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

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.
Nexen did not immediately respond to questions about the
safety order.
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.