It will be next summer before lawyers return to court to discuss the future of Dawson City's sewage system.

On Friday afternoon, now-retired territorial court Judge Heino Lilles turned down an application by Crown prosecutor John Cliffe to grant an extended deadline for Dawson to have a new sewage treatment site and to set a series of new timelines for parts of the project to be done.

If the timelines for things like design and application to various regulators weren't met, a penalty would be incurred, Cliffe suggested.

In the courtroom watching the proceedings were all but one member of Dawson's town council, as well as territorial government and environmental officials.

Lilles said the application for such an order would be premature at this point.

'There's too many variables, uncertainties,' Lilles said. He also doesn't want potential court hearings over such deadlines to slow down the process of getting the new treatment plant in place.

At the next hearing, it may be time to look at the application, the judge ruled.

While the current court-imposed deadline is set for Dec. 31, 2008, both Cliffe and Dawson's lawyer, Tony Crossman, agreed an extension will be needed.

The original court order by Lilles was set for 2004 after the town pleaded guilty to depositing, or allowing to be deposited, sewage into the Yukon River. A $5,000-fine was also imposed.

As the court heard from Crossman on Friday, since the last court update during the summer, it's been found that a single-cell aerated treatment facility has been determined as a significantly cheaper option at an estimated $7 million compared to the original plan for a $19-million more traditional mechanical treatment plant.

Annual operating costs for the aerated facility are estimated at $200,000 compared to around $640,000 for the mechanical facility.

'This makes it more sustainable,' Crossman said, adding the new option would achieve the same results.

Federal funding has also been secured for the project since Dawson's last court appearance to the tune of $6.6 million, which the territory has said it will match.

The new facility, as it stands, could also be placed on a lot housing a baseball diamond and soccer field. The property has gotten the discretionary zoning of council, with a provision to look at other sites if available.

The proposal will also have to go to the Yukon Environment and Socio-economic Assessment (YESA) board and then the Yukon Territory Water Board for approval.

The YESA process could take anywhere from 340 to 840 days, said Crossman.

'We're obviously hopeful it will take about a year,' he said of the YESA process.

It's expected the YESA application will be filed next April or May.

After it makes it through the water board process, it comes back to Dawson council for a development permit.

In the worst-case scenario, Crossman said, the treatment plant would be in operation by 2013. Optimistically, the date would be closer to 2011 though.

Proposals for a consultant for an updated design are also currently being evaluated, said Crossman.

Cliffe acknowledged there have been advancements in the project since the last report to the court. However, he also pointed to issues around the proposed treatment option, which he suggested hasn't been significantly proven in a northern climate.

Another concern is the proposal is being driven solely on the basis of cost, he said.

He noted he wasn't there to 'poo-poo this option,' but rather to bring forward the concerns of Environment Canada officials.

Pointing to other issues around the length of treatment for the sewage and the land for the site, Cliffe made his suggestion on the deadline extensions and the provision for timelines to be established with fines in place when they're not met, provided there was no due diligence followed.

'It keeps everybody on track,' he said.

Addressing the court, Dawson Mayor John Steins stressed the new council has made the treatment facility a priority.

While there's a provision in the site location that the town also consider other locations if they come up, Steins noted Dawson has a responsibility to respond and to consider issues residents bring forward over the site.

A number of Dawson residents have stated their opposition to the proposal.

'Council does have a responsibility to respond to people's concerns,' Steins said.

The last three years seem to have been 'borne more fruit' for the project than the last 20 years, he suggested.

The bottom line, he said, is: 'We're completely committed. We want to proceed as effectively as possible.'

Lilles commended the five-month-old council, noting it's clear from council's presence that members are committed to the project.

'The fact you're all here sends a strong message to me,' he said.

Before Lilles ruled against setting hard deadlines for parts of the project and extending the deadline, Crossman noted the town's diligence on the treatment process.

A date was not set for Dawson's next court appearance. Rather, Lilles said, he would leave it up to the two lawyers to find a date next June or July.