Federal Court - Christian Aboriginal Infrastructure Developments ...

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

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Page: 56 [220] In early 1995, in response to the high demand for access to timber, the Department imposed a moratorium on the issuance of CTPs. In addition to the moratorium, the Department responded to the “Green Rush” with a series of regulatory changes. [221] This moratorium did not affect the ability of KFR to harvest under the existing THA. 2010 FC 495 (CanLII) [222] The Minister in 1996 was again indicating a willingness on behalf of the Department to receive business proposals for THAs. [223] The first regulatory response was implemented by SOR/95-387, which amended the Yukon Timber Regulations. This amendment imposed a two-tier stumpage system. Stumpage is the royalty fee that government receives for allowing timber to be harvested. The royalty levied was $5.00/m 3 of harvested timber, if that timber was processed within the Yukon Territory. For raw logs exported without processing in the Yukon Territory, the royalty was $10.00/m 3 of harvested timber. Further amendments followed shortly after. [224] At one point, in an effort to be “fair” given the number of applicants, the successful applicants for permits were determined by lottery. Department officials put all names into a “bingo drum” and randomly selected the names of the successful applicants.

Page: 57 [225] In protest over the moratorium, the loss of revenue from logging, the stumpage fees and the manner in which Department officials proposed to determine eligibility for CTPs, loggers occupied the Watson Lake office of DIAND, on November 14, 1996. In a continuation of this protest, loggers occupied the Regional Office in Whitehorse on November 16 th . [226] An open letter was sent from the YTG, Government House Leader, to Minister Irwin 2010 FC 495 (CanLII) alleging that the Department had mismanaged the Yukon forest. It was noted that loggers were facing financial ruin. This letter alleged that the mismanagement included failure to listen to the consultation on stumpage and tenure and a failure to meet the established timelines. The YTG asserted that DIAND was doing everything it could to take jobs away from Yukon. [227] In SOR/95-580, the Department continued its response to the increased number of permits. It introduced the regulatory change known as the 60/40 Rule. Additionally, the eligibility criteria were no longer simply based on age or corporate status. The Department implemented the following regulatory changes: 4. (1) The Minister may issue permits for the cutting and removal from territorial lands of timber in an estimated volume not exceeding 15 000 m 3 per permit. (2) To ensure that sustainable forestry practices are maintained, permits, other than permits issued under subsection 7(1), shall be issued in priority to applicants who have (a) demonstrated knowledge of environmental protection and conservation measures related to local timber harvesting conditions; (b) experience in the forest industry; (c) the demonstrated capacity to harvest the amount of timber applied for.

Page: 56<br />

[220] In early 1995, in response to the high demand for access to timber, the Department imposed<br />

a moratorium on the issuance of CTPs. In addition to the moratorium, the Department responded to<br />

the “Green Rush” with a series of regulatory changes.<br />

[221] This moratorium did not affect the ability of KFR to harvest under the existing THA.<br />

2010 FC 495 (CanLII)<br />

[222] The Minister in 1996 was again indicating a willingness on behalf of the Department to<br />

receive business proposals for THAs.<br />

[223] The first regulatory response was implemented by SOR/95-387, which amended the Yukon<br />

Timber Regulations. This amendment imposed a two-tier stumpage system. Stumpage is the royalty<br />

fee that government receives for allowing timber to be harvested. The royalty levied was $5.00/m 3<br />

of harvested timber, if that timber was processed within the Yukon Territory. For raw logs exported<br />

without processing in the Yukon Territory, the royalty was $10.00/m 3 of harvested timber. Further<br />

amendments followed shortly after.<br />

[224] At one point, in an effort to be “fair” given the number of applicants, the successful<br />

applicants for permits were determined by lottery. Department officials put all names into a “bingo<br />

drum” and randomly selected the names of the successful applicants.

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