst the membership of the association and between contractors,
owners, operators, statutory and other organizations and the public generally.
• To encourage efficiency amongst the members, associate members and their employees.
• To seek correction of injurious, discriminatory or unfair business methods practiced by or against the industry contrac-
tors as a whole.
• To maintain and develop good relations with sister associations as well as associations allied to our industry and to
play a leading role in the World Federation of Pipeline Industry Associations.
• To follow the established Codes of Conduct set out by the industry and others with respect to working within a free
and competitive market.

20 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com


For more information go to napipelines.com/info
Tackling
Hard Rock
with HDD

Michels Directional Crossings Installs Six Challenging


Miles of 30-in. Pipe in Atlanta By Tim McGuire

A
Georgia coal-burning power plant is in the The longest crossings have been drilled to lengths of
process of converting to natural gas, requiring approximately 3,000 ft while some of the shorter cross-
construction of approximately 19 miles of a ings have been closer to 1,000 ft long. Interstate 285 will
new gas pipeline in Atlanta. In order to build be crossed three times by Michels’ HDD operations and
the pipeline around the west side of the city, the utility Interstate 20 has been successfully crossed at one location.
commissioned U.S. Pipeline to lay the pipe in trenched Many other major highways and roadway crossings along
portions of the right-of-way (ROW) and prepare horizon- the route are also being completed by HDD construction, as
tal directional drilling (HDD) pipe pull sections for Michels well as several major water bodies and wetlands including
Directional Crossings. Michels had to complete the HDD a difficult crossing of the Chattahoochie River that Michels
crossings in areas where trenching is either not feasible due recently completed near the end of July.
to accessibility issues or not economically viable due to The rock encountered so far has been primarily granite-
complex pipeline construction constraints. type, varying widely in strength, hardness and consistency
In April 2009, Michels began construction of 19 planned depending on depth and degree of weathering. The rock is
HDD crossings of 30-in. pipe through these mandated also typically encountered at varying depths along the HDD
trenchless construction areas along the 19-mile pipeline design alignment and Michels has worked closely with U.S.
stretch, drilling through a varied mix of hard rock and soil Pipeline, the owner’s designer and the owner of the utility
ground conditions. to limit the lengths and depths of the crossing designs to
Michels operated up to five of its 13 large capacity minimize costs to the owner of drilling through longer
drilling rigs at any given time on this project and estimates sections of the harder rock formations at greater depths.
that over six miles of the project will be directional drilled Prior to starting the project, the owner performed an
with almost 50 percent of the HDD crossings completed extensive geotechnical study of the proposed HDD design
through rock despite extensive HDD design and construc- alignments. The crossings were initially designed as short
tion length minimization efforts. and shallow as possible based on this data, among other
22 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com
ROW constraints. However, given that the elevation of the variations of bottom hole drilling assemblies are required
top of the rock can vary significantly in a short distance just to steer the pilot hole along the designed alignment
in this area, some of the crossing design paths had to be as these contrasting, “mixed-face” conditions are encoun-
re-oriented once HDD pilot hole operations were initiated tered. Fortunately, Michels’ crews are well versed in drilling
when the rock elevations were not encountered as antici- in hard rock conditions around the world with extensive
pated with the original design. experience in the Atlanta area, so the company knew what
In addition to this “adjust the design as you go” methodol- to expect and came prepared.
ogy being employed on many of the crossings, the adapta- Michels also has implemented the use of HDD intersect
tion of HDD technology in so many confined areas where technology on several of the crossings in order to success-
its use may have previously been thought unimaginable has fully complete the pilot holes within the tight constraints of
required a level of coordination and communication between the allowable design alignments. In attempting to shorten
the owner, designer and contractors that is unprecedented in these crossings as much as possible and achieve the rigor-
the HDD industry on a project of this magnitude. ous design tolerances, there are oftentimes limited options
The ultimate objective of the HDD construction is to for lengthening the crossings if the rock is encountered
provide a trenchless installation of a relatively rigid (i.e., unexpectedly or the formation prevents Michels from
wall thickness greater than a half-inch thick), 30-in. steel precisely controlling the pilot hole along the desired
pipe underground along a geometrically smooth trajectory alignment regardless of the company’s extensive inventory
from the entry to exit that allows it to bend through the of varied bottom hole assemblies.
bored out rock along the HDD alignment without adversely This requires drilling the pilot hole from the opposite
affecting the integrity of the pipe during installation and end of the crossing and intersecting the section of hole
operation. In order to accomplish this, first the HDD pilot previously drilled from the entry side to ensure the exit
hole geometry must be carefully monitored and controlled hole location and desired design alignment are precisely
as it is drilled along the desired design alignment. maintained. Michels has completed more than 50 inter-
Drilling and controlling the geometric shape of the HDD sects on other projects, but intersecting pilot holes in solid
alignment is technically and physically demanding, espe- granite can add significant time to a crossing’s duration,
cially when drilling in and out of rock that is encountered so this method is only implemented after all other options
at depth in varying locations and degrees of competency have been exhausted.
along each HDD alignment and when the crossing lengths The originally planned reaming parameters also required
are designed at the bare minimum, further reducing any modification by Michels on some of the crossings to fur-
room for construction error. Oftentimes several different ther ensure the integrity of the pipe installation on several

For more information go to napipelines.com/info

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 23


of the more constrained design alignments. Once the pilot ROW as workers guide it into the exit hole for Michels to
holes are completed, the HDD holes must be enlarged by pull it underground and through the crossing.
completing multiple ream passes along the hole to open The original construction schedule for the pipeline, includ-
it to a diameter large enough to accommodate the 30-in. ing all of the HDD crossings, spanned over a year to allow
steel pipe installation, often requiring months of scheduled sufficient time to complete all of the anticipated rock cross-
reaming operations on the longer and harder rock cross- ings and challenging pipeline work. Local permit issues also
ings. To maintain specified design elements of these HDD prevented the construction from proceeding continuously
crossings, Michels has enlarged the final ream diameter from one end to the other, requiring numerous gaps that
of these types of crossings to varying degrees to facilitate have inhibited optimal HDD and pipeline spread procession.
successful installation. Representatives from Michels, U.S. Pipeline, the owner’s
Operations above ground have also required use of engineer and the owner met often and prepared for the
extraordinary construction measures on a daily basis. work well in advance of the scheduled start to identify and
The pipeline ROW lies in an existing utility corridor, which eliminate known sources of potential scheduling conflicts.
runs parallel to I-285 on the west side of Atlanta, the same The HDD crossings were mutually designed based on the
highway that loops around the entire city. Besides many best available pre-construction information to facilitate
other utilities crossed along this route, the pipeline parallels minimum lengths within confined work space and geomet-
a 345-kilovolt overhead electric transmission line, which rical constraint limitations, oftentimes considered barely
prevents what would otherwise be normal HDD and pipe- within the realm of feasible HDD construction methodol-
line construction equipment movement and operation. ogy. All of the parties continue to coordinate design and
The obstruction requires a much greater degree of profes- construction efforts to overcome daily changes to the
sional planning and experienced execution to ensure the planned operations to maintain productive forward prog-
safety of the workers even for the simplest of operations. ress on this extremely complex project.
This ROW also traverses densely populated urban, com-
mercial and residential areas and is considered extremely
narrow for a 30-in. spread by pipeline construction stan-
dards. In addition to the geotechnical challenges and confin-
ing work space limitations, Michels and U.S. Pipeline have
had to contend with many obstructions along the pipeline
route, including numerous wetlands, access and work hour
restrictions, rapid changes in topography, various existing
utility crossings (both known and unknown), buried de-
bris, proximity of residences to the HDD work areas, heavy
traffic, high rates of crime and discontinuities in the ROW
alignment. Michels has constantly adapted its HDD opera-
tions to meet the extreme design criteria, including greater
than normal entry and exit angles as compared to typical
HDD design standards to accommodate the owner’s desire
to minimize the lengths of the HDD crossings within the
allowable surface and subsurface constraints faced at every
HDD location along the ROW.
The aboveground work space limitations also have
hampered another key element to the success of any HDD
crossing: maximizing the length of continuous pipe pull
sections. Typical HDD pipe pull sections are installed in one
Workers faced many challenges during the pipe installation, including
continuous length — especially larger diameter crossings such
operating in a confined right-of-way, which made drilling and
as 30-in. — to avoid undue risk to the installation caused by pullback difficult.
stopping the pullback operations for long periods incurred
during tie-in welds of multiple sections. Unfortunately, many Michels began preparing for the HDD work four months
of the crossings completed by Michels on the Atlanta project in advance to ensure sufficient resources would be avail-
have not had the luxury of sufficient work space, which must able to tackle the large quantity of rock drilling and ream-
typically be made available in order to accommodate string- ing that would be required in a relatively short period of
ing the pull sections in continuous lengths. In fact most of the time compared to typical projects where one or two rock
crossings have been completed on ROW that has limited U.S. crossings might be completed in a similar time frame.
Pipeline to pre-staging the pull sections in multiple strings and The HDD crews had to be prepared to act quickly to meet
making as many as five tie-in welds during the HDD instal- the changing demands unique to each individual crossing,
lations to allow Michels to successfully complete what have and have the necessary down-hole tooling at their disposal
on several occasions been multi-day pullback operations even to efficiently overcome the varied conditions encountered
for relatively short crossings. in order to stay ahead of the demanding schedule.
In addition, many of the locations have had a combina- Over half of the crossings have been completed as of press
tion of severe HDD design exit angles and steep changes in time with four rigs still grinding through the rock daily
the topography on the ROW adjacent to the exit locations. under Atlanta’s west side ensuring that the pipeline will be
This condition has required implementation of unique pipe completed and ready for use ahead of schedule.
handling measures and deployment of additional special-
ized equipment by U.S. Pipeline to ensure the pipe does not Tim McGuire is vice president of Michels Directional Crossings,
buckle or strain out of control above ground in the narrow a division of Michels Corp. based in Brownsville, Wis.
24 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com
Drilling Through Water
HDD Makes Natural Gas Pipeline Project Possible By Stephen Tait

A
10-mile pipeline that will connect the north and On the water-to-water crossings, Mears’ 500,000-lb drill
south sides of Hampton Roads Harbor, Va. — made rig sat on a 350 by 38-ft barge with a four-point mooring
possible through onshore and marine horizontal system, a 250-ton capacity anchor winch and a 230-ton
directional drilling (HDD) — will allow Virginia Natural Gas to capacity crane. Next to that was a similarly large barge hold-
expand capabilities to serve a growing customer base and will ing more than 700,000 gallons of fresh water for the drill rig, a
also open new doors for HDD projects, industry experts say. mud cleaning system, drill pipe and various other equipment.
The project’s onsite work began in May 2008 and is A smaller crane barge supported a 140,000-lb rig at the
scheduled for completion in November 2009, with the final exit holes.
land-to-water shore approach completed and tie-ins of the To stabilize the drill barge during pullback, Mears Group
24-in. steel product pipe now under way. At the heart of project superintendent Mike Vidomski says Weeks Marine
the project were seven HDD crossings completed by Mears deployed a three-anchor holdback system using a chain
Group Inc. working closely with the prime contractor, rated for 1 million lbs to anchor the barge, therefore coun-
Weeks Marine Inc. teracting the force of the Mears rig. The innovative use of
Of those seven crossings, one was a record length 7,357- a tension clamp on the drill string by Mears, together with
ft crossing beneath the Elizabeth River and three were rare the anchor system, stabilized the barge to perfection.
water-to-water drills under Hampton Roads Harbor that “When we were pulling pipe into the hole there was
required the contractors to adapt to marine conditions. no movement on the barge,” says Carolina Palmer, Weeks
Perhaps the most important water-to-water crossing was Marine project manager. “It was like we were on land.”
the 3,003-ft bore spanning the 53 ft deep Newport News Mears steering technician James Eisenhauer says,
shipping channel, one of the world’s busiest commercial “We made land where there was no land.”
and military shipping lanes. To improve steering accuracy for both the river and harbor
Virginia Natural Gas senior project manager Les Flora, crossings, the contractors also outfitted a mobile coil barge
P.E., says horizontal directional drilling under the water- that floated on the surface above the path of the 9 7/8-in.
ways was the only practical way to complete the marine drilling bit while Mears bored the pilot hole. The coil barge
crossings since governmental agencies would not grant replaced Mears’ traditional method of placing wires on the
permits for techniques such as open-cut dredging due to
environmental and shipping concerns.
“When you look at all the environmental [and] ship-
ping concerns, we probably could not have successfully
permitted this project without being able to horizontally
directional drill,” Flora says. “The only way we could get
a permit, was to HDD. I’m sure that what the contractors
have learned on this project will be of great interest to those
in the industry.”
Flora says the project’s original design called for trenching
across the majority of the harbor, but that plan was revised
after entities such as the Army Corps of Engineers indicated
that permitting would not be possible.
Instead, Virginia Natural Gas looked to HDD techniques
to cross the marine sections of the project, areas that
include environmentally sensitive areas like clam sanctuar-
ies and oyster beds and shipping traffic that includes U.S.
Navy ships that use the fueling station on Craney Island.
Flora says that by using HDD techniques, the amount
of material needed to be trenched decreased by about two-
thirds the original planned quantity. “It was a pretty signifi-
cant amount,” he says.
The marine environment created unique hurdles for the
contractors to overcome: salt water that corroded equip-
ment, strong tides and currents, storms and sonar equip-
ment from passing ships and submarines that momentarily
fooled with steering readings.
To combat against the conditions, Weeks Marine cus-
tomized its barges to support and secure the equipment
Mears needed on the water. The Weeks team designed and
installed a robust anchoring system and other equipment
such as “goal posts” — steel pile structures straddling the
pipe alignment in front of the barges that helped guide the
pipe from the drill rig to the harbor floor.
For more information go to napipelines.com/info

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 25


seabed to create a triangulation that enabled the steering out,” Flora says. The connection of the pipeline will
technician to track the precise location of the drill. increase the company’s capacity by 100,000 dekath-
Even then the team encountered a hurdle. When bor- erms. A dekatherm is the equivalent of 1,000 cu ft of
ing the channel crossing, the stringent regulations did not gas. Flora says a typical house in Virginia on a cold
allow for the coil barge to be in the shipping lanes, forcing day uses about 65 cu ft of gas per hour. The extra gas
Eisenhauer and Vidomski to drill blindly. The pair say they “will enhance our ability to grow our system for the
relied on the information they had acquired, but mostly next decade,” Flora says.
used their combined decades of experience in the field to • Lastly, the project will allow Virginia Natural Gas
drill the hole. to take advantage of commodity prices and get the best
“You’ve got to rely on your gut library,” Eisenhauer says, price for its customers, Flora says. The cost of gas is 75
referring to the experience percent of a customer’s
built over a career. “We were bill, he says, so the lower
able to hit accurately where the price that the com-
we had to hit.” pany can get, the better
Vidomski adds, “That is price will be passed on
basically just trusting what the consumer.
information we had. The bore
was right on.” Flora says there were only
Dr. Samuel Ariaratnam, two or three companies with
a professor at Arizona State the ability to complete the
University whose research HDD portion of the project.
focuses on HDD, says the Palmer says, “Many people
water-to-water drills Mears didn’t go for the bid because
completed on the project are it was a big challenge.”
pretty rare. “There are only Mears, however, took on
a limited number of compa- the challenge. The compa-
nies that have the expertise ny finished the seven HDD
to perform these types of crossings, the most recent set
projects,” he says. “They are of bores crossed under Hamp-
certainly not your run-of- ton Roads and included three
the-mill type projects.” water-to-water crossings and
Ariaratnam, who is the co- two shore approaches. In all,
author of the book Horizontal Mears Group and Weeks Marine combined efforts to connect two gas Mears drilled 15,439 ft, span-
lines in Virginia. Of seven total HDD crossings, one was a record length
Directional Drilling Good Prac- ning the distance between
7,357-ft crossing beneath the Elizabeth River and three were rare water-
tices Guidelines, says HDD Craney Island and Newport
to-water drills under Hampton Roads Harbor.
continues to become more News, where the final shore
popular because the technology makes sense. “From an approach was at Anderson Park.
economic and definitely from an environmental perspec- On the first Hampton Roads bore, the 3,004-ft Craney
tive, HDD is certainly the way to go on these types of Island shore approach, the drill crew started drilling on
applications,” he says. “You are pretty much eliminating Aug. 18, 2008. The product pipe was pulled through on
any disturbance to the ecosystem.” Sept. 30, 2008.
The professor says such projects will open the door for The second bore started Oct. 25, 2008, and marked the
more use of HDD drilling practices. “These landmark type first water-to-water crossing for this project. Product pipe
projects are really what help to push the utilization of for the 3,547-ft Anchorage Crossing was pulled through on
HDD,” he says. Jan. 9, 2009.
Beyond the intricacies of Next was the Middleground
HDD, the project also com-
pletes a practical purpose:
Looking for More? Crossing, a bore of 2,942 ft and
also a water-to-water crossing.
It makes possible for Virginia Read an expanded version of “Drilling Mears used a gyroscope mech-
Natural Gas, a subsidiary of Through Water” at North American Pipelines’ anism to navigate the bore.
AGL Resources, to reach more online home, www.napipelines.com. The gyroscope uses accurate
customers and increase its sensors to establish measure-
ability to provide consistent service to customers in the ments relative to true north and is not affected by magnetic
Norfolk/Newport News area. interference. The subterranean crossing started Jan. 19 and
Flora says the project helps the gas company achieve ended a month later.
three primary goals: The 3,003-ft crossing under the busy Newport News Shipping
• First, it increases reliability, since the pipeline will Channel started Feb. 25 and ended March 31. It was the third
connect two previously separated sources of natu- and final water-to-water crossing for Mears on this project.
ral gas. Right now, the north and south pipelines are Mears finished the Anderson Park shore approach, a
served by different natural gas providers, but connect- land-to-barge drill set up next to a small baseball field in
ing the pipe will give a redundancy of supply to en- Newport News. The project started April 8 and finished
sure customers will still have power even if one service April 29, spanning 2,943 ft. The bore completed the HDD
encounters trouble. crossings for the project.
• It allows Virginia Natural Gas to handle a grow-
ing customer base. “Capacity wise, we are tapped Stephen Tait is a free-lance writer in Port Huron, Mich.
26 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com
For more information go to napipelines.com/info
Delivering
Pipelines
by Air
Lifting Pipe with Vacuum Technology
By Leanne Butkovic
A
piece of pipe, through its stages of life, needs to be moved from boat to barge.
From there, it needs to go from shipyard to stringing trucks and, eventually, into
the ground. To get from point A to point B to point C to its final resting place,
it very obviously needs to be lifted.
There are lifting techniques of all sorts, from chains, swings, straps, hooks and…
vacuums? It may appear as foreign to some, but vacuums offer one of the easiest, most
efficient and, most importantly, safest on-site lifting techniques to date. Tulsa, Okla.-
based vacuum lifting originator Vacuworx is just one of several companies that offer this
technology to contractors.
Though vacuum lifting has been used for decades in glass plants, heavy manufac-
turing and distribution facility jobs, Vacuworx owner Bill Solomon developed the first
vacuum lifting technology for self-contained high capacity in-field applications 10 years
ago when he realized that there had to be a better and safer way to lift pipe. Since then,
Vacuworx’s growth has blossomed with an increasing popularity of vacuum lifting due
to its ease, efficiency and low-risk factor.
Shawn Lowman, director of sales and marketing for Vacuworx, explains the vacuum
lifting process of the Vaculift: “It only takes one person to operate it from the safety of
the cab of the host machine. It runs on a closed frequency wireless remote. That’s about
as easy as you could get, I would say.” Though ostensibly simple, the inner workings of
the Vaculift technology are a bit more complex, yet intuitive.
It all starts with the vacuum itself. Connected to a diesel engine over a single cell, the
vacuum pump constantly runs so that the machine is always using and storing vacuum
suction that can lift any type of pipe. The large beam structure on the machine serves as
a vacuum reservoir to maintain its strong hold of a constant 28.94 Hg (98 kpa) on the
pipe, even if the lifter shuts down in the middle of the haul. The reserve vacuum and the
vacuum valve that is naturally closed on all-time suck mode would keep the pipe exactly
where it was.
“Should something fail, typically your problem is going to be getting it to let go of the
pipe,” Lowman says. “Most incidents of dropped pipe that we’ve ever seen have always
been operator error or poor maintenance.”
To reduce jobsite risk, the machine has a built-in safety feature. When the machine
is starting, an alarm goes off notifying the operator and anyone nearby that it is in low
vacuum and that it isn’t safe to lift. The alarm automatically turns off once the vacuum
pressure is at an operable level.
The Vacuworx machine requires maintenance that is common to any other piece of
equipment. The owner’s manual checklist should be gone over prior to any start of a
shift. Fluids must be checked at regular intervals. A filter that serves as a sieve for dirty
air entering the vacuum is located at the mouth of the vacuum and must also be checked
and replaced regularly, depending on jobsite conditions. If the working circumstances
are dusty, the operator should check on it nearly every shift. If the area is more damp,
then the filter may not need to be checked or replaced for several weeks. The Vaculift
will suffice with traditional filters meeting the warranty’s specifications, but the company
offers an inexpensive high micron filter that they recommend customers use for the best
possible lift.

So Easy, Your Kids Can Do It


Safety is arguably the most important factor in a job well done. Whenever a heavy load
is suspended, recommended precautions must always be followed. Vacuums offer one of
the safest and least risky lifting technologies available.
You can mention the vacuum alarm, the closed vacuum valve and the tooling’s
reservoir, but the cornerstone of safety in the Vaculift machine is its minimal need for a
large crew.
“It’s a one-man show, and the operator is not in harm’s way,” Lowman says. One crew-
member manning the vacuum sits in the cab of the excavator. Since there is nothing to
attach or wrap around the pipe, there is no need for people to be standing anywhere near
the pipe being hauled, which removes a majority of the risk in lifting a load. Even still,
other crewmembers should not stand directly beneath the load.
Located on Vacuworx’s Web site is a video made by Lowman about how safe the
vacuum lifting technology actually is. The stars of the video? His, the owner’s and the
sales representative’s daughters. Reciting their well-rehearsed lines in turn, the cast of
children works through the safety concerns of lifting with chains and discovers safer
ways of ‘Vacunomics’ by way of a visit from a curiously short OSHA inspector (they oper-
ate the machines themselves too). Tell me what parent in their right mind would pur-
posely place their child near heavy machinery and large pieces of pipe unless they were
absolutely certain that they would be safe? Now that is confidence in vacuum power.
SEPTEMBER/OCTOBER 2009 | North American Pipelines 29
With all of its safety features and other benefits, it may Growth Factor
seem confounding why some people haven’t considered Vacuum lifting technology seems perpetually growing
vacuum lifting. with no end in sight. But as a safe, efficient and cost-ef-
“Our product is difficult for people to get their head fective method for lifting pipe, why wouldn’t it? Lowman
around. Can vacuum be that powerful? In reality, it’s one of doesn’t see the market going in any other way either.
the strongest forces in nature,” Lowman says. “A lot of the “It’s still tough times in the economy, and a lot of
old time pipeline guys will look at it and say, ‘Oh my gosh, companies are struggling. We can certainly say that we’ve
I wouldn’t lift pipe like that. There’s nothing underneath been able to hold our own because we afford contractors
it, there’s nothing holding it.’ There’s nothing underneath a product that increases their productivity and makes
it — that’s the point.” their jobsite safer,” he says. “When it gets tough out there,
Despite some current stragglers, Lowman sees the switch contractors start looking for better and more efficient ways
to vacuum lifting inevitable over the next 10 years since to do things. They find us.”
vacuum lifting cuts job times and costs and insurance As far as the industry as a whole, he adds, 10 years or less
expenses. Especially in the energy sector, companies have from now, contractors won’t be able to move pipe without
reduced insurance fees by choosing vacuum lifting over using vacuum lifting. Last year was an especially big year
other techniques. Contractors have reported back to for vacuum lifting as more and more people were coming
Vacuworx about their reduction in insurance costs because around to the idea of vacuum technology. Still, compe-
their teams are out of the way of any potential falling pipes. tition exists when you have more than one bidder for a
Not only are external costs slashed, but productivity increas- contracting job.
es exponentially even with a smaller crew working the field.
“We increase the load cycle anywhere from seven to 12
times as fast as traditional methods and can do that with
less people,” Lowman says. “That’s a huge savings.”

Vacuums in Energy
Pipe lifting is imperative in the energy sector, as Vacu-
worx thrives in the oil and gas industry. “You have to have
a way to get the energy source, whether that’s gas or crude
oil, from point A to point B,” Lowman says. “To get it there,
you have to have a pipeline. To efficiently build a pipeline,
you need vacuum lifting.”
Aside from the oil and gas market, Vacuworx has reached
out to municipal utilities, including water and sanitary
sewers, and the plate steel business. Using vacuum lifting
allows for all of the necessary pipes to be lifted with ease, from
concrete, steel, HDPE, fiberglass, ductile iron, plastic, you
name it, with any kind of coating, from tape, FBE, coal tar,
concrete and so on. And because the vacuum’s rubber-type
vacuum pad seal, which is the component that actually makes
contact with the pipe, compensates for inconsistencies and
unevenness in the pipe and must be replaced every couple
hundred hours, all of the pipes’ coatings are kept pristine.
“Chains, swings, straps, hooks, they will scratch the
coatings,” Lowman says. “Anywhere they scratch the
coating on the pipe, they have to repair. So that’s a time
Safety may be the most important factor on a jobsite. Whenever a
saver in itself because our equipment does not hurt the
heavy load is suspended, danger is literally in the air. Vacuums offer
integrity of the coating in any way.” one of the safest and least risky lifting technologies available.
It’s a valid point worth mentioning since a scratched pipe
coating can be costly now and in the future. Some compa- “Where our part becomes very integral in that is if
nies have even gone so far as to write into their contracts they’re using vacuum lifting they can bid the job cheaper
that only vacuum lifting will be used on their jobsites because they don’t have as many employees to do the job as
simply because of coating issues. Methods aside from [someone] who’s not using vacuum lifting,” Lowman says.
vacuum lifting damage pipe coatings, which leave last- The contractor may get a reduction in insurance costs
ing impressions on the pipe several years down the road. because there are fewer employees in harm’s way.
Not only are these scratches costly, but the damaged While the vacuum itself isn’t necessarily inexpensive, the
locations that go unrepaired or are repaired poorly are often benefits it allows you to reap save money in the long run.
fail points in the pipe long after they have been buried. The company offers, in its own words, the lowest cost of
“The U.S. Department of Transportation was doing ownership and has contractors report back to them that the
five-year dig up inspections and finding failures from where Vaculift pays for itself on its first use.
pipe was marred up from chains,” Lowman says. Those five- “I don’t know why there isn’t anyone still not using
year inspections were what sparked current talks between vacuum,” Lowman says. “It’s much faster, it’s much safer
Vacuworx and the Department of Transportation about and it impacts your bottom line heavily.”
future regulations regarding the use of vacuum lifting from
inception to burial to avoid ruined pipe coating debacles Leanne Butkovic is an editorial intern for North American
in the future. Pipelines.
30 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com
For more information go to napipelines.com/info
Finding
Approval
Talking Oil and Gas Regulations
with FERC’s Jeff Wright
By Bradley Kramer
T
he Federal Energy Regulatory Commission (FERC) rest of the application. The pre-filing process truncates the
is the primary permitting agency for the oil and gas overall analysis by six to eight months.
market in the United States. The commission is in During the environmental analysis, FERC looks at anything
charge of approving the construction of natural gas pipe- alive that a project will impact: plants, animals, socio-econom-
lines and storage facilities, regulating the price of transport- ic structures and cultural boundaries. The commission has to
ing oil and gas through transmission lines and enforcing look at whether the project disrupts such things as Native
the marketplace. Jeff Wright, director of energy projects for American burial mounds, waterways or wetlands and other
FERC, spoke with North American Pipelines about how this sensitive terrain. In doing so, FERC consults with other federal
process works and how the trends of the oil and gas market agencies, such as the Bureau of Land Management (BLM) and
affect the commission’s duties. the U.S. Forest Service. An operator needs approval from FERC
Among FERC’s responsibilities is the siting and and BLM if the project touches federal land.
approval of natural gas pipelines in the interest of Working with so many other agencies can add significant
commerce, import and export facilities and connec- time to the approval of an application, but the Energy
tions between the United States and Canada or Mexico. Policy Act of 2005 named FERC as the lead agency for
Wright estimates that there are close to 215,000 miles natural gas projects, allowing the commission to set the
of pipeline and 3.8 billion cubic feet (Bcf) of natural gas schedule for other agencies to follow in order to finish
storage under FERC jurisdiction. permitting. Congress approved the legislation as a measure
Oil pipeline construction approval falls under each state’s to improve infrastructure.
laws, but FERC sets the wholesale rates for oil and gas (and
derivatives) transmission, including U.S.-Canada border Miles of New Pipeline
tariffs, and enforces the market to make sure all entities are This year has been a slow year so far for approving natural
playing nice. gas pipeline projects, Wright says. However, the downturn
Three of the commission’s stated objectives are to is not all because of the recession. Instead, the market is
promote strong infrastructure, support a competitive playing catch-up to the many miles of infrastructure built
market and enforce the market. (or still being built) in the last few years.
“These are like the three legs to a stool,” Wright says. “Sometimes after two or three big years, you see the
“We have to have a strong infrastructure — the physical industry take a step back,” Wright says. In 2008, the
thing that we regulate. We approve projects to allow that mileage of pipelines FERC approved was the third biggest
to be constructed. this decade at 2,140 miles. 2007 was the biggest at 2,700
“Competition is based on rates, which give the operator miles approved. This massive expansion was largely due to
the incentive to build infrastructure, but we make sure that the developments in shale gas production.
those rates are fair to the rate payer.
“Finally, the enforcement aspect is to ensure that every-
one plays the game correctly, according to the rules we’ve
established.”
FERC does not set the price of the end-user commodity —
say, the price you pay at the gas pump when you’re filling
up. That price is set by the marketplace.

Pipeline: Approved
FERC sites natural gas pipelines under Section 7 of the
Natural Gas Act, which gives authority to the commission
for pipeline and storage regulation. Imports and exports fall
under Section 3 of the same act. FERC approves construc-
tion for physical pipeline and storage facilities and works
with the Department of Energy on permitting for new or
expanding natural gas pipelines. FERC also approves the
costs of transmission rates from the operator.
A simplified version of the approval process goes like this:
The applicant — the pipeline owner — comes to FERC with
an idea for a natural gas pipeline from point A to point B,
and a storage facility at point Z. FERC regulates the engi-
neering, environmental impact, accounting and transmis-
sion rates, and then the commission makes a recommenda-
tion based on its review. The five commissioners mull over
that recommendation and then vote on whether to approve
the project. This process can take up to 18 months.
The most labor intensive part of FERC’s application anal-
ysis is the environmental review, which must comply with
the National Environmental Policy Act (NEPA), Wright says.
To help cut down on the application approval timeframe,
FERC offers a pre-file option whereby the applicant can
come in before filing an official application and propose a
project so that the commission can get a head start on the
environmental review while the project owner compiles the For more information go to napipelines.com/info

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 33


So far in 2009, the Federal Energy Regulatory Commission (FERC) has approved only 172 miles of natural gas pipelines, which points to a common
trend after consecutive years of growth as was seen from 2006-2008.
So far in 2009, there have been 172 miles of pipeline In Alaska, there are two projects in pre-filing: Denali
approved, much of that was sited along natural gas storage (ConocoPhillips and BP) and the Alaska Pipeline Project
facilities. No matter how you look at it, 2,140 miles down (TransCanada and ExxonMobil).
to 172 is a massive cutback. However, this same trend was In addition, Wright says some of the current construc-
evident in the years 2000-2003. tion takes on different characteristics. “You might see less
FERC approved 1,100 miles of pipeline in 2000, 2,700 miles of pipeline built, but more capacity,” he explains, as
miles in 2001 and 1,500 miles in 2002, but only 350 miles support lines and storage facilities must be built.
in 2003. Wright theorizes the same is happening after big
years spanning 2006-2008. In the Pipelines Ahead
“Just because things are not being approved does not mean Alternative and renewable sources of energy are major
work isn’t being done,” he says. “There have been 6,000 buzz topics in the news. Will efforts to improve alternative
miles of pipeline built in the last few years. The industry is and renewable energy infrastructure hurt the oil and gas
trying to get things organized.” industry? Not really, Wright says.
Looking ahead, there are many projects pending, as 2,600 “There hasn’t been enough time for alternative or renew-
miles of pipeline are in FERC’s pre-filing stages. able sources to impact the amount of energy that moves in
“We don’t build infrastructure for today,” Wright says. electrical lines,” he says. “We still need natural gas because
“Projects are planned three to five years out from when the you can’t run everything on renewable energy. The sun
capacity is needed.” doesn’t always shine and the wind doesn’t always blow.”
The location for the majority of the current projects under If anything, natural gas will be used more heavily for electri-
FERC’s approval is in the Southeast United States, primarily cal generation because it burns cleaner and more efficiently
Texas, Alabama and Louisiana. The large shale deposits in than other sources. Wright says natural gas infrastructure will
this region — specifically, the Haynesville and Barnett shale continue to grow to support alternative energy measures.
— are what drive these projects. Just gauging from Wright’s overview of natural gas pipe-
It has become more economically feasible to produce line projects that have gone through FERC’s approval since
natural gas from shale because of the commodity price and 2000, you can see how the commission has strengthened
the improvements in technology that have helped lower infrastructure in the United States.
production costs, Wright says. Because natural gas projects have been so successful,
In the Mid-Atlantic region, the last leg of the Rockies Wright says Congress is looking at legislation to make
Express (REX) Pipeline is terminating in eastern Ohio approving electrical transmission lines more like FERC’s
(Lebanon, Ohio), where distribution lines are being built to process for gas pipelines.
transport natural gas to markets on the East Coast. “I don’t think you’ll see any legislation to change how
Wright expects continued interest in building pipelines FERC does natural gas,” he says. “It’s a pretty lean and
that tap the Marcellus Shale in western New York and quick program.”
central Pennsylvania and West Virginia, which dwarfs all
other sources of natural gas in the Southeast at an estimated Bradley Kramer is associate editor of North American Pipelines.
1,500 trillion cubic feet. He can be contacted at bkramer@benjaminmedia.com.
34 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com
November 19–20, 2009
Doubletree Hotel Houston Intercontinental Airport
Many factors determine the success of an HDD project, the majority of which do not involve the actual
breaking of soil. Executive decisions and planning are critical during all phases of a given project –
some unique, some universal. The HDD Executive Forum addresses many of these factors on a peer-to-
peer basis, sharing experiences, guidelines and market condition assessments. This is a conference for
company executives presented by company executives, aimed at the common goal of improving
the bottom line.

The HDD Executive Forum topics include:


• Pricing – what factors you need to consider when putting in a bid

• HDD Good Practices Guidelines – updates and what you need to know
•E
 xisting Utilities – your responsibilities as a driller; what you need to know to avoid them;
the ramifications of a utility strike

• Equipment Purchasing – changes regarding tax laws/incentives; purchase vs. lease vs. rent
• Legal/Environmental Permitting
• Trends in Trenchless Technology – telco/fiber, sewer/water, oil/gas
• Workforce Issues – training staff, staff retention, drug testing, OSHA requirements
• High-tech HDD – the cutting edge technologies that are being used
•R
 ock Drilling – how rock bores are different from soil bores – what you need to know in
putting together bids and planning for the job

• Economic Outlook – economist speaking about the market and the outlook for 2010
• Roundtable – a panel of industry experts discussing the issues that are impacting them, how they
are addressing them and how they are adapting to market conditions

Review the session schedule and register online at


www.trenchlessonline.com/HDD
or call 330.467.7588
Deconstructing
Worksite
Hazards
The Basics of Job Safety Analysis
By George Kennedy

Wouldn’t you rather prevent an accident than investigate it after the fact? That’s what Job Safety
Analysis (JSA) is all about. Also known as Job Hazard Analysis (JHA) or Activity Hazard Analysis
(AHA), JSA is a simple, inexpensive and effective management tool that can be used to identify,
analyze and record: 1) the steps involved in performing a specific job; 2) the existing or poten-
tial safety and health hazards associated with each step; and 3) the recommended action(s)/
procedure(s) that will eliminate or reduce these hazards and the risk of a workplace injury or
illness. The benefits of Job Safety Analysis are well known: identification and elimination or con-
trol of hazards before the work begins; consistent job and safety training; improved employee
safety performance; increased management awareness of safety hazards; improved labor and
management cooperation; improved compliance with applicable regulations; and more accurate
accident investigations.
Which Jobs Should er involvement in company safety activities. Workers in the group are more
Be Analyzed? inclined to promote and follow the established procedures if they are involved
Workers perform many different tasks in creating them. A good time to create JSAs using this method is when work
as part of their job classifications — every- is slow and/or during inclement weather.
thing from setting up ladders and assem- As the name suggests, direct observation method involves observing a work-
bling trench shields to unloading trucks er while he or she performs a specific task. It is best to select an experienced
and entering confined spaces. Each of employee who is willing to be observed. The observer should list each step
these tasks involves different hazards performed by the worker. Cameras and video cameras can be used to record
that could be evaluated. So where to be- the steps for a more in-depth review, but don’t let taking the photographs
gin? Generally, it makes the most sense become distracting to the worker. (Try not to use the flash attachment.)
to first select jobs that have a history of The observer should then note the potential hazards connected with each
accidents, have the greatest potential for step and try to identify changes in the environment or work procedures that
serious injury, are frequently performed, will eliminate potential accidents.
are performed by the greatest number
of employees and are new to those who
will be performing them. Over a period
of time, all jobs can be evaluated. Some
jobs are routine and may require a gen-
eral evaluation. Others may require a
more in-depth evaluation. When tools,
equipment, methods, procedures or job-
sites change, some JSAs may have to be
revised or updated.
Here are just some of the hazards that
should be considered when completing
a JSA: impact with a falling or flying ob-
ject; penetration by sharp objects; caught
in or between a stationary or moving
object; falls from an elevated work plat-
form, ladders or stairs; excessive lifting,
twisting, pushing, pulling, reaching or
bending; repetitive motion; exposure to
vibrating power tools, excessive noise,
cold, heat, harmful levels of gases, va-
pors, liquids, fumes or dusts; exposure to
cave-ins; electrical hazards; light (optical)
radiation (e.g., welding operations); and
water (potential for drowning or fungal
infections caused by wetness).

JSA Methods
There are two basic JSA methods: group
discussion and direct observation. A third
method can be established by combining
the two basic methods.
The group discussion method requires
the manager/foreman to meet with
employees familiar with the job being
analyzed. Each group member draws
upon his or her experience and visual-
izes the job steps and potential hazards.
Sometimes photos or videos of a worker
performing the job are used to help stimu-
late the group members’ thought process-
es. They review the job from start to finish
by breaking it down into steps. The group
evaluates each step to determine the haz-
ards that could lead to an accident.
When the hazards are listed, the group
focuses on the changes in the environ-
ment or procedures that can control or
eliminate the hazard. The advantages
of the discussion method are the many
points of view considered, increased
worker knowledge and increased work- For more information go to napipelines.com/info

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 37


There are several advantages to this method. The observer plementing engineering controls; installing guards; chang-
does not have to know how the job is performed, because ing methods; providing personal protective equipment; etc.
he or she is watching and recording the work steps as they In brief, what will make the job safer to perform? Be specific.
are done. There is less interruption to the work because the Say exactly what needs to be done to correct the hazard, such
observations are performed while the work is in progress. as “lift using your leg muscles.” Do not use general state-
Workers and observers (often managers) also tend to expe- ments like “be careful.” Provide a recommendation for each
rience improved knowledge, communications and mutual hazard. Also, list recommended safe operating procedures
understanding. and appropriate personal protective equipment.

Performing the Job Safety Analysis Whatever JSA method is used the analysis should be
A JSA has three basic phases: 1) list the steps required to properly documented (see www.maricopa.gov/safety/jsa_
complete the job; 2) identify the hazards associated with library.asp for completed samples). Completed JSAs should
each step; and 3) develop solutions for controlling or be reviewed by managers, workers and the safety coor-
eliminating the hazards. dinators to ensure that nothing has been overlooked.
Executive management or safety managers should approve
Phase 1: List the job steps. Every job must be broken any results that will become part of the safety program.
down into distinct steps in the order of occurrence. Once approved, the JSA documents should be shared with
Document enough information to describe each step, all managers, foremen and supervisors to ensure they are
but do not make the breakdown too detailed. Try to limit aware of established company procedures for specific jobs.
the number of job steps to 10 or fewer well-defined steps. Effective toolbox talks can be created by selecting JSAs

Job Safety Analysis (JSA) procedures can help limit the hazards inherent in construction worksites, such as possible impact from
a falling object like pipe.

Each step will consist of a set of movements. For example, appropriate to a given jobsite. Workers tend to take great
“Pick up box and place on hand truck” or “Push hand interest in training that is directly related to what they
truck to storage area.” All steps should start with an action are doing.
word — e.g., push, pull, lift, move, carry, insert, tighten, Time and time again, Job Safety Analysis has proven to
etc. Review the steps with experienced workers to ensure be an effective means of preventing accidents by finding
they are complete and descriptive. and eliminating or controlling hazards before the job is
performed. JSAs can be used to train/retrain employees and
Phase 2: Identify the hazards. Each step should be ex- foremen and to give pre-job instructions. It can help man-
amined to discover any existing or potential hazards. When agers and supervisors develop and improve job methods
listing hazards, don’t just list the obvious hazards; list ev- and procedures, not just in the area of safety, but often in
ery conceivable hazard that could reasonably cause an ac- other areas like production and quality control. Its greatest
cident. Be sure to include health hazards, even though the value is in standardizing work methods and safe operating
potential harmful effects may not be immediate. procedures.
For further information about how to complete a JSA,
Phase 3: Determine how to control or eliminate the refer to OSHA’s Publication #3071 (www.osha.gov/Publications/
hazard. Hazards must be reviewed and recommendations osha3071.html).
made to eliminate or control them. Hazards can often be
minimized by: changing the sequence of steps; modifying or George Kennedy is vice president of safety for the National
changing the tools, machines, equipment or materials; im- Utility Contractors Association (NUCA).
38 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com
For more information go to napipelines.com/equipment-showcase/index

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 39


Product Showcase
Fecon FTX148
Track Carrier
Fecon’s FTX148 offers a
large cab for big machine
comfort in a compact unit
to maximize an operator’s
productivity. And, being
the most fuel efficient in
its class, the FTX148 track
carrier raises profit per acre.
The FTX148 is equipped
with a powerful Caterpil-
lar C4.4 Engine, Fecon’s
Power Management System
and the proven Bull Hog
Mulcher. Get almost twice
the performance of a typical
skid steer and only slightly
larger in size making it ideal
for tight places and trans-
porting. Both cross link
suspended and rigid steel
undercarriage options are
available to meet the de-
mands of your terrain and
site conditions making the
FTX148 perfect for pipeline
and right-of-way clearing.
For more information, visit
www.fecon.com.

Gyro-Trac GT-25XP
Gyro-Trac’s low-ground-pressure, high-speed mulching machines will clear unwanted trees and underbrush in a
safer, more environmentally friendly way. You can complete the job faster, and unlike bulldozers that tear up soils,
Gyro-Trac leaves soil structures
intact, eliminating erosion
and runoff pollution. Gyro-
Trac’s heavy-duty GT-25XP is
powered by a 260-hp Tier III
turbo diesel engine, power-
ful hydraulic pumps and the
latest cutter head technology.
Performance, productivity
and lack of profitability will
never be an issue with the GT-
25XP. Weighing in at 23,500
lbs, the heavy-duty mulching
machine outperforms similar-
ly sized and bigger machines.
The GT-25XP chips away at
hardwoods and softwoods
of almost any size, including
difficult ironwood, hickory,
Australian hardwoods, petri-
fied oak and more. Gyro-Trac’s
machines efficiently mulch
trees and stumps right to the
ground, leaving only a fine,
nutrient-rich mulch behind.
For more information, visit
www.gyrotrac.net.
40 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com
IronWolf 700B
The IronWolf 700B in-
tegrates the mobility and
functionality of a purpose-
built crawler, and the
versatility of the IronWolf
Slasher and Crusher attach-
ments. For site excavation,
clearing and mulching
standing trees, site clear-
ing and preparation, stump
removal, asphalt recycling
and more, the IronWolf
700B stands up to the job in
all types of working condi-
tions. The 700B is powered
with a 700-hp Caterpillar
C-18 engine and rides on
36-in. wide, low ground
pressure tracks, which help
the machine maintain 6.8
psi of total ground pres-
sure. No matter what chal-
lenge you face, the power-
ful 700B creates solutions,
expands capabilities and
opens the door to new op-
portunities. For more infor-
mation, visit www.ironwolf.
com.

For more information go to napipelines.com/equipment-showcase/index

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 41


Rayco T275
Site Preparation
Machine
The Rayco T275 is spe-
cifically engineered to
power both a forestry
mower/mulcher and the
Rayco Hydra-Stumper
stump-cutter land clear-
ing attachment. It com-
bines high horsepower
with heavy-duty hydro-
static systems essential to
producing multi-function
capabilities at profession-
al levels of performance.
On land clearing projects,
the T275 can greatly re-
duce the costs of extract-
ing and hauling stumps
to dump sites. The T275
features a carbide-tipped
fixed-tooth mower and
Rayco’s Monster Tooth
stump-cutter wheel. The
comfortable cab features
heat and air condition-
ing, as well as positive
pressure clean filtered air.
For more information,
visit www.raycomfg.com.

Supertrak Inc. Custom Built Mulching Carriers


Supertrak Inc. has manufactured custom carriers for the right-of-way, land clearing, vegetation management, forestry,
brush-cutting/mulching, fire prevention and numerous other industries and applications as an OEM with Caterpillar for
more than 23 years. Supertrak has added a new line of 140-hp Custom Built Mulching Carriers to its existing full range
of mulching carriers. The SK140TR-C, SK140CTL-C, SK140STR-C and SK140RTL offer a variety of undercarriage arrange-
ments to suit any mulching applica-
tion on any terrain. The SK140RTL
Rubber Tire Mulcher (pictured) is the
perfect right-of-way unit for mulch-
ing in both maintenance and pre-
clearing of vegetation for the pipeline
industry. The unit is small in size and
transportable, but packs extreme cut-
ting power with 140 hp and 40 gpm
at 5,500 psi hydraulic flow in a dedi-
cated closed loop to the mulching im-
plement. The SK140RTL is equipped
standard with Lexan windshields,
all auto-reversing fan systems, supe-
rior noise abatement, superior debris
control, increased fuel tank capacity
and electronic monitoring systems
for all machine functions. The unit
is available with travel speeds reach-
ing upwards of 20 mph. Loader arm
lifting capability allows for ease in
managing vegetation around pipe-
line and fence line structures and
obstacles. The SK140RTL is capable of
using numerous attachments, adding
versatility for all facets of land clear-
ing. For more information, visit www.
supertrak.com.
42 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com
Horizontal Directional Drilling Good Practices
Guidelines – 2008 3rd Edition
The latest version includes a new chapter on design, and other
sections have been updated to include new developments in tech-
nologies. Chapters include:
• Introduction and Background
• HDD Applications and Processes
• Equipment and Materials
• Design
• Bore Planning
• Jobsite Safety
• Troubleshooting and Mitigation
Publisher: HDD Consortium
279 pages/ softbound
Price: $170.00* $153.00 for a limited time only!

Handbook of Pipe Bursting Practice


This book introduces the technique of utility pipe line
renewal by means of pipe bursting and presents the
standard works of relevance.
Publisher: M. Rameil
352 pages/ softbound
Price: $85.00*

In The Trenches: Quick Course to


Construction Inspection
This program will cover the following topics:
• Excavation and Confined Space Safety
• Underground Pipeline Construction Inspection
Publisher: APWA
Interactive CD with Handouts
Price: $115.00*

NUCA’s Trenchless Assessment Guide CD


This time-saving, interactive software is designed to help
utility engineers and designers evaluate the trenchless
construction methods for the installation, rehabilitation or
replacement of buried utilities.
Author: NUCA
CD
Price: $195.00*
*Shipping and handling not included.
Selling price subject to change without notice.
FAE USA PT-200
Imagine having a prime
mover for forestry, construc-
tion and agricultural applica-
tions that allows you to work
on any type of terrain in any
weather. Imagine driving it
in total comfort. Imagine at
last a more dynamic and pro-
ductive way of working. FAE
USA introduces the PT-200, a
smaller and lighter version of
the PT-400, combining power
and functionality for today’s
right-of-way, site-prep and
land maintenance contractors
and organizations. Its 180-hp
engine and track options al-
low the PT-200 to traverse the
most difficult terrain from
steep slopes to swampy areas
that demand excellent trac-
tion and low ground pressure.
Outfitting the PT-200 with an
FAE mulching attachment al-
lows the unit to grind, shred
and mulch wooden material in diameters up to 12 in. — making it an excellent tool for removing unwanted undergrowth,
invasive species of vegetation or even thinning and clear-cut applications. Standard features for the PT-200 include a winch,
back-up camera, reversible fan and mulching attachment. The PT-200 is EPA Tier 3 compatible with low fuel consumption
relative to similar units in its class. For more information, visit www.faeusa.com and www.prime-tech.com.

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44 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com


Business Cards

Horizontal Directional
Drilling Good Practices
Guidelines – 2008 3rd Edition
The latest version includes a new chapter on design, and other
sections have been updated to include new developments in
technologies. Chapters include:
•Introduction and Background
•HDD Applications and Processes
•Equipment and Materials
•Design
•Bore Planning
•Jobsite Safety
•Troubleshooting and Mitigation
Publisher: HDD Consortium
279 pages/ softbound
Price: $170.00 $153.00* for a limited time only!
*Shipping and handling not included. Selling price subject to change without notice

Order Online at For more information about North American Pipelines


www.benjaminmedia.com/book-store advertisers visit the Equipment Showcase at
or Call 330-467-7588 napipelines.com/info

For more information go to napipelines.com/info

napipelines.com SEPTEMBER/OCTOBER 2009 | North American Pipelines 45


North American Pipelines Calendar
The Events Pipeline Conferences, Meetings & Trade Shows

September 19 2010
Tennessee Gas Supply Conference
13 – 17 Tennessee Gas Association January
GIS for Oil & Gas Conference Chattanooga Hotel
Geospatial Information & Technology Chattanooga, Tenn. 11 – 13
Association (GITA) Web: www.tngas.org NUCA Expo ’10
Marriott Westchase Hotel Walt Disney World Dolphin Hotel
Houston 19 – 22 Orlando, Fla.
Web: www.gita.org/oilgas Evaluation and Rehabilitation of Web: www.nuca.com
Pipelines Conference and Exhibition
14 – 18 Pittsburgh Marriott City Center 19 – 21
43rd Annual IPLOCA Convention Pittsburgh Underground Construction
International Pipeline and Offshore Web: www.clarion.org/rehab/rehab09/ Technology (UCT) 2010
Contractors Association main.php International Conference & Exhibition
Fairmont Hotel Tampa Convention Center
San Francisco Tampa, Fla.
Web: www.iploca.org November Web: www.uctonline.com

21 – 24 9
American School of Gas ASTM Symposium on Plastic Pipe February
Measurement Technology and Fittings
Marriott Westchase Hotel ASTM International 15 – 18
Houston Hyatt Regency 22nd International Pipeline Pigging
Web: www.asgmt.com Atlanta & Integrity Management Conference
Web: www.astm.org/SYMPOSIA (Plus Training Courses and Exhibition)
Marriott Westchase Hotel
October 15 – 17 Houston
AEM Annual Conference Web: www.clarion.org/ppim/ppim10/
5–7 Westin Diplomat Resort & Spa main.php
Gas Machinery Conference Hollywood, Fla.
Gas Machinery Research Council (GMRC) Web: www.aem.org 17 – 21
Hilton Hotel PLCA 62nd Annual Convention
Atlanta 19 – 20 Scottsdale, Ariz.
Web: www.gmrc.org/gmc-2006.html HDD Executive Forum Web: www.plca.org
Doubletree Hotel
6–8 Houston 23 – 28
ICUEE Web: www.trenchlessonline.com/HDD DCA 49th Annual Convention
Kentucky Exposition Center Fiesta Americana Grand Los Cabos
Louisville, Ky. December Los Cabos, Mexico
Web: www.icuee.com Web: www.dca-online.org
1–3
Deep Gulf 2009
Moody Gardens Hotel & Resort
Galveston, Texas
Web: www.deepgulfconference.com

Advertisers Index
Advertiser........................................Website......................................................Page # Advertiser........................................Website......................................................Page #
American Excelsior Company.........www.curlex.com..................................................41 Horizontal Technology Inc................www.horizontaltech.com.......................................5
Barbco..............................................www.barbco.com................................................37 John Deere.......................................www.JohnDeere.com/precision.........................48
Benjamin Media Resource Center..www.benjaminmedia.com/book-store.........43, 45 King Contracting Inc........................www.kinghdd.com..............................................17
Darby Equipment Company............www.darbyequip.com.........................................21 Leslie Equipment Company............www.lec1.com.....................................................39
Denis Camif......................................www.deniscimaf.com..........................................25 LJ Welding & Machine.....................www.Ljwelding.com............................................45
Educational Webinar Series.............www.benjaminmedia.com/webinars..................39 Mersino.............................................www.mersino.com..............................................27
Enduro Pipeline Services Inc...........www.enduropls.com...........................................33 Michels Corp....................................www.michels.us...................................................23
FAE....................................................www.faeusa.com.................................................47 Neptune Research, Inc....................www.neptuneresearch.com................................19
Fecon, Inc.........................................www.fecon.com...................................................13 Rain For Rent....................................www.results.rainforrent.com...............................11
Gabe’s Construction Co. Inc...........www.gabes.com.................................................15 REMU USA Inc.................................www.remu.fi...........................................................7
Geospatial Corporation...................www.geospatialcorporation.com.......................31 Rig Source, Inc.................................www.rigsourceinc.com.......................................45
HDD Exeuctive Forum.....................www.trenchlessonline.com/HDD.......................35 Vacuworx International.....................www.vacuworx.com..........................................2, 3

46 North American Pipelines | SEPTEMBER/OCTOBER 2009 napipelines.com


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