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http://www.fortmcmurraytoday.com ... -and-pipeline-spill' k g8 o; l% H/ V( e3 R
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 C# I9 S. { J8 ~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, 2016.3 d3 R9 q+ g" t1 x: `0 I# X
( D( p& i% X& NThe 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.& O, u; N- A- D4 z3 ?2 t
U1 R$ K+ ]; g1 x1 xAn internal investigation found the explosion was a result of work being performed that was "outside of the scope of approved work activities."! B; n( \( J% Y; H6 X8 J
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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.
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7 a4 y4 \4 q+ `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 j& U, N1 v1 y- C' a
$ p' K7 I' L+ l; q/ L- ?( UThe 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.6 t( E: l3 |; }3 F! \; o3 |; V9 ^
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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."
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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. # ~2 J+ h9 T0 }* k
- N% `' [1 `* c+ h4 i! S4 cThe 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. / K$ d- T& T# ]# u, t p
6 R+ I; O% {' x6 s' d' i7 L$ q MIn 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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