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http://www.fortmcmurraytoday.com ... -and-pipeline-spill# B9 ]: I& c' O4 }/ E
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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( `8 ^+ D; s: r6 D2 k A* UThe 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.% s% [; U8 d! t7 e0 J, W6 T
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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."
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' q Y+ F0 ]# fThe 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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3 O2 |+ Q1 Z* OIn its announcement Nexen said it is addressing safety gaps in part with refresher training on workplace hazard identification, increased site supervision and safety inspections. 0 R- [, z1 E$ s8 e( j+ e) y& r
0 q' c% S0 [! I( x3 |& g+ lThe 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. 0 ^- J! ]& r: [4 e, \
0 @( v& w- r$ o# t6 y* dThe 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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$ e0 K% b, R0 XNexen 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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# P+ F) x& d: [9 SThis 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. 5 F2 C9 p' Y7 g9 t. h/ K3 ~4 V# J
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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.
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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. 0 P" D7 K2 u5 e- e
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- with files from Vincent McDermott |
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