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http://www.fortmcmurraytoday.com ... -and-pipeline-spill& d9 r$ w* L5 q% F2 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.% S& Z8 w! c7 O. ~
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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., D9 a3 i& g7 ?# \$ }$ M7 Q
9 O: f* w- w* l& H. o2 @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.6 m$ l4 N s5 N
( K( k. Q: e, g! f. h9 SAn 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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2 q5 o' Q- t& {% rThe 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. 8 Z% G2 x, r+ u- k4 b
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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. 9 S$ t6 |7 p) ?) J
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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. / Y& G; I8 L, g/ l% K! N
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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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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."* n Q; J+ J( Q% ~1 O% B/ ]
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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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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.
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% i Z. a) R+ v5 `+ i- with files from Vincent McDermott |
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