Federal Court - Christian Aboriginal Infrastructure Developments ...

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diesel and the actual price of electricity in Watson Lake. He concluded that his calculations were
very conservative given the significant increase in oil prices since he had completed his report.
[1246] Mr. Van Leeuwen’s projections were based on the cogeneration facility that would have
been built if a secure timber supply had been provided.
2010 FC 495 (CanLII)
[1247] He considered the actual electrical requirements for Watson Lake and projected the usage of
the mill. In his cross-examination he explained that this information was derived from the
Veco/Siemens Technical Report and from a meeting with the manager of Veco’s Burnaby office.
[1248] I also note that the cogeneration facility had been in the Plaintiffs’ business plans as
provided to the Defendant since the beginning of 1996.
[1249] It was also recommended to DIAND, in the Anthony-Seaman Report at Exhibit P-79, Tab
226, by the consultants the Department hired to review the Watson Lake mill, that:
The utilization of the whole tree and the next steps in value adding
are much more important goals than the addition of a few more
points of green lumber recovery. The co-generation plant using mill
residuals that is being proposed by South Yukon Forest Corporation
to provide mill and local electricity are projects that should be
encouraged and supported, as a part of whole tree utilization.
[1250] On the basis of the evidence, I find that it was reasonable to conclude that the Plaintiffs
would have been able to sell the excess electricity produced by the cogeneration facility, as
contemplated in Phase 2.