SPRING 2011 A MAGAZINE FOR NEXEN EMPLOYEES: A TRIBUTE TO BALZAC Balzac – Looking back Planning for plant retirement People – the heart of Balzac TCF – trust: a community foundation Talking to the neighbours FEATURE SECTION – balzac: the Business, People and the community FEATURE SECTION – Balzac: The Business, People and the community Balzac – Looking back Fast Facts – Balzac gas plant •The Balzac gas plant lies adjacent to Calgary’s northern city limits, just east of Queen Elizabeth II Highway. •The Calgary international airport is 11 kilometres (seven miles) away. •There are 120 wells. •More than 300 kilometres (186 miles) of pipelines. •Sour gas processing facility, including LPG and sulphur recovery. •Delivered more than three trillion cubic feet of natural gas. •Delivered millions of tons of sulphur. •40 plus million cubic feet of gas processed daily over the past two years. •A stand-alone power plant produces enough electricity to supply 100,000 homes with energy (this facility will remain operational). the view of the balzac gas plant from the west stack. Construction of the Balzac gas plant began in April 1961. At the time, the plant was known as the Petrogas plant, for Petrogas Processing Ltd., a separate company set up with numerous partners including Canadian Occidental Petroleum (now Nexen). The Petrogas operating structure, which had become inefficient, was collapsed in 1995 and reverted to a conventional joint venture system. After eight short months of construction, first gas was processed in November 1961. Through the ’60s and ’70s the plant went through a series of expansions but depressed markets in the mid-’80s forced a decommissioning of part of the plant. Now that the 1| THE LEADER – spring 2011 plant is in its 50th year of operation, facing poor market prices, high repair costs and declining production from its wells, all partners agreed to retire the Balzac gas plant. While there’s sadness about the retirement, there’s still a great deal of pride about what has been accomplished at Balzac. More than 3.5 trillion cubic feet of natural gas and millions of tons of sulphur have been processed over the past 50 years. The plant and the gas fields – covering approximately 400 square kilometres (154 square miles), with 300 kilometres (186 miles) of pipelines and 120 wells – have run safely and efficiently since day one. This is not a minor accomplishment, notes Rick Jensen, Nexen’s Vice President, International Production and Development, who was plant manager from 1987-1990. “At one time, Balzac was the flagship of Nexen, the main asset for the company. Now with the International division, oil sands and the Gulf of Mexico, Balzac doesn’t have the prominence it once did. Nevertheless, Balzac has always been a focus. It’s a natural gas plant for Nexen that started out located in a rural area, but as Calgary grew, Balzac became a neighbour to a major city, which meant the sour gas wells and processing facilities had to be operated safely. Engagement with the community was fundamental to the successful management of the entire operation.” Current General Manager of Operations, Bob Simpson, provides further insight into Balzac’s half-century life. “There are countless stories that could be told by many people over the 50 years that the facility has been in operation. From senior and executive management who ‘cut their teeth’ learning the gas and marketing business at the facility to many more whose careers or children’s careers have at one time been enhanced directly or indirectly by what was happening at Balzac.” Balzac over the years. “Ask anyone who has grown to know the essence of Balzac personally, and they will point to a sustained sense of community, pride, professionalism and commitment.” •Over the life of the facility it has been very profitable helping to finance many of Nexen’s growth opportunities in Yemen, the North Sea and the oil sands. And in the end, Bob laments, “Eventually the steel will cool and the skyline will change but this legacy will remain for years to come. In some form or fashion, the Balzac story has provided our organization with a ‘Freedom to Fly’.” The business value that Balzac has brought to Nexen cannot be overstated as many other projects have benefited from the knowledge, experience and cash flow generated from THE LEADER – spring 2011 | 2 FEATURE SECTION – balzac: the Business, People and the community FEATURE SECTION – Balzac: The Business, People and the community Planning for Plant Retirement a panoramic view of the balzac gas plant. A gas plant is all about the gas, and in Balzac’s case declining production from the gas field means the economics are no longer favourable. But that’s not to say Nexen didn’t try to extend the life of the plant. Over a 15-year period beginning in the 1980s, Nexen tried five times to combine the production from sour gas plants owned by other companies. There was renewed optimism in 2006 when Nexen undertook an ambitious strategy to license 15 new sour gas wells and five new pipelines. Unfortunately, 3| THE LEADER – spring 2011 results from the first wells drilled were disappointing and the project was cancelled. In addition to declining production, urban encroachment was another factor considered when determining the future of the plant. In 1961, Calgary’s population was 250,000. Today about 1.3 million people live in the Calgary area, and the Balzac gas plant is longer isolated from the city; it is on Calgary’s doorstep. Some of the gas wells are now in the middle of residential communities. Nonetheless the plant, wells and pipelines have an impeccable safety record. When the plant stops producing gas in May 2011, the abandonment and reclamation process begins in the plant and field. Planning for shutdown, decommissioning and salvage is underway led by Larry Fraser’s team in the plant and Ray Rowland’s operations team in the field. This phase involves the safe shutdown of equipment and thorough equipment and pipe cleaning. Non-protected wells, pipelines and equipment will be abandoned, following strictly regulated procedures for shutdown and remediation of the land. Pipelines will be cleaned out and cut off but not removed. The final stage is remediation and reclamation, managed by Greg Dehnam’s team, who will return the land to a state suitable for a final end use. The end land use for the plant site has yet to be determined but options include industrial land site, agriculture, a park with a wetland, or a residential development. Nexen will make a recommendation for the end land use based on a wide-ranging consultative process with internal and external stakeholders. In the meantime, the plant continues to operate safely. “We are proud of what we have accomplished over the years, making sure we all go home safe, uphold our commitment to Responsible Care® and maintain our excellent reputation with the community and regulators,” says Bob Simpson, Balzac General Manager for Operations. emotional and difficult time for employees. People have worked here for a long time, the plant is a very important part of their life and they see each other as family. The morale I’ve seen and the way people have stayed focused on maintaining safe and good operations is amazing. The level of professionalism at Balzac is second to none.” Andrew Hamilton, Project Manager for Balzac Abandonment and Demolition, echoes Bob’s sentiments. “This is a very THE LEADER – spring 2011 | 4 FEATURE SECTION – balzac: the Business, People and the community FEATURE SECTION – Balzac: The Business, People and the community Janet Lillies, Materials Purchasing Co-ordinator checks inventory at the Balzac Gas Plant warehouse. PEOPLE – THE HEART OF BALZAC The Balzac gas plant’s iconic incinerator stacks were clearly visible from Brian McAusland’s family home in Calgary’s Huntington Hills subdivision although the plant was in a rural area. “We had just moved to Calgary from Edmonton, and I needed a summer job. I landed a job at the plant as a labourer.” That job paved the way for employment every summer when Brian returned to Alberta from college in California, where he had a baseball scholarship and was studying pre-medicine. But tragedy struck in two consecutive years – first with the death of his father and then his mother. “My younger brother and sister were still living at home. I didn’t return to school so I could look after them but I needed a job. I met Balzac’s gas plant Field Superintendant, Joe Trac, and he just said, ‘You can start right now – did you bring your boots and lunch?’ Those guys were family to me. They treated me like I was one of their own. For me, the 5 | THE LEADER – spring 2011 ‘company’ was the guys I worked side-by-side with, through thick and thin.” we talked to landowners, management came along. Everyone chipped in.” Brian started in the field, became Field Superintendent and eventually Plant Manager and is now Nexen’s Responsible Care® Manager. “I consider many of the people I worked with, whether in the field or plant, as being legendary contributors to this company,” says Brian. Current General Manager of Balzac Operations, Bob Simpson, reflects about the people and operating environment. “For me, the Balzac facility has been a paternal symbol for our organization over the years — it’s been the cash flow from Balzac that has provided funding for new growth projects, the exposure of people to our field applications, and it’s our public reputation and the pride in our organization and doing the right thing.” Don Gabruck also started at Balzac as a summer student. After graduating from SAIT in 1971, Don worked vacation relief. By August he had a permanent job; he retired from Balzac in 2004 but is back at the plant helping out with the decommissioning work. “It was a great place to work,” says Don. “That’s why people like me stay at Balzac for 20, 30 years.” “The attitude at the plant was if something needed to be done, you did it. We did a lot of good things outside the plant too. When In Bob’s 32 years working for Nexen, he has seen many incredible employee contributions and achievements in support of our culture and values. “Since we announced Balzac’s retirement, I’ve witnessed tremendous resiliency and dedication of employees at this facility in a time of change and uncertainty. I am proud to be associated with them. It has been a highlight of my career and their finest moment.” Talking to the Neighbours “I’ve always been impressed with how Nexen reaches out to the community. The Balzac gas plant has been a very good neighbour to Calgary. It’s disappointing to see the plant retire,” says Jim Stevenson, Calgary city councillor for the neighbouring community adjacent to Balzac. The Balzac plant’s excellent track record is also recognized by Alberta’s industry regulator, the Energy Resources Conservation Board (ERCB). “It’s a testament to Nexen and their operating practices that public complaints regarding operations at the Balzac gas plant have been minimal,” says Brad Olive, team leader of the ERCB’s Midnapore Field Centre. “This is a benchmark that indicates the relationship they’ve built with the community.” Another feather in Balzac’s cap is Nexen’s work on the Balzac Crossfield Expansion Public Consultation project. Nexen’s project team was committed to demonstrating that such a project (15 new sour gas wells and five new pipelines) was viable and achievable through careful planning and consideration of the needs of all stakeholders. As a result of their success, the ERCB granted Nexen unrestricted approval for its Balzac Crossfield Expansion application in 2009. This achievement was recognized by a 2009 award for Social Performance from the Canadian Association of Petroleum Producers (CAPP). Ray Maceachern, team lead – surface land agents, (left), and Judy hutchinson, surface land agent, (right), meet with john church (centre) a land-owner near the balzac gas plant. THE LEADER – spring 2011 | 6 FEATURE SECTION – balzac: the Business, People and the community a brief history of the balzac gas plant FEATURE SECTION – Balzac: The Business, People and the community 1954 1957 1959 Discovery of sour gas by Mobil a few kilometres from what was to become the Balzac gas plant. Crossfield sour gas and Elkton fields discovered by Jefferson Lake. Jefferson Lake and Mobil form a partnership to produce and sell 100 million cubic feet of gas from Crossfield and Elkton. 1960 1961 1961 1962 1965 1967 1968-1969 1971 1975 1976 1986 1990 Petrogas Processing formed from agreement with 28 local area operators including Jefferson Lake. Debottlenecking to allow operations to be at maximum design rates in both winter and summer conditions. Plant construction at the Balzac gas plant site begins, and is supervised by Plant Manager Jim Leeper from Jefferson Lake. Canadian Occidental Petroleum (now Nexen) created by a merger between Jefferson Lake Petro Chemicals of Canada and New Hooker Canada Ltd. Construction is completed by 500-600 workers at a cost of C$13 million and wells costing $3.5 million. First gas is produced. Construction of more compression for higher levels of sulphur recovery. 1992 1995 2000 2006 2007 -2008 2009 Balzac makes news with ground breaking public consultation process. Balzac Crossfield Expansion Project plans for multi-well drilling program. Results from first wells are disappointing and the program is cancelled. 7| THE LEADER – spring 2011 Petrogas Processing Ltd. is collapsed and returns to a joint venture arrangement – becomes known as the Balzac gas plant. Two-stage compression work. Major sulphur plant work completed. Nexen forms a joint venture with then-PanCanadian Petroleum (now Encana) to construct an electric power generation facility at Balzac. Nexen recognized for community engagement and public consultation efforts during the Balzac Crossfield Expansion Project. Petrogas Balzac gas plant officially opened by then-Alberta Premier Ernest Manning with 700 guests attending. Production unit built to produce 110,000 tons of sulphur pellets per year. 2001 Power generation facility begins operations. 2010 Nexen reviews viability of the Balzac gas plant and announces plans to retire the plant. Occidental Petroleum buys Jefferson Lake Sulphur Company. LPG facilities are installed. Petrogas celebrates 25th anniversary. Depressed market conditions force shutting down part of the plant. 2002 Balzac is the first upstream oil and gas facility in the world to be Responsible Care® verified. 2011 Balzac gas plant retires at the beginning of May. Plant expansion includes additions to the gas treating, sulphur recover and LPG units. Second Crossfield formation discovered. Plans for: •Horizontal drilling •3D seismic 2003 -2004 Drilling of solid sulphur. 2011 Decommissioning, salvage and demolition of the Balzac gas plant begins at the end of May. THE LEADER – spring 2011 | 8 FEATURE SECTION – balzac: the Business, People and the community Balzac’s unsung heroes When Lead Operator Ken Kolibar reflects on his 35 years working at Balzac, his thoughts are on the operators who came before him. “I totally admire the people who worked at the plant for the first 15 years. Fellows like Cliff Hawkey, Terry Valen, Scotty Johnstone, Larry Fox and Ian Longmuir.” The plant was up and down – there were challenges. They were modifying it all the time until they got things streamlined. Ken was hired in 1976 and it was the early plant workers who taught him the ropes. “Absolutely nothing phased them. If anything happened, they just said ‘Let’s go fix it.’ At that time, nothing was written down, there were no training manuals. Everything was in their heads. The company was lucky to have them and I was so fortunate to have these experienced guys teach me. As a young guy coming in, they were an inspiration.” FEATURE SECTION – Balzac: The Business, People and the community Rural traditions Rodeo and farm life make up the fabric of rural Alberta. And, this is especially true for the communities around the Balzac gas plant. Every year Nexen helps organize a free community Stampede breakfast. A favourite throughout southern Alberta, a typical Stampede breakfast consists of bacon, sausages, pancakes and scrambled eggs. Brian McAusland, former Balzac Plant Manager, was one of the visionaries behind making the Stampede breakfast a tradition. “We wanted this to Bob simpson, general manager, balzac gas plant operations, be a community event serves pancakes with the community mascot, balzac billy. rather than just a ‘Nexen’ event for the community, so we contacted a number of local businesses and organizations to provide many of the services that we needed to pull this off.” “Our small group of community organizers would be at the Balzac hall the night before the event, pre-cooking sausages, mixing pancake batter and hand-cracking more than 100 dozen eggs,” says Brian. “Although it was hard to look at another egg for the next six months, it was a lot of fun.” 25 years later: Many of the dedicated men and women in this 1986 shot are still working at the Balzac gas plant. 9| THE LEADER – spring 2011 Nexen in the community •Balzac gas plant employees are often seen as “Citizens on Patrol” in recognition of helping members of the community with broken-down vehicles and grass fires. •Nexen is a proud member of the Balzac Community Advisory Panel (BalCAP). Topics such as fire prevention, changes to local roads and highways, proposed commercial construction and agriculture news are discussed. •In 1992, Nexen launched extensive public consultation programs to address local area concerns about health and safety. Some of the groups Nexen met with included leaders of various northeast Calgary communities, fire and police departments and government representatives at the municipal, provincial and federal levels. •Nexen supports the annual Groundhog Day breakfast where the community mascot, Balzac Billy, visits every year to predict the arrival of spring. •Well site work uncovered two archeological sites. Archeology students from the University of Calgary spent 10 summers excavating one of the sites to learn more about Alberta’s First Nations and Aboriginal heritage. •A nearby community playground site was prepared by Nexen employees and contractor volunteers. •The Balzac gas plant uses local suppliers for catering, event space and entertainment needs. Attendance at the first Balzac Stampede breakfast was approximately 300 and by 2009 that number had grown to 1,500. In 2010, the breakfast was moved to a local shopping centre and there were more than 4,500 attendees. THE LEADER – spring 2011 | 10 FEATURE SECTION – balzac: the Business, People and the community SUMMER STUDENTS LEARN THE ROPES FEATURE SECTION – Balzac: The Business, People and the community Sharing the spirit of Christmas When Christmas rolls around each year, a group of employees at the Balzac gas plant get ready to do some shopping, but not for each other. A few years ago, Balzac employees started the Christmas tradition of participating in an annual Adopt-a-Family Program. A local charitable organization provides a brief description of the families including the number, ages and gender of family members. And that’s when the fun starts and the shopping begins. When one of the longtime Balzac operators went to a new dentist last year, he was surprised to see a familiar face. Turns out the dentist had been a summer student at Balzac. “We’ve had summer students who went on to become dentists, geologists, engineers, engineering technologists, trades people, just about any career you can think of,” says Ray Rowland, Balzac Field Superintendent. Hundreds of summer students have worked at Balzac over the years and the plant has a 11| THE LEADER – spring 2011 reputation as one of the best summer experiences available. In return, the students received a complete education – not only technical training but exposure to the work ethic behind Balzac’s “This was never a make-work program,” says success. “We have a lot of ownership in what Ray. “The kids worked right alongside field we do and it rubs off on the students,” says operators on shift. They learned the jobs, Ray. “They see the dedication, the ownership, they took the training. They were a huge part what it takes to be an effective member of of the development of Balzac. We wouldn’t a team. Moms and dads would come to our have accomplished what we did without the open houses and tell us how impressed they summer student program.” were. I like to think we had an impact.” •At one time there was only one stack. The two stacks seen today were constructed later and the first stack was taken down. “Although we enjoy the process of selecting and buying everything, the best part is knowing that we have made a difference in people’s lives,” says Jaymie Richardson, Administration and Compliance Co-ordinator. It’s not unusual for employees to hear back from the families they adopt. “We received a thank you card from a family who had a connection to the Balzac plant years ago. When the family found out we adopted them, they were especially touched.” Responsible Care the dedication and pride of ownership exemplified by employees like ray rowland, impacted hundreds of summer students at the balzac gas plant. Stack facts – Iconic Calgary landmarks ® In 2002, the Balzac gas plant was the first upstream oil and gas facility in the world to be Responsible Care® verified. Responsible Care® is a voluntary global initiative established to improve health, safety, social and environmental performance. •At 121 metres tall (400 feet), the stacks were the tallest structures in Alberta when built in 1961. •Used by Calgary air traffic controllers as markers for aircraft. •Constructed during a single, continuous pour of reinforced concrete. •The highest temperature reached is 538˚ Celsius (1000˚ Fahrenheit) to help burn exit gas to convert to sulphur compounds. •The stacks measure eight metres (27 feet) wide at the base and three metres (nine feet) wide at the top. •Last painted in 2002 and took nearly 1,500 cans of paint and 300 hours to paint. •Halfway up the west stack is a peregrine falcon nest. Since 1995 the Balzac peregrines have hatched 46 new chicks. At the time, Brian McAusland was plant manager; he is now Nexen’s Responsible Care® Manager. “Responsible Care® demonstrated to the company that we really knew what we were doing at Balzac. We had open relationships with neighbours, we were implementing a lot of technical innovations, and process safety was of utmost importance. We actually had the ethic of Responsible Care® already. What we did was put the management system in place. After Responsible Care® came in, when the phone rang, you had the confidence that no matter who the caller – a regulator, a neighbour, or one of the guys in the field – you would know what you needed to do.” THE LEADER – spring 2011 | 12 FEATURE SECTION – balzac: the Business, People and the community FEATURE SECTION – Balzac: The Business, People and the community TCF – Trust: a Community Foundation TCF usually refers to trillion cubic feet . But when it comes to Nexen’s involvement in the community, tcf could also refer to trust: a community foundation. organize appointments with his neighbours so they too could understand what we were doing. A lot of mutual respect can be earned if both parties take the time to talk.” Balzac employees were active in the community. “It wasn’t unusual for us to plow the snow on the local roads, in the parking lot at the community hall and our neighbours’ driveways.” Brian recalls fondly, one summer when a field crew helped a neighbour with her portable pump so that she was able to water her trees. “She didn’t have the proper fittings for the hoses. It was a minor thing for our employees to help her out, but the gesture went a long way in building a relationship of respect with her and her family.” an environmental study group monitors air, water and soil quality around the balzac gas plant. Brian McAusland, Responsible Care Manager, was plant manager at Balzac for more than 10 years. “One of the early lessons I learned was that the community viewed any activity thought to be associated with oil or gas in the area to our operations. Did seismic contractors (whether they were working for us or not) leave a gate open? Neighbours called us. Did pipeline construction workers drive through the pasture instead of on the right of way? We got a call. Did rig activity kick up dust? Again, we were called. We took the calls, got to the bottom of issues and checked back to make sure things were resolved. Although we did not have control or sometimes even knowledge of what other operators were doing in the area, we made the decision to get out in front of issues. We took a ® 13| THE LEADER – SPRING 2011 leadership role in seeing that things were done responsibly.” Building a foundation of trust takes time and requires effort. “At one open house, we had a gentleman who was upset with Nexen. He wanted all the neighbours to sign a petition to stop our development. Both myself and our Balzac safety coordinator left right from the open house and spent a couple hours with him,” says Brian. “We drove to the nearest well site and explained the entire process to him: the purpose of the equipment, the safety and environmental precautions we took and even how the plant control room can remotely shut down a well.” Although he’d been vehemently opposed to Nexen, the resident went on to become one of the plant’s greatest supporters. “He insisted on helping “Balzac employees went out of their way to make sure we were good neighbours,” says Brian. “One cold winter night, not far from the plant, one of our guys reported that someone drove their vehicle off the county road, across the ditch and through a neighbour’s barbed-wire fence. The vehicle was gone. Although it could have been anyone from the public or from one of the other businesses in the area who travel that road and went through the fence, we made sure the pasture was secured that night and had the fence repaired permanently the next morning. We called the landowner to let him know and he really appreciated our actions. In fact, he wasn’t even aware the fence was down before we called. Just neighbours being neighbours.” In the 50 years that Balzac has operated, we’ve produced millions of tons of sulphur and trillions of cubic feet of gas. In Brian’s eyes however, we also produced tons of respect and trust in the community. glenna ferguson, senior administrator – SAP, Jaymie Richardson, administrator and compliance co-ordinator, and lynn mcqueen, analyst–social responsibility, represent nexen at the farm women’s conference the balzac community centre used for many community events and is supported by the generosity of nexen over the years. the centre of the community Less than a 10-minute drive west of the Balzac gas plant site stands a white community hall. Like the site, it’s been around for many years and it’s the heartbeat of the community. Weddings, funerals, dance recitals, scout meetings, political debates, stampede parties – these walls have seen it all. In addition to helping with maintenance work and plowing the parking lot in the winter, the Balzac gas plant employees and contractors have been involved in the community hall for years. In 2005, they built a new cookhouse beside the hall. “Our employees and contractors did an outstanding job in developing the design and engineering – it’s probably the best engineered cookhouse in all of Canada,” says Glenna Ferguson, Senior Administrator, SAP at the Balzac gas plant. In 2010, a new commercial stove was purchased and installed at the hall with donations from the annual Balzac Stampede breakfast. The support and generosity of Nexen employees and contractors has helped pump new life into the community hall. Keeping families happy For many women living in the communities around the Balzac gas plant, the Farm Women’s Conference is a highlight each year. The day is filled with workshops, socializing and lots of laughter. As a sponsor of the conference for more than five years, Nexen proudly supports the women in the community. “It’s a great opportunity to hear from women in the community. Women at the conference make a special effort to visit the Nexen booth and thank us for participating,” says Glenna Ferguson, Senior Administrator, SAP at the Balzac gas plant. Over 300 attendees come to hear about the latest agricultural and land management news, learn new skills and visit with friends. Seminar topics include self-defence, farm accounting and tips on healthy living. THE LEADER – spring 2011 | 14 Pencil crayon artwork by ali simpson Summer student at the balzac gas plant
© Copyright 2025 Paperzz