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Pipeline proponents await final hearings

Katie May
Northern News Services
Published Thursday, February 25, 2010

INUVIK - Proponents of the Mackenzie Gas Project have decided not to respond to intervenors' comments on the Joint Review Panel's report until final hearings take place in April.

In a letter submitted to the National Energy Board Feb. 18, Imperial Oil wrote that at the hearings it would address issues raised by the intervenors - including environmental groups such as WWF Canada - if those comments related to the public interest.

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Bob Reid, president of the Aboriginal Pipeline Group, gives a presentation on the state of the project to members of the Inuvik Chamber of Commerce Feb. 17. - Andrew Rankin/NNSL photo

Imperial did write, however, that "some parties have misinterpreted or mischaracterized statements made in the proponents' Jan. 28, 2010 letter to the board. For example, it has been suggested that the proponents have called for the rejection of all recommendations concerning the Northwest Alberta facilities, when the proponents merely stated that 'the appropriate time to review and consider conditions applicable to these facilities is when that application is before the NEB.'"

This formal response means the regulatory process for the pipeline is one step further - a fact celebrated among Inuvik's business community Feb. 17 during a presentation from the Aboriginal Pipeline Group on the state of the project.

President Bob Reid and communications manager O.D. Hansen visited the hub of Mackenzie Delta last week, invited by the newly-formed Inuvik Chamber of Commerce, to outline their progress and answer members' questions, most of which focused on ways the community could be more prepared for the pipeline's arrival. They said they expect the pipeline will cost less to build than the 2006 estimate of $16 billion because of fluctuating prices of steel and contracting. The proponents won't do another cost estimate until they can complete engineering surveys.

Regardless, Reid said the APG has a solid financial plan. The group has a funding arrangement with TransCanada to pay its costs each month during the regulatory process.

"With the regulatory approval, we'll be able to get bank loans to fund our share and the first thing we'll do then is pay back TransCanada because the Trans-Canada loan is more risky so there's a higher interest rate on it," he said.

"APG is funded for this period and we're working with the banks to have the permanent funding in place at the time of the decision to construct, which will likely be in late next year or 2012. Every major Canadian bank is meeting with us on a regular basis and they're all very interested in providing the funding."

In the meantime, as communities along the proposed pipeline route work to expand local business and train skilled workers, they want to know that all of the APG's shareholders, who are entitled to one third of the profits, have signed on for the long haul. The APG still has no deal with representatives of the Deh Cho region, who have been concentrating on working out their land claims agreements, but Reid said he's optimistic that deal will happen soon, based on "encouraging" talks he's had with community leaders.

"I can't imagine a pipeline without the Deh Cho," he said.

Larry Peckford, acting president of the 35-member Inuvik Chamber of Commerce, said he was pleased with APG's presentation.

"That's what we like to hear," he said, adding the chamber is trying to make sure local business people are "fully aware of current events and things that are important to businesses when they're trying to make business decisions. When they're trying to decide how they go forward, it's important that they have good information."

The final hearings by the National Energy Board are set for April 12 to 17 in Yellowknife and in Inuvik from April 20 to 24.

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