The Alberta government hailed the National Energy Board’s conditional approval for Enbridge’s controversial Northern Gateway pipeline but contentious issues around First Nations jurisdiction and the environmental risk and economic benefit the project will have for British Columbia remain unsettled.

In its decision released Thursday, the federal agency’s joint review panel found that the project — which would transport oilsands crude to the British Columbia coast for shipment to Asia — would be of significant economic benefit to Canada while causing no significant adverse environmental effects, with the exception of "low end" impacts on woodland caribou and grizzly bears.

The report — which contains 209 conditions for approval, including the development of a marine mammal protection plan, a caribou rehabilitation plan and a research program on the clean up of heavy oil — will now go to the federal cabinet, which has 180 days to render its final decision.

Newly-appointed provincial Energy Minister Diana McQueen said the release of the report was a "great day" for Alberta, which is seeking desperately to open new markets and access world prices for its landlocked energy resources.

"We’re very happy about this announcement today and look forward to this project proceeding," she told reporters in Edmonton.

"This is a major project for us to make sure we can reach other markets in Asia,"

The proposed line has prompted fierce opposition in British Columbia, particularly from environmental and First Nations groups concerned about potential oil spill and increased greenhouse gas emissions from expanded oilsands.

The B.C. government opposed the project in its current form and set five conditions — including the province receiving its "fair share" of the economic benefit of the project given that it carries far greater environmental risk — for the approval of any oilsands pipeline.

The report indicates the project is expected to lead to $90 billion in government revenues and $300 billion in GDP growth over 30 years. However, Alberta is the primary beneficiary from Gateway, expected to reap $67 billion in revenue over 30 years compared to B.C.’s $15 billion.

While the two provinces have sparred over the project in the past, the Alberta and B.C. governments have reached a framework agreement on pipeline projects that leaves it up to B.C. to negotiate with the energy industry over economic benefits.

"It will be a lot of work that Enbridge and the proponents will have to do with that," said McQueen.

"We’ll continue to facilitate the process but with regard to meeting the five conditions, making sure the environmental outcomes are achieved, making sure that First Nation consultation and community consultation will happen, will be Enbridge’s responsibility to do that as well."

Enbridge president Al Monaco said the company was committed to reaching out to First Nations that have been adamantly opposed to Gateway.

"At the end of the day it comes down to … us re-engaging, looking to build some further trust and ensuring we can, as best we can, address concerns. That has been our approach to the project for some time," he said on a conference call with reporters.

At the legislature, NDP Leader Brian Mason said he’s still concerned that Northern Gateway will ship unprocessed bitumen to China to be upgraded, transferring thousands of jobs offshore.

He’s calling on the Redford government to ensure at least half of the products carried by the pipeline are at a quality level matching synthetic crude or better, "so that the value — added benefit to the pipeline does not favour China at Alberta’s expense."

"Alberta needs pipelines to get its product to market," Mason added. "The question for us is not whether or not there are pipelines, but what they carry. And if they carrying unprocessed bitumen … they are carrying Alberta jobs with it."

Wildrose MLA Jason Hale welcomed the review, saying "the panel was able to cut through the noise (and) examine the evidence."

"I think it’s a victory for Enbridge, for all of Alberta and Canada with the approval of this project," Hale said. "We want the federal government to look after the issues at hand, to be as quick as they can I guess at reviewing these conditions and ensuring that B.C. is also on side with what they find."

jwood@calgaryherald.com

With files from Dan Healing, Calgary Herald

Northern Gateway report