Yellowknife (Aug 21/06) - Costs for regulatory hearings for the proposed Mackenzie valley pipeline are expected to eclipse $20 million by the time the process is scheduled to wrap up in April next year.

For the Joint Review Panel hearings, $10 million was budgeted over two years beginning in 2004. An additional $10 million was also set aside to pay for the Northern Gas Project Secretariat, a instrument that handles the staging of hearings throughout the territories.

According to the National Energy Board, its hearings - to wrap up Dec. 15 - will cost in the neighbourhood of $1.5 million. The cost difference between NEB and JRP hearings is due to several factors.

First, the NEB portion of the proposed $7.5 billion gas pipeline requires less than half the amount of hearing days . Second, the NEB is an established entity and does not include salaries for staff participating in the Mackenzie Gas Project hearings.

As for who will foot the bill, Annette Bourgeois-Bent, NGPS Communications Manager, said project proponents will pay two-thirds of the cost for JRP hearings and secretariat while the Canadian Environmental Assessment Agency will pick up the difference. The cost of energy board hearings will be covered out of a special fund industry players contribute to annually.

While energy board hearings are for the review of engineering, economic feasibility and logistic considerations of the project, the JRP's mandate is to review social, economic and environmental impacts.

The seven member panel, which held hearings in Yellowknife last week, came about in 2004 and is a product of land claims in the NWT. In the Inuvialuit Settlement Region, its game council is responsible for reviewing developments inside its territory and the Mackenzie Valley Environmental Impact Review Board handles similar responsibilities in the Mackenzie Valley, which includes Gwich'in, Sahtu and Deh Cho territory.

As the 1200km pipeline will traverse regions within the MVEIRB's domain and the Inuvialuit region, both parties, along with the environment minister, agreed to establish the JRP and allow it to do the environmental assessment.

The panel includes two members selected by the Inuvialuit, three from the MVEIRB and two from the feds - attest to this arrangement.

After JRP hearings wrap up in April 2007, the panel will make its recommendations on the pipeline to the NEB, who will then submit its recommendations to federal cabinet for approval.