The proposed 1,200-kilometre pipeline would run through the Mackenzie Valley from Inuvik, N.W.T., to the Alberta border, where it would connect with southern markets. (CBC)

People in the Northwest Territories are still sifting through the Joint Review Panel's recommendations for the Mackenzie Valley gas project.

But a pattern is emerging: there's a tremendous amount of work to do before the project goes ahead if all the panel's 176 conditions are followed.

The proposed $16.2-billion natural gas pipeline moved closer to reality Wednesday after winning approval from the panel.

Imperial Oil and its partners are now assessing what the panel's conditions mean.

"All of those have implications for the potential cost of the project," said company spokesman Pius Rolheiser. He said the proponents plan to offer comments to the National Energy Board within the next three weeks.

"The proponents are pleased that the Joint Review Panel has concluded that with appropriate measures to mitigate potential impacts, that the Mackenzie Project is in the public interest, and should be allowed to move forward," he said.

'Fuel system for the tar sands'

The pipeline proposal has its critics. After the Copenhagen summit on climate change, the Sierra Club of Canada predicted the project will have a seriously adverse impact on the environment.

"This pipeline is really just a fuel system for the tar sands," said Sierra Club executive director Paul Bennett. "It's going to result in huge increases in greenhouse gases from Canada, and we shouldn't be doing that."

The panel recommends that the federal government ensure that natural gas is used to replace dirtier fuels such as oil from tar sands. That pleases environmental groups, including Ecology North.

"Without a national framework for greenhouse gas emission reductions, there's no guarantee that gas from the Mackenzie Gas Project would actually be used to help Canada reduce its overall emissions," said Doug Ritchie, program director at Ecology North. "So they recognized that, and they said basically there has to be national regulation."

No guarantee of jobs

The panel says the federal government should share its income from the project if it proceeds.

But there is no guarantee northerners will reap jobs from the project, should it proceed.

"The panel actually recognizes — basically sort of threw up their hands, and said, there's no way that people can get trained up in time for the construction boom," said Kevin O'Reilly of Alternatives North, a Yellowknife-based social justice group.

The territorial government said it is working on a response to the panel's recommendations.