Energy regulator in the province of Alberta, Canada has directed CNOOC subsidiary Nexen Energy to shut operations for 95 pipelines in northeastern parts of the province.
Alberta Energy Regulator (AER) has issued a suspension order for the energy firm ‘due to non-compliant activities at Long Lake oil sands operations pertaining to pipeline maintenance and monitoring.’
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AER ordered to shut the pipelines after a massive breach which spilled five million litres of bitumen, sand and contaminated water at Long Lake in July.
The regulator in the order has asked for immediate suspension of 15 pipeline licences, which will shut down Nexen’s pipelines used for transporting natural gas, crude oil, salt water, fresh water and emulsion.
It has asked the energy firm to offer sufficient documentation ensuring safety of the pipeline operations.
AER president and CEO Jim Ellis said: "Protection of public safety and the environment are the AER’s top priority.
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By GlobalData"Given that this company has already had a pipeline failure at this site, the AER will not lift this suspension until Nexen can demonstrate that they can be operated safely and within all regulatory requirements. We will accept no less than concrete evidence."
AER has identified Nexen Energy’s noncompliance for the Pipelines Act and Pipeline Rules on multiple pipelines at the Long Lake Facility as a part of the ongoing investigation for its pipeline failure.
Subsequent enforcement actions will be determined on the basis of noncompliance level, once the regulator declares the final investigation report.
