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http://www.fortmcmurraytoday.com ... -and-pipeline-spill) W/ K: q& s# X" f5 y, w- `; d
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.( R3 v6 F3 X& ^8 T( w" U# W- z8 g
) C) f; S1 k1 F0 bThe 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, 2016.1 K. {& S6 r4 c' v0 g) O
+ l) x% d0 f/ e9 N" LThe 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." V" T' Y* Q# B1 N. \7 V+ ^
. X9 q6 `) w- qAn internal investigation found the explosion was a result of work being performed that was "outside of the scope of approved work activities."- t2 y* @' }; d( b
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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. 7 N/ }- A. W) U9 C; I0 L4 a$ {
8 b9 u9 B! {' {5 g# r: 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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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. t3 b! o- s2 ]2 e& w: N6 m
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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.
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: m7 I( O( o m: I' ?! @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."
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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.
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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.
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5 l6 ]' M! y- Z) v6 c& \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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