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http://www.fortmcmurraytoday.com ... -and-pipeline-spill* W" S! d$ b2 G& n+ { K- ^
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 Q, |+ M9 } y" z3 U1 A
) R0 g& ]) E* |/ OThe 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.$ a$ H/ P% C; v' D' b2 p
- G1 A( R4 _0 g7 G$ \" P$ vThe 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.6 r" o* Y8 x0 e$ Z1 s
7 h+ m: Z2 I! h" C( R8 j. `An internal investigation found the explosion was a result of work being performed that was "outside of the scope of approved work activities."$ y8 c3 E% |6 z+ @# E8 e
- p; K6 P f& s4 N6 ^1 O( p5 J5 {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. 7 G1 o3 O! D) Z! @$ N$ V- O; R5 u
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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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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. ! \( D8 h6 c: m& \% r; A
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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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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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/ i' V! m! A7 V0 f; u; 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. " Q; M+ s3 z, @
7 [) X& ?. K/ G7 l9 BThe 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.
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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. 0 T. w* u& P# q3 ]# p5 O$ \
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- with files from Vincent McDermott |
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