Derek Neary
Northern News Services

Fort Liard (Mar 24/00) - The Acho Dene Koe (ADK) have lost out on as much as $5 million in business opportunities due to the way Paramount Resources handled the pipeline project for its F-36 well, according to ADK general manager Shane Parrish.

"The project itself has been implemented in a very disorganized manner," Parrish said. "They (Paramount) weren't sure what they were doing ... It's really difficult for us. It's just not been a good experience."

The ADK would have preferred that Paramount waited another year to firm up their course of action so the ADK could have planned to offer support services accordingly, Parrish explained.

Hugh Klassen, corporate compliance officer for Paramount Resources in Calgary, replied that miscommunication and misunderstanding may have caused some of the problems.

"You're dealing with people who have not had a huge amount of experience in this area," he said. "Maybe by making a comment, they take it as gospel. Then all of a sudden it's thrown back at you and suggested that you're not keeping your word."

Also disappointing to the ADK, the revenue generated from the pipeline isn't going to be as much as was originally expected because only one well will be tapped into, Parrish said. Consequently, he said it's now expected the project will produce about 30 million cubic feet of natural gas per day as opposed to the originally projected 100 million cubic feet per day.

Klassen stressed that 30 million cubic feet is a "minimum number," but acknowledged that 100 million is out of the question.

"It hasn't really created that much alarm within the ranks here," he said, adding that there simply was not enough time to complete other wells in the NWT during the winter drilling season. "We're looking at potentially doing something with them in the summertime when we can get back in there."

The ADK own 10 per cent of the pipeline through a deal with Paramount Resources and their partners, Berkely Petroleum. The band has a loan from Paramount and Berkely, which is 10 per cent of the projected $17 million project, Parrish noted.

"Once our loan is extinguished, it will generate profits, I guess," he said. "At 30 million (cubic feet of natural gas per day), of course it's going to long time to pay (the loan) out. If it's ever going to become a real viable business, we need more gas going through that line... we've all learned here from this."

Parrish suggested that all future projects should have to undergo the Mackenzie Valley environmental impact review process, because it results in a greater degree of certainty even though it slows things down. The Chevron project to the north, for example, is a model of how a project should be done, according to Parrish. The Paramount project did not require an environmental assessment.

Klassen said the NWT regulatory process has already proven to be, "terribly onerous" and slow.

"Some of the rules are still being invented as we speak," he said.

As far as any specific problems with the pipeline project, Klassen said his company's partnership with the ADK is proof that Paramount is "in it for the long haul" with the band, and they are not interested in "stirring up any demons."

"Our approach has been and will, in the future, be to mitigate any disagreements and work very cooperatively with the band," he said. "We have, as far as we're concerned, done our thing and will continue doing our thing in terms of community strength building and so on."