A key regulatory process is in the middle of another Yukon Supreme Court challenge, along with a major underground exploration project by Selwyn-Chihong Mining.

The Liard First Nation filed a petition Tuesday asking the court to quash the Yukon government's approval of the project because the environmental assessment was incomplete.

Under the Yukon Environmental and Socio-economic Assessment Act, the act which governs the assessment board (YESAB), the board is required to complete its assessment before forwarding its recommendation to the Yukon government, the First Nation argues. It held a news conference about the issue this morning in Whitehorse.

Drew Mildon, the First Nation's lawyer, explained by video-conference the assessment was incomplete on several fronts but particularly in the area of water management.

YESAB and government officials have explained previously YESAB intentionally skipped the water management issues in favour of leaving the assessment to the more specialized Yukon Water Board.

That's not good enough, Mildon said this morning.

He said the act is clear, and complete means complete.

Leaving out the assessment of water management not only contravenes the act governing the assessment board, but its raises even greater concern now that the jurisdiction of YESAB vs. jurisdiction of the water board is under a challenge by Western Copper Corp., he said.

Mildon said the matter is scheduled to be in court Dec. 16.

This morning's news conference was hosted by Chief Liard McMillan and Kaska elders Rose Caesar and Alfred Chief.

YESAB spokesman Rob Yeomans said the assessment board does not have any comment.

"Our legal counsel is currently reviewing the matter,” he told the Star.

Selwyn-Chihong president Harlan Meade said today he is not prepared at this point to say whether the company will seek to become a party to the court case.

"Our only comment is that we have faith and confidence in the environmental permitting process in the Yukon, and I think the community at large should have faith and confidence, and as such, we have no confidence with regard to the LFN action.”

Meade said the company is not doing any work covered by assessment and the subsequent approval by the Yukon government, but the challenge could become an issue down the road.

The company has applied to the Yukon Water Board for a licence, though the application has still not been ruled complete and ready for review.

Chief McMillan said all Yukoners should be concerned about a project proceeding without a thorough environmental assessment.

And he again raised the example of the huge environmental liability the former Faro lead-zinc mine has become, just as he did last month in a press release issued on the day Selwyn Resources and Chihong Mining of China held a party in Whitehorse to celebrate their recent partnership.

All Canadians are paying for the extreme cost of the Faro cleanup because it was permitted back in the day when Ottawa was responsible for screening projects and issuing mining licences, McMillan pointed out. Mining began there in 1969 and ended in 1998.

He emphasized with the transfer of those responsibilities to the Yukon government on April 1, 2003 comes the responsibility for Yukoners to pick up the tab for any mining initiative that goes bad.

The chief pointed out the First Nation's lawyer works for Woodward and Company, which has a solid track record representing First Nations issues.

The same firm, he pointed out, fought the hugely controversial proposal to drain Fish Lake in B.C. to build a mine. It won by forcing a federal review of the matter, after the province had already approved the project, McMillan pointed out.

The elder Caesar said the Kaska hold their lands in the highest regard, and will go to great lengths to ensure they are protected.

"I would like to see every First Nation with communities along the Yukon River support us and to be here at the table with us,” added the elder Chief.

McMillan said the advance exploration project intends to discharge material into Don Creek, which runs in the Pelly River and then the Yukon.

Meanwhile, the Liard First Nation has created a defence fund, and is currently seeking assistance from a renowned Canadian charity which also threw its financial support behind the Fish Lake fight.

Mildon said the First Nation has several legal proceedings on the go, in addition to its challenge of YESAB's Selwyn review, including a recently filed case to establish its aboriginal rights and title.

The Liard First Nation is one of the three Yukon First Nations without a land claim settlement.

Western Copper is appealing last May's decision by the water board denying it a water licence.

YESAB recommended approval of the project in July 2008, and the Yukon government followed with a decision document supporting the project.

The company and the Yukon Chamber of Mines are asking the court to overturn the water board's rejection.

They argue that once the Yukon government issues approval, the water board is obligated to issue a licence, though it's free to build in whatever measures it sees fit.

The water board, supported by two First Nations, the Yukon Conservation Society and a legal opinion filed by the Yukon government, argues it is entirely independent when it comes to making decisions.

The matter is scheduled to be heard early next month.