Cameron Hills (Apr 04/03) - Four First Nations have committed to work together to negotiate sweeter terms from an oil and gas working in the Cameron Hills, an area they claim as their traditional territory.

Dene bands in Kakisa, Fort Providence, the Hay River Reserve and West Point agreed on March 28 to incorporate as Deh Cho Dene Got'ie, according to Chief Sam Gargan.

The Dene company will deal directly with Paramount Resources Ltd.'s contractors, said Gargan. It will also attempt to devise a formula to compensate hunters, trappers and gatherers who have been affected by industrial activity in Cameron Hills, he added.

"If (community members) lose their livelihood because of that, then they should be compensated," Gargan contended.

Although few people still live in the bush year-round, there remain many seasonal hunters and trappers, he said. Last year Fort Providence had the highest revenue per capita for furs in the Western Arctic, Gargan noted.

"Obviously a lot of people in the community still (trap). It's not a hobby for them, it's a way of life," he said.

Wildlife worries

Lloyd Chicot, chief of the Ka'a'gee Tu First Nation in Kakisa, said his primary concern is that Paramount Resources follow industry practices that will result in the least impact on the environment and wildlife. Chicot said people in his community are questioning the effects the Cameron Hills oil and gas activity has had on caribou, wolves and fish.

"That area around Tathlina (Lake) is really sensitive," Chicot said.

Residents in Kakisa realize development is inevitable but they want to

preserve the integrity of the land, he explained.

"We want to do it in a manner where our kids can still go out and hunt and harvest animals out there on the land without having to meet up with oil companies out there," he said. "That's been our goal. Our community still depends on all the animals around this area."

Shirley Maaskant, a spokesperson for Paramount, said the company has been in discussions with Chicot about a study of the Cameron Hill's socio-economic and cultural impacts. Paramount has already addressed environmental concerns, she said, adding that the level of regulatory scrutiny in the NWT -- through the Mackenzie Valley Land and Water Board, the Department of Fisheries and Oceans, Environment Canada and the Department of Resources, Wildlife and Economic Development -- has been substantial.

"I certainly feel that those agencies are more than competent to ensure that our project has successfully mitigated any potential negative effect," said Maaskant.

The Department of Indian and Northern Affairs (DIAND) had attempted to act as an intermediary over the past year. Their recommended compensation process didn't capture all the areas of contention, though, Chicot said.

Employment benefits

Regardless, Paramount continues to meet with the First Nations to address their concerns, she noted. Wherever possible, Paramount also invites some residents of those neighbouring communities to monitor the project.

Indeed, Kakisa, a community of 40 people, has benefitted from the oil and gas development mainly through employment, according to Chicot. Community members have been employed as environmental monitors, heavy equipment operators and camps and catering employees through Kakisa's joint-venture partner in Cameron Hills.

Chicot admitted that discord among the First Nations had been impeding attempts to negotiate an impact benefits agreement (IBA) with Paramount.

Components of an IBA may include equity in the pipeline, training and financial compensation.

The four First Nations have so far rejected Paramount's offers of $100,000 per year or 10 per cent ownership in a Cameron Hills pipeline, according to Gargan.

He said Paramount's president, Clay Riddell, has failed to meet with the chiefs individually but has expressed a willingness to sit down with them as a collective.

Maaskant said the First Nations' financial demands must be viewed in light of project economics.

Paramount has made a sizable capital investment in Cameron Hills.

"We are millions away from seeing any positive cash flow," she said. "We're a business. We must make a profit or we won't be here."

Maaskant also referred to the company's community benefits plan, which has been approved by the Department of Indian Affairs and Northern Development.

That public document outlines business, training and employment opportunities for Northerners.

"All things being equal, we will hire Northerners," she said. "We've

created a lot of employment. A lot of dollars have gone into the Hay River region this past winter."