Gas exploration keeps Austin Construction busy cooking on all burners

If you happened to catch Mike Austin and his crew at work on a Talisman Energy natural gas project, you can tell that everything has been planned down to the smallest detail, the maneuvers of the equipment appearing synchronized, almost choreographed. The air is charged with energy, workers and machines moving knowingly toward clearly set goals. There are no wasted efforts and no wasted time, either.

Mike Austin used to be an upstate New York full-time dairy farmer until the day he and his father decided to give construction a try. With a fleet of two machines – one backhoe and one truck – they started doing residential excavation work. It didn’t take too long for Austin Construction to grow, however, and to build a solid reputation, too.

In early 2000, gas exploration and drilling really took off in the region with new technology allowing for more effective natural gas exploration of the Marcellus Shale, a geographic formation beneath the ground that covers 54,000 square miles in the Northeastern United States.

Campbell, NY-based Austin Construction was ready to take advantage of the site preparation work generated by it. Nobody was too surprised when in 2006, Austin Construction went into an arrangement with Talisman Energy, a large and successful natural gas exploration and production company. Today, Mike Austin employs 65 to 70 people, owns 40-plus pieces of CAT equipment and moves with ease between operating the controls of a motor grader, studying complex drilling pad site plans and strategizing about his firm’s future.

“I’m a link in a chain,” smiles Austin, still refusing to take his achievements too seriously and stressing, “I love what I do, and I was raised that way, you don’t stop until the job is done like it’s supposed to be done.” Describing the unbelievable demands of the type of work involved in preparing sites for gas exploration, Austin minces no words, but at the same time, seems to relish the challenge. “It’s often a 24/7 job, working Saturdays, Sundays, whatever it takes; I get up at 3:30 AM, maybe later in the winter.”

Natural gas – a primer.

Often described as the cleanest fossil fuel, natural gas is a valuable, albeit non-renewable resource, consisting primarily of methane. From gas exploration – determining the areas where it is geologically likely that gas deposits might exist – to gas marketing, when somebody turns the knob on their gas stove to cook their meal, there are many stages in the entire process and they all have to be carefully planned and implemented.

After successful exploration, a step which in general involves geologists examining rock cuttings and samples obtained from irrigation ditches and wells and then using seismology to perform other tests, comes extraction. In this particular case, natural gas is extracted from the shale by a process called fracking, which involves pumping deep underground a water-based sand solution to break apart the rock formation and release the gas. Next comes production, when natural gas is processed to have almost all other materials other than methane removed; then, transportation, done by means of pipelines; storage, which is a tough job due to the low density of natural gas; and then, distribution.

Actually, although “exploration” is listed as the first step, a lot had to be done before exploration can even begin. The companies performing natural gas extraction must apply for permits to the DEP, Department of Environmental Protection, and post public notice of their intentions; landowners as far as 1,000 feet away from the planned drilling pad have to be notified; water in the area is tested for quantity and quality, to compare with after-drilling results. Last but not least, leasing agreements must be negotiated with the owner or owners of the land under which gas is suspected to exist – whether the owners are private citizens, a company, state or federal government or in some cases, a combination. 

What’s the timeframe of a typical natural gas extraction project? There’s never going to be a “typical” project, each one comes with its own set of surprises and challenges. The regulatory stage, for example, can take weeks, or it can take months; the site prep, days to weeks; drilling, weeks to months, and fracking, days to weeks. One thing’s for sure, though, when you see all the steps, all the different groups, offices, interested parties, and all the time that’s involved in natural gas exploration, you begin to realize the tightness of the “window” a company such as Austin’s has to do their part of the process, and to understand why Austin maintains that, “The biggest challenge is scheduling!”

“A link in the chain”

Austin Construction’s work begins very early in the game – “When the permits are done, we have to be ready to go,” says Austin, “When the drill rig is ready to start extracting, my crew has to have the pad ready or Talisman will incur a lot of delay and added costs.” 

The road to the drilling pad site and the pad itself are actually built by Austin’s crew at the same time. If you keep in mind that Austin Construction has many jobs going on, each one with several tasks being performed simultaneously, it becomes clear that he needs to count on a large fleet and it goes without saying, no downtime is allowed.

It takes a multitude of equipment ranging from excavators and haul trucks, to a fleet of dozers and excavators to build a typical, 400’ by 500’ pad that cuts into the ground an average of 20’ for example; and in the meantime, another crew is busy logging, clearing the woods and making the road. While at times Austin takes advantage of Milton CAT’s diverse rental fleet, he’d rather buy new CAT equipment, and later trade or sell it. “Their equipment has good resale value and even more so when you have the maintenance information well documented,” explains Austin, and he adds, “The customer service agreements help a lot to prove that the services were done correctly, and at the right time.”

In his quest for uptime and equipment performance, Austin takes advantage of the comprehensive maintenance programs and advanced technology offered by Milton CAT – Customer Service Agreements or CSAs, Product Link and the Service Solutions Center. “Each preventive maintenance CSA is based on the customer’s operation and needs, and that’s exactly what we did in Mike’s case,” explains Milton CAT salesman Joe Parks, briefly describing the different options that range from the “Do It For Me” where Milton CAT performs all maintenance and repairs, to the “Do It With Me,” plan where the customer performs a part of the service and Milton CAT is responsible for the balance.  

Supporting the implementation of Austin’s CSAs is the Milton CAT Service Solutions Center in Milford, MA, a fully staffed monitoring resource that works as a virtual fleet manager. Connecting Austin Construction’s equipment with the Service Solutions Center is Product Link, a wireless system that transmits vital machine information including hours, location and performance data via satellite. According to Parks, Product Link hardware comes standard on all CAT 2008 and newer larger construction machines as well as in most forestry equipment, and a web-based application called Equipment Manager or EM gives the customer the ability to review real time information uploaded by Product Link as well.

As Parks remarks, “In the case of Austin Construction where every member of the crew has to be completely focused on performing a task on a tight schedule and downtime is absolutely not an option, it makes sense for us to take care of all the preventive maintenance activities.”  And Parks concludes, “Whether that implies cutting-edge electronic support or on site, expert hands-on service, the onus is on Milton CAT to perform it.” 

Even after the gas has been extracted, processed, stored, distributed and marketed, Austin Construction cannot have any downtime. Today’s strict legislation requires restoration, which means that the site must be returned as close as possible to its natural state; mounds of dirt and rocks are moved and flattened, grass is planted, trash and debris are picked up, and any telltale sign of the massive machines and trucks having operated in the area is as erased as it possibly can be. This is also Austin Construction’s responsibility and planning for it begins as they are excavating the site to build the pad – “We make sure that the crew understands that the neater we keep things, the easier it will be to handle restoration at the end.”

Trust is a renewable resource.

Listening to Mike Austin talk about the robust, time-proven relationships on which his business is based, one term keeps coming up, again and again – trust. The trust Austin puts on his crew, the trust Talisman Energy has in Austin and the trust between Austin and Milton CAT seems to get stronger as it gets tested. A realist, Austin emphatically states, “You have to look at the big picture and be willing to accept that it’s a give and take,” adding, “I couldn’t do this alone, I need good partners and I completely rely on them.”

Whether it’s his long association with Chris Robertson, Talisman Energy’s on-site supervisor, his 10 years of working with Milton CAT equipment sales representative Joe Parks, or his rapport with his employees, knowing that he can completely count on someone and being himself transparent and completely accountable seems to be the only way Mike Austin is able to function. He actually comments, “The one time I get unglued is if someone disappoints me.”

“Working with Austin Construction has been a good business decision for us,” says Talisman’s Chris Robertson, who chuckles as he describes Mike Austin as a “Johnny-on-the-spot” who’s always there and ready, when and where you need him. Robertson mentions Austin’s rapport with Milton CAT as an advantage for Talisman – “Mike seems to be able to get from Milton CAT whatever he needs in terms of equipment and support, and in the end, that helps us.”

How does Austin describe his relationship with Milton CAT? He sees it as a two-way street. “They take care of me; they support me, usually, above and beyond, so we don’t have downtime; but I don’t cry wolf, when I say I need something it is because I need it.” And, he also takes it further than a mere customer to vendor connection – managing a thriving but exacting business includes staying ahead of constantly changing regulations and Austin has learned to delegate whenever it makes sense. Emissions regulations is one of those areas; he knows compliance is a moving target and counts on Joe Parks to help make sure he stays where he should be.

Many Austin Construction employees have been with the company ten years or more. They know they work for a demanding but fair boss, who expects them to do a good job and who says “It’s very important for me to provide my people with the best equipment; whatever they need, they get from me,” and also, one who’s ready to help, jumping behind the controls of a machine or operating a chain saw.

What’s next?

Austin Construction is extraordinarily busy these days, supporting

Talisman Energy to take full advantage of the region’s larger-than-anticipated natural gas resources. “It’s a year-round job, winter included, and we’re a one stop shop, handling everything from building the roads and the pads to hydro seeding      and mulching – we don’t sub anything!”

A savvy businessman, Austin knows that he needs to remain ahead of the curve, ready to support his customer as they move to take advantage of new opportunities. “I am prepared, and I can move in any direction,” is his confident answer, and it’s well-earned confidence, built on experience. “The only thing that can stop me? My wife!” And with a grin, the unstoppable Mike Austin goes back to work and to think, ready for anything that comes his way.