Roxanna Thompson (July 10/06) - Paramount Resources' Cameron Hills' oil project is being used as leverage in a Deh Cho land claim says the company's spokesperson, Shirley Maaskant.

"We are caught in the middle of this," said Maaskant.

Last week Ka'a'Gee Tu First Nation won a court case against Paramount Resources Ltd. and the Mackenzie Valley Land and Water Board.

The NWT Supreme Court quashed six land and water permits issued to Paramount in January for well sites in the Cameron Hills area.

Paramount was initially granted the right to explore the Cameron Hills area in the 1970s.

The Cameron Hills are close to the Alberta-NWT border and the community of Kakisa. Paramount plans to drill about 50 wells there over the next 10 years.

But Ka'a'Gee Tu First Nations in Kakisa wants Paramount to recognize its residents as the area's primary land users. That's why the matter ended up in court.

In listing her reasons for judgment, Justice Virginia Schuler said the six wells should have undergone a preliminary screening before the Mackenzie Valley Land and Water Board issued the permits. A preliminary screening is the step before an environmental assessment.

Paramount will have to pay the costs of the trial and the First Nations' legal bill.

"I can't understand how we are held accountable," said Maaskant.

Ka'a'Gee Tu First Nation's Chief Lloyd Chicot said the ruling was well received in the community.

The judgment follows a long struggle to make the board follow through with the environmental process and consultation, said Chicot.

He hopes the ruling will make the board follow the detailed steps of the process in the future.

Residents of Kakisa argue that if anything happens during the proposed oil and gas development they will be the ones effected because it's on their traditional lands.

During the court case, Chicot said he wanted to gather political support and funding from bands in the surrounding communities of Fort Providence and Hay River, but none came. Chicot said this is unfortunate because everyone will benefit from the ruling.

Looking into the future, Chicot said he sees the Dehcho Process as a unique opportunity for changes in the process of granting permits that would allow the concerns of First Nations to be heard more clearly and acted upon.

Bob Wooley, the executive director for the Mackenzie Valley Land and Water Board, said that in the board's opinion the preliminary screening had already been covered.

During an environmental assessment in 2004 the board looked at a future projection for work by Paramount in the Cameron Hills area including up to 50 wells over a period of 15 to 20 years.

It was assumed that the projects that came after that assessment were included in that studies, said Wooley.

The effect of the court's ruling is not yet clear, he added.

"It's a fairly unique situation," Wooley said.

The board plans to thoroughly review the court's decision before deciding if it will move forward with the suggestions or ask for an appeal.

Paramount Resources could not be contacted before press time.