Alberta regulator says Nexen can reopen utility pipelines at oilsands operation

CALGARY – Nexen Energy is being allowed to reopen some pipelines at an Alberta oilsands operation after provincial regulators suspended the licences for them last month.

The Alberta Energy Regulator says that after inspecting Nexen’s Long Lake facility and reviewing documents, it has determined that about 40 utility pipelines that carry fuel gas, natural gas and water pose a low risk to public safety and the environment.

It says Nexen has demonstrated the utility lines can be operated safely and within all regulatory requirements.

But the regulator says the remaining 55 pipelines affected by the order, which contain products including crude oil, natural gas, salt water, fresh water and emulsion, must stay closed until the company can demonstrate they’re safe.

The regulator revoked the operating licences for the lines at Long Lake on August 28 due to what it called non-compliance surrounding pipeline maintenance and monitoring.

Nexen says in a news release that the reopening of the utility pipelines means it will be able to maintain approximately 75% of its Long Lake oil sands production and upgrader operations.