Saskatchewan orders examination of Potash deal

* To look at impact on revenues, takeover conditions

* Report to become public by Sept. 30 (In U.S. dollars unless noted)

WINNIPEG, Manitoba, Sept 2 (Reuters) - The western Canadian province that is home to the country's potash industry, has commissioned an independent look into BHP Billiton's (BHP.AX) proposed takeover of Potash Corp (POT.TO), including conditions that Canada could impose on the deal.

The government of Saskatchewan has asked the Conference Board of Canada, a nonprofit research organization, to examine the effect on potash-sector jobs and on government revenues, Saskatchewan Energy Minister Bill Boyd said on Thursday.

The board will also look at the impact on the province's strategic position in the world's potash industry and its reputation as a place to invest, he said.

Potash Corp has rejected a $38.6 billion takeover bid from BHP and has begun searching for other offers.

The Conference Board will also report on conditions that Saskatchewan could ask the federal government to impose on any takeover deal, as well as ways to mitigate risks from BHP's bid and any others that could come forward, including any interest from state-owned funds and companies.

Boyd has raised concerns about both the possibility of China -- the top consumer of potash -- buying into the company and BHP's stated intent to eventually market its potash offshore on its own, rather than through the export consortium Canpotex.

The province is concerned that any changes to marketing or production levels could lower potash prices, which determine the size of the royalties Saskatchewan collects.

The province, which produces one-quarter of the world's potash, depends on those royalties for hundreds of millions of dollars a year and collected nearly C$1.4 billion ($1.3 billion) in 2008-09 after potash prices spiked.

The government said it will make the Conference Board report public by Sept. 30.

The Canadian government is expected to hear Saskatchewan's views on BHP's takeover bid before making any decision on a deal, under a regulatory process that examines whether a foreign takeover is of net benefit to the country.

($1=$1.05 Canadian) (Reporting by Rod Nickel; editing by Rob Wilson)