Inuvik (Dec 01/06) - The last leg of pipeline hearings is coming to a close for the National Energy Board, but intervenors aren't ready to let Imperial Oil off the hook yet.

Paul Falvo, the Sierra Club of Canada's legal representative, grilled Imperial Oil's legal team on the ownership of the gas travelling the proposed pipeline.

Randy Ottenbreit of Imperial Oil told the panel that the gas would be sold through marketing arrangements that would be decided at a later date.

"I can say on behalf of Imperial that no marketing arrangements have been made yet," said Ottenbreit.

Falvo then used Imperial as an example for his question.

"For example, gas from the (Imperial) Taglu field going to an oil sands operation owned by Imperial, would ownership change along the way?" asked Falvo.

Ottenbreit said that ownership of the gas wouldn't need to change hands, depending on the situation.

"Ownership of the gas could change hands, but it doesn't have to," said Ottenbreit.

He said a proponent who puts gas into the pipeline is entitled to the same amount when it reaches its destination.

"The gas belongs to them, but a fee is charged for transportation and fuel used to maintain the compressors along the way," said Ottenbreit.

Falvo also asked Imperial if it would be cutting any costs for itself if gas was brought from the Taglu oilfield and used in the Alberta oil sands operation.

"Is it possible that it might be more profitable for Imperial to ensure that Mackenzie gas gets to your tar sands instead of on the open market?" asked Falvo.

Ottenbreit said that it is not the intention to use the gas exclusively for its Alberta oil sands developments.

"When you sell gas, you sell at market price, same with buying it," he said. "If you have a need for gas, you buy it at the market price. So there is no incentive along the lines of what you mentioned."

Ottenbreit also said everyone involved in the project will pay the same price for the gas coming out of the fields in the region.

Andrew Cameron, communications officer for the NEB, said the panel took a few days' break in between the Inuvik hearings to visit Colville Lake.

"Now the NEB will be staying in Inuvik for a few extra days to hear different positions from companies in the region about how much potential gas is in the delta," said Cameron.

The NEB will be back in Inuvik from Dec. 11 to 15 to finish the oral hearings.