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http://www.fortmcmurraytoday.com ... -and-pipeline-spill* e: s+ J# v9 G# Y( z+ H! d; \
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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. j: [" F/ R1 {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, 2016.6 Y8 y7 t! i0 s7 V7 r
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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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An internal investigation found the explosion was a result of work being performed that was "outside of the scope of approved work activities."" Z; Y' q, t1 W* g7 W
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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. 5 o! E6 }: J6 J& Q# T
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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. 8 e( e& N( d! c& u, G D0 o& U
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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. % X0 T- p0 n5 u0 G
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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.2 S9 r- T2 v( R. g
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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."; Y& R5 r- K p/ X g4 Q
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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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' ?- _, G$ u$ fThe 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. ! r2 G6 Y2 \" Y; D" C2 i
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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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