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http://www.fortmcmurraytoday.com ... -and-pipeline-spill3 C' S* w- `/ G: W
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.5 J- T; {& @0 p7 k. ]; }; f
+ U+ h- b5 K# G% OThe 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, 2016.9 O6 j3 w. ?: I+ d1 c
$ }5 ]. `+ C( A) K. U* P: [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.! r6 b4 X A' b- X
: T8 H! L3 {2 K, G ?( Z4 dAn 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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$ r+ g. F# B- |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. + A! E0 i3 ]# x9 a
) H. @/ M5 w% Q. S- U2 ?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.
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+ E" e" v+ S- ~% R# }$ Z% \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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The 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.0 M1 g& _4 i `! R. k$ U
- ?5 E2 f8 q* c" oNexen 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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( Y0 }5 [6 o( Y& L3 HThis 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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2 H, o2 t! B% f- ]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. 0 C- s3 H6 q; c( ?$ ~% o# Z; |
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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. , R9 f4 K% A" Z7 [2 ^; x, e
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- with files from Vincent McDermott |
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