AER issues Suspension Order to Nexen

Followed by the major leak on one of the SAGD production pipelines of Nexen Energy ULC discovered on July 15, 2015, The Alberta Energy Regulator (AER) withdrew 15 pipeline operation licenses which affected Nexen's 95 pipelines in northeastern Alberta.

The official brief statement of AER is "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."

Alberta Energy Regulator indicated that Nexen could not demonstrate activities for monitoring, inspection and maintaining records for above indicated pipelines were in place. Taking into consideration that “Protection of public safety and the environment are the AER’s top priority", as per Jim Ellis, President and CEO, it was an obvious decision for AER.

The official news release can be found at AER website.