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http://www.fortmcmurraytoday.com ... -and-pipeline-spill
* }) }% m, m# ~2 t# K7 T5 q D" d9 iNexen 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 t* p6 D/ F5 r: Z1 M7 a
; y: @2 k# p4 e/ uThe 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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3 k. i/ U, {) I, X9 o. U' HThe 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.6 _- D5 H# W$ j) a( N) L- M
8 X1 V n! M- X' A& V' j7 KAn 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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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. 2 ?9 r/ F) U7 I% y" ]$ w8 ?
& B+ U P: |5 z- N2 C& S7 n+ kIn 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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( k# }7 y6 y4 e1 h* }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. * G/ G$ a, n0 ~ {5 N
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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., e/ d) {0 X; U7 n
+ A# C! m' B3 ZNexen 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."# @ t5 ^" k7 u9 ^7 A$ Y2 V- G& G/ Y
) ^" V @8 n: UThis 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. 2 F' ], J( _- I1 i3 h
; g& G" _; l1 E: q/ r% d: X# qThe 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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