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http://www.fortmcmurraytoday.com ... -and-pipeline-spill! V) D* A1 c( t) X/ ]9 S6 T
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, 2016.4 i0 \2 e& R! v- r) b
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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.
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8 ]$ @. a- L/ U1 Q K$ pAn internal investigation found the explosion was a result of work being performed that was "outside of the scope of approved work activities.". [* X; y) Z a# p
0 O* f+ n) O5 U: p7 aThe 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. ' b8 Z% U: w3 z* ]/ R6 I
# P# o2 w& w. O, G; X# [4 UIn its announcement Nexen said it is addressing safety gaps in part with refresher training on workplace hazard identification, increased site supervision and safety inspections. " l( `% {: R3 C% f
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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. ' c& r4 `( }0 [) s+ u6 q
7 x4 i. f. f1 _+ \3 P9 a7 sThe 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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\7 P+ l3 A7 \0 \9 _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."; g. A5 {& V8 m5 Z; L. v
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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. 9 }: V' A( c5 a1 s
. @1 S; o/ @# E' gThe 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.
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- with files from Vincent McDermott |
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