If approved, the 1,200-kilometre natural gas pipeline would be built through the Northwest Territories' Mackenzie Valley to link northern gas with existing networks. (CBC)

The National Energy Board has issued draft conditions for its approval of the proposed Mackenzie Valley natural gas pipeline in the Northwest Territories.

This week, the federal regulatory board released 67 pages of proposed conditions to the consortium of pipeline proponents, led by Imperial Oil, which could come into effect if the board approves gas wells and a 1,200-kilometre pipeline to be built from the N.W.T.'s Mackenzie Delta.

"Should the project be approved, these conditions may be attached to any approval granted," the board stated in a letter, dated Tuesday, to the proponents and other interested parties.

If built, the pipeline would run south through the Mackenzie Valley to a hub in northern Alberta, where it would connect with existing gas networks.

The National Energy Board has to decide whether to approve the project, currently estimated to cost $16.2 billion. The board is expected to make a decision this fall.

Under the conditions, the NEB wants construction of the pipeline to start by Dec. 31, 2013. The certificate that the board would issue, should the project be approved, would expire on that date unless construction has begun.

The board also proposes conditions aimed at protecting the environment and wildlife, as well as keeping social impacts to a minimum.

But the NEB has accepted only 55 of the 176 conditions recommended by the Joint Review Panel, an independent review body that in December issued a report examining the environmental and socio-economic impacts of the pipeline.

"We'd hope that the National Energy Board considers the time, the money, northerners' input in this entire process," Jennifer Grant of the Pembina Institute told CBC News on Wednesday.

"This is the first draft, so there's still opportunities for the NEB to consider all the recommendations between now and the final decision."

The Joint Review Panel's report called for the Mackenzie pipeline to be approved, provided that proponents follow the 176 recommendations to ensure the project's potential negative environmental impacts are mitigated, as well as ensuring the project provides socio-economic benefits for northerners.

The National Energy Board's draft conditions will be among the topics to be discussed when the board holds a round of hearings on the pipeline project next month in Yellowknife and Inuvik, N.W.T.