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Oilpatch boom causes companies to cut corners on safety

Category:Editorials (Teresa Roper)
Published Date: 01/12/2007

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By: The Canadian Press
Nov 29, 2007

CALGARY -- Despite the deaths of two maintenance workers on a major Enbridge Inc. (TSX:ENB) pipeline in Minnesota, the president of the Canadian Energy Pipeline Association says there's no safer way to transport oil and gas over long distances.

"It's still the safest way to move large volumes of oil and gas, much safer, for example, than moving them by rail or truck or by boat,'' David MacInnis said in an interview Thursday.

"The reality is, whether you're talking about oil or natural gas pipelines in Canada, we've been very fortunate to have had very few incidents over the past 40 plus years."

Dave Mussati and Steve Arnovich of Superior, Wisc., were killed Wednesday afternoon when a section of pipe they were repairing caught fire.

"This is a tragic day in our company's history. We've had a presence in this community for more than 50 years and this incident hits close to home for all of us at Enbridge," said Richard Bird, Enbridge's executive vice president for liquid pipelines, in a news conference.

"We are greatly saddened by the events of the past 24 hours and words cannot express the tremendous sense of loss that can be felt throughout our entire organization."

The two men had shut down the 86-centimetre-wide pipeline to remove a 3.35-metre section to fix a pinhole leak that was found three weeks earlier.

They replaced it with a new section of pipeline, but oil apparently leaked at a section where that joined the old line. It's not clear what ignited the fumes.

As of Thursday afternoon, three of the pipeline's four parts were operating again. The fourth one, which was directly involved in the accident, is expected to come back into service in two or three days, Bird said. The Enbridge pipeline is used to transport oil from Saskatchewan into the U.S. Midwest.

What the Enbridge employees encountered Wednesday is the most common safety hazard when dealing with low-pressure oil pipelines, MacInnis said.

"Then when the pipeline gets opened up vapours are released and that is the most dangerous part of the process, because of course those vapours, if they come in contact with a spark or open flame, can erupt," he said.

Wednesday's incident in Minnesota highlights some of the safety issues Alberta's oilpatch has been grappling with for some time.

"The oil and gas industry, given the nature of its operations and activities, is a higher risk occupation and we have a higher risk for safety related incidents," said Brian Maynard, vice-president of the Canadian Association of Petroleum Producers.

He said his organization has been working with its member companies to make sure oilpatch employees are well-trained and get enough rest. CAPP also has campaigns on safe driving and alcohol and drug abuse.

Many companies have been forced to cut corners when it comes to worker safety as a result of Alberta's economic boom, said Gil McGowan, president of the Alberta Labour Federation.

"Health and safety has become much more of an issue in Alberta workplaces right across the board since the economy has gone on such a booming trend," he said Thursday during an interview.

"During a boom, the unfortunate reality is that corners are much more likely to be cut and one of the first corners that is often cut is health and safety."

McGowan said the number of fatalities has remained steady over the past four or five years but workplace injuries have spiked dramatically.

"While we may not be killing people at an increased rate, we are certainly seeing more disabling injuries on job sites, and we think that is the direct result of the boom and the pressure that's being put on both employers and workers to get more jobs done more quickly."

In April, two workers were killed at Canadian Natural Resources Ltd.'s (TSX:CNQ) Horizon oilsands project north of Fort McMurray, Alta.

The accident occurred when the roof collapsed on a massive oil container being built as part of the company's $10.8-billion project. The men who died in that incident were temporary workers from China.

McGowan also said the practice of bringing in foreign workers to address Alberta's labour shortage "has health and safety implications because many of these workers are being brought into Canada from countries that have much lower standards when it comes to occupational and workplace safety." The answer is making sure the government takes a tougher stand, McGowan said.

"If we want safer workplaces, our governments need to get serious about occupational health and safety audits and unannounced work site inspections," he said.

"And when they find violations, they have to get serious about prosecuting companies and levying fines and even launching criminal prosecution if necessary."

Enbridge shares were down 41 cents on the Toronto Stock Exchange, closing at $36.85 Thursday.

Copyright (c) 2007 The Canadian Press



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