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http://www.fortmcmurraytoday.com ... -and-pipeline-spill+ j/ ]$ P, m8 ]0 T% }" t
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.
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, f+ Q0 u/ X5 Z E& }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.: F" v2 `7 U+ b/ O# j# P) ]
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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./ Z' o$ s* C* u! J9 r2 k
) G$ C* w3 X! Q; }1 n9 u; [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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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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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. 7 m z* U i: u @0 |- f3 S
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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., {3 ?- K( k, u: ~$ J# C
o, V- a! g2 t: X6 N) G5 g% GNexen 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."! D. l9 l8 }& n, d0 H
: u: A9 f. C9 j. Z* b7 K! rThis 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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' p* m1 F$ F: M. |( H) @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. ; e, t z2 \, C$ s; \
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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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# {0 u* F* Z. c& o2 F& W1 E- with files from Vincent McDermott |
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