The notion of building a pipeline down the Mackenzie Valley has been around since the 1970s, when large reserves of natural gas were discovered in the Beaufort Sea, not far from Inuvik. In 1977, Mr. Justice Thomas Berger recommended that nothing be built for at least 10 years.

It wasn't until 2000 that the climate had warmed to the idea of a pipeline. By then, native groups – once fiercely opposed to the pipeline – were largely on board. Only a few land claims were outstanding and most of the groups were eager to get involved.

By May 2005, it was the oil companies threatening to pull out unless the pace of negotiations picked up.

Who's involved in the pipeline project?

Two groups are directly involved in the project: the Producer Group – representing four oil and gas companies – and the Aboriginal Pipeline Group – representing the interests of aboriginal peoples of the Northwest Territories. The groups will be co-owners of the pipeline.

The Producer Group consists of Imperial Oil, ConocoPhillips, Shell Canada and ExxonMobil.

Imperial owns and operates the Taglu natural gas field and will construct and operate it. Imperial will also construct and operate the Mackenzie gathering system and the Mackenzie Valley pipeline.

ConocoPhillips holds a 75 per cent interest in the Parsons Lake natural gas field. It will construct and operate the production facilities there.

Shell Canada owns the Niglintgak natural gas field and will build and run the production facilities at there.

ExxonMobil holds a 25 per cent stake in the Parsons Lake natural gas field.

Members of the Producer Group will also jointly own a smaller system of pipelines that will gather the natural gas from the three natural gas fields, a gas processing facility near Inuvik that will separate natural gas liquids from the natural gas, and a liquids pipeline from the facility near Inuvik to Norman Wells.

The Aboriginal Pipeline Group – made up of members of the Inuvialuit, the Gwich'in and the Sahtuwill nations – will be able to acquire up to one-third interest in the main Mackenzie Valley pipeline.

Are all aboriginal groups behind the project?

No. Members of the Deh Cho Dene First Nation have not signed on. The Aboriginal Pipeline Group said the Deh Cho's 34 per cent share "will be held for them if and when they choose to participate."

Why are there two sets of public hearings?

The issues involved in a project of this magnitude — the price tag has been set at around $16 billion — have been divided roughly into two groups.

The first set of hearings looked at engineering and economics — can it be done and for how much. These hearings were under the authority of the National Energy Board and wrapped up in December 2006.

The second set of hearings will look at the project's environmental and social consequences — what will it mean for the land and the people and wildlife that live there. These hearings will be held under a body called the Joint Review Panel. Those hearings are underway.

What is the Joint Review Panel?

It's a seven-member independent panel that will listen to evidence at months of hearings and report on what it thinks will be impact of the project on the environment and the lives of the people who live in the region.

The federal minister of the environment appointed the panel on Aug. 18, 2004, in consultation with the Producer Group and the Aboriginal Pipeline Group.

Sometime after public hearings end, the panel will issue a report which will include its recommendations.

The decision on whether to recommend that the project should go ahead – or be stopped in its tracks – will be made by the National Energy Board. After that, the final decision on whether the pipeline is approved is up to the federal cabinet.

Is it just a pipeline they're looking at?

No. Actually there are five projects in total:

• The Mackenzie Valley Pipeline
• Development of natural gas production facilities (Taglu, Parsons Lake and Niglintgak natural gas fields)
• A gathering pipeline system
• A gas processing facility near Inuvik
• A natural gas liquids pipeline from Inuvik to Norman Wells

Who can take part?

Anyone can appear before either panel – either at informal community sessions or formally as interveners (your application must be approved). Interveners are able to participate in the exchange of information and will have access to documents provided by the proponent and other interveners. Some interveners are also eligible for the Participant Funding Program, which was set up to support public participation by concerned citizens and groups in the environment assessment process.

If you're an intervener, you'll get 15 minutes to present your case – 30 minutes if you're appearing at hearings dealing with technical issues.

If your interests deal with how the project may affect people and the land, you'd want to take part in the Joint Review Panel hearings. If your interests are in the engineering, safety or economics of the project, you would be more interested in the hearings of the National Energy Board.

What happens after the hearings end?

Both committees will retire to consider their recommendations and write their reports. In the end, it will be up to the federal cabinet to go over those reports and decide whether to go ahead with the project.

That decision should come in 2008. If Ottawa gives the go-ahead, construction could start by 2010. The gas could be flowing by 2014.

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