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http://www.fortmcmurraytoday.com ... -and-pipeline-spill. ]; B% N7 ?5 ?: L5 M- l
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.6 n* J5 l2 x/ B9 ~: a; Y3 N
3 q1 I( x* Y T$ k$ U9 P" eThe 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, 2016.8 _+ Z- h6 I* F, R
( L) y: K: _8 ^0 u5 I4 ZThe 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.2 g( o% C& w* w0 Q
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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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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. + r$ \ ]* _) u7 g0 h' m( D$ V
" w4 o, L* j" C7 WThe 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.! Z! K/ \" O. U7 g& `5 q7 L; y4 H
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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.". S4 U0 D( F3 S6 r0 w, X
% t* w% E2 ]" W& V* d/ ?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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- i4 r2 I% U: u+ o% 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. 2 ]( V$ @3 B& n; {
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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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