Most of Nexen’s Long Lake facility will remain open, after the Alberta Energy Regulator lifted suspensions on 40 pipelines at the site. However, Nexen is still prohibited from operating 55 pipelines until the company proves to the regulator they can be operated and maintained responsibly.
On Sunday, the regulator announced they were confident the pipelines imposed a low risk to public safety and the environment. The conclusion was made after reviewing of documentation and initiatives proposed by Nexen, and inspections held on Aug. 31 and Sept. 1.
The remaining 55 suspended pipelines contain crude oil, natural gas, salt water, fresh water and emulsion.
“Nexen has demonstrated to the AER that these utility lines can be operated safely and within all regulatory requirements,” a statement from the regulator read. “Nexen is required to implement its action plan for improved operations including a rigorous inspection plan and daily and weekly inspections of the affected lines. Nexen is also required to provide the AER with regular updates on inspection results.”
The specific initiatives Nexen has taken to improve pipeline safety and maintenance were not named by the company or the regulator. AER spokesperson Carrie Rosa says Nexen has created an appropriate action plan to handle the regulator’s concerns.
“It is the operator’s responsibility to determine which areas they will fix first,” she said.
On Sept. 2, Nexen announced Long Lake would close within two weeks, with no timetable for when the site would reopen. The company argued the 95 suspended pipelines were so integrated into the facility’s infrastructure that operating the site while complying with the order would have been impossible.
Shortly after the regulator’s Sunday evening announcement, Nexen said in a statement they were now capable of leaving up to 75% of Long Lake’s pipeline and upgrading operations open.
Rosa said reversing the suspensions on the pipelines was not influenced by the planned shutdown.
“The AER recognizes the impact regulatory decisions can have, however we must ensure that all areas of concern are addressed,” she said.
Nexen was asked what sections of the facility would shut down, what would happen to staff in those areas and what initiatives Nexen has taken regarding improving pipeline safety.
In an email, company spokesperson Diane Kossman said there would be no additional comment outside the news release.
The regulator is still investigating the causes that led to five million litres of emulsion spilling at the site. When the spill was accidentally discovered by a contractor walking through the area, up to five million litres of emulsion had already leaked into the muskeg.
Although the rupture was discovered July 15, the spill may have been ongoing for up to two weeks.