One of bankrupt New Skeena Forest Products’ major assets, Tree Farm Licence No 1, could be cancelled by the British Columbia provincial government because of an illegal land sale.
The 430,000m3 licence, due to be sold to the Lax Kw’alaams First Nations group for C$4.3m, is in jeopardy because of New Skeena’s sale of 564 acres of land from the licence for C$206,000 in late 2003 and early 2004.
The forests ministry and court were not told about the sale, which happened shortly after the company entered creditor protection.
Another First Nations group, the Kitsumkalum, claim the illegal sale has also undermined its plans for expanded trails and eco-tourism in the Red Sand Lake area. The group is demanding compensation from the government.
