Imperial Oil responds to opposition to Mackenzie Gas Project sunset clause extension

Imperial Oil has responded to assertions that the National Energy Board should not give it an extra six yearsuntil the end of 2022to start building the Mackenzie Gas Project.

In November,the board put out a call for comments on whether it should grant Imperial Oil an extension to the proposed pipeline's "sunset clause."

While eight groups, including the N.W.T. government, support the extension, thee groups Alternatives North, Ecology North,and World Wildlife Fund Canada and one individual (Greg McMeekin) say it shouldn't be allowed, citing environmental changes since the project's certificate was granted in 2011.

Some of those groups also want another public hearing to assess whether the project is still considered to be in the public's interest.

"There is no reason to conduct a public hearing to reassess the need for the MGP," Bart Cahir, the senior vice-president of Imperial Oil's upstream division, wrote to the board on Mar.7.

"Extending the sunset clause to 2022 will not change the [environmental oversight] roles of the NEB and OROGO [the N.W.T.'s onshore oil and gas regulator] over the lifespan of the MGP."

'In no way' tying up resource development

Cahir also discounted the concernthat the sunset clause would prohibit other companies from developing lands eyed by Imperial Oil for the pipeline.

"The approvals granted to [us] are permissive and are not exclusive," he wrote. "They do not require [us] to construct the facilities, nor do they preclude any other party from making application for approval to construct any facilities.

"Extending the sunset clauses in the existing approvals would in no way tie up resource development in the North. Indeed, to the contrary, extending the sunset clauses would preserve an opportunity for resource development to occur."

The National Energy Board is not expected to rule on the extension until this fall.