The Edmonton Journal, Saturday, December 01, 1990


              FIRM TO REOPEN OIL WELLS ON LUBICON-CLAIMED LAND
                 Move not tied to higher prices, Norcen says


Jac MacDonald
Journal Staff Writer
Edmonton

Norcen Energy Resources Ltd. will reopen 18 oil wells in the next two weeks
on lands claimed by the Lubicon Lake Band.

"Reopening them will create some employment and cash flow in the area for
subcontractors," norcen spokesman Ian Seph said Friday.

The company will resume production because both the federal and provincial
governments and the Lubicon have said the shutdown of wells was having no
effect on negotiations, Seph said.

The wells, shut since Nov. 30, 1989, are partly owned by Petro Canada and
Husky Oil.  Norcen has been operating about 30 other wells without incident
inside the 10,000-sq.-km territory which the Lubicon claim as their
traditional hunting and trapping area.

Seph said the decision to reopen the wells was not related to higher oil
prices or to work being done in the area by two logging companies.

About $20,000 damage was done last weekend when someone set fire to equipment
owned by a sub-contractor working for Buchanan Lumber.

Asked if Norcen feared its actions would increase tensions, Seph said the
"Lubicons have never taken any illegal action against the oil and gas
industry in the area."

Petro Canada is not entirely pleased with the decision, spokesman David
Hocking said.

"We are reluctant to see this go forward but it's their decision and we
understand how they have to be responsive to their shareholders."

He couldn't say whether Petro Canada had any legal or contractual basis to
stop the move.

"It is the well operator's job to run the well."

Lubicon Chief Bernard OMinayak could not be reached for comment.  Band
advisor Fred Lennarson said the Lubicon never made any statements saying the
closed wells were not affecting negotiations.

"No such discussion like that ever occurred."

Norcen agreed to shut the wells because it didn't want to recognize Lubicon
jurisdiction, and because the band agreed not to tamper with their equipment
if it was shut-in, he said.

Norcen is reopening the wells because of higher oil prices and because the
logging companies have already begun working in the area, he said.

"It's also related to their assessment that the Lubicons have very little
wherewithal to defend themselves."

He declined to say exactly how the Lubicon might react.  "If you crush a
people, you leave them few options."

Seph said Norcen has been trying to reach Ominayak since early November
without success, and sent a fax to the band office Friday morning to advise
him of its decision.

The company also released statistics Friday, indicating that prior to closing
the wells, production from them averaged 1,230 barrels of oil per day.  Lost
revenues are an estimated $10.8 million, including $2.1 million in provincial
royalties.

Norcen's share of the daily production is 450 barrels.  It has lost an
estimated $3.2 million in revenues, the company said.

As well as the band, Norcen has advised the federal and provincial
governments, and the RCMP of its decision, Seph said.

The company hasn't asked the RCMP for beefed-up patrols and no special
security is planned for the well sites, each of which is valued at from
$50,000 to $75,000.