I personally think it should be a federal decision (perhaps a global one) considering the scope and breadth of the project, but Harper has now set up environmental assessments to be a choice between provincial or federal responsibility.
If it's a provincial decision and the NDP win the next election - don't expect this pipeline to go through.
Northern Gateway pipeline puts British Columbia at oil spill risk: New Democrats
I agree first and foremost it's a Federal and Provincial decision, but the Feds and Province could choose to let the local government have the final say if they wanted to. Seeing that they're the most effected, it woudl make sense to let them have the final say once the Feds and Province agree to it.