Federal Court - Christian Aboriginal Infrastructure Developments ...

Page: 89
[349] Mr. Henry explained, in Exhibit D-49, that the TSA work was done because there were
concerns over the harvest levels for 1997/1998 and a need to determine long-term sustainability for
economic development efforts. He explained that the previous AAC level of 350,000 m 3 was
loosely based on the Draft Sterling Wood Report.
[350] Ms. Guscott also confirmed the fact that opening new areas to harvesting would change the
2010 FC 495 (CanLII)
TSA results; see Exhibit P-79, Tab 103.
[351] By March 1998, the mill complex was completed and ready for delivery to and assembly at
Watson Lake. With the installation of the mill complex, Phase 1 would be completed. At this time
the joint venturers decided that Phase 2 would be introduced when feasible.
[352] Throughout the summer of 1998, the Department could not adequately issue permits for the
supply of timber to the forestry industry. This inability was the result of the conduct of DIAND’s
employees. This is an irresistible conclusion drawn from the Department’s own internal documents
of May to June 1998; see for example Exhibit P-79, Tab 70, Tab 71, Tab 72, and Tab 73.
[353] In the late summer of 1998, the Department began to consider the possibility that KFR
would participate in the SYFC joint venture in operating the mill at Watson Lake. The Department
was concerned about the failure of KFR to satisfy the condition of its THA, that it construct and
operate a sawmill. Mr. Sewell would later describe DIAND as “pushing” KFR to SYFC; see
Exhibit P-79, Tab 144, at page 1386.