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Cameron Hills development on hold

Applications referred to environmental assessment

Derek Neary
Northern News Services

Cameron Hills (Nov 24/00) - An environmental review could put plans to explore for gas in the Cameron Hills on hold.

Paramount Resources' applications for a land-use permit and a water licence for development in the Cameron Hills area have been referred to an environmental assessment.

The Mackenzie Valley Land and Water Board made the decision last week due to concerns over potential cumulative impacts and the effects of flaring off gas, according to Ken Weagle, executive director for the Land and Water Board.

"The only thing that was referred was the oil and gas exploration, the drilling part of it," Weagle said.

"There are some permits that they (Paramount) have from the past that could proceed..."

Sue Rose, corporate operations officer for Paramount, said the window of opportunity to do any work in the Cameron Hills area this winter is now small because of the environmental assessment.

"I can't say that it will definitively shut everything down in Cameron Hills, but it definitely shuts down the pipeline project for this year," she said.

Paramount had also been negotiating with Shehtah Drilling, a Dene-owned company, to use one of Shehtah's rigs in Cameron Hills.

"It's uncertain whether that rig will go to work now."

Cameron Hills is roughly 65 kilometres south of Kakisa. Paramount had been planning to establish one gas well, nine oil wells and 67 km of 32-cm pipeline south to Alberta.

The Mackenzie Valley Environmental Impact Review Board will conduct the environmental assessment.