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http://www.fortmcmurraytoday.com ... -and-pipeline-spill
3 S! R* h2 v) r0 | e* h" h8 gNexen 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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3 i5 s8 ^5 X2 Y- e2 g, l- z# @9 P; }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.% U7 e5 J0 m9 q* X
1 c* I- V! `1 N" 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.
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; ~# ^2 c' X7 [) D# @$ H9 T* jAn internal investigation found the explosion was a result of work being performed that was "outside of the scope of approved work activities."6 P- r: T9 C3 H* x: S
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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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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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/ @+ B8 E! h0 Q2 `5 |% u4 @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.
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* }% s8 t/ `( }9 O/ E3 y/ FThe 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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( u: k" a: j6 }; kNexen 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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) P4 \9 o1 d2 l- NThis 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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$ o. G; } p& c. x+ FThe 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. 4 _9 _0 C0 O' b
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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. * X$ S. }- {$ x, I. E* m, V& j
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- with files from Vincent McDermott |
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