MBiz

"There would be people with investments and so on that were obviously feeling that problem, but if you were employed you weren't seeing the potential of your job going away," he says. "The community, for the most part, was just coming along the same as before. I truly attribute that to the oil industry being in a position of growth at that time." Oil was discovered in Manitoba in 1951, and Virden calls itself the province's Oil Capital. Combined with outlying areas, it's home to the bulk of drilling in the bountiful southwestern portion of the province.  Manitoba is unique in the industry in that an estimated 80% of oil and gas rights are owned privately (freehold), with the rest held by the Crown. Some freeholders have moved away, selling their farmland but keeping their mineral rights. However, the new landowners own surface rights, so every oil well planted on their property brings a yearly payment, from $2,000 to $3,500 per well. Oil companies are basing their 10-year outlook on prices of $50 to $60 a barrel, but current trends are at about $90 a barrel, and that bodes well for the town. "There is a consistent employer in our community and it's not going to go away, not in the next 10 to 15 years," McConnell predicts. Winnipeg-based Tundra Oil and Gas Ltd. – Manitoba's top oil producer – has a field office in Virden that oversees operation of about 2,000 wells. Owned by James Richardson & Sons Ltd., its foundation donated $1.5 million for Virden's new $17-million recreation centre, Tundra Oil and Gas Place. as increased need for housing, infrastructure and workers for service industries.  A new hotel just opened and another is planned. There are also new businesses such as restaurants, but "they're not paying oil-field prices for staff," McConnell says. Virden created a 40-lot subdivision, which sold out within the past five years. A new 30-unit seniors complex opened last year and quickly filled, which eased the housing shortage since those seniors put their homes on the market. However, housing prices have climbed to an average of more than $200,000. "It's a crisis in affordability," McConnell says. "We have people who want to come here to work, but they can't find a place to live. "And not every industry pays the same as the oil industry … but the people who want to buy a home here are going to be paying house prices based on the oil field." The town is reviewing its development plan and zoning bylaws to make it more attractive for the private sector to build new homes.  It wants to see more multiple-family rental housing, built on infill property so existing infrastructure would be used. And it's seeking help from the province to replace its sewage-treatment plant. McConnell says the town is working hard to ease any growing pains — after all, the alternative is not having growth. And he's optimistic about the future. "We're all happy to have these challenges," he says. "I think on a going-forward basis, quite honestly, it's going to work out fairly well." www.virden.ca The agricultural industry has also been able to rely a bit more on their commodity prices, which contributes to confidence in the local economy. Virden's population has grown from 3,010 in 2006 to an estimated 3,200, but quick growth has its challenges, such These days, the oil business fuels private jets. Manitoba oil production marks new records: • 78 new wells were drilled in 2011, 5 up 12.9% from the previous record of 512 in 2010. • anitoba hit a production record M of 15 million barrels during 2011, a 27% increase over 2010. • he value of oil production in 2011 T was about $1.3 billion, a 56% Western On the positive side, McConnell says most people in the community didn't feel the pinch of the global economic downturn in 2008 and '09. increase over the $879 million value in 2010. • rovincial revenues from the oil P industry (royalties, production taxes, lease sale bonuses, rentals and fees) were $42.4 million during 2011, up 55% from 2010. • ross royalties payable to freehold G mineral owners were estimated to be $217.9 million in 2011. • urface rights owners received S about $34 million in 2011. • n 2011, Manitoba's average crude I oil selling price was $91.62 per barrel, up from $75.74 in 2010. (Source: Manitoba Petroleum Branch) Western Boissevain & District Chamber of Commerce Brandon Chamber of Commerce Carberry & District Chamber of Commerce Cypress River Chamber of Commerce Deloraine & Area Chamber of Commerce Elkhorn District Chamber of Commerce Melita & District Chamber of COmmerce Souris & Glenwood Chamber of COmmerce VIRden & Area Community Chamber of COmmerce Waskada & Area Chamber of Commerce New & Noteworthy >> In October, Brandon's 2012 Best Boss Award went to Amy Noto, nutrition services manager at Rideau Park Personal Care Home. Noto works with about 20 staff members who nominated her for recognition. The Brandon Chamber of Commerce and Western RHA Mental Health Services give the award to bosses who promote mental health in the workplace. >> Cando Contracting founder Gord Peters is the recipient of the Brandon Chamber of Commerce's prestigious business builder award. Peters, whose company was featured in the debut issue of MBiz in June, was recognized for building the company from a two-employee operation in 1978 to a $50-million concern with more than 300 employees today. More than 150 employees are also corporate shareholders, thanks to an employee ownership program created in 1996. MBiz November 2012 45

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