Introduction and Background:
This case involved a dispute over the allocation of revenues from A.C. Forestry Ltd., a company harvesting timber allocations. The central issue was whether royalties should be distributed per capita (Big River First Nation: 59.29%, Pelican Lake First Nation: 27.75%, and Witchekan Lake First Nation: 12.96%) or equally (33% each).

Legal Issues:
The court addressed three main issues:

1. Whether to admit fresh evidence, including a government letter outlining termination of timber allocations to A.C. Forestry Ltd.
2. Whether to extend or modify preservation orders for $1,956,416.54 held in court.
3. Whether A.C. Forestry Ltd. was in continuing contempt for failing to comply with court-ordered payments.

Court’s Findings:

• Fresh evidence, showing A.C. Forestry’s timber rights would end, was admitted as it affected potential enforcement of a judgment.
• Preservation orders were extended, prohibiting A.C. Forestry from disposing of more than 10% of its equipment.
• A.C. Forestry was found in contempt for failing to pay $1,039,997.84 despite sufficient funds.

Costs and Orders:
The court ordered Big River First Nation to pay $10,189.68 monthly as security for preservation orders. A.C. Forestry Ltd. was ordered to pay Big River’s solicitor-client costs of the application, to be taxed immediately.

The total funds preserved for the action amounted to $1,956,416.54, with no additional damages awarded pending trial. The court emphasized the need to expedite the trial process.