The Yukon government had a duty to fully consult the Little Salmon-Carmacks First Nation when it approved an agricultural lease on Crown land near Carmacks, Yukon Supreme Court Justice Ron Veale heard this morning.

Three days have been set aside for arguments in the first nation's application for a judicial review over the agricultural lease for 65 hectares of Crown land near McGregor Creek.

The lease was granted to Larry Paulson in 2004.

'The cases make it clear: this process needs (first nation) engagement,' Arthur Pape, the first nation's lawyer, told the courtroom this morning.

The first nation submitted a letter to the Land Application Review Committee (LARC ) bringing up concerns regarding the trapline on the land, impacts on Little Salmon settlement land nearby, as well as archeological and historical issues.

However, the lease was approved in principle with some conditions. Those included a buffer zone, and that the trapper have the opportunity to seek compensation due to the reduced trapping opportunities, Pape noted.

'This thing just goes ahead,' he said.

There's no dispute, Pape told the courtroom which had about 30 people sitting in the gallery, that a first nation representative did not attend the LARC committee meeting on the application or ask to defer the meeting until a representative could attend.

It had been thought by officials that the meeting may have been deferred until a Little Salmon-Carmacks member could show up.

With the meeting happening in August 2004, many people were busy with the summer season, he noted.

The Little Salmon-Carmacks First Nation was also not informed of the approval after it had been granted, Pape said.

When it was discovered the application had been approved, the first nation launched a formal appeal of the decision.

The appeal described the first nation's original concerns in greater detail, such as trapping being an important part of the first nation's culture, and also brought up the adverse effects it could have on treaty rights.

It makes the point the first nation is not opposed to all agricultural land leases, but will oppose those that raise concerns, Pape said.

There's also an issue brought up about the kind of impact it will have on fish and wildlife habitat in the area along the Yukon River.

The first nation also makes the point that the whole venture could fail based on information from a neighbouring framer that the land is not good for irrigation for haying.

'There's been no comprehensive assessment,' Pape said of the land.

More than three months after the appeal was filed, it was turned down by the territory. Essentially, the territorial government told the first nation it can bring up whatever issues it wants, but YTG isn't obligated to consider them.

'That's pretty astonishing and that's why we're here today,' Pape told the court.

Throughout his submissions this morning, Pape said the territory was clear throughout its dealings with the first nation that while it does allow for consultation, there is no legal obligation for it.

After going over the facts of the case, Pape was continuing his arguments on the territory's legal obligations to consult first nations this afternoon.

'There's a legal issue,' he said earlier this morning.

Arguments from both sides are set to be heard until Friday, though it's expected the case could wrap up as early as tomorrow afternoon.

An agreement has been reached that the land in the case will not be transferred until the case is heard in court.