2. ABOUT THIS REPORT
Generations is Seven Generations’ stakeholder report. This report
was written for the people of Grande Prairie, the Peace Region,
community members, business partners, suppliers, service
providers, governments and regulators, investors, Albertans,
Canadians and anyone who has an interest in how we conduct our
operations and serve our stakeholders. We are grateful to the
stakeholders who so kindly spoke with us for this report.
A LOOK INSIDE
We are Seven Generations Energy............................... 1
It Takes a Community to Build a Company.................2
Operating the Level 1 Way.......................................... 4
Building Community Trust..........................................6
Level 1 Corporate Policy...............................................8
Grounded in Values, Questions and
Disorganized Creativity............................................9
Our Community......................................................10
There’s a Lot of Life in Natural Gas.......................... 40
Environment..............................................................42
Safety First................................................................50
Guided by Our Stakeholders......................................54
3. WE ARE
SEVEN
GENERATIONS
ENERGY
Seven Generations Energy Inc. is a low-supply-cost,
high-growth Canadian natural gas developer generating
long-life value from its liquids-rich Kakwa River Project,
located about 100 kilometres south of its operational
headquarters in Grande Prairie, Alberta. The company
employs long-reach, horizontal drilling to produce
natural gas, condensate and natural gas liquids. Seven
Generations’ corporate headquarters are in Calgary and
its shares trade on the TSX under the symbol VII.
In alignment with its Code of Conduct, Seven Generations differentiates itself
by supporting an open and competitive business environment where only those
who best serve their stakeholders can expect the support required to thrive
over the longer term.
Grande Prairie is the business, infrastructure and commercial hub for Canada’s oil
and natural gas industry in northwest Alberta and northeast British Columbia.
This vibrant region has the potential to generate a similar impact on the
economic well-being of Alberta and British Columbia, and Canada to that of oil
sands projects in Alberta.
Maintaining a large operations presence in Grande Prairie is vital to the
company’s ongoing success, and, through its Grande Prairie staff, Seven
Generations engages and consults with the people of the region as it plans,
builds and operates the Kakwa River Project.
Kakwa River Project
1SEVEN GENERATIONS
5. Dear Stakeholders,
The African proverb says it takes a village to raise a child. And so, it takes a
community to build a company.
Without the support and engagement of stakeholders,
no company can expect to survive. Stakeholders are any
group whose tolerance, acceptance and engagement is
required for a company to operate. All stakeholders
must be satiated for the desires of any stakeholder to
be met, for a company to grow sustainably.
At 7G, we seek to differentiate, to be and to be
seen as being different and better in the eyes of
our stakeholders:
¡¡ People concerned about the environment
¡¡ Governments and regulators
¡¡ Communities where we work
¡¡ Partners and customers
¡¡ Suppliers and service providers
¡¡ Employees
¡¡ Shareholders and capital providers
These seven stakeholders are defined in our Level 1
Corporate Policy, which is also called our Code of
Conduct, on page 8.
Generations is a window on our stakeholders, our work
with them, a sampling of stories that define the vital
and human connections we have with the people and
communities of Grande Prairie and region. I invite you
to look in that window.
Our shareholders reside around the world. Our
corporate headquarters is in Calgary, Canada’s
petroleum business centre. The Grande Prairie region
is our community, home to our operations
headquarters, near our Kakwa River Project. We are
Grande Prairie’s energy company.
We live and work in these communities, among our
stakeholders. Within our circle of stakeholders, we
have built Seven Generations. I hope we can continue
to differentiate – distinguish our engagement and our
stakeholder service, as we strive to deliver ever-
increasing value to all.
Pat Carlson
Founder and Chief Executive Officer
May 2016
WITHOUT THE SUPPORT AND
ENGAGEMENT OF STAKEHOLDERS, NO
COMPANY CAN EXPECT TO SURVIVE.
3SEVEN GENERATIONS
7. Our Level 1 Corporate Policy recognizes:
The need of the communities, where we operate, to be engaged
in the planning of our projects and to participate in the benefits
arising from them as they are built and operated.
Like many places in Alberta in 2016, the economy of Grande Prairie is struggling.
Community members often tell me how they appreciate 7G for continuing our drilling,
completion, and construction activities that employ many members of the community.
We have about 55 staff who live in Grande Prairie, plus hundreds of contractors who live
in the community and work with us. There is significant benefit that cascades into the
community through the goods and services we obtain in Grande Prairie. For example, the
modular construction process that we employ for our Super Pads allows contractors to be
home most nights, keeps many people off Highway 40 daily, and improves our capital
efficiency. Continuing our development program in this challenging economic
environment enables us to maintain the excellent workforce that has adopted our safety
culture and embraced our passion for excellence. We have access to the best equipment
and crews available, and we are continuously improving our performance, well by well,
facility by facility.
Our Level 1 Corporate Policy recognizes the need of our suppliers and service providers to be
treated fairly and paid promptly for equipment and services provided to us and to receive
feedback from us that can help them to be competitive and thrive in their businesses.
Seven Generations strives to pay fair and valid invoices promptly after we receive the
material or service. We also participate in continuous feedback loops with key suppliers to
encourage them to improve the way we do business together, and we are open to receiving
their feedback if it helps us both be more effective. We work with suppliers to obtain fair
and competitive pricing. We are not trying to make their business unprofitable, but we want
to ensure 7G gets best available pricing so that we can continue to be competitive. We care
about our suppliers, we appreciate our business relationships, and we want to survive this
economic downturn together.
We place the safety of our contractors and staff above all else. Our Level 1 Corporate
Policy commitment to staff and contractors includes providing a safe work environment.
Our intense focus on creating a gold standard safety culture is resulting in improving
safety statistics that are comparable to performances achieved by the best run
companies. We are applying an advanced approach to safety behaviour improvement
with supporting management systems that include analysis, measurement,
accountability, involvement, and values. We are focused on proactive hazard
identification and root cause analysis, and our approach includes high visibility of
executive and management at work sites performing risk and hazard assessments,
while promoting an industry-leading safety culture.
Marty Proctor
President and Chief Operating Officer
May 2016
WE PLACE THE SAFETY OF OUR
CONTRACTORS AND STAFF ABOVE
ALL ELSE. OUR LEVEL 1 POLICY
COMMITMENT TO STAFF AND
CONTRACTORS INCLUDES PROVIDING
A SAFE WORK ENVIRONMENT.
5SEVEN GENERATIONS
9. Our energy industry needs to do more listening to understand, not
listening to respond.
Public mindset has changed about the resource
industries. People don’t want to be told about project
plans after they’re made; citizens want to understand
the plans before the ink has dried and be part of
project planning.
Community members want to partake in
development discussions, learn, understand, offer
feedback, be heard, listened to and considered.
“We need energy leaders who are not driven by just the
bottom line, reducing costs and increasing production,”
says Steve Haysom, Seven Generations Senior Vice
President. “It has to be about engaging the community,
getting support and buy-in, building capacity, and
providing educational and employment opportunities,
for the benefit of all stakeholders. In many cases, we’ve
been lacking that for decades and it’s given our industry
a bad name. We need to change that.”
For Seven Generations, community engagement is as
important as the bottom line. It’s why the CEO and
senior executives are responsible for 7G’s stakeholder
relations, not typical for most energy companies.
“We’ve built a level of trust by having senior
executives interact directly with communities,
including First Nations, regulatory agencies, and the
government,” says Susan Targett, Vice President,
Land. “Add to that all employees who work in service
of our seven stakeholders.”
“People appreciate the importance we have placed on
engagement and communications. We are very mindful
of how delicate our relationships are. We know they
take a lot of work. Our focus is on being transparent.”
What’s crucial is earning and maintaining stakeholder
permission. Without permission there is no project.
That’s why each of the Seven Generations
stakeholders is part of the project equation. We know
not every wish of every stakeholder will be met, but
we recognize their need to find satisfaction with our
work. All are critical for success.
Through Seven Generations’ eight-year life, Susan
and Steve have built a network of stakeholder friends
and earned trust within the community. But they
believe they can do more.
“We believe that if we’re doing good things, and other
companies are doing good things, that raises the bar
for the industry overall,” says Steve. “Industry needs to
be better at engaging communities, and building the
understanding of how widespread participation
generates far-reaching benefits.”
Industry needs to educate and inform community
residents about what it plans and how it operates,
from the reservoir rock to the reliable delivery of fuel.
Energy keeps us warm in winter, makes
transportation possible and convenient, and adds
health and fun to life, from medicine and iPads to
soccer balls and hockey nets.
“It’s talking about the importance of petroleum
products in people’s lives and the fact that they
produce not just energy and heat, but also plastics,
pharmaceuticals, fertilizers…so many things,”
Steve says.
Informing the public how a company responsibly
extracts the resource to minimize overall footprint is
another key responsibility.
People recognize they need resources, but they want
to make sure that energy is developed by applying the
best methods possible, and that operating practices
continue to improve.
While Steve and Susan are often the face of 7G in
the community, Production Manager Tim Alberts and
the 55 staff in Grande Prairie are not far behind. Going
into the community – “that’s one of the best parts of
my job,” says Tim.
“It’s very rewarding. I’ve never been in a company
that has gained so much goodwill in the community.
It is obvious more companies should be doing these
kinds of things and doing them well. There’s no
doubt. The tours, Rotary Club and Chambers of
Commerce presentations, meetings with local
politicians, there’s so many ways to reach out.”
For Susan and Steve, there’s only one way to measure
7G’s engagement in the community.
“We are here to serve our stakeholders and if we are
not meeting their needs, then we have not done our
job. It’s fundamental to our work.”
BUILDING
COMMUNITY TRUST
Steve Haysom
and Susan Targett
Senior Vice President,
VicePresident,Land
7SEVEN GENERATIONS
10. Environment
Employees
Communities
Supply & Service
Providers
Government &
Regulators
Partners
Shareholders
LEVEL 1 CORPORATE POLICY
OUR CODE OF CONDUCT
We believe that companies have only the rights given to them by society.
While people have a natural entitlement to basic rights, corporations are
an instrument created by society to provide its needs and ought to have
no expectation of basic entitlements other than equitable rights with
other corporations, including those wholly owned by a person.
We recognize that rights, sufficient to build and operate an energy project, can be granted and taken
away by society. Over the longer term, companies can only expect to thrive if they serve the legitimate
needs of society in which they exist. To thrive, companies must differentiate, rise above the pack,
standout as being among the best with all of their stakeholders. At Seven Generations Energy Ltd.,
we acknowledge this granted entitlement and accept from our stakeholders a duty to thrive and an
understanding of the need to differentiate.
Specifically, in acceptance of this challenge to differentiate with all stakeholders, we acknowledge:
¡¡ The need of society for us to conduct our business in a way that protects the natural beauty of
the environment and preserves the capacity of the earth to meet the needs of present and
future generations;
¡¡ The need of Canada and Alberta for us to obey all regulations and to proactively assist with the
formulation of new policy that enables our company and our industry to better serve society;
¡¡ The need of the communities where we operate to be engaged in the planning of our projects and to
participate in the benefits arising from them as they are built and operated;
¡¡ The need of our business partners and infrastructure customers to be treated fairly and attentively;
¡¡ The need of our suppliers and service providers to be treated fairly and paid promptly for
equipment and services provided to us and to receive feedback from us that can help them to be
competitive and thrive in their businesses;
¡¡ The need of our employees to be compensated fairly and provided a safe, healthy and happy work
environment including a healthy work life – outside life balance; and
¡¡ The need of our shareholders and capital providers to have their investment managed responsibly
and ethically and to earn strong returns.
We see ourselves as being in the service business, serving the needs of our stakeholders. We seek
satisfaction for all stakeholders. Differentiation is imperative. We support an open and competitive
business environment, recognizing in the competitive world that we envision, only those who best serve
their stakeholders can expect the support required to survive for the longer term.
8 SEVEN GENERATIONS
11. THIS IS AN ORGANIZATION
THAT REALLY STARTS
WITH ITS VALUES…AN
INVISIBLE HAND THAT
GUIDES ALL ACTIONS.
David Vaughn has seen plenty of mega, complex officialdoms – the U.S. Navy, Olin Chemicals,
Anheuser Busch, plus small, family-owned businesses and non-profits.
Now he’s mentoring a not-so-vast, rather distinct, young firm
called Seven Generations, where he’s teaching how to construct
a values-based company within a disorganized structure.
7G is marked by two defining features. The culture measures
performance through stakeholder service. The organization is
people-centred, void of a rigid, hierarchical org chart that
consolidates permissions in a few senior hands.
People and companies “say they’re value based, but they don’t
start with values,” says David, Vice President & Principal
Consultant at Linkage, a strategic leadership and corporate
culture development firm based in Burlington, Mass.
“This is an organization that really starts with its values…an
invisible hand that guides all actions. It’s a stakeholder service
company that happens to be in the natural gas business.”
David labels 7G’s approach competitive disruption that is difficult
to replicate, a strategy that’s grounded in Pat Carlson’s “strength
of disorganization.”
“Sometimes companies can be too organized, with job descriptions
and hierarchy, and they just miss opportunities.
“And here was a guy (Pat) who deliberately managed his
organization around what I’ll call these circles of energy, where
things need to get done, but they need to get done through
people. So make it easy for people to contribute, and to lead and
to share their ideas,” and success will result, David says.
Of course 7G staff have defined titles, responsibilities and sound
corporate governance. Decision making rightly resides with the
experienced experts best equipped to lead. However, 7G is infused
with an organic model marked by the freedom to act and execute in
teams, rather than a ladder of authorizations that stifles creativity
and innovation, says David.
Most companies are more driven by giving the answers, but this
company goes the other way around. “They are always in the
question. You don’t let the institutional nature of the organization
get in the way of the debate, the discussion. This company is
means driven, and the dynamic is organic.”
David believes the 7G stakeholder service model is setting
the tone for how to behave as a corporate citizen, and excel
among competitors.
“Whether it’s dealing with the government, whether it’s dealing
with the community, or whether it’s dealing with its people, its
families or contractors, or the First Nations, 7G treats them like
they should be around the kitchen table.
“There’s no doubt in my mind…that we are talking about
organizational ideas that people are going to write about, maybe
30, 40, 50 years from now,” says David
“7G has built this incredible amount of social capital because they
give trust before it is earned and they give best effort before it is
deserved, because it’s the right thing to do.”
GROUNDED IN VALUES, QUESTIONS
AND DISORGANIZED CREATIVITY
David Vaughn
Vice President
and Principal Consultant,
Linkage Inc.
9SEVEN GENERATIONS
13. Mayor Bill Given likes to get graphic.
“Grande Prairie is a ‘choose-your-own-adventure’
community where you have the ability to decide your
own fate. There are growing opportunities for young
people here, I think there’s no better place to be in
Canada,” says Grande Prairie’s youngest mayor, ever,
of Canada’s youngest city.
A second-generation Grande Prairian, Bill Given is truly
a product of the resourceful spirit of the city where
“all the most important things” in his life have
happened. He was also the youngest person ever
elected councillor at the age of 24 in 2001. Always on
the go, Bill’s days are filled with an extensive list of
civic events, committee meetings and raising his two
children with his wife Susan.
Bill wants his city to be known as much for its energy
innovation as for the warmth and tenacity of its
people. This self-reliant and irrepressible community
is raising generations with a ‘let’s get it done’
attitude, says Bill.
A graphic designer turned municipal leader, Bill
believes that Grande Prairie and the Peace Country’s
geographic separation from major centres like Calgary
and Edmonton, which is 456 kilometres southeast,
helped build the city’s resiliency.
“Up here we have to figure out how to do things on our
own because nobody else is going to do it for us.”
It’s this resourcefulness that guides the city through
the cyclical nature of oil and gas, a substantial
economic driver. “Individuals are drawn here for the
economic opportunity. Some people leave when times
change but there are others who stay in a downturn –
they just start new businesses.”
It wasn’t until Bill had the opportunity to tour Seven
Generations’ operations that he realized the substantial
impact of the industry on the region’s economy.
“I recognized many local companies and names. It was
the first time for me, to understand how the capital
spending of energy companies – 7G in particular –
flows into the economy,” explains Bill. His city has a
budget of approximately $155 million, while 7G has a
capital budget this year of more than $900 million in
its Kakwa River Project.
It’s not just the economic impact that sets 7G apart,
it’s the way it operates, Bill says.
“Sue (Targett) and Steve (Haysom) represent their
company in a way that I have never experienced with
another energy company. There’s a real humility about
their approach.”
Bill says humility is something many of us could do
with more of. “I believe the energy industry hasn’t
necessarily expressed a lot of humility in its approach
to business,” he says.
“I think 7G is building a very close connection to the
community in which it operates. Of the companies
operating in the area, I don’t think there’s anyone else
who does it like them. It’s obvious they are Grande
Prairie’s energy company because the nature of the
people that are part of 7G. The approach they
take as a company models the ethos of our community
very well,” he says.
Bill believes there are few places in the world like
Grande Prairie that can claim both geological resource
and innovative culture. And he sees 7G and the energy
industry playing a much larger role as they seek to
move up the value chain.
Bill sees significant opportunity in establishing Grande
Prairie as the natural gas innovation capital of Canada.
“We have the people, the companies and the natural
resource in the ground to legitimately stake our claim
to that title.”
GRAPHICALLY
DESIGNING
AN INNOVATIVE
LEADERSHIP CITY
UP HERE WE HAVE TO
FIGURE OUT HOW TO DO
THINGS ON OUR OWN
BECAUSE NOBODY ELSE IS
GOING TO DO IT FOR US.
11OUR COMMUNITY
14. I’M TRYING TO FIND A
BALANCE BETWEEN
INDUSTRY AND THE
LIVELIHOOD OF MY
COMMUNITY. I LIVE IN
BOTH WORLDS.
Seven Generations conducts its operations on
First Nations traditional land within the Kakwa
River Project area. These First Nations include:
Aseniwuche Winewak, Horse Lake, Sturgeon
Lake and Sucker Creek. With a deep respect for
First Nations’ traditional territory, 7G offers the
following interview with Chief Eugene
Horseman, Horse Lake First Nation.
12 OUR COMMUNITY
15. BRIDGING
TWOWORLDSChief Eugene Horseman views his community through a wide angle lens,
capturing elders’ traditional way of life while exploring new horizons for
the Nation’s youth.
It’s not an easy task. Many elders in Horse Lake First Nation are traditional hunters and gatherers, still
living off the land, hunting moose and gathering plants for medicine. Ensuring traditional rights aren’t
being affected, while acknowledging the importance of oil and gas and the opportunities it can bring,
Eugene needs to consider many perspectives.
“I’m trying to find a balance between industry and the livelihood of my community. I live in both
worlds. My elders were my teachers on how to survive and live off the land, but being in this new
generation, I understand the importance of the oil and gas sector too. Our lifestyle as a modern-day
Indian, everybody has the technology, the electricity, running water.”
True consultation – working together and developing win-win solutions between First Nations and
industry – is the solution, says Eugene. Impacts on traditional rights can be avoided, industry can
achieve its business goals and First Nations can take advantage of opportunities outside their door.
When consultation occurs before industry activity, locations of significance to the community – such
as salt licks that attract moose and bigger game, and medicinal plants – can be identified and impacts
avoided, says Eugene.
“I’ve seen in the past when industry’s plowed through salt licks where our elders taught us for
hundreds of years to get our main source of food.”
The band can send a knowledge holder – an elder who knows the lay of the land, and a trained
environmental monitor from the community to identify and protect valued traditional assets in
remote field locations. Industry can then modify plans to avoid and preserve these areas.
“We need to find a happy medium. We don’t want to stop projects because our industry partners are
also giving us another way of survival – and that’s making money.”
Since becoming Chief more than two and a half years ago, Eugene has focused on the long term,
finding opportunities to benefit his community for years to come.
“In the last couple of years, Horse Lake First Nation purchased a couple of businesses, now integrated
under Status Energy. We’re doing our part as business partners to be competitive. With proceeds from
band businesses hired by companies like 7G, I can provide long term for my people because their way of
life has changed in a lot of ways.”
Eugene recognizes that his people can no longer live off the land like they used to – particularly the
youth who are into a more modern, technology-driven way of life. They are getting an education and
looking for options. 7G has led the way in providing pre-employment training
opportunities for graduates.
“With the help and assistance of 7G, we set up a pre-employment training program in
Grande Prairie that gave them employment and life skills. 7G hired them and it’s been a
continuing, growing success. Once 7G got on board, other companies were wanting to
help and participate. We’ve had a number of our kids placed in jobs.”
Eugene credits his work with Seven Generations as showing him how partnerships can
be successful on both sides. “7G made sure they did their part in consulting and working
with indigenous people, even on the business side and hiring our band business. I was
able to pass on that knowledge of what we were doing with 7G to other companies.”
Chief
Eugene Horseman
Horse Lake First Nation
13OUR COMMUNITY
16. LIVING THE CAREER
DREAMHELPING PEOPLE
Five years ago, Cindy Park was at a crossroads. She could
either move out of a city she’d grown to love or stay and
find a new Grande Prairie opportunity.
Just because she was ending a 20-year banking career didn’t mean she could leave
the people, especially when she had a chance to do something for those people.
“Having a great job is wonderful. But having a great job that can help people is
even better. When you become a tiny little part in a process that can help somebody,
that’s a great day!” Cindy says about her role as executive director for the city’s
hospital foundation.
Cindy can’t overemphasize the importance of the human services and health support
the hospital provides because at one time or another, we will all need to
use them.
“It wouldn’t matter if you’re a truck driver, working on the rig or in retail sales, we all
deserve to have quality health care,” Cindy says. “Because we are all one, we all should
be involved in making it a better place and a facility that we can all be proud of.”
Cindy recalls hearing about the time Seven Generations CEO Pat Carlson needed
to use the hospital’s services.
“It was this visit that made him realize that so many people use the facility
and services and often leave right after, not considering the impact to the
community’s infrastructure.”
Supporting the foundation’s goal to raise $20 million for improved health care has
since become a key community initiative for 7G.
“7G is a model for others to follow,” says Cindy. “Just because you move here to get
a job, you still use all of the services in the community, and giving back is really
important. It may not be important for you, but it may be important for your kids
one day, or for your neighbour. It’s going to touch someone you know.”
While Cindy is extremely thankful for 7G’s $1 million fundraising
commitment, she believes the example set for other businesses by
contributing to the community is just as important as the money raised.
“7G has acted like a conduit to a sector that we had little involvement
with. People see a company and the people who run those successful
businesses giving back to the community. It opens people’s eyes to
actually see what someone can do; people aspire to be like that. The
hospital and the community benefit from this – the entire region is
benefitting from it.”
Cindy Park
Executive Director,
Grande Prairie Regional
Hospital Foundation
14 OUR COMMUNITY
17. HAVING A GREAT JOB
IS WONDERFUL. BUT
HAVING A GREAT JOB
THAT CAN HELP PEOPLE
IS EVEN BETTER.
Over the past three years, Seven Generations
and its industry partners have raised more than
$800,000 during 7G’s annual golf tournament. The
funds support the Grande Prairie Regional Hospital
Foundation. 7G attributes the event’s success to the
people of Grande Prairie, their community passion,
and prevailing power of positive thinking.
15OUR COMMUNITY
18. Brent and Madelaine Opdahl have two vigorous and sparkling
daughters now, but they know all too well Grande Prairie’s need for
expanded medical services, the facilities, doctors and health
professionals who care for and provide specialized treatments.
A new $650 million hospital is under construction and set to open
in 2019. Brent and Madelaine are delighted when they see Grande
Prairie businesses – such as Seven Generations, its suppliers and
partners – raise funds that may help other families avoid the
added stress, expense and worry that come with having to travel
450 kilometres south to make their children well.
At just one month old, Kherrington was struck by a series of
fevers caused by a reoccurring urinary tract infection, which
triggered seizures.
“What’s that?” asks Kherrington, an energetic and precocious
six-year-old gymnast who loves to show off her cartwheels.
“It’s when your eyes roll in the back of your head,” says mom.
“She got a fever that got too high too fast…It was super scary.”
Repeatedly in and out of Grande Prairie’s hospital for more than a
month, it took a litany of tests to determine that Kherrington was
born with and suffered from Vesicoureteric Reflux. Her sister
Kjersten had it too.
“In short form, their pipes were just not developed properly. Their
urine backed up into their body instead of going down, and created
an infection in their body,” explains Madelaine.
“In terms that anybody in the oilfield would understand, there’s
a check valve that when your urine goes out, it can’t come back.
Theirs was coming back, and carrying infections back into their
kidneys, which can cause scarring and damage to their kidneys,”
adds Brent, Land Manager at Peace Country Land Ltd., a Seven
Generations service provider.
Kherrington was most affected and nine-year-old Kjersten suffered
a less severe form at age two and a half. Many children outgrow the
condition, as Kjersten did. But baby Kherrington could not. At nine
months old, after repeated bouts treated by various antibiotics of
diminishing effectiveness, Kherrington was referred for assessment
DONATION
FEVER
CONTAGIOUS
When your infant daughter is
struck with a sudden and puzzling
fever that causes seizures, all you
want is an answer, and a lively,
healthy child.
Brent,
Madelaine,
Kjersten and
Kherrington
Opdahl Family
16 OUR COMMUNITY
19. and eventual surgery with a specialist in pediatric urology at
Edmonton’s Stollery Children’s Hospital.
Solving their two girls’ conditions took a couple of years, through
the tests, preparation, surgery and follow-up visits that required
several Stollery trips.
It’s the travel, the time, cost for meals, hotels and time from
work, all adding to family and patient stress. Brent and Madelaine
hope this can be avoided for other families in future as Peace
Country business and community fundraising adds health services
in Grande Prairie. The city serves more than 260,000 in northwest
Alberta and northeast British Columbia.
When Brent’s firm, Peace Country Land, was approached to
participate in 7G’s annual golf tournament, it was a simple decision.
Scores of service providers have joined the fall tourney during its
first three years, sponsoring holes and raising more than $800,000
for the Grande Prairie Regional Hospital Foundation.
“Seven Generations brings all of these other companies together for
the cause of the hospital. For somebody to step up and do the
planning, and get the ball rolling, for this initiative, to keep it
moving forward, Seven Generations should be commended,” says
Brent. His firm’s charity involvement is expanding.
As a result of sponsoring the golf tournament, “we got involved
with Susan Targett and some of the other Seven Generations
people, Pat (Carlson), and we now attend the Festival of Trees,”
which also funds hospital needs, says Brent.
“Those donations will be a great benefit for everybody up here. The
hope is that with the new hospital, they will attract specialists of
the calibre that we had to go to Edmonton to see, so that travel
from northern parts of the provinces won’t be required.”
17OUR COMMUNITY
21. Seven Generations has had the opportunity to work with
the Canada Pension Plan Investment Board (CPPIB) over
the years and more formally since CPPIB made its original
investmentinthecompanyin2012.AsdefinedintheLevel1
Corporate Policy, 7G acknowledges “the need of our
shareholders to have their investments managed
responsibly and ethically and to earn strong returns.”
7G asked its largest shareholder – CPPIB – to share its
perspective on the company’s stakeholder differentiation.
HOW DID YOU COME TO MEET SEVEN GENERATIONS?
Canada Pension Plan Investment Board was introduced to 7G more than five
years ago when Pat Carlson met with CPPIB’s Direct Private Equity (DPE) team as
part of a fundraising round. In May 2012, the DPE team made a $200 million
equity investment in 7G to fund delineation and development of its land base,
which was at a relatively early stage in 7G’s development.
HOW HAS YOUR INITIAL IMPRESSION OF THE COMPANY CHANGED
OVER TIME?
Since then, 7G has made considerable progress demonstrating strong results
across its land base. We have been impressed with 7G’s rapid reserves and
production growth, its long-term approach to securing end markets for its
products, its focus on the safety of its operations, and its work with local
communities to ensure sustainability.
IS 7G DIFFERENTIATING ITSELF FROM OTHER OIL AND GAS COMPANIES?
We think 7G is differentiating itself from other oil and gas companies in
multiple ways. In regards to building shareholder value, it’s focused on being
the lowest-cost producer by continually working to lower its development costs
and being innovative with new technologies. 7G has also demonstrated
strategic long-term thinking with respect to its infrastructure build-out,
ensuring it has access to processing capacity for its liquids and natural gas in
time for the aggressive ramp-up in its production. 7G also continues to
demonstrate forward thinking with respect to its marketing and takeaway
capacity strategy, ensuring diversified long-term market access.
With regard to sustainability, 7G clearly acknowledges that in order to thrive, it
must differentiate itself from its peer group. As suggested by its name, the
business is run with a long-term mindset. Seven Generations is an ecological
concept that urges the current generation of humans to live sustainably and to
work for the benefit of the seventh generation into the future. This is
demonstrated through 7G’s focus on safety, good operating practices and in its
engagement with local communities, with 7G seeking to ensure mutual benefit
over the long term. At CPPIB, we believe that organizations that manage
environmental, social and governance factors effectively are more likely to
endure and create sustainable value over the long term, than those that do not.
Q&AWITH 7G SHAREHOLDER
CANADA PENSION PLAN
INVESTMENT BOARD
19OUR COMMUNITY
22. Roch
Dallaire
Director, Ops Mobil
Chair of the Nikanohtote
Committee, Rotary Club
of Grande Prairie
Roch Dallaire loves to talk flying, unless he can bend your ear about how his Rotary Club’s new
bus service is helping change lives – the Nikanohtote Initiative.
“The club often sends money out all over the world, but we still
have people in our own backyard that need help,” says the chair of
Nikanohtote. It runs a daily commuter bus from the Horse Lake
community to Grande Prairie, helping early career workers get to
and from work.
“So when 7G came to us and wanted to put Horse Lake First
Nation members to work because First Nations are an untapped
resource, and Horse Lake had a 67 percent unemployment rate,
we were on board.”
One of the biggest hurdles for Horse Lake community members
accessing job opportunities is transportation into larger centres
like Grande Prairie. But Roch says as his Rotarians, 7G, and other
business partners began discussing the opportunity, they realized
supplying a van would not be enough. Originating partners include
Horse Lake First Nation, Visa Truck Rental of Grande Prairie, the
Rotary Club of Grande Prairie, the City of Grande Prairie, Status
Energy and 7G. And since starting, other organizations have come
on board to support the initiative.
Each day the bus takes commuters about 75 kilometres from
Horse Lake First Nation into Grande Prairie, and home after a day
shift. The continuity that brings to these early career employees
helps build sustainable work experience. Nikanohtote is far more
than just a ride to work.
“We needed to add pre-employment training, life skills, job
shadowing, things that would help these individuals succeed and
get into good jobs,” says Roch. As with many first-time workers,
“some individuals have self-esteem issues and don’t believe
they deserve to work. This initiative is helping to raise their
self-esteem, show them that they’re worthy and integrate them
into the workforce.”
Ten Horse Lake community members successfully completed
pre-employment training, and seven are currently employed
full-time.
For a community like Grande Prairie that raises generations with
a get-it-done attitude, “it’s important to have companies like 7G
that genuinely care for the community, bringing opportunities and
partners like this together, says Roch.
“7G is one of the most community-focused oil and gas companies
that I’ve seen. They started out very small but have really grown
over the last few years. They’ve really embraced the community,
providing support to its events and social needs,” says Roch. “And
they’re big on hiring local people and contractors. They saw a need
and made it happen.”
Rotarians invest significant time into the community. And even
though Roch would love to spend more time flying Roch’s Rocket
– his 1968 Cessna-421 and a passion he’s had since he was 17 – he
doesn’t mind that Nikanhtote is eating into his flight time.
“Joining the Rotary filled a hole in me that I didn’t know was
there,” says Roch, who moved to Grande Prairie for his aviation
business over 16 years ago. “Donating my time and effort to
causes that don’t benefit me directly makes me feel really good.”
DRIVING TO
NEW CAREERS
20 OUR COMMUNITY
23. Trevor
Horseman
Shop Hand,
Seven Generations
Making significant change and stepping out of his comfort zone, Trevor Horseman has found new
meaning and comfort in life.
A member of Horse Lake First Nation, west of Hythe, Alta., Trevor is
the youngest of three.
He has lived on the reserve, about 75 kilometres northwest of
Grande Prairie, most of his life. Doing jobs off and on, he says he
“got into the bad scene, doing drugs.”
But last year Trevor made a change. He spends time on the reserve
with his nieces, each of whom has young children. “Those were my
choices – my bad life or them. And I picked them.”
He started down a more positive track when the Nikanohtote
Initiative began in December 2015. The initiative is job skills and
employment training created specifically for the nation. Trevor
jumped at the opportunity.
Four weeks of training prepared him and ten other Horse Lake
trainees to work for a participating industry partner. “We learned
how to listen, how to talk to people, and how to give a firm
handshake,” explains Trevor, who said the training proved
invaluable. “I wouldn’t have been here this long if I hadn’t taken
the training.”
Trevor was placed at Seven Generations’ Grande Prairie office for
on-the-job experience, where he was pushed out of his comfort
zone. Never having worked in an office environment, he persevered
and “eased down” because of the warm welcome he received.
“Everybody smiles, says good morning, asks me how I’m doing,”
says Trevor. “Before I started with the program, I used to sleep all
day, try and get money but now I don’t have to do that. I just go
home and come to work, every day. It’s awesome, I like it. Back
home I’d have to worry. Might as well work out in the real world.
You get paid and don’t have to worry about anything.”
Trevor is motivated daily. “This place, this environment inspires
me every day. If I’m sick, I want to come and not let anyone down.
I’ve never had a job where I felt like that.”
A “jack of all trades” at the office, he washes trucks, recycles,
takes out the garbage, and organizes files. He also started field
visits where 7G staff explain the equipment and hydraulic
fracturing process. “I call them the green company because they
recycle everything they can. We don’t even throw a lot of garbage
away in the office; I recycle just about everything.”
Trevor eats, sleeps, works, and visits his nieces. Life is good and he
plans to keep it that way. And he definitely plans to stay with 7G. “If I
could work weekends, I would. I go to work for fun. I really like it here.”
STEPPING UP
FOR CHANGE
THIS PLACE, THIS
ENVIRONMENT
INSPIRES ME
EVERY DAY.
21OUR COMMUNITY
24. Shane Smith
President and CEO,
Status Energy Limited
Around Grande Prairie there are no oceans, but the prairie
runs far, the blue sky farther, and the opportunities are big
and boundless.
“I was a commercial diver and ended up selling my company,” recalls Shane Smith, born
and raised in a small fishing village in New Brunswick. “There weren’t that many business
opportunities out there so I ventured to Alberta and I’ve called her home ever since.”
Shane never experienced anything quite like the oil and gas industry when he migrated a
decade ago.
“Was just trying to get my feet wet. The energy industry is fast paced, a bit of a different
culture than the East Coast. But it’s exciting too because opportunities pop up daily. I’ve
never been in an industry quite like it.”
Starting out in business development with smaller organizations, Shane worked his way
up the ranks. Now President and CEO for Status Energy, previously McAdie Ventures – a
service company wholly-owned by the Horse Lake First Nation Investment Management
Board – Shane is thankful for his opportunities.
“I feel very fortunate. Chief Eugene Horseman and his council are very progressive. They
want to do a lot for their community,” says Smith, stressing that Status’s key objective is
to put Horse Lake First Nation members into jobs.
“We’re now the largest logging and clearing provider in the north,” representing huge
growth in just two years – growth that was helped when Seven Generations gave the
Status team a chance to prove its worth.
“Pat Carlson wanted to exceed government requirements and truly engage with First
Nations,” Shane says, starting by executing small projects. Status now hauls more than
half of 7G’s produced water and is on first call for logging and clearing.
“The chief has always said, we don’t want a hand out, we just want a helping hand. 7G
was the first producer to actually give us a chance.”
The Status performance record with 7G helped earn work at Pembina Pipelines, where
Status logged and cleared more than 100 kilometres last year. “Working for 7G is my sales
and marketing tool,” says Shane.
Smith says 7G went above and beyond what his team ever expected. And while there was
“no template on how to make this work,” healthy and ongoing conversations between the
operator and the service provider moved it forward.
“It’s never easy starting from scratch. We are an example of how First Nations, industry
and government cannot just co-exist, but thrive and have positive relationships. It takes
both sides to want to understand where each other is coming from.”
Out of the 50 producers in the nation’s traditional territory, Smith says 7G is number one
in engaging with the community and business.
While a part of Smith will always call the East Coast home, with a wife and two young
daughters, Grande Prairie is his family’s home now. An avid golfer, Smith recently
inherited one of the first golf memberships ever sold at the Grande Prairie Golf and
Country Club from his wife’s grandmother, another good reason to stay.
GRANDE PRAIRIE:
ANOCEANOF
OPPORTUNITY
22 OUR COMMUNITY
25. THE CHIEF HAS ALWAYS
SAID, WE DON’T WANT
A HAND OUT, WE JUST
WANT A HELPING HAND.
7G WAS THE FIRST
PRODUCER TO ACTUALLY
GIVE US A CHANCE.
23OUR COMMUNITY
26. PIQUING GRADE 4’S
INTERESTS IN
SCIENCECAREERS
As a very active and social kid, Andrew Lojczyc always
knew he wanted to be a teacher. After spending the past
24 years working in northern Alberta schools, he says
there’s no day in the classroom that’s ever the same.
“It’s just not boring. I like the idea of constant action in the workplace and
teaching is certainly that. It’s such a social job.”
For the past three years, he’s finally working in his hometown at Beaverlodge
Elementary School. With four kids of his own, at first Andrew wanted to
teach elsewhere.
“I didn’t want to have to discipline them twice. My last child is still here and
fortunately he hasn’t been down to my office yet,” says the vice principal with
a chuckle.
Beaverlodge is fortunate to be well supported by the business community,
volunteers, and people who want to contribute to the school, says Andrew.
“We run so many programs. Whether it’s healthy breakfast, snacks or keeping
up with expensive technology, we want to make sure our kids growing up in
rural Alberta are competitive and are given that advantage.”
While Andrew admits he’ll never turn down a donation, one of the best things
students can experience is contact with professionals who can provide meaning
to the curriculum. So when Seven Generations wanted to partner with the
school, Andrew really appreciated its willingness to get in front of the
classroom and get involved.
“Seven Generations has come in, not asking for support, but to volunteer.
They’re working in our community and they want to be a part of it. In the
Grade 4 unit, we discuss various topics on the oil and gas industry, so it’s
been nice to have them partner with our Grade 4 classes.”
Andrew says that teachers are generalists and it’s great to have experts
share their knowledge.
“7G were well prepared and provided good strong
presentations and a lot of knowledge. There’s no doubt in my
mind that that those conversations pique the interest of
students who might work in those fields someday.
“A lot of their parents and grandparents work in those fields.
They go home and discuss it with their parents and create
conversation and interest – I think that’s a very healthy thing.”
Andrew Lojczyc
Vice Principal,
Teacher and Counselor,
Beaverlodge
Elementary School
24 OUR COMMUNITY
27. At the age of 11, Daci Jones knows her career path.
“I want to be a weather forecaster when I grow up. I’m really
interested in predictions, forecasting and mapping.”
And Daci has a good handle on what makes her province tick.
“Alberta’s economy is pretty much wrapped around oil and gas,”
she smartly says. Daci appreciates the extra support her school
gets from the industry – including the winter gear they’ve
received for the past couple of years from 7G.
“It’s very, very kind of them to donate toques, hats and
mitts. With the really bright colours they’re keeping kids safe
and warm.”
Daci says she often loses her toque to her baby sister, who loves
wearing it, “even around the house!” With Seven Generations
giving different colors every year, Daci is hoping for blue next
year, because girls love blue too, or maybe purple.
WE WANT TO MAKE SURE
OUR KIDS GROWING UP IN
RURAL ALBERTA ARE
COMPETITIVE AND ARE
GIVEN THAT ADVANTAGE.
25OUR COMMUNITY
28. Gordon Stenhouse has been up close and personal with a polar bear.
“One day I was watching Arctic nesting geese through the
spotting scope and it just went white,” recounts Gordon, at the
time a biologist conducting research near Churchill, Man.
“I looked up. Between myself and the goose nest was a polar
bear. I got startled and jumped up! The bear stood up! We looked at
each other, then he just walked away. I thought, wow! I want to
study those.”
It’s been 36 years since Gordon’s first bear encounter. Since then,
the Grizzly Bear Program Lead for fRI Research in Hinton, Alta.,
has spent countless hours examining every aspect of grizzly
bears, developing predictive models and tools for bear
conservation and safety.
Gordon is a firm believer that bears and humans can co-exist
safely. By applying science, bear welfare improves and industrial
impacts are minimized. He approached Seven Generations after
reading about the “new kid on the block” in a business magazine.
He says he was really impressed with its corporate philosophy and
approach, which he saw aligned with his own.
“7G was the first company that I’d worked with who really wanted
to understand and apply what they could do differently to minimize
their impact,” explains Gordon. “They had a willingness to learn and
change, a very impressive trait.”
Through his research, Gordon has found a strong correlation
between road density and survival rate of grizzly bears. More
roads = fewer bears.
The company has stringent road access control. It created a
“watchdog” by installing manned gates, monitoring access and
controlling human activity and behaviour. Gordon’s research
enhanced 7G’s approach to field access management.
Gordon has also been working with 7G on bear safety training. “When
you understand the dos and don’ts, bears don’t have to be shot.”
After conducting on-site inspections, Gordon says the company is
doing all the right things. “People aren’t feeding bears or
improperly storing garbage that can attract bears. The staff
training for bear safety is very impressive; it shows a respect for
wanting to maintain that species on the landscape.”
In addition to the company’s willingness to get behind the science
and reduce its impacts, Gordon appreciates 7G’s active
participation. The company is working with fRI on an industry-
driven research initiative, with the federal government matching
industry contributions.
“7G is not only providing support for this program, but more
importantly to me, is that Environment Scientist, Ruth (Milkereit)
and Environmental Engineer Natalia (Thornton) came to the
evaluation meeting, answered questions and engaged in that kind
of effort. I’m honoured that Natalia and Ruth did that.”
Gordon says in these tough economic times environmental
initiatives are often the first to go.
“7G’s engagement shows an impressive level of commitment; it
shows the value and importance of environmental activities
within the company.”
Gordon
Stenhouse
Research Scientist
and Grizzly Bear
Program Lead,
fRI Research
THE BEAR
SPOTTER
26 OUR COMMUNITY
29. Build it and they will come to see dead dinosaurs.
This adapted movie line rings true for northern Alberta because, as George Jacob
says, the Peace Country has a much bigger story to offer than just northern lights.
Builder of the award-winning Philip J. Currie Dinosaur Museum, George is a firm
believer that the cutting edge, interactive paleo-to-petroleum museum is a
compelling draw to the Peace Region.
George is a storyteller, an inherent trait in any good museologist. Drawn to the
challenge of creating a unique experience and “not just another dinosaur museum,”
the museum designer and Fellow of the Royal Canadian Geographic Society used
narrative and design to create a fossil-to-fuels timeline, from the innovative
architecture to the spatial layout of the museum itself.
The story path through the museum unfolds with a descent into the lower-level,
pre-historic dinosaur era, which then traverses up through the millennia to present-
day hydrocarbon-rich Alberta, creating a link between ancient microbial life and the
rich deposits of fossil fuels.
The museum approached the energy industry to help chronicle the rich content, which
George says was vital to the success of the gallery. Seven Generations played a key
role, with geologist Steve Haysom “taking an inordinate amount of time to educate
planners, provide core samples, and take part in the filming and writing. Content is
richer here as a result of their dedication,” says George.
George hopes to continue the energy story with a future museum expansion that
includes a travelling exhibit, where the ultimate goal is to create a personal
connection to energy. He will again use narrative to engage the audience in creating
scenarios that force people to think about how the choices they make regarding the
future of resources can affect their lives.
“What happens if you kill that industry?” theorizes George. “Your first hour waking up,
how does it affect you? Non-stick pans, hair gel, razors, all products from the
petroleum sector. What sacrifices are you willing to make today? What are you going
to choose?”
The exhibit design is based on the concept of the Great Law of the Iroquois,
better known today as the Seven Generations Principle. It encourages
leaders to live sustainably and to make decisions that consider
impact on the future seventh generation. 7G’s own name is also
based on this concept.
George, who has contributed design to more than 50 museums in
11 countries, says he took on this extraordinary project not just for
the challenge, but to contribute to his home country.
“As a Canadian I have spent far more time building museums in
other parts of the world. With this project, I’ve addressed the
vacuum in my life to do something for Canada,” he says.
Not willing to guess on where his next project may be, George,
who describes himself as an “explorer of unexplored possibilities”
hopes funding will come through. When it does, he’ll be able to
finish phase II of the story, which he believes has potential to connect
generations across Canada.
FROM DINOSAURS TO DIAMONDS:
INSPIRING
GENERATIONS
George Jacob
President and CEO,
Philip J. Currie
Dinosaur Museum
27OUR COMMUNITY
30. Self-declared big city boy Don Gnatiuk is not wanting for much in Swan City.
“When I first came here I was stunned by Grande Prairie because
it gets things done,” recalls Don, a native Montrealer who moved
to the city with his wife JoAnn about 10 years ago when he was
appointed President and CEO of Grande Prairie Regional College.
“It doesn’t wimp and whine. It has big dreams and just goes after
them. It’s a wonderful quality of life.”
Much of the community’s success is tied heavily to the oil and gas
sector. But creating jobs and wealth doesn’t provide a free pass
into the community.
“When you work in a community, whether you work in a college,
run a gas station, or work in the oil industry, you need to be
connecting with the people, you need to see the whites of their
eyes,” says Don.
It’s developing relationships, being part of a community and being
held accountable that creates success and earns a business its
social licence to operate, because ultimately, “It’s the community
that lets a business be successful.”
Don calls Seven Generations a company that stands out as a
model for corporate accountability.
“They’ve communicated, shared, and been hosts to the
community, making sure they understand what’s going on. Right
now, 7G has social licence to operate in this community. There’s no
question about that.”
While the company is providing an essential commodity, Don says
they’re doing it the right way, making decisions that may be to the
detriment of the company in the short-term but to the advantage
of the community.
“They don’t do it because it’s sexy, they do it because it’s right.
It’s easy to do the sexy things that get great publicity.”
It’s the people who run an organization that creates its success,
Don says.
“If you talk to Pat Carlson, you see a compassionate man who
cares about people. And his people care about people. They
harvest this product responsibly. They are humble and caring,
that’s just who they are.”
Don knows a thing or two about creating success and running
a people-centric organization. In 2010, the college was awarded
Employer of the Year by the Grande Prairie Chamber of Commerce,
and in 2015 Don himself was awarded Business Citizen of the
Year. It’s an award he now shares with 7G, which won the award
in 2016.
Don says his job is to serve the community and 7G plays a big part.
This relationship is helping bring better programming to the
region, something that will help all industry.
“7G will gain by having skilled workers and professionals. But this
has a residual effect by allowing everyone to have skilled workers
and professionals – that’s community spirit. They’re helping build
a legacy. That’s pretty cool.”
LEADING THE
BIG-CITY-BOY
LIFE IN SWAN CITY
Don Gnatiuk
President and CEO,
Grande Prairie
Regional College
28 OUR COMMUNITY
31. “I met a rig worker at 7G operations and he was a
driller. It was 20 below zero and we’re standing on
the deck and he says, ‘I’ve drilled in the States and
I’ve drilled overseas and the best place I ever drilled
is right here for 7Gen.’ They treat their people right;
it’s a people-first mindset. We didn’t ask him; he
sought us out to tell us that.”
WHEN YOU WORK
IN A COMMUNITY...
YOU NEED TO BE
CONNECTING WITH THE
PEOPLE, YOU NEED TO
SEE THE WHITES OF
THEIR EYES.
29OUR COMMUNITY
32. WE’RE ALL HERE TO
TAKE CARE OF EACH
OTHER. AN OPEN
RELATIONSHIP AND
GOOD COMMUNICATIONS
MAKES ALL THE
DIFFERENCE WITH
INDUSTRY.
Cheryl
MacPhee
HS&E Coordinator,
Aseniwuche
Environmental
Corporation
Living in a place where everybody knows your
name, a place where autumn is so beautiful it
takes your breath away – Cheryl MacPhee
couldn’t think of a better place to be. With
20 years in Grande Cache, Cheryl and her
husband Clyde wouldn’t raise their three
daughters anywhere else.
“Having that small-town feel, and knowing all your neighbours is
such a wonderful feeling. I love that people know my children –
they can’t get away with anything,” she says with a laugh.
Cheryl is the Health, Safety & Environment Coordinator for
the Aseniwuche Environmental Corporation (AEC), owned by
the Aseniwuche Winewak Nation of Canada. She seized the
opportunity to join the organization after being laid off from
Grande Cache coal mine, where she spent several years as a
first responder.
“I was ready for a change. I wanted to be part of making a
difference, not just be an employee. I spent 10 years doing the
same thing. I wasn’t making any difference to the community,
my life or the environment,” recalls Cheryl.
Since joining AEC three years ago, Cheryl believes she’s found what
she was looking for. “Working with and having the opportunity to
mentor community members has really meant something to me.
We have this great team and it’s become family.”
She’s also been given the opportunity to continue her own
learning, taking courses and participating in a job shadowing
program with Seven Generations. “It’s been a wonderful
experience being able to go and watch what they do,” says
Cheryl. She adds that the 7G team has made her feel welcome
and recognizes that what she is doing is an important job.
There are certain things that make companies stand out – good
and bad, Cheryl says. “With 7G, all the good things stand out.
They take the extra step, like spending time in the community,
making themselves available, and investing their time.
I can’t say enough about them.”
Cheryl recalls her first experience with 7G: “We were
invited by the company to a fundraiser for one of
their employees who had cancer. I couldn’t believe
what an amazing function it was. There was a silent
auction, a meal fit for a king, and a dance.”
Cheryl believes that because we are dealing with “our
land, our animals, and our environment” that it’s
only fair everyone is involved.
“We’re all here to take care of each other. An open
relationship and good communications makes all the
difference with industry – I see that with 7G.”
MENTORING
MATTERS
30 OUR COMMUNITY
33. Cheryl MacPhee monitors water quality and
river turbidity with 7G’s environmental
contractor – CCI Inc.
31OUR COMMUNITY
34. Mike Citra
Project Manager,
Grande Prairie, Mechanical,
Foothills Region
AECOM
It’s a bit of Meccano and a bit of Lego, but life-size, for real
engineers. It’s faster, cheaper, easier, safer and more precise.
Seven Generations employs modular methods to build Super Pad production and
processing facilities, a labyrinth of steel girders, tanks, high-pressure vessels, valves,
instruments, and endless stretches of pipes of various diameters.
The thousands of production plant pieces are assembled in a Grande Prairie factory, in a
warm, climate-controlled warehouse, then trucked to the production pad and bolted
together, flange to flange, wire to wire, gauge to control panel.
Canada’s unconventional resource developments are increasingly using repetitive,
assembly-like manufacturing methods, such as modular construction, to recover energy.
For 7G, global engineering and construction firm AECOM is the key fabricator, employing
more than 100 workers to fabricate and assemble production modules at its 15-acre
facility – known as a mod yard – in Clairmont, on Grande Prairie’s northern rim.
“Our yard and facility where we do the fabrication actually mimic what you would see on
site. The modules are assembled on piles and pre-fitted before shipping. The controlled
environment provides improved quality,” explains Mike Citra, Project Manager, Grande
Prairie, Mechanical, Foothills Region.
“It also helps ensure the project is completed on time and on budget. By eliminating
exposure to harsh weather in the field, you can stay on schedule.
Mike says shop fabrication inside the city keeps workers safer. AECOM workers can go
home every night, providing more work-life balance and saving camp costs for 7G.
AECOM is currently working on its second Super Pad for 7G. The production modules for
one Super Pad typically take about three months to build and about 30 days to install at
site, but Mike says AECOM can adapt to whatever schedule 7G requires.
Mike believes AECOM’s strong focus on hiring locally provides a competitive advantage.
“7G really likes to see local business and local people engaged in their projects. It seems
to really care. You can feel it and you hear about it.”
AECOM embraces the same values. “We strive to hire from the local work area,” says
Mike. “Some companies bring in their people that are eight to 10 hours away. This affects
the community as a whole because you’re not keeping that work local.”
Mike, a welder by trade with just over a decade in the oil and gas industry, says AECOM’s
relationship has grown with 7G since it started working for the company a couple of years
ago. He chalks that up to trust.
“When we first started, we had daily visits. No one was familiar with how we operate and
the work we do,” he explains. “As we’ve progressed, the 7G inspectors have a much bigger
comfort level.”
Open and honest communication has been key to building a relationship built on trust.
“7G is very transparent; there is no hidden agenda.”
As with many others who’ve come to Grande Prairie seeking employment in the
energy industry, Mike thought he’d be there for a year or two when he first arrived 10
years ago. “I’ve been here ever since. I enjoy it, it’s a decent town. It’s got all the
amenities and services.”
LIFE SIZE MECCANO AND LEGO FOR
REALENGINEERS
32 OUR COMMUNITY
35. 7G REALLY LIKES TO SEE
LOCAL BUSINESS AND
LOCAL PEOPLE ENGAGED
IN THEIR PROJECTS.
33OUR COMMUNITY
36. When your previous job was electrician, executive assistant
or adult educator, and your new job is Alberta lawmaker,
there are a few details to discover about the heart of the
province’s economy, hydraulic fracturing, the Montney
potential and how our province earns returns from the
energy resources Albertans own.
One Sunday in February, three of Alberta’s new Members of the Legislative
Assembly (MLA), plus three staff from the New Democratic Party caucus, donned
Nomex blues, hard hats and toured the Kakwa River Project, absorbing the 7G speed
course on everything liquids-rich natural gas. Field tours personify our Code of
Conduct. With our government and regulatory stakeholders we strive “to proactively
assist with the formulation of new policy that enables our company and our industry
to better serve society.”
MLAs continually face public questions about industry practices and safety,
and a day in the field gave our guests new insight into how 7G stewards Alberta’s
resources. “I had a basic understanding of how fracking worked, but it was really
invaluable to see it in action,” said Colin Piquette, MLA for Athabasca-Sturgeon-
Redwater and an adult educator.
“It will be valuable to me going forward because it will help dispel some of the
myths around that process with the people I talk to in the rest of the province.”
“I was also very impressed with the level of technical expertise, investments,
concerns for the environment, and concerns for worker’s health and safety,” said
Colin, who remarked on the scale of the natural gas resource in the northwest corner
of the province.
At one point on the drive to the field, Pat Carlson stopped at the Canfor road
intersection to explain how the resource potential in the Montney, deep under where
everyone stood, is more than sufficient to support large new energy market
integration plants that can turn field natural gas and liquids into consumer and
commercial market products.
“I found that really valuable, particularly because I’m the deputy chair of the
Caucus Economic Development Committee. One of my passions is effective
economic diversification.
“If we can find industries that can act counter-cyclical to our traditional, resource-
based boom and bust economy, then it’s not just the opportunity there in the field,
but also the potential for midstream and downstream processing, it’s the value add,”
Colin said.
“Today was an amazing experience. Everyone walked away from today a lot
more knowledgeable about the industry, and the company specifically.” said
Tammy Sale, the NDP Caucus Outreach Officer.
MLA SPEED COURSE ON DEVELOPING
ALBERTA’S
NATURALGAS
MLAs
Jessica Littlewood, Fort Saskatchewan-Vegreville
Jon Carson, Edmonton Meadowlark
Colin Piquette, Athabasca-Sturgeon-Redwater
34 OUR COMMUNITY
38. Dale Gervais
Reeve,
MD of Greenview
When it comes to working with the natural gas drillers, Dale Gervais has seen a few drill bits, dry
holes, roughnecks, and now a fresh approach to stakeholder relations.
Dale, raised in Little Smoky, Alta., spent 40 years in the industry
before politics.
Things have changed significantly since he started working on
drilling rigs at the age of 18, then moving on to trucking fluid for
the industry.
“Changes that have taken place from then until now are
phenomenal. The new technology, new techniques…,” says Dale,
Reeve of the Municipal District of Greenview. “But the biggest
change is mindset. On the job site, things used to be run like a
dictatorship. Now it’s run more like a democracy in terms of
safety and productivity.”
There is progress in the patch. It was Seven Generations’
fresh approach to stakeholder engagement that swayed Dale –
who’s been in politics for more than 10 years – to take notice of
the company.
“Heard about 7G four to five years ago. Not long after that,
I heard more stories that they had some really good property
and were doing some great things. I checked with other sources
and they had nothing but good things to say about them,”
recalls Dale.
When Dale and his council received an invite from the company to
tour its operations, he really started to take notice.
“We have no jurisdiction over any of 7G’s operations, yet we were
being included. We got rigged up at their Grande Prairie office,
went out to a hydraulic fracture, helicopter ride, saw a pad with
three rigs working on it. We were then invited to a meet and
greet with the 7G Board of Directors at Pat Carlson’s house.
It was a super good tour. I asked lots of questions and nobody
was stumped.”
Dale says he believes the company is taking a unique approach.
“We have presentations annually from other companies, usually by
the field personnel, but we don’t have the relationship with those
other companies that we do with 7G. Everybody on our council
knows Pat and a couple of the VPs. It’s a comfortable relationship.”
About 98 percent of the MD’s tax base comes from oil and gas.
Dale estimates that close to 60 percent of all exploration in
Alberta takes place in the MD of Greenview. This significant
funding enables Greenview to tailor its spending to support its oil
and natural gas industry, including investing in two new fire halls
and building a state-of-the-art recreational facility.
“Because of oil and gas revenue we can do all these things. These
facilities, of course, benefit residents, but we are hoping it will
also help in industry’s ability – and other businesses – to attract
employees to the area,” says Dale.
FRESH APPROACH
IN THE OILPATCH
36 OUR COMMUNITY
39. Wayne Drysdale has deep roots in Peace Country, a
landscape and people riveted in his heart, mind and soul.
A lifelong Grovedale farmer, Wayne’s story encompasses generations – parents born
and raised here. Now grandchildren growing up in the same community, located
about 20 kilometres south of Grande Prairie.
Re-elected for a third term in the Alberta Legislature in 2015, and having previously
served as a councillor in the MD of Greenview for 15 years, the MLA for Grande
Prairie-Wapiti has spent many years serving his constituents and watching the
region expand.
The region has earned its fair share of fortune through diversity in forestry, agriculture
and energy – a significant player and a large employer. Now Wayne worries about the
effects of the recent downturn on his community.
“In Grande Prairie, we’re lucky. There’s people out of work here as well, but I think
we’re better off than most places. Mostly because of Seven Generations, actually,”
says Wayne. “If it wasn’t for 7G we’d be in big trouble here. They’ve got to be going
through some tough times as well. It’s going to be a slow recovery and lots in the
industry aren’t going to make it.”
Wayne believes 7G’s strong commitment to hiring locally is helping the area survive
the current slump.
“7G is a major contributor in helping keep oil and gas alive in this area right now.
Without 7G, there wouldn’t be nearly as many people working in the oil industry in
Grande Prairie.”
Years of experience come with a clear understanding of what separates some
companies from the pack.
Wayne is familiar with 7G’s Level 1 Corporate Policy. His take? “7G sees itself as being
in the service industry – this is a different way of looking at it,” says Wayne. “You
don’t think of oil and gas companies as being in the service industry –
services work for them.”
Wayne believes 7G’s strong working relationship and commitment
to its stakeholders, its engagement on projects through local hiring
and education, is helping the company come out the other side.
When people can see and understand what’s going on in the
industry, there’s more acceptance and support, says Wayne.
While 7G has done a fairly good job communicating, he says the
industry as a whole needs to do a better job sharing its story.
“I think they do a pretty good job with the environment around here
but they don’t do a good enough job telling their story. The public
keeps saying industry has to do a better job, yet environmental
standards in Alberta are among the best in the world.”
TELLING THE
GOODSTORY
Wayne Drysdale
MLA,
Grande Prairie-Wapiti
37OUR COMMUNITY
40. The power of a new idea can transform the way we think and work. But having
ideas isn’t enough – they must be executed with boldness.
In the highly competitive, over-supplied North
American natural gas market, Canadian producers
must identify how to continuously add value and
challenge the status quo.
Terrance Kutryk, President and CEO of Alliance
Pipeline, says a clear strategic vision and
understanding the power of ideas can lead companies
to succeed in today’s market. He says realizing the
value of new ideas depends on “flawless execution, a
willingness to be bold and strength of conviction.”
Alliance itself was founded on a powerful idea. In the
mid-90s, pipeline takeaway capacity was a major issue
and existing pipelines were not adding new capacity
fast enough to suit natural gas producers. Alliance’s
founders came up with the idea of transporting
natural gas and NGL together, which ran contrary to
the thinking at the time. They found that shipping
liquids-rich gas at higher pressures was not only
feasible, but in fact improved both transportation
efficiency and transportation economics – especially
when delivered to the premium Chicago market in the
United States.
Alliance now delivers more than 1.6 billion cubic feet
per day of rich natural gas to the Chicago market,
representing about 20 percent of Canada’s exports.
“The idea of a dense-phase pipeline was not conceived
by traditional pipeliners, but by innovative thinkers,”
says Terrance. With the challenging market in recent
years and the end of its original 15-year contracts, he
says Alliance needed to reinvent itself to create new
economic value for customers, once again calling on
the power of ideas. Its recent transformation and
success is based on the idea of differentiating itself
from the pack – a parallel that Terrance draws with
Seven Generations.
“Pat Carlson’s idea of Super Pads was a concept he
utilized, fostered and grew into a real powerhouse and
is now leading edge in the industry. Having the drive to
thrive and taking that value-added business
proposition and executing successfully is something I
think has been demonstrated in spades by 7G.”
Not taking a prescriptive, mandated regulatory
approach to consultation is another value Terrance
says he and Pat share. For an organization to thrive
and survive, it must continually demonstrate its value
to the greater community in terms of what it does and
how it does it.
“7G stakeholder engagement is not an afterthought;
it’s a forethought. Building and maintaining strong
stakeholder relations based on trust is fundamental to
both 7G’s and Alliance’s success. We have to earn that
trust each and every day.”
As one of 7G’s largest business partners, Alliance is
transporting 250 million cubic feet of 7G natural gas
per day, which is scheduled to rise in increments to
500 million cubic feet per day by 2018.
Terrance, who has known Pat and some of the 7G
leaders for years, says their relationship is built on a
great deal of mutual respect and trust. Pat stands out
from other industry leaders because “he gets the
technical, he gets what’s right and he stands up for
what he believes is right,” he says.
“An upstream operator experienced an unfortunate
incident last year that forced us to briefly shut down
the pipe,” says Terrance. “7G came out publicly in
support of Alliance’s efforts to safely address the
incident – what we did and the way in which we did it.
That’s almost unprecedented. To do that was
something that really touched and moved each and
every one of us at Alliance.”
Seven Generations has the recipe for success, says
Terrance. “You look at the leadership team at 7G, their
business model and the success they continue to
create – the ingredients are there. The star chefs are
there. You know it’s going to be a great meal.”
THE POWER
OFANEWIDEA
7G STAKEHOLDER
ENGAGEMENT IS NOT AN
AFTERTHOUGHT; IT’S A
FORETHOUGHT. BUILDING
AND MAINTAINING
STRONG STAKEHOLDER
RELATIONS BASED ON
TRUST IS FUNDAMENTAL
TO BOTH 7G’S AND
ALLIANCE’S SUCCESS.
38 OUR COMMUNITY
42. WE ARE ALL PART OF
THE SAME EQUATION
We rely on petroleum energy to fuel our
vehicles, heat our homes and office
buildings, and we use countless items
derived from it daily – plastics, medicine,
cooking pots, cosmetics, fertilizers,
paint…the list is deep and long.
From the time your plastic alarm clock rings in the
morning to the time you brush your teeth with your
plastic toothbrush before bed, oil and natural gas have
touched your life in ways you may have never imagined.
Energy sustains life.
Petrochemicals derived from natural gas are used in the
manufacturing process to create everything from
plastics to medicine.
Natural gas is a lower carbon emitting and cleaner
burning engine fuel than other fossil fuels, emitting 50 to
60 percent less carbon dioxide (CO2
) than a typical new
coal plant.
Canada is fortunate to have an abundance of natural
gas; it greatly contributes to the quality of our lives, our
families, and our social fabric through investment in
infrastructure, job creation and social programs. We are
all touched by the energy industry in some way; we are
all part of the same equation.
THIS STUFF COMES FROM OIL AND NATURAL GAS?
Fertilizer, vitamin capsules and pharmaceuticals,
cellphones, military parachutes, safety glasses for
assembly line workers, tires, toothpaste and toothbrushes,
fishing rods, life vests, guitar strings, refrigerators,
artificial limbs for amputees, football cleats and
helmets, paintbrushes, farm insecticides, dentures,
bandages, baby monitors, tents and insect repellent,
crayons, golf balls, allergy medication, perfume, lipstick
and cortisone for autoimmune disorders.
there’salotof
life innaturalgas
40 THERE’S A LOT OF LIFE IN NATURAL GAS
45. ENVIRONMENT
The land is our common ground, the air our common
space, the water our common blood. Ecosystems sustain
and enrich our lives.
The health and diversity of our ecosystems is vital to our country’s – and the
planet’s – well-being. When people experience wilderness, their health improves.
Our land and environment also provide all the resources and goods we need.
They are critical for securing our standard of living. We need energy from fossil
fuels to stay warm, cook our food, travel to and from work, to manufacture all
the conveniences supporting our livelihoods. We depend on energy.
And our watersheds need protection. Critical wildlife habitats need
conservation. We all need clean air.
Our challenge is finding the right balance between economic growth, protecting
and coexisting with the environment and providing a secure and prosperous
quality of life – now and for future generations.
Love of natural beauty defines Canada. Protection and preservation of the
natural environment is among Canadians’ most widely shared values.
As our name Seven Generations conveys, we are serious about being a
responsible operator. We consistently strive to find innovative ways to minimize
our impact on land and wildlife, reduce our water use and manage our emissions.
We have a number of projects underway to increase the sustainability in
our operations.
We are voluntarily conducting a baseline study for our Kakwa River Project to
measure the natural environment, groundwater, surface water, plants, trees,
wildlife and their habitat. This information provides us a with good
understanding of the natural environment and possible project impacts. It arms
our environmental specialists with the knowledge and time to conserve habitat,
water and air as they design ways to minimize impacts and reduce potentially
adverse effects of our operations.
43ENVIRONMENT
47. WILDLIFE
There isn’t a lot of thicket in Toronto, Ont.
So when Environmental Scientist Ruth
Milkereit experienced her first vegetation
assessment at a 7G wellsite in Peace
Country, she was impressed.
“There I was, in all this bush. I was certainly not used to
wandering through really thick, dense growth,” recalls
Ruth. “On top of that, I was working on 7G’s Bear
Awareness course so my senses were pretty heightened.
I’m looking around, thinking, What if I see a bear!? I’ve got
my bear spray…my bear horn…”
Ruth was brushwhacking with two other biologists well
versed in field conduct. They frequently shouted, “Whoa
bear!” to avoid surprising a bear on the trail. Then, all of a
sudden, they disappeared. Nowhere to be seen.
Ruth started to wonder out loud: “Hey guys, where are you…?”
Then she heard, “Duck down!”
Ruth ducked, and to her amazement, she saw a series of corridors beneath all the
thick bush that bears and other wildlife had created. The animals made themselves
tunnels to navigate through the area by trampling the bush down.
“I’m on the Wildlife Highway!” thought Ruth, who discovered, animals – like
humans – also want the path of least resistance, and to coexist with each other, in
this case by making little corridors through the thicket.
Since starting with 7G about a year ago, Ruth, who has a PhD in Biochemistry,
has seen a lot of wildlife. A grizzly bear sow with her cubs, black bears, a
cinnamon bear, moose, lynx, and lots of white tailed deer. Even with the
abundance of wildlife in 7G’s project area, she is happy to report the company
hasn’t had a lot of wildlife conflict on 7G sites.
“It means we are successfully co-existing because they haven’t chosen to leave
the area and we haven’t set them up to fail.
7G is working with fRI Research, a leader in sustainable land and resource
management research in Alberta, to minimize disturbances field operations
may have on area wildlife.
7G’s original Bear Awareness program, developed with fRI, has now expanded to
a Wildlife Awareness program and is teaching 7G workers and contractors how
their behaviours directly affect the lives and habits of the wildlife living amongst
our operations. The program emphasizes behaviours and management practices
that enable bears and people to share space. Then when 7G’s operations are
suspended and facilities are removed, the animals are well prepared to re-inhabit
the land 7G once occupied.
“It’s understanding how we’re interacting with wildlife that helps protect 7G
workers, but also the animals,” explains Ruth. “Learning about animal
behaviour and habitat helps us change our behaviour to minimize contact.”
7G incorporates bear habitat data into project planning. Working with fRI, 7G
planners gain an understanding of a grizzly bear’s food sources, habitat and
mortality risk areas. This information is over-laid with planning, and we
position new pads to cause minimal disturbance.
The 7G team is also working with fRI to better understand how natural gas
operations can affect caribou habitat. Seismic lines and packed snow paths
make it easier for predators such as wolves and cougars to stalk their prey.
Appropriate degrees of bends and kinks in linear disturbances rather than
straight paths, create a more sustainable environment.
Ruth Milkereit
Environmental Scientist
45ENVIRONMENT
48. WATER
Are you a direct or indirect water user? Or both?
We use water every day. We are direct users when we water our lawn or garden, take
showers, and cook. But we are likely indirect users as well – when we ride a bike, mow
the lawn, or drive a car. While we didn’t use water directly, manufacturers and other
industry used water to produce the steel and other parts of our bike, lawnmower or car.
Industry uses water to produce oil and natural gas,
which are used to create many daily products. 7G
actively engages the public to hear concerns about
water use. Stakeholders care about water and tell us
we need to get better. We agree.
Natalia Thornton is one of 7G’s trusted water keepers.
Helping 7G find ways to improve water management
practices drives Natalia to investigate new
technology and innovative conservation processes.
Working with 7G operations and stakeholders,
Natalia, who has a master’s in civil and environmental
engineering, plans 7G’s water use by considering
regional water availability and conservation efforts,
and looks for ways to meet or exceed regulations.
To better manage our water use, Natalia and the 7G
water team are investigating alternative hydraulic
fracturing methods that could reduce water use, ways
to more sustainably withdraw water, and exploring
alternative water sources.
ALTERNATIVESFORHYDRAULICFRACTURINGFLUIDS
Water is the main component in hydraulic fracturing
fluids. The amount of water used depends on the
type of fluid selected.
A popular fluid to fracture rock is called slickwater –
composed of water and some trace additives. The
injection volume, pressure and speed of slickwater
determines the initiation and growth of a fracture in
the rock. This fluid carries proppant – typically sand –
to prop open the fracture. Without the sand
proppant, the weight of the rock above would
squeeze the fracture shut again and natural gas
would not be unlocked.
7G also uses a nitrogen-foam fluid, which is
composed of water, some trace additives and
nitrogen, the inert element that makes up about 78
percent of the Earth’s atmosphere. Using nitrogen
reduces our water consumption by 80 percent relative
to slickwater. Nitrogen, water, guar gel – made from
the nutritional guar bean – and some trace additives
create a foam that initiates and grows the fracture
and can suspend the proppant. Think of sand mixed
and suspended in shaving cream.
While the nitrogen foam method uses less water, it
requires more flaring to remove nitrogen from the
produced gas for the natural gas production to meet
pipeline and equipment specifications. This flaring
results in what we view, in the long term, to be
unacceptable levels of carbon dioxide (CO2
) emissions.
We are researching methane (light natural gas) as a
replacement for nitrogen in our nitrogen-foam fluids,
which could reap the advantage of lower water use
and reduce flaring. But the
technology is still in
development and there remain
some operational challenges to
be worked out.
WHERE DOES THE WATER WE
USE COME FROM?
7G sources water from surface
dugouts, which collect runoff
water from rain and snow melt. Water is also
sourced from nearby rivers and streams under
regulation by Alberta Environment and Parks. On
occasion, we purchase water from a utility company
in Grande Prairie.
For example, in spring, the water flow is much higher,
making it a better time to draw water. In winter,
water levels are often at or below historical
minimums, resulting in regulatory water withdrawal
restrictions or bans.
We are looking at ways to draw and store water
during high water flow, when withdrawals have less
impact on fresh water ecosystems.
We are investigating a number of alternative water
sources to replace surface water withdrawals for
hydraulic fracturing. These include: recycled water
from our fracturing operations, non-potable water
from deep, fossil water zones and waste water from
other industrial and municipal waste sources. Each of
these potential sources has its own challenges
related to both human and environmental safety.
It’s important to properly assess all possible
associated risks from both an operational and
ecosystem protection perspective. It’s likely that a
range of combinations of these alternative water
sources, as well as surface water withdrawals, will
prove to be effective and sustainable solutions under
numerous circumstances.
MANAGING WATER ON A REGIONAL SCALE
Any water management strategy that 7G develops
must incorporate a strong understanding of other area
users. The region has plenty of water – three fast-
flowing rivers – the Smoky, Kakwa and Cutbank. To
understand its potential impact on the watershed, 7G
conducted a conceptual scoping study of how much
water flows in these rivers, and compared that to the
potential maximum requirements for the region’s
entire unconventional natural gas operations, over the
long term. The study found that these operations’
water needs for one year would require less than two
days of flow from the Smoky River before the Wapiti
joins it.
Natalia Thornton
Environmental Engineer
46 ENVIRONMENT
49. How many 120-tonne fractures could we conduct
with the amount of water in Grande Prairie’s
Eastlink Centre’s 50-metre swimming pool?
The amount of water used for each fracturing operation depends
on the type of fracture fluid used. 7G typically uses nitrogen
foamed fracture fluid or slickwater fracture fluid.
With nitrogen foam, the pool could supply 26 fractures. With
slickwater, five are possible.
The Eastlink Centre’s 50-metre Olympic-sized swimming pool in
Grande Prairie holds about 4,170 cubic metres, or 1.1 million
gallons of water.
Smoky River
47ENVIRONMENT
50. GREENHOUSE GAS EMISSIONS
Seven Generations is leaving no pipe
unexamined to reduce emissions and
align with the Alberta government’s new
climate-change policy.
“We are looking at all the options and at every aspect of
our operations to find opportunity to optimize and reduce
emissions,” says Ken Woloschuk, 7G Manager, Major Projects.
“Technology innovation and process improvements in our
operations will be key to identifying ways we can reduce emissions.”
The province’s plan includes phasing out coal-fired sources of electricity by
2030, replacing coal with cleaner sources of generation, such as natural gas, wind,
solar and biomass. This shift away from coal is expected to increase demand for
cleaner burning natural gas, and that’s good for 7G.
Alberta’s carbon pricing applies to all sectors, charging those who emit carbon
dioxide (CO2
). A carbon price is the amount that must be paid to emit one tonne of
CO2
, a key greenhouse gas (GHG) that contributes to climate change.
By 2025, the province also wants to cut methane emissions by 45 percent from 2014
levels. Methane, emitted from facility leaks, is also considered a key contributor to
climate change.
THINKING ABOUT KEEPING EMISSIONS INSIDE THE PIPE
Most of 7G’s direct emissions come from:
¡¡ flaring of flow back natural gas after a well is completed, which produces
CO2
emissions.
¡¡ burning natural gas in compressors, power generators and process heaters.
7G’s Greenhouse Gas Management Team is striving to be a leading developer of
sustainable energy projects by reducing emissions every year. Ken’s team is
focused on:
¡¡ current and future emissions
¡¡ emission intensity – the amount of energy we expend in our operations for any
given activity
¡¡ business opportunities in the new regulatory environment
¡¡ energy efficiency and looking for ways to use wasted heat in our operations
• waste heat recovery systems would allow us to recycle waste energy from
one process by feeding that heat back into our operations, turning waste
into value
¡¡ potential to integrate renewable energy in our operations
We are producing energy for consumption by people. We are also looking for markets
where the energy produced has a full life cycle value and a low GHG footprint.
Under current regulations, Alberta charges a carbon tax on large industrial facilities,
such as coal-fired power plants, large oil sands and natural gas processing facilities.
While none of our facilities met the 50,000 tonne carbon dioxide (CO2
) equivalent
maximum threshold for reporting under Alberta’s Specified Gas Emitters Regulation
(SGER) based on 2014 emission levels, our emissions will increase as we grow.
As Alberta’s carbon regulations evolve, 7G will continue to look for ways to reduce
emissions and grow sustainably.
Ken Woloschuk
7G Manager, Major Projects
48 ENVIRONMENT
51. FLOW BACK GAS FLARING IS A
BALANCING ACT
We flare gas produced from a well after
we complete a fracture.
7G mostly uses nitrogen foam in fracturing
operations because it substantially reduces water
use. The downside is we increase flaring, which
means we emit more greenhouse gases.
After fracturing a well, the flowback production
contains gas too high in nitrogen to meet
specifications. We need to burn or flare this gas to
reduce the concentration of nitrogen.
We are investigating alternatives to nitrogen
fracturing and other recovery processes that would
reduce flaring.
7G Karr condensate stabilizer
49ENVIRONMENT
52. For Tim Alberts, safety is serious business. It’s non-negotiable.
Known as the 7G Mayor by staff, he’s worked with
7G since day one and is involved in everything from
safety and camps to managing production and
day-to-day operations. While Tim leads safety, he
knows that every worker must manage health and
safety (H&S).
“Each employee and contractor has a right and a
responsibility to refuse work if they think it’s
unsafe,” says 7G’s Production Manager. “Our Level 1
Corporate Policy defines how we work with
stakeholders, and includes a commitment to staff
and contractors to provide a safe work environment.”
Safety messaging is delivered from the top level,
with senior executives visiting the field and
delivering the message: “If it’s not safe, don’t do it.”
“Pat Carlson and Marty Proctor are sincere when
they go to site and talk about safety – in a way I
haven’t seen with other companies,” says Tim.
“They mean what they say.”
7G is exceeding H&S services typically offered
by mid-sized companies, providing enhanced
road safety, 24-7 paramedic services and
addictions support.
Everyone must obey 7G road rules or find
themselves suspended or out of a job.
“We have our own radar guns with safety personnel
monitoring the roads. If they identify severe
negligence, they’ll deal with the individual on the
spot,” says Tim.
Security workers monitor Archie Way, one of three
Kakwa River Project roads owned by 7G, full-time,
round the clock, 365 days of the year. Road speed
limit is 55 kilometres per hour.
“We have deer, moose, coyotes – the 55 kilometre
per hour limit ensures drivers have enough time to
brake properly if they encounter wildlife or another
vehicle. We’ve had a few fender benders but no
serious incidents and no wildlife strikes for several
years,” says Tim.
The one road we can’t monitor is Alberta Provincial
Highway No. 40, one of the area’s busiest.
“Highway 40 is extremely congested morning and
night. The line is long, people are in a hurry, late for
work or wanting to get home, driving too fast,” says
Tim. “We have spent a lot of time talking to our own
employees about how you drive on the highway.”
7G recently added GPS instruments with crash
notification monitors in all company, and some
operators’ trucks. In this way, 7G can track and find
individuals if they need assistance.
Having a camp at site also keeps vehicles off the
road – an average of 400 vehicles daily. “Not having
to drive on the highway is a huge safety benefit.
Workers aren’t exposed to the trials and
tribulations of being in town every night. They get
three good meals, a good night’s sleep, and good
amenities – pool tables, gyms, movie rooms. Helps
keep everyone focused and fit for duty,” says Tim.
Also keeping staff healthy and safe are 7G’s full-time
paramedics, 365 days of the year. “Most companies
need a certain number of workers on site before
they’ll hire full-time paramedics. Technically we don’t
need them here, but it’s the right thing,” says Tim.
In addition to first call services, the paramedics
provide a 24-hour walk-in clinic. The clinic’s services
are used by about 40 people every month. With a
loaded crash cart and access to an online physician,
the clinic is as close to a hospital as you can get out
in the bush.
While 7G’s drug and alcohol policy is common in
most companies – zero tolerance for intoxicants –
we have taken it a step further. We recognize there
is a clear correlation between living in remote
resource locations and drug and alcohol abuse. So
we are addressing the issue head on.
“I have worked in the patch my whole life and have
lived it and noticed how it takes people as it took
me,” says 7G Field H&S Counselor Chad Proctor, who
runs the weekly Alcoholic Anonymous meetings.
“Pat Carlson and I thought it would be a good idea
to have an on-site program to help people who need
or want help.”
Members meet once a week, and
Chad plans to adjust the meeting
times to fit camp residents’ needs.
Tim believes 7G’s proactive
approach to health and safety
has reduced injuries, kept people
healthier, and improved operating
performance and efficiency. In
2015, 7G had a substantially lower
Total Recordable Incident
Frequency (TRIF) rate of 0.76
compared to 1.29 in 2014 because
of the company’s clear and
intelligent safety policy, and
strong commitment to safety
from the top down.
SAFETY FIRST
Tim Alberts
Production Manager,
Seven Generations
Energy
50 SAFETY FIRST
53. As 7G matures, we are applying a more advanced,
modernized approach to safety that incorporates
behavioural observations, human factors and company-
wide safety alignment. We are creating a safety culture
where health and safety are part of everyone’s job.
7G SAFETY CULTURE BEST PRACTICES:
¡¡ Active senior leadership on site – demonstrating a commitment to
safety and delivering consistent, regular messaging on best practices;
¡¡ Worker behaviour observation – looking out for one another, protecting
each other, and protecting the work site;
¡¡ Informed culture – ensuring everyone understands the hazards and
safety expectations;
¡¡ Open communications – workers have the ability to express their
concerns and get them addressed;
¡¡ Proactive inspection programs, including equipment checks;
¡¡ Field level hazard assessments – hazard identification, reporting,
tracking and analyzing near misses and follow up to address concerns;
¡¡ Boots on the ground – using third-party experts in work site safety,
including conducting compliance audits; and
¡¡ Vendor tracking system – ensuring properly qualified vendors via
monitoring and auditing.
51SAFETY FIRST
