May 2015

For Environmental & Support Service Professionals

BACK TO THEFamily

MONEY MACHINES:A rig to help move pipe in and out of wells

PAGE 18

EAGLE FORD EXTRA:Communities continue to grow despite oil price decline

PAGE 22

www.GOMCmag.com | MAY 2015

TM

WHEN A FAMILY SAWMILL BUSINESS ENDED, FOUR SIBLINGS WENT

SEPARATE WAYS. YEARS LATER, THEY REJOINED TO BUILD A SUCCESSFUL

HYDROEXCAVATION FIRM WITH DIVERSE CLIENTS.

PAGE 12

FREE INFO SEE ADVERTISER INDEX

MAY 2015 - www.gomcmag.com GOMC 3FREE INFO SEE ADVERTISER INDEX

4 GOMC www.gomcmag.com - MAY 2015

contentsfeatures12 CONTRACTOR PROFILE: BACK TO THE FAMILY When a family sawmill business ended, four siblings went separate ways. Years later, they rejoined to build a successful hydroexcavation firm with diverse clients. - Cory Dellenbach 32 BETTER MOUSETRAPS: PROTECTING THE GROUND Advanced-Composite Mats offer a safer alternative to wood mats in oil and gas fields. - Cory Dellenbach 36 PRODUCT FOCUS: COMPRESSORS AND POWER GENERATION, MOBILE SERVICES - Craig Mandli

40 CASE STUDIES: COMPRESSORS AND POWER GENERATION, MOBILE SERVICES - Craig Mandli

COMING IN JUNE 2015ISSUE FOCUS:

Mobile and Bulk Storage Solutions, Remediation, Recycling, Global Petroleum Show

n Contractor Profile: Midwest Soil Remediation (Ingleside, Illinois)

n Safety First: Hydroexcavation safety in the oilfields

departments8 EDITORS NOTEBOOK: WORKING BEHIND THE SCENES In the oil and gas industry, plenty goes on that deserves credit but doesnt always get it. - Cory Dellenbach 10 @GOMCMAG.COM Clips and quotes from the best of our exclusive online content. 18 MONEY MACHINES: PIPE WRANGLER Mechanical rig helps Michigan-based service provider get a handle on efficiency and employee safety. - Ken Wysocky 20 BAKKEN EXTRA: CHEAPER HOUSING COMING Housing industry finally catching up with oil and gas boom in the Bakken. - Cory Dellenbach 22 EAGLE FORD EXTRA: LIFE IN THE EAGLE FORD Texas communities continue growing, plan for future. - Greg Bates 24 EYE ON THE INDUSTRY: KEEPING A CLOSER EYE ON PIPELINES SCADA system could have detected leak before more damage was done in North Dakota. - Cory Dellenbach 26 TECH PERSPECTIVE: STREAMLINING SERVICE Making the change from paper-based operations to tablet-based enterprise software can yield big efficiency gains. - Mary Shafer 28 WWETT PRODUCT SPOTLIGHT: CLEANING OUT THE GRIT New medium-sized combination truck from Polston makes debut at WWETT Show. - Craig Mandli 30 BUILDING THE BUSINESS: EDUCATION IS CONTINUOUS 5 pillars to ensure you never stop learning. - Walt Grassl 34 SAFETY FIRST: AFTER THE FALL Equipment guides workers down if they fall from derrick, crane, other heights. - Doug Day 42 INDUSTRY NEWS 44 PRODUCT NEWS Product Spotlight: High-volume drill fluid mixing, cleaning system made for quick setup, takedown. - Ed Wodalski 48 CALENDAR

MAY 2015

on the coverBaker Hydro-Excavating owners, left to right, Kevin Baker, Kenny Baker, Wendy Gerrard and Allan Baker stand outside their facility in Mountain View, Wyoming. The brothers and sister started the hydroexcavation company in 2011 and serve several oil and gas compa-nies throughout their area with hydroexcavating, power washing and hot-oil trucks. (Photography by Bryon Glathar)

12

1832

www.facebook.com/GOMCmag

www.twitter.com/GOMCmag

www.plus.google.com

www.youtube.com/GOMCmag

www.linkedin.com/company/gas-oil-&-mining-contractor

Get Social with GOMCFor Environmental & Support Service Professionals

BACK TO THEFamily


PAGE 18


PAGE 22


TM




PAGE 12


contentsfeatures12 CONTRACTOR PROFILE: BACK TO THE FAMILY When a family sawmill business ended, four siblings went separate ways. Years later, they rejoined to build a successful hydroexcavation firm with diverse clients. - Cory Dellenbach 32 BETTER MOUSETRAPS: PROTECTING THE GROUND Advanced-Composite Mats offer a safer alternative to wood mats in oil and gas fields. - Cory Dellenbach 36 PRODUCT FOCUS: COMPRESSORS AND POWER GENERATION, MOBILE SERVICES - Craig Mandli

40 CASE STUDIES: COMPRESSORS AND POWER GENERATION, MOBILE SERVICES - Craig Mandli

COMING IN JUNE 2015ISSUE FOCUS:

Mobile and Bulk Storage Solutions, Remediation, Recycling, Global Petroleum Show

n Contractor Profile: Midwest Soil Remediation (Ingleside, Illinois)

n Safety First: Hydroexcavation safety in the oilfields

departments8 EDITORS NOTEBOOK: WORKING BEHIND THE SCENES In the oil and gas industry, plenty goes on that deserves credit but doesnt always get it. - Cory Dellenbach 10 @GOMCMAG.COM Clips and quotes from the best of our exclusive online content. 18 MONEY MACHINES: PIPE WRANGLER Mechanical rig helps Michigan-based service provider get a handle on efficiency and employee safety. - Ken Wysocky 20 BAKKEN EXTRA: CHEAPER HOUSING COMING Housing industry finally catching up with oil and gas boom in the Bakken. - Cory Dellenbach 22 EAGLE FORD EXTRA: LIFE IN THE EAGLE FORD Texas communities continue growing, plan for future. - Greg Bates 24 EYE ON THE INDUSTRY: KEEPING A CLOSER EYE ON PIPELINES SCADA system could have detected leak before more damage was done in North Dakota. - Cory Dellenbach 26 TECH PERSPECTIVE: STREAMLINING SERVICE Making the change from paper-based operations to tablet-based enterprise software can yield big efficiency gains. - Mary Shafer 28 WWETT PRODUCT SPOTLIGHT: CLEANING OUT THE GRIT New medium-sized combination truck from Polston makes debut at WWETT Show. - Craig Mandli 30 BUILDING THE BUSINESS: EDUCATION IS CONTINUOUS 5 pillars to ensure you never stop learning. - Walt Grassl 34 SAFETY FIRST: AFTER THE FALL Equipment guides workers down if they fall from derrick, crane, other heights. - Doug Day 42 INDUSTRY NEWS 44 PRODUCT NEWS Product Spotlight: High-volume drill fluid mixing, cleaning system made for quick setup, takedown. - Ed Wodalski 48 CALENDAR

MAY 2015

on the coverBaker Hydro-Excavating owners, left to right, Kevin Baker, Kenny Baker, Wendy Gerrard and Allan Baker stand outside their facility in Mountain View, Wyoming. The brothers and sister started the hydroexcavation company in 2011 and serve several oil and gas compa-nies throughout their area with hydroexcavating, power washing and hot-oil trucks. (Photography by Bryon Glathar)

12

1832

www.facebook.com/GOMCmag

www.twitter.com/GOMCmag

www.plus.google.com

www.youtube.com/GOMCmag

www.linkedin.com/company/gas-oil-&-mining-contractor

Get Social with GOMCFor Environmental & Support Service Professionals

BACK TO THEFamily


PAGE 18


PAGE 22


TM




PAGE 12


NO DEF! NO REGENS! Lower maintence cost with a pre-emission engine. Heavy duty truck that performs dependably, every job, every day.

THE ULTIMATE WORK TRUCK: POWERFUL, RUGGED, VERSATILE, THE 122SD IS:

CALL HARRISON TRUCK CENTERS: (800) 582-5789 FOR MORE INFORMATION!VISIT US ONLINE: WWW.HTCTRUCKS.COM


Advertiser Index MAY 2015

ALL Erection & Crane Rental Corp. ..........................21......

Canary, LLC .......................................................................................2......

ClearSpan Fabric Structures ............................................35......

Comforts of Home Services, Inc. ...............................19......

COXREELS ..........................................................................................6......

Eldred Environmental & Export Co. LTD ...............41......

Fabco Power ................................................................................19......

Found It Now ..............................................................................49......

ManufacturingEst. 1957

FRUITLAND

Fruitland Manufacturing ......................................................9......

GapVax, Inc. .....................................................................................3......

Granite Seed and Erosion Control.............................35......

Harrison Truck Centers ...........................................................7......

Irwins Safety and Industrial Services Ltd. ............29......

JLG Industries, Inc. ..................................................................15......

Master Pumps & Power ...................................................................33......

Moro USA, Inc. ..............................................................................5......

Northeast Industrial Mfg....................................................31......

Petrofield Industries ...............................................................25......

PolyJohn Enterprises, Inc. ................................................50......

PowerWash Industries .........................................................49......

Premier Oilfield Equipment ............................................11......

Pressure Lift Corporation ...................................................29......

Screenco Systems LLC .........................................................35......

Southwest Products ..............................................................41......

StoneAge, Inc. ............................................................................25......

Ultra Shore ........................................................................................8......

Vactor Manufacturing ..........................................................51......

Vacuum Sales, Inc. ...................................................................31......

Vanair Manufacturing, Inc. ..............................................11......

Vertiflo Pump Co., Inc. .........................................................49......

Water Cannon, Inc. ........................................................49, 52......


Published monthly by:

1720 Maple Lake Dam Rd., PO Box 220

Three Lakes, WI 54562

www.GOMCMag.com

In U.S. or Canada call toll-free 800-257-7222

Elsewhere call 715-546-3346

Email: [email protected]: www.gomcmag.com

Fax: 715-546-3786

Office hours Mon- Fri.,7:30 a.m.-5 p.m. CST

Copyright 2015 COLE Publishing Inc.No part may be reproduced without

permission of the publisher.

SUBSCRIPTION INFORMATION: A one year (12 issue) subscription to GOMC in the United States or Canada is free to qualified subscribers. A qualified subscriber is any company or individual who maintains, services or supports land-based gas, oil or mining operations in North America. Non-qualified subscriptions are available at a cost of $60 per year in the United States and $120 per year outside of the United States. To qualify visit www.gomcmag.com/qualify or send company name, mailing address, phone number and check or money order (U.S. funds payable to COLE Publishing Inc.) to the address above. MasterCard, VISA and Discover are also accepted. Supply credit card information with your subscription order.

Our subscriber list is occasionally made available to carefully selected companies whose products or services may be of interest to you. Your privacy is important to us. If you prefer not to be a part

of these lists, please contact Nicole LaBeau at [email protected].

DISPLAY ADVERTISING: Contact Tim at [email protected] or 800-994-7990. Publisher reserves the right to reject advertising which in its opinion is misleading, unfair or incompatible with the character of the publication.

REPRINTS AND BACK ISSUES: Visit www.gomcmag.com for options and pricing. To order back issues, call Nicole at 800-257-7222 (715-546-3346) or email [email protected]. To order reprints, call Jeff Lane at 800-257-

7222, (715-546-3346) or email [email protected].

CIRCULATION: Circulation averages 19,000 copies per month.

Tim Krueger

SUBSCRIBE TO FOR

FREE!SCAN THE QR CODE

WITH YOUR

SMARTPHONE

FREE Information from Advertisers (check the Free Info boxes above)PRINT NAME: ___________________________________ TITLE: _________________________________________

COMPANY: _____________________________________ NAME: _________________________________________

MAILING ADDRESS: _____________________________________________________________________________

CITY: ___________________________________________ STATE: ___________________ZIP: __________________

PHONE: ________________________________________ CELL PHONE: __________________________________

FAX: ___________________________________________ EMAIL: _________________________________________

Scan and email to: [email protected] / Fax to: 715-546-3786Mail to: COLE Publishing Inc., P.O. Box 220, Three Lakes WI 54562

FREE INFO

FREE INFO

MAY 2015 - www.gomcmag.com GOMC 7

NO DEF! NO REGENS! Lower maintence cost with a pre-emission engine. Heavy duty truck that performs dependably, every job, every day.

THE ULTIMATE WORK TRUCK: POWERFUL, RUGGED, VERSATILE, THE 122SD IS:

CALL HARRISON TRUCK CENTERS: (800) 582-5789 FOR MORE INFORMATION!VISIT US ONLINE: WWW.HTCTRUCKS.COM


Advertiser Index MAY 2015

ALL Erection & Crane Rental Corp. ..........................21......

Canary, LLC .......................................................................................2......

ClearSpan Fabric Structures ............................................35......

Comforts of Home Services, Inc. ...............................19......

COXREELS ..........................................................................................6......

Eldred Environmental & Export Co. LTD ...............41......

Fabco Power ................................................................................19......

Found It Now ..............................................................................49......

ManufacturingEst. 1957

FRUITLAND

Fruitland Manufacturing ......................................................9......

GapVax, Inc. .....................................................................................3......

Granite Seed and Erosion Control.............................35......

Harrison Truck Centers ...........................................................7......

Irwins Safety and Industrial Services Ltd. ............29......

JLG Industries, Inc. ..................................................................15......

Master Pumps & Power ...................................................................33......

Moro USA, Inc. ..............................................................................5......

Northeast Industrial Mfg....................................................31......

Petrofield Industries ...............................................................25......

PolyJohn Enterprises, Inc. ................................................50......

PowerWash Industries .........................................................49......

Premier Oilfield Equipment ............................................11......

Pressure Lift Corporation ...................................................29......

Screenco Systems LLC .........................................................35......

Southwest Products ..............................................................41......

StoneAge, Inc. ............................................................................25......

Ultra Shore ........................................................................................8......

Vactor Manufacturing ..........................................................51......

Vacuum Sales, Inc. ...................................................................31......

Vanair Manufacturing, Inc. ..............................................11......

Vertiflo Pump Co., Inc. .........................................................49......

Water Cannon, Inc. ........................................................49, 52......


Published monthly by:

1720 Maple Lake Dam Rd., PO Box 220

Three Lakes, WI 54562

www.GOMCMag.com

In U.S. or Canada call toll-free 800-257-7222

Elsewhere call 715-546-3346

Email: [email protected]: www.gomcmag.com

Fax: 715-546-3786

Office hours Mon- Fri.,7:30 a.m.-5 p.m. CST

Copyright 2015 COLE Publishing Inc.No part may be reproduced without

permission of the publisher.

SUBSCRIPTION INFORMATION: A one year (12 issue) subscription to GOMC in the United States or Canada is free to qualified subscribers. A qualified subscriber is any company or individual who maintains, services or supports land-based gas, oil or mining operations in North America. Non-qualified subscriptions are available at a cost of $60 per year in the United States and $120 per year outside of the United States. To qualify visit www.gomcmag.com/qualify or send company name, mailing address, phone number and check or money order (U.S. funds payable to COLE Publishing Inc.) to the address above. MasterCard, VISA and Discover are also accepted. Supply credit card information with your subscription order.

Our subscriber list is occasionally made available to carefully selected companies whose products or services may be of interest to you. Your privacy is important to us. If you prefer not to be a part

of these lists, please contact Nicole LaBeau at [email protected].

DISPLAY ADVERTISING: Contact Tim at [email protected] or 800-994-7990. Publisher reserves the right to reject advertising which in its opinion is misleading, unfair or incompatible with the character of the publication.

REPRINTS AND BACK ISSUES: Visit www.gomcmag.com for options and pricing. To order back issues, call Nicole at 800-257-7222 (715-546-3346) or email [email protected]. To order reprints, call Jeff Lane at 800-257-

7222, (715-546-3346) or email [email protected].

CIRCULATION: Circulation averages 19,000 copies per month.

Tim Krueger

SUBSCRIBE TO FOR

FREE!SCAN THE QR CODE

WITH YOUR

SMARTPHONE

FREE Information from Advertisers (check the Free Info boxes above)PRINT NAME: ___________________________________ TITLE: _________________________________________

COMPANY: _____________________________________ NAME: _________________________________________

MAILING ADDRESS: _____________________________________________________________________________

CITY: ___________________________________________ STATE: ___________________ZIP: __________________

PHONE: ________________________________________ CELL PHONE: __________________________________

FAX: ___________________________________________ EMAIL: _________________________________________

Scan and email to: [email protected] / Fax to: 715-546-3786Mail to: COLE Publishing Inc., P.O. Box 220, Three Lakes WI 54562

FREE INFO

FREE INFO


C

M

Y

CM

MY

CY

CMY

K

Fruitland_Pumper_Ad_9x10.875_031915_PRO.pdf 1 15-03-19 9:16 AM


heres a lot that goes on behind the scenes in the oil and gas industry that doesnt always get the

recognition it should.Oil and gas service companies are win-

ning awards for keeping the environment clean, towns in the oil boom areas are still prospering despite the drop in oil prices, and service companies are playing important roles in keeping the big oil producers going.

The Oil & Gas Awards kicked off the 2015 awards year with the first three regional awards gala dinners in March. The Rocky Mountain awards gala was held March 10, the Gulf Coast on March 19 and the Northeast on March 25.

The awards are a time for large and small oil and gas services companies to be recognized for the work theyre doing. Some of these companies have been profiled in

this magazine like Green Energy Oilfield Services in Texas, or McCutcheon Enterprises in Pennsylvania.

Well be highlighting several of the Oil & Gas Awards winners online at www.gomcmag.com after the winners are announced, so keep on checking the website to read about some of these companies.

KEEPING THEM GOING

In this issue we profile Baker Hydro-Excavating, a service company that does a lot of its work behind the scenes.

Brothers Kenny, Kevin and Allan Baker, along with sister Wendy Gerrard,

launched the business in 2011 after being involved in the logging business for years with their dad. The family saw the potential their company could have in the oil and gas market and started with hydroexcavation and moved on to pressure washing services and hot-oil truck services.

The company went from one truck when it was first founded to 11 hydroexcavators and 13 other support trucks today.

SEEING GROWTH

Shale plays throughout the U.S. are still growing despite the unstable crude oil prices, and its amazing how much some of these towns and cities have grown.

At $105 a barrel, it was great. At $50 a barrel, its actually still pretty great, says Gonzales, Texas, City Manager Allen Barnes in this months Eagle Ford Extra.

The citys population has increased by

more than 40 percent, going from 7,237 people in 2010 to about 10,000 now. Its the same in other communities in that region. In Cotulla, Texas, the population went up from 3,600 to 10,000 in the last four years.

Its a sign that all is not lost with lower crude oil prices and there is still plenty going on behind the scenes to keep the industry moving.

WHAT ABOUT YOU?

What service contractors do you work with that deserve some recognition, and why?

Let me know by emailing me at [email protected] or calling me at 800/257-7222. Enjoy this months issue! GOMC

Cory Dellenbach

Editors Notebook

WORKING BEHIND THE SCENESIn the oil and gas industry, plenty goes on that deserves credit but doesnt always get it

By Cory Dellenbach

T

The [Oil & Gas] Awards are a time for large and small oil and gas services companies to be recognized for the work theyre doing.


@GOMCmag.comVisit the site daily for new, exclusive content. Read our blogs, find resources and get the most out of GOMC magazine.

Visit GOMCmag.com and sign up for newsletters and alerts. Get exclusive content delivered right to your inbox, and youll stay in the loop on topics important to you!

Find us on Facebook at facebook.com/GOMCMag orTwitter at twitter.com/GOMCMagazine

emails and alerts

CONNECT WITH US

want more?

WITHSTAND DISASTER

Consider the Key ManWhat would happen to your business if an employee whose work is crucial to operations were to be injured or killed? If you have employees you cant do without you may want to think about key person insurance, which can help both your business and the employees family. gomcmag.com/featured

NEWSBRIEFSRIGS BY AIR

Drilling InnovationThe SkyStrat concept allows Cenovus to fly a smaller, lighter drilling rig into remote locations piece by piece via helicopter, eliminating the expense of building roads and the disturbance it causes to area habitats. Helicopter delivery allows year-round work in areas that would otherwise be difficult to access. gomcmag.com/featured

OVERHEARD ONLINE

Find out what [the app] is doing. Any data

transmission should be disclosed

and transmitted securely.- Smartphone Security: When Apps Attack

gomcmag.com/featured

WHATS HAPPENING

News in BriefGOMCmag.com strives to keep you updated about whats going on in the world of oil and gas. Check out our News Briefs feature every week, where we give you the scoop on recent news stories. gomcmag.com/featured


Family has always been important for Kenny Baker and his three siblings. They were close growing up and eventually worked together as well. Now, the brothers and sister are running their own hydroexcavation company.

Baker, his two brothers and one sister started Baker Hydro-Excavating after leaving the family logging business

where they had worked for most of their lives.As a family, we started in the logging business thinking that was going to

be our career, says Baker. My dad had a sawmill with my grandpa, and after my grandpa passed my dad and another family member became partners.

Baker and his brother Kevin worked at the sawmill along with their dad, while younger siblings Wendy and Allan grew up around it.

Their father passed away in 2000, and the family lost control of the saw-mill the next year. The four siblings were forced to find other work, but after 10 years in separate jobs, they joined forces again to start Baker Hydro-Excavating, based in Mountain View, Wyoming.

The company started doing work in the oilfields with just one hydroexcavator, but by mid-2012 there were five trucks in the inventory. Now, the company also does utility and construction work, and the fleet includes 11 hydroexcavators and 13 support trucks.

FINDING NEW WORK

After the passing of their father, Baker and his siblings Kevin, Allan and Wendy had to relinquish control of the mill to another family who also had ownership in the business.

The family members picked up new jobs Baker and Allan in nearby mines, Wendy as a certified nursing assistant and Kevin with several hydroexcavation companies.

In late 2010, Kevin approached Baker with an idea to start a hydroexcava-tion business. He talked it over with the rest of his siblings and wheels went into motion. It was scary starting something new, Baker says. Our mom had received a settlement from the sawmill business, and she allowed us to use a

When a family sawmill business ended, four siblings went separate ways. Years later, they rejoined to

build a successful hydroexcavation firm with diverse clients.

BACK TO THEFamily

By Cory Dellenbach | Photography by Bryon Glathar

Pictured from left to right, in front of the Baker Hydro-Excavating office in Mountain View, Wyoming: Felix

Campos, Lacee Bernard, Kevin Baker, Wendy Gerrard, Kenny Baker, Stephanie Baker, Russell Baker, Marcus

Baker, Kallan Gerrard and Allan Baker.

12 GOMC www.gomcmag.com - MARCH 2015

Cover Story

BAKER HYDRO-EXCAVATINGYEAR FOUNDED: 2011

LOCATED: Mountain View, Wyoming

OWNERS: Kenny Baker, Kevin Baker, Allan Baker and Wendy Gerrard

EMPLOYEES: 31SPECIALTY SERVICES: Cleaning hydrocarbons off of structures, culvert and line cleaning

SERVICE AREA: Western United States

WEBSITE: www.bakerhydroex.com

Baker Hydro-Excavating operator Felix Campos is

daylighting to uncover buried electrical lines that need to be repaired on a job site in

southwestern Wyoming.



Family has always been important for Kenny Baker and his three siblings. They were close growing up and eventually worked together as well. Now, the brothers and sister are running their own hydroexcavation company.

Baker, his two brothers and one sister started Baker Hydro-Excavating after leaving the family logging business

where they had worked for most of their lives.As a family, we started in the logging business thinking that was going to

be our career, says Baker. My dad had a sawmill with my grandpa, and after my grandpa passed my dad and another family member became partners.

Baker and his brother Kevin worked at the sawmill along with their dad, while younger siblings Wendy and Allan grew up around it.

Their father passed away in 2000, and the family lost control of the saw-mill the next year. The four siblings were forced to find other work, but after 10 years in separate jobs, they joined forces again to start Baker Hydro-Excavating, based in Mountain View, Wyoming.

The company started doing work in the oilfields with just one hydroexcavator, but by mid-2012 there were five trucks in the inventory. Now, the company also does utility and construction work, and the fleet includes 11 hydroexcavators and 13 support trucks.

FINDING NEW WORK

After the passing of their father, Baker and his siblings Kevin, Allan and Wendy had to relinquish control of the mill to another family who also had ownership in the business.

The family members picked up new jobs Baker and Allan in nearby mines, Wendy as a certified nursing assistant and Kevin with several hydroexcavation companies.

In late 2010, Kevin approached Baker with an idea to start a hydroexcava-tion business. He talked it over with the rest of his siblings and wheels went into motion. It was scary starting something new, Baker says. Our mom had received a settlement from the sawmill business, and she allowed us to use a

When a family sawmill business ended, four siblings went separate ways. Years later, they rejoined to

build a successful hydroexcavation firm with diverse clients.

BACK TO THEFamily

By Cory Dellenbach | Photography by Bryon Glathar

Pictured from left to right, in front of the Baker Hydro-Excavating office in Mountain View, Wyoming: Felix

Campos, Lacee Bernard, Kevin Baker, Wendy Gerrard, Kenny Baker, Stephanie Baker, Russell Baker, Marcus

Baker, Kallan Gerrard and Allan Baker.

Cover Story

BAKER HYDRO-EXCAVATINGYEAR FOUNDED: 2011

LOCATED: Mountain View, Wyoming

OWNERS: Kenny Baker, Kevin Baker, Allan Baker and Wendy Gerrard

EMPLOYEES: 31SPECIALTY SERVICES: Cleaning hydrocarbons off of structures, culvert and line cleaning

SERVICE AREA: Western United States

WEBSITE: www.bakerhydroex.com

Baker Hydro-Excavating operator Felix Campos is

daylighting to uncover buried electrical lines that need to be repaired on a job site in

southwestern Wyoming.


portion of the money to start this business. It takes a lot of money to get started in this work.

They purchased their first hydroexcavator in November 2011, and business took off from there. We decided as a family that we would get one truck and see how the business went, Baker says. Within a month, the demand was so high that we purchased our second hydrovac. We had to stay ahead of the work.

The company steadily expanded to 11 trucks and now has a second loca-tion. Besides its headquarters in Mountain View, Baker Hydro-Excavating has a satellite office in Casper, Wyoming, run by Kelly Webb. The company works throughout Wyoming, Colorado and Utah.

IN THE OILFIELDSAt startup, Baker Hydro-Excavating found itself in the middle of an oil

boom, making that industry an obvious focus.Oil and gas are still our biggest industries served, but we go to a lot of the

mines and do a little work there, Baker says. We work with utility companies and we do work for the local highway department.

In the oil and gas industry, Baker Hydro-Excavating does jobs such as rig cleaning, pit cleaning, pressure washing, oilfield tank cleaning, waste removal, remote digging and hot-oil services.

I found more and more as we worked in oil and gas that we needed to diversify, Baker says. Oil prices just tanked out, a lot of people are struggling and oil companies are holding off on projects. We wanted to diversify a little bit more so we didnt have to rely totally on the oil and gas industry.

In utility work, the company does slot trenching, daylighting and culvert and cattle guard clean-outs. Cattle guards are obstacles used to prevent live-stock from passing along a road that cuts through fencing surrounding a piece of land. The cattle guards consist of a depression in the road covered by a grid of bars or tubes, normally made of metal.

Throughout the year, water and dirt accumulate in the culverts and cattle guards, blocking the flow of water or filling in under the cattle guard, Baker

A FAMILY AFFAIR

We decided as a family that we would get one truck and

see how the business went. Within a month, the demand

was so high that we purchased our second hydrovac.

We had to stay ahead of the work.

Kenny Baker

A Baker Hydro-Excavating crew works near natural gas lines on a job site in Wyoming. (Contributed photo by Baker Hydro-Excavating)

says. We get called out to clean the debris that has settled in the pipe. We have a rotating head that pro-pels itself through to clean out the pipe.

Hydroexcavators also enable crews to use the hose to get in where backhoes and other large equip-ment cant reach. On a typical workday, the company has all of its hydroexcavators in the field with two-man crews in each truck. The number of units in the field does depend on the client demand.

Lately with the oil and gas prices the way they are, weve been running four to six crews out there a day, Baker says.

FINDING TOUGH JOBS

A focus on hydroexcavation can bring some chal-lenging jobs. Recently at a compressor station com-pany crews were hired to expose 32 natural gas lines running into the station and find the main power line

Working with family in a business can bring stress, but the Baker family has found a way to move past that.

It has its ups and downs at times, but in the end we work together as a united team, Kenny Baker says.

Kenny, Allan and Kevin Baker and their sis-ter Wendy Gerrard have worked together since they were young, first alongside their dad at a family-owned sawmill, and now as shareowners of Baker Hydro-Excavating.

While there can be struggles in working with family, the four find that it can also make their business stronger: They know each others strengths and weaknesses and keep lines of communication open.

We all have the same goal in mind to make our business the best it can be: Providing good service to our clients and knowing that our fa-ther would be proud of what we have built, Baker says.

They each have their own duties. Baker handles the office, Allan handles maintenance, Wendy runs the safety program and Kevin works in the field running a hydroexcavator. Baker and Allan have kept their jobs at a local mine.

Plenty of other family members are involved in the business. Bakers wife, Stephanie, and Kevins daughter, Halie, serve as secretaries. Gerrards husband is a laborer. Bakers sons also work for the company, Russell as an electrician and Marcus as a mechanic.

Says Baker, We work through the tough decisions that in the end make us a better business.

A FAMILY AFFAIR

Baker Hydro-Excavating office secretary Lacee Bernard, treasurer Wendy Gerrard and office manager Stephanie Baker work on the computer at the companys headquarters in Mountain View, Wyoming.


WELCOME TO YOUR NEW MAN CAVE

COMPLETELY REDESIGNED FOR OPERATOR COMFORT.Its your space for hours at a time. Not only do you want to be more comfortable while performing your work but comfortable conditions also help keep you more productive.

Learn more at www.jlg.com/en/JLG-TH-15

OPTIONAL

MULTIFUNCTION

DISPLAY

MORE CAB COMFORT

NEW SEAT DESIGN

ROOMIER CAB

ENHANCED VISIBILITY

ROOMIER CAB ROOMIER CAB

INTUITIVE

SINGLE

JOYSTICK

jlg3783-05NA-GOMC-427P-D13.indd 1 4/15/15 9:22 AMFREE INFO SEE ADVERTISER INDEX

portion of the money to start this business. It takes a lot of money to get started in this work.

They purchased their first hydroexcavator in November 2011, and business took off from there. We decided as a family that we would get one truck and see how the business went, Baker says. Within a month, the demand was so high that we purchased our second hydrovac. We had to stay ahead of the work.

The company steadily expanded to 11 trucks and now has a second loca-tion. Besides its headquarters in Mountain View, Baker Hydro-Excavating has a satellite office in Casper, Wyoming, run by Kelly Webb. The company works throughout Wyoming, Colorado and Utah.

IN THE OILFIELDSAt startup, Baker Hydro-Excavating found itself in the middle of an oil

boom, making that industry an obvious focus.Oil and gas are still our biggest industries served, but we go to a lot of the

mines and do a little work there, Baker says. We work with utility companies and we do work for the local highway department.

In the oil and gas industry, Baker Hydro-Excavating does jobs such as rig cleaning, pit cleaning, pressure washing, oilfield tank cleaning, waste removal, remote digging and hot-oil services.

I found more and more as we worked in oil and gas that we needed to diversify, Baker says. Oil prices just tanked out, a lot of people are struggling and oil companies are holding off on projects. We wanted to diversify a little bit more so we didnt have to rely totally on the oil and gas industry.

In utility work, the company does slot trenching, daylighting and culvert and cattle guard clean-outs. Cattle guards are obstacles used to prevent live-stock from passing along a road that cuts through fencing surrounding a piece of land. The cattle guards consist of a depression in the road covered by a grid of bars or tubes, normally made of metal.

Throughout the year, water and dirt accumulate in the culverts and cattle guards, blocking the flow of water or filling in under the cattle guard, Baker

A FAMILY AFFAIR

We decided as a family that we would get one truck and

see how the business went. Within a month, the demand

was so high that we purchased our second hydrovac.

We had to stay ahead of the work.

Kenny Baker

A Baker Hydro-Excavating crew works near natural gas lines on a job site in Wyoming. (Contributed photo by Baker Hydro-Excavating)

says. We get called out to clean the debris that has settled in the pipe. We have a rotating head that pro-pels itself through to clean out the pipe.

Hydroexcavators also enable crews to use the hose to get in where backhoes and other large equip-ment cant reach. On a typical workday, the company has all of its hydroexcavators in the field with two-man crews in each truck. The number of units in the field does depend on the client demand.

Lately with the oil and gas prices the way they are, weve been running four to six crews out there a day, Baker says.

FINDING TOUGH JOBS

A focus on hydroexcavation can bring some chal-lenging jobs. Recently at a compressor station com-pany crews were hired to expose 32 natural gas lines running into the station and find the main power line

Working with family in a business can bring stress, but the Baker family has found a way to move past that.

It has its ups and downs at times, but in the end we work together as a united team, Kenny Baker says.

Kenny, Allan and Kevin Baker and their sis-ter Wendy Gerrard have worked together since they were young, first alongside their dad at a family-owned sawmill, and now as shareowners of Baker Hydro-Excavating.

While there can be struggles in working with family, the four find that it can also make their business stronger: They know each others strengths and weaknesses and keep lines of communication open.

We all have the same goal in mind to make our business the best it can be: Providing good service to our clients and knowing that our fa-ther would be proud of what we have built, Baker says.

They each have their own duties. Baker handles the office, Allan handles maintenance, Wendy runs the safety program and Kevin works in the field running a hydroexcavator. Baker and Allan have kept their jobs at a local mine.

Plenty of other family members are involved in the business. Bakers wife, Stephanie, and Kevins daughter, Halie, serve as secretaries. Gerrards husband is a laborer. Bakers sons also work for the company, Russell as an electrician and Marcus as a mechanic.

Says Baker, We work through the tough decisions that in the end make us a better business.

A FAMILY AFFAIR

Baker Hydro-Excavating office secretary Lacee Bernard, treasurer Wendy Gerrard and office manager Stephanie Baker work on the computer at the companys headquarters in Mountain View, Wyoming.


contractors couldnt remove, and he wanted to know if we could try, Baker says. I went up to it and did a test strip with a cleaning chemical we use, and it came right off.

Since then, the service has grown considerably, and now the company considers it one of its specialties. The company uses power washers manufactured by Hydro Tek.

Baker says, We use the tools to clean buildings in the oilfields, using environmentally safe cleaning agents along with the power washer to ensure the best job possible.

SAFETY BRINGS WORK

A big part of landing clients for Baker Hydro-Excavating is the use of services such as ISnetworld, Veriforce and PEC Premier companies that track contractors safety compliance certifications. Potential clients can look up contractors through those services websites.

A lot of the companies we work for require us to have one of those three services, Baker says. These companies are a resource for prospective clients, informing them about your company.

Employees who work in the field must undergo Safeland training before even stepping foot on a hydroexcavator. The company also requires employees to take part in weekly safety meetings and conducts daily job safety analysis reports on each job.

We take the safety of our workers and the others on location very seriously, Baker says. Safety is our top priority.

The company puts new employ-ees through several weeks of field training with experienced crews.

If a greenhorn comes in with no experience, he will go with a crew of two and work with them for two weeks until he feels comfortable running that whole truck and knowing the safety procedures, Baker says. Before he can go out on his own, he must demonstrate to us that he can handle it.

SLOWING DOWNNow that the company has grown so fast in just four years, Baker says its

time to slow down: We dont want to grow too fast. We want to settle down, and the goal is to get everything paid down.

The company was scheduled to get three or four new trucks in the near future, but decided to wait until the market settles especially on the oil and gas side. In the meantime, Baker plans to implement a Hows My Driving? incentive for the employees. If they receive a good review from a customer, theyll receive an award.

Our employees are a big part of our growth, Baker says. They do their job in a timely manner while keeping safety in mind.

Baker believes the hydroexcavation industry is still in its infancy in the U.S., and hes excited to see what it becomes: In this line of work there are going to be a lot of changes with how hydroexcavators are used. There are a lot of utility lines and pipelines going in the ground, which makes it perfect for hydroexcavation work. GOMC

more infoHydro Tek - Cleaning Equipment Mfg.800/274-9376www.hydrotek.us

Ramvac by Sewer Equipment800/323-1604www.ram-vac.com

Oil and gas are still our biggest industries served, but we

go to a lot of the mines and do a little work there.

Kenny Baker

Baker Hydro-Excavating operator Felix Campos looks on as mechanic and maintenance man Marcus Baker prepares to fill one of the companys trucks with water.

to it. We were asked to get this done in two days because it was where all the lines from the wellheads were running into, Baker says. They didnt want it down very long because it would shut down the wellhead then.

Another problem at the site was mobility: The site was fenced in with barely enough room for trucks to move around. The company had five trucks digging, each one taking a section and exposing the lines within it.

The debris was clay with some hard shale that we dug through to expose the lines, Baker says. We were able to get it all done in time, and it took a lot of teamwork.

Another recent job had the company digging holes for cement pillars. The client couldnt get a drill inside the location where the pillars were to go. Baker Hydro-Excavating crews remotely dug the holes using the hydroexcava-tors hoses.

The pillar holes had to be precise so they could pour in the cement, Baker says.

MORE THAN JUST HYDROEXCAVATION

Just a year after starting operations, the company owners knew they had an opportunity to expand services even more into something that didnt involve digging. Thats when they moved into power washing services.

They complemented what we do, says Baker.Baker and his brother Kevin found their way into the new service as they

traveled to oilfield sites looking for work. The brothers pulled up to a site and talked to the manager who said there was no work for them.

As they began to pull away, the manager ran back out. They had this building that was covered in film from oil compressors that four other

ABOVE: Baker Hydro-Excavating workers Marcus Baker (left) and Felix Campos prepare one of the companys hydroexcavation trucks to begin daylighting.

BELOW: Baker Hydro-Excavating mechanic Marcus Baker works on one of the companys hydroexcavators at its shop in Mountain View, Wyoming.


Money Machines

ripping production pipe in and out of wells used to be a time-consuming, high-risk task for roughnecks employed by Team Services LLC, which provides well services and completion rigs for oil and

natural gas drillers in the Marcellus and Bakken shale plays. But that all changed dramatically when the company invested in two mechanical pipe handlers made by Hawker Well Works.

Before, it used to take crews from the Kalkaska, Michigan-based company about a 12-hour day to manually install the 200 to 300 joints 30- to 32-foot-long sections of 2 7/8-inch-diameter production pipe typically needed for each well. Each joint weighs about 225 to 300 pounds, so wrangling them into the well while standing on a 25- to 30-foot-tall drilling platform was difficult for rig handlers.

The joints are awkward to handle, says Tom Goosman, the North Dakota area manager for Team Services, which was established in 2001 and employs 150 people and operates facilities in Mercer, Pennsylvania, and Williston, North Dakota. A couple or three guys have to pick them up by hand and struggle with them.

But the Hawker pipe handler trimmed installation time by more than half, which provides great savings for the well owner or operator, Goosman adds. By using this machine, we can work very fast, which is a big selling point if you can trip pipe faster and more efficiently, then the customer will call us again the next day. Every day we work is a sales pitch for the next job. In this business, youre only a hero for a day.

The mechanical pipe handler, which weighs 20,000 pounds and can be towed by a medium-duty truck, also reduces the risk of injuries, particularly hand-related injuries, such as pinched or smashed fingers. Thats why we try to incorporate as much mechanical equipment into the process as possible, Goosman notes. When something mechanical breaks, you can fix it. But if you break a hand, its pretty hard to replace.

Along with the Hawker pipe handlers, Team Services relies on mud pumps made by National Oilwell Varco and Gardner Denver, mobile workover

T

PIPE WRANGLERMechanical rig helps Michigan-based service provider get a handle on efficiency and employee safety

By Ken Wysocky

Team Services LLC, Kalkaska, MichiganMACHINE: Mechanical pipe handler made by Hawker Well Works

FUNCTION: Mechanically moves production pipe up to workover-rig platform for well insertion

FEATURES: Kubota or Caterpillar diesel engine, synchronized index arms, hydraulic lift system, pinless hydraulic height adjustment, remote-control operation, DOT-compliant for highway travel

COST: About $250,000

WEBSITE: www.hawkerwellworks.com; www.goteamservices.com

By using this machine, we can work very fast, which is a

big selling point if you can trip pipe faster and more

efficiently, then the customer will call us again the next day.

Tom Goosman

rigs made by Falcon Rigs and Service King Manufacturing, winches made by Braden (a division of Paccar), Caterpillar fork lifts, and McKissick blocks and latch elevators (The Crosby Group).

Heres how the pipe handler works: Two synchronized index arms lift a joint off a pipe rack, then roll it evenly onto the bed of the handler and into a roughly 40-foot-long metal trough. Then a hydraulic system raises the rear end of the trough to the level of the workover rigs subfloor.

Then the operator activates a hydraulic skate located near the bottom of the trough that pushes the joint up the length of the trough. From there, roughnecks attach the joint to a latch elevator, which lifts it into place for insertion into the well, Goosman explains.

The trough can rise up to 31 feet (workover platform heights vary, depending on the height of the blowout preventers below). A pinless hydraulic system makes height adjustments quicker and safer; in fact, the operator can switch from the lowest to the highest height setting in less than a minute, Goosman says.

The pipe handler can be operated by controls mounted on the unit itself or by remote control. You can operate it from inside a pickup truck, which is a big plus when its 30 degrees below zero with 40 mph winds, Goosman notes. Its a very basic and operator-friendly machine. Anyone whos mechanically inclined can be taught how to operate it in a very short period of time.

The speed with which joints can be tripped depends on several factors, not the least of which is how well the rig handlers on the workover platform work with the pipe-handler operator. They have to work in unison, Goosman notes. Its an art sort of like mechanical ballet for roughnecks.

Goosman also lauds the unit for its reliability and Hawker for providing great customer service critical factors in an industry where downtime can cost customers big money. Mechanically, its built solidly with good engineering, he says. Thats important because when were charging customers thousands of dollars a day to do a job, downtime is critical. We need reliability and great service, and we get both from Hawker.

Both of our pipe handlers are integral to our operations, Goosman concludes. They help us provide fast and efficient service for our customers and reduce the risks of handling pipe by hand. Theyre very important tools for our company. GOMC



CALL FOR MORE INFO AND ADDITIONAL OPTIONS

p. 630.906.8002 email. [email protected]

See our website for layouts and more optio

ns

SPECIALIZED TRAILERSSKID UNITSEMERGENCY SHOWER

EYE WASH UNITSDECONTAMINATION UNITS

COMBINATION TRAILER LAYOUT OPTIONS

HYDRAULICALLY DRIVEN

Welder: 240 Amps DCGenerator:7.5KW 120/240 VAC

Lightweight Only 165 lbs. Compact Size 27L x 17H x 10W Environmentally Clean and Non-Polluting Complete Unit is Maintenance Free Automatic Current Overload Protection Device Provides 120/240 volts Optional Pressure Compensating Flow Control Patented "Fury Precision Power Coupler Housing" Operates AC tools, air compressors, lights and much more! Attach your air compressor to convert to a 3 in 1 system for thousands less

Outstanding Features

Visit Our Website www.fabcopower.comP.O. Box 582, Chester, NY 10918tel: (845) 469-9151 fax: (845) 469-7871

Super VCooler / 3 gal. reservoir

OPTIONS

Protective cover

HYDRO-ARC 7500

DC WELDER / AC GENERATORMoney Machines

ripping production pipe in and out of wells used to be a time-consuming, high-risk task for roughnecks employed by Team Services LLC, which provides well services and completion rigs for oil and

natural gas drillers in the Marcellus and Bakken shale plays. But that all changed dramatically when the company invested in two mechanical pipe handlers made by Hawker Well Works.

Before, it used to take crews from the Kalkaska, Michigan-based company about a 12-hour day to manually install the 200 to 300 joints 30- to 32-foot-long sections of 2 7/8-inch-diameter production pipe typically needed for each well. Each joint weighs about 225 to 300 pounds, so wrangling them into the well while standing on a 25- to 30-foot-tall drilling platform was difficult for rig handlers.

The joints are awkward to handle, says Tom Goosman, the North Dakota area manager for Team Services, which was established in 2001 and employs 150 people and operates facilities in Mercer, Pennsylvania, and Williston, North Dakota. A couple or three guys have to pick them up by hand and struggle with them.

But the Hawker pipe handler trimmed installation time by more than half, which provides great savings for the well owner or operator, Goosman adds. By using this machine, we can work very fast, which is a big selling point if you can trip pipe faster and more efficiently, then the customer will call us again the next day. Every day we work is a sales pitch for the next job. In this business, youre only a hero for a day.

The mechanical pipe handler, which weighs 20,000 pounds and can be towed by a medium-duty truck, also reduces the risk of injuries, particularly hand-related injuries, such as pinched or smashed fingers. Thats why we try to incorporate as much mechanical equipment into the process as possible, Goosman notes. When something mechanical breaks, you can fix it. But if you break a hand, its pretty hard to replace.

Along with the Hawker pipe handlers, Team Services relies on mud pumps made by National Oilwell Varco and Gardner Denver, mobile workover

T

PIPE WRANGLERMechanical rig helps Michigan-based service provider get a handle on efficiency and employee safety

By Ken Wysocky

Team Services LLC, Kalkaska, MichiganMACHINE: Mechanical pipe handler made by Hawker Well Works

FUNCTION: Mechanically moves production pipe up to workover-rig platform for well insertion

FEATURES: Kubota or Caterpillar diesel engine, synchronized index arms, hydraulic lift system, pinless hydraulic height adjustment, remote-control operation, DOT-compliant for highway travel

COST: About $250,000

WEBSITE: www.hawkerwellworks.com; www.goteamservices.com

By using this machine, we can work very fast, which is a

big selling point if you can trip pipe faster and more

efficiently, then the customer will call us again the next day.

Tom Goosman

rigs made by Falcon Rigs and Service King Manufacturing, winches made by Braden (a division of Paccar), Caterpillar fork lifts, and McKissick blocks and latch elevators (The Crosby Group).

Heres how the pipe handler works: Two synchronized index arms lift a joint off a pipe rack, then roll it evenly onto the bed of the handler and into a roughly 40-foot-long metal trough. Then a hydraulic system raises the rear end of the trough to the level of the workover rigs subfloor.

Then the operator activates a hydraulic skate located near the bottom of the trough that pushes the joint up the length of the trough. From there, roughnecks attach the joint to a latch elevator, which lifts it into place for insertion into the well, Goosman explains.

The trough can rise up to 31 feet (workover platform heights vary, depending on the height of the blowout preventers below). A pinless hydraulic system makes height adjustments quicker and safer; in fact, the operator can switch from the lowest to the highest height setting in less than a minute, Goosman says.

The pipe handler can be operated by controls mounted on the unit itself or by remote control. You can operate it from inside a pickup truck, which is a big plus when its 30 degrees below zero with 40 mph winds, Goosman notes. Its a very basic and operator-friendly machine. Anyone whos mechanically inclined can be taught how to operate it in a very short period of time.

The speed with which joints can be tripped depends on several factors, not the least of which is how well the rig handlers on the workover platform work with the pipe-handler operator. They have to work in unison, Goosman notes. Its an art sort of like mechanical ballet for roughnecks.

Goosman also lauds the unit for its reliability and Hawker for providing great customer service critical factors in an industry where downtime can cost customers big money. Mechanically, its built solidly with good engineering, he says. Thats important because when were charging customers thousands of dollars a day to do a job, downtime is critical. We need reliability and great service, and we get both from Hawker.

Both of our pipe handlers are integral to our operations, Goosman concludes. They help us provide fast and efficient service for our customers and reduce the risks of handling pipe by hand. Theyre very important tools for our company. GOMC


t wasnt that long ago when renting a small apartment in some areas of North Dakota cost as much as living in

Manhattan, but now the housing market is starting to catch up to the oil boom and prices are starting to fall.

Prices have dropped about 15 to 20 percent in the last several months as dozens of new apartment buildings have opened in Williston, Watford City and other cities across the Bakken Shale.

There is still demand for apartments and there are still about 1,800 unfilled energy-related jobs in North Dakota, but the housing shortage isnt like it was when the oil boom began six years ago.

APARTMENTS KEEP COMING

When the boom began in 2009, oilfield workers were often sleeping in cars overnight because there wasnt enough housing, but dozens of new properties have opened in the last two years and at least 20 more are opening in 2015.

Youre starting to see prices fall this year as more units come online, says Terry Metzler of Granite Peak Development. His company has built apartments and a shopping center in Williston and has an additional 400 apartments and houses under construction.

Williston issued building permits for 1,290 apartment units and 333 single-

family homes in 2014. It doesnt appear as though its slowing down either as Stropiq, a local developer, is seeking approval for a $500 million development just outside Williston that includes retail and office space, as well as 900 apartments and townhomes.

Property managers say they havent had any problem filling the units as they become available. Even with oil prices falling, most apartment buildings are 92 to 95 percent full, according to the Williston Chamber of Commerce.

You cant build a vibrant community with services, quality of life and families when you have some of the highest rents and costs in the nation, says Shawn Wenko, Willistons director of economic development.

In Dickinson, where Whiting Petroleum is based, the price of a two-bedroom apartment at Sterling Groups Sierra Ridge was cut from $2,159 to $1,775.

I could see the quality of life improve for some people if they arent worried each month about how theyre going to make rent, says Justin Hammer of IRET, which owns apartment buildings in Williston and Minot.

HOUSING MARKET DOESNT TAKE HIT

North Dakota didnt take the hit that most states took in 2009. Its unemployment

rate never climbed above 4.2 percent, and in December 2013 it had the lowest unemployment rate in the country.

Some states, including North Dakota, have what everyone wishes they had: demand, says Keith Gumbinger, vice president of HSH.com.

North Dakota real estate agent John Knosalla says demand for homes exploded in 2013 and many sales turned into bidding wars with several potential buyers. Every offer was a competition, and thats just not typical.

Knosallas business has doubled every year for the last four years. In 2014 he closed on 148 homes.

The increased demand has also put a strain on carpenters, plumbers and electricians.

They are pining for framers, Knosalla says. New construction costs have skyrocketed because there is so much work and not enough time or people to get it all done. Tradesmen are naming their prices and builders just have to pay it.

STILL MORE ROOM

Many developers also say they are confident the states oil industry will not go belly up like it did during two previous busts in the 1950s and 80s.

Even with all the apartments being built and more homes going up, real estate companies still see room for more development.

We still, even with all were building, dont have enough housing in this region, Metzler says. GOMC

Bakken Extra

CHEAPER HOUSING COMINGHousing industry finally catching up with oil and gas boom in the Bakken

By Cory Dellenbach

I

Subscribe online at www.gomcmag.comFREE SUBSCRIPTION

I could see the quality of life improve for some people if they arent worried each month about how theyre going to make rent.Justin Hammer

Some states, including North Dakota, have what everyone wishes they had: demand.Keith Gumbinger


t wasnt that long ago when renting a small apartment in some areas of North Dakota cost as much as living in

Manhattan, but now the housing market is starting to catch up to the oil boom and prices are starting to fall.

Prices have dropped about 15 to 20 percent in the last several months as dozens of new apartment buildings have opened in Williston, Watford City and other cities across the Bakken Shale.

There is still demand for apartments and there are still about 1,800 unfilled energy-related jobs in North Dakota, but the housing shortage isnt like it was when the oil boom began six years ago.

APARTMENTS KEEP COMING

When the boom began in 2009, oilfield workers were often sleeping in cars overnight because there wasnt enough housing, but dozens of new properties have opened in the last two years and at least 20 more are opening in 2015.

Youre starting to see prices fall this year as more units come online, says Terry Metzler of Granite Peak Development. His company has built apartments and a shopping center in Williston and has an additional 400 apartments and houses under construction.

Williston issued building permits for 1,290 apartment units and 333 single-

family homes in 2014. It doesnt appear as though its slowing down either as Stropiq, a local developer, is seeking approval for a $500 million development just outside Williston that includes retail and office space, as well as 900 apartments and townhomes.

Property managers say they havent had any problem filling the units as they become available. Even with oil prices falling, most apartment buildings are 92 to 95 percent full, according to the Williston Chamber of Commerce.

You cant build a vibrant community with services, quality of life and families when you have some of the highest rents and costs in the nation, says Shawn Wenko, Willistons director of economic development.

In Dickinson, where Whiting Petroleum is based, the price of a two-bedroom apartment at Sterling Groups Sierra Ridge was cut from $2,159 to $1,775.

I could see the quality of life improve for some people if they arent worried each month about how theyre going to make rent, says Justin Hammer of IRET, which owns apartment buildings in Williston and Minot.

HOUSING MARKET DOESNT TAKE HIT

North Dakota didnt take the hit that most states took in 2009. Its unemployment

rate never climbed above 4.2 percent, and in December 2013 it had the lowest unemployment rate in the country.

Some states, including North Dakota, have what everyone wishes they had: demand, says Keith Gumbinger, vice president of HSH.com.

North Dakota real estate agent John Knosalla says demand for homes exploded in 2013 and many sales turned into bidding wars with several potential buyers. Every offer was a competition, and thats just not typical.

Knosallas business has doubled every year for the last four years. In 2014 he closed on 148 homes.

The increased demand has also put a strain on carpenters, plumbers and electricians.

They are pining for framers, Knosalla says. New construction costs have skyrocketed because there is so much work and not enough time or people to get it all done. Tradesmen are naming their prices and builders just have to pay it.

STILL MORE ROOM

Many developers also say they are confident the states oil industry will not go belly up like it did during two previous busts in the 1950s and 80s.

Even with all the apartments being built and more homes going up, real estate companies still see room for more development.

We still, even with all were building, dont have enough housing in this region, Metzler says. GOMC

Bakken Extra

CHEAPER HOUSING COMINGHousing industry finally catching up with oil and gas boom in the Bakken

By Cory Dellenbach

I

Subscribe online at www.gomcmag.comFREE SUBSCRIPTION

I could see the quality of life improve for some people if they arent worried each month about how theyre going to make rent.Justin Hammer

Some states, including North Dakota, have what everyone wishes they had: demand.Keith Gumbinger


ARE ALLARE

Our operator worked hard all day. But what really made the project a success was the supporting cast. The service team who maintained the crane. The logistics team that planned the lifts. The safety team that ensured everyone was ready for, really, anything. And this team is part of a much bigger team, the ALL Family of Companies.

ALL Erection & Crane Rental Corp., an Equal Opportunity Employer

www.allcrane.com

www.facebook.com/GOMCmagwww.twitter.com/GOMCmagwww.plus.google.com www.youtube.com/GOMCmagwww.linkedin.com/ company/gas-oil-&-mining-contractor

JOINTHE CONVERSATION.

THE CAMARADERIE.

THE COMMUNITY.


enture onto the Gonzales Eco-nomic Development Corporations website, scroll to the bottom of

the home page and one thing prominently stands out: Theres a NASDAQ graphic list-ing the daily price for a barrel of crude oil.

Its blatantly obvious the small city in the heart of the Eagle Ford Shale lives and dies by the rich natural resource.

Gonzales is just one of many cities in southeastern Texas to feel the impact of the oil boom in recent years. Some cities are taking full advantage of their opportunities, while others are holding back, not wanting their city to come crashing down if the oil wells all of a sudden end up bone dry.

In Gonzales, the shale play which is 50 miles wide by 400 miles long has been a magnificent thing.

At $105 a barrel, it was great. At $50 a barrel, its actually still pretty great, Gonzales City Manager Allen Barnes says. Were very fortunate, we have some very large producers in our county and they seem to be doing pretty well. Our sales tax, every month its increased.

Gonzales, which is the second oldest city in the state and was the site of the first battle during the Texas Revolution, was a busy tourist town pre-Eagle Ford. Now, the play has proved to be a great supplement for the visitors who are entering the city.

Since Barnes took over his position at the city nearly four years ago, Gonzales population has increased by more than 40 percent, going from 7,237 people at the last census to about 10,000 (figuring there are 3,300 utility accounts at 3.09 people per household).

Gonzales, which is northeast of San Antonio, has 611 hotel rooms, including two boutique hotels, and a slew of new restaurants. The citys two largest supermarkets are thriving. Wal-Mart went from a D classification to A, and H-E-B nearly tripled the size of its grocery store.

Banks have experienced an influx of cash, and the local school district is struggling to provide enough classroom space for all its new students.

Its been a challenge to keep up with the oilfield, with services for our residents, Barnes says.

Barnes says Gonzales which is considered the eastern hub of the Eagle Ford has fared better than a lot of cities in the area because its city council took an assertive role in planning for the oilfield.

Any revenue that we get that is oilfield related, they go for one-time expenses. Theyre not for operating expenses, Barnes says. They may buy a police car, for example.

The city has kept oil-related money separate because its council understands the boom-and-bust cycle for oilfields runs about every 10 years. Gonzales isnt solely reliant on oil money.

When planning, Gonzales also made sure it restricted where man camps can be formed, and none are in the city limits.

Eagle Ford Extra

LIFE IN THE EAGLE FORDTexas communities continue growing, plan for future

By Greg Bates

VAt $105 a barrel, it was great. At $50 a barrel, its actually still pretty great. Were very fortunate, we have some very large producers in our county and they seem to be doing pretty well.Allen Barnes

Trailers housing drill workers line a city park in Gonzales, Texas, in 2012. The communities of Gonzales, Cotulla and Karnes City have seen big growth thanks to the Eagle Ford Shale play, even now with oil prices falling.

www.gomcmag.comexclusive online content, discussion forums,

classifieds, e-zines, videos, blogs, etc....

Barnes notes city residents seem to like having the oilfields in their backyards.

There are a lot of folks that became millionaires overnight, Barnes says. Theres one guy that someone told me makes almost $160,000 a day. That was at $105 a barrel, so the poor guys only making $80,000 a day now. I dont know if thats true, because you hear all the urban myths.

Its been an interesting start of the year for those who are working the Eagle Ford in Gonzales.

The life of the Eagle Ford for the past three or four years has been slow from about December to the first of March, and this year it hasnt been, Barnes says. I dont know how to interpret that, because usually in the winter time theres not a lot of truck traffic; theres not a lot of activity in the area, but the activity is still there. I dont know if these guys are trying to produce all that they can.

Cotulla: Almost tripled its population

Down the road 160 miles to the southwest of Gonzales, the City of Cotulla is also reaping the benefits of the Eagle Ford.

Cotullas population has shot up in the last four years from 3,600 to just shy of 10,000. During the day, it is estimated the population reaches 15,000-16,000, according to City Manager Larry Dovalina.

As far as the overall impact from its initial step, it probably tripled the size of our city, created all these infrastructure demands and needs that we ended up having to come up with, Dovalina says. In the process, we were able to start working on the quality of life in the community. Weve had some issues, but weve also had some good opportunities to get ahead.

The city is just 70 miles from the Mexican border and has changed immensely in seven years since Dovalina took over his post. Back then, Cotulla was hurting financially. However, thats certainly not the case any longer.

It was a small, rural community as many of them are across the country, and weve also got a small industrial component about 2 miles north of us and weve got a different refinery south of us, Dovalina says. We are sitting in a logistical hub where we benefit from I-35, which is a major trade transportation route between Canada, U.S. and Mexico. We sit right on there, so were able to take advantage of that and take advantage of the trucking operations that go through here, and so were reaping a lot of benefits.

The Eagle Ford has created numerous jobs, and new businesses are flourishing in town. In fact, Cotulla recently announced that in the last four years its had $1.5 billion in investments that have been done in about a 10-mile radius of the city.

The small town has also become a gold mine for the hotel industry.I think we became hotel capital of the Eagle Ford Shale, Dovalina says.

We have about 23 hotels that have been constructed and I want to say weve got three or four that are in the process of being constructed.

Karnes City: Seeking the right developments

Not every city within the Eagle Ford is jumping at the chance to add any type of business and have exponential growth. Karnes City, which is southeast of San Antonio, hasnt increased its population its steady at 3,000 people since the oil boom started.

Karnes City is trying to grow in an orderly manner and not react to the change. The citys long-term plan is to attract developments that will

sustain even when the Eagle Ford isnt around, says Karnes City Development Manager Ray Kroll.

Some things we welcome with open arms and some things weve worked very hard to keep out, Kroll says. We dont want the crew camps.

By comparison, Karnes County has grown significantly, adding a number of hotels and bars. In Kenedy, 4 miles from Karnes City, 20 hotels have sprung up in the last four years. However, Karnes City has not allowed rapid, quick developments to take place.

It would be available for the correct type of investment or development, but basically what this city wants would be single-family homes and entertainment opportunities and things like that, Kroll says.

Increased revenue is the main area that has been beneficial to Karnes City.Increased revenue means an increase in the number of people, so it

increases the amount of money the city must spend just to keep our head above water, Kroll says. Just because [an oil boom] happens doesnt mean a city is flush with cash. It takes an awful lot of money to keep up with the demands that are brought on by what were seeing. Its a tight rope that you have to walk on a daily basis.

The people of Karnes City seem to back the citys approach to being cautious.

Most of the people that are around here that are more impacted by it landowners, things like that look at it as another boom and bust, Kroll says. We were riding high for a while, now the price of oil has affected things drastically. Its kind of the wait-and-see attitude and no one has invested a great deal of money.

Dovalina thinks Cotulla can keep flourishing as a city well after the Eagle Ford has pumped its last drop of oil, which economists think might last for two decades. Its all about planning and being ready for the inevitable.

I think with good management, you can continue to draw positive numbers from sales taxes and hotel taxes and be able to invest them in an appropriate way without putting the citys finances at risk, and youll be OK, Dovalina says.

In Gonzales, Barnes likes the future of where his city is headed.I think its bright, Barnes says. I think the field cycles about every 10

years, thereabouts. I think that well see a climb to $65 and $75 a barrel and things will be pretty good. GOMC

Were able to take advantage of ... the trucking operations that go through here, and so were reaping a lot of benefits.Larry Dovalina


enture onto the Gonzales Eco-nomic Development Corporations website, scroll to the bottom of

the home page and one thing prominently stands out: Theres a NASDAQ graphic list-ing the daily price for a barrel of crude oil.

Its blatantly obvious the small city in the heart of the Eagle Ford Shale lives and dies by the rich natural resource.

Gonzales is just one of many cities in southeastern Texas to feel the impact of the oil boom in recent years. Some cities are taking full advantage of their opportunities, while others are holding back, not wanting their city to come crashing down if the oil wells all of a sudden end up bone dry.

In Gonzales, the shale play which is 50 miles wide by 400 miles long has been a magnificent thing.

At $105 a barrel, it

May 2015

Documents

Transcript of May 2015