Husky, Enbridge encounter NWT problems

Enbridge and Husky Energy were left red-faced by two incidents in the Northwest Territories.

For safety reasons, Canada’s National Energy Board ordered Husky to stop operations at its Slater River oil exploration camp, while Enbridge dug up contaminated soil at two locations along its pipeline from the Norman Wells oil field to northern Alberta.

The order from the federal regulator involved a series of violations by Husky under the Canada Oil and Gas Operations Act, which the NEB’s chief safety officer Brian Nesbitt said holds companies accountable for “their performance and the effectiveness of their management systems.”

Husky said it took the matter seriously and agreed to suspend operations to conduct a safety review.

A company spokesman said operations would only be restarted when Husky and the NEB were satisfied all requirements had been met.

Husky is involved in building an all-weather road to a highly prospective oil play in the Central Mackenzie Valley, where MGM Energy and ConocoPhillips are also engaged in exploration activities.

The Enbridge pipeline, built in 1985, is currently carrying about 39,500 barrels per day from Norman Wells, more than 10,000 bpd below capacity.

The company said it needed to remove about 95 cubic meters of contaminated soil at two locations identified as potential weak spots on the pipeline.

But a company spokesman said further investigation is needed to determine if the spills actually came from the line.

The pipeline had experienced previous problems, including a sizeable spill in 2011.

—Gary Park