Roxanna Thompson
Northern News Services
Published Monday, January 14, 2008

FORT LIARD - Businesses in the Fort Liard area are facing the loss of up to 1,500 working days and $4.1 million following the suspension of Paramount Resources Ltd.'s natural gas operations north of the community.

The K-29 well site outside of Fort Liard is one of the sites where Paramount Resources Ltd. might suspend activities. - photo courtesy of Paramount Resources Ltd.

Low natural gas prices, few new gas finds and a lack of new lands opening up for exploration are the main reasons that the company is suspending operations, said Shirley Maaskant, the manager of regulatory and community affairs for Paramount.

"It's no longer economically viable to produce in Liard West," she said, referring to the company's operations north of Fort Liard.

Two key well sites in the area and the Liard pipeline will be temporarily suspended, a process that is also known as mothballing.

Paramount is also considering suspending operations at their three wells and the Shiha pipeline in the area south of Fort Liard that Paramount refers to as Liard South.

The area was brought into production in 2000, but gas production hasn't been as high as the company expected, said Maaskant.

If Paramount suspends all operations in the area, Maaskant said Northern businesses will lose approximately 1,500 days of work a year.

Last year Paramount paid $4.1 million to Northern businesses, which will also be lost, she said.

Acho Camps and Catering is one of the companies that will be affected by the suspension.

For a number of years, the company has supplied Paramount Resources with a cook at their location and that position will be lost, said Brad Giroux, the general manager of the company.

The company will also lose the opportunity to provide Paramount camp services both in the territory and in Northern British Columbia, Giroux said.

"It will have a definite effect on Acho Camps and Catering," he said.

The suspension is also expected to affect other groups ranging from heavy equipment suppliers Beaver Enterprises Ltd. to hot shot drivers who move supplies in and out for the company.

"It does have an effect on everybody," he said.

Because Paramount has stated that the sites could reopen if conditions change many businesses are hoping the work will return.

"We're hoping it's just a short term thing," said Giroux.

For production to resume, the wells would have to be economically viable, operating at a reasonable profit, Maaskant said.

Other factors under consideration include the lack of progress in the Dehcho land claims process and the inconsistency in how lands are being opened, she said, adding the company is interested in lands in the Fort Liard area.

Paramount still retains part ownership of some wells operated by Canadian Natural Resources in the Arrowhead area, about halfway between Jean Marie River and Nahanni Butte.

Rick Phaneuf, general manager of the Sambaa K'e Development Corporation in Trout Lake - southeast of Fort Liard - welcomes further expansion into the area by Paramount.

"We're hoping that Paramount will take an interest in the Arrowhead area once it becomes open," said Phaneuf.

"Because we want the economic benefits of this, we will not be putting up roadblocks in their way to slow them down or hurt them."

- with files from Guy Quenneville