Federal Court - Christian Aboriginal Infrastructure Developments ...

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

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Page: 94 [370] The mill, as built, was a dimension mill, capable of producing a wide range of products. The mill produced “rough green lumber”, that is the product that results from the primary breakdown facility. It remains to be dried and planed into a finished product. [371] The mill was planned to incorporate three independent phases of development, the first being the breakdown of the log into rough green lumber, followed by drying and dressing for the 2010 FC 495 (CanLII) finished product. Mr. Spencer explained that “rough green lumber” means that the timber is cut a little and then shipped for further processing. The first phase was an interim step intended to demonstrate the mill’s capability and thereby secure long-term tenure from DIAND. [372] The second phase required kilns and a planer mill, and that part of the facility was not realized. The planer would produce finished sides with a smooth surface, for the market. The kiln dries the green wood to a moisture content of less than 19 percent. Included in the second phase was a cogeneration facility to produce heat, for drying the lumber, and electricity to run the mill and to sell into the local electrical grid. [373] A third phase was also contemplated from the outset. It would involve the construction of a re-manufacturing facility so as to optimize the usage of the timber and provide additional “valueadded” to the mill’s products. [374] With the exception of management, the employees were drawn from the town of Watson Lake. The employees were both First Nations and non-First Nations people. Mr. Keith Spencer

Page: 95 remained on the site for several months to oversee the operation. Mr. Brian Kerr was engaged as the mill manager. Mr. Heit was in charge of sourcing wood supply. When the mill began operating on a single shift, Mr. Kerr testified that 27 - 28 people were employed at the mill site. The employee numbers would be doubled for two shifts. [375] In or about October 1998, an initial proposal was made by SYFC for federal funding to 2010 FC 495 (CanLII) assist in training the new employees of the mill. The application was made to the Transitional Jobs Fund (“TJF”) of the Federal Government through Human Resources Development Canada (“HRDC”). [376] Also in November 1998, the Department embarked upon its process to develop THAs. This process was planned to involve extensive First Nations and stakeholder consultations. This process started with discussion papers and consultations about how the process should be developed. The Department’s draft process proposal, entered as Exhibit D-81, Tab 227, noted that a FMP is the key document before any THA can be authorized. Further, it is noted that only 50 percent of a mill’s required timber is normally allocated in a THA. [377] The representation relied upon by the Plaintiffs was made in July 1997. By October 1998 the Plaintiffs had already built the mill and commenced operations in Watson Lake. The draft THA process proposal was not written until November 1998.

Page: 95<br />

remained on the site for several months to oversee the operation. Mr. Brian Kerr was engaged as the<br />

mill manager. Mr. Heit was in charge of sourcing wood supply. When the mill began operating on a<br />

single shift, Mr. Kerr testified that 27 - 28 people were employed at the mill site. The employee<br />

numbers would be doubled for two shifts.<br />

[375] In or about October 1998, an initial proposal was made by SYFC for federal funding to<br />

2010 FC 495 (CanLII)<br />

assist in training the new employees of the mill. The application was made to the Transitional Jobs<br />

Fund (“TJF”) of the <strong>Federal</strong> Government through Human Resources Development Canada<br />

(“HRDC”).<br />

[376] Also in November 1998, the Department embarked upon its process to develop THAs. This<br />

process was planned to involve extensive First Nations and stakeholder consultations. This process<br />

started with discussion papers and consultations about how the process should be developed. The<br />

Department’s draft process proposal, entered as Exhibit D-81, Tab 227, noted that a FMP is the key<br />

document before any THA can be authorized. Further, it is noted that only 50 percent of a mill’s<br />

required timber is normally allocated in a THA.<br />

[377] The representation relied upon by the Plaintiffs was made in July 1997. By October 1998<br />

the Plaintiffs had already built the mill and commenced operations in Watson Lake. The draft THA<br />

process proposal was not written until November 1998.

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