Thorunn Howatt
Northern News Services

Yellowknife (Feb 25/02) - It's full steam ahead on a project that will pipe Deh Cho gas southward from the Cameron Hills.

Less than one month after receiving permitting, Calgary-based energy company Paramount Resources Ltd. works against time to tie 17 old wells and nine new wells to an Alberta trunk line. The work needs to be completed before the ground thaws, if oil and gas are going to be produced this spring.

Last year Paramount's permit applications were held up in the environmental review stage. One of the points that delayed permitting was a benefit agreement between Paramount and the area's First Nations. Now that the points are settled Paramount wants to get working.

The Cameron Hills are located southwest of Hay River close to the Alberta border. The area is considered to be Kakisa's traditional lands.

"The pipeline that we're connecting to is being built in Alberta. So let's say 20 years ago the closest pipeline to Cameron Hills land was several miles away -- in excess of 150 kilometres," said Paramount spokesperson Shirley Maaskant, explaining the distance made the wells at Cameron Hills uneconomical to connect to a pipe system.

But now Alberta exploration is creeping northward and overlapping into the NWT.

"We presently have one drilling rig in," said Maaskant. Wells are being drilled one at a time, she said.

Paramount has approval to drill nine wells but each hole drilled depends on the success of the prior well.

Because of the late start and warm winter, it is possible only four new wells could be drilled. At the same time, service rigs are preparing 17 old wells. As well, seismic exploration is being conducted and construction started on a gathering system and pipeline.

The operation involves huge numbers of contractors and employs hundreds of people.

"Our drilling department might have 15 different services that they require," said Maaskant. "And then the seismic group and the gathering system pipeline groups hire a primary contractor."

So villages of men fill work camps. They are building ice roads through the forests and bridges across creeks and rivers.

The flag on a drilling rig can be seen flying over the tree tops and caterpillars crawl along pushing bush out of the way for seismic work.

Northern jobs

Paramount's permitting obligations require it to give Northerners first crack at Cameron Hills work contracts. The company also has to track its Northern labour component and tell the Department of Indian Affairs and Northern Development in an annual report.

One way it's meeting its obligation is with Edmonton's Travers Food Services. That company is joint-ventured with the Ka'a'gee tu First Nation band from Kakisa. They will run four camps in the Cameron Hills during Paramount's construction phase.

Kakisa Chief Lloyd Chicot described the camp's joint venture as a warm-up for band members to get ready for future oil and gas development.

"We would like to be a little bit more involved," said Chicot. The band will get a percentage of the camp's profit but would like to see longer-term business ventures in the Cameron Hills, he said.

The small community of 45 people is benefiting from employment.

"The local employment takes in surrounding communities like Trout Lake, Nahanni and Fort Providence," said Chicot.

The regions need to co-operate in order to take advantage of the prospects that will come with development, he said.