Alberta allows Nexen to resume operations for production pipelines at Long Lake project

Nexen Energy has received a second amendment order from the Alberta Energy Regulator (AER) approving the restart of operations for ten production pipelines at the company’s Long Lake oil sands oil extraction project.

Alberta Energy Regulator (AER) had issued an order last month to stop operations of 95 of its pipelines in northeastern parts of the Canadian province following a massive breach in July which resulted in five million litres of bitumen, sand and contaminated water spilling at Long Lake operations.

The pipelines transport gases, including produced steam and vapour, oil emulsion, and natural gas, including produced vapour.

According to the company, the latest order lifts the suspension order to ten additional pipelines at its integrated oil sands and upgrade facility located 40km southeast of Fort McMurray in the Athabasca oil sands region.

The first amendment order was issued by AER on 6 September to the original suspension order, which allowed the company to maintain about 75% of its operations at Long Lake.

Following the receipt of the new order, the company will be able to resume 100% of its operations.

Prior to giving its approval, AER carried out inspections of the site, a review of documentation, and Nexen’s subsequent actions.

The regulator said it is satisfied that the existing operating conditions of the production lines pose a low risk to environmental protection.

Nexen will also have to implement an AER-approved action plan that includes rigorous daily inspections, additional testing and monitoring of the affected lines.

AER also ordered the company to provide regular updates on inspection results.

The regulator issued the suspension order of 15 licences after receiving information that indicated noncompliance with the Pipeline Act and Pipeline Rules on multiple pipelines at the facility.

The suspension required closure of 95 pipelines that were carrying natural gas, crude oil, salt water, fresh water, and emulsion.

AER said the remaining 45 suspended pipelines contain several products, including crude oil, natural gas, salt water, fresh water and emulsion.