Yellowknife (July 26/06) - A pair of private citizens had some tough questions for Imperial brass Monday as National Energy Board hearings for the Mackenzie Gas Project kicked off in Yellowknife.

Doug Ritchie appears as an intervenor before the National Energy Board's Mackenzie Valley pipeline hearings, which began Monday and will run through Aug. 3 at the Explorer Hotel. - Jason Unrau/NNSL photo

First up was resident Doug Ritchie, who questioned why Canadian taxpayers should subsidize the $7.5 billion project, an assertion Imperial's project development executive Randy Ottenbreit flatly rejected.

"I don't believe we've asked the Canadian taxpayer to finance this. We're not seeking subsidies."

However, project subsidies are a matter of semantics. In November 2005, then Deputy Prime Minister Anne McLellan sent a letter to Imperial Oil stating Ottawa would, "Consider assuming a greater share of the project downside risks provided it is able to increase its share in the potential financial rewards."

In the federal government proposal, anchor field developers Imperial Oil, Shell Canada, ConocoPhillips and Exxon Mobile would pay lower royalties until the cost of the pipeline was recouped.

Ritchie also wanted assurances Imperial - sole owner of one Beaufort Sea natural gas field and part owner of the gathering system and pipeline - would pay market value for gas produced in the territories. As well, Ritchie wanted clarification that project proponents had made job guarantees to all Northerners.

On both fronts Ottenbreit replied in the affirmative.

Tasha Stephenson was the second person to test Imperial's position in questioning the project's benefit to Canadians.

"Our fuel needs could be met by efficiency and conservation," she said.

"Would the project be necessary if consumption in Canada were cut by 50 per cent?"

Stephenson also wondered whether proponents had "looked at northerner's need of northern gas," adding that should be a priority over meeting North America's energy needs. Ottenbreit insisted that the projected demand "indicates there will be a significant need of additional (natural gas) supply."

Ottenbreit said the gas will be made available to Northerners for heating and power generation.

"We will make gas from the pipeline accessible," he said.

The National Energy Board is conducting territory-wide hearings into the logistical, economic and engineering issues surrounding the pipeline, which would siphon natural gas from the Beaufort Delta into northern Alberta.