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http://www.fortmcmurraytoday.com ... -and-pipeline-spill* e! h4 w4 O" j& @$ b
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.( z8 M) ^1 E2 R
: g+ I$ X; I$ V L7 m; B, sThe 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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9 n4 m& { E4 uAn internal investigation found the explosion was a result of work being performed that was "outside of the scope of approved work activities."7 j1 f G2 n! P6 @, c* D
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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. 4 H' t$ [! ^! a+ p. } Z! e: H) Q
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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. " C6 S5 x- R& l2 }1 X" v' `
& e( [+ X6 l# [# @ Z$ HThe 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. 7 ~% G' u& g O) |
3 i: F' w o4 o3 u) E9 d+ [8 YThe 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.% U i2 M' [& Z) Y
, F7 u1 ^0 T) ]* RNexen 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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& j) }; y7 W0 d* ~- J" X7 }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. 6 t. Q, V& E3 u3 x- S" j
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The 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. : A) Z' ^9 B) m1 `
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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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2 s( j. d9 T# F% f2 L1 a$ n3 i9 z; Z- with files from Vincent McDermott |
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