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http://www.fortmcmurraytoday.com ... -and-pipeline-spill( O/ Z) N' E. k7 L5 _
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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# `2 ]2 J6 Z+ \' w B) mThe 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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' [0 E8 Y) b! T* ~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.! ~, F5 J$ K+ j4 r% V
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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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* R3 x% X1 [ m; y/ KThe 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 O' w) r- n- L& I7 X" h
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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. 4 v. y- Q8 }( T# U2 m/ Q. r* L; m
6 e8 X: E# R, D/ L* p* T* X( a- mThe 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. 7 @6 u$ x. r7 T
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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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' |( g. z8 ~- }8 f4 qNexen 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."( L. y9 A% ^+ p+ q- ~; [, F
5 P' b' Q; N) v2 \2 `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. ) {* r& _) a0 N5 ]. w( i5 @4 b
7 ]# r& F: w# Y' |9 Q2 @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. H9 _9 w$ n5 `3 A6 `
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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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