Federal Court - Christian Aboriginal Infrastructure Developments ...

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

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Page: 90 [354] The failure of KFR to construct and operate a sawmill was considered a “major breach” of the terms of the THA assignment. An internal Department presentation noted that: • A sound wood processing industry would represent an important economic development for the Yukon. • A sawmill as require under the THA would ensure that initial wood processing from the THA occurs in the Yukon. • Additional mill capacity will benefit other CTP operators who legal requirements for local processing of their sawlogs • Could play a key role in capacity building of First Nations and smaller communities • Will improve overall employment opportunities, particularly in SE Yukon. 2010 FC 495 (CanLII) This presentation is Exhibit 80, Tab 26. [355] Mr. Sewell, RDG of the Yukon Region, supported the union of KFR with LPL in the joint venture. The proposal required the use, by KFR, of trust funds held by the Government of Canada. An extension of the KFR THA was also supported by Mr. Sewell. In an email, on September 15 th , entered as Exhibit P-79, Tab 78, to Mr. Beaubier at DIAND Headquarters in Ottawa, Mr. Sewell stated: … Is buying into the newly constructed mill an eligible use of the mill fund that KFR has been paying into ... The full THA expires May 99 I am told. There is a process in place to move towards consideration of a future multi-year THA …dates have slipped badly due to no partner for KFR …

Page: 91 It seems the goal of having the THA support an actual mill (though designed only to handle smaller size logs…10 inches I think ) may be close to really happening. (Emphasis added) [356] By September 17 th , the Department had decided that the joint venture was a valid use of the trust funds held in the “mill fund”. This expenditure was contingent on an evaluation of the joint venture sawmill and the entry into a joint venture agreement. 2010 FC 495 (CanLII) [357] Exhibit D-81, Tab 402 is the 1998/1999 Client Guide dated September 1998. This document sets out the purpose of the eligibility requirements, that is to provide fair and equitable access for all qualified applicants to the use of a “limited forest resource”. Some permits are for volumes greater than 1,000 m 3 and all applicants seeking a greater volume than 1,000 m 3 , up to 15,000 m 3 , were to be evaluated pursuant to Section 4.2 of the Yukon Timber Regulations. [358] The Client Guide explained that the harvest ceiling levels for 1998/1999 will be determined according to the preliminary TSA that was conducted in 1998. The total harvest ceiling for 1998/1999, for the entire Yukon, was set at 356,500 m 3 . The harvest ceiling for Y02, Coal and Y03, Liard, was 50,000 m 3 and 78,000 m 3 , respectively, for a total of 128,000 m 3 . [359] As I have already noted, the harvest ceiling for the previous year had been 350,000 m 3 of timber for the southeast FMU. The remainder of Yukon had previously been set at 100,000 m 3 .

Page: 91<br />

It seems the goal of having the THA support an actual mill (though<br />

designed only to handle smaller size logs…10 inches I think ) may<br />

be close to really happening.<br />

(Emphasis added)<br />

[356] By September 17 th , the Department had decided that the joint venture was a valid use of the<br />

trust funds held in the “mill fund”. This expenditure was contingent on an evaluation of the joint<br />

venture sawmill and the entry into a joint venture agreement.<br />

2010 FC 495 (CanLII)<br />

[357] Exhibit D-81, Tab 402 is the 1998/1999 Client Guide dated September 1998. This document<br />

sets out the purpose of the eligibility requirements, that is to provide fair and equitable access for all<br />

qualified applicants to the use of a “limited forest resource”. Some permits are for volumes greater<br />

than 1,000 m 3 and all applicants seeking a greater volume than 1,000 m 3 , up to 15,000 m 3 , were to<br />

be evaluated pursuant to Section 4.2 of the Yukon Timber Regulations.<br />

[358] The Client Guide explained that the harvest ceiling levels for 1998/1999 will be determined<br />

according to the preliminary TSA that was conducted in 1998. The total harvest ceiling for<br />

1998/1999, for the entire Yukon, was set at 356,500 m 3 . The harvest ceiling for Y02, Coal and Y03,<br />

Liard, was 50,000 m 3 and 78,000 m 3 , respectively, for a total of 128,000 m 3 .<br />

[359] As I have already noted, the harvest ceiling for the previous year had been 350,000 m 3 of<br />

timber for the southeast FMU. The remainder of Yukon had previously been set at 100,000 m 3 .

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