UPDATE 1-Regulator in Canada's Alberta shuts in 95 Nexen pipelines over "noncompliance"

(Adds company comment in paragraphs 5-8)
By Mike De Souza
CALGARY, Canada, Aug 29 (Reuters) - Alberta's energy
regulator has shut in 95 Nexen Energy pipelines, over concerns
the company allegedly violated pipeline maintenance and
monitoring rules.
The order, issued on Friday evening by the regulator in the
oil-rich Canadian province, comes more than a month after Nexen,
which is owned by CNOOC Ltd 0883.HK , discovered one of the
largest ever oil-related pipeline spills on North American soil
at its Long Lake Facility in northern Alberta.
The Alberta Energy Regulator (AER) said it received
information that indicated noncompliance with pipeline safety
rules on multiple lines in the course of its investigation at
the site, southeast of Fort McMurray.
The order suspends 15 pipeline licences for 95 pipelines
that carry a range of products including crude oil, natural gas,
salt water, fresh water and emulsion, the regulator said. It is
also requiring Nexen to demonstrate that its pipelines can be
operated safely.
In a statement, Nexen said it discovered "a number of
non-compliances" in an internal audit related primarily to
maintenance activities and disclosed this to the regulator last
Tuesday, along with an action plan.
It also said it was preparing to comply with the suspension
order as it works to compile other records requested by the
regulator.
It was not immediately clear whether the order would affect
production. Long Lake has a capacity of 72,000 barrels per day,
but following the spill, Nexen said in July that it was
producing about 50,000 bpd.
A company spokeswoman on Saturday said Nexen would provide
more information about the impact of the suspension as it
becomes available.
Nexen apologized for the spill in July, explaining that it
would likely take months to find the root cause of the leak,
which released more than 31,500 barrels of emulsion, a mixture
of bitumen, water and sand.
The incident dealt another blow to Canada's oil sands
industry in northern Alberta, which is under fire from
environmental groups for its carbon-intensive production
process.
"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," said Jim Ellis, the president and
chief executive officer of the provincial regulator, said in a
statement. "We will accept no less than concrete evidence."
The regulator is still investigating the causes of the spill
discovered in July and said it may impose additional sanctions
on Nexen.