Federal Court - Christian Aboriginal Infrastructure Developments ...

Page: 174
[680] I will first address the relationship between LPL and the Defendant.
[681] That relationship began in 1996 and deepened over time, but the interests of LPL and the
Defendant were parallel from the beginning. LPL wanted to build a mill and the Defendant wanted
to see economic development. This alignment of interests was necessary to implement the 60/40
Rule, given the failure of KFR to build a mill.
2010 FC 495 (CanLII)
[682] LPL was incorporated on January 26, 1996. Soon after, representatives of LPL were in
constant communication with the Regional Office in Whitehorse, for example, forwarding business
plans and asking for information about accessing timber supply. A meeting was held with
representatives of DIAND on April 18, 1996 and a scheduled meeting with Minister Irwin and
representatives of LPL was held at the Gold Show in Dawson City in June 1996.
[683] Following the Gold Show, on June 4 th , Mr. Ivanski wrote a letter, entered as Exhibit D-81,
Tab 13, to Mr. Bourgh on behalf of LPL, concerning the proposed mill facility for Watson Lake. In
his letter, Mr. Ivanski advised Mr. Bourgh on behalf of LPL, of the necessary steps to receive a
THA. He also stated that fulfilling all the relevant requirements did not guarantee the grant of
tenure. As well, Mr. Ivanski informed Mr. Bourgh that:
as you know, for some time now we have been trying to ensure that
timber be processed locally, and thereby create employment during
the value-added process. We have established a two-tier stumpage
system for timber – locally-processed woodis only one half the
stumpage of export wood, thereby providing a financial incentive for
local processing. As I understand you concept, two of the
fundamental tenets are a THA and a mill. Given the apparent match,