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Breaking down the pipeline

Northern News Services

Yellowknife (Feb 03/06) - There is one parallel between the Berger Commission of 1974 and the current National Energy Board hearings that took place in Inuvik this past week - the interest in building a pipeline from the Delta to Alberta.

However, that's where the similarities end and we arrive at exactly what the National Energy Board is here to do: recommend to federal cabinet whether or not the go-ahead should be given to build a pipeline through the Northwest Territories.

While the Berger Commission was saddled with a similar mandate, its recommendation to settle land claims before pipeline development killed the need to even summon the National Energy Board.

The NEB was established in 1959 and reports to Parliament through the Minister of Natural Resources.

Charged with the responsibility of regulating the construction and operation of pipelines and power lines that cross international and provincial borders, its mandate also includes evaluating the economic feasibility of potential projects based on the Canadian public interest.

In its 2003 Annual Report, the NEB defines this Canadian public interest with respect to energy demands as, "Inclusive of all Canadians... (a balance of) economic, environmental and social interests.

"As a regulator, the board must estimate the overall public good a project may create and its potential negative aspects, weigh its various impacts and make a decision."

From the Beaufort Delta to Alberta, the pipeline will span more than 1,220 km through four different aboriginal territories in the Northwest Territories.

Five applications have been submitted to the National Energy Board - one for each of the three fields, one for the pipeline itself, and one for the liquid natural gas pipeline that will connect with existing transport infrastructure at Norman Wells.

The $7 billion estimated cost of the pipeline would make it one of the largest and most ambitious infrastructure projects in Canadian history.

The pipeline itself is actually two separate pipes. The primary tube, 30 inches in diameter, will deliver natural gas south. A 10-inch diameter pipe will connect with an existing pipe in Norman Wells for the transport of liquid natural gas.

The big pipe will have the ability to ship more than a billion cubic feet of natural gas each day, while the liquid natural gas pipe's shipping capacity is in the realm of 4,000 cubic metres a day. Both pipes will be buried and the entire system - including gathering facilities and three compressor stations - can be expanded to deliver 1.8 billion cubic feet a day with the addition of 11 more compressors.

Holding a 100 per cent interest in gas at Taglu field, a stake in the gathering system and the pipeline itself, Imperial Oil is the lead proponent of the project. Shell Canada has a 100 per cent interest in the second field at Niglintgak, a stake in the gathering system and pipeline. ConocoPhillips and Exxon Mobile have a shared interest in Parsons Lake field, the gathering system and pipeline. The Aboriginal Pipeline Group owns a one-third interest in the pipeline.

National Energy Board hearings on the Mackenzie Gas Project will hear evidence regarding engineering logistics, access and benefits and tolls and tariffs. The Joint Review Panel portion of the coming hearings is designed to address environmental and socio-economic impacts of the proposed project.

Following the hearings - both NEB and JRP - the JRP will submit recommendations to the NEB. This report will be factored into the NEB's recommendation to federal cabinet on the matter of the Mackenzie Gas Project. The NEB anticipates it will finish its report early next year. While the NEB has in the past recommended that projects not go ahead, it is important to keep in mind that the federal government has never gone against a recommendation from the NEB.

Referred to as Taglu, it is listed as "Significant Discovery Location 063" on the January 2006 Indian and Northern Affairs' map and can be found 120 km north-northwest of Inuvik, or approximately 70 km west of Tuktoyaktuk. Imperial Oil holds a 100 per cent interest in Taglu Natural Gas Field. It's also inside the Kendall Island Bird Sanctuary.

Parsons Lake is 55 km southwest of Tuktoyaktuk and 75 per cent interest is held by ConocoPhillips, with 25 per cent held by Exxon Mobile.

It is located 70 km north of Inuvik and 55 km southwest of Tuktoyaktuk.

Niglintgak is the third field, owned 100 per cent by Shell, located about 85 km west of Tuktoyaktuk.

It is estimated that these three sites contain more than six trillion cubic metres of natural gas, or enough fuel to heat every home in Canada for 10 years.