UPDATE 2-Northern Gateway panel issues draft pipeline conditions

Fri Apr 12, 2013 2:28pm EDT
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* Release of conditions does not signal approval of project

* Conditions include C$950 mln to pay for spills

* Conditions on environment, construction, aboriginals

* Enbridge declines comment on whether conditions onerous

* Enbridge shares fall 0.5 pct

CALGARY, Alberta, April 12 (Reuters) - Enbridge Inc must provide at least C$950 million ($937 million) in guarantees, including C$100 million in ready cash, to cover the cost of oil spills and accidents from its proposed Northern Gateway pipeline, according to draft conditions released on Friday by the panel assessing the project.

Canada's Joint Review Panel issued its draft list of conditions Enbridge must meet before it approves construction of the controversial C$6 billion pipeline, a decision that must come by year end.

The list of 199 potential conditions cover how construction would proceed, environmental protection and aboriginal participation in the line, as well as how the company would pay for the clean-up of spills and other environmental damage.

The federal government and oil companies seeking an alternative to their reliance on the U.S. Midwest refining market and higher prices for Canadian crude have championed the project.   Continued...