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http://www.fortmcmurraytoday.com ... -and-pipeline-spill
( A" {& x. ]+ q5 Z( o! \8 W- }' j" Z: HNexen Energy will lay off about 350 workers from its Long Lake facility, following its release of results of internal investigations into a July 2015 pipeline spill and the January 2016 hydrocracker explosion.* R! b, m, t1 c# K
, o7 }, I& R3 {* z! n3 @3 dThe CNOOC-owned energy company will only be continuing its steam-assisted gravity drainage (SAGD) operations at Long Lake, after it determined a short-term repair was not possible for the hydrocracker unit, which killed two employees when it exploded on Jan. 15, 2016.) v3 }& D( p B6 s9 N/ Z
* a% \/ R; q/ r- ]' S) NThe facility's upgrader has been idling since then, and will be moved into winter preservation, with no estimation of when it will be brought back into service.& h3 ]: w, }& Q+ ]
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An internal investigation found the explosion was a result of work being performed that was "outside of the scope of approved work activities."
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% g/ K6 B1 k8 v6 n1 J0 N2 \9 MThe two employees killed, both Fort McMurray residents, were 52-year-old Drew Foster and 30-year-old Dave Williams. Foster was killed in the explosion. Williams, who was flown to the University of Alberta Hospital's burn unit hours after the explosion, died a week later. / |- _" E. j4 r0 w, |/ J
) [( @/ G5 h' h$ A, ~* K5 M3 k8 p2 `In its announcement Nexen said it is addressing safety gaps in part with refresher training on workplace hazard identification, increased site supervision and safety inspections. . D& q& k9 j# M; B8 x; ?1 p6 e8 Y; q! ?
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The decision to move to a SAGD-only operation was described as "entirely economic," and will result in about 350 staff layoffs, most of which will be completed by the end of 2016. % k" J9 E [* a, A" \
" W* h& o9 @8 g, uThe results of the investigations were given at a news conference on Tuesday by Nexen CEO Fang Zhi and Senior Vice President of Canadian Operation Ron Bailey." K3 ]3 V- i* A0 s. X$ a( R
& I. l6 @ u$ r3 x% zNexen also said it found the root cause of a July 2015 emulsion spill at Long Lake to be a "thermally-driven upheaval buckling of the pipeline, and the subsequent cooldown during the turnaround."
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7 m# ?1 w6 D6 g7 v( MThis was caused because of pipeline design incompatible with the muskeg ground conditions, and steps that could have been taken to mitigate the potential for buckling were not addressed.
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- }. x2 g1 T/ z# ~3 g8 l3 Z3 kThe spill poured up to five million litres of emulsion - a mixture of water, bitumen and sand - into surrounding muskeg. The spill may have been ongoing for up to two weeks when it was discovered in July 2015 by a contractor walking through the area. $ r8 Z6 J" p2 _5 g
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In August the Alberta Energy Regulator ordered Nexen to shut down 95 pipelines until the company could prove the pipelines could be operated responsibly. The suspension was lifted in September 2015. + j4 o+ ]9 D; k
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- with files from Vincent McDermott |
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