Fort Liard First Nation says petroleum company not paying up for resource projects

The Acho Dene Koe First Nation of Fort Liard, N.W.T., has turned to the courts in an effort to get the territorial government to enforce benefits agreements for two oil and gas developments on its traditional lands.

In a request for a judicial review, the First Nation also alleges the N.W.T. government is refusing to release annual reports outlining how well Paramount Resources Ltd. is complying with benefits plans related to the projects.

Under a 1999 agreement, a copy of which was included in the court filing, Paramount agreed to pay $100,000 annually into the First Nation's community development fund, in connection with an oil and gas project south of Fort Liard.

The same year, Chevron Canada agreed to make a similar payment of $110,000 per year for another oil and gas development near the community. In 2004, Paramount bought that project. But, according to Acho Dene Koe First Nation, the company refused to honour the benefits agreements.

In an Aug. 25 affidavit, Chief Eugene Hope said the two agreements were required by the federal government for the approval of the project.

With devolution, the territorial government now has responsibility for them.

Benefits plans versus benefits agreements

But the territorial government says while it may be responsible for benefits plans, benefits agreements are private contracts between the First Nation and Paramount.

In a letter included in the court case, the government's director of mineral and petroleum resources, Menzie McEachern, said annual payments do not fall within the Department of Industry, Tourism and Investment's definition of benefits plans.

"A benefits plan includes a commitment from the operator to implement strategies for training and employment and procurement and contracting," wrote McEachern. "A benefits plan does not, however, generally include guaranteed outcomes with regard to those areas."

He said the compliance reports do not include information about the annual payments. McEachern wrote that, in any case, those reports are confidential. They can only be released if the oil and gas companies that entered into them agree to release them.

The First Nation is asking a judge to force the territorial government to release the reports and enforce the benefits agreements.

Paramount Resources Ltd. did not respond to the CBC's requests for comment.