TransGas LINK Issue 45 June 2003

I S S U E
J U N E
Lots to Celebrate in the
Shackleton Community
1-2
GoodBye to Gay Patrick
3
TransGas Rated Top Western
Canadian Pipeline Company
in Survey
4
A convenient way to call before
you dig!
4 5
2 0 0 3
Lots to Celebrate
in the Shackleton
Community!
5-6
TransGas Investment Policy
6
Storage to TransGas Energy
Pool Update
7
TransGas Constrained Areas
And Transport Queues
8
Transport & Storage Update
8
The Cabri Event was well attended by the community.
DID
YOU KNOW ?
That recent total Saskatchewan gas
production transported on the TGL
system of approximately 700 TJ/d is
the highest since November 1995!
DID
Things were hoppin’ about forty miles North West of Swift Current,
Saskatchewan, on June 6th - a community that has felt the effects of a lot of
natural gas activity! Hotels and restaurants are filled, local suppliers are busy,
and much more. That’s why TransGas, in conjunction with some of the
producers involved in the area, held a luncheon in Cabri to celebrate the success
of the Shackleton project from our point of view and the producers’ point of
view. We also wanted to inform everyone about Shackleton II, the additional
infrastructure that is already underway, and to say ‘thanks’ for all of the
community support we’ve received.
YOU KNOW ?
That during mid-March, 2003, the
TransGas storage customer inventory
was at a historic lowest level ever at
7% of full?
Left to Right: Clayton Woitas (Profico), Energy Minister Maynard
Sonntag, Dean Reeve (TransGas)
w w w . t r a n s g a s . c o m
Y
O
U
R
L
I
N
K
T
O
S
U
C
C
E
S
S
I S S U E
J U N E
4 5
2 0 0 3
Left to Right: Gary Mason (Profico Energy), Minister Maynard Sonntag, Barry Rudd (TransGas) and
Clayton Woitas (Profico Energy)
Why so much celebration? The majority of Shackleton production began less than one year ago and the field is now
producing about 80 TJs/day (enough gas to heat nine out of 10 homes that use gas in Saskatchewan). Today,
Shackleton accounts for about 12% of TransGas’ total throughput - and it looks like that number is growing! Clayton
Woitas, president of Profico Energy Management, noted that almost all aspects of the Shackleton play have exceeded their
expectations.
2
This level of production certainly has a positive impact on TransGas, in terms of additional transport revenue, but also
creates many other benefits for the province and the local area. In addition, the success at Shackleton has brought more
industry attention to Saskatchewan! This is evident through the increased Land Sale activity as companies are bidding on
Crown mineral rights in gas prone areas in the province.
The Open House event was well-attended with about 180 people
staying for lunch at Cabri Community Hall. Saskatchewan
Energy Minister Maynard Sonntag addressed the group along
with TransGas’ Executive Vice President, Dean Reeve, Clayton
Woitas (Profico) and Glen Volk (Cavell). Donations were
provided to both the Cabri and Abbey schools. We even got
TransGas employee and former Roughrider, Roger Aldag to sign
TransGas footballs! Everyone had a great time. And why not?
There’s lots to celebrate!
Left to Right: Minister Sonntag and Gary Mason
Roger Aldag signs footballs given away
at the luncheon.
The local band “The C Notes” supplied the entertainment.
Y
O
U
R
L
I
N
K
T
O
S
U
C
C
E
S
S
We would like to take the opportunity to say a HUGE
‘Thanks’ and to honor Gay Patrick, former Chairman of
Saskatchewan Industrial Gas and Power Users Association
(SIGPUA) and a member of TransGas’ Customer Dialogue
since its inception. Gay has been a key contributor to the
evolution of TransGas’ transmission and storage business
in Saskatchewan for years. He has been an integral part
of a group that has given many hours to the shaping of
TransGas’ business to best meet the needs of our
customers. And we will miss Gay’s input! He always
represented his company and SIGPUA with great vigor, and
his matter-of-fact, common sense approach will be missed
around the Dialogue table.
Patrick
Gay has been a great friend to our employees and our
company. Thanks for everything and good luck in your
new role at Potash Producers!
3
Gay
Left to Right: Dean Reeve, Ron Clark, Gay Patrick
and Daryl Posehn
Chris Mitchell (TransGas) says goodbye
to Gay
Left to Right: Gene Setka, Gay Patrick and Jullian Olenick
Good
Luck!
Y
O
U
R
Left to Right: Dennis Lee (AltaGas), Brad Ryan (Husky),
Phil Sandham (TransGas) and Debbie Brown (TransGas)
L
I
N
K
T
O
S
U
C
C
E
S
S
I S S U E
J U N E
4 5
2 0 0 3
TransGas Rated Top Western Canadian
Pipeline Company in Survey!
Ron Clark, President and CEO and Dean Reeve, Executive Vice President give thumbs
up to TransGas
On May 12th, SaskEnergy President and CEO Ron Clark, along with Dean Reeve, Executive V.P. of
SaskEnergy and TransGas, congratulated TransGas employees on placing highest among western
Canadian pipeline companies in a recent customer service survey conducted by Mastio & Company, from
Houston, Texas. Mastio specializes in industrial consumer opinion research and market trends for a wide
range of industries.
4
The comprehensive study, conducted in early 2003, provides results concerning 42 interstate, 9 intrastate
and 10 Canadian pipelines. The pipelines covered by the survey are responsible for approximately 85% of
the gas transported in North America.
Customers had to rate pipeline companies on 33 customer satisfaction attributes, including:
• integrity;
• personnel’s concern for listening to customers;
• likelihood of recommending a pipeline company to others;
• quick resolution of problems; and,
• accuracy of invoices.
DID
YOU KNOW ?
The deadline to notify
Transgas for decontracting
of evergreening service (YAIT)
is August 5th. If you have
and questions about service
and capacity as you are
reviewing your portfolio of
transportation service, please
give your Key Account
Manager, Debbie Brown
(306) 777-9687 or Chris
Uhren (306) 777-9501 a call.
Y
O
U
The top three Canadian pipelines of the 10
that compose the index in order are: Union
Gas Ltd. (Ontario), TransGas Ltd, and
TransCanada Pipelines - Alberta System.
At TransGas, we always work hard to
meet the needs of our customers. Rating
number one in Western Canada is great,
and we thank you for this position - but
we’re still going to do our best to get
better all the time!
R
L
I
N
K
T
TransGas Employees Shelley Chadwick, Linda Neely, Dean Reeve and
Chris Uhren
O
S
U
C
C
E
S
S
I S S U E
J U N E
As with anything new, TransGas worked
together their employees and customers to
become familiar with Sask 1st Call and it’s
process to ensure a smooth transition.
On January 2, 2003 Sask 1st Call went live
with 2 registered member companies:
SaskEnergy Incorporated & TransGas
Limited. Sask 1st Call is a “Call Before You
Dig” service allowing excavators to make
one phone call to notify all member
companies of their plans within the province.
Notifying Sask 1st Call proactively alerts the
member companies of the locations and
date that the excavations are to take place.
Sask 1st Call issues pipeline locate request
notifications to subscriber companies
ensuring that, within 48 hours, underground
facilities are clearly marked before the work
starts.
Sask 1st Call has proved to work for
TransGas. Some of the benefits TransGas
has experienced from Sask 1st Call is not
only being able to receive prior notification of
customer’s plans to excavate, but an
increase in inquiries as well. In the past
customers may not have been aware of our
facilities and therefore did not contact us.
Customers are now able to make one call
and get locates done from subscribing
companies that may have underground
pipelines in the area of excavation, which in
turn prevents damages and enhances public
safety.
The following steps were taken in order for
Sask 1st Call to be a success:
• Sask 1st Call Operators, who process
customers calls, were specially trained
on how to use the system, respond to
the customer and notify the subscribing
companies of the excavation.
• The Sask 1st Call system and
processes were reviewed by the
Dialogue Committee (a group
of industry representatives) to ensure
the system meets the needs of the
member companies as well as the
customers.
• System testing was conducted to
guarantee the system was working
accurately and efficiently.
U
R
L
I
N
5
As of June 1, 2003, registered subscribers
with Sask 1st Call are as follows:
• Alliance Pipelines Ltd.
• Cochin Pipe Lines Ltd. (BP Canada
Energy Company)
• Dome Kerrobert Pipeline Ltd. and Pan
Canadian Kerrobert Pipeline Ltd.
• Plains Marketing Canada
• SaskEnergy Incorporated
• TransGas Limited
As Sask 1st Call continues to grow, be sure
to check the website, www.sask1stcall.com
on a frequent basis for an up to date list of
subscribers.
To raise awareness of Sask 1st Call,
Contractor Safety Awareness breakfasts
were held throughout the province to ensure
contractors understood the importance of
calling before they dig, as well as introducing
Sask 1st Call. Letters were sent to
O
2 0 0 3
excavators/contractors to inform them of
Sask 1st Call and its process. A Sask 1st
Call website was developed to include
information on participating companies,
common questions and answers and contact
information. Sask 1st Call brings benefits to
member companies, the digging community
and customers while improving pipeline
safety, integrity and operator due-diligence.
A convenient new way
to call before you dig!!!
Y
4 5
Continued on next page....
K
T
O
S
U
C
C
E
S
S
I S S U E
J U N E
4 5
2 0 0 3
With Sask 1st Call, the pipeline community is able to:
• prevent damages to underground facilities
• make calling before you dig more convenient
• enhance public safety
Sask 1st Call gives excavators an easy one-step way to reach pipeline companies before they dig.
TransGas believes that the success of this process is essential to ensure safe and reliable operation of our
facilities and we are very proud to have been part of the founding group.
For more information, please contact Sask 1st Call:
Toll Free: 1-866-828-4888
Fax:
1-306-525-2356
1-866-455-5559
Cell:
#4888 (Sasktel Mobility Network)
Website: www.sask1stcall.com
TransGas Investment Policy
On May 1, 2003, TransGas announced changes to its Investment Policy. The maximum level that TransGas
will invest in Customer Specific Facilities increased from $13.60 per GJ/day per year of contract term to
$16.00 per GJ/day per year of contract term. This brings TransGas’ maximum investment level in-line with
its transportation rates. For more information on TransGas’ Investment Policy, contact Randy Greggains,
Manager, Customer Facility Requests at (306) 777-9489, Gary Johannsson, Manager, Rates and Revenue
at (306) 777-9560 or your Key Account Manager.
For example,
• A typical meter station tie-in with no pipeline lateral costs,
• Receipt flows average 1,500 GJ/d transported with new Firm Contract Demand or interruptible
transport over a five year period,
• Customer would receive a full rebate of all their contribution towards the facilities.
6
This level of TransGas investment is $16.00 GJ/d of Contract Demand of term up to 5 years, another way
TransGas is your “Link to Success”.
Contract Demand
GJ
Y
O
U
R
L
Firm Contract Terms (Years)
1
3
5
1,000
$16,000
$48,000
$80,000
2,000
32,000
96,000
160,000
3,000
48,000
144,000
240,000
4,000
64,000
192,000
320,000
5,000
80,000
240,000
400,000
10,000
160,000
480,000
800,000
15,000
240,000
720,000
1,200,000
20,000
320,000
960,000
1,600,000
I
N
K
T
O
S
U
C
C
E
S
S
I S S U E
J U N E
Storage to TransGas
Energy Pool Update
2 0 0 3
TransGas implemented this major policy
change, because it’s fairer to customers,
facilitates daily balancing on our system,
makes the TransGas system look more like
other pipelines in North America, and will
help make TEP a more liquid marketing hub
for the purchase and sale of gas. The
bottom line is it makes doing business on
TransGas simpler!
On May 1st, 2003, TransGas implemented
the commercial movement of Storage to the
TransGas Energy Pool (TEP). This was a
major business change and required
significant business software modifications.
Thankfully, the software changes were
installed with very little impact to ongoing
business, because the project team utilized a
comprehensive development and testing plan
that worked! In addition, the project was
completed on schedule and on budget.
7
Along with the software changes for the
movement of Storage to TEP, TransGas also
implemented some changes to our Web
Nominations System to allow on-line TEP
and Storage account gas transfers. So far
customers say they like the convenience.
This must be the case, because the number
of customers using this web application
keep rising!
With this movement of Storage to TEP,
customers have seen changes to their
transportation rates and the elimination of
a number of transportation services such
as Receipt to Storage (R-17) including the
R-17 Imbalance Account and Storage to
TEP (R-13). All toll changes were designed
on the basis of TransGas remaining revenue
neutral.
DID
4 5
We will continue to do whatever we can to
improve our services and make doing
business with TransGas easier for our
customers. If you have any questions
about these service, policy or toll changes,
please call your Key Account Manager,
Debbie Brown at (306) 777-9687, or
Chris Uhren at (306) 777-9501.
YOU KNOW ?
That since June 1, 2003, all
TransGas outages impacting
customer service are posted on the
TransGas website?
Y
O
U
R
L
I
N
K
T
O
S
U
C
C
E
S
S
TransGas Constrained
Areas And Transport
Queues
This diagram summarizes
the current constrained
receipt and delivery
transport areas on the
TransGas system. Also
included are the current
receipt and delivery
transport queues. The
diagram is updated
monthly on our web site,
so if you would like to
see it more often, go to
www.transgas.com For
more information contact
Paul Nissen at (306)
777-9569
8
www.transgas.com
TransGas Transport & Storage Update
Total energy transported by TransGas and MIPL(C)L in 2003 to May 31 was 155
PJ, 2% greater than 2002 for the same period. The total Saskatchewan gas
production transported by TransGas has recently approached 700 TJ/d, the
highest in over seven years. The increased production has been primarily driven
by the new Shackleton gas production area.
Over 125 outages have been scheduled in 2003 to date, with approximately onethird completed to date. A large portion of the 2003 planned outages are related
to TransGas transmission line modifications to allow for electronic pigging.
TransGas will continue to communicate plans of any outages impacting a
customer’s service at least 7 days prior to the outage, and will make every
effort to minimize the impact.
Y
O
U
R
L
I
N
K
T
O
S
U
C
C
E
S
S