Canadian regulators rollout Mackenzie gas pipeline timelines

Gary Park

Petroleum News Calgary correspondent

Regulators have set a timetable for handling the Mackenzie Gas Project that eases some of the growing concerns among proponents. Six boards and agencies, including Canada’s National Energy Board, said March 11 they aim to finalize a joint review panel agreement and terms of reference by early July.

In addition to the National Energy Board, the North Gas Project Secretariat comprises the Inuvialuit Game Council, Mackenzie Valley Environmental Impact Review Board, Mackenzie Valley Land and Water Board, Northwest Territories Water Board and Canadian Environmental Assessment Agency.

National Energy Board Chairman Ken Vollman said in a statement that setting timelines to process an application establishes a “firm foundation for a thorough, timely and transparent processing of an application once it is filed.”

Tim Hearn, chief executive officer of project operator Imperial Oil, told reporters in February that delays in the environmental assessment phase are threatening to delay hearings by six months, which could push construction beyond the peak winter season.

The heads of the boards said that by setting key dates they are “demonstrating their commitment to the people of the north and all interested parties in the application process, which will continue to be transparent and open to public scrutiny.”

The timetable includes:

• Releasing details of the participant funding program for the joint environmental review and regulatory panel by early April.

• Establishing a committee by the end of April to review the funding applications.

• Opening an Inuvik, Northwest Territories, office of the Northern Gas Project Secretariat by early April.

• Finalizing a regulators’ agreement by the end of April outlining commitments by various regulatory bodies to coordinate their respective processes.

• Supporting the Mackenzie Valley Environmental Impact Review Board’s commitment to finalize the first phase of its environmental assessment and decide on a joint review panel referral by May 21.

• Completing a final draft environmental impact statement terms of reference and release the draft for public comment by June 1.

• Completing the final draft agreement for an environmental impact review and releasing the draft for public comment by June 1.

• Appointing seven independent members to the joint review panel by June 30.

• Finalizing the joint review panel agreement and terms of reference by early July.

Brian Chambers, executive director of the secretariat, said the commitments will ensure the various boards and agencies are prepared to process an application by July.

Beyond targeting 2004 to file its applications, the Mackenzie Gas Project members — Imperial, ConocoPhillips Canada, Shell Canada, ExxonMobil Canada and the Aboriginal Pipeline Group — have not set a precise schedule.

But they have noted that more than 4,000 licenses, permits and agreements will be required during the planning, construction and start-up phases, which are expected to stretch over the next five years or more.