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Memo TO: Ryan Abel, COPY: Bori Arrobo FROM: Todd Belot DATE: January 3, 2017 SUBJECT: Unintentional Release on Husky Sunrise Central Processing Facility Hello, This notice is to inform you of an unintentional release on the Central Processing Facility (CPF) of the Husky Sunrise Project on December 10, 2016. A pressure transmitter froze resulting in a false reading in the Distributed Control System (DCS). The reading caused high pressure in the system, which in turn caused the Pressure Safety Valve (PSV) to lift. Subsequently, Boiler Feed Water (BFW) was released to the ground under high pressure where it migrated into the parking lot, ditches and eventually a small area of the East Storm Pond (Photo 1, below). Approximately 98 m3 of BFW was released. When the release was identified, an operator manually closed the control valve and temporary insulation was added to 71-PT-6512 to thaw the sensing line and restore control. The clean-up of the water/snow/gravel mix was undertaken. Due to the low ambient temperatures at Sunrise, the released product froze quickly, impeding mobility. The release was contained within the lease boundary, and the spilled material was not expected to have infiltrated the soil due to freezing. The ice and contaminated snow have been recovered and placed in a heated tank to melt the impacted ice. Once the ice thawed, the water was removed from the tank and recycled back into process. The sand and gravel will be transported to the onsite Class 2 Landfill for disposal. Confirmatory soil samples will be collected to verify that the spill in the ditches and the parking lot did not impact the soil. During the spring melt, the water in the east storm pond will be sampled and analyzed for contaminants to ensure the water meets surface water release criteria. As mitigation, high level alarms have been added to PSV output. Temporary insulation has been installed, and maintenance of insulation and heat tracing is scheduled. A review of similar valve alarms for other PSV's in CPF 1A and 1B is also scheduled. Husky subsequently received a Notice of Noncompliance from the AER due to a delay in the reporting of this incident, as Husky was compiling incident information. Husky is required to develop, implement, and electronically submit an action plan to the Bonnyville Field Centre by February 7, 2017, detailing Husky’s plan to prevent similar events (late reporting) in the future. Please do not hesitate in contacting Todd Belot at (403) 767-5617 or [email protected] should you have any questions, comments or concerns. Regards, Todd Page 1 Memo Photo 1: East Storm water Pond Page 2