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http://www.fortmcmurraytoday.com ... -and-pipeline-spill L2 R% x3 ~3 |3 Q
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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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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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.* d6 l# O3 N4 s, ]/ n, z6 r, _
- `9 H$ p1 K0 h; x" ZAn 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. : w- c& G8 h, N' b: X! A
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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 h7 x T5 Q8 E
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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. . S! A: j* W. u$ k) c8 a0 J. b
2 U' w0 Y& ]0 [! z; h; o( _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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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.": K' l* R3 {- U2 \* s( J3 \, t
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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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* M* \% n8 l1 O2 rThe 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. 9 u0 E* e9 q* W# U0 P+ q
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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. / s! A) E6 s& s" d) m
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- with files from Vincent McDermott |
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