09/06/2015 11:19 EDT | Updated 09/06/2016 05:59 EDT

Some Nexen Pipelines Can Re-Open: Alberta Regulator

Bloomberg via Getty Images
A pipeline leading to the Syncrude Canada Ltd. upgrader plant stands at the company's mine near Fort McMurray, Alberta, Canada, on Tuesday, June 2, 2015. Canadian stocks rose a second day as commodities producers rallied after the price of oil climbed to the highest level this year while gold and copper led metals higher. Photographer: Ben Nelms/Bloomberg via Getty Images
CALGARY — Nexen Energy is being allowed to reopen some pipelines at an Alberta oilsands operation after provincial regulators suspended the licences for them last month.

The Alberta Energy Regulator says that after inspecting Nexen's Long Lake facility and reviewing documents, it has determined that about 40 utility pipelines that carry fuel gas, natural gas and water pose a low risk to public safety and the environment.

It says Nexen has demonstrated the utility lines can be operated safely and within all regulatory requirements.

But the regulator says the remaining 55 pipelines affected by the order, which contain products including crude oil, natural gas, salt water, fresh water and emulsion, must stay closed until the company can demonstrate they're safe.

The regulator revoked the operating licences for the lines at Long Lake on August 28 due to what it called non-compliance surrounding pipeline maintenance and monitoring.

Nexen says in a news release that the reopening of the utility pipelines means it will be able to maintain approximately 75 per cent of its Long Lake oil sands production and upgrader operations.

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