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OIL AND GAS
Fracking caused Canadian quake: media
by Staff Writers
Ottawa (AFP) Aug 26, 2015


Regulator orders 95 Nexen pipelines suspended in Canada
Montreal (AFP) Aug 29, 2015 - The oil and gas producer Nexen Energy, a Canadian subsidiary of China's CNOOC, was forced to suspend operations Saturday at 95 pipelines after a major leak last month.

The leak in Alberta, western Canada, spilled some 31,500 barrels (five million liters) of oil sands, prompting concern and criticism from environmental groups.

The Alberta Energy Regulator (AER) ordered the immediate suspension after it accused Nexen of "noncompliant activities" at the firm's Long Lake oil-sands operations in terms of maintenance and monitoring.

Nexen will have to provide documentation to assure the agency that it can operate the pipelines safely.

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

Nexen had said previously that no injuries occurred as a result of the spill and that the problem pipeline had been "isolated."

Greenpeace says the spill is just the latest evidence of environmental risks posed by the controversial practice of extracting oil from tar sands.

Critics blame massive growth in the Alberta oil sands for a spike in Canadian CO2 emissions that have contributed to Canada's failure to meet its international obligations to curb global warming.

Fracking by a Canadian subsidiary of Malaysian oil and gas giant Petronas triggered one of the world's largest earthquakes linked to the controversial practice, Canadian media said Wednesday.

The British Columbia Oil and Gas Commission said it has linked the operations of Progress Energy in the province's northeast to a 4.4-magnitude quake felt in Fort St John in August 2014, the CBC reported.

The commission told the broadcaster that the quake was "triggered by fluid injection during hydraulic fracturing" by the company.

It was preceded by a 3.9-magnitude quake in July the same year, also believed to have been caused by fracking.

The energy regulator and the company were not immediately available for comment.

Fracking or hydraulic fracturing is a process used to extract shale gas by blasting a high-pressure mixture of water, sand and chemicals deep underground to release hydrocarbons trapped between layers of rock.

Environmentalists argue that the process may contaminate ground water and even cause small earthquakes.

The technology is widely used in the United States, helping to keep down energy costs there. But it is banned in some countries in Europe.

After the 2014 quake, Progress Energy was ordered to reduce the amount of fluid it was using in the process, and has complied, said CBC.

Another Progress Energy site, however, was reportedly shuttered last week while authorities try to determine if it was behind another quake just a few kilometers (miles) away.

Parent company Petronas, meanwhile, is pushing ahead with plans to build a giant liquefied natural gas terminal on Canada's west coast to ship gas fracked from the region overseas.


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