Federal Court - Christian Aboriginal Infrastructure Developments ...

Federal Court - Christian Aboriginal Infrastructure Developments ... Federal Court - Christian Aboriginal Infrastructure Developments ...

22.01.2015 Views

Page: 136 [542] On June 15, 2001, Mr. Loeks sent a letter to Mr. Ballantyne, this time dealing with the TSA. This letter is found in Exhibit P-80, Tab 82. Mr. Loeks said: DIAND will be in a position to release an RFP for two 30,000m 3 /yr 5-year THAs in Southeast Yukon by the end of June. This will help to relieve the department of a nagging commitment and a serious public controversy. However, it will not substantially solve the problem faced by industry, since the THAs are small relative to expected industry demand. 2010 FC 495 (CanLII) … Currently new inventory data are available, and there is betterinformed thinking about assumptions. Therefore DIAND, the Yukon Government, industry, and stakeholders agree that a new TSA is needed to provide the basis for better certainty to guide planning and management for all parties in SE Yukon. An important objective is also to provide a TSA that can be accepted by all parties. Several companies – and much of the town of Watson Lake – insist that it is imperative that the TSA be done quickly. They were promised THAs more than a year ago and they feel that the size of the THAs that will be offered is inadequate at best, and is evidence of bad faith at worst. In a recent meeting with DIAND and YTG, South Yukon Forest Corporation stated that they will be forced out of business if DIAND remains limited by the existing harvest ceiling. … Compared with forest districts elsewhere, Southeast Yukon is not a complex area for resource values. As a planning area, it is further simplified by its topographical constraints and by relatively low levels of resource competition. … If SYFC loses a fair THA bid, so be it. On the other hand, there will be vicious recriminations if they collapse because government takes another half-year to provide planning certainty. (Emphasis added)

Page: 137 [543] At this time the joint venture mill had been closed since August 4, 2000, for want of adequate supplies of timber. [544] Mr. Pat MacDonell, a respected forester, was hired by DIAND to work on the THA process. He sent an email on June 19, 2001 to Mr. Gay at DIAND. Mr. MacDonell noted that the harvest ceiling of 128,000 m 3 was made pursuant to the Henry Report, and he said that it was conservative, 2010 FC 495 (CanLII) in part, due to unsettled land claims. [545] Mr. MacDonell also recommended that it was time for a new TSA. He acknowledged that a number of TSAs had been completed since 1998. He stated that all TSAs are valid, including the Timberline Report #2 where access constraints were removed and a timber supply of 400,000 m 3 was found. He also noted that DIAND does not conduct economic viability studies; industry must determine if it can successfully proceed. This email is found in Exhibit P-79, Tab 340. [546] In September 2001, the Department released a second and significantly decreased draft RFP to grant a THA. This draft RFP was in accordance with the proposal by Mr. Loeks to release small THAs, that would not sustain SYFC, but would relieve the “nagging commitment”. Each THA was offered with a volume up to 150,000 m 3 over five years, that is 30,000 m 3 per year. This document is in Exhibit 79, Tab 349. [547] The “real” request for proposals for Watson Lake THAs was issued by DIAND on October 2, 2001. The “Timber Harvest Agreements: Request for Proposals Watson Lake, Final Version”,

Page: 136<br />

[542] On June 15, 2001, Mr. Loeks sent a letter to Mr. Ballantyne, this time dealing with the TSA.<br />

This letter is found in Exhibit P-80, Tab 82. Mr. Loeks said:<br />

DIAND will be in a position to release an RFP for two 30,000m 3 /yr<br />

5-year THAs in Southeast Yukon by the end of June. This will help<br />

to relieve the department of a nagging commitment and a serious<br />

public controversy. However, it will not substantially solve the<br />

problem faced by industry, since the THAs are small relative to<br />

expected industry demand.<br />

2010 FC 495 (CanLII)<br />

…<br />

Currently new inventory data are available, and there is betterinformed<br />

thinking about assumptions. Therefore DIAND, the Yukon<br />

Government, industry, and stakeholders agree that a new TSA is<br />

needed to provide the basis for better certainty to guide planning and<br />

management for all parties in SE Yukon. An important objective is<br />

also to provide a TSA that can be accepted by all parties.<br />

Several companies – and much of the town of Watson Lake – insist<br />

that it is imperative that the TSA be done quickly. They were<br />

promised THAs more than a year ago and they feel that the size of<br />

the THAs that will be offered is inadequate at best, and is evidence of<br />

bad faith at worst. In a recent meeting with DIAND and YTG, South<br />

Yukon Forest Corporation stated that they will be forced out of<br />

business if DIAND remains limited by the existing harvest ceiling.<br />

…<br />

Compared with forest districts elsewhere, Southeast Yukon is not a<br />

complex area for resource values. As a planning area, it is further<br />

simplified by its topographical constraints and by relatively low<br />

levels of resource competition.<br />

…<br />

If SYFC loses a fair THA bid, so be it. On the other hand, there will<br />

be vicious recriminations if they collapse because government takes<br />

another half-year to provide planning certainty.<br />

(Emphasis added)

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