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http://www.fortmcmurraytoday.com ... -and-pipeline-spill o% A, H, d6 j2 j- i7 Z
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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& H0 t8 p \! w: ]1 T, jThe 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, 2016.0 w+ F$ u3 k- e/ t; p* P
% @1 ~+ u- z9 cThe 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.- g) g; E9 n: G. Q' g
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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."- x" y+ e% f+ D
, A" w9 m, M8 B/ x0 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.
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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. + i( o# I1 r- s8 g4 ?
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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.
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0 u3 ]1 s& ]! |& b+ GThe 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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8 `; @- n2 H$ `4 w& d ]1 u9 mNexen 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."- i r9 I6 @3 s
7 w1 e7 B) Y) R" f5 ]- n9 @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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7 a7 U- Q) m# i+ k( b( F# n; WThe 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 D! `7 D3 r* j( D" o
# G! C7 B6 p. [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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