March 2014
March 2014
March 2014
Bakken Extra:
PAGE 28
TM
Tech Perspective:
PAGE 48
OIL
NORTH DAKOTA RESTROOM RENTAL AND PUMPING SERVICES CONTRACTOR GROWS WITH BAKKEN OIL BOOM PAGE 12
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- Luke Laggis
contents
MARCH 2014
EDITORS NOTEBOOK: DELIVERING SAFETY Everyone in the oil and gas industry needs to do their part to improve the transportation system.
10 @GOMCMAG.COM
Clips and quotes from the best of our exclusive online content.
features
12 CONTRACTOR PROFILE: PUMPING MORE THAN OIL North Dakota restroom rental and pumping services contractor grows with Bakken oil boom.
- Dee Goerge
24 BUILDING THE BUSINESS: BUILDING COMPANY CHARACTER Prevent ethical breakdowns by establishing a mission statement and leading by example.
- Stan Craig
42 ON THE MONEY: NEW OR USED? There are important questions to answer before deciding which way to go on that next big equipment purchase.
- Erik Gunn
20 EYE ON THE INDUSTRY: THE BIG BUSINESS OF SAND Mining operations and infrastructure are growing to support the demands of hydraulic fracturing.
- Cory Dellenbach
48 TECH PERSPECTIVE: MANAGING THE FLEET A guide to making the right decisions when researching and selecting a GPS tracking system.
- Ryan Driscoll
28 BAKKEN EXTRA: HOME IS WHERE YOUR MAILBOX IS Young entrepreneur sees an opportunity and turns it into a thriving business.
- Cory Dellenbach
56 INDUSTRY NEWS 58 CALENDAR 60 SAFETY FIRST: WORK NOT FOR THE WEARY Getting proper rest is an important factor in preventing workplace accidents and injuries.
- Doug Day
32 PRODUCT FOCUS: SITE LOGISTICS, DIGITAL TECHNOLOGY, FLEET MANAGEMENT AND TELEMATICS
-Craig Mandli
38 CASE STUDIES: SITE LOGISTICS, DIGITAL TECHNOLOGY, FLEET MANAGEMENT AND TELEMATICS
-Craig Mandli
on the cover
| MARCH 2014
Bakken Extra:
PAGE 28
Duane Barth, owner of The Rental Store in Jamestown, N.D., stands Pumping More Than outside the cab of one of his portable restroom service trucks. The Bakken oil boom and a willingness to go out and seek new business have helped Barth expand his clientele and grow the business, which now has two locations in North Dakota. (Photo by John M. Steiner)
TM
Tech Perspective:
PAGE 48
OIL
NORTH DAKOTA RESTROOM RENTAL AND PUMPING SERVICES CONTRACTOR GROWS WITH BAKKEN OIL BOOM PAGE 12
ISSUE FOCUS: Liquid & Dry Transport Equipment, Pipeline Installation, Maintenance & Inspection
n Contractor Profile: VZ Environmental reduces impact n Tech Perspective: Running your eet on natural gas
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Advertiser Index
MARCH 2014
ALL Erection & Crane Rental Corp...........14 Makita U.S.A. ...............................................................62 Masport, Inc................................................................22 American Clutch & Equipment Co........36 American Jetter .......................................................59 Master Pumps & Power..............................................18 Armal, Inc. .....................................................................23 Moro USA, Inc. ..............................................................5 Northeast Industrial Mfg .................................29 NOV Fiber Glass Systems.................................27
Donaldson Air Filters & Mufers, Cowl Portable Generators Racor Fuel / Water Separators Funk Pump Drives Felsted Control Cables Twin Disc PTOs Synchro-Start Governors / Speed Switches
Product Lines
Benlee, Inc. ...................................................................30 Pressure Lift Corporation.................................46 Canary, LLC ..................................................................49 R.A. Ross & Associates NE, Inc. .....................55 CK Power...........................................................................6 Safety Corporation of America ..................43
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Found It Now ............................................................59 Vacuum Sales, Inc. .................................................26 Freightliner Trucks A Div. of Daimler Trucks NA ........................45 Vanair Manufacturing, Inc. .............................43 Fruitland Manufacturing. ................................44 Volvo Construction Equipment ................19
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In U.S. or Canada call toll-free 800-257-7222 Elsewhere call 715-546-3346 Email: info@gomcmag.com Web: www.gomcmag.com Fax: 715-546-3786
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GapVax, Inc......................................................................3 Water Cannon, Inc. ...................................................2 Western Fleet Services ......................................41 GPS North America..............................................18 GPSTrackIt.com........................................................11 Granite Seed and Erosion Control...........30 Jetstream of Houston ........................................21 JLG Industries, Inc. .................................................17
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Editors Notebook
DELIVERING SAFETY
Everyone in the oil and gas industry needs to do their part to improve the transportation system
By Luke Laggis
A
Luke Laggis
certain degree of self-regulation is necessary if the transportation of oil and gas from the Bakken region is going to become safer and more efcient. All contractors involved in the transport of crude need to do their part. While none of them handle the material through the whole process, from well to renery, the responsibility is on them to make sure everything is correctly labeled and properly handled, and that at whatever point in the process theyre involved, everything is done right.
and the loss of 47 lives. The 99.9 percent of shipments that safely made it to their destination offer little consolation to them. One of the factors that made those derailments so explosive is the level of ammability of oil from the region. In some cases, tanker car loads of Bakken oil have been labeled improperly. Cynthia Quarterman, an administrator with the U.S. Pipeline and Hazardous Materials Administration, has been quoted as saying the PHMSA is concerned about the possibility shippers have not been fullling
There is a big dierence, at least in the eyes of the farm owner whose land is leased for drilling and local residents living near the rail system, in the industry pushing for a higher standard rather than the government forcing a begrudging industry to make changes.
The future health of your business, the communities in which you work and that regions oil and gas industry as a whole depends on making sure this happens. If accidents continue to happen, changes will come that may make doing business in the Bakken oilelds much more difcult. Proponents of rail and pipeline transport will tout their safety records, noting the overwhelming volumes and percentage of shipments that safely reach their destination, but the people of North Dakota are more likely to take note of and remember the Dec. 30 derailment that spilled 400,000 gallons of crude in Casselton, N.D. The people of Quebec will remember the derailment that resulted in massive explosions, the destruction of much of the small town of Lac Megantic,
8 GOMC www.gomcmag.com - MARCH 2014
their requirements in terms of testing and classifying and knowing what is coming out of the eld. A statement from The American Petroleum Institute, which represents the oil industry, noted that The oil and natural gas industry continues to work with regulators and the rail industry to
make shipment by rail as safe as possible. Our industry has asked the government repeatedly to improve its railcar regulations, and we voluntarily began several years ago producing and using cars that are safer. That push from within the industry is a necessary, proactive step toward signicant improvements, but it must come from every level of the industry. There is a big difference, at least in the eyes of the farm owner whose land is leased for drilling and local residents living near the rail system, in the industry pushing for a higher standard rather than the government forcing a begrudging industry to make changes. For their part, the Federal Railroad Administration, in a 2012 report, pointed to the difculty of enforcement, even with new regulations. Ownership, responsible party, accountability is difcult to determine, the report noted. Between developers, well owners, subcontractors, marketing companies, distribution companies, trucking concerns, independents, tank farms (product holding companies), track owners and end users, compliance is challenging. As the volume of oil shipped by rail continues to rise, stronger safety measures and greater accountability will grow more and more important. It starts on the drilling pad and continues all the way to the renery. Everyone, at every step of the way, needs to do their part to ensure that proper protocols are followed. Everyone needs to do their part to ensure safety, minimize environmental impact and put a positive face on the oil and gas industry.
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GoCH4, a company in North Dakotas Bakken region, has been investigating the level of interest in natural gas fuel consumption. Its a bit of a chicken-and-egg problem: Companies cant convert eets until theres a supply, and no one wants to invest in fueling facilities until theres a demand. Learn more about the costs of conversion, the benets of natural gas, and the future of the fuel. www.gomcmag.com/featured
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layers as you could underneath your coat. But things have come a long way since the days of cotton long underwear. Todays trick: compression layers.
- Dressing for the Cold: A Primer on Layering Clothing www.gomcmag.com/featured
MONEY MATTERS
The future is looking bright for those seeking jobs in the oil and gas industry. According to a survey of industry hiring managers, companies plan to hire more energy professionals in the rst half of 2014 than the previous six months. And salaries will follow a similar growth pattern. Find out which jobs are in demand, and learn how salaries in oil-rich regions compare with national and worldwide compensation packages. www.gomcmag.com/featured
10 GOMC www.gomcmag.com - MARCH 2014
Shell Canada Energy has reduced its reliance on potable water to zero at the Montney tight gas formation in British Columbia through a unique water reuse partnership with the City of Dawson Creek. Find out how wastewater from the city has been used for fracking, and learn how both entities are beneting from the arrangement. www.gomcmag.com/featured
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Cover Story
The Rental Store crew includes, from left, Don and Bonnie Larson, Justin Barth, Owner Duane Barth, Brandon Johnson and Denton Fortenberry. (Photography by John M. Steiner)
OIL
North Dakota restroom rental and pumping services contractor grows with Bakken oil boom By Dee Goerge
12 GOMC www.gomcmag.com - MARCH 2014
When Duane Barth purchased The Rental Store in Jamestown, N.D., in 1996, he had no idea portable sanitation would one day account for 80 percent of his business. Back then video rentals were a hot-ticket item at his four locations around Jamestown. Now, the outdated movie rentals are only available at one location, while the seven old portable restrooms that came with the business have been replaced with about 300 new units.
Don Larson, co-manager of The Rental Store in Jamestown, N.D., services Satellite Tufway portable toilets using a 2008 Ford 550 with a Masport pump and steel tanks (1,000-gallon waste/300-gallon freshwater) from Lanes Vacuum Tank.
What dramatically changed the business was the Bakken oileld boom. Though Barths main business is located about 300 miles from the heart of the shale oil drilling frenzy, the impact of the oil industry is felt throughout most of North Dakota. A booming economy translates to more construction, more money and more demand for portable restrooms among oil and service companies willing to pay the extra mileage for The Rental Stores services. They recognize the clean [restrooms], and they nd out who we are. If I had to say the biggest item thats helped us, its service, service, service, Barth says. But Barth is the rst to admit he had to quickly learn the ner points of portable sanitation service when the business heated up. LEARN ON THE FLY I had to gain knowledge quickly, Barth says about his introduction into the portable restroom business. A potato processing plant went in 10 miles away, and I had orders for 15 units. With just seven old restrooms on hand, Barth contacted Satellite Industries to purchase new units. Then he and his two sons (ages 10 and 12) stayed up all night assembling new units in time for delivery. The restrooms were nice, but servicing them was challenging to say the least.
He got his rst oileld client in 2008 when he rented restrooms for workers on the Keystone pipeline. After that work was nished, companies he worked with asked for restrooms at oil rig sites. As demand grew, Barth added a satellite ofce (Bis-Man Portable Toilets) in Bismarck, which is 100 miles closer to the oilelds. Barth charges mileage from Bismarck for servicing the oileld restrooms. Companies willingly pay it, because The Rental Store technicians deliver the services clients request. (continued)
MARCH 2014 - www.gomcmag.com GOMC 13
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<< Bonnie and Don Larson, co-managers of The Rental Store, prepare portable restroom supplies for a street dance in downtown Jamestown. ABOVE: Don Larson services Satellite Tufway portable toilets at a job site.
Weve grown because were not afraid to get out there and look for business, knocking on doors, putting up iers and cold calling. If you have a personal relationship, they come back again and again.
Duane Barth Weve been fortunate to pick up some big accounts up there. We give them excellent service, Barth says. That includes servicing the restrooms twice a week for some clients and always thoroughly cleaning the restrooms. Nobody likes a dirty restroom, he explains. You shouldnt be able to smell a restroom 10 feet away. We make sure we use enough chemical to reduce the odors. Workers use Walex packets and Cabana Spray by Safe-TFresh. With summer heat, they spray an extra dose for longer performance. Currently, technicians wash down the restroom, rell the chemical and hand sanitizers and spritz a fragrance spray to keep it fresher longer.
16 GOMC www.gomcmag.com - MARCH 2014
BUILDING A TOUGH FLEET Barth has four trucks: a 2008 Ford F-550 from Lanes Vacuum Tank Inc. with a steel 1000-gallon waste/300-gallon freshwater tank and Masport pump; a 2006 Chevy 7500 with a 2,300-gallon aluminum tank and Masport pump from Lanes; a 2012 Dodge Ram 5500 with a Satellite Industries 650-gallon waste/300-gallon freshwater steel tank and Masport pump; and a 2001 Ford F-350 from Satellite carrying a 270-gallon waste/130-gallon freshwater steel tank and Conde pump (Westmoor Ltd.). Except for the 2008 Ford, the trucks are fourwheel drive, which is important for navigating the rugged terrain of the regions oilelds, especially during the harsh winters. Portable restrooms include 50 Maxim 3000 and 150 Tufway units from Satellite and 150 Wave units from Armal. The Rental Store carries 20 PolyJohn Enterprises hand-wash sinks with hot-water systems. A 2012 Dodge 3/4-ton pickup pulls a 16-unit restroom delivery trailer built locally by Midwest Machine. He also offers 50 dual-unit lowering trailers carrying Armal units. Waste from all operations is hauled to the Jamestown wastewater treatment plant. OILFIELD CHALLENGES Once Barth had a few restrooms in the Bakken, word spread that his units were clean, and more clients started calling. Oilelds have brought some excitement into the business, he says. With the growing opportunity comes challenges regarding safety regulations. Technicians working oil rig locations must wear ame-resistant clothing, steel-toed boots, hard hats and safety glasses at all times and be equipped with H2S monitors and go through special safety training. The monitor sensors detect dangerous hydrogen sulde gases, and oil companies require them to be worn by all workers on oil drilling sites.
Weather, specically relentlessly strong winds and cold winters, adds challenges. Barth looks for sturdy restroom units and takes great care in assembling and placing them to last in these conditions. Its not uncommon for drivers to log 600 miles per day to reach remote units. For winter, technicians add a salt/methanol/water mix to keep the restrooms thawed. Pumping can still be a challenge however, with hoses frequently freezing. The Rental Store also provides heaters to keep the restrooms thawed. Before they offered heaters, Barth recalls a couple of restrooms that were partially melted when customers installed their own heaters that were too large and too hot. The makeshift heating caused damage to his units, but its not the only damage hes encountered. Ive had some shot up with a shotgun or rie, he says. There have been vandalism issues, too, and as a result, hes developed a zero-tolerance clause in his contract. If the restroom is ruined, the customer pays for it.
I really thank people who made us successful, and we continue to strive to be the best we can be. I believe that the secret to being successful is hard work.
Duane Barth BOOMING BACKYARD While most of his portable restroom business is related to the oilelds, Barth nds plenty of opportunities closer to home. Some are related to disasters, such as the 160 restrooms rented around nearby Valley City during spring ooding a couple of years ago. (continued)
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Don Larson takes the vacuum hose off the truck as he sets up to service a pair of Armal portable toilets at a job site.
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Most rentals are related to Lanes Vacuum Tank, Inc. growth, such as when the Keystone 800/592-3308 pipeline was installed from North Masport, Inc. Dakota to South Dakota, and he 800/228-4510 rented out 200 restrooms to cover a www.masportpump.com (See ad on page 22) 250-mile stretch. Clients contact The Rental Store PolyJohn Enterprises 800/292-1305 for events as well, including an annual www.polyjohn.com air show. One popular event celebrates St. Safe-T-Fresh 877/764-7297 Patricks Day. Despite snowy weather www.safetfresh.com in 2013, Running O the Green Satellite Industries organizers upped their order from 20 800/328-3332 to 30 restrooms. Participants (usually www.satelliteindustries.com between 2,000 and 3,000) start at Walex Products Co., Inc. Jamestowns trademark 26-foot tall 800/338-3155 buffalo sculpture and make their way www.walex.com through the streets with stops at local Westmoor Ltd. watering holes and the portable 800/367-0972 www.westmoorltd.com restrooms. The events entry fees are donated to people who have cancer and a camp for people with disabilities. Because of industrial expansion, Barth anticipates demand will continue to grow. An ethanol plant and fertilizer plant are going up 10 miles from Jamestown, and The Rental Store is already servicing restrooms at a big expansion at a John Deere air seeder manufacturer. I really thank people who made us successful, and we continue to strive to be the best we can be. I believe that the secret to being successful is hard work, he says. Barth, who has suffered several neck injuries and drawing close to retirement, has stepped back from day-to-day operations with plans to sell the business to a couple he recently hired as managers. Still, he anticipates there will be plenty of work for the future. North Dakota has a booming economy, and I dont see much slowdown for at least the next 15 to 20 years. GOMC
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heres a sand boom going on in the U.S. and a lot of companies as well as the states in which they operate are taking advantage of it. Sand a main ingredient in hydraulic fracturing is becoming a hot item right now thanks to the growth of fracking in places like Pennsylvania and North Dakota.
According to PacWest, a consulting rm based in Houston, sand use has increased 25 percent since 2011 and another 20 percent rise is expected over the next two years. The rm also says companies are going to use about 56.3 billion pounds of sand this year for fracking operations. Preparing sand for fracking involves sifting it for the correct-sized crystals, separating out contaminates, and washing and drying it. In 2013, an amount of sand equal to four Great Pyramids, 200 Eiffel Towers or 45,000 Chevy Tahoes was used in fracking, according to Russell Gold, a reporter for the Wall Street Journal and author of The Boom: How Fracking Ignited the American Energy Revolution and Changed the World.
The Preferred Sands mine and processing plant near Blair, Wis., spans 400 acres. (Photo by Lukas Keapproth/ Wisconsin Center for Investigative Journalism)
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GOMC
<< From bottom right, a conveyor carries sand from the crushing area to a wash plant tower to be washed and sorted by grain size at the Preferred Sands plant in Blair, Wis. (Photo by Lukas Keapproth/Wisconsin Center for Investigative Journalism) >> The frequency of rail cars blocking roads, and noise from the increase in train trac, has led to public complaints in the Chippewa County area. But local operator Progressive Rail has added jobs and invested hundreds of thousands of dollars into rail line improvements to accommodate the sand industry. (Photo by Chippewa Valley Newspapers)
Wisconsin has seen a big impact from the increased demand for fracking sand. Wisconsin is a signicant source of white sand ideally suited for the process, and has seen a huge increase in sand mines and other facilities. According to Deb Dix, environmental enforcement specialist with the Wisconsin Department of Natural Resources, there are now more than 100 sand mines, loading and processing facilities in Wisconsin, up from ve sand mines and ve processing plants operating in 2010. Many fracking outts prefer sand from Wisconsin because it is bigger and has rounder grains better suited for holding open larger pathways. It is denitely an industry that has grown quickly in Wisconsin and continues to grow, Dix says. Railroad companies are also beneting from the boom, with a growing number of boxcars carrying sand to shale elds in Texas, New Mexico, North Dakota and Pennsylvania. Union Pacic Railroad says they shipped 94,000 railcars of fracking sand in the rst half of 2013 an increase of 20 percent over the same period in 2012. Canadian National Railway Co. is spending in excess of $68 million over the next several years to upgrade more than 100 miles of track in Wisconsin so it can boost its shipments of sand out of the state. Bryan Shinn, chief executive of U.S. Silica, says it takes about 25 railcars of sand to frac one well, and some companies are experimenting with even larger volumes. Instead of using the typical 4 million pounds, they are experimenting with pumping as much as 8 million pounds of sand into a well, adding around $600,000 to the cost of an oil well while potentially doubling its output, according to Matt Conlan, a Wells Fargo analyst. PacWest reports that demand was so high last year that prices hit an average of $75 per metric ton.
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thics and values are eroding across a wide spectrum of government, organizational and corporate sectors around the world. Bribes, cheating, criminal behavior, sexual abuse and harassment are becoming commonplace. A nationwide survey on workplace ethics in 2011 opened with this startling statement, Based on what we see now, we expect workplace ethics to decline. That is a powerful and alarming comment, but it is based on solid research from the Ethics Resource Center.
Why are ethics in decline for individuals and corporations? A me-rst attitude that places corporate interests and individual pleasure or gratication before all other ethical responsibilities. A craving for power, status, wealth and recognition that sees people, family, friends and others as tools to be used whenever necessary. An everybody is doing it attitude that implies permission for any behavior. A lack of accountability, which makes ethical misconduct a personal matter. A social acceptance of wrong-doing as a way to succeed, stand out and achieve goals without the out-ofdate restraints of the past. A focus on short-term benets at the expense of quality, value and integrity. The good news is that you can prevent ethical issues in your company by making ethical behavior a priority. Here are a few ways to create a culture of ethical behavior:
Stated values have a perceived value in the workplace when posted, referred to and taught. They give meaning to the daily work routine.
It seems as if not a day passes by without a new story about ethical breakdowns. From doping athletes in baseball and cycling being stripped of titles and victories to politicians who behave as if sexual harassment and nancial selfdealing are privileges of ofce, the stories are never ending.
24 GOMC www.gomcmag.com - MARCH 2014
1. State the values that matter and why for your rm, your clients and every employee. Stated values have a perceived value in the workplace when posted, referred to and taught. They give meaning to the daily work routine. A common commitment to the client, providing the best products in the market place, and unparalleled service
carry more value than stockpiling prots, which employees do not always share. 2. Publicize the rms commitment to ethical values. Customers, clients and prospective business are all impacted positively when values are publically stated. It is especially powerful when the values are demonstrated. Target, Sams Club and Wal-Mart are just a few retailers who put the dollar amount of their charitable contributions on display. 3. Top-down leadership must commit to ethical values. Research indicates that employees do not believe top management lives up to the values and ethics they say they believe. Leaders must demand the best from themselves and reward employees who report misconduct and violations of the stated policy. 4. Managers at every level must pledge to learn, teach and apply the values stated. When employees see their own management team living corporate or organizational values and expecting all others to do the same, it is a conrmation that values matter. 5. Remind the entire organization that the right thing to do is always to do the right thing. Pressure to create sales and meet rollout deadlines, or reach the goal and please the stockholders or owners should never result in compromised behavior. Values and ethics are the glue that holds everything together. When they are broken, the sound carries far and wide and can trigger an avalanche of ethical lapses that can never be undone. 6. Mottos and mission statements make a difference when they are displayed throughout the workplace. A mission, a motto and stated values can be printed on wallet cards, posters or wall plaques in ofces and gathering places. Values matter, and seeing them implies that they are just as important as labor laws and evacuation guides, and perhaps more meaningful for employees. 7. Be quick to take action when ethics and values are violated. If you want to denigrate a previous effort and integrity, ignore a violation when it occurs. Permitting violators to continue in their position when the facts of poor behavior are clear ends all creditability with your employees. The word will circulate quickly
and undermine any previous efforts to maintain ethical standards. If it is believed that some can get by with anything while others are punished, that sends a powerful message that ethics do not exist. Building the Business offers ideas and information to help you operate 8. Ethical training and discussions help put values to work. When your company more efficiently and profitably. If you have a question, management expresses the values that the company or organization is to live comment or a topic youd like to see addressed, send an email to editor@ by, employees are challenged to follow the example the company sets. This gomcmag.com. is one time when top-down leadership clearly works. Describing the right actions resulting from your shared values builds trust. Consider this: your values actually create value for your company. Year after year some of the worlds most admired companies, the best places to work and highest growth companies are those with clear corporate values demonstrated in the work place. Top ethical companies are in every industry: oil and gas exploration, health care and restaurants, Internet companies and nancial service. There are a variety of rankings from Forbes, Ethisphere and others. Satellite Ethisphere plainly states, These companies also understand that a strong culture of ethics is also key Internet to helping drive nancial performance. Employees want to come to work every day more excited than the last no one wants to dread going to work. Even tedious and repetitive tasks have a purpose larger than the action itself. A unied understanding of the key values applied to decisionmaking makes a difference. A deep commitment and belief in the mission of the company to delight customers, develop dedicated clients, solve problems and positively impact others is a value to be created, understood and shared. When the ethical line is blurred and values are questioned, employees stop believing in the company and taking pride in their job and its signicance. Your business or organizational culture is a conscious state of mind. It makes all the difference in the pride and accountability in each employee and how clients, customers or potential clients are treated The Quick, Accurate Internet Deployment Solution. in your organization. Culture is built on values, When Skycasters released their rst Nomad AZ/EL Cap to the Oil and Gas industry in ethical expectations and behavior. Make your ethics 2010, it quickly became the most popular satellite dish aiming system on the market. and values real and watch the positive changes that Installers praised its speed, precision, and ease of use. But we didnt stop there. With ow from these clear and expressive centerpieces of a more rugged elevation crank handle and featuring a new spring-assisted design, our your culture. new model has virtually eliminated back lash. Coupled with a new heavy duty John Hammond said, Character is the real support rod and cross support system, the quality and reliability of the Nomad is foundation of all worthwhile success. That applies to unsurpassed. Designed for years of hassle-free use, the more often you move your corporations and organizations as well as individuals. satellite dish, the more youll appreciate the Declining ethics and values need not be a prophecy Nomad AZ/EL Cap. Call 1-800-268-8653 fullled. Build your corporate character, explain and to get your hands on one today. live your values and it is likely success will follow in See all our portable solutions satellite internet more ways than you can imagine. GOMC at skycasters.com
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ABOUT THE AUTHOR Stan Craig, the founder of the ForeTalk Seminar, is an accomplished nancial planner, executive coach and keynote speaker. For more information, visit www.ForeTalkSeminar.com.
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26 GOMC www.gomcmag.com - MARCH 2014
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27
Bakken Extra
hen David VanAssche rst moved to Williston, N.D., over two years ago, he was a recent college graduate living out of an RV and working in accounts receivable for an oil company. VanAssche, who spent his rst four months in Williston working for that oil company, needed the mail delivered to him at his job because he didnt have a physical address in Williston. He wasnt alone. Many of his co-workers were doing the same thing. I heard people complaining all over that they cant get their mail, theres a waiting list hundreds of people deep at the post ofce, VanAssche said. Back where Im from there are UPS stores and all those kind of things, but theres nothing like that here. That spurred his idea of helping those in the Bakken area with their mail issues. VanAssche quit his job, and with less than $4,000, started MailBox Solutions Plus. GETTING STARTED After seeing that many of his coworkers at the oil company had mail delivered the same way he did to the ofce VanAssche talked to a mail carrier about how the U.S. Postal Service was struggling to keep up with the areas rapid growth. Its impossible for the post ofce to keep up with the speed at which people are moving into this area and I didnt see them catching up for many years, VanAssche said. The U.S. Postal Service requires people to prove they have a local address to qualify for a P.O. box. For job seekers who move to the Bakken and live in their cars, campers
or other temporary housing, they cant qualify. They also dont have a local address to list on job applications. VanAssche knew he had a solid idea, he just needed a home for it. Thats when he noticed a radio station in Williston a big building with a very small staff and plenty of extra room. I found the radio station manager and approached him with the idea of radio advertising and asked him about the rooms in the back of the building, VanAssche said. It was an unused DJ booth, a 10by-10 room. That was my ofce, thats
for several construction contractors. VanAssche currently has seven employees that work for him and will be adding four or ve for the new store. VanAssche also offers dangerous goods shipping for a client that doesnt have in-house personnel properly trained to ship those kinds of materials. Basically the customer approached me and asked if I can ship dangerous goods and I was like, well, no, but maybe we can start, VanAssche says. He took part in a training session with FedEx for several days in Salt Lake City and got certied to offer the service. Now Im able to advertise for those services. Halliburton used me for explosive shipments for their frac operations and things like that. GETTING A MAILBOX Its easy to rent a mailbox from MailBox Solutions Plus. All it requires is a little bit of paperwork and about $20 a month, according to VanAssche. Potential renters must present two forms of ID a requirement of the U.S.
When I rst started, I was your stereotypical broke college student, and when I started renting mailboxes it was basically a hobby that I lived o of and now its actually a real business.
David VanAssche
where I sorted the mail, thats where it started from. Now, nearly two years after opening, MailBox Solutions Plus has its own location in Williston with about 600 mailboxes on site. A second location is opening soon in Watford City, N.D. It just keeps rapidly growing and over the last three or four months its really started to snowball into something big, VanAssche says. When I rst started, I was your stereotypical broke college student, and when I started renting mailboxes it was basically a hobby that I lived off of and now its actually a real business. His company now offers full-service pack and ship, mailbox rentals and printing
Postal Service. They sign a form giving the business permission to receive mail and packages on their behalf and they are given a key. We collect their information and a phone number so we can let them know when packages arrive, VanAssche says. If theyre out in the eld busy working or something, they really dont have time to be stopping here every day to see if they have mail. If they get mail or a package, we have an internal system that will alert them by call or text. Xtreme Drilling and Coil Services a company based in Texas with a location near Williston is one of VanAssches clients.
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Theyve been a real good customer of ours, he says. They have their mailbox with us for their rigs. Their rigs move around from place to place, but they have a mailbox so if that rig needs to order something, it can be shipped out here for them. We give that rig an address. MailBox Solutions Plus pays a fee to the post ofce to get preferential treatment when mail is sorted, so customers receive their mail by noon every day. They also accept packages from UPS, FedEx and other delivery services. FUTURE PLANS VanAssche is keeping his eyes on the U.S. Postal Service and what they plan to do with some of the smaller post ofces in his area. There are a lot of small towns where the post ofce window is only open two or three hours a day. All those post ofces are at high risk of shutting down because of expenses, VanAssche says. If the post ofce decides it wants to close those, Im going to petition them that I am ready to take them over immediately. I could buy the building, the land and offer the current tenants the rst right to keep their box numbers, but I would just reopen it under MailBox Solutions. Thats what I see as the next big step. VanAssche knows he stepped into the business at the right time and in the right area, saying that his business probably could not succeed at the same level anywhere but in the Bakken region. Its a business thats developing on the go, VanAssche says. Its exciting and I couldnt be happier. GOMC
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Product Focus
SATELLITE COMMUNICATIONS
SATELLITE AND INSTANT ALERT KEYRING DEVICE The T5000 satellite vehicle- and equipment-tracking device from GPSTrackIt.com offers affordable, real-time tracking to remote energy production operations in rural, wilderness, desert and oceanic locations. It provides coverage across 80 percent of the Earths surface. Vehicles, equipment and personnel can be located via Fleet Manager software on any computer, tablet or smartphone. It is designed for use in areas where there is no cellular coverage, safety and liability are concerns, emergency alerts may be needed, and remote real-time monitoring is crucial to operational success. Combining it with an Instant Alert Keyring Device additionally enables remote personnel to contact base immediately in an emergency situation. 866/320-5810; www.gpstrackit.com. SATELLITE AZIMUTH ELEVATION ALIGNMENT DEVICE Nomad azimuth elevation caps from Skycasters make aligning a satellite dish quicker and easier. It is designed for use in situations where an antenna may need to be moved, no matter how often. It features a large, rugged azimuth and elevation wheel, which work together to align the dish with ease and precision. Simply turn the azimuth wheel and the satellite dish glides effortlessly into position. Setting the elevation is just as simple, turn the elevation wheel until you have the right angle, tighten the bolts and the satellite dish is locked down. It comes with an upgraded reector and rugged hardware to handle the harsh conditions. 800/268-8653; www.skycasters.com. SITE OPERATIONS SYSTEM Terra Ferma developed the Oak Series family of products and services to provide site operations, engineering and management with real-time insight into the detailed operations of each site. The modular system combines off-grid power (solar, wind and fuel cell), sensor integration (pressure, level, ow and leak detection), video surveillance (day/night), remote communications (cellular, satellite and wireless) and monitoring portal with reporting capability. The end-to-end solution will increase revenue, reduce overhead, mitigate risk, and improve operating efciencies by providing up-to-the-minute monitoring, system alerts and reports for each site. Engineering groups are able to interpolate the data optimizing efciencies, production and safety. Field engineers are able to focus on any site out of tolerance or in need of attention. Management is able to make sound business decisions with trend analysis information archived from a single site or a region of operations. 855/326-5125; www.terraferma.com.
Terra Ferma
Skycasters
GPSTrackIt.com
SOFTWARE
EQUIPMENT TRACKING SOFTWARE Checkmate tool and equipment tracking software from Dynamic Systems features metal barcode tags that reduce the time it takes to locate equipment by assuring that items will not be lost or left behind. The software records where the item is, who has it and when it is due back. It includes a maintenance module that records repairs, schedules regular periodic maintenance, records warranty expiration dates, and also tracks vehicle service and registration renewals. Barcode label options include preprinted polyester labels with adhesive backing, two-dimensional labels, custom labels and metal tags, which allow users to track items where the typical barcode label wont adhere. 800/342-3999; www.a-barcode.com.
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Dynamic Systems
GPS FLEET TRACKING SOFTWARE Manageit from Ituran USA is designed for eet managing and dispatchers, and contains instant and accurate GPS eet tracking, personalized reporting, recovery services, geofencing technology, real-time notications via email/SMS, landmark report, Driver ID capabilities and PTO alerts, along with other features. The software provides customers with 24/7/365 live recovery assistance for both emergency and technical support. 866/543-5433; www.ituranusa.com. DRIVER BEHAVIOR TRACKING OnlineAVL2 eet tracking with driver behavior feature from Navman Wireless enables eet operators to identify drivers who are compromising safety and fuel efciency. The system offers four reports and two dashboard KPIs that pinpoint trouble spots, while allowing drilldown to a specic driver directly from the Dynamic Dashboard, regardless of eet size. 866/527-9896; www.navmanwireless.com. COMPANY MANAGEMENT SOFTWARE Telogis for Oil & Gas is an extension of Telogis software platform for companies that require mobile applications, real-time work order management, dynamic routing, commercial navigation and telematics for their mobile workforces. It is an industry-specic, cloud-based enterprise software suite that monitors a vehicles systems and sends instant in-cab alerts for unbuckled seat belts and aggressive/unsafe driving, including hard braking, fast acceleration and speeding. It also delivers mobile workforce applications, monitors vehicle idle time, off-road mileage, utilization, power takeoff (PTO) use, total miles driven and fuel usage. It provides oil and gas companies with the ability to develop and import their existing map layers and track high-value mobile assets to prevent loss and maximize utilization. 949/389-5500; www.telogis.com. COMPLETE OPERATIONAL SOFTWARE Evolution software from WennSoft delivers asset management, maintenance agreements, simple and segmented work orders, eld service, advanced dispatching and scheduling, mobile solutions for eld technicians, quotes, purchasing and invoicing, and includes Microsoft Dynamics CRM. It can operate as a stand-alone solution, or integrate with Microsoft Dynamics ERP products or other business application software and services. It accurately tracks all tools, equipment and assets to promote efciency throughout a company. 888/936-6763; www.wennsoft.com.
WIRELESS COMMUNICATIONS
WIRELESS I/O NETWORKING WaveLine 10i, Class I, Division I (C1D1) certied high-performance wireless I/O networking from FreeWave Technologies is designed for applications in hazardous environments. The system monitors pressures, temperatures and liquid levels, while eliminating the need for conduit and installation outside of the C1D1 area. 800/548-5616; www.freewave.com. MOBILE COMMUNICATION APPLICATION NexTraq Connect helps employees and managers stay connected between the eld and the ofce. The mobile application allows team members to clock hours, assign and receive jobs, and nd the easiest driving route. The Time and Attendance module is a free feature that allows workers in the eld to remotely clock in/out and record all breaks during the workday, conveniently and accurately. This ensures managers have the correct hours worked for accurate labor costs for all employees. It works on any Apple or Android device and gives managers a true picture of the hours employees worked during the course of a day, week and month, eliminating the need for manual time cards and streamlining the payroll process. 800/7942738; www.nextraq.com. RITRON WIRELESS MONITORING, ALERT SYSTEM Quick Talk RQT from Ritron is an industrial-grade radio transmitter with sensor inputs and voice recording storage that automatically alerts radio-equipped personnel when plant conditions change. The system accepts inputs from up to four switches or sensors. The RQT radio operates on six AA batteries or can be powered by an optional 110V AC adapter. The system is available with a 2-watt transmitter or 120 megawatt transmitter. It is compatible with most business-band two-way radios and can be used with UHF radio repeaters for added coverage. 800/872-1872; www.ritron.com.
FreeWave Technologies
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MAN SAFETY MONITORING PROGRAM The CommLink man safety monitoring program from SureCall is used in aviation, geological survey, chartering, heavy equipment, energy exploration, well construction, engineering and environmental applications, with full-time active monitoring. The PAR (Personal Accountability Reporting) system automatically texts each user at preprogrammed intervals. The lone worker simply pushes two buttons to acknowledge the check-in. If the worker fails to check in, a second text is sent. If theres no response, the monitoring center treats the situation as an alarm and activates its notication system. No movement notication is in place in case a worker is unable to move. Coverage is available through redundant communication and connection types using multiple satellite and GSM cellular services to provide global coverage in the most remote areas. 877/310-0088; www.surecall.ca. HIGH-SPEED WIRELESS NETWORKING RADIO The industrial FL WLAN 5101 802.11a/b/g/n radio for high-speed wireless Ethernet communications from Phoenix Contact offers high-speed wireless networking up to 300 Mbps, meeting the needs of the most bandwidth-demanding applications such as IP-based video surveillance, plant networking and mobile operator access for programming and maintenance. Cluster Management technology simplies wireless network management, as all access points can be easily congured and managed via a single Web interface using any access point within the network. The unit is just 40 mm wide in a metal housing, saving valuable space on the DIN rail. The data and antenna ports are conveniently placed on the top and bottom of the housing, eliminating clearance issues with the enclosure door. 800/322-3225; www. phoenixcontact.com.
Phoenix Contact
SureCall
SCADA
SCADA CONTROL PANEL The TCOM control panel from Orenco Controls is a modular, programmable remote telemetry control panel that can be used to track daily ows and alarms. It provides functionality for remote monitoring and troubleshooting, with features that include color touch screens with built-in programming and realtime data acquisition, as well as control over an Internet, cell or phone line connection. It combines the functions of relays, timers, alternators, elapsed-time meters and cycle counters, resulting in a compact panel design. It has built-in communication protocols that are supported by widely used software already installed on, or easily added to, most computers. In addition, the panels TCOM Viewer software is free and works on Windows PC computers, providing an easy-to-understand user interface, plus the ability to retrieve, sort and graph data. 800/348-9843; www.orencocontrols.com. INTELLIGENT VISUAL MONITORING PLATFORM The Osprey Reach visual monitoring platform from Osprey Informatics gives customers awareness and control of their remote operations. By detecting, analyzing and reporting on the status of personnel, vehicles, equipment and facilities, it turns video and images into valuable and actionable information. It is built for the eld, featuring rugged cameras and low power and bandwidth capability. The cloud-based platform is optimized to be mobile, is easy to deploy and use, and scales quickly and cost-effectively at an enterprise level. 403/460-4779; www.ospreyinformatics.com. MOBILE WORKFORCE SCHEDULER Retriever Scheduler from Retriever Communications allows companies to optimize their mobile workforce by improving job visibility and scheduling capabilities, allowing for fast evaluation of eld technicians availability. The customizable application provides service managers with a comprehensive view of near real-time status of a job and the activities required to complete a job. This allows managers to assign work to eld technicians based on their site proximity and current job status. Using the application, eld workers can self-schedule emergency or impromptu work. With enhanced mapping capabilities, users are now able to access additional information such as on-site data and a time-stamped audit trail of when activities occurred. 281/566-2528; www.retrievercommunications.com.
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Retriever Communications
Osprey Informatics
Orenco Controls
SCALABLE SCADA SYSTEM The wireless ScalableSCADA system from Revere Control Systems provides exibility for growth and communication technologies. Nonproprietary hardware and communications protocols eliminate common restrictions on growth, application and supplier. Available protocol choices include cellular, radio, modem and landline. Standard features include built-in serial and Ethernet ports, webpages and data logging with FTP transfer to a server. Options include I/O, modems, cellular modems and keypad. NEMA 4X berglass, NEMA 12, and NEMA 4X stainless steel enclosures are available, as is radio path testing, ISA certied technicians and CSIA certied systems integrator. 800/536-2525; www.reverecontrol.com. TRANSPORTATION MANAGEMENT SOFTWARE TMWSuite from TMW Systems is a transportation management software system designed to streamline and automate dispatch, order management and billing for well servicing companies that move oil, frac sand, water, crude and drilling equipment. It can be used to eliminate manual billing and rating steps for service on a per-ton, per-gallon, per-barrel, mile or hourly basis or any combination thereof. Order entry can be automated from electronic les or through a Web portal. Dispatch and driver planning functions use integrated satellite tracking and hours-of-service data from telematics devices to optimally match resources to well sites and improve response time. Traditional paper job tickets can be replaced with forms-based messaging on in-cab or portable telematics devices, with drivers entering service data at well sites. Unique service data captured in the customized forms ows directly to the TMS, speeding billing, driver payment and accounting processes. 800/401-6682; www.tmwsystems.com.
MACHINE-TO-MACHINE COMMUNICATIONS
VEHICLE TRACKING HARDWARE Smart Antenna vehicle tracking hardware from GPS North America is a tamperproof and scalable device providing standard GPS tracking. It can also interface with third-party hardware for job dispatch, navigation and electronic driver logs. The company also specializes in the development and support of paperless forms for handheld, mobile data collection, and enables companies to control fuel and labor costs by locating and monitoring eets and assets through their SignalTrack Web portal. 800/760-4477; www.gpsnorthamerica.com. PROFIBUS TO FIBER CONVERTER The ICF-1280I converter from Moxa Americas bridges PROFIBUS to optical ber, providing total isolation, protection against EMI/RFI interference, and freedom from equipment grounding problems. It can help extend connections up to 2.5 miles on multimode ber or up to 25 miles on single-mode ber at data rates up to 12 Mbps. An integrated remote ber diagnosis function eliminates the need for specialized test equipment and signicantly shortens troubleshooting time in expansive installations by allowing one person to examine ber connections for the overall topology from any individual converter. It has dual ports to build a redundant ber ring with zero recovery time, and features 2 KV isolation protection and dual power inputs to ensure that PROFIBUS devices perform uninterrupted. It also features a Bus Fail Safe that detects and recognizes noise signals. It will automatically trigger an alarm notication to the eld engineer on the location of the failure, allowing them to quickly locate the failed device. 714/528-6777; www.moxa.com. OPTO 22 HIGH-FREQUENCY SNAP I/O MODULES High-frequency analog SNAP I/O modules with pulse-width modulation and time-proportional output from Opto 22 are designed for engineers and technicians working with high-speed machinery, equipment test beds and applications that monitor high-frequency analog signals. The SNAP-AIRATEHFi input module connects to TTL, CMOS and open-collector outputs and is typically used for highspeed (up to 500 kHz) pulse scanning. The SNAP-AOS-29-HFi sends pulse-width modulated outputs to high-frequency transducers and can be used with test bed applications that simulate tachometer outputs. 800/321-6786; www.opto22.com.
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35
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ELECTRONIC OVERLOAD RELAY The Allen-Bradley E300 electronic overload relay from Rockwell Automation integrates communications, including EtherNet/IP, current measurement technology and I/O options in a modular design. The dual-port EtherNet/IP option enables overload relays to be daisy-chained and eliminates the need for an Ethernet switch. 414/382-2000; www.rockwellautomation.com. GPS TRACKING DEVICE The AT-X5 live GPS tracking device from US Fleet Tracking is compact, discreet and easy to install. It assures turn-by-turn monitoring of mobile assets, and features 5- and 10-second tracking, historical playback and virtual fences. It comes standard with weather overlay and trafc features for safety and efciency, plus the ability to create and edit up to 20 different logs while in the eld. The Web-based system is compatible with every mobile platform. 405/726-9900; www.useettracking.com GOMC
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37
Case Studies
Problem
The company chose to utilize a GPS tracking system from Fleetmatics. The system provides real-time snapshots of vehicle activity and maintenance needs 24 hours a day. In addition, the eet tracking dashboard allows business owners to enhance customer service, decrease fuel consumption and increase overall business performance.
Solution
By reducing mileage and eliminating unauthorized vehicle use, AAA Rental System saw signicant savings in fuel costs, as well as a decrease in overtime hours. Thanks to the Fleetmatics GPS tracking system, we have saved $100,000 in labor costs per year, says AAA owner Jay Heiferman. 704/716-7646; www. eetmatics.com.
Result
Problem
In 2012, company executives selected geoAMPS to implement software operated through a central web database. Their rowAMPS software was congured to meet the companys specic needs for a land rights and infrastructure asset solution.
Solution
geoAMPS created product modules specic to the companys requirements. A one-call ticket system manages workow tickets from the project administrator. GIS maps the location of the ticket automatically and noties if an asset requires attention. The administrator can review the recommendation and either clear the ticket or assign work done at the site, and can link forms to the ticket for the eld agent to complete. Forms Manager allows the client to create forms that can be linked to tasks. When creating the form, the administrator can trigger additional questions to appear when certain answers are provided. Agents can complete the forms assigned to them for a particular task on the web or mobile application. The Compliance Manager module allows the software user to set up and link tasks to assets, locations and components. The setup feature species how often each task needs to be completed and eld agents can review tasks they are assigned. A detailed work history is stored with each task. 614/389-4871; www.geoamps.com.
Result
Problem
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Solution
KUC implemented the GPS Insight eet tracking system in late 2008 when it began to monitor idle time and GHG emissions on 28 vehicle assets. Since that time, the GPS Insight solution has enabled KUC to far exceed their original expectations. They have now implemented multiple programs and business improvement projects as a result of, and through the use of, the GPS Insight data.
KUC is currently monitoring 575 vehicle assets, and is using the solution to track preventive maintenance intervals and alerts, ensuring proper routing of service vehicles, fuel savings, idle reduction, GHG reduction, and monitoring eet utilization and availability. We have saved over $1 million in fuel costs alone in the last 12 months, and have saved thousands of dollars in other projects using the GPS Insight toolset, Harvey says. 480/663-9454; www.gpsinsight.com.
Result
Problem
MIQ Logistics assembled a team of experts in over-dimensional cargo to analyze the technical features of the equipment, as well as the route, infrastructure and critical points along the trip. The freight would need to move from Shanghai, to the Port of Callao, through the mountainous Andean region, to the mine site. In Shanghai, both the Autoclave and Flash Vessel pieces were rotated and temporary saddles installed for better cargo handling. At Callao, the unloading process took 72 hours, 108 rail wagons and 20 atbed trucks to handle the 247,000 cubic feet of freight. Once in Lima, the equipment was accompanied by a convoy, and followed the transport plan, which specied the departure schedule, break times, closure times, maximum speed and infrastructure modication requirements.
Solution
The solution included building 19 lay-bys, reinforcing 13 bridges, and lifting a train trestle and bridge to allow the freight to clear. The mining equipment moved on schedule from Shanghai to Central Peru, a distance of more than 11,000 miles. The mining equipment traveled from the port at Callao to the mine site in six days. 866/972-9272; www.miq.com.
Result
Problem
After researching the options available, the company chose Networkeet from Technology Services Company. The system merges GPS technology with affordable wireless coverage and remote engine diagnostics, making it simple for the company to keep track of and communicate with its eet any time, virtually anywhere.
Solution
The company saved $1,800 in the rst month by reducing vehicle idle time, and also increased deliveries by locating the closest vehicle to a customer. The company has also reduced speeding, increased on-time deliveries and improved driver safety. Our business is built on providing exceptional service, and managing our eet more efciently helps us do that, says Chief Operating Ofcer Brian D. Campbell. Thanks to the great service we receive from Networkeet, we can provide our customers with a higher level of service. 630/517-4808; www.eetgpssolutions.com. (continued)
MARCH 2014 - www.gomcmag.com GOMC 39
Result
Weidmuller engineers performed a wireless Ethernet site survey at the plant location and offered a solution that included a combination of wireless Ethernet modems and dipole antennas with 3 dbi of gain.
Solution
The Ethernet modems provided the needed signal transmission power, and combined with a sensitive high performance signal receiver, Targa was able to receive the signal strength and reliability required for their locations. 800/849-9343; www.weidmuller.com. GOMC
Result
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On the Money
NEW OR USED?
There are important questions to answer before deciding which way to go on that next big equipment purchase
By Erik Gunn
all of these other questions, it can help you make the most informed decision possible. Are older models actually better? That happens sometimes. Think houses what experienced homeowner do you know who doesnt swear older homes are better built sturdier, more solid and with better craftsmanship? The key, of course, is that the designs might not t your needs, or the home lacks newer features like better electrical and plumbing systems or dedicated media rooms or easily nished basements. But if the older models are better and are sufcient to your particular circumstances, that can be a good reason to purchase used. Whats the products maintenance track record and its ongoing maintenance cost? The better the record and the lower the cost, the safer you are buying used. The worse the record and the higher the continuing cost, the more you may wish to go with new, particularly if that way offers a better warranty. So researching reliability data is critical. Can you trust the seller if its used? Going through a dealer with an established, positive reputation is likely to be the safer route for buying a used piece of equipment, rather than relying on, say, a stranger on Craigslist. If you do buy directly from an individual, make sure you really know what youre getting. Pay a mechanic to look it over before you sign the transaction agreement. Can you inspect the unit in person? If you cant, then walk away. Youll be making a big investment, regardless of whether youre buying new or used. To do that without being able to quite literally kick the tires and do a whole lot more is absurd. Is the used product stock, or has it been modied? The more modications the previous owner has made to the machine before
I
Erik Gunn
n two previous columns, weve looked at how you might nance an expensive new piece of equipment as well as what impact a major purchase could have when the time comes to sell your business. This time well address one other issue: Is it better to buy new or used? That decision has implications both for nancing and for the future sale of your company. But it also demands consideration simply on its own terms. In making that decision, youll need to ask which will be the better value? And theres no one-sizets-all answer. Sometimes used is good enough. Sometimes its even better. And sometimes, its exactly the wrong decision.
model: The used one is probably already out of date. Consider how relatively inexpensive a brand new personal computer is today compared with the cost 10 years ago, and yet how much more powerful it is. Buying used would probably not be worth the money unless your actual computing needs were tiny and you know they would never change. But lots of things dont change that fast, and when they do get added bells and whistles, they are far from essential. So if the answer is No, then buying used could be a good choice, depending on other factors. Is it for a core service your business provides? Or is it for something youre just beginning to expand into? The closer to your core business the item is, the more youre probably going to want to buy new. On the other hand, if youre getting this machine to branch into a new line of service, you might want to look for a cheaper used product, lowering your cost of entry into the new line and also cutting the sunk cost youve incurred should you decide that the new business isnt as protable as you expected it would be. What is the items resale market? Thats actually a tricky question, and by itself, the answer wont actually tell you a whole lot. Heres why: If the resale market is good, you can read that as an argument for buying either new youll be able to sell it yourself without much difculty if you need to for any reason or used youll have an easier time of nding a used item than if the resale market isnt so great. But its still worth knowing by itself, because taken with
Going through a dealer with an established, positive reputation is likely to be the safer route for buying a used piece of equipment, rather than relying on, say, a stranger on Craigslist.
LITTLE QUESTIONS INSIDE THE BIG QUESTION Like many questions, the question of Which is better, new or used? actually has many other, much more specic questions lurking inside it. So our job today is to unmask those other little questions. Answer them, and youll answer the big one. Does the product change a lot? How soon does any particular model become obsolete? If the answer to that rst question is Yes, the second will probably be pretty darn soon. In that case, go for the new
42 GOMC www.gomcmag.com - MARCH 2014
selling it to you, the greater the risk. Even if the seller is someone you consider completely trustworthy, you cant know what sort of aftermarket or seat-of-thepants modications might have rendered the machine less safe to use or more prone to a future breakdown not to mention, possibly voiding any remaining warranty on the product. FINANCING AND RESELLING Finally, consider what the new or used choice might mean for nancing. Your options are probably fewer for nancing used equipment youll probably have to go through a bank, especially if you buy from a private party. And older equipment might require a faster payoff on the loan and larger payments. Equipment you own has one other purpose you might not think of: Its a way to borrow money in the future if you suddenly face a cash crunch. Dont over-leverage yourself now, when you rst buy it. And think twice about buying used, if that means your actual equity against which you can borrow will be much less than if you bought new. These arent the easiest questions to answer, and some take a lot of research. But theyre worth the time and energy, so that when you get that next big truck, youll know you made the right decision new or used. GOMC
ABOUT THE AUTHOR for visiting us
Thanks
Erik Gunn is a magazine writer and editor in Racine, Wis., where he operates Great Lakes Editorial Services. Readers may direct inquiries to him by contacting this publication at 800/257-7222 or emailing editor@gomcmag.com.
On the Money addresses nancial issues of importance to GOMC readers. If you would like to suggest a topic for this column, send an email to editor@gomcmag.com.
MARCH 2014 - www.gomcmag.com GOMC 43
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This is a productivity business. Equipment needs to be tough and efficient. That's why Freightliner trucks, like the 122SD and the 114SD, are ideal. You get Severe Duty construction with cabs made of corrosion-resistant aluminum, reinforced with e-coated steel. Multiple engine choices let you spec the right amount of horsepower, torque and fuel efficiency. Each chassis has been designed for easy upfit. And cab interiors offer plenty of comfort and convenience features. So your trucks aren't just working hard, they're working smart. To learn more, visit FreightlinerTrucks.com/WorkSmart.
Competitive financing available through Daimler Truck Financial. For the Freightliner Trucks dealer nearest you, call 1-800-FTL-HELP. www.freightlinertrucks.com. FTL/MC-A-1238. Specifications are subject to change without notice. Copyright 2013. Daimler Trucks North America LLC. All rights reserved. Freightliner Trucks is a division of Daimler Trucks North America LLC, a Daimler company.
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At Gas Oil & Mining Contractor, were looking for service companies with an interesting story to tell. If youd like to share your story, send us a note to editor@gomcmag.com.
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Even engines as powerful, efcient, and reliable as the Detroit DD13, DD15 TC and DD16 arent worth much if they arent running. Thats why we created the Detroit Virtual Technician onboard diagnostic system. In the event of a fault code alert, the engine noties you and our Customer Support Center in seconds. Engines cant x themselves, but with Virtual Technician and hundreds of authorized service locations were almost there. Demand uptime. DEMANDDETROIT.com
DDC-EMC-OTH-0132-0413. Specications are subject to change without notice. Detroit Diesel Corporation is registered to ISO 9001:2008. Copyright Detroit Diesel Corporation. All rights reserved. Detroit is a brand of Detroit Diesel Corporation, a subsidiary of Daimler Trucks North America LLC, a Daimler company.
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Tech Perspective
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Product News
Product Spotlight
Dissolvable, injection-molded balls meet fracking needs
By Ed Wodalski
Water-dissolvable polymer frac balls from Putnam Precision Molding, a division of Ensinger Engineering Plastics, are designed for use in sliding sleeve frac applications. They have a exible strength of 29,000 psi, specic gravity of 1.6 and can withstand up to 14,000 psi fracking pressure. While made to dissolve over time, the action isnt instantaneous. Its not like an Alka-Seltzer, says Fred Mooers, market development manager-energy, Ensinger Industries. Degradation rates vary with temperature of the water. A 2-inch ball takes approximately 12 hours to dissolve in 300-degree F liquid, three days in 250-degree liquid, 11 days in 200-degree liquid and 46 days in 175-degree liquids. A ball in 100-degree liquid would dissolve in approximately 1,400 days. The dissolvable ball is designed to eliminate the need to retrieve balls that occasionally become stuck in wells during the fracking process. If for some reason a ball extrudes through the thin seal area of the seat, it becomes trapped on the backside, Mooers says. To retrieve the lost ball, you need to go down and drill the seat out. Other balls designed for sliding-sleeve frac applications include PEEK, TORLON and NYLON GF injection molded balls. PEEK balls have a pressure rating equal to G-10 at the weak orientation and are temperature rated for continuous use up to 500 degrees F. Mooers says the injection molding process reduces material waste and can be lighter in weight than a G-10 (1.8 specic gravity). Some of the fracking companies want the balls to be a little bit lighter in weight. A carbon ber ball is 1.4 [specic gravity]. And with some other
compounding that we can put in the mix, we can start to approach 1.2, so were getting closer to something that can oat; getting these balls back out is very important. They would like them to come out in one piece and just ow out under pressure. Then there are applications in the Bakken, where it is my understanding they are looking for a very high specic gravity ball that can get down the hole very quick. Ensingers TORLON injection frac balls are made from polyamideimide and have a specic gravity of 1.7, while NYLON GF (Polyamide 6) fracking balls have a specic gravity of 1.6 to 1.7. Frac balls designed for plug-and-perf applications from Ensinger include the injection-molded NYLON MF and NYLON GF. The NYLON MF (Polyamide 6) balls have a specic gravity of 3.4, while the NYLON GF (Polyamide 6) has a specic gravity of 1.6 to 1.7. The balls are resistant to most chemicals, and are available in standard and custom sizes, ranging from 1 to 3.75 inches in diameter in 0.125-inch increments. 860/928-7911; www.putnamprecisionmolding.com.
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3. MUSTANG VERTICAL-LIFT SKID-STEER LOADERS
The 2700V NXT2 and 3300 NXT2 vertical-lift skid-steer loaders from Mustang feature a Tier IV 72 hp Yanmar diesel engine. The 2700 has a rated operating capacity of 2,700 pounds, while the 3300V has an operating capacity of 3,300 pounds. The 2700 has a loading height of 10 feet 10 inches; the 3300 has a loading height of 10 feet 11 inches. 800/628-0491; www.gehl.com.
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10. NLB REDUCED-STRESS WATERJET LANCES
NCG-286A high-pressure waterjet lances from NLB Corp. are designed to reduce stress on the inlet hose connection and have a padded shoulder stock to help center the thrust of the water. The lances have an inlet tube with 90-degree bend, supported by a bracket that eliminates bend radius in the hose behind the inlet connection. The series includes lances rated for operating pressures up to 10,000 psi, 15,000 psi, 24,000 psi and 40,000 psi. Brackets and couplings are available to convert older-style NCG-286 lances. 877/652-7796; www. nlbcorp.com.
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The 2760 LED headlight from Pelican Products includes high, low, nightvision-friendly red and ashing modes. Available in black, white and translucent red, the light is made from water/weather resistant polymer and pivots to a 45-degree angle. Weighing approximately 3 ounces with three AAA batteries, the light includes a cloth strap and full-time battery life indicator. 800/473-5422; www.pelican.com.
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The Vacall AllJetVac high-dump option for combination sewer cleaners from Gradall Industries enables the operator to raise the debris tank 76 inches above ground level and shift the tank horizontally 21 inches beyond the rear bumper using a wireless remote. 800/382-8302; www.vacallindustries.com.
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industry, technology-driven communication and new ways to interact with members. WJTA-IMCAs vision is to be the premier global association for the waterjetting, industrial cleaning and industrial vacuuming industries, leading in safety, best practices, new technology and applications, education and training. Goals include safety, membership growth, conference and expo, nancial stability, information delivery, technology development, training and networking.
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JUNE 2-4 International Liquid Terminals Association Operating Conference and Trade Show, Hilton Americas-Houston & George R. Brown Convention Center, Houston, Texas; www.ilta.org. JUNE 2-6 Elko Mining Expo, Elko Convention Center, Elko, Nev.; www.exploreelko. com/major_events/elko_mining_expo/index.php JUNE 10-12 Global Petroleum Show, Stampede Park, Calgary, Alberta; http:// globalpetroleumshow.com. JUNE 18-19 Atlantic Canada Petroleum Show, Mile One Centre, St. Johns, Newfoundland & Labrador; http://atlanticcanadapetroleumshow.com. JULY 9-10 South Texas Oileld Expo, Henry B. Gonzalez Convention Center, San Antonio, Texas; www.southtexasoileldexpo.com. AUG. 17-21 The Oil & Gas Conference, Denver, Colo., details TBA; www.enercominc. com/the-oil-and-gas-conference. AUG. 20-22 Summer NAPE Expo, George R. Brown Convention Center, Houston, Texas; www.napeexpo.com/nape-shows/nape-south. AUG. 27-28 PIOGAs Eastern Oil & Gas Conference and Trade Show, Monroeville Convention Center, Monroeville, Pa.; www.pioga.org/events/piogas-easternoil-amp-gas-conference-and-trade-show. SEPT. 9-10 Oil Sands Trade Show and Conference, Suncor Community Leisure Center, Fort McMurray, Alberta, Canada; www.oilsandstradeshow.com/2014. SEPT. 10-12 Coal Association of Canada Conference & Trade Show, Westin Bayshore Hotel, Vancouver, British Columbia, Canada; www.coal.ca/ 2014-conference-trade-show. SEPT. 10-11 Iron Range Miners Expo, Minnesota Discovery Center, Chisholm, Minn.; 800/372-6437; info@mndiscoverycenter.com. SEPT. 30-OCT. 2 International Pipeline Exposition, Calgary TELUS Convention Centre, Calgary, Alberta, Canada; www.dmgenergyevents.co.uk/events/ international-pipeline-exposition. GOMC
GOMC invites organizations and associations to submit details about upcoming industry trade shows and conferences for our calendar of events. Send information to editor@gomcmag.com.
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February 2013 www.promonthly.com
Trailer Jetters
Cover Story
Real-world conditions test contractor build specifications for cement and acid pumpers
Tech Perspectives:
PAGE 26
Arkansas contractor Satterfield Pipeline turned to Talbert Manufacturing for its flatbed trailers
Money Machines:
PAGE 30
ON LOCATION
THE JOB: Oregon Jamboree LOCATION: Sweet Home, Ore. THE PRO: Bucks Sanitary Service
<<< Susie Sieg, of Bucks Sanitary Service, unloads a Satellite Industries Maxim 3000 restroom at the Oregon Jamboree. (Photos by Peter Krupp)
SHOW ISSUE
RIGS
By Pete Litterski
Karlis Ercums III, president and CEO; Andy Drennan, vice president and COO 1981 200 in oileld services division; 25 in biosolids management division Oileld uid transportation, including drilling uids delivery and saltwater storage and disposal Serving oilelds in South Texas, East Texas, northwest Louisiana and the Gulf of Mexico; nationwide delivery services for specialty drilling chemicals and uids www.K3BMI.us
Growing Texas oileld uid transport BY BETTY DAGEFORDE company K-3BMI focuses on building an efcient, durable eet
in 1981, Lisa the and then 20-year-old entrepreneur Scott Weld, owners of Bucks
Sanitary Service in truck Eugene, Ore., around have a bought an aging vacuum to drive
South part-time Texas, picking up waste from drivers. service mechanic and oil seven
Lisa works in the offi ce answering phones stations and hauling it to recycling facilities. The
rattletrap rig drew vacuum the old-fashioned way, off of its engines exhaust manifold. from management to running routes to
maintenance. Five people worked on the Oregon Jamboree along with the Welds
and managing the creative and marketing side while Scott fills in on everything
RIGS
WEBSITE:
Lessons learned from relying on the antiquatand their three children, Maren, 9; Milah, ed equipment had a lasting impact on Ercums 13; and Sten, 17; who are accustomed to approach to outtting K-3BMIs growing eet of helping out at events. service trucks and roll-off rigs working both the oileld and the municipal biosolids industries across the Lone Starvery State. day we found out wed The After more than 30 years of hauling uids, have to move our shop, somebody Ercums has a specic set of equipment standards, came through the door and said, with a heavy emphasis on dependability and duraDo you want buy Bucks back? bility. His focus on detailto goes right down to fenders It adapted was really a doorfabricators closing, specially by K-3BMIs todoor protect the cab and vacuum pumps on tank trailers. opening, all in the same day. (continued) SCOTT WELD
COMPANY HISTORY
Entertainment: Just an Ole Boy Page 16 | Expo Eats: 10 to Try Page 38 | Attractions: Tip a Frosty Mug Page 30 February 25 - 28, 2013, Indiana Convention Center
The White
Glove Test
Page 18
In April 2012, Lisa and Scott Weld bought Bucks for the second time. Their first crack at it was in 1995 when Scotts father heard the 20-year-old business was having problems. The family made an offer to the founder and operated it for four years as an add-on to their trash and septic service business. In 1999, when Welds father retired, they sold it to a national solid waste company. Weld went to work for that company, then 10 years later tried his hand again at self-employment in the trash business. A few challenges cropped up, but they turned out to be fortuitous, says Lisa Weld.
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Gas, Oil and Mining Contractor Marketplace gives you nationwide exposure to thousands of industry professionals. Layout and design is included
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MARKETPLACE
Mechanic Javier Godinez adjusts hydraulic hoses after installing the (continued) hydraulic tank and cooler on a new truck. (Photo by Karlis Ercums III)
Based in Alvin, Texas, K-3BMI reects a merger of two separate businesses: K-3 Services, a diversied oileld services company focusing on uid transport; and BMI, a municipal biosolids management contractor. With more than 120 trucks, Ercums says K-3BMIs prime focus is on the transportation of uids to and from drilling and completion sites in the Eagle Ford Shale in south-central Texas to the Haynesville Shale in northeast Texas/northwest Louisiana. His trucks are also dispatched on longer trips, hauling specialty drilling uids and chemicals to gas and oilelds from Pennsylvania and North Dakota to Colorado and California.
Its easier to send a driver to pick up toilets if theyre all in one spot. I probably spent a little bit extra labor, but at least you dont
LETS ROLL Once trucks and trailers are delivered, K-3BMI continues to ne-tune before putting them into service. Mechanics mount Gardnerof Denver Demag Eight times, Sunday through Wednesday, a caravan three trailers Wittig RFLhour-long 100 pumps behind the landing ofthe thecompanys vacuum trailers, made the drive up Interstate 5 gear from yard a tospot the where they site are more protected from road and debris. Its an expensive Jamboree to deliver units. Two of dirt their 15-year-old company-built pump, its bullet-proof, Ercums K-3BMI for hydraulic drives trailers but held 16 units each and a third says. trailer carriedopts 20 (also company-built, on the an pumps because they run cleaner and have less downtime compared to using Explorer receiver from McKee Technologies, Inc.). The company pumps running off of drive shafts. used service vehicles to pull the trailers. Weld tried a new approach for the removal process. Sunday night and continuing Monday, the team pumped and moved all units to a single
Weve built a lot he of felt our business on being the second not staging area, which simplified the job. Its easier to send call, a driver to a better we tellget them, Thats but if campground, they arent able go to this price, campground, these six, go OK, to another get these
Karlis Ercums III units as schedules permitted. the week, they grabbed
SWITCHING TO ALUMINUM have to send somebody One of the most distinctive characteristics of the K-3BMI eet is the reliance on 166-barrel aluminum vacuum tank trailwith a map to go to this ers in addition to the 130-barrel carbon steel vacuum transports that have long been the standard in the oil and gas elds. campground, get these six, Ercums became interested in using larger, lighter aluminum tanks soon after he moved into oileld services. Back in 1986, go to another campground, everybody was using carbon steel 130-barrel trailers and I K-3BMI has its fabricators mount Gardner Denver Demag Wittig RFL 100 pumps with hydraulic drives thought we could be more competitive with aluminum. get these eight. behind the landing gear on its vacuum trailers to help shield them from road hazards. (Photos by Kerry Despite warnings from experienced haulers, Ercums bought Ercums) a used aluminum crude oil tank trailer and began converting SCOTT WELD it into a vacuum rig, fabricating many of his own components 1988, he approached Trailmaster Corp. in Fort Worth, Texas, to build an alumialong the way. Although Ercums was condent in his idea, he took a cautious num trailer. The result was a 166-barrel trailer that weighed 9,900 pounds, 20 to approach. We started out carefully and pulled 15 inches of vacuum. Then we 30 percent lighter than typical 130-barrel carbon steel vacuum trailers. experimented a bit more and added some ribs to it. When Ercums took delivery of his rst aluminum tank trailers, skeptics When Ercums was ready for more testing, he told a driver to load 7,000 predicted saltwater and chemical loads would deteriorate the tanks, and that gallons of biosolids in the prototype. But he loaded 8,400 and it cracked. That <<< The team includes, from using air-ride suspensions to better protect theBucks trailers against bumpy oileld calamity didnt deter the young Ercums; it just sent him down a different road. In left, Milah Weld, Susie Sieg, Josh (continued) Wooley, Sten Weld, Scott Weld and
Eric Brownrigg.
pick rst up toilets in someone one spot, he explains. probably spent a little the call. if If theyre weveall got who tellsI us theyre getting eight. you start leaving sinks and get the (handicap unit) to doThen the job, then just call usbehind back. We called back. doesnt
bit extra labor, but at least you dont have to send somebody with a map to
fit. Its just a logistics nightmare trying to get the loads to work out. During
KEEPIN IT CLEAN K-3s employees assemble the hydraulic systems in-house based on a Jamboree required someone be on site and available by design perfectedorganizers over the years. To help protect the pumps and cabs, fabricators radio atquarter all times so Weld, his son and another member of the team stayed in modify fenders to mount over the trucks drive tires. a motor home atequipment one of the campgrounds. Before new is put on the road, drivers are trained on proper operation. Because of the emissions onnight the new trucks, it isto extremely imporVenue units were serviced each from 11 p.m. 2 a.m. At 6:30 tant the drivers are trained on the trucks systems, Ercums says.9:30 He relies a.m.that they started in on the campground units, finishing around a.m. on his own to maintain and most repairs. During the mechanics day, they pumped outequipment 20 RVs and 19 do holding tanks 10 at the two shower facilities and the balance for the food vendors.
Luke Muecke, a mechanic in K-3BMIs Alvin, Texas, location, works on a Cummins ISX engine. The company performs almost all of its own mechanical and fabrication work.
EXPANSION PLANS Five service vehicles were used: A 2010 Peterbilt 335 and a 2008 Ercums has developed a pattern when deciding to enter a 1,500-gallon new market. International 4300, both built out by Progress Vactruck with We look at the play to see if its going to be a long-term he from says. waste/500-gallon freshwater aluminum tanks; a 2001situation, Isuzu FTR hiring skilled mechanics usuTell us your ... Manufacturing Inc.story with 750-gallon waste/350-gallon freshwater steel tanks. ally sent straight to school to All have Masport pumps. Would you like to share your companys success story learn how to properly mainwith Waste readers was of GOMC? In every issue, we feature a yard each night and transferred transported to the companys tain modern diesel equipdifferent contractor who serves the energy exploration to 20,000-gallon From another oramineral extraction tank. industries. Tell there, us about your pumping ment. contractor picked up business or nominate another of company for a profile by the waste and disposed it by land application. Seventy percent of the sending an email to editor@gomcmag.com. eet is 2010 or newer and that means they are more SAME BUT DIFFERENT complicated because of the laws on are not In one sense, Weld wasnew an old pro atemissions. this event,Our so itmechanics was pretty much only turning wrench, they have tothe learn how hand, to use the to do diagbusiness as ausual, he says. On other thecomputers size and scope had nostics and they need to understand the new engines. changed significantly over the years their first year, they brought in 60 When trucks andand trailers come in for repairs or maintenance, mechanics units for one venue four campgrounds. That was the most difficult are responsible forsays. a long checklist ofget tests and tasks before putthing for me, he So I had to my actmaintenance together. He quickly got his ting a around rig backit. on the road. rather your x a head truck and in our shop than arms Youve gotI towould just scratch kick it in gearsend and someone out to xmoving one at all the side of the go. We didnt stop weekend. road in the middle of the night, Ercums explains. PROMOTE FROM WITHIN As his company grows, Ercums develops his own managers. The majority of the managers who run our locations came up through our ranks, either as drivers or as mechanics. Many were supervisors rst at other locations, but most of them jumped at the opportunity if I asked them to manage a new location. One benet of developing his managers, Ercums says, is their willingness to work as a team. He brings them together for quarterly meetings where they can discuss common issues and challenges, but he says they are also encouraged to maintain that teamwork when they go back to their individual ofces. The networking makes it possible for the company to efciently allocate resources both equipment and people where
Workmate/FMI Truck Sales & Service with an 850-gallon waste/350-gallon freshwater steel tank; and two 2000 International 4700s built out by Lely
Oregon Jamboree, complete lighting strung in thefor front of the We units. We look at the area to see ifwith there are opportunities growth. look to see if theres a strong infrastructure. If we decide to go into a new town, we buy property and we put up a building to meet our needs. We put down roots and we let people in the community know were there to stay. We build really nice, top-of-the-line maintenance facilities. The facilities are designed with lifts, compressors and other equipment needed to maintain the K-3BMI eet. And Ercums says his managers focus on
^^^ Satellite Industries Tufway restrooms are lined up and ready to go before the
demand is the greatest. But the value of the teamwork goes beyond that, Ercums says. For a while we were busy servicing rigs for a number of companies in the Haynesville area. A lot of those rigs have moved down to South Texas. Our guys were telling them, We have yards down there, and sharing contact information with the clients and our other managers. And since Ercums company also has a smaller eet of winch trucks, his local ofces make sure clients changing location know that K-3BMI works on a lot of rig moves. QUALITY COUNTS Ercums approach to outtting company be expensive, but he says Weld helps out her fathers his crew, keepingcan restrooms and hand-wash ^^^ Milah the investment has been worthwhile. He believes the larger aluminum on stations stocked with soap and paper products at the Oregon Jamboree, tanks including trailers these Wave sinks from Satellite Industries. his make his operation more efcient and he says the way K-3BMI specs its trucks make them more durable. That, he says, makes services reliable. And service counts, he says, because the types of uids that we haul are extremely important to the drilling and completion of MORE INFO wells. If they are not delivered on time, that more info Advanced Progress Vactruck Masport, Inc. can cost theContainment client a lot of money. Cummins Systems, Inc. 800/467-5600 800/228-4510 Acknowledging that he sometimes 800/927-2271 www.masportpump.com Powerwww.progressvactruck.com Generation cant compete with bids from competitors www.acsi-us.com 763/574-5000 with lower costs, Ercums says, Weve built - www.cummins.com Satellite Industries McKee Technologies Ameri-Can 800/328-3332 Explorer Trailers a lot of our Engineering business on being the second Gardner Denver, Inc. 574/892-5151 www.satelliteindustries.com 866/457-5425 www.gardnerdenverproducts.com call, not the rst call. If weve got someone www.ameri-can.com ad page www.mckeetechnologies.com (See ad(See on page 54) 27) who tells us theyre getting (See a better price, ad page 46) PACCAR weLely tell Manufacturing, them, Thats OK, but if they arent Inc. Workmate/FMI Truck 425/468-8216 800/334-2763 Sales & Service Inc. able to do the job, then justPolyPortables, call us back. www.paccar.com www.lelyus.com 800/927-8750 We get called back. GOMC 800/241-7951 www.fmitrucks.com www.polyportables.com
(See ad page 33)
35
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Gas or Diesel
(continued)
Reprinted with permission from PRO / February 2013 / 2013, COLE Publishing Inc., P.O. Box 220, Three Lakes, WI 54562 / 800-257-7222 / www.promonthly.com
| FEBRUARY 2013
LASER REPRINTS
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Real-world conditions test contractor build specifications for cement and acid pumpers
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Arkansas contractor Satterfield Pipeline turned to Talbert Manufacturing for its flatbed trailers
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SHOW ISSUE
Cover Story
Rockin
RIGS
Rockin
By Pete Litterski
LEADERSHIP: FOUNDED: EMPLOYEES: SPECIALTIES: SERVICE AREA:
RIGS
Growing Texas oileld uid transport company K-3BMI focuses on building an efcient, durable eet
Karlis Ercums III, president and CEO; Andy Drennan, vice president and COO 1981 200 in oileld services division; 25 in biosolids management division Oileld uid transportation, including drilling uids delivery and saltwater storage and disposal Serving oilelds in South Texas, East Texas, northwest Louisiana and the Gulf of Mexico; nationwide delivery services for specialty drilling chemicals and uids www.K3BMI.us
GROWING TEXAS OILFIELD FLUID TRANSPORT COMPANY K-3BMI FOCUSES ON BUILDING AN EFFICIENT, DURABLE FLEET PAGE 12
in 1981, the then 20-year-old entrepreneur bought an aging vacuum truck to drive around South Texas, picking up waste oil from service stations and hauling it to recycling facilities. The rattletrap rig drew vacuum the old-fashioned way, off of its engines exhaust manifold.
WEBSITE:
Lessons learned from relying on the antiquated equipment had a lasting impact on Ercums approach to outtting K-3BMIs growing eet of service trucks and roll-off rigs working both the oileld and the municipal biosolids industries across the Lone Star State. After more than 30 years of hauling uids, Ercums has a specic set of equipment standards, with a heavy emphasis on dependability and durability. His focus on detail goes right down to fenders specially adapted by K-3BMIs fabricators to protect the cab and vacuum pumps on tank trailers. (continued)
Based in Alvin, Texas, K-3BMI reects a merger of two separate businesses: K-3 Services, a diversied oileld services company focusing on uid transport; and BMI, a municipal biosolids management contractor. With more than 120 trucks, Ercums says K-3BMIs prime focus is on the transportation of uids to and from drilling and completion sites in the Eagle Ford Shale in south-central Texas to the Haynesville Shale in northeast Texas/northwest Louisiana. His trucks are also dispatched on longer trips, hauling specialty drilling uids and chemicals to gas and oilelds from Pennsylvania and North Dakota to Colorado and California. SWITCHING TO ALUMINUM One of the most distinctive characteristics of the K-3BMI eet is the reliance on 166-barrel aluminum vacuum tank trailers in addition to the 130-barrel carbon steel vacuum transports that have long been the standard in the oil and gas elds. Ercums became interested in using larger, lighter aluminum tanks soon after he moved into oileld services. Back in 1986, everybody was using carbon steel 130-barrel trailers and I K-3BMI has its fabricators mount Gardner Denver Demag Wittig RFL 100 pumps with hydraulic drives thought we could be more competitive with aluminum. behind the landing gear on its vacuum trailers to help shield them from road hazards. (Photos by Kerry Despite warnings from experienced haulers, Ercums bought Ercums) a used aluminum crude oil tank trailer and began converting it into a vacuum rig, fabricating many of his own components 1988, he approached Trailmaster Corp. in Fort Worth, Texas, to build an alumialumi along the way. Although Ercums was condent in his idea, he took a cautious num trailer. The result was a 166-barrel trailer that weighed 9,900 pounds, 20 to approach. We started out carefully and pulled 15 inches of vacuum. Then we 30 percent lighter than typical 130-barrel carbon steel vacuum trailers. experimented a bit more and added some ribs to it. When Ercums took delivery of his rst aluminum tank trailers, skeptics When Ercums was ready for more testing, he told a driver to load 7,000 predicted saltwater and chemical loads would deteriorate the tanks, and that gallons of biosolids in the prototype. But he loaded 8,400 and it cracked. That using air-ride suspensions to better protect the trailers against bumpy oileld calamity didnt deter the young Ercums; it just sent him down a different road. In (continued)
FREE,
10
Once trucks and trailers are delivered, K-3BMI continues to ne-tune before putting them into service. Mechanics mount Gardner Denver Demag Wittig RFL 100 pumps behind the landing gear of the vacuum trailers, a spot where they are more protected from road dirt and debris. Its an expensive Mechanic Javier Godinez adjusts hydraulic hoses after installing the pump, but its bullet-proof, Ercums says. K-3BMI opts for hydraulic drives hydraulic tank and cooler on a new truck. (Photo by Karlis Ercums III) on the pumps because they run cleaner and have less downtime compared to pumps running off of drive shafts.
Weve built a lot of our business on being the second call, not the rst call. If weve got someone who tells us theyre getting a better price, we tell them, Thats OK, but if they arent able to do the job, then just call us back. We get called back.
Karlis Ercums III
If we decide to go into a new town, we buy property and we put up a building to meet our needs. We put down roots and we let people in the community know were there to stay. We build really nice, top-of-the-line maintenance facilities.
Karlis Ercums III
K-3s employees assemble the hydraulic systems in-house based on a design perfected over the years. To help protect the pumps and cabs, fabricators modify quarter fenders to mount over the trucks drive tires. Before new equipment is put on the road, drivers are trained on proper operation. Because of the emissions on the new trucks, it is extremely impor important that the drivers are trained on the trucks systems, Ercums says. He relies on his own mechanics to maintain equipment and do most repairs. EXPANSION PLANS Ercums has developed a pattern when deciding to enter a new market. We look at the play to see if its going to be a long-term situation, he says.
Luke Muecke, a mechanic in K-3BMIs Alvin, Texas, location, works on a Cummins ISX engine. The company performs almost all of its own mechanical and fabrication work.
We look at the area to see if there are opportunities for growth. We look to see if theres a strong infrastructure. If we decide to go into a new town, we buy property and we put up a building to meet our needs. We put down roots and we let people in the community know were there to stay. We build really nice, top-of-the-line maintenance facilities. The facilities are designed with lifts, compressors and other equipment needed to maintain the K-3BMI eet. And Ercums says his managers focus on
A K-3BMI Kenworth T800 winch truck prepares to leave the companys Karnes City, Texas, yard with a frac tank in tow.
hiring skilled mechanics usuTell us your story ... ally sent straight to school to Would you like to share your companys success story learn how to properly mainwith readers of GOMC? In every issue, we feature a tain modern diesel equipdifferent contractor who serves the energy exploration or mineral extraction industries. Tell us about your ment. business or nominate another company for a profile by Seventy percent of the sending an email to editor@gomcmag.com. eet is 2010 or newer and that means they are more complicated because of the new laws on emissions. Our mechanics are not only turning a wrench, they have to learn how to use the computers to do diagnostics and they need to understand the new engines. When trucks and trailers come in for repairs or maintenance, mechanics are responsible for a long checklist of tests and maintenance tasks before putting a rig back on the road. I would rather x a truck in our shop than send someone out to x one at the side of the road in the middle of the night, Ercums explains. PROMOTE FROM WITHIN As his company grows, Ercums develops his own managers. The majority of the managers who run our locations came up through our ranks, either as drivers or as mechanics. Many were supervisors rst at other locations, but most of them jumped at the opportunity if I asked them to manage a new location. One benet of developing his managers, Ercums says, is their willingness to work as a team. He brings them together for quarterly meetings where they can discuss common issues and challenges, but he says they are also encouraged to maintain that teamwork when they go back to their individual ofces. The networking makes it possible for the company to efciently allocate resources both equipment and people where
demand is the greatest. But the value of the teamwork goes beyond that, Ercums says. For a while we were busy servicing rigs for a number of companies in the Haynesville area. A lot of those rigs have moved down to South Texas. Our guys were telling them, We have yards down there, and sharing contact information with the clients and our other managers. And since Ercums company also has a smaller eet of winch trucks, his local ofces make sure clients changing location know that K-3BMI works on a lot of rig moves. QUALITY COUNTS Ercums approach to outtting his company can be expensive, but he says the investment has been worthwhile. He believes the larger aluminum tanks on his trailers make his operation more efcient and he says the way K-3BMI specs its trucks make them more durable. That, he says, makes services reliable. And service counts, he says, because the types of uids that we haul are extremely important to the drilling and completion of wells. If they are not delivered on time, that more info can cost the client a lot of money. Cummins Acknowledging that he sometimes Power Generation cant compete with bids from competitors 763/574-5000 www.cummins.com with lower costs, Ercums says, Weve built a lot of our business on being the second Gardner Denver, Inc. www.gardnerdenverproducts.com call, not the rst call. If weve got someone (See ad on page 54) who tells us theyre getting a better price, PACCAR we tell them, Thats OK, but if they arent 425/468-8216 able to do the job, then just call us back. www.paccar.com We get called back. GOMC
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59
Safety First
ts happened to most of us; you pull into the driveway after a long day and dont remember the last 15 minutes of your commute. Did you run that stop sign down the block? Its a scary feeling. The quality and quantity of sleep directly impacts performance components including concentration, information processing, judgment, reaction time and teamwork, says Nancy Rothstein in a white paper entitled, Optimizing Sleep for an Optimal Workforce in the Oil, Gas and Mining Industries.
Rothstein, known as the Sleep Ambassador (www.thesleepambassador. com), presents many other research ndings in her white paper about how sleep impacts various parts of a workers life such as performance, productivity, safety and accidents, operating vehicles or machines, and overall health problems such as obesity and high blood pressure. She says sleep should be of particular interest to the gas, oil and mining industry because those jobs are often in remote locations where employers provide
The quality and quantity of sleep directly impacts performance components including concentration, information processing, judgment, reaction time and teamwork.
Nancy Rothstein The National Highway Trafc Safety Administration, meanwhile, says drowsy driving kills about 1,550 people every year. Various studies in France, Australia and elsewhere have found that driving sleepy is just as dangerous as driving drunk. Researchers at Utrecht University in the Netherlands found that two hours of continuous nighttime driving was comparable to driving with a blood alcohol concentration 0.05 percent; three hours was equal to driving with a BAC of 0.08 percent (legal intoxication); 4 1/2 hours was equal to a BAC of 0.10. Harvard Medical School analysis of data from the America Insomnia Survey, meanwhile, pegs the cost of accidents and errors caused by lack of sleep at $31 billion a year, estimating that 7 percent of workplace accidents and errors were attributed to tired workers.
60 GOMC www.gomcmag.com - MARCH 2014
housing accommodations. Providing workers with rst-rate living and sleeping accommodations is essential to optimize job performance, enhance mental acuity and prevent injuries. With the added complexities of long working hours and physical demands, companies that provide their workers with lodging that offers optimal sleep comforts, along with tools to promote quality sleep, have seen both performance and economic benets. While OSHA has no regulations concerning sleepy workers, it has issued guidance concerning extended or
unusual work shifts, saying they may be more stressful physically, mentally and emotionally and can lead to an increased risk of operator error, injuries and accidents. Among OSHAs recommendations: Add additional break periods and meals when shifts are extended past normal work periods. Tasks that require heavy physical labor or intense concentration should be performed at the beginning of the shift if possible. Learn to recognize signs and symptoms and monitor for fatigue. Any employee showing such signs should be evaluated and possibly directed to seek rest. Allow time for adequate rest and recovery. Extended shifts should not be maintained for more than a few days, especially if they require heavy physical or mental exertion. Staff adequately to enable workers to take breaks, eat meals, relax and sleep. If at remote sites, ensure, as far as possible, that there is a quiet, secluded area designated for rest and recuperation. Plan for regular and frequent breaks throughout the shift. In addition to formal breaks such as lunch or dinner, encourage the use of micro breaks to change positions, move about and shift concentration. For workers, getting adequate sleep every night can reduce the risk of injury or mistakes. Maybe our kindergarten teachers were right. The solution just might be a good nap every day. GOMC
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