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http://www.fortmcmurraytoday.com ... -and-pipeline-spill5 {1 _$ ~: H5 P: X( l1 T+ I$ E! r
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 H C( D. J, l( |$ 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., P* ~$ [7 }. W
3 B0 B0 D8 V- ~8 x! |+ V/ 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.8 \! K( e) S; ^5 ~
% A$ y s' I/ X5 D- uAn internal investigation found the explosion was a result of work being performed that was "outside of the scope of approved work activities."' |4 L7 N8 I# ~! ?8 R% [/ k
' c2 n3 J! L$ [* t' ]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. ! U9 |) g) L5 b1 Z0 V; t2 U
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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. ; n. X8 I5 Q7 X/ p) f
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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.
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' T: Q, d3 S4 Y" b wNexen 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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% G+ {# x/ B+ Z% ]7 GThis 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. " M# t( h& u8 n Y1 e( G: K
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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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- with files from Vincent McDermott |
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