Enbridge’s Northern Gateway Pipeline proposal has cleared its biggest hurdle yet after a federal review panel gave its nod of approval Thursday to the highly controversial project.

But in its decision, the National Energy Board recommended the federal government subject the $7.9-billion project – which aims to build a massive pipeline carrying oil from Alberta to the port of Kitimat, B.C. – to 209 conditions before it is built.

In a statement, the panel said the pipeline would be in Canada’s best interest. “The potential adverse environmental outcomes are…outweighed by potential societal and economic benefits,” it reads.

The NEB does not have the final say on the project.

Its report will now be submitted to the federal government, which has six months to decide whether to green-light the pipeline.

In a statement, Federal Minister of Natural Resources Joe Oliver said the government will thoroughly review the report before it makes a final decision.

“The Panel’s report represents a rigorous, open and comprehensive science-based assessment,” he said. “Now that we have received the report, we will thoroughly review it, consult with affected Aboriginal groups and then make our decision.”

Enbridge said in a news release that it will work toward meeting the conditions outlined in the report.

"We will closely analyze the panel's conditions -- many of which reflect commitments we put forward at the hearings -- and continue to listen and be open to change," project leader Janet Holder said.

B.C. Environment Minister Mary Polak said the pipeline still hasn’t satisfied the five conditions outlined by Premier Christy Clark earlier this year. Clark said at the time the conditions, which focused on spill response, environmental protection and consultation with First Nations, had to be met before she would put B.C.’s stamp of approval on the pipeline.

“It means that they are part way to getting to the first condition that we established, which was successfully making their way through the environmental assessment process federally,” Polak said Thursday. “But there are still four conditions that are fairly onerous and that they are a long way from meeting.”

But Polak said a new Enbridge marketing campaign hammering a message of environmental safety is evidence the company is listening.

“Anybody who has seen Enbridge’s ads has seen a change in their stance and clearly, a renewed recognition that they have to address the kind of environmental concerns that arise in British Columbia,” she said.

Environmental groups and many First Nations communities have opposed the project over fears that tankers in northern B.C.’s waterways will increase the risk of devastating spills.

In its report, the panel found an oil spill would mean “significant adverse environmental effects,” but concluded that a large spill isn’t likely. It also cited an estimated cost of $7.9 billion for the project, up from the previous $6.5 billion figure.

Opponents voiced their displeasure almost immediately after the announcement.

“It definitely is in the interest of this massive oil company that a pipeline be built, but it isn’t in the interest of the people of British Columbia,” said Ben West, spokesman for environmental advocacy group ForestEthics. “Frankly I don’t think it’s in the interest of the people of Canada as well.”

West said the next step for opponents of the project, specifically First Nations groups, will be to challenge the legality of the pipeline.

“Trying to push a project like this through would be a sign of some pretty severe disrespect to the First Nations people,” he said. “That being said, I think there are some other options at our disposal.”

West said he thinks it’s unlikely Enbridge will break ground on the project before the next federal election in 2015, and a change in government could make its future unclear.

Some of the key items from the 209 condition set forth by the Northern Gateway joint review panel require Enbridge to:

• Develop a comprehensive research program studying cleanup of heavy oil spills

• Prepare a marine mammal protection plan and caribou habitat restoration plan with input from appropriate stakeholders

• Submit a wetland functional assessment plan to the NEB, which must include a comprehensive report on wildlife species put at risk by the project

• Set a “drop dead” date of Dec. 31, 2016. If construction doesn’t start by then, certification for the project would expire.

• Implement an environmental effects monitoring program for the project’s entire operational life

• Monitor and address any adverse socio-economic effects caused by the project

• Provide monthly updates on construction activities

• Track the company’s commitment to hire at least 15 per cent Aboriginal workers

• Monitor post-construction impact on all land and freshwater areas disturbed by the building process

• Completion of six full-scale emergency response exercises prior to construction, one of which must be unannounced

With files from The Canadian Press