Exxon Canada Pipe Work Would Halt Each Spring to Protect Birds

[Donna]

 Dec. 30 (Bloomberg) -- Exxon Mobil Corp. would have to halt some construction activities on a planned C$16.2 billion ($15.4 billion) Canadian pipeline for more than five months every year to protect wildlife, a government-appointed panel said.

The proposed 1,220-kilometer (758-mile) natural-gas pipeline from Canada’s Northwest Territories to a U.S.-bound hub in Alberta would make “a positive contribution,� provided the energy companies backing the project and government regulators agreed to take extra measures to protect birds, grizzly bears, caribou, fish and the water supply, the Joint Review Panel for the Mackenzie Gas Project said today in a report.

The restrictions called for by the panel include a ban on road building, rock quarrying, campsites, blasting or airplane runways within 1,000 meters of Peregrine falcon nests from April 15 through Sept. 1. For eagles, the restrictions would apply from March 30 to July 31, according to the report.

“Obviously the proponents are pleased the panel has concluded that with appropriate measures to mitigate impacts the project should proceed,� Pius Rolheiser, a spokesman for Exxon Mobil’s Imperial Oil Ltd., said in a telephone interview. “Given the length and detail of the recommendations, we can’t comment at this time in more detail.�

The recommendations now go to the Canada’s National Energy Board for final approval.

Irving, Texas-based Exxon Mobil and partners Royal Dutch Shell Plc, ConocoPhillips and the Aboriginal Pipeline Group, which represents some northern native bands, have 21 days to submit comments to the energy board.

September 2010

The energy board has said it will issue a final decision on the pipeline in September 2010.

In May 2007, Exxon Mobil Chief Executive Officer Rex Tillerson said the project was “not viable� and “not economical� after the cost estimate more than doubled from C$7.5 billion. The company hasn’t disclosed any new cost estimates.

Environment Minister Jim Prentice, 53, said earlier this year the Canadian government may offer financial aid for the pipeline, though it has yet to disclose any plans. The funding could cover the building of airstrips and barge landings, he said on Jan. 19.

Plans in the 1970s to build a pipeline to tap Canada’s northern gas reserves were halted by falling prices and concerns the development would disrupt the lives of aboriginals. A doubling in gas prices and an agreement for Indian groups to own a stake in the line helped revive the proposal this decade.