INNOVATION ON TRACKS Join the Movement: Terramac’s RT9 is Now Available! Built in North America to be the best in its class, this rubber track carrier sports a powerful 230 HP Cummins engine, an impressive drive torque and a 9 Ton carrying capacity. Terramac is committed to providing more safety, reliability and versatility to its customers. To find out more about the Terramac RT9 carrier, call or visit our website today. BROUGHT TO YOU BY: 630-365-1649 | www.terramac.com | www.rigsourceinc.com Published by Benjamin Media Inc. Volume 5 Issue 7 July 2012 ON THE COVER: Two Astec Industries companies may provide vastly different technologies, but American Augers and Trencor share a common mission. 22 HDD vs. Trenching? Not Quite American Augers and Trencor are dedicated to manufacturing rugged equipment for pipeline installation. By Bradley Kramer FEATURES 28 Who Will Pay for Future Natural Gas Pipeline Capacity? A look at the financial impact of building infrastructure to meet energy demands. By Greg W. Hopper 32 Bucket Wheel Speeds Production for Texas Pipeliner Bottom Line Services increases efficiency for 60-mile installation. By Curt Grandia 36 Over the River Michels’ planning process ensures a successful river crossing project in southwestern Pennsylvania. By Jill Badzinski DEPARTMENTS COLUMNS 8 PLCAC Newsletter 6 Editor’s Message 10 News 20 Project Roundup MARKETPLACE 40 Product Showcase 46 Calendar 45 Business Cards 46 Index of Advertisers North American Oil & Gas Pipelines (ISSN 2166-6334) is published twelve times per year. Copyright 2012, Benjamin Media Inc., 1770 Main St., Peninsula OH 44264. USA All rights reserved. No part of this publica- tion may be reproduced or transmitted by any means without written permission from the publisher. One year subscription rates: complimentary in the United States, Canada and Mexico. Single copy rate: $10. Subscriptions and classified advertising should be addressed to the Peninsula office. POSTMASTER: send Changes of Address to North American Oil & Gas Pipelines, P.O. Box 190, Peninsula OH 44264 USA. Canadian Subscriptions: Canada Post Agreement Number 7178957. Send change address information and blocks of undeliverable copies to Canada Express; 7686 Kimble Street, Units 21 & 22, Mississauga, ON L5S 1E9 Canada North American Oil & Gas Pipelines Magazine is not affiliated or associated with North American Pipe Corporation of Houston, Texas. 4 North American Oil & Gas Pipelines | JULY 2012 napipelines.com Griffi n Offers Innovative Need-Based Dewatering Solutions Full Service Provider – Construction Dewatering, Remediation Services from Design to installation Stormwater Systems, Groundwater Treatment, through completion Slurry Trenches, Drilling Services, Relief Wells, and Pump Equipment Manufacturing Griffi n Manufacturing Division that incorporates our capability from Research and Design Design, Modeling, and Consulting for Construction Dewatering, Remediation, Relief Wells, and Pumping Construction Services Griffi n Construction Services Group Toll Free Nationwide: 1-800-431-1510 Construction Management Services for e-mail: griffi n@griffi ndewatering.com Groundwater Control, Remediation, Landfi ll Gas, Web: www.griffi ndewatering.com and Leachate Systems Turn-key Contract Since 1934 Sales 8 Locations Coast to Rentals Coast Editor’s Message Publisher Bernard P. Krzys The Solace of Associate Publisher Robert D. Krzys Sensible Studies Editor James W. Rush Call it the “Tale of Two Studies.” The fears over hydraulic Associate Editor fracturing are still causing public outcry about the poten- Bradley Kramer tial pollution of precious potable water sources. The people Contributing Staff Editors crave information — some indication that progress in energy Sharon M. Bueno production won’t spell disaster for future generations. Andrew Farr In November 2011, the U.S. Environmental Protection Agency (EPA) an- Keith Gribbins nounced it would conduct a study of hydraulic fracturing and its possible effects Pam Kleineke on drinking water resources. The EPA listed seven shale plays that would serve as Kelly Pickerel case studies for the project, including the Marcellus region in Bradford, Susque- Production Manager hanna and Washington counties, Pa.; the Haynesville shale in DeSoto Parish, La.; Chris Slogar the Bakken play in Killdeer, N.D.; the Barnett shale in Wise County, Texas; and the Raton Basin in Colorado. A progress report is due out later this year, with final Graphic Designers Nicole Davis draft of the study due in 2014. Sarah E. Hayes Earlier this month, however, the American Petroleum Institute (API) and the Elizabeth C. Stull American Natural Gas Alliance (ANGA) released the results of an independent review of the EPA’s research methodology and called for more collaboration be- Marketing Director tween the government and the energy industry. Kelly Dadich To conduct the review, the API and ANGA engaged Battelle Memorial Insti- Regional Sales Managers tute, a non-profit science and technology research and development organiza- Ryan Sneltzer tion, which found deficiencies in the EPA’s methods. The two associations have Dan Sisko consistently raised concerns with the EPA’s approach, which the groups say are Audience Development Manager validated in Battelle’s review. The independent report, released July 10, specifi- Alexis R. White cally cites lack of collaboration and transparency as a key weakness in the EPA’s Web & Interactive Manager current plan. Mark Gorman “This is a study with potentially great significance to our nation’s energy fu- ture, and it must be pursued with the utmost scientific rigor,” said ANGA presi- Conference Event Coordinator dent and CEO Regina Hopper. “The Battelle analysis clearly shows that we aren’t Vicki Losh there yet. But we can get there, and we must get there.” While the lack of collaboration was derided in the EPA’s plan, the U.S. Depart- Editorial Advisory Board ment of Energy should be applauded for partnering with an unnamed drilling Cortez Perotte company in southwestern Pennsylvania to study whether drilling fluid can seep Pipeline Product Engineer/Industry Representative, Caterpillar Inc. up from more than 8,000 ft underground into a testing area 4,000 ft down. If the study concludes the drilling fluids don’t reach the testing area, researchers Todd Porter Vice President of Business Development, say there will be no need to test drinking water aquifers, which are closer to the New Century Software Inc. surface. The participating drilling company is giving researchers access to a commer- Eric Skonberg Principal Engineer, Trenchless Engineering Corp. cial drilling site, allowing scientists to conduct baseline tests, add tracing ele- ments to hydraulic fracturing fluids and conduct follow-up monitoring to see if Don W. Thorn President, Welded Construction LP the fluids migrate upwards or sideways from the Marcellus shale. Some reports say that it could take hundreds of years for drilling fluid to mi- Kevin Waschuk grate to the level of drinking water sources. Finally, a sensible study seeks to find Vice President, Waschuk Pipe Line Construction Ltd. out the truth. The results of this study could serve to quell fears and build further Bob Westphal acceptance among the public. Thanks to collaboration between researchers, gov- Senior Vice President, Michels Corp. ernment entities and the energy industry, progress won’t be such a dirty word. If Editorial & Advertising Offices only the EPA would seek such a coordinated effort. 1770 Main St., P.O. Box 190 Peninsula, OH 44264 USA (330) 467-7588 • Fax: (330) 468-2289 www.napipelines.com e-mail: [email protected] Reprints Brad Kramer Wright’s Media Associate Editor Ph: 877-652-5295 [email protected] Fax: 281-419-5712 BPA Worldwide Membership Applied for February 2012 6 North American Oil & Gas Pipelines | JULY 2012 napipelines.com We’re changing the face of inline inspection …with a whole new look at seam assessment and narrow axial defect detection. SpirALL™ MFL Technology Patent-pending SpirALL MFL Technology lets you see what you’ve been missing. At TDW, we believe in total pipeline integrity solutions. Solutions driven by advanced multi-dataset capabilities. Leading- edge data analysis. And best-in-class support services. After all, inspection technology is only as good as the people behind it. And we think ours are the best. For more information about our entire line of pipeline integrity solutions, contact your nearest TDW representative or visit www.tdwilliamson.com. Nick Fenstermaker TDW Data Analyst GLOBAL PIPELINE INTEGRITY CENTER: 801-747-1400 NORTH & SOUTH AMERICA: 918-447-5500 EUROPE/AFRICA/MIDDLE EAST: 32-67-28-36-11 ASIA/PACIFIC: 65-6364-8520 OFFSHORE SERVICES: 832-448-7200 ®Registered trademarks of T.D. Williamson, Inc. in the United States and other countries. / TM Trademarks of T.D. Williamson, Inc. in the United States and other countries. Nick Change-the-face Ad 2012 NA Oil Gas.indd 1 6/8/12 8:46 AM Pipe Line Contractors Association of Canada NEWSLETTER Canadian Pipeliners Celebrate 58th Annual Convention David Kavanaugh, president of O.J. Pipelines Canada, was inducted as the 2012-2013 PLCAC president during the evening gala at the PLCAC Convention, June 7, in Whistler, British Columbia. PLCAC Inducts New President David Kavanaugh Takes the Reins for 2012-2013 David Kavanaugh, president of O.J. Pipelines Canada, was inducted as the 2012-2013 More Than 350 Met in Whistler, During the PLCAC president during the British Columbia, for Event General Meeting, convention’s evening gala event John Carruthers, on June 7. Kavanaugh takes over president of Delegates from Canada’s oil and gas for 2011-2012 president Nick de pipeline industry gathered June 3-7 in Enbridge Northern Gateway Pipelines, Koning, president of Robert B. Whistler, British Columbia, to discuss the presented about Somerville Co. Ltd. state of petroleum supply and the future of the proposed In 2006, Kavanaugh was installation projects during the 58th annual $5.5 billion dollar appointed president of O.J. convention of the Pipe Line Contractors Northern Gateway Pipelines Canada and its Pipeline to construct Association of Canada (PLCAC).