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http://www.fortmcmurraytoday.com ... -and-pipeline-spill
% j( t# }+ G7 f6 `1 b3 n7 I, y5 ENexen 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.
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The 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, 2016.1 g5 l X! X* g! F
$ J) g- q0 ]% A* 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.( y$ F$ F$ D) q; n R8 l5 [
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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.". C) N. s4 S1 F
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The 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.
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) w# C3 h3 v) H2 A* [8 yIn its announcement Nexen said it is addressing safety gaps in part with refresher training on workplace hazard identification, increased site supervision and safety inspections.
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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.
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The 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.- A( s: l4 o1 S6 _& S
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Nexen 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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This 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. ( A1 h4 D$ @$ c' \* a) I
$ A* C( n3 _3 e& i6 H% N 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. ! \4 |4 J; x z! j7 p4 ?8 U
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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. $ @0 k4 p/ b. s% x0 E/ c" q; A
- j/ L/ T' |6 Z! n2 ^- with files from Vincent McDermott |
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