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http://www.fortmcmurraytoday.com ... -and-pipeline-spill9 O0 [ A8 b7 {
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.* `' w* i3 R$ D2 K. q" T4 g4 A
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The 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.5 U$ ?1 g; ^! Y8 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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* @- M& X; [. D w. w2 t! r5 m( q" o NThe 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. . H M" L/ |' W% T/ @
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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. 8 @# T# i$ `; Z7 Y& m
3 L: F E9 S7 G8 ]9 IThe 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. , \, ?$ P' b7 E. ^2 k; \: M/ I
' c3 o, Q( I% m: UThe 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 _( R. I3 H G: C5 }
4 o' w9 n( O' G) r# ?0 L: q# lNexen 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. + r& J3 g& I( _. w. e
# k$ R- w8 u0 L5 R8 w: I& n! 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.
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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. ' U/ \6 n T4 D: u* R, A* W
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- with files from Vincent McDermott |
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