In coming days, we will provide commentary.  While the Government of Canada has approved the Mackenzie project, deadlines and conditions pose obstacles along the way.  One perceives that the growing power and influence of eco-activists, socialists and government sympathizers are making reasonable Arctic resource development in both countries uneconomic in some cases and more costly for consumers and taxpayers in all cases.   (See NEB release and related documents.)   -dh

 

ADN/AP.  Alaska and ExxonMobil Could Settle Point Thomson Dispute

Globe and Mail by Nathan Vanderklippe.  The Mackenzie Valley natural gas pipeline has cleared its last major regulatory hurdle.

On Thursday, the National Energy Board issued a certificate of public convenience and necessity for the long-delayed line, after receiving approval by the federal Cabinet. The NEB gave its own nod to the project in December, capping a protracted regulatory process that began in October of 2004.

 

MORE RELATED TO THIS STORY

…  Earlier this week, Joe Marushack (NGP Photo), the Canadian president for ConocoPhillips, called Mackenzie a “pretty tough project” given “gas prices where they are.”  And while a construction decision must be made by 2013, the NEB approval is not the final step in clearing the way for the project. Companies must still receive 6,000 individual permits for various aspects of construction before they can proceed.  They also intend to step up unresolved talks with Ottawa on fiscal support for the project.

“We will be negotiating with the federal government on what’s the next step to move that project forward, and what sort of fiscal arrangements are necessary,” Mr. Marushack said.  Loan guarantees would “certainly be helpful,” he said.  But even if the near-term prospects for the pipe remain doubtful, many in the industry continue to hold hope that the Mackenzie pipeline, as well an even bigger Arctic gas pipe proposed in Alaska, will one day be needed.  “Long-term, I’m optimistic that some day we’ll see those projects come forward,” Mr. Marushack said.