Federal Court - Christian Aboriginal Infrastructure Developments ...

Page: 64
[250] It is a matter of fact that THA agreements in Yukon required approved business plans and
operational level FMPs. These FMPs included, among other things, silviculture plans, roughly
replanting and reforestation, and access plans. There is no requirement under the CTP regime to
produce a business plan or perform reforestation.
[251] Internal DIAND documents make it clear that the purpose of authorizing a THA is to
2010 FC 495 (CanLII)
encourage a proponent to build a mill. In fact, it was a condition of KFR being assigned the preexisting
THA that they construct a mill. The failure of KFR to do so was considered a major breach
of the agreement.
[252] The Department’s ongoing desire to have a sawmill built in the Yukon is also reflected in
the mandatory mill fund into which KFR had to pay. KFR was required to make payment based into
this fund on the basis of the volume of timber cut off of the KFR THA. The express purpose of the
mill fund was to “get a mill up and running”; see Exhibit P-79, Tab 77; Exhibit P-79, Tab 78;
Exhibit P-80, Tab 33; Exhibit P-80, Tab 35.
[253] The Department had a mandate to develop the forest industry. It had taken numerous steps
to fulfill that mandate but it lacked a sufficient private industry partner to give affect to its efforts. It
required a private industry developer to build a sawmill in Watson Lake. Its efforts to encourage
KFR to take the lead on this initiative had failed, notwithstanding the conditional assignment of the
THA.