AER Issues Suspension Order to Nexen

CALGARY, ALBERTA--(Marketwired - Aug. 28, 2015) - The Alberta Energy Regulator (AER) has issued a Suspension Order to Nexen Energy ULC, due to noncompliant activities at Long Lake oilsands operations pertaining to pipeline maintenance and monitoring.

The order, issued under Section 29 of the Pipeline Act, directs the company to:

• Immediately suspend 15 pipeline licences, which requires shut in of 95 pipelines that are carrying natural gas, crude oil, salt water, fresh water, and emulsion, and
• provide sufficient documentation to assure the AER that these lines can be operated safely.

On August 25, 2015 through the course of the AER investigation into Nexen's Long Lake pipeline failure. The AER received information that indicated noncompliance with respect to the Pipelines Act and Pipeline Rules on multiple pipelines at the Long Lake Facility. The lines carry several products, including crude oil, natural gas, salt water, fresh water and emulsion.

"Protection of public safety and the environment are the AER's top priority," said Jim Ellis, President and CEO. "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."

The level of noncompliance or the enforcement action that Nexen may face will be determined by the AER as part of the investigation into this matter.

The AER investigation into Nexen's Long Lake pipeline incident is ongoing. Once the investigation is complete, the AER will publish its findings.

The suspension order can be found here.

The Alberta Energy Regulator ensures the safe, efficient, orderly, and environmentally responsible development of hydrocarbon resources over their entire life cycle. This includes allocating and conserving water resources, managing public lands, and protecting the environment while providing economic benefits for all Albertans.

FOR BROADCAST USE

In response to the discovery of noncompliances at Nexen's Long Lake oilsands operation, the AER has ordered the immediate suspension of 15 licences, which requires the shut in of 95 pipelines carrying natural gas, crude oil, fresh water, salt water and emulsion. The AER will not lift this suspension until Nexen can demonstrate that the pipelines can be operated safely and within all regulatory requirements.