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http://www.fortmcmurraytoday.com ... -and-pipeline-spill9 j P' u" T- m# m
Nexen 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.1 X/ @# w2 [3 @) g, i2 W4 P
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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.
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1 E _) N K6 k9 JThe 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.& F5 d+ {$ I J1 y$ l
* g& t _( t" C! z$ MAn internal investigation found the explosion was a result of work being performed that was "outside of the scope of approved work activities."0 u5 ]# y% q! O0 h9 ?4 D
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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. : Q: O w: s& B' F$ X
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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.
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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. % p; |; ^6 f7 b1 p$ P. v
0 p8 m7 ?: G7 H# j6 N$ A% x4 b8 WThe 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.
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6 C- y* c- a$ e' R( K0 m& PNexen 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.
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The 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. ; m6 u: Y& @( K/ A! 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.
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3 Z2 P9 h% [+ ^$ G) e6 w1 u- with files from Vincent McDermott |
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