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http://www.fortmcmurraytoday.com ... -and-pipeline-spill" h% D. o9 Y# ^* {1 H
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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" g! E4 c) j" p! C+ d9 XThe 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.% v: ?% [$ \ K& y3 j! V h
4 t6 s6 o: m, [7 fAn internal investigation found the explosion was a result of work being performed that was "outside of the scope of approved work activities."1 r4 N! E5 R* N( V1 i! r- p
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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. 0 S* [4 [! X( B8 {0 A {) C- C
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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.
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" W. p/ ]; W+ K% g' l$ P+ ^# n" yThe 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.
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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 y: r0 y9 x4 ]; ~" Q0 n+ p, M
; m/ i3 p0 x. bNexen 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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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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& x1 ^6 j9 s9 M; Z4 |9 h0 X$ VThe 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. ' o( P2 _+ M* L% ? d2 H2 x4 y' u3 V
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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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