"I think that's fair," said Lawrence Backmeyer, vice-president of engineering for Calgary-based Purcell Energy Ltd. "As a company we support that when we drill here in northern Alberta on native land. They get 1.2 times the government royalty. We pay that. Do I think the (Acho Dene Koe) should get part of it? Yah."

Purcell Energy has a large stake in the Fort Liard area.

It has partnered with Chevron Canada on a number of massive gas wells. It estimates that its prospects in Liard region contain 500 billion cubic feet of natural gas and 1.5 million barrels of oil. Purcell expects half of its natural gas production in 2003 to come from Fort Liard.

The company has undertaken a large-scale seismic project, in joint venture with Talisman Energy Inc., in southwestern NWT and southeastern Yukon.

However, exploratory drilling on some of that land now hinges on the Acho Dene Koe's success in obtaining royalties from the federal government.

"We're waiting now for negotiations between the natives and the government." Backmeyer said.

"I guess as a company we're disappointed that something hasn't worked out so that things can progress ... I hope they work out some kind of deal with the government because obviously that helps us. Then we can get in there and get some stuff done. I think everybody benefits."

Purcell Energy can't afford to wait too long, though, Backmeyer warned.

"If we can't spend our money in Liard, we will go other places," he said.