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http://www.fortmcmurraytoday.com ... -and-pipeline-spill
" O6 ]5 Y- ]/ O# C; J! U) Q5 h& CNexen 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.3 x+ ?3 C% x ?; C& G2 U! e
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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.
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# a9 Y" h1 @9 b: | |) rThe 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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, s6 L) D5 l' f6 K" N& qAn internal investigation found the explosion was a result of work being performed that was "outside of the scope of approved work activities."" o) @& C& G; C8 Q8 c
+ N" n# o3 q: VThe 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. ; }; ?2 \% ], x# |# a' E
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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. ' K; T% w; }' A" B2 z- d
/ S1 p; |; W4 j+ Z# LThe 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.4 i( l" P) i. E: ^
1 D/ ?5 X- ] I# E3 }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."/ L; K& R2 {( ?$ D
3 M2 f" q9 T% B8 O2 O VThis 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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$ r& T. S8 Y9 s- `% d4 t$ `0 UThe 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. 5 T+ B. u* s% F1 u* u9 j( M; B
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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. # D; l2 _1 |) e
( `6 j9 R$ M4 l: C, Z2 \' i- with files from Vincent McDermott |
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