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http://www.fortmcmurraytoday.com ... -and-pipeline-spill7 i1 U9 Z% F5 w2 D2 I
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 r4 t% \) ^1 O& x
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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.- X1 k( N" S* D1 s! j
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The 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.
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a6 d8 @) }6 v1 S1 GAn internal investigation found the explosion was a result of work being performed that was "outside of the scope of approved work activities."9 Z0 i: R. B3 [0 ~
4 ~% v& I; K. ^' }0 oThe 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. . y* p5 U3 Y. g5 n$ ~
* I5 f" g3 W2 X6 |4 r$ pIn its announcement Nexen said it is addressing safety gaps in part with refresher training on workplace hazard identification, increased site supervision and safety inspections. u# b9 [: z+ t
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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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* J9 U* W; d# a# r* p' N4 hThe 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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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."4 x) n0 N$ k; A. T5 J' u) c' U, s6 f
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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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, Q' j; Z- [! n6 f- O6 PThe 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. ; \6 j( Y- |# P' G% b0 \
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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. 2 K! K r5 Q+ B! R+ K% l I5 d
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- with files from Vincent McDermott |
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