The Core NewsFor employees, families and friends of Corval Group, Inc.

1st Quarter FY2018 Volume 29, Issue 01

In This Issue.....

A Message from our CEO .............. 1

Safey Message .............................. 2

Business Development Update ...... 2

Employee Spotlight ........................ 3

Project Updates ............................. 5

Employee Engagement Events......... 7

Community Events .......................... 9

Scholarship Winners ........................ 10

Letter from Our CEOA belated Merry Christmas and Happy New Year to all of you and your families. I hope you had a chance to spend Christmas & New Years with family and friends. I always like to recognize those serving in our military; especially during the holiday season. They serve our country and keep us safe 365 days a year; God Bless them and we thank them for all they do for the USA.

What a difference a year makes. Last year backlog was low and our customers were delaying projects. Today our workload is robust and we continue to see very good opportunities. Our Fiscal Year 2017 was very challenging with revenue at its lowest level in over 13 years. Although we did cost reductions, we felt strongly that our workload would pick up in the later part of the year. Making this “bet” meant we would not go through the level of cost reductions we made in the “recession” years. It was a difficult “bet” to make because of the numerous areas of the business it impacts. We are happy to report the “bet” is working out very well.

Although 2018 is shaping up to be a very strong year, we cannot forget the lessons learned over the last two years (some would say the last 30+ years). I discussed some of this in my article for last spring’s newsletter. The main learning for me is inconsistency; inconsistency in revenue, margin, work pursuits and performance. We talk a lot about being World Class and a great organization. This is impossible without consistency.

The one consistent area of our business we can look to as an example of World Class is Safety! We have made being World Class in Safety an obsession; Safety has become a whatever it takes mentality. We are not asking for this approach in 25 different areas, but are demanding it in five - Safety, Quality, Our People, Profitability and Customer Focus (The Corval Experience). We know if we can achieve World Class in Safety, we can achieve it in the other four areas. Let’s continue to demonstrate commitment to becoming a great organization by consistently delivering the Corval Experience to our clients, together.

Thank You & Work Safe!

Paul

Business Development - What’s Up?

Corval Goes GreenWe are moving into an environmentally friendly and ecologically

responsible organization to help protect the environment and sustain its natural resources for current and future generations.

In efforts to do our part,

The Core News will now be distributed electronically.

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Safety - Our Foundational ValueSafety Improvements and Growth – Portal SSA (Site Safety Audit):

As the industry grows so does the need for our safety tools, to maintain and improve our safety we need to be on the cutting edge of technology. We need to know “what’s happening” ”Where is it happening” “frequency of occurrence” and “we need to know now”. The SSA has a new feature, you are now able to generate reports at a project level from the SSA data captured on that project.

That being said we are only as good as the data we capture, when performing a SSA it is important to capture “what we see” “when we see it”. Identifying trends will allow us to get involved and help, our goal is simple, achieving our goal is not an easy task but if we utilize our tools to the fullest extent – “No One Gets Hurt”

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Business Development (BD) could be better known this past year as “Better Decisions”, as that is what we are making regarding clients and projects. Making these “better decisions” as they pursue work across the nation is Alfred (Bryan) Wright, Jonathon Tonneson and Whitney Childress.

Several tools are in place to aid in making these better decision such as a new CRM (Customer Relationship Management) system. This system allows you to track a client and their projects from inception to project award, at which time our cost management system (Viewpoint) would take over.

CAMP (Client Account Management Plan) is the tool used to screen, pursue and maintain clients with the potential of bringing with them good profitable work. Customer focus is brought to a high level as part of the Corval Experience.

Projects are put through a screening process to make sure they are a good fit for Corval, identifying safety, quality, profitability, requirements and opportunities. Once a project makes it through the screen it becomes part of the preconstruction process.

That’s a brief explanation of behind the scenes in BD. In future publications we will report on the clients and their projects which have been a result of these BD “better decision” efforts.

Remember, when you deliver the Corval Experience, you are doing your part to support BD as we try to earn more work with current customers and expand our extensive resume of success to help acquire new clients ones.

Business Development - What’s Up?

Email potential project opportunities to:

Biz-Leads@corvalgroup.com

Everyone at Corval has a role in winning work

Employee Spotlight Interview

What are you most proud of?

The little person that my 4 year old daughter is turning into and her daily accomplishments.

What is most rewarding about your job; what makes it all worthwhile?

Being part of the new business and being able to help it grow and succeed!

How does a normal day look like at the office?

Starts with a quick review and addressing of email, followed with meetings with the teams and getting the boots dirty in the field, lunch and then rinse and repeat.

What is your favorite food of all time? - Crawfish!

What is your favorite movie of all time? - Days of Thunder

Who would you rather cheer for, Green Bay Packers or Minnesota Vikings? Houston Texans! But, if I have to choose – Green Bay

Which is your favorite part about working for Corval?

I really appreciate the investment that the company puts forth to onboard employees and the ongoing discussion of training and growth for the future.

Why did you first choose to work for Corval and why do you stay?

The excitement conveyed by Cooper Cleveland in my first discussion of the company and the reason I stay is because of the continued support to help me achieve my goals.

What has been your favorite project at Corval?

Well, I cannot choose; I am partial to both Corpus Christi Projects.

Is the glass half empty or half full?

It’s full, just topped off with air!

What’s the one thing about you few people know?

I am a Son of the Republic of Texas, and my great-great-great-great…… grandfather was one of the signers of the Declaration of Independence of Texas.

Before working at Corval, what was the most unusual or interesting job you’ve ever had?

During my tenure at BP, I was an active member of the BP Americas Response Team, which was an incident response team that supported activities in North America. On April 21, 2010, my phone rang and I was called to support the BP Gulf Spill. Very excited about the opportunity, I said when do I leave and where do I need to go!

I ended up being stationed in Mobile, Alabama for 4 months in the role of Deputy Operations Section Chief with oversight and leadership of all Mississippi shore protection and clean-up activities. I had a great support staff and together we managed the day-to-day logistics of onshore clean up teams made up of over 3,500 people and over 100 boats assigned to deploy and recover shoreline booms. I was very proud to have been working for BP during that time, in that role and was very fortunate to have met a lot of great people - some that I still keep in touch with today.

By Communications Committee, Inc. on Monday, Jan 15, 2018

Our employees are what truly make Corval a great place to work. We have some pretty amazing people with different backgrounds and personalities who have a real passion for what they do. What better way to show how we, at Corval, help make this company a great place to work, than to have our own employees share their stories? We are kicking off a quarterly interview series where we ask our employees about what role in the company they play. We want to give you the ability to hear right from them, in varying roles, what gets them excited about Corval and makes them to come to work each and every day. First up is Michael at the Magellan and Plains All American projects in Corpus Christi, TX.

Michael Pope, Senior Project Manager - Corval Builders & Erectors, Inc.

Michael joined Corval Builders & Erectors in September, 2017. Michael is an experienced construction operations professional with more than 15 years of experience in all phases of project implementation.

Michael is responsible for project safety, quality, budget and schedule performance. He coordinates information flow among key stakeholders to ensure a smooth project from start to finish.

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Employee Spotlight Interview

A trip of a Lifetime......- Shane Logue

I was contacted by the Pacific Aviation Museum / Warbirds West to participate in a radio controlled air show commemorating the 75th anniversary of the attack on Pearl Harbor and the battle of Midway. It was scheduled for the last weekend of May at Pearl Harbor, Hickam Field, Hawaii. I was contacted because I have most of the aircraft carrier based giant scale aircraft of WW2.

I enlisted two of my friends to help fly my planes and bring one of their planes. We crated and shipped total of 6 aircraft to Hawaii. The museum flew us round trip to Honolulu, covered all our expenses for the 6 day trip, and provided a pass for all the historic sites on the island. We had to get Military clearance to go on the base unescorted.

We spent three days getting the planes ready and practicing for the show. Friday night the Museum put on a Luau in the main hanger at Hickam Field. We stayed in Hanger 79 during the day and were able to get to know the guys that do all the restorations for the Museum. The 100% choreographed event took place all day Saturday/ Sunday and was attended by over 14 thousand people.

To be part of this event and stand in the hanger where our part of WW2 started was one of the highlights of my life. And to take it over the top, we have been asked to participate in the event next year.

(Shane Logue, Center)

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Project Updates Project Hy-Vee Short Cuts Expansion, Chariton, IACorval has contracted for the expansion on the Hy-Vee cold storage distribution center located in Chariton, IA. Our scope of work is to supply and install the refrigeration system in the expanded facility which includes the supply and installation of 14 ammonia evaporators, 1 ammonia compressor, and all the associated valves and piping, expected project duration is six (6) months. We utilized CADWorx, a 3D modeling software, to design the system for prefabrication. Of the more than 3,600 feet of ammonia piping, around 3,300 of it was fabricated off site in our pipe fabrication shop in St. Paul, Minnesota. This included everything from the mains and branches to the valve groups and drops. Joshua Tinucci is the Project Manager and Ron Begnoche is Foreman.

Photo of our rooftop piping which includes all of our mains and valve groups associated with the evaporators in the space below. We utilized MIRO pipe supports and Parker R/S valves.

Photo of large evaporator units with four fans. Galvanized drain lines were installed from the drain pan to hub drains located throughout the facility.

Fabrication Shop Changes for 2018If you have walked into the Fab Shop recently, you may have noticed some changes. Travis McKenzie led an effort to reconfigure the shop layout to increase work flow; Jon Payton, Adam Howard and Joe Paleiwitz made it happen. With the modifications, raw materials now have their own path to the cutting tables. This allows material to be sent easily to the bays for fabrication and then loaded onto the trailers, which can now be pulled right into the shop.

This restructured layout has already brought in the opportunity for new work. One of the main customers of the Fab Shop, Flint Hills Resources, asked if we would be able to bid fabrication for 580’ of continuous jacketed pipe and have it hydro tested in large sections. Last year, we would have had to pass up this type of opportunity or give them a bid at a much higher price than what we could provide today. However, with the Shop changes, we were able to bid the work, much to the satisfaction of our customer.

Regarding Quality in the Fab Shop, Joel McCabe is working with Travis and the shop team to implement a number of new or modified practices for 2018. He is visually checking in all of the material and comparing it with the material requisition. There will be no more questioning what was sent from the vendors. Joel will also be checking Material Test Reports (MTR’s) to ensure we are receiving the right material, creating a mapping weld log for every project, and implementing a new process for welder qualifications.

All these changes will make the Corval Fabrication Shop better able to deliver the Corval Experience through improved Customer Focus, Quality and in the end, Profitability.

Looks like a bright future for the Fab Shop!

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Project Updates

Project Updates Sanish Gas Compressor StationThe Sanish Gas Compressor Station, located near New Town, North Dakota is moving along very well in spite of the bitter cold weather.

The station consists of six 1500 HP compressors and is similar in design to other stations Corval has built for ONEOK. This station however, is being financed by Paradigm Energy Partners and will be operated by ONEOK Rockies Midstream once construction is complete.

Currently, the compressor foundations have been completed and the compressor building foundations are about 90% complete. The underground piping is being installed and the tank farm containment will begin in mid-January. The steel and piping are currently being fabricated and installation will begin in March.

Robbie Mott, CB&E Sr. P.M., after completing the Phillips 66 Tank project in Texas, assumed the role of Project Manager. Lindsey Olsen is the Engineering Manager and Jim Quist recently took on the role of Construction Manager.

The project team is focused on establishing a strong safety culture as construction ramps up. With high expectations for writing SPOT’s, auditing THA’s (Task Hazard Analysis’s) and performing SSA’S (Site Safety Audits) – this team is focused on the goal of a jobsite where “No one gets hurt.” They are also further reinforcing a culture of collaboration around safety and beyond with an attitude that “they are each other’s keeper.”

Minneapolis Pipefitters’ Joint Apprentice Training Committee (JATC) facility - Addition & Renovation ProjectThe Minneapolis Pipefitters Union has chosen CCI to manage the design and construction of their training center expansion in Brooklyn Park. Corval has had a relationship with the Minneapolis Pipefitters since 1921. Our passion for this organization runs deep as Larry and Peter Jordan are both out of local “539.”

The JATC Addition and Renovation project incorporates a brand new 9000 square foot, 2 level addition complete with in-floor heat, roughly 20,000 square feet of new mezzanine lab space, a new BUR system on the existing building, 5 brand new classrooms, a wide range of new mechanical equipment, a geothermal system, a new passenger elevator, two new bathrooms, an interior crane, and new welding booths with a fume extraction system.

We broke ground at JATC on January 2nd, 2018, and the project is now in full swing. We are currently working on site grading, drilling wells for the new geothermal system, demolition of the existing slab and structure, and prepping for concrete footings and precast.

Dustin Gilbertson, Project Manager and Michael Moening, Assistant Project Manager. The completion date is targeted for late this summer.

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Employee Engagement Employee Engagement

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Employee Gri l l OutThe St. Paul office braved the rainy weather for a summertime grill out. A few employees went on to watch the St. Paul Saints defeat the Winnepeg Goldeyes, 10-4. A big thank you to our grill master, Peter Jordan!

Water Drinking ChallengeLindsay Boenisch, Dan Marnach and Andrew Bartlett met their water oz. goals every day during the month of June, winning Corval totes filled with an EZ-Cooling towel, Bluetooth speaker, Camelbak water bottle, and other healthy goodies.

7 Million Hours, No Lost TimeCorval celebrated a major safety milestone this year, reaching 7 million hours without a lost time injury. A celebratory luncheon and awards presentation was held at the corporate office recognizing employees for their outstanding Safety performance.”

Corval Group’s Employee Engagement Committee continues to plan fun, meaningful events for employees in and outside of the workplace. Read below about a few of Corval’s recent events!

Annual Family PicnicDespite the rainy day, the annual family picnic was another success this year. Corval employees and their families enjoyed live entertainment, great food and games!

20th Annual Corval Foundation Golf Tournament

Corval held their 20th Annual Golf Tournament at Midland Hills.

What a beautiful day and fantastic turnout!

Thank you to everyone who helped make this event such a huge success!

Employee Engagement Employee Engagement

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Corval Holiday PartiesCorval employees celebrated the holidays with friends, family and food. The corporate office recognized service award recipients of 5 years, 10 years, 15 years and 20 years!

Spooky Potluck Cook-OffThe St. Paul office hosted their 3rd annual Halloween-inspired potluck cook-off. Judges Paul Jordan, Peter Jordan and Dick Poser picked their favorite dishes, check out this year’s winners below!

1st place winner, Pam Johnson: “Sweet n’ Spicy”2nd place winner, Katie Gamroth: “Zombie Brain”3rd place winner, Allison Reinbold: “Skewered Eyeballs”

Corval in the Community... Corval in the Community...

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2017 Rockin’ The BakkenNot everyone wakes up on a Saturday morning bright eyed, eager to rake sand and wrestle 50 gallon barrels into position after working a 60+ hour week with little notice. But for a large number of Corval’s CB&E R&M crew from the Williston, ND shop, that’s exactly what happened the weekend of August 19th & 20th of this year! Corval’s Williston R&M group were among the sponsors of the 2017 Rockin’ the Bakken Barrel Race this year in Ray, ND when Carl and Jon Karg received calls for assistance at the event. Not ones to miss an opportunity, Carl and Jon quickly made a few phone calls, and had several crews of R&M fellows, decked out in Corval gear, lined up at the event assisting in raking the sand for the arena, setting those heavy barrels in place for the racing events, manning the ticket booths and the concessions, and being seen providing a helping hand anywhere they were needed. Many of our crew members are from large ranches and farming communities, so those who were not familiar with barrel racing and horses were quickly educated by their crew mates. Overall, Corval was well represented at a great community event, and the crews all had an awesome time as well.

The Rockin’ the Bakken Campaign initially began in May 2008 by the Williston Basin Petroleum Conference to promote Williston’s involvement in the Bakken oilfield. Since then, the slogan has been registered as a federal trademark of the Conference and used in many events to promote Williston and neighboring cities of the Bakken oilfield. The Rockin’ the Bakken Barrel Race in Ray, ND was Stop #60 this year of 66 stops, covering 6 states. The hosts of the event, CN Ranch & Performance Horses, in conjunction with Outback Barrel Racing Association have been consistently holding this race since the Rockin’ the Bakken Campaign began in 2008. The group saw this as an excellent way to bring about wider exposure for the Bakken oil industry, vendors and lease holders alike, and promote participation in a local barrel race closer to home. So far it has worked out very well for all involved!

School Supplies DriveCorval held a back-to-school school supply drive with the Lutheran Social Service of MN (LSS). Every child deserves to start their school year off right and Corval employees helped make that true for kids in Minnesota.

Fiona’s Hope Calendar ProjectCorval held a back-to-school school supply drive Fiona, daughter of Stephanie and Joe Palewicz, was just 19 months old when she passed away from complications due to pulmonary hypertension after a second open heart surgery. The Palewicz family wanted to give back to others who were going through similar situations and founded Fiona’s Hope, in honor of their daughter. Corval was happy to donate to such an important cause. To learn more or donate/purchase calendars, visit www.FionasHope.com.

Lobelville, TN School District Corval and Pyramid Project employees donated $1,900 to the local school district in Lobelville, TN. The funds were given to underprivileged families in the community for the holiday season.

Feed My Starving ChildrenSt. Paul, MN office volunteered at the Feed My Starving Children (FMSC) organization yesterday. We helped pack 150 boxes full of meals that will be shipped to malnourished children in Haiti - that’s 40 more boxes than last year! Those 32,400 meals will feed 89 kids for a year. Each meal costs less than a quarter to make and more than 90% of total donations goes directly toward feeding kids.

Corval in the Community... Scholarship Winners

Upcoming EventsCorval Group’s Employee Engagement Committee continues to work hard to bring employees more fun, meaningful events in and outside of the workplace. Check out the upcoming activities we have planned this year:

• Red Cross Blood Drive - 1/31/18

• Flahertys Bowling - 2/22/18

• Polar Plunge - 3/3/18

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2017 Corval Group Scholarship WinnersCongratulations to this year’s scholarship winners; Allison Mathwig, Sam Nordstrom, Drew Biffert, Grace Dougan and Frances Patt! Corval shares in your excitement and hopes the money will help in your pursuit of your degrees. Best of luck on your future education!

Allison is attending Winona State University this fall, studying Nursing.

Sam is attending the University of Minnesota, Twin Cities this fall, studying Political Science.

Drew is attending North Dakota State College of Science this fall, studying Land Surveying / Civil Engineering Technology.

Grace is attending the University of Minnesota, Twin Cities this fall, studying Political Science and Spanish.

Frances is attending Creighton University this fall, studying Accounting and Finance.

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Corporate Headquarters1633 Eustis StreetSt. Paul, MN 55108-1219P 651.645.0451www.corvalgroup.com

About Corval GroupEstablished in 1921 and based in St. Paul, Minnesota, Corval Group does more than simply build facilities and mechanical systems. Our fully integrated array of construction, fabrication and business solutions; Corval has been delivering bottom line results to ensure owners achieve business goals for more than 95 years. Building Confidence is more than a motto; it’s nearly a century of delivering results and saving clients millions of dollars/profit.

MARKETS SERVEDPetrochemical • Industrial Manufacturing • Food & Beverage • Power & Energy • Oil & Gas • Service & Maintenance

SAFETY, QUALITY, ACCOUNTABILITY, INNOVATION & INTEGRITY

AN AFFIRMATIVE ACTION, EQUAL OPPORTUNITY EMPLOYER