Company criticized for spill remediation in N.W.T., also being sued by Acho Dene Koe

The remediation of a spill in the Northwest Territories is being criticized by the territorial government.

Last June, 4,000 cubic metres was spilled from a retention pond at the Pointed Mountain Surge Pond, located about 30 kilometres northwest of Fort Liard. The pond is owned by Paramount Resources Ltd., which is in charge of cleaning up the defunct natural gas production site.

After the final remediation report was submitted last September, the department of Environment and Climate Change had several outstanding recommendations including permanent plans for contaminated soil, continued monitoring in place, and calls for other areas of the site to be remediated.

"[The department] firmly states that Paramount's method of using emergency measures for a long historical waste discharge is unacceptable and this approach should not be used by the company, or others in future," Wendy Bidwell, senior water resource officer wrote in an email to the company.

Paramount Resources was unavailable for comment by the time of publication.

This is not the first time the company has been scrutinized for its site maintenance and remediation work.

In 2018, an environmental inspection found high levels of chloride leaking at the Pointed Mountain surge pond, triggering a water licence application. At the time, the company was found in violation of the territory's Waters Act.

After the most recent spill, the territory said a water licence and land use permit need to be issued to the company to allow for full and appropriate remediation of the site.

First Nation suing company

Paramount Resources is also now facing a lawsuit from the Acho Dene Koe First Nation.

The nation filed the lawsuit earlier this month, alleging that Paramount has not honoured the community benefit agreements that were put in place in 1999 and 2000.

The allegations have not been tested in court.

Douglas Rae, the lawyer representing Acho Dene Koe, said the nation is seeking approximately $1.4 million in damages.

"We are hoping to get a special hearing before the Supreme Court as soon as possible … hopefully in the next few months," Rae told CBC.

The lawsuit comes about five years after Acho Dene Koe First Nation asked the territorial government to enforce the benefits agreement.

In 2020, the judge ruled the agreement between the First Nation and Paramount Resources was contractual and private between the two parties.