Federal Court - Christian Aboriginal Infrastructure Developments ...

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

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Page: 20 [77] Mr. Kerr attended a meeting, later coined the “due diligence” meeting, on July 15, 1997 in Whitehorse. Mr. Kerr attended as a representative of LPL, with his brother Mr. Alan Kerr, representatives from the B.I.D. Group and the Department. Mr. Kerr said that a representation was made by the Department to supply timber if a mill was built. He said it was a direct result of this representation that the project went ahead and the mill was built in Watson Lake by LPL and SYFC, operating as a joint venture. 2010 FC 495 (CanLII) [78] Mr. Kerr was actively involved with the mill when it opened in October 1998. The mill suspended operations in December 1998, due to lack of timber. It reopened again on April 30, 1999 and operated until August 4, 2000, when it closed permanently, again due to lack of timber, according to Mr. Kerr. [79] Mr. Kerr testified as to the events leading up to and surrounding the design, construction, operation and ultimate closure of the Plaintiffs’ sawmill in Watson Lake, Yukon. As well, there was evidence with respect to correspondence and meetings with DIAND and the other joint venture participants. [80] Mr. Paul Heit was then called to testify on behalf of the Plaintiffs. He is a forest resource technologist by training and he worked for many years in the forest industry. He began employment with Vanderhoof Specialty Wood Products in 1991 as the Woodlands Manager. In 1998, he became the General Manager at that business and around the same time, he took on responsibility as the Woodlands Manager for SYFC in connection with the mill at Watson Lake.

Page: 21 [81] In brief, as Woodlands Manager, Mr. Heit was responsible for getting wood into the mill. In that regard, he familiarized himself with the wood allocation system in Yukon and he did so before the mill was built. He contacted employees of the Department and asked about the process of applying for wood. He learned that there were two existing methods for allocating wood, that is the commercial timber permit (“CTP”) process and a THA. Subsequently, Mr. Heit talked to local 2010 FC 495 (CanLII) loggers about the allocation of timber under the CTP process. [82] Mr. Heit, as the Woodlands Manager for SYFC, was responsible for ensuring a supply of wood for the mill. He oversaw the execution of log purchase agreements during the periods that the mill was operating. Those log purchase agreements related to the purchase of wood cut under the CTP process and the availability of timber depended upon timely processing of permit applications by the Department. [83] Mr. Heit gave evidence about the necessity of a secure long-term timber supply, in terms of relieving administrative pressures on the Department and allowing SYFC to plan forward in dealing with the various matters associated with the issuance of CTPs. The ability to do forward planning, knowing that there was a secure supply of timber, would contribute to more flexibility in economic and market planning. [84] Mr. Heit testified that SYFC made it clear from the beginning that it would require 200,000 to 215,000 m 3 of timber per year, to permit it to operate for 250 days a year. SYFC did not

Page: 21<br />

[81] In brief, as Woodlands Manager, Mr. Heit was responsible for getting wood into the mill. In<br />

that regard, he familiarized himself with the wood allocation system in Yukon and he did so before<br />

the mill was built. He contacted employees of the Department and asked about the process of<br />

applying for wood. He learned that there were two existing methods for allocating wood, that is the<br />

commercial timber permit (“CTP”) process and a THA. Subsequently, Mr. Heit talked to local<br />

2010 FC 495 (CanLII)<br />

loggers about the allocation of timber under the CTP process.<br />

[82] Mr. Heit, as the Woodlands Manager for SYFC, was responsible for ensuring a supply of<br />

wood for the mill. He oversaw the execution of log purchase agreements during the periods that the<br />

mill was operating. Those log purchase agreements related to the purchase of wood cut under the<br />

CTP process and the availability of timber depended upon timely processing of permit applications<br />

by the Department.<br />

[83] Mr. Heit gave evidence about the necessity of a secure long-term timber supply, in terms of<br />

relieving administrative pressures on the Department and allowing SYFC to plan forward in dealing<br />

with the various matters associated with the issuance of CTPs. The ability to do forward planning,<br />

knowing that there was a secure supply of timber, would contribute to more flexibility in economic<br />

and market planning.<br />

[84] Mr. Heit testified that SYFC made it clear from the beginning that it would require 200,000<br />

to 215,000 m 3 of timber per year, to permit it to operate for 250 days a year. SYFC did not

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